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When America becomes number two

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In Brief

In 2019, barely five years away, the world will pass one of its most significant historical milestones. For the first time in 200 years, a non-western power, China, will become the number-one economy in purchasing power parity (PPP) terms. America will become number two. Yes, it will take longer for China’s economy to overtake America’s in nominal terms but the trend line is irresistible. And in PPP terms, China’s economy could be twice that of America’s by 2030.

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The big question for our time therefore is this: is America ready to become number two? Sadly, it is not, even though Bill Clinton wisely tried to wake up his fellow Americans as far back as 2003. In a very subtle speech at Yale, he asked whether ‘we should be trying to create a world with rules and partnerships and habits of behaviour that we would like to live in when we’re no longer the military political economic superpower in the world’.

Unfortunately, Bill Clinton was too subtle. He was trying to hint to his fellow Americans that America should create a model of rules-based behaviour that would then serve as a model for China when it emerged as the number-one power in the world. His hint was ignored. Hence, few Americans today are aware that America’s national interests change dramatically when it becomes number two in the world. When it is number one, it is in America’s interests to see that the number-one power has complete freedom to do whatever it wants to do. When it is number two, it is not in America’s interests to see that the number-one power has complete freedom to do whatever it wants to do. Catch the difference?

Why have American leaders failed to prepare the American population for this significant change of interests? There are at least three reasons. Firstly, it is political suicide for any American politician in office to speak on America as number two. No serving American politician can use the words, ‘If America is number two’ or ‘When America becomes number two’. In the land of free speech, there is no effective freedom for serving politicians to speak undeniable truths.

Secondly, most American intellectuals continue to indulge in wishful thinking. In their minds, there is a deep ideological conviction that democracy represents the future and Communism represents the past. Since China is still run by the Chinese Communist Party, it can only represent the past, not the future. Many American intellectuals also believe that since they live in the world’s freest society, they cannot possibly be prisoners of any ideology. This is massive self-deception. When it comes to understanding China, Americans have allowed ideology to trump mountains of empirical data. This is why they cannot even conceive of China becoming number one.

Thirdly, and very sadly, China’s emergence is taking place at a moment of great political paralysis and disunity in the American body politic. If Nixon and Kissinger were managing American foreign policy today, they would have focused on the most critical challenge that America faces and found ingenious ways and means of implementing the wise advice that Bill Clinton offered in 2003 and prepared for a new geopolitical environment. The days of wise foreign policy management are long gone in Washington DC. Furthermore, with Washington DC being completely divided and polarised, the challenge of dealing with becoming number two is the last thing on the minds of American policymakers.

Sadly, the last thing on the minds of American policymakers will come true in five years. Will America wake up to this new reality before or after it happens?

Kishore Mahbubani is Dean of the Lee Kuan Yew School of Public Policy at the National University of Singapore. He is the author of The Great Convergence: Asia, the West and the Logic of One World. This article was first published here on The World Post.

4 responses to “When America becomes number two”

  1. This is an unconventional piece. The author points out the historic shift our time has been witnessing: decline of old world order (and its affiliated dictates) with a new ones. Sometimes ago such discussion was considered naïve even in very open academic environment. Whether American people recognize this reality that there their country will become No. 2 or not, it is there. Keep the ball rolling.

  2. China’s GNP became larger than Japan’s several years ago. Given that GNP size is apparently his only criterion for assessing a country’s ranking in the world, it is a pity this author didn’t tell us what a devastating impact on Japan that landmark event must have had. For some observers, it has been hard to tell. Probably considerably less than the impact of the 2011 tsunami.

    If the dreaded event of China’s GNP becoming larger than America’s indeed comes to pass, it is likely that American leaders, if they address the issue at all, will turn to other criteria to insist that America is still number one. Perhaps military power, worldwide alliances, GNP per capita, a less ageing population, non-toxic air, potable water or something else.

  3. Forgive me for this simplistic comment, but don’t we measure economic growth or influence by GNP? I haven’t been in an economics class in 10 years but even in 2004 it seemed dated to use GDP.

  4. At this stage and time, money speaks more than other elements of power, and talking about influence: the US might have a stronger political influence on many of the world countries, but China is taking over key industries across continents. China is clearly dominating

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