This post has been inspired by the discussion that I had with Vinayak Agrawal.
World War-II brought down the supremacy of British Empire. Is the current recession an event to mark rise of new world order where United States will not be in a driver’s seat? Or US will not be as powerful as it was in the last 60 years. US was the undisputed leader and super power after the second world war. By dropping the first Atom Bomb on Japan, US showed that she was the military leader. By helping Japan and Western world to come out of destruction after second world war, US showed the morale leadership. US has biggest share in world GDP and is considered to be the richest nation in the world. In last 10 years, US supremacy has been questioned on both these fronts. US has been struggling in Iraq and Afghanistan, the countries, where she started war and there is no morale leadership in today’s world.
Let us go back in the history and see countries who lead the world in GDP. You will see that China and India had the largest share of GDP in the world. This is quite logical if we assume that everyone is endowed with same intellectual capability and everyone has same opportunity. This equilibrium was disturbed with the oncoming of Industrial age in 1600 AD. Western Europe grew much faster than the rest of the world because of their lead in science and industrialization. This was the time when Great Britain made colonies world over because of superior economic and military skills. Pequot war and Kieft’s war also tell the same story when Westerners won over native Americans due to their superior knowledge and military skills. Superior military and knowledge skills brought more wealth to Europe and USA and Europe and USA became richest country in the world. This resulted into unequal wealth distribution in the world.
Britain held the super-power position before second world war. Britain was destroyed in the second world war and USA became the dominant superpower after second world war. USA also became the leader in knowledge capital. This is very well shown by the country’s share of Noble Prize.
This clearly shows that who has been leading the world in knowledge segment. We can go a little further and can see the number of scientists and engineers from these countries. USA will lead over all the other countries in this metrice also. But, slowly world has been going through a change. This change is happening because of following factors:
Democracy: Democracy is sweeping world. Democracy provides opportunity to common man. As government is responsible to people in a democracy so Government has to do things that are good for the people of country. So, slowly, every government is developing knowledge institutions and providing framework where people can make best use of opportunity. As Government has resources to develop these institutions so this change is much faster than any other time in history of man kind.
Communication Infrastructure: Scientific knowledge that provided edge to developing world also provided infrastructure where knowledge can be shared easily and at very low transactions costs. Outsourcing, offshoring are results of communication infrastructure that made them possible.
Capitalism: People want to make best use of resources to earn maximum profits. This has also helped in knowledge dissemination.
As knowledge is disseminating across the world. US and western Europe is losing competitive advantage that was gained because of scientific thinking and knowledge. US and western European countries has to innovate at much faster rate than the dissemination of knowledge to keep up this competitive advantage. As this is not possible in today’s scenrio so world order will change. From a unipolar world, we will move towards multipolar world. I hope that it will be better for human civilization as more number of people will be able to enjoy the fruits of modern civilization.
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I have to say this is complete rubbish. “Morale Leadership”? “Greatest knowledge”?
You’re a buffoon.
Money is power, by stepping on other countries and squishing them, by exporting the American culture of sex and McDonalds with the military power the u.s. possesses – this is how the U.s.a. has remained dominant. No other way.
america will fall yes. the east will rise, because lets face it, westerners in comparison to easterners are a bunch of lazy sheep who would rather jack off to a guitar then do any work.
cya!