Nearly a decade after the collapse of the Soviet Union, foreign-policy pundits are still struggling to give a name to the post-cold war world. That they have so far failed is just as well. For the problems and challenges the next administration faces may be as different from the last decade's as the post-cold war world was from the cold war era. That's bad news for policy-makers in Washington, many of whom have grown accustomed to the easy dominance the United States has enjoyed over the past decade.

Despite a bumbling start, the Clinton Administration has made hegemony look easy. It is remarkable how little the United States has had to sacrifice to support its dominant position in the world. Over the past decade, US foreign assistance, for instance, has fallen to a pitiful 0.1 percent of GDP, the lowest of any country in the Organization for Economic Cooperation and Development. Even its military spending has declined to a modest 3 percent of GDP, the lowest level in fifty years. Of course, the United States still maintains a vast military capability, but it is increasingly unwilling to risk American lives in its use, as its conduct in the Balkans amply illustrated.

In addition to bearing burdens for world security, dominant great powers generally export capital to the world, investing in the infrastructure and industries of less developed countries. At the height of its power, in 1913, Britain exported capital on a scale equal to 9 percent of its GDP per annum, financing much of the infrastructure of the United States, Canada, Australia and Argentina. By contrast, the United States sucks in capital not just from Europe and Japan but also from capital-poor emerging economies, to the tune of 4 percent of US GDP.

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