How the American dream went global: interview with Fareed Zakaria
Even as America’s middle class plateaus, says author and CNN host Fareed Zakaria, emerging nations are celebrating a confident new class of consumers.
When global affairs expert Fareed Zakaria started writing "The Post-American World,” it was 2006 and, despite the war in Iraq, the United States was dazzling global onlookers with its unmatched military power, seemingly limitless riches, and cultural supremacy. Yet, Zakaria, now a CNN show host and editor at large of Time magazine, foresaw “the rise of the rest.”Skip to next paragraph
In Pictures The Rising Global Middle Class
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In this third great power shift of the modern era, countries worldwide – China, India, Brazil, and others – experience economic growth at previously unthinkable rates, as the US falters. I spoke with Zakaria about his theory, how it’s playing out, and his revised work, The Post-American World, Release 2.0.
Q.You wrote the original book before the US economy collapsed. How did the financial crisis affect your thesis?
A. I’d be kidding if I said that I predicted the financial collapse. But what’s fascinating is that the financial crisis powerfully accelerated the forces I describe in the book. Its net effect has been to lower economic growth rates in the Western world, but to keep the growth rates in emerging markets largely unchanged.
The growth in emerging markets is not just at the economic level. It’s also happening in terms of psychology. Chinese, Indians, and Koreans are feeling a much greater sense of political confidence and assertiveness. You see this on the world stage everywhere.
Q. Governments are more confident, or their citizens?
A. Both. Chinese officials point out in painstaking detail how they handle their economy much better than the United States handles its economy. Indian bankers say that their central bank was much more sensible [than America’s] during the boom years. In the past, everyone tended to think that America knew how to manage its macroeconomy better than anyone else. Now these countries are experiencing 30 percent growth every year.
You see it in the private sector as well. The emerging countries’ middle classes are now playing out the American dream. The Indian middle class, for example, is bursting with optimism. They’re buying on credit in a way that they never did before, because they were too scared of the future. Now they all believe their lives will be better than [those of] their parents, that their children’s lives will be better than theirs.
Q. You write that “the rise of the rest is a consequence of American ideas and actions,” but also say that these countries are entering the Western order “on their own terms.” How are they doing it?
A. These countries have embraced open markets, open trade, free market economics – basic American ideas about how to control your supply. It’s the fundamental driver of their growth, growth that has produced a certain kind of cultural pride. It’s an inevitable consequence of success. Whenever societies do well, they believe that there is something in their cultural DNA that made it happen. The first phase of this power shift was a fascination with the West. But now these countries are rediscovering their own values and heritage.