Introduction
The starting point for an analysis of the current ECONOMIC crisis is to look at the STRATEGIC POLITICAL mistakes made by the West.
The second thing to get right is to view the crisis in a historical context. The truth of this is that there is a RELATIVE shift of the world economic power from the near monopoly of the West to a more diverse centres of economic power in the world economy. I call this 'transition' to 'the Asian Century'. This may seem to be provocative, but I think this offers a better framework than the Project of the American Century or the European Century thesis. There is one of the biggest shifts in world economic history going on - in this period of the start of the 21st century in its first few decades. The magnitude of the change is denied by political denial on the part of the West.
The strategic political mistakes have been very costly.
Part One: The West and Strategic Political Mission Failure
The West has created a Trans-Atlantic rift between itself - European Union versus North America. Both sides of the right are mistaken in their thinking. The vicious political fight between Europe and America for hegemony of the world has resulted in failure in both sides. However, this does not explain the magniture of the mistakes made.
Europe adopted a strategy of a gated community amidst the globe. European unity took precedence over Europe's role in the world economy. This role is not about dominating the world economy at all - or beating the USA in terms of hegemony. It's a very different type of role. I will call it 'the synergy role' in the world economy. For Europe to progress, it has to work on a global win-win strategy with all parts of the world economy. From the USA and North America, to Asia and Africa and Latin America, it has to think about how to create a new global jigsaw of the world economy, where the different pieces fit together without breaking them. Europe created inside its own gated community, a terribly destructive politics. This is the rise of neo-Nazi racist parties. They are reactionary pulls on Europe to be hostile to globalisation, multi-cultural realities, reverse progress - and then of course - be hostile to European Union in depth or breadth.
For the USA, military dominance and 'victory' in the Cold War went to the head. The Project for the American Century was the biggest mistake to make. This was accompanied by strategic errors towards the world - seeing different parts of the world as enemies - in the self-fulfilling and sectarian 'Clash of Civilisations' policy, which has dragged USA secularism into a new religious Cold War. Securalism is the ideology of modern capitalism and progressive movements in the world. It fits into new forms of globalisation, which are not based on dominance but based on co-operation (synergy politics). The West specifically USA has got hostile forces facing it in the World. However, it has rejected the strategic mindsets needed to address these in a politically effective way. Instead, it has lost major battles e.g. with terrorism. USA won the Iraq war, but very badly lost the peace and stability after its early military dominance. The same has happened in Afghanistan, which had an unambiguous UN mandate for action. Similarly, it has failed in dealing with Iran and its foot-soldiers in the Middle East (e.g. Muslim Brotherhood/Hamas).
In its own backyard, it has failed to deal with Latin America anti-USA political movements. A simple failure to comprehend the strategic development of Latin American left/progressive forces as the centre of political gravity - with some pro-America and some anti-America (both part of the left forces). Progressive capitalism is a force in Latin America - with extreme left forces moving into the mainstream politics, rejecting anti-USA positions and delivering social justice programmes e.g. President 'Lula' in Brazil.
Similarly, the USA did not fully appreciate the rise of Asia. Ironically, President Bush played a strong role in this. He advocated APEC (Pacific based economic community) - Americas and Asia. He also supported ASEAN and wanted it to be an important forum. There was political jockeying, but it was a serious strategic approach. There was a principled and pragmatic attitude towards China. President Bush pushed this agenda. He managed to strike a major deal with India - Indo-US Nuclear Agreement - which was a major strategic victory, but it was not pursued into a fuller agreement with India across different areas to make India into a political centre for all democratic nations of the world specifically EU, North America, Japan, ASEAN, etc. India has to be made into a global super-power - because it is potentially huge political and economic ally of the West/Japan. However, this is a massive internal change for India and requires massive strategic thinking to put India into the centre of world affairs e.g. supporting a real political campaign to make India a permanent member of the UN Security Council - and not accepting any compromise on this issue.
The next major Western strategic mistake was to wave the flag of victory: 'End of History' when only East Europe and Soviet Union abandoned Communism. The world is not just Europe or the West. China exists as a Communist state. Basically, the third world is a mixture of democracies and dictatorships. There is a real fight going on the third world on this issue. The West could have boosted this in a strategic way - by boosting democracies - and not using war to create democracies. The Alliance of Democracies is potentially a powerful alliance - providing it becomes meaningful at an economic and technological level. The strategy of military war-fighting has many weaknesses - and has a very muddled record in the last decade - more defeats than victories for the West - with considerable damage to its military reputation and political alliances in the world as well as alienating vast global communities under the 'clash of civilisations' thesis.
East Europe has been a success politically and strategically. Both EU/USA deserve credit for this. The forces of the Right pursued this on the basis of individual freedoms. The forces of the centre on a similar human rights basis. Both were politically and strategically the right thing to do. There are still strategic issues at stake. For instance, Poland should have been given the Missile Defence Shield. There are concerns about Russia pursuing an attack similar to Georgia in Europe.
The West needed to construct a new paradigm that could work at a strategic, political, economic and hegemonic (leadership/mobilisation) level. I contend that 'Progressive Capitalism' is the paradigm. It must start off this progressive thinking by rejecting racism and neo-Nazism in Europe and the Christian fundamentalism in USA. EU/USA must promote multi-culturalism (this is separate from its immigration policy as long as it is not a racist one) in order to send the message that progressive societies love all mankind with universal rights and freedom. Multi-cultural world can be related to the concept of multi-cultural EU/USA.
On religion, EU/USA should be clearly secular. Freedom of religion - but a clear separation of the 'religion' and 'state'. This has to be the message sent to all parts of the world. Governments must not be based on religious ideologies, but on a democratic basis - the people determining government. Religious conflicts take societies/government/economics into a backward and reactionary, non-scientific direction. Progress is fundamentally damaged by religious sectarian and reactionary forces. The whole world is set back. Islamic terrorism has become a problem. Clash of civilisations is the wrong framework. Multi-culturalism is the right one. The West has to provide clear leadership on this issue by winning this internal battle. This is the number one cause of the gradual weakening of the 'progressive' mission of the West. Racism/sectarianism has to go - and replaced by the doctrines of the Founding Fathers USA, Universal Rights of Man France and Bill of Rights UK, etc. - the fundamental foundation doctrines of the West.
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