The financial crisis has definitely weakened the United States globally and strengthened others in the process. US is weaker now, not because of a smaller economy or a weaker military force, but because its global position has been challenged. Its dominance on world affairs has reduced drastically giving way for China to take preeminence in most global matters.
The United States was overly concerned with the financial crisis and its political effect on the country. The country is still in a political gridlock at the moment meaning that it does not have the ability to be more involved in world affairs as was the case before the financial crisis.
In addition, the world’s perception about the country and its Western allies has also taken a huge dent following the crisis. People used to believe that America’s economic, political model was unshakable, and that it was the best method to follow (Lacey-Barnacle, 2011). Most countries in the developing world copy the American model. It has always been assumed that Western capitalism was the sure way for a country to become successful.
However, the financial crisis has made America and its allies look extremely vulnerable especially when it comes to their economic policies. Countries in developing nations are beginning to view China’s economic model, where the government is in charge of the market, is a better model.
The country that has gained the most from the financial crisis is China. Her economic policies have ensured that the country was able to withstand the crisis even when other countries were falling apart (Lacey-Barnacle, 2011). Her productivity remained slightly constant throughout the crisis and her trade volume increased. Due to her economic strength and growth over the past few years has granted the country a lot of influence in most of the world’s major affairs.
Lacey-Barnacle, M. (2011, Aug 23). Has the global financial crisis challenged US power in international finance? Retrieved from http://www.e-ir.info/2011/08/23/has-the-global-financial-crisis-challenged-us-power-in-international-finance/