‘Hegemony bonus’ helps US remain dominant

By Yu Ning Source:Global Times Published: 2013-1-10 0:33:01

US hegemony brought the superpower $7,396.09 billion worth of benefits from the global system in 2011, according to a report by Chinese Academy of Sciences (CAS) released on Tuesday.

The report pointed out that the US enjoys the biggest "hegemony bonus" in the world.

The "hegemony bonus" in the report refers to monopoly profits directly or indirectly gained by the hegemonic country through the global system it dominates.

The report also summarized 10 ways used by the US to gain the "hegemony bonus," including through the dollar hegemony, unfair trade and benefiting from intellectual property rights, to name just a few.

The figure was a result based on the model constructed by the CAS. The scientific nature and its accuracy need further proof, however the research cast some light on a globally acknowledged fact that the US has long dominated the international system, and the US hegemony, especially the dollar hegemony, brings the US considerable economic benefits.

Since the Bretton Woods Agreement, the world has been under the dollar hegemony for over 68 years. Former French President Charles de Gaulle famously referred to the US dollar's favored status as an "exorbitant privilege."

Analysts wonder whether the current stagnant economy of the US will weaken its economic influence worldwide, but as long as the dollar remains the world currency, the US can still pay its bills by printing more money.

Meanwhile, the US decline is a topic in discussion. A report by the US National Intelligence Council in December 2012 said there would be no hegemonic power in 2030 with China surging to become the biggest economy and the influence of Asian culture surpassing US and European culture.

 Through the two frustrated wars in the Middle East and the financial crisis, the US's global leadership has been affected and its hegemony is also increasingly being challenged. But the US won't easily resign itself to a declining status. It will strive to maintain hegemony in its economy, military, technology and culture.

China's rise poses threats to the US, but China has no intention of assuming the US's hegemonic power.

It's unlikely that some country will replace the US within a short time. China and other countries should remain sober, but the US may create more disturbances in the region to maintain its old hegemony.

Posted in: Observer

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