Abstract

Australia and the United States have been extremely close allies since World War II. The engagements in Afghanistan and Iraq have continued this tradition. Yet even before the bombings in Bali and the confrontation with Iraq, an important debate about the costs and benefits of the relationship with the United States was underway in Australia. At a number of levels—economic, political, and even strategic—increasing numbers of Australians were critically reassessing the relationship and questioning the supposed benefits. Recent events have accelerated this process and thrown the relationship into even starker relief. This paper argues that the increasingly unilateral nature of American economic and strategic policy is imposing major costs on even its most loyal allies, a situation that threatens to undermine the legitimacy of, and support for, U.S. hegemony.

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