CSS 2014 Solved Current Affairs Past Papers | The Strength of the USA
The following question of CSS Current Affairs 2014 is solved by Sir Ammar Hashmi, the best Current Affairs Coach, on the guided pattern of Sir Syed Kazim Ali, which he taught to his students, scoring the highest marks in compulsory subjects for years. This solved past paper question is uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.
Question breakdown
The question has one part. The question requires the Strength of the USA to Implement Its Economic Policies Worldwide.
Outline
1-Introduction
2-An overview of the USA implementing its economic policies globally
3-The strength of USA to implement its economic policies worldwide
- ✓The US-led economic World Order
- ✓Strong influence over international organizations
- ✓Tactical use of economic aid and assistance
- ✓largest economy / economic power
- ✓ The US Dollar as the reserve currency of the world
- ✓Supremacy and presence in international politics
- ✓Strong culture of entrepreneurship and innovations
4-Critical analysis
5-Conclusion
Answer to the question
Introduction
In an expanding, interconnected world, building the capacity to implement global economic policies that match one’s interests is essential. Similarly, the US, as a global leader in the economy, significantly impacts investment, financial flows, and international trade. Various key components fuel the strength of the US in imposing its economic policies globally. For example, its dominant position in international organizations and tactical use of economic aid enable it to make alliances and promote its interests. Moreover, economic diversity in the US and the US hegemony in international politics is a strength of its economic power. All these factors collectively make a strong economic base that will continue strengthening the US status as a world economic leader and facilitate its ongoing power in the international economy.
An overview of the USA implementing its economic policies globally
The United States plays a significant role in the global economy and shapes the overall world economy. The US, as the global economic leader, has the capacity to shape finance, economic development, and international trade via its policy decisions. By implementing policies, such as tariffs, economic sanctions and trade agreements, the US can impact the flow of goods, services and capital across borders, affecting economies around the world. Additionally, the US Federal Reserve’s monetary policy decision has lasting impacts on the international financial markets and interest rates. The US also plays a key role in international economic organizations such as the World Bank (WB) and International Monetary Fund (IMF) shaping international economic governance and development agendas. Furthermore, the US can boost cooperation, economic stability, and growth or create instability and uncertainty, making its role in enforcing policies a critical element of the international economy.
Strengths of the USA to implement its economic policies worldwide
The following are some significant factors that strengthen the US in implementing its economic policies worldwide.
- ✓The US-led economic World Order
First, the position of the US as a leader of the world order serves as its strength in imposing its economic policies worldwide. The US plays a key role in the world’s affairs by resolving issues through its different international organizations. It is evident from the 2022 report of the Organization for Economic Cooperation and Development (OECD) that the USA’s strong military presence works as a stable source of global economic security, allowing it to implement its economic policies and promote its economic interests globally. It highlights the US military presence in the world’s key regions to maintain world order, allowing it to impose its economic policies globally. Resultantly, this factor worked as a strength of the USA in shaping the world’s economic policies and fostering its interests.
- ✓Strong influence over international organizations
Second, the USA has a significant position in international organizations, highlighting its leadership in implementing its economic policies and promoting its interests worldwide. For example, the US dominates the International Monetary Fund (IMF), the largest stakeholder, holding 17.47 per cent of the total voting power. This significant shareholding gives the USA a substantial influence over the IMF’s policies and decisions. Thus empowering the US to shape economic policies internationally and achieve its economic interests.
- ✓Tactical use of economic aid and assistance
Third, the USA’s tactical use of economic aid and assistance is a strength for implementing its economic policies worldwide. According to the Congressional Research Service report, the US assistance program is working as a tool to promote its economic policy objectives and interests. Evidently, the report highlights that US assistance programs have been used to advance economic liberalization, support the development of free trade agreements, and foster adaptation of economic policies that align with US interests. Thus, the USA’s tactical use of economic aid and assistance enabled the US to influence other countries’ economic policies and promote its economic interests to maintain its position as a global economic leader.
- ✓Largest economy / economic power
The US is the world’s largest economy, and this position empowers it to implement its economic policies and interests globally through trade agreements and sanctions. According to the 2022 report of the Council of Foreign Relations, the US imposed sanctions on more than 20 countries, which affects about 40% of the world’s GDP. Therefore, this economic leverage enables the US to shape world economic standards and policies. In this way, the US’s influential and largest economy provides an effective economic power, which enables it to negotiate and influence the world economy and uphold its position as a global leader in economy.
- ✓ The US Dollar as the reserve currency of the world
The US dollar’s status as a global reserve currency is a strength factor in implementing economic policies worldwide. It is the most widely traded and held currency in the world. The International Monetary Fund (IMF) report highlights that the US dollar accounts for more than 60% of foreign exchange reserves internationally, making it the most widely used and held currency in international trade and finance. Hence, this dominant position of the US has substantial leverage in shaping world economic policies, as other states heavily rely on the US dollar for their transactions. In the end, the US dollar’s hegemonic position is the key element for the US in imposing its economic standards and promoting its economic values in the global arena.
- ✓ Supremacy and presence in international politics
The dominant position of the US in international politics facilitates the shaping of the global economy and fosters agreements based on its interests. For instance, the report of the Global Governance Institute highlights that the US has sustained its status as the world’s leading military power, which accounts for approximately 36% of world military expenditures. This military potential gives the US crucial political power, enabling it to shape international economic policies and foster its interest worldwide. Moreover, the US has used its political power to negotiate favourable trade agreements, such as the United States-Mexico-Canada Trade Agreement that replaced the North American Free Trade Agreement. Therefore, the US hegemony in international politics works as a key for imposing its economic policies and advancing its economic interests, strengthening its status as a dominant global leader.
- ✓ Strong culture of innovation and entrepreneurship
The USA’s strong culture of innovation and entrepreneurship serves as its strength in imposing its economic policy worldwide. For instance, the US ranks 1st among 133 countries in the 2023 global index of innovation with a 61.73 score out of 100. This report shows that the USA is a world leader in innovation and has a strong entrepreneurship culture. Additionally, the USA has a long history of innovations from the Industrial Revolution to the present day, transforming many industries and making new markets. This factor of strength helps the USA to implement its economic policies internationally.
Critical Analysis
An in-depth analysis proves that the power of the US in imposing its economic policies globally is a double-edged sword. On the one hand, the economic influence of the US has the capability to fuel global growth and reliability, enabling it to regulate finances and shape trade agreements internationally. However, this supremacy also fosters a system of economic exploitation that further strengthens the US at the cost of other countries. On the other hand, the dependence of the US on its economic power to implement policies, leading to hostility among states, forced them to adapt to its policies. Moreover, the US’s own economic weaknesses, such as national debt and increasing income inequalities, threaten its potential and credibility to implement its policies efficiently. The US and other countries will likely trail economic deadlock if the US continues to depend entirely on its economic might to shape international policies. Therefore, the international community should assist and cooperate with the US to perpetuate more sustainable and diverse economic practices that minimize economic ramifications.
Conclusion
Conclusively, the US, as a global leader in the economy, significantly impacts investment, financial flows and international trade. Similarly, the status of the US dollar as a world reserve currency and the country’s dominant position in the international financial organizations have further intensified its economic power. Moreover, the US has utilized its economic power in fostering diplomacy, soft power, and national security, which advance its interests and values internationally. Contrarily, as the world economic scenery progresses, the US must continue to conform and address growing hurdles, such as increasing economic nationalism, environmental sustainability, and inequality, to uphold its headship status and foster a thriving and resilient global economy. Finally, the US’s ability to enact its economic policies worldwide remains crucial to its overall power.
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