Foreign Policy (September-October 2006) by Foreign Affairs

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A. Editors: Jahangir Aziz, Steven Vincent Dunaway, and Eswar Prasad China and India are the two fastest growing emerging markets and among the three largest economies in Asia. They have each amassed huge foreign currency reserves. And their economic muscle is now having far-reaching effects on the global economy. What then does the future hold for these two giants? How will each continue to grow and develop in a sustainable way? And how will policies and reforms in each country serve to broaden recent economic gains to the benefit of their respective populations?

Even within the Middle East, there is more continuity than change. Al Qaeda’s strike didn’t answer the questions of Iranian influence in Syria and Lebanon and of the long-term impact of Ayatollah Khomeini’s revolution on the region. The world’s reliance on oil from the Persian Gulf is as strong as ever. The sclerotic but stubborn Saudi and Egyptian regimes linger on. Israel is still battling militants in southern Lebanon and the Palestinian territories. For all their visibility and drama, the 9/11 attacks left untouched many of the underlying forces and persistent tensions that shape international politics.

Military presence around the percent between 2001 and 2006. Put another way, in world increased the chance of war. 2001, the United States’ military expenditure of $325 Sensibly, those fears grew with the end of the billion was the same as the next 14 biggest militaries superpower contest. In 1995, in a survey conductcombined. By 2005, the Pentagon was outspending the ed by the United States Information Agency, majorinext 14 militaries by $116 billion. ties around the world said that the United States was This monumental increase in military spending intent on dominating them.

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