Time for US to follow the world?

For most part of the 20th century America has dominated the world scene be it Business, economy or its military might. It is still by far the largest economy in the world and also has the distinction of being the oldest democracy. However over the last several years it has faced with some challenging issues. What does the future hold for this nation?

Having lived in US for several years as an international I have seen some great and not so great aspects of the American society. On a per capita basis US is perhaps one the most wealthiest countries in the world. However GDP per capita hides more than it shows. The obvious one is the divide among the rich and the poor. US ranks lower amongst most developed nations. Of course there are other measurements such as 'gini coefficient' and 'HDI' that do reveal some insights into this. I do however question the validity of such measurement as indication of well-being or happiness. Some of the happiest and most content people I have met were farmers in rural India who by UN standards live under the poverty line of $1/day. Anyway my point is not to debate these measurements but to inquire of the philosophy the increase production/ consumption as the answer to all questions on well-being.

Communism and Socialism were invalidated as answers to societal and political problems in late 20th century. There is simple lack of long term incentive to individuals to perform well. However we have found of late the glaring gaps of blatant capitalism, free market and government non-intervention. I wouldn't say that this is a recent problem in US. Health care and discrepancy in benefits available to rich and poor have been issues for debate over the years. By intervening in the markets US has severely impacted its credibility to preach on many occasions coax countries on free market philosophy.

Coming back to the original question of leadership. It is quite obvious that India and China would grow at an exponential rate from here. Many other developing countries would also catch up. We would most likely see them stand up on the global stage and weigh in on issues. Sometimes leadership is all about bringing the best out in others and letting them blossom. In my opinion US may be best served by following this approach and working towards integration with the world on thoughts, policies and collaborative actions. "lets make world a better place rather than let me show you how to do things our way!"

Though Europeans have had their issues, they have shown leadership in some areas. Signing Kyoto protocol and agreeing to reduce carbon emissions do stand out. Another important aspect is the current political structures in the European countries. In most countries you either have Labor or Social-democrats who lean 'left' in political terms. Might it be time for US to take a cue and think in terms of Public infrastructure, health care etc rather than how to pump more oil and give more tax credits to let people spend more. Not just Europeans but countries around the world are standing up and taking lead on issues that face the world. I do not agree that sending troops into sovereign nation is a act of leadership. It could be, but sometimes its better to be persevere and work collaborative towards a solution.

I may have been little bit all over the shop discussing this but what I am trying to say is countries around the world are doing interesting things. It might be time for US to notice that and learn; it might be time to follow.

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Added Sep 22

Some intersting articles on the topic.

Funny and cynical view on the same subject -

How We Became the United States of France
http://www.time.com/time/nation/article/0,8599,1843168,00.html

Fallout between US and Europe on how to tackle the latest financial crisis. Some quotes and link to the article

“There’s a view in Europe that this is a U.S.-made problem, and that it should be solved in the U.S.,” said Charles H. Dallara, the managing director of the Institute for International Finance, a group of 340 global banks"

The German chancellor, Angela Merkel, criticized the United States and Britain for opposing German attempts to put greater regulation, or at least reviews, of the financial sector on the international agenda last year, when she was leading the Group of 7.

“Everyone who produces a real product knows what it looks like and what standards it is up to,” Mrs. Merkel said, while traveling in Austria. “One also needs to know with a financial product what’s involved. Otherwise, these sorts of things happen that we then all have to pay for.”

Christian de Boissieu, chairman of the French prime minister’s council of economic analysis, said: “The U.S. must take charge of the budgetary costs of the crisis. I’m all for trans-Atlantic solidarity, but this doesn’t include financing the bailout.”

Foreign Nations Pledge Support, but Not Financing
http://www.nytimes.com/2008/09/23/business/23wealth.html?_r=1&ref=business&oref=slogin

US casino mentality blamed for meltdown