chapter  5
31 Pages

Getting to the Future: The Politicoeconomic Process

The year 1997 was pivotal in the political and economic evolution of the post-cold war international system. Politically, the central role of the United States was demonstrated. The limits o f U.S. leadership were shown in diverse events. One was the reaction to great stock market fluctuations in Asia (and the traumas that a number o f Asian econo­ mies experienced). Another was the brouhaha over inspections o f sus­ pected weapons sites in Iraq. And yet another was the question o f an international convention banning land mines. Economically, the strength o f the globalizing economy was demonstrated by the expan­ sion o f membership in APEC and Mercosur and the extension o f a helping hand to several formerly Communist states by the EU. The potentially darker side o f the extension o f market economies globally was demonstrated by the crises in Asian economies. Politics and eco­ nomics came together in anointing the International Monetary Fund (IMF) as the global “bad cop” to make sure that emerging market economies played by the rules o f the First Tier.