Twofish's Blog

September 20, 2008

Global impact

Filed under: Uncategorized — twofish @ 2:43 pm

http://blogs.cfr.org/setser/2008/09/18/morgan-stanley-cic/

The world has changed forever…..

1) The belief that governments should not intervene in the markets and can and should remain completely apolitical and detached is dead.

2) The belief that the Chinese banks and financial industry are worse run than American ones and that the US should serve as a financial model for the rest of the world is dead.

3) The belief that concerns about Chinese human rights and the one-party state should cause Western nations to limit the ability of China to play an integral role in the world economy is dead. Now that the world no longer looks to the United States as an economic model, whether the world should look at the United States as a political, social, or legal model is going to be challenged in ways that were impossible last week.

(added this after I thought about it)

4) The curious thing is that while this episode reveals how unimportant the United States is as far as ideological leader, it reveals how important it is as far as the source of economic power.  The events of the last week show the United States actively intervening in the world economy in the way that no other country can.

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1 Comment »

  1. Ad 3.

    It is the Chinese who should be most concerned about their political system, because they feel most of the pain (OK, them and the Tibetans and the Uighurs).

    Take the milk scandal: http://www.iht.com/articles/2008/09/27/asia/26scandal-nyt.php

    “Beijing’s political priority of holding a “harmonious” Olympics also contributed to the scandal. Parents who tried to act as whistleblowers were thwarted by an unresponsive bureaucracy, while Chinese journalists were blocked by censorship edicts banning coverage of politically touchy subjects during the prelude to the Olympics.”

    It just wouldn’t happen in a democracy and the milk scandal would have broken out much earlier.

    Comment by bloody_rabbit — September 27, 2008 @ 12:37 pm


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