Financial Times FT.com

The selfish hegemon must offer a New Deal on trade

By Jagdish Bhagwati

Published: August 20 2008 03:00 | Last updated: August 20 2008 03:00

In the 1980s, Japan was feared in the US to be a lethal combination of Superman and the evil genius Lex Luthor in a classic case of what I have called the Diminished Giant Syndrome.

Members of Congress famously smashed a Toshiba radio cassette recorder on the steps of Capitol Hill in protest in 1987. Great Britain at the turn of the 19th century had been marked by similar diffidence, despair and recrimination when Germany and the US were emerging on the world scene. There, Sir Howard Vincent entered parliament festooned with mops, pails and brushes marked "Made in Germany".

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