By William R. Nester (auth.)
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Extra info for American Power, the New World Order and the Japanese Challenge
Like any other assertion of power, the hegemon bends other states to its will through a combination of coercion and persuasion. T h e hegemon's ability either to reward or deny another state markets, aid, investments, finance, technology, a n d / o r military assistance are key elements of command. But perhaps the most important ingredient of hegemonic power is the hegemon's ability to create and impose an ideology on the global political economy which justifies and explains the system, and elicits other states' compliance.
In all three cases, the result was the leader declined rapidly under the burden of maintaining the system. The fact is that the old hegemonic leader greatly assisted the rise of the new. Dutch capital largely financed British commercial and industrial growth at the end of the seventeenth century and the beginning of the eighteenth century. Similarly, British investments provided an essential stimulus to the growth of the United States . . (and) the growing British market - the dominant consumer market of the time - helped spur both German and American industrial development .
T h e difference between these two systems concerns the means that are used to advance state interests. 48 Although geopolitical and geoeconomic systems differ greatly in the way power is massed and utilized, success in both systems depends on governments skillfully entering a virtuous circle of power and wealth. States in a territorial system enhance their power and wealth through military aggression, by using force to maximize their self-sufficiency in population, natural resources and land, which in turn is mobilized into an ever stronger military.
American Power, the New World Order and the Japanese Challenge by William R. Nester (auth.)