As American voters contemplate their choices in this presidential campaign year, the world's investors have been voting with their money. The early results are in -- and they don't look good for the United States.
Last month, the Organization for Economic Cooperation and Development released figures showing that last year for the first time, China supplanted the United States as the No. 1 destination for foreign direct investment worldwide -- that is, money that goes into factories, equipment, real estate or existing companies. And in a blow to fans of "freedom fries," No. 2 was France. Though other major economies also suffered a drop-off in this category , no nation fell as far in percentage terms as the United States.
While such numbers fluctuate and foreign direct investment is just one type of capital flow, this dramatic swing can be seen as further evidence that in the 21st century, America is going to have to fight hard for its piece of the global investment pie -- money that translates directly into new jobs and the industries of tomorrow. Clearly, the world economy is shifting around us and our place atop it is being challenged.
Yet the Bush administration's attention has seemingly been elsewhere -- which may be natural, given the trauma of the Sept. 11, 2001 attacks and their aftermath. But just as last week's 9/11 commission report revealed the terrible costs of not attending to looming terrorist threats, so do we need to recognize the danger of focusing so intently on one threat that we are distracted from the others we face.
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