CAMBRIDGE – Is the United States turning inward and becoming isolationist? That question was posed to me by a number of financial and political leaders at the recent World Economic Forum at Davos, and was heard again a few days later at the annual Munich Security Conference. In a strong speech at Davos, Secretary of State John Kerry gave an unambiguous answer: “Far from disengaging, America is proud to be more engaged than ever.” Yet the question lingered.
Unlike the mood at Davos a few years ago, when many participants mistook an economic recession for long-term American decline, the prevailing view this year was that the US economy has regained much of its underlying strength. Economic doomsayers focused instead on previously fashionable emerging markets like Brazil, Russia, India, and Turkey.