Today’s Student Spotlight is an excellent essay from Vincent Masterson, third year student and co-host of the Beyond City Podcast, for IP3020: American Foreign Policy. Well done!
Encyclopaedia Britannica defines imperial power as: “Extending power and dominion, especially by direct territorial acquisition or by gaining political and economic control of other areas…” To establish whether America fits this definition, I focus on three aspects: economic, territorial and political control.
The indirect impact that some of America’s economic decisions have on emerging markets demonstrates its far reaching influence. According to the Bank of International Settlements, Dollar denominated debt to non-bank borrowers has increased fivefold from $2.17 trillion in 2000 to $11.5 trillion in 2018. The dollar denominated debt of Turkey, Mexico, Indonesia, Chile and South Africa all exceed their currency reserves. When the Federal Reserve increases their interest rate to achieve price stability, it usually indirectly increases the value of the US Dollar and therefore increases the debt servicing costs of countries with high quantities of US Dollar denominated debt. This occurred in the 1980s when the ‘Volcker Shock’, characterised by sharp increases in interest rates by the Federal Reserve, contributed to the start of the Latin American Debt Crisis that resulted in sixteen Latin American countries having to reschedule their debts. When a country’s monetary policy decisions can indirectly affect other countries to such an extent, it clearly indicates that the US fits the economic aspect of the definition of an imperial power.
During Trump’s presidency, there appears to have been a shift in the nature of the US’ territorial power. Contrary to expectations, America has not directly started any new wars or military conflicts during his presidency so far. In comparison, America was involved in four conflicts under George W. Bush and seven conflicts under Barack Obama. This is not to say that America is now a pacifist country. It does however suggest a shift in the nature of America’s territorial power as an imperial power. It may be that the implied threat of power is now just as powerful as the actual deployment of their military capabilities. America spends more on Defence than the next ten largest countries combined, a globally known fact, and this may alter behaviour of other countries more than we know. Therefore, America is still an imperial power in a military sense, it has just deployed that power less frequently during Trump’s presidency.
America does not necessarily exercise direct political control over other countries but it is a major player in many international organisations and the decisions of these organisations have an impact on their member states. The US is either the Headquarters for or a prominent member of the: IMF, World Bank, United Nations, NATO and G8; five of the most influential international organisations in the world. However, it can be argued that America’s political power has reduced slightly as a result of their withdrawal from the Paris Climate Agreement and their decision to no longer financially contribute to the World Health Organisation (WHO). Despite this, it is still the case that America remains the only global hegemony and it is unlikely to be overtaken by a rival political power in the near future.
To conclude, America is an imperial power but the nature of that power has changed slightly in recent years. The source of its territorial power has shifted to the implied power that it gains from its large military arsenal instead of the applied use of that power that occurred during Bush and Obama’s presidencies. Moreover, although its decision to reduce its role in the Paris Agreement and WHO has reduced its political power slightly, it remains the only global hegemony.