Since the onset of the current economic crisis, a global debate on the regulation of the new economic reality has intensified. Starting with three basic assumptions (the Westphalian system of states, national policies and its hard-law norms), the paper will examine the activities of the Group of 20 towards developing a new global economic regime, from the aspects of the regime theory and global governance concepts. Upon analyzing three distinct models of transnational governance, the paper will show the relevance of soft law in successful implementation of new global norms. INTRODUCTION The current economic and financial crisis has resulted, inter alia, in various ideas, plans and proposals how to revise the existing structure of or devise a new, global economic management model. Despite of a plethora of the ideas, stemming from multiple and diverse interests, not many of them have been elaborated afterwards. However, most of the proposals converge around two basic dilemmas: how to create a governing /managing structure and norms for the global economy, and how to devise a system to have the agreed norms implemented in practice. Should this integrated and interconnected world be regulated by one global authority or a group of national authorities who would agree on basic regulatory aims and principles – thus avoiding or better managing future crisis? This paper will examine the efforts of international community, exemplified by the Group of 20 (G20), since the beginning of the crisis in order to challenge three basic but common pillars of the traditional governance concepts. First, the Westphalian order and system of states still dominates both practice and theory of international relations. So, the issue is whether the nation st... ... middle of paper ... ...ss of the European Community Law: Institutions, Processes, Tools and Techniques”, in: Terence Daintith (ed.), Implementing EC Law in the UK: structures for indirect rule, Chichester, West Sussex ; New York : J. Wiley, 1995. Sorensen, Georg, “What Kind of World Order? The International System in the New Millennium”, Cooperation and Conflict, 41, 2006, p. 343-363. Trubek, David, M. Cottrell, and Mark Nance, “Soft Law Hard Law and European Integration: Toward a Theory of Hybridity”, University of Wisconsin Legal Studies Paper, No. 1002, 2005. Underhill, Geoffrey and Xiaoke Zhang, “Norms, Legitimacy, and Global Financial Governance”, WEF 0013, 2006, London: University of London. Vuletić, Dominik, “Pravni aspekti Lisabonske strategije i budući izazovi-razrada s motrišta pravne prirode mekog prava (soft law)”, Zbornik Pravnog fakulteta u Zagrebu, 3/2011, Zagreb, 2011.
...t within the laws dictated by Neoliberalism, but providing protection to nations, regions, and people from excessive fluctuations in trade and financial activity. "The essence of the after-Fordist regulatory problem is the age-old one of countering the destructive effects of competition." Accumulation must also resolve problems of environmental sustainability, as natural resources continue to dwindle at ever-increasing rates. Indeed, it would be foolish to predict how a global capitalist organization and mode of accumulation will look in twenty years – capitalism continues to transform itself in surprising ways – nevertheless, Regulation Theory is useful is in cautioning against the further ascendancy of Neoliberalism. Indeed, changes to the international regime of accumulation and mode of social protection must occur to realize a sustainable existence for all.
New York: Oxford University Press, 2005. Shiraev, Eric B., and Vladislav M. Zubok. International Relations. New York: Oxford University Press, 2014. Silver, Larry.
Mearsheimer J. J. (2010). Structural Realism. International Relations Thoeries, Discipline and Diversity (Second Edition), p.77-94
New York: Columbia University Press, 2001. Wendt, Alexander. A. “Constructing International Politics.” International Security.
Frieden, Jeffry A., David A. Lake, and Kenneth A. Schultz. World Politics. New York: W.W. Norton &, 2013. Print.
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Balaam, David. Introduction to International Political Economy, Upper Saddle River, New Jersey, Pearson Education, 2005.
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Whenever world politics is mentioned, the state that appears to be at the apex of affairs is the United States of America, although some will argue that it isn’t. It is paramount we know that the international system is shaped by certain defining events that has lead to some significant changes, particularly those connected with different chapters of violence. Certainly, the world wars of the twentieth century and the more recent war on terror must be included as defining moments. The warning of brute force on a potentially large scale also highlights the vigorousness of the cold war period, which dominated world politics within an interval of four decades. The practice of international relations (IR) was introduced out of a need to discuss the causes of war and the different conditions for calm in the wake of the first world war, and it is relevant we know that this has remained a crucial focus ever since. However, violence is not the only factor capable of causing interruption in the international system. Economic elements also have a remarkable impact. The great depression that happened in the 1920s, and the global financial crises of the contemporary period can be used as examples. Another concurrent problem concerns the environment, with the human climate being one among different number of important concerns for the continuing future of humankind and the planet in general.
For example, states remain the key negotiators and entities in major global governance entities. Additionally, states retain compulsory power over their subjects or constituents, a form of control that new players in global governments have generally not obtained. Globalization has led to several substantial changes in global governance and the entities participating in governance activities. First, over the past 70 years, an increasing number of nations have signed onto international agreements. For example, when the Global Agreement on Tariffs and Trade (GATT) was created in 1947, it had no institutional structure; by 2009, though, more than 150 nations – accounting for 97% of world trade – were members of GATT’s successor, the World Trade Organization (Fidler, 2009).
International institutions, such as the IMF, the World Bank, and the GATT/WTO, have shaped the global political economy for decades and continue to do so now. For this paper, I will be assessing, from the realist perspective, how the role of the World Bank in the global political economy has changed over the past four decades. The main objective is to indicate that throughout the past four decades, the United States has had a distinct influence, using its hegemonic power, on the World Bank and it’s role in the global political economy. From the origin of the World Bank, we can see that the United States, to an extent, has influenced and continues to influence the decisions made within the Bank. This type of influence ultimately affects how the World Bank functions within a global political economy.
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Global governance institutions, from the International Monetary Fund to the World Trade Organization, are little loved. They are often perceived as bastions of sclerotic mediocrity at best and outright corruption at worst. In the wake of the 2008 financial crash, Daniel W. Drezner, like so many others, observed the smoking ruins of the global economy and wondered the extent to which global governance institutions have affected the post-recession, international system.
States cooperate to create international institutions with the goal of avoiding market failures and creating trust. The peaceful drive by self-interested economic behavior permeates international relations. The International Political Economy, stems from the neoliberal alternative of International Relations theory which emerged in the 1980’s through the writings of Keohane (1984) who emphasised the economic sphere and fused politics and economics in order to go beyond the limiting security obsession.
Baylis, Smith and Patricia Owens. 2014. The 'Standard' of the 'Standard'. The globalization of world politics: An introduction to international relations. London.