Democracy is dead. Long live democracy.
The phrase "Democracy is dead. Long live democracy" has perhaps never felt more poignant than it does now. With the inauguration of Donald Trump as President of the United States, the world—and America itself—finds itself at a crossroads. As MONEY explores, his rise to power not only marks a seismic shift in the nation's political landscape but also underscores the transition of the United States from a democracy to what many are calling an oligarchy. Coupled with rising wealth disparity, increasing international isolation, and the ascent of global powers like BRICS, America's future and role appear profoundly uncertain.
The oligarchic shift
Donald Trump's presidency is the culmination of decades of growing corporate influence, systemic corruption, and the disenfranchisement of ordinary citizens. As a billionaire who openly flaunts his wealth and connections, Trump symbolises the triumph of oligarchy—a government by the few, where power is concentrated in the hands of an elite class. His cabinet, stacked with billionaires and corporate executives, is a stark reminder that the interests of the wealthy have taken precedence over those of the general populace.
The influence of money in politics has been a growing concern for years. From the Citizens United v. FEC ruling in 2010, which allowed unlimited corporate spending in elections, to the staggering costs of political campaigns, the voice of the average American voter has been drowned out by a flood of cash. Trump's inauguration signifies a continuation of this trend. Under his administration, the wealth gap is poised to widen further, entrenching economic inequality and eroding the foundations of democracy.
Yet democracy is not the only thing under threat in the United States. Civil liberties and social safety nets are deteriorating rapidly, and the freedom of the press, once a cornerstone of American identity, is also under siege. At the end of empires, these rights tend to erode as elites prioritise their interests over those of the general population. The U.S. is no exception, and these developments paint a bleak picture of the nation's future.
Wealth disparity and the French Revolution parallel
The Gini coefficient, a measure of income inequality, paints a grim picture of the United States. Recent data suggests that the U.S. is teetering dangerously close to levels of disparity not seen since the French Revolution. In the late 18th century, France's aristocracy hoarded wealth while the masses starved, leading to one of history's most violent uprisings. While the guillotine is unlikely to return, the parallels between then and now are hard to ignore.
Today, the wealthiest 1% of Americans control over 40% of the nation's wealth. Meanwhile, wages for the working class have stagnated, and the cost of living continues to soar. Homelessness is rampant, healthcare remains inaccessible to millions, and education is increasingly out of reach for low-income families. This disparity isn't just a moral failing; it's a powder keg. History has shown that extreme inequality is unsustainable. Without systemic reforms, the U.S. risks social unrest on an unprecedented scale.
In a fascinating twist, the temporary ban on TikTok and the resulting surge in downloads of the Chinese app Rednote inadvertently revealed how indoctrinated many Americans have become. Discussions comparing American and Chinese societal structures highlighted stark differences in healthcare, education, and cost of living. For many, it was a wake-up call, underscoring how U.S. governance prioritises corporations and lobbyists over the well-being of its people.
The end of American exceptionalism
Trump's "America First" doctrine signals a retreat from the international stage. This inward turn—marked by trade wars, withdrawal from international agreements, and a general disdain for global cooperation—has left traditional allies disillusioned and adversaries emboldened. While Trump's supporters may champion this as a reclamation of sovereignty, it's increasingly clear that American isolationism is creating a vacuum in global leadership.
Long dependent on U.S. military and economic support, Europe is beginning to chart its course. Initiatives like the European Union's push for strategic autonomy, the bolstering of NATO's European pillar, and the strengthening of economic ties within the continent suggest that Europe is preparing to stand independently. By reducing reliance on the U.S., Europe can redefine itself as a cohesive, influential global power.
The rise of BRICS
As the U.S. retreats, the BRICS nations (Brazil, Russia, India, China, and South Africa) are gaining momentum. These emerging economies represent over 40% of the world's population and a significant share of global GDP. Their rise is not merely an economic phenomenon but a geopolitical shift that promises to balance global influence.
China and India, in particular, are leading the charge. China's Belt and Road Initiative has reshaped infrastructure and trade networks across Asia, Africa, and Europe, while India's burgeoning tech industry positions it as a key player in the 21st-century economy. The BRICS nations are also exploring alternatives to the dollar-dominated financial system, which could undermine U.S. economic hegemony.
For the first time in decades, the unipolar world order dominated by the U.S. gives way to a multipolar landscape. While this transition poses challenges, it offers more equitable global governance opportunities. A world where power is distributed among multiple players has the potential to address global issues—from climate change to poverty—in ways that a U.S.-centric model could not.
Malta's prospects in a changing world order
These global shifts present unique opportunities for Malta. The island has historically thrived by adapting to changing geopolitical landscapes as a small but strategically located nation. The rise of a multipolar world and Europe's push for greater autonomy offer Malta the chance to assert itself as a key player within the Mediterranean region and beyond.
Malta's financial services sector, bolstered by its EU membership, stands to benefit from the shifting balance of power. With U.S. isolationism driving European nations to strengthen their economic ties, Malta can position itself as a hub for trade, investment, and innovation within Europe. Moreover, the rise of BRICS offers new markets for Maltese businesses. By fostering relationships with these emerging powers, Malta can diversify its economic partnerships and reduce dependency on traditional Western markets.
Malta can also excel in the digital economy. As BRICS nations like India and China lead in technology and innovation, Malta's focus on blockchain, fintech, and digital entrepreneurship can create synergies with these global leaders. By embracing a forward-looking approach, Malta can attract investments, build expertise, and cement its reputation as a global innovation hub.
Culturally and diplomatically, Malta's role as a bridge between Europe, North Africa, and the Middle East has become even more significant. As Europe redefines its identity and BRICS challenges the status quo, Malta can leverage its unique position to mediate, collaborate, and influence policies that benefit the region.
The path forward
As the United States grapples with political and economic challenges, the shifting global order presents Europe and Malta with unique opportunities. Moving towards strategic autonomy, Europe can champion democratic values, human rights, and economic innovation, positioning itself as a global leader in a multipolar world.
By leveraging its role within the European Union, Malta can strengthen its financial services, trade, and innovation sectors. Opportunities lie in forging partnerships with emerging powers such as the BRICS nations, diversifying economic ties, and becoming a digital entrepreneurship and technology hub.
While the U.S. faces an uphill battle to reclaim its democratic identity, Europe and nations like Malta have an opportunity to lead by example. Together, they can redefine democracy and governance in the 21st century, ensuring these values remain resilient in a rapidly changing world.
Long live democracy—in whatever form it may take.
Mainstream investments like technology, healthcare, and real estate remain foundational to many portfolios. Investors increasingly look at "out-of-the-box" trends that could redefine industries and generate significant returns. Paul Rostkowski highlights a blend of traditional and unconventional investment driven by innovation, societal shifts, and global economic developments.