Economic Colonialism
The Economist Magazine characterized America’s actions in the world as “Economic Colonialism”. I agree in the scope of colonialism taking on new proportions. But colonialism has traditionally been about economics. The Colonial powers extracted valuable materials from their colonies and forced them to be markets for their goods. All the European powers at the time were involved. In American colonial times Britain extracted tobacco and other products. It forced the colonist to purchase its manufactured goods and not set up their own capability. There is also the most egregious case of Britain forcing Opium on China.
America practices economic colonialism in thrusting upon the world the products and services of its corporations. It marginalizes competition through its courts and diplomatic policies. However America is facing challenges. Most of the top 10 oil companies in the world are not American. The top technology component makers for communication are not American. Many of the high tech manufacturers of nuclear power plants are not American or of high speed rail transportation. The majority of consumer technology firms are not American. Even internet penetration and broadband speeds are not anywhere the greatest in America, so our domestic offering approach is a tough sell in the world.
Why a focus on economics as the driving factor in Americanism? Capitalism is not an economic system that can survive in stasis. It is like a virus and must constantly expand to new hosts to exists. We use the term, “growth”. The increased competition in the world is restricting American growth. The answer from an American point of view is to create new markets in the developing world where there is less competition. Unfortunately there is a problem. The downside of the Pareto's Principle or the 80-20 Rule. The best potential new markets are the most difficult to create.
The Middle East is an example. America expected to extract oil at captive rates and sell goods and services there. However there is no real consumer market or dire need for infra structure. America had to create it. It is why America did so much wanton destruction in the invasion of Iraq destroying schools, hospitals, water works, roads, bridges and commerce facilities.
Creating a market also means infusing American culture. American goods and services are married to American culture. That is the crux of the problem. In the Middle East America finds itself in a cultural war that has a religious foundation and is basically tribal. America must curtail the religiosity in order to create the market and change social structures. It has had no success in merely an American capitalist overlay over the existing system.
Therefore the underlying reason for all the high tech weapons and CIA activities in the Middle East is to advance American markets. Cultural change is a means to an end in creating the desired market. Economic colonialism of America means the crusades being fought all over again. It becomes a case of attrition. How long can America hold the course for very limited short term gains? Will the opportunities turn into another Iraq, where after the fighting; they open the door wide to America's competition?
Labels: Economic Colonialism