Elements of such a model already exist in some countries. Having rejected the tutorials of the International Monetary Fund, countries such as Malaysia and Brazil have achieved impressive rates of economic growth. China and India have pulled hundreds of millions of people out of poverty. By mobilizing state resources, France has built a system of high-speed railways, while Canada provides free health care. Among the new democracies, Slovenia and Slovakia have been able to mitigate the social consequences of market reforms.
The time has come for “creative construction,” for striking the right balance between the government and the market, for integrating social and environmental factors and demilitarizing the economy.
Washington will have to play a special role in this new perestroika, not just because the United States wields great economic, political and military power in today’s global world, but because America was the main architect, and America’s elite the main beneficiary, of the current world economic model. That model is now cracking and will, sooner or later, be replaced. That will be a complex and painful process for everyone, including the United States.