Davos

On January 24th, the latest edition of the World Economic Forum will open. The theme for this year's gathering is "The shifting Power".
The Jannuary 29 edition of Time magazine has an article concerned with the decoupling of the world from the US economy. " It used to be that the US economy supported the world economy. Now, it is the other way around." Economists hesitate between "a happy slowdown" and a "meltdown" for the US economy.
What happened since 1999, when I accompanied a high ranking delegation of French politicians who wanted to study Clinton's economic miracle, the huge budget surplus, the incredible growth rate, the inexistant unemployment, the "goldilocks economy"?
True, one could say that emerging countries like China, India, Brazil Indonesia or Turkey woke up and have achieved remarkable progress.
One could talk about 9/11, the internet bubble or the housing speculation.
The bottom line is that the war in Iraq, ill advised, mendaciously excused and illegally perpetrated, has brought the nation on the edge of ruin. At the very least, it has knocked it off its pedestal
One does not die of a financial wound. Nations do not either. But what has been lost with the Bush administration adventure is infinitely dearer: Prestige.
The dollar is down, the army is in bad shape, the country's reputation as a beacon of human rights has been tarnished and the very Constitution has been hit. Foreign students and businessmen are no longer welcome.
Fortunately, the Constitution proved its strength. November 9 constituted a welcome turn around. And the new Democratic Congress has already started repair work. But like a great tanker, it will take time before the country can claim its former place at the table.
In the meantime, voices in Europe are advocating a shift of alliances toward Russia and the Arab world, away from Washington. Iran is requesting the Euro for foreign payments, and both India and China are busy establishing partnerships with Africa and latin America.

The Davos talks will be especially interesting this year, even if their very topic is a warning sign for Americans. While they were having their "splendid little war" in the Middle East, the world kept turning and used their self inflicted weakness to its advantage.