Banking On The World: The Politics Of American International Finance
Bankers have influenced American foreign policy but have also been checked by counterforces. Jeffry Frieden tells the story of the periods after the two world wars in a popular (and sometimes populist) manner. The contemporary version of the issue he finds in the familiar problems of interdependence; here his analysis is disappointingly weak and his narrative wanders into the well-trodden fields of debt, Eurocurrencies and trade.
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An economic bnoom is underway in China, and the United States is in danger of isolating itself from the benefits. A forward-looking policy would not only offer tremendous opportunity for American investment,trade and jobs, but it could also be a force for political moderation in Beijing.
American political and business leaders need to capitalize on a groundswell of democratic and market-opriented reforms underway in this oft-neglected region in the world. "Washington must discard its Cold War approach to relations with south Asia and stop viewing the region primarily in terms of its potential threat to U.S. interests"; a rapidly growing south Asian middle-class is creating one of the "world's most important emerging markets" and bolstering regional stability.
U.S. trade policy is adrift and under siege. America's traditional commitment to open markets is now buffeted by both left and right, from labor unions and environmentalists to big business and "America First" isolationists. Fortunately, the advent of the World Trade Organization offers Washington a chance to balance the protectionist threat. If the United States cooperates with the WTO to settle trade disputes multilaterally, it can dilute both protectionist pressure at home and anti-American resentment abroad. But robust leadership and commitment will be needed, and neither Congress nor President Clinton seems up to the task.
