Capitalism: US no longer dominates the world of business - by John Gapper
n the 20th century, the US had an uncontested lead in global business. It was the country where the mass-market car emerged, where the world’s most powerful financial institutions grew up, where most software and hardware were invented, where fast-food companies started. It was a single market of 50 states and it produced most of the companies with a decent claim to be global. The early 21st century has seen a growing set of challenges to the country’s position. As 2008 starts, this is being exacerbated by the US economic downturn and credit crisis. Although the US remains a powerful business force, it can no longer take for granted its dominance over the rest of the world.None of this means that the US is finished as an economic force. It is still the world’s biggest market and has great depths of financial expertise, technological know-how and entrepreneurial spirit. It cannot be written off, even if the cyclical downturn in 2008 will add to its longer-term challenges. But it no longer has the world of business to itself.
Note EU-Digest: When we speak of the decoupling of the US economy with other economies we should realize that there is already a decoupling taking place when it comes to the different economies around the world with that of the US. However, when it comes to decoupling of financial markets, we see that given the present structure of the so-called global market place with multi-national corporations operating everywhere, this decoupling of the financial markets in its present form is hardly possible. The question that arises is why don't the strong economies strengthen their internal financial markets in such a way that they can operate independently within a restructured decoupled global financial market.
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