This lecture reviews the general political climate in the United States and the major issues debated by candidates for the 1998 Congressional, state and local government elections.

It offers a broad analysis of the mid-term election, highlighting its political impact and underlining the implications for the formulation of US policies. The influence of various factors such as the economy, trade and investment, the end of the Cold War, the current isolationist trend in foreign policy and the Lewinsky case are explored as determinants in the electoral outcome.