The Non-Eclipse of America

WASHINGTON, DC – The recent creation of a new international development bank by Brazil, Russia, India, China, and South Africa – the so-called BRICS – is just the latest challenge to America’s global leadership. But, from an international business perspective, the United States remains in a strong position.

Perhaps the best indication of America’s enduring stature is the dollar’s dominance in international financial transactions. Last year’s Foreign Direct Investment Confidence Index, based on a survey of more than 300 executives from 28 countries, showed that, for the first time since the Iraq War began in 2003, foreign investors view the US as the world’s most attractive destination for future investment.

The ability to project power internationally begins at home. And, despite its historically slow economic recovery, there is plenty of reason for optimism in the US.

According to the US Federal Reserve Board, the index of industrial production, which had declined by 17% during the recession, returned to its pre-crisis peak in the fourth quarter of last year. The US has also made some progress in “on-shoring” manufacturing activities, and the energy sector is booming, owing to a sharp increase in natural-gas production.