Economic Growth Overseas Post Dot-Bomb

As the United States leisurely grows its economy at rates below 3%, the rest of the world must drive the global engine of prosperity. The Post Dot-Bomb period, during which the United States has grown its own markets uninterrupted by recession, has been characterized by much higher rates of growth elsewhere.

The expansion of the European Union to include Eastern Europe has driven growth in the "Old Europe" economies of Britain and France with an influx of cheap labor while "New Europe" has witnessed explosive growth. Countries like the Czech Republic have successfully leveraged their highly educated populations into growth rates of median wages in excess of 40%. The Latvian economy in particular has witnessed wage growth in excess of 200% during this period.

Export-oriented economies around the world have grown more strongly than the United States as well. Germany, one of the world's great exporting powers, has turned its domination of niche manufacturing markets like sensors for satellites. Germany's success has manifested itself in global capital markets. The Euro has recovered more than 30% against the dollar in the last 2 years.

But economic growth outside the United States has by no means been confined to Europe. One of the most important sources of world activity has been in China. China's economy grew at an annualized rate of more than 11% in the first quarter of 2007. China's recent commitment to recognize private property has spawned a new generation of entrepreneurs. One real estate investor in China has built a financial empire worth $9 billion in just over a decade.

Ultimately, the sources of economic growth worldwide are as varied as the peoples that experience it. The great unifying hope for continued growth lies in the rapid adoption of technology across the developing world. The United States' reliance on high technology and research and development has given the rest of the world a tremendous gift. Moving rapidly to install up-to-date technology, China and Eastern Europe have been able to skip whole generations of technology. As Latin America and Africa work up from even further behind, they ought to experience enhanced growth rates as well.