Embedded hegemony and the evolution of the United States’ structural power

Abstract

Whilst the United States’ (US) economic hegemony has existed continuously since the end of World War II, it has not been realised in the same way. In the early post-war period, the US’s hegemony rested on its dominance over gross world product and manufacturing output and exports. However, by the 1970s it began to transition to high-technology industries, services and foreign investment. Using a structural power analysis, this article argues that this transition in the economic foundations of US hegemony was not a reaction to an exogenous shift in the international division of labour, but was rather the result of the endogenous policies, decisions and priorities of the US. Moreover, the article illustrates how the interaction between the four aspects of structural power (security, production, finance and information) determined how these new hegemonic interests were embedded in international institutions and norms to better project US power globally. Through a historical analysis, the article demonstrates that the four aspects of structural power went from mutually reinforcing each other in the early post-war period to detracting from each other from the mid-1960s. This spurred a managed transition by the US from one embedded hegemonic order to another. The result was the construction of contemporary US embedded hegemonic order based on dollar hegemony (financial structural power) and the internationalisation of US corporate dominance (productive structural power), supported by the private ownership of knowledge by US corporations (informational structural power). The article also considers the implications of this analysis for current challenges to the contemporary hegemonic order.