Out of the box America has to carry out its economic and political reforms
America does not need to feel ashamed or dismayed when the day comes, as it must, to cede leadership of the global economic system to China. This is likely to happen within this decade.

The ordinary people and leaders of China will remember the generous help that America had given to the economic and social development of China in the decades following the historic visit of President Nixon to China in 1972.

Indeed, many of the leaders in the government and business in China had spent years studying in American universities.

America can look to the example of Russia following the collapse of the Soviet Union during 1988 to 1991. Instead of fighting against the inevitable, the Soviet Union adapted to the global change and transformed its economic and political system. This was done in a peaceful manner and had improved the livelihood of its people.

It is now time for America to face the reality that its economic and political system needs to change and adapt to a new global environment. 

Perhaps the success of China's political and economic system can point the way for America to move forward. There is no shame in learning from the successful examples of other countries. Both China and Russia had taken this journey several decades earlier.

America has to realize that its current economic and political system needs to change.

It had already recognized for a long time that its political system has been dysfunctional (and they had coined the term "gridlock" to describe it). It clearly needed a new political structure to help it address the challenge of creating a better life for its people.

In its own way, and to address the economic challenges caused by the pandemic, America has implemented economic reforms that can be described as "socialist". The government has extended financial help to many people who are badly affected by the economic fallout of the pandemic.

America has also recognized the need for the government to pay a bigger role, which is often described as "state capitalism".

Rather than continuing with a economic and political system that is no longer functional, it is better for America to recognize that it needs to implement fundamental changes that China and Russia had done earlier.

The transfer of leadership of the global economic system to China can be a good opportunity for America to embark on its reforms. 

Many countries in the world will still remember the days when America helped them to achieve economic and social development. These countries will remember the generosity of America and will also cheer the changes that America will now have to make to address its weaknesses.

I hope that the transfer of leadership will be done peacefully and lead to a better world.

Tan Kin Lian






 

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