Question

6. Discuss the similarities and differences between the periods of British and U.S. hegemonic decline.

Answer 1

With the rise of Great Britain as an economic world power , international economic liberalization grew around the world according to the theory of hegemonic stability.After 1870 when Britain started declining,countries around the world favored ttrade and adopted their protectionist policies.   The similarity of the US hegemonic decline with Britain is that there was no liberalization and national protectionism was adopted according to the theory of hegeminic stability.David Lake opines that even though US and Britain decline is the same,there may be differences between decline of US which had stopped the world trade from contracting,even though there was contraction of world trade after Britain fell from power.Competition in US increased with British fall from power and that competition was responsible for making cooperation between the economic powers not possible.The international economic capacity of the western powers were levelled with the decline of US hegemony. At present the international economic system do not have problem in cooperation as happened in the early 20th century.Again because the US relies on international system,there will be openness to trade.This international regime suggests that lnternational relations will contine even after the fall of the hegemon.British liberalization was in favor of retracting from free trade at the will of other countries , US liberalization was in favor of countries joining free trade , through the GATT. Finally US relied on foreign direct investment and less on portfolio investment. The liberalized economic system of US will be there even when hegemony declines ,unless the US move away from international economy.