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The Rising Importance of the Pacific Rim
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12951 |
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Section : |
CURRENT ISSUES
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| Issue
Date : |
5 / 1987 |
2,277 Words |
| Author
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John T. Bennett
John T. Bennett is an economist and president of the Korea
Economic Institute of America, which he founded in 1982 in
Washington, D.C. Previously, he spent 26 years in the Foreign
Service in Asia, Africa, and Latin America. |
Since the end of World War II, the free world has been bound together by a growing web of trade and other economic relationships. Indeed, much of the growth that occurred in this period was the direct result of trade and the opportunities that it presented for increased output.
In recent years, however, something has gone wrong. That growth of which we were so proud no longer provides the same benefits it used to. Americans worry about the jobs foreigners may have taken from us and about whether trade is not only free but fair. Although the United States has created far more jobs than it has lost to imports, many workers face lower wages and some have not found new work.
That imports are viewed as a problem is to some extent due to the fact that most come from Asia. Trade with longtime allies in Europe has not grown as fast nor has it competed as much with American industries. And trade with Latin America and Africa appears almost unimportant in the larger scheme of things.
After World War II, the United States initially focused on traditional allies in Europe. World War II was largely fought there, and we were most concerned about its reconstruction. Yet our focus has steadily shifted to the Pacific. Americans fought wars in both Korea and Vietnam, and we remain deeply concerned about a possible renewal of hostilities in a number of places.
In recent years, Japan has emerged as the second strongest economic power in the world. South Korea, Taiwan, Hong Kong, and Singapore have learned the secrets of successful growth as well and have begun to repeat the Japanese experience. The People's Republic of China shows signs of awakening, while Malaysia, Thailand, and others have managed to grow steadily and are becoming significant trading nations.
At the same time, U.S. imports are growing, with a volume now almost twice the size of its exports. Many economists argue that this can't go on - that the United States is no longer competitive and that the trade imbalance is impoverishing future generations who will have to pay back the debt.
Congress tried to pass trade bills last year but President Reagan stood in the way. He vetoed the bill to restrict textile imports, Congress could not override it, and this put a damper on other bills. The shift in control of the Senate, however, suggests that the outcome may be different this
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