It was only in the aftermath of the Second World War that it became apparent just
how powerful the US had become. Potential European rivals were either defeated like
Germany, or left permanently weakened, like the former hegemon Britain. What had
been unclear during the inter-war period was now unambiguous: the US was the most
powerful country in the world. Its power was not unrivalled, however. The
distinguishing characteristic of the first phase of American hegemony was that it
occurred within the overarching context of the Cold War and the concomitant,
implacable rivalry with the former Soviet Union. This overwhelming strategic
imperative, and what was then the very real concern with Soviet expansion,
powerfully influenced the strategic orientation of the US and gave a particular cast to
both its military and economic policies. Indeed, American hegemony of this period
cannot be understood unless both aspects of its overall policy position are considered.