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Monday, July 31, 2006
Michael Barone :: Townhall.com Columnist
And now, the good news
by Michael Barone
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With unemployment at 10.2%, what will happen by the end of Obama's first term?



The world seems aswirl. Where do we stand today?

Let's use the analysis of bestselling author Thomas Barnett, who divides the world into a functioning "Core" (North America, Europe, East Asia, rising China and India) and a nonfunctional "Gap" (the Middle East, most of Africa, part of the Andean chain in South America). Barnett argues that our task is to expand the economically interconnected core and establish what he calls connectivity to shrink the gap.

How are we doing? Actually, not badly. Let's look at the hot spots.

First, the Israeli campaign against Hezbollah in Lebanon. It looks as if the Israelis are encountering more military resistance than expected, and it's not clear that they can wipe out Hezbollah as an effective force. Nor is it clear that the United States can install some combination of European and Lebanese military force to control southern Lebanon. But if -- a big "if" -- the Israelis succeed and Hezbollah is reduced to impotence, that would amount to a significant shrinking of the gap. If not, we're back where we started.

Second, the collapse last week of the Doha round of trade negotiations. They might be revived later, but in the meantime we've missed a chance to open up North America and Europe to agricultural exports from Third World countries that desperately need dollars and euros. That's a shame. But the zone of free trade continues to expand as the United States, during this administration, negotiates one free-trade agreement after another -- Oman and Jordan, Central America and Australia, Peru and Colombia. All are increasing connectivity and shrinking the gap.

Third, immigration. The bill sponsored by Rep. Mike Pence and Sen. Kay Bailey Hutchison, with border security and free-market guest-worker provisions, has some small chance of passing the Senate and House. A law that regularizes illegal immigrants would close the internal gap we have with 12 million illegals.

Fourth, Latin America. Venezuela's oil-rich demagogue Hugo Chavez continues to pal around with dictators and tries to stir up trouble. But Latin American voters have been rejecting Chavezism. The victories of anti-Chavez candidates in Peru, Colombia and Mexico in the past few months show that irresponsible demagogy is not popular in the region. Connectivity is increasing, not decreasing, to our south.

Fifth, China and India, with one third of the world's population, continue to have scorching economic growth -- 11 percent in China, 8 percent in India. And they're growing increasingly interconnected with the thriving economies of the core. Hundreds of millions of people are rising out of poverty, and despite high oil prices, we have solid economic growth in North America and Latin America and even some growth in sclerotic Europe. The world economy has never been in better shape.

The cloud. Do we still face problems?

Sure. Iran, to name one -- though its ally Hezbollah seems to have overreached. North Korea, to name another. Baghdad is a mess with sectarian violence. Islamist terrorists continue to plan mayhem against us, and in Europe, Muslim immigrants threaten to impose their values on free and liberal societies. But as we ponder these problems, we need to take a deep breath and reflect on the larger picture, as Thomas Barnett does in his blog (www.thomaspmbarnett.com/weblog):

"Plenty of people look at the world today and see only decline and violence and chaos since 9/11. I am amazed at how little the Functioning Core of globalization has suffered since that date: no real violence or threats of same amidst our ranks, slow but steady political integration that's still not keeping up with the economic bonds that are booming, spotty but emerging sense of shared security values, and the usual pinpricks of harm inflicted by terror and God, but all in all, nothing really bad despite all this 'tumult' centered in the Middle East and the rising price of oil."

Even so, most Americans continue to moan and groan about our situation, and to yearn for the holiday from history we seemed to be enjoying in the 1990s. As Barnett argues, "Time is on our side, as are all the major dynamics that count -- energy, investments, demographics, sheer firepower, enduring ingenuity, strength of our societies, our enduring resilience." With fits and starts, the core is expanding, connectivity is increasing, and the gap is closing.

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About The Author
Michael Barone is a Fox News Channel contributor and co-author of The Almanac of American Politics. He is Senior Political Analyst for the Washington Examiner and a Resident Fellow at the American Enterprise Institute, a Fox News Channel contributor and co-author of The Almanac of American Politics.
 
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©Creators Syndicate
Nice Overview Michael
It is easy for most of us to get focused on only the negative news of the day and lose the big picture.

You did a nice job of summarizing the major issues of the day and putting them into some perspective.

No shortage of gloom and doom answers by the blogger responders but that is what makes this country great, everyone can voice their opinion.

Thanks; you brightened my day!!

Phil Smith

the good news
I wonder whether all Shiites are either inclined to be or forced to be members of Hizballah or allied groups. That would mean a majority Shiite population in Lebanon and in Iraq with Nasrallah the pres. in Lebanon and Moqtada al Sadr the pres. in Iraq. I don't think that democracy is the key at all but religious, sectarian totalitarianism. Democracy is important for people who are western, logical, wanting a free trade, globalized economic world, but it is beside the point for people who want their own theocracy.
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