By Mohammed A. R. Galadari

July 11, 2006
Khaleej Times - U.A.E. - Original Article (English)    

The almighty dollar: Still the
planet's currency of choice;



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DESPITE apprehensions about high oil prices and the erosion of the mighty dollar, the United States continues to be the world's richest country. The reigning superpower tops the latest World Bank list of wealthiest nations, calculated on the basis of GDP and consumer spending.

And why not? This is the reward for running the world's most successful capitalist economic system. Whether it's a liberal republic or parliamentary democracy, such states succeed and prosper because they share a capitalist vision.

America has had a solid and stable system of governance that has continued uninterrupted for the past few centuries, and it is ruled by a clear economic vision backed by regular market reform.

As a result, the world's most powerful nation is also its richest and most economically powerful, with a GDP of $12.46 trillion. It is home to eight million of the richest people earth, near the populations of a number of European countries.

To top it all off, America has democracy, political freedom, a free and outspoken media and freedom of expression, which is all seen as a blessing by leaders and government officials.

Be they involved in private enterprises or public groups, everyone recognizes and acknowledges the role played by freedom of the press and its responsibility to society. They know that the media must tell the truth as it is.

And despite the fact that it is a capitalist society where large corporations have vested interests, no eyebrows are raised when the press reports on consumer concerns or steps in to protect consumer interests. For instance, the media must report when any project is badly executed, and not in accordance with agreements or contracts. Or for example, when companies cut corners to make an extra buck and this is reported by media, it is taken as constructive criticism, without attributing ulterior motives to the media.

On the contrary, if we in the media fail to do our job of reporting these issues, we wouldn't be doing justice to our readers or consumers. In such cases, the media’s role could prove critically important. For instance, in many nations recently hit by earthquakes, housing infrastructure wasn't built according to safety guidelines. As a result, thousands more people died than might have otherwise.

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Dear readers, you wouldn't expect this to happen in capitalist America where everything is built on a solid foundation, whether it be an apartment building, shopping mall or other infrastructure. And companies are accountable to their consumers, be they in the business of housing, cars, planes, steel, cement or food. It is not as if these companies are not conscious of their image in the minds of their customers. But they also understand the factor of accountability and that if you don't deliver, you'll have to pay for it.

This is the key to America's success as a nation and an economy. And this is precisely why the U.S. dollar, despite recent setbacks, continues to be the world's favorite and most dependable currency. In fact, the mighty dollar's sway over global markets and its role as the currency of international trade is a tribute to America's unique place in global affairs. Moreover, if other countries are progressing economically, they only do so by following in the footsteps of the global leader.