The economic crisis experienced over the recent past has had a resoundingly negative effect across the globe. Altman (2009a, p. 527) describes it as “the worst in over 75 years. ” Different people and different occurrences contributed variedly toward this crisis. However, most researchers tend to point fingers towards the US and blame it solely for orchestrating the crisis through its dubious economic policies and financial excesses (Dibb, 2009, p. 3 and Altman, 2009a, p. 527). Wright (2009, p. 59) furthers this ideology by saying that the recession originated in New York and, and like a wildfire, spread to Asia and other parts of the world. According to Altman (2009b, p. 5), as a result, “The overall picture is a grim one: a deep, truly global and destabilizing downturn, with world GDP falling for the first time in post-war period.
Given rising populations, such an outright contraction is stunning. ” China on the other hand chooses to distant itself away from the blame game. Wright (2009, p. 64) supports this reaction by saying that “China is not blaming US for the crisis. ” According to them, the crisis was a culmination of a series of events performed by different countries in relations to their trading methods, economic policies, domestic marketing tendencies as well as overall governance. This has been a tactful stand for china more so with the looming speculations of them wanting to take full advantage of the crisis to impose influence of their minimally scathed domestic economy.
It also provides a platform for good interrelations with the US, if need be, since there is no bad-blood between them as opposed to the critiquing nations. For china, their strong domestic market acts as a cushion in this tough time that many nations are languishing in economic distress. Despite facing low revenues from their exports and generally having to deal with the challenge of fluctuating prices of commodities, it has been able to get solace from their stable Foreign exchange trading (Altman, 2009a, p. 31). In sharp contrast, the US-the strongest nation in the world is finding it difficult to cope with the crisis. Apart from allegedly overspending beyond their means, the financial injuries in their banks and credit-markets combined with the unprecedented liquidity levels have forced US down on their knees (Altman, 2009b, 529). To make matters worse, there have been recent concerns of the US loosing its focus from ensuring coherence, coordination and leadership. Altman (2009b, p. ) equates this tendency to the inward preoccupation of the US with severe unemployment, housing challenges and fiscal pressures. He exemplifies this by saying, “US household lost 20 percent of their net worth in just 18 months, dropping from a peak of $64. 4 trillion in mid 2007 to $51. 5 billion at the end of 2008 (p. 3). On the other hand, it looks like china could increase its diplomatic presence in the development world by sharing its vast acumen of resources and ideologies (Altman, 2009b p. 3). According to Altman (2009a p. 28), “This relatively unscathed position gives china the opportunity to solidify its strategic advantages as the united States and Europe struggle to recover” by investing in places where US and Europe can’t. In essence, this rise by china combined with other Scandinavian countries threatens to overthrow USA from the global driving seat. Altman (2009a, 527) aptly describes it as “shifting the world’s centre of gravity away from the united states. ”An Analyst like Dibb (2009, p. 2) is already voicing out his opinions to this by saying the global wealth is speeding from the east to west.
In fact, he goes further and says “We think that the global financial crisis will hasten the relative decline of America and Improve China’s status (2009, p. 5). ” Such opinions are, however, greatly discouraged as they may just aggravate the highly polarised relationship between China and USA. Rediker (2009, p. 555-556) challenges America to copy from other well doing countries if they are to survive. He further voices out the deficit in ideology and capital which has facilitated null movement of the US economy, and asks them to swallow their pride by borrowing a leaf from the attested pages of China’s ideologies.
This is especially important with the rising concerns of China’s ascendancy in geopolitical standings based on the increased car sales, freight shipment and electricity consumption; thus offering it great financial leverage (Altman, 2009b, p. 7). Nevertheless, other analysts believe that this crisis may lead to a better relationship between China and US. This they believe can be done by Obama administration giving China a more central role in the IMF as well as bringing them to the G8 (Altman, 2009a, p. 528). To them, China ideologies in terms of geopolitical measures are similar to those of the US i. . both do not want Iran to acquire nuclear weapons. Again, both China and US are capitalist in nature and therefore finding a middle ground for a starting a mutual relationship will not be very problematic. Based on such factors, Altman (2009b, p. 7) concludes that “It is increasingly clear that the US-Chinese relationship will emerge as the most important bilateral one in the world. ” As a point of caution, Dibb (2009, p. 3) warns that USA and China should treat one another with respect-if such a deal is struck- or else, dire consequences could erupt in the event of a mass unrest from either ends.
Of course there are underlying issues like USA routing for free markets and China supporting a controlled market; which may presumably conflict. However, proponents of better relations between China and US believe that the overall good of the world will supersede such minor differences (Dibb, 2009, p. 4). It is desperate times for US and maybe, that is the reason why they are going for desperate measures. Being into the unchartered waters of financial down-surge, the US has taken stern measures to resuscitate its economy.
This is based on the trial and failure of an example is them stopping to spend on discretionary items and are only focusing on only the basics. Through this, they are able to save more and pay down their debts. China has commended this move and said it opens doors for fostering better relationships with other countries (Altman, 2009a, p. 531). In conclusion, hope is not lost even in these difficult times of financial distress. Coincidentally, this crisis coincides with the tenure of Barrack Obama as president and his message of hope even in times of hopelessness.
As for now, Atman (2009a, p. 39) say that “The united states will have to operate from a smaller global platform-while others, especially china, will have a chance to rise faster. ” Critics should nevertheless watch for USA’s comeback; their slip does not mean they have fallen (Wright, 2009, p. 556). In fact, this should be a chance for both China and USA to demonstrate good leadership by working together. By doing this, the economic crisis-which not only affects the US and China but also other parts of the world will eventually be a thing of the past (Wright, 2009, p. 566).