The Teflon Global Economy: Globalization Is Going Just Fine, but It Coulduse a Healthy Dose of American Leadership

By Zakaria, Fareed | Newsweek, February 11, 2002 | Go to article overview

The Teflon Global Economy: Globalization Is Going Just Fine, but It Coulduse a Healthy Dose of American Leadership


Zakaria, Fareed, Newsweek


Byline: Fareed Zakaria

This year I hopped onto the subway to get to the World Economic Forum. It's not quite the same as flying to Switzerland, but Davos-at-the-Waldorf has its charms--worse scenery but better food. In one important respect, however, Davos is always the same. The main interest of the conference-goers is globalization. This year the chatter in the hallways suggests that there is a quiet fear that the tide is receding, and that historians will look back on the 1990s as the high-water mark of global capitalism. "September 11 marked the death knell of the simple idea of more and more globalization," one participant remarked.

It's not just September 11 that has Davos men worried. Consider the 18 months that led up to it. The technology industry, which had become the symbol of the future, collapsed in a heap. The roaring U.S. economy suddenly and unpredictably slipped into recession. Developing countries around the world that had embraced free markets--like Brazil, Turkey and Argentina--had wrenching crises. New leaders, like Hugo Chavez of Venezuela, began turning their backs on free-market reforms. And then came Enron, taking the last bit of shine off the 1990s miracle economy.

But there's another way to look at this. If you examine the past several years more closely, what is striking is the sturdiness of the global economy. Globalization has weathered a series of severe shocks, from the East Asian crisis to the Russian default, to the crash of Long-Term Capital Management, to the technology bust, to a synchronized global recession, to September 11. And yet it keeps on ticking. Growth is likely to pick up in America and Europe by the end of this year, and there has been little financial panic or contagion.

Stanley Fischer, until recently the No. 2 person at the International Monetary Fund, points out, "Over the last few years almost every country that has had an economic crisis was advised by powerful domestic forces to stop free-market reforms. And yet after an initial period of doubt, almost all of them--Brazil, Russia, Turkey--came back to the same policy path. Often they have come back with greater resolve."

Sure, there's the odd country here and there that is turning its back on reform, but Hugo Chavez is hardly the wave of the future. "For Venezuela, which wants to opt out, there's China that wants to opt in," says Robert Hormats of Goldman Sachs. Add to this Russia, Brazil and India, and you have the four largest once-closed economies of the world all seeking to integrate into the free-market system. That's the real signpost for the future.

This is not to say that globalization will continue just as before. The exclusive emphasis on economics is yielding to an appreciation of politics. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Teflon Global Economy: Globalization Is Going Just Fine, but It Coulduse a Healthy Dose of American Leadership
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.