Summary
There has been a drop in the GDP of western countries and a rise in that of eastern countries. The West will inevitably decline in the future. However, this will probably not happen any time soon as eastern countries are still dependent on the west for trade and employment purposes.
There has been a drop in the GDP of western countries and a rise in that of eastern countries. The West will inevitably decline in the future. However, this will probably not happen any time soon as eastern countries are still dependent on the west for trade and employment purposes.
Introduction
Ever
since the release of the late Oswald Spengler’s double volume book ‘The Decline
of The West’, economists, political thinkers and leaders have been debating if
Spengler’s predictions may come true. The West is usually defined as Oceania,
North America, Europe and Israel, with the Post-Soviet World and Latin America
having the possibility of becoming Western. Although initially regarded as a
pessimist, comparison of recent trends in the economic, political and social
conditions of the West to that of the east have given rise to a genuine concern
about Spengler’s theory of the decline of the West.
Rise
of the Rest
Decline
and complete downfall of the West are not the same thing. Western power may be
declining in relation to other powers but it doesn't mean that the West is no
longer powerful. Several economists and political thinkers believe that this is
more about the rise of the rest than the decline of the West. However the rise
of civilizations such as the Chinese civilization has been highly exaggerated. It
is true that these countries have been rising economically at an exponential
rate and are also leading to an increase in the GDP of other countries. In
2009, exports to China accounted for over 14% of Taiwan’s GDP and over 10% of
South Korea’s [1].
But according roughly half of East Asia’s exports to China are electronic
parts, such as semiconductors, transformers, and hard drives, for goods that
are eventually exported elsewhere. In these industries, China is not so much an
engine of demand as a transmission belt for demand originating elsewhere. The
share of parts and components in its imports is, however, falling.
Also,
recent statistics show that China’s dependence on the West for oil will
increase. From almost 40% a decade ago, it fell to 27% in 2008, according to a
recent paper by Soyoung Kim of Seoul National University, as well as Jong-Wha
Lee and Cyn-Young Park of the Asian Development Bank. This reflects China’s
gradual “transformation from being the world’s factory, toward increasingly
being the world’s consumer,” they write In 2004, Chinese oil imports totalled
3.40 million barrels a day (m/bd). Today, the People’s Republic of China
consumes approximately 7.85 m/bd. It is estimated that China will increase oil
imports to as high as 9.60 m/bd by 2010, 11.40 m/bd by 2015, 13.50 m/bd by
2020, and 16.10 m/bd by 2025[2].
Even
demographic trends cannot be used to predict the decline of a civilization. The
demographic trends depend highly on the particular circumstances of the age.
Birth rates tend to drop when the wealth of a society increases. But wealth is
just one of the many, many factors that contribute to birth rates. Most factors
are unpredictable as they depend on particular eventualities.
For
decades the West has been efficiently exporting considerable amount of their
economy to Asia in the form of outsourced advertising and manufacturing jobs as
they were considered a waste of their time and energy and seen to be too
"blue collar". They have been and still are fixated with
"knowledge jobs” i.e PR, lawyers, financial services, management
consultants etc. The list goes on. What many people in the West do not seem to
realize is that there are different classes of knowledge. The type of knowledge
they have chosen to embrace is the temporary kind. The other kind of knowledge,
the permanent kind used in manufacturing, i.e electronics, industrial equipment
etc relies on mathematics, the laws of physics and so on. This kind of
knowledge sticks around and forms the basis for the next layer of more advanced
technology. Over a period of time you amass a vast wealth of knowledge that
takes decades to build. The West has become one vast army of people who can't
actually do anything or create anything. Asia is becoming far wealthier than
us. West is declining at an exponential rate and to top it all off - most
people in the West don’t even know its happening.
Economic
Decline
According
to a new report from the AFL-CIO, the average CEO made 343 times more money
than the average American did last year[3].
Gas prices reached five dollars per gallon at a gas station in Washington, DC
on April 19th, 2011. Over the past 12 months the average price of gasoline in
the United States has gone up by about 30%. Due to rising fuel prices, American
Airlines lost a staggering $436 million during the first quarter of 2011. There
are now about 7.25 million less jobs in America than when the recession began
back in 2007[4].
The average American family is having a really tough time right now. Only 45.4%
of Americans had a job during 2010. The last time the employment level was that
low was back in 1983. Only 66.8% of Americans men had a job last year. That was
the lowest level that has ever been recorded in all of U.S. history. These are
just some of the many signs of the economic decline in the U.S.
European
countries are also suffering from similar problems. The EU should try to work
towards a stronger economy. The only way to achieve this is by finally
relieving the citizens of Europe of the crushing tax burden and horrible wealth
destructing bureaucracy that is the EU. Also, the European welfare state has
undermined society a great deal. It would do European civilization a great
service to make their people self-reliant again. Mr Moisi's alarmism is just
the typical outcry of the European intellectual. However he may be one of the
many people who try to raise pulses with unsubstantiated claims about reality,
by which they safeguard the demand for their prophecies.
The
fact that the West has produced so many different forms of technology is no
longer an indicator of success. Perhaps they reached what could be considered
an economic peak - there is nowhere left for them to go but down, despite their
technological ability, in which even the Aztecs were also pretty adept, and
history suggests that this is what's going to happen though of course, there
are exceptions.. Other factors which are more indicative of decline, such as
religion, economics and identity are still slowing down. Fukuyama's end of
history is also no longer possible, because of the change in world order since
the end of the cold war and the growth of power of China, Iran, Pakistan and
other Eastern states. Therefore the spread of liberal democracy and western
values no longer being possible, the West’s chances of becoming a global
civilization has decreased dramatically.
The
West is the only civilization without a coherent religion, even though majority
of them are Christian, there are so many different identities within the West
that it is impossible for us to adhere to one true identity and this is another
problem with the success of the West as a civilization - without a true
identity, they will pretty much fall to pieces, as history on several occasions
has proven.
Conclusion
Every
civilization falls into decline at some point. The West is in no way unique.
Globalization has happened before (Rome) and Rome still fell. There are still
many alternatives to the West as a hegemonic civilization. The West just like
any other civilization will fall - eventually. Not necessarily any time soon.
The death of the West is, effectively, inevitable - even with the theories of
Western globalization being a universal one, it will fall into decline, if it
hasn't already. This doesn't necessarily mean it will be replaced by China.
However, the civilizations that make the most noise are the ones which are not
such a great threat which in this case includes China, India and even Iran.
[1]Daniel
H. Rosen, Zhi Wang, ‘The Implications of
China-Taiwan Economic Liberalization’ (Peterson Institute For International
Economics, 2010) p. 69
[2]
http://www.ensec.org/index.php?view=article&catid=96%3Acontent&id=197%3Achinas-oil-supply-dependence&tmpl=component&print=1&page=&option=com_content&Itemid=345
[3]
Jennifer Liberto, CEOs earn 343 times
more than typical workers (CNNMoney, April 20, 2011)
[4]
Mortimer B. Zuckerman Why the Jobs Situation Is Worse Than It
Looks (June 20, 2011), U.S.News.com
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