International Political Economy: Perspectives on Global Power and Wealth, Fourth Edition

Stephen D.Krasner 29

It was only after the First World War that the United States became relatively
larger and more developed in terms of all four indicators. This potential dominance
reached new and dramatic heights between 1945 and 1960. Since then, the relative
position of the United States has declined, bringing it quite close to West Germany,
its nearest rival, in terms of per capita income and share of world trade. The
devaluations of the dollar that have taken place since 1972 are reflected in a
continuation of this downward trend for income and aggregate size.
The relative potential economic power of Britain and the United States is shown
in [Tables I and II].

TABLE 1. Indicators of British Potential Power
(ratio of British value to next highest)

*Stock, 1870–1913; Flow, 1928–1950.

Note: Years are in parentheses when different from those in first column. Countries

in parentheses are those with the largest values for the particular indicator other

than Great Britain, n.a.= not applicable.

TABLE II. Indicators of U.S. Potential Power
(ratio of U.S. value to next highest)

Note: Years are in parentheses when different from those in first column. Countries
in parentheses are those with the largest values for the particular indicator other
than the United States, n.a.=not applicable.