Hegemonic Stability Theory - Is The U.S. Still A Hegemon?

Is The U.S. Still A Hegemon?

Hegemony demands power, which is defined by Susan Strange as the ability of one party to affect outcomes such that their preferences take precedence over the preferences of other parties. The question of whether the U.S. is still a hegemon is tied into whether or not it has lost power. Keohane sees power as tied into resources and production. The US GDP is now lower relative to others as there are growing economies with considerable amount of GDP such as BRIC countries. This implies a loss or decreased power of US as a hegemon.

Although resources are an important determinant of power, they are not always determinative. For example, the German troops that conquered western Europe were actually fewer in number than their opponents. Susan Strange uses this logic to argue that the U.S. is still a hegemon.

One form of power that the U.S. possess is structural power. After the Exxon Valdez accident, the US passed a domestic law commanding any oil delivery ship to have unlimited liability insurance. Even though most oil shipping companies are located overseas, they nevertheless complied with the law because the US is world's largest market for oil. This non coercive or attractive form of power is key to Keohane and Nye's concept of Soft Power.

In addition to structural power, the U.S. has many resources. It unilaterally helped Mexico in the Peso Crisis and unilaterally helped Russia with economic aid. The United States has also 'persuaded' many countries to embrace the free market; through institutions such as the International Monetary Fund, it pushed Latin American nations to undertake economic programs that Washington believed were necessary (see Washington Consensus).