Since the end of the Cold War, the nations of the world have become increasingly interdependent. Interdependency is the idea that relations among states within the international system are mutually dependent and inextricably tied together. In theory, interdependency will lead to peace as war among the dependent nations is no longer feasible. A perfect example is the European Union and its pacifying impact on Europe. The history of Europe is as long as it is violent. Nevertheless, the region has been relatively peaceful ever since the nations of Europe became economically interdependent.
However, interdependency has a dark side. In this new era of globalization, sovereign nations can find themselves held hostage by the economic policies of other states. Imagine the impact on the world economy if Saudi Arabia decided to cease all oil production or if the United States instituted a trade embargo on all foreign products. The current Greece debt crisis is a real-world example of how the economic policies of one nation can severely hamper the economies of the entire Euro-zone, the United States, and the world.
With the aftermath of the recent economic recession and the impact of international trade agreements on domestic economies, should not the United States, as well as the nations of the world, strive to be self-sufficient?
- How do other countries view the fiscal cliff? Lots of pointing and laughing. (washingtonpost.com)