The American version of capitalism is no longer dominant around the world. In the next decade, developing countries are likely to continue to trade the flexibility and efficiency associated with the free-market model for domestic policies meant to ensure greater resilience in the face of competitive pressures and global economic trauma.

With China's clout growing, the international community needs to better understand China's strategic thinking. But China's core interests are to promote its sovereignty, security, and development simultaneously -- a difficult basis for devising a foreign policy.

The aftermath of the Great Depression saw a burst of competitive currency devaluations and protectionism that undermined confidence in an open global economy. As countries recover from the financial crisis today, they need to heed the lessons of the past and avoid the beggar-thy-neighbor policies of the 1930s.