Fairly Contemporary Issue about Global Political Economy Essay

Fairly Contemporary Issue about Global Political Economy - Essay Example The dominance is a political one in the sense that the dominant state does have the power to exert influence to other system of states. During the post war, economists have studied hegemony and its' importance in global political economy. Kindleberger raises the thought that the world economy has to have a stabilizer for it to be stable and the stabilizer had to be one state. Keohane, on the other hand, presented the idea that most hegemony is established for self-interest. This he explains that in most cases once the hegemony fades the regimes established does linger in the economy for a long time (Keohane 103). Therefore, we argue: in view of the hegemonic theories by Keohane and Fukuyama how does the rise in power by other states cause the fading of hegemony? And also how does globalization affect the American hegemony? Fareed looks at the Post American world, which he states is not about power shift in the political aspect of the global economy, but rather it represents the rise of the rest of the states in terms of economic growth. Fareed explains that the political stability, economic connection and technological connection have enabled the American dominance in the market to lessen and allow other states to rise above the American dominance. Fareed looks at the world in 1979 where the countries that were considered to have a robust economy were 33 countries (Fareed 30). The rest of the countries were locked out of the economic system. However, Fareed states that the post-war era has seen the collapse of communism systems and the soviet empire and a global market system been born in this new era. Let us consider the case of Russian and its rejection of the American influence. Russian strongly believed that central Asia and its backyard. The political interests of both Russia and the United States of America translate to some form of competition between the two nations to gain control over these regions. However, it is clear that the Russian state and the United States had one common interest to block the emergence of new nuclear power. The rise of Russia against the influence of the Americans was due to the fear that they would lose their control over central Asia if the United States influence continued to grow. The U.S had the upper hand considering their stable economy and their policies that looked good. The situation between the US and Russians over the Middle East does prove that hegemonic influences are usually based on self, and it is true that a better state in terms of the economy does gain the upper hand in the influence. The Russians did manage to get influence once their economy rose to match the Americans economy and this happened once the Soviet Union was dissolved. Fareed examines the fade in American dominance, in fields that are key economic indicators of growth. Fareed gives an example the field of patterns produced where china stands to outdo America. Fareed also gives an example of the expansion of Chinas power in Asia as well as Africa, which in the earlier years was US hegemony. Fareed explains that, in any political system, there can never be two dominant countries. Fareed asserts that the rise of the rest of the world is an economic phenomenon. The shift of dominance from industrial, financial, educational social cultural dimensions is evident. The American dominance is evident at the politico-military level. The rise of the rest of the world does define new roles in the global system not only politically but also