Tuesday, 02 January 2024 12:17 GMT

Civilizational Multipolarity In A Post-Pax Americana World


(MENAFN- Asia Times) In 2016, Singapore's then-Defense Minister Ng Eng Hen was asked in Parliament how the country would respond if the United States were to pull back from its security commitments in Asia. At the time, the question was hypothetical.

Today, with Donald Trump in his second term and Ng stepping down after 14 years as Singapore's longest-serving defense chief, the question has become reality. The American security umbrella – long taken for granted by many of its allies – appears to be fraying.

The post-WWII order, underwritten by US military dominance and financial centrality, is no longer assured. And in anticipation of a post-Pax Americana world, states are adjusting accordingly for a new order.

American fault lines

The first fault line lies in deterrence. For decades, US allies were content to rely on American protection rather than build up their own armed forces. That era is over. Germany has committed US$107 billion to defense upgrades. Poland now spends 4% of GDP on its military – more than any other NATO member.

Asia tells a similar story. Japan is doubling its defense budget by 2027, upending long-standing pacifist traditions. In South Korea, 76% of citizens now support developing nuclear weapons – an idea once unthinkable under the US nuclear umbrella. Across both regions, allies are hedging against the possibility of American abandonment.

The second fault line is financial. The American military's reach has long been sustained by global demand for US Treasuries. But the foundations of that system are weakening. In FY2023, the US ran a budget deficit of $1.7 trillion, $1.1 trillion of which went to defense and veterans' spending.

Meanwhile, foreign appetite for American debt is shrinking. Overseas ownership of US Treasuries has dropped from 42% in 2013 to 31% in 2023. China alone has reduced its holdings by more than $330 billion. The dollar's share of global foreign reserves , once above 70% in 1999, has fallen to 58%.

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Asia Times

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