US hegemonic power is increasingly debated in terms of whether it is still strong or whether it is in a state of decline with the rise of developing countries, the underlying weakness of the dollar and the crumbling legitimacy the US faces as a country on the global stage. However, what recent events such as the international paralysis and inaction towards Israel’s ongoing siege and despairing occupation of Gaza and the West Bank shows is that the US’s power is still strong.
I studied US hegemony in one of my Politics MA modules at The University of Sheffield finding myself arguing that whilst the US can be still considered a global hegemonic power, it is minimal hegemony based on non-ethical deception relating to the increasing legitimacy crisis of neoliberal policies, especially since the ongoing financial crisis and the rise of developing countries – and related global imbalances – such as China.
In other words, US’s power is based on lies and misconceptions promoted through channels such as the bias media that furthers the neoliberal agenda through institutions such as the IMF or now through the Transatlantic Trade and Investment Partnership where US power is still very strong. The ideology of the ‘need’ and ‘naturalness’ of the free market – despite this in reality not really happening, with vast amounts of corporate aid sustaining such ‘free’ markets – is rampant throughout these global institutions as the US as a state still has a lot of international control through such institutions with voting power and veto rights.
Whilst there are challenges to the US dollar in the long-term, there’s not too much cause for concern for now. For instance, China has a weak financial sector and also dollar depreciation would threaten China economically too given their vast amount of US bond holding and China’s use of sovereign wealth funds to increase their power but also vulnerability in the US. There is also the recent development of fracking in the US that will help reduce their dependence on using foreign policy to ensure their economic power, given that petrodollars finance an estimate of 45% of the US’s current account deficit.
Since the Nixon Shock in 1973 the financial markets have grown increasingly powerful, the US has become more and more reliant on finance as a symbol of ‘power’ and ‘success’, as has the UK, and the world has become an increasingly unfair place with US sponsored structural adjustment programmes making sure of this. With such hegemony becomes no responsibility. There is no responsibility from those at the ‘top’ that through ‘innovative’ measures such as Collateralized Debt Obligations and Credit Default Swaps created a financial crisis that has been sadly but cleverly blamed on minority groups and ordinary people that had nothing to do with it. The divide and rule tactics have worked on many, and we now are in a system with unsustainable, unequal power divisions with a mass media that deceives and manipulates, and powerful countries that don’t use their power responsibly.
Rather, we see as through the TTIP such countries – despite such hegemony and power – surrendering their soft and hard power to corporates and profit making entities because they ‘need’ to as otherwise we are told that there will be a ‘brain drain’, the economy will stop working. We have to give up accountability, fairness and common sense because this is a ‘natural’ part of ‘globalisation’. Globalisation in this sense being a nice ideological tool to take attention away from the fact that it is a term used to refer to a magnitude of factors that aren’t inevitable, but rather ideological and policy led choices. That is conveniently ignored though when frightening measures such as TTIP are discussed.
Minimal hegemony sees a selfish country having the most international, especially ideological and institutional, power and influence with limited oppositional forces to it. The more the lies are exposed, the more people will hopefully start to realise that what is happening is unfair, unequal and not inevitable and this leads to cracks in this hegemony with the potential of a counter hegemonic bloc there. What this counter hegemonic bloc is, is up to us.