This chapter demonstrates how the organizational and policymaking shifts influenced the authority of actors in global economic governance. This indicates that decentralizing strategic, political, and cognitive authority has significantly influenced actor hierarchies in the global economic architecture, especially since the GFC. This aspect of decentralizing authority leading to destabilizing actor hierarchies has been particularly significant for global development and financial governance, principally since the GFC. The chapter indicates how these effects were constituted through the strategic, political, and cognitive agency of actors. On the question of whether these shifts in the global economic architecture constituted a ‘post-Western’ world, while there has been what might be called a partial rebalancing due to decentralizing authority, nevertheless, the leading Western states, especially the G7, remain highly influential.
This is a preview of subscription content, access via your institution.
The May 2017 Taormina G7 Summit was widely considered damaging for American foreign relations and global authority. The Trump administration was isolated on climate change, and the president’s Twitter use exacerbated tensions with Chancellor Merkel (see Henley 2017; Irish and Balmer 2017; Osbourne 2017).
Acharya, A. (2014). The end of American world order. Cambridge: Polity Press.
ADB [Asian Development Bank]. (2016, May 2). ADB, AIIB sign MOU to strengthen cooperation for sustainable growth. ADB News Release. https://www.adb.org/news/adb-aiib-sign-mou-strengthen-cooperation-sustainable-growth. Accessed 27 June 2017.
Blanchard, O. (2016). Currency wars, coordination, and capital controls. National Bureau of Economic Research (NBER) (Working paper 22388). http://www.nber.org/papers/w22388.pdf. Accessed 27 June 2017.
Bremmer, I. (2012). Every nation for itself: Winners and losers in a g-zero world. New York: Portfolio.
Buzdugan, S., & Payne, A. (2016). The long battle for global governance. London/New York: Routledge.
Cislo, C., & Hays, K. (2017, May 3). ADB and AIIB cooperate on lending more than compete, says Nakao. Bloomberg. https://www.bloomberg.com/news/articles/2017-05-03/adb-cooperates-more-than-competes-with-aiib-says-adb-s-nakao. Accessed 27 June 2017.
Conway, E. (2014). The summit: The biggest battle of the second world war—Fought behind closed doors. London: Little, Brown.
Cooper, A. F. (2008). Executive but expansive: The L20 as a project of ‘new’ multilateralism and ‘new’ regionalism. In A. F. Cooper, C. W. Hughes, & P. de Lombaerde (Eds.), Regionalisation and global governance: The taming of globalisation? (pp. 249–264). Abingdon: Routledge.
De Ville, F., & Siles-Brügge, G. (2015). The transatlantic trade and investment partnership and the role of computable general equilibrium modelling: An exercise in ‘managing fictional expectations’. New Political Economy, 20(5), 653–678.
Donnan, S., & Sevastopulo, D. (2017, February 26). Trump team looks to bypass WTO dispute system. Financial Times. https://www.ft.com/content/7bb991e4-fc38-11e6-96f8-3700c5664d30. Accessed 27 June 2017.
Economy, E. C. (2014, November/December). China’s imperial president: Xi Jinping tightens his grip. Foreign Affairs, pp. 80–91. https://www.foreignaffairs.com/articles/china/2014-10-20/chinas-imperial-president. Accessed 27 June 2017.
Eichengreen, B., Park, D., & Shin, K. (2013). Growth slowdowns redux: New evidence on the middle-income trap. National Bureau of Economic Research (NBER), working paper series (Working paper 18673). http://www.nber.org/papers/w18673. Accessed 27 June 2017.
Finnemore, M., & Sikkink, K. (1998). International norm dynamics and political change. International Organization, 52(4), 887–917.
Foroohar, R. (2015, November 10). Why the mighty BRIC nations have finally broken. Time. http://time.com/4106094/goldman-sachs-brics/. Accessed 27 June 2017.
Garcia-Duran, P., & Eliasson, L. J. (2017). The public debate over transatlantic trade and investment partnership and its underlying assumptions. Journal of World Trade, 51(1), 23–42.
Giddens, A. (2002). Runaway world: How globalization is reshaping our lives. London: Profile Books.
Gros, D. (2017, April 11). Calling the protectionists’ bluff. Project Syndicate. https://www.project-syndicate.org/commentary/trump-protectionist-false-alarm-by-daniel-gros-2017-04. Accessed 27 June 2017.
Hall, P. A. (1989). The political power of economic ideas: Keynesianism across nations. Princeton: Princeton University Press.
Helleiner, E. (2014). The forgotten foundations of Bretton Woods: International development and the making of the postwar order. Ithaca/London: Cornell University Press.
Helleiner, E. (2016a). Finance. In A. Acharya (Ed.), Why govern? Rethinking demand and progress in global governance (pp. 174–191). Cambridge: Cambridge University Press.
Helleiner, E. (2016b). Legacies of the 2008 crisis for global financial governance. Global Summitry, 2(1), 1–12.
Henley, J. (2017, May 28). Angela Merkel: EU cannot completely rely on US and Britain any more. Guardian. https://www.theguardian.com/world/2017/may/28/merkel-says-eu-cannot-completely-rely-on-us-and-britain-any-more-g7-talks. Accessed 27 June 2017.
Higgott, R. (2016). Regional worlds, regional institutions: Towards the regional economic institutionalisation of east Asia? CSGR (Working paper no. 280/16). Centre for the Study of Globalisation and Regionalisation, University of Warwick. www.warwick.ac.uk/csgr/papers/280-16.pdf. Accessed 27 June 2017.
Hirsh, M. (2002, September/October). Bush and the world. Foreign Affairs. https://www.foreignaffairs.com/articles/united-states/2002-09-01/bush-and-world. Accessed 27 June 2017.
Hudson, V. M. (2005). Foreign policy analysis: Actor-specific theory and the ground of international relations. Foreign Policy Analysis, 1, 1–30.
Ikenberry, G. J. (2008). The rise of China and the future of the west: Can the liberal system survive? Foreign Affairs, 87(1), 23–37.
Ikenberry, G. J. (2011). Liberal leviathan: The origins, crisis, and transformation of the American world order. Princeton: Princeton University Press.
IMF. (2016a, October 7). Managing an inclusive transition for the global economy. IMF News Article/Speech. http://www.imf.org/en/news/articles/2016/10/07/am16-sp100716-managing-an-inclusive-transition-for-the-global-economy. Accessed 27 June 2017.
IMF. (2016b). Germany 2016 Article IV consultation. Press release; staff report; and Statement by the alternate executive director for Germany. IMF Country Report No. 16/202, June. http://www.imf.org/external/pubs/ft/scr/2016/cr16202.pdf. Accessed 27 June 2017.
Irish, J., & Balmer, C. (2017, May 27). G7 leaders divided on climate change, closer on trade issues. Reuters. http://www.reuters.com/article/us-g7-summit-idUSKBN18L2ZU. Accessed 27 June 2017.
Japan Times. (2017, May 12). China-led AIIB head Jin sees opportunities for cooperation with ADB. Japan Times. http://www.japantimes.co.jp/news/2017/05/12/business/china-led-aiib-head-jin-sees-opportunities-cooperation-adb/#.WUKiIhPytE5. Accessed 27 June 2017.
Joffe, J. (2009). The default power: The false prophecy of America’s decline. Foreign Affairs, 88(5), 21–35.
Jones, C., & Fleming, S. (2017, March 18). G20 drops vow to resist all forms of protectionism. Financial Times. https://www.ft.com/content/241cdf2a-0be9-11e7-a88c-50ba212dce4d?mhq5j=e1. Accessed 27 June 2017.
Kajimoto, T. (2017, May 4). ADB chief seeks to cooperate, not compete, with China-led OBOR, AIIB. Reuters. http://www.reuters.com/article/us-adb-asia-nakao-idUSKBN1800AS. Accessed 27 June 2017.
Kiely, R. (2015). The BRICs, US ‘decline’ and global transformations. Basingstoke: Palgrave Macmillan.
Koranyi, B., & Heller, G. (2017, March 18). G20 financial leaders acquiesce to U.S., drop free trade pledge. Reuters. http://www.reuters.com/article/us-g20-germany-trade-idUSKBN16P0FN. Accessed 27 June 2017.
Kotzian, P., & Kohler-Koch, B. (2015). Holding international governance to account: Do civil society organizations have a chance to exert accountability? Journal of International Organizations Studies, 6(2), 5–26.
Krauthammer, C. (1990). The unipolar moment. Foreign Affairs: America and the World, 70(1), 23–33.
Krauthammer, C. (2002). The unipolar moment revisited. The National Interest, Winter 2002–03.
Krugman, P. (1995). Dutch tulips and emerging markets: Another bubble bursts. Foreign Affairs, 74(4), 28–44.
Layne, C. (2012). This time it’s real: The end of unipolarity and the pax Americana. International Studies Quarterly, 56(1), 203–213.
Leffler, M. P. (2005). 9/11 and American foreign policy. Diplomatic History, 29(3), 395–413.
Lin, J. Y. (2010). New structural economics: A framework for rethinking development. World Bank policy research working paper 5197. Washington, DC: World Bank.
Luckhurst, J. (2016). The G20’s growing political and economic challenges. Global Summitry: Politics, Economics, and Law in International Governance, 2(2), 161–179.
Mearsheimer, J. J. (1994). The false promise of international institutions. International Security, 19(3), 5–49.
Naím, M. (2000). Fads and fashion in economic reforms: Washington consensus or Washington confusion? Third World Quarterly, 21(3), 505–528.
Naím, M. (2002, October 28). The Washington consensus: A damaged brand. Financial Times. http://carnegieendowment.org/2002/10/28/washington-consensus-damaged-brand-pub-1114. Accessed 27 June 2017.
Nye, J. S. (2004, May/June). The decline of America’s soft power. Foreign Affairs, 83. http://heinonline.org/HOL/LandingPage?handle=hein.journals/fora83&div=43&id=&page=. Accessed 27 June 2017.
Ohmae, K. (1990). The borderless world: Power and strategy in the interlinked economy. London/New York: Collins.
Ohmae, K. (1995). The end of the nation state. London: HarperCollins.
Osbourne, S. (2017, May 28). Angela Merkel warns Europe and the US are no longer reliable partners. Independent. http://www.independent.ie/world-news/europe/angela-merkel-warns-europe-and-the-us-are-no-longer-reliable-partners-35764237.html. Accessed 27 June 2017.
Rodrik, D. (2006). Goodbye Washington consensus, hello Washington confusion? Journal of Economic Literature, 44(4), 973–987.
Rogoff, K. (2002, July 2). An open letter to Joseph Stiglitz, by Kenneth Rogoff, economic counsellor and director of the research department, IMF. IMF views and commentaries. https://www.imf.org/en/News/Articles/2015/09/28/04/54/vc070202. Accessed 27 June 2017.
Rogoff, K. (2003, February 10). The IMF strikes back. IMF views and commentaries. https://www.imf.org/en/News/Articles/2015/09/28/04/54/vc021003. Accessed 27 June 2017.
Ruggie, J. G. (1982). International regimes, transactions, and change: Embedded liberalism in the postwar economic order. International Organization, 36(2), 379–415.
Schirm, S. A. (2013). Global politics are domestic politics: A societal approach to divergence in the G20. Review of International Studies, 39(3), 685–706.
Shambaugh, D. (2016). China’s future. Cambridge: Polity Press.
Sohn, I. (2005). Asian financial cooperation: The problem of legitimacy in global financial governance. Global Governance, 11(4), 487–504.
Steil, B. (2013). The battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the making of a new world order. Princeton: Princeton University Press.
Stiglitz, J. E. (2001, Summer). Failure of the fund. Rethinking the IMF response. Harvard International Review, 23(2), 14–18. https://www.jstor.org/stable/42762700?seq=1#fndtn-page_scan_tab_contents. Accessed 27 June 2017.
Stiglitz, J. E. (2002). Participation and development: Perspectives from the comprehensive development paradigm. Review of Development Economics, 6(2), 163–182.
Strauss-Kahn, D. (2010, December 8). The triple comeback—The impact of the financial crisis on global economic governance. Geneva. http://www.unitar.org/gls/sites/unitar.org.gls/files/Mr_Strauss_Kahn_speech%20_English.pdf. Accessed 27 June 2017.
Stuenkel, O. (2016). Post-Western world: How emerging powers are remaking global order. Cambridge: Polity Press.
Sussangkarn, C. (2010, July). The Chiang Mai initiative multilateralization: Origin, development and outlook. ADBI (Working paper series, no. 230). https://www.adb.org/sites/default/files/publication/156085/adbi-wp230.pdf. Accessed 27 June 2017.
Suzuki, S. (2015). Will the AIIB trigger off a new round of rivalry in economic diplomacy between China and Japan? Centre for the Study of Globalisation and Regionalisation (CSGR) (Working paper 279/15). Warwick: University of Warwick.
Wade, R. H. (1996). Japan, the World Bank, and the art of paradigm maintenance: The East Asian miracle in political perspective. New Left Review, 217, 3–36. http://search.proquest.com/openview/9b2833c24295ad4f16efc66638b57f44/1?pq-origsite=gscholar&cbl=1819646. Accessed 27 June 2017.
Walt, S. M. (2011, November/December). The end of the American era. The National Interest, 116, 6–17.
Waltz, K. N. (2000). Structural realism after the Cold War. International Security, 25(1), 5–41.
Williamson, J. (2002, November 6). Did the Washington consensus fail? Peterson Institute for International Economics, 169. https://piie.com/commentary/speeches-papers/did-washington-consensus-fail. Accessed 27 June 2017.
World Bank. (2017, April 23). World Bank and AIIB sign cooperation framework. Press release. http://www.worldbank.org/en/news/press-release/2017/04/23/world-bank-and-aiib-sign-cooperation-framework. Accessed 27 June 2017.
Xi, J. (2017, January 17). President Xi’s speech to Davos in full. Davos: World Economic Forum. https://www.weforum.org/agenda/2017/01/full-text-of-xi-jinping-keynote-at-the-world-economic-forum. Accessed 25 Jan 2017.
Zakaria, F. (2008). The post-American world. New York: W. W. Norton & Company.
Zhou, X. (2009, March 23). Reform the international monetary system. BIS Review, 41. http://www.bis.org/review/r090402c.pdf. Accessed 27 June 2017.
Rights and permissions
© 2018 The Author(s)
About this chapter
Cite this chapter
Luckhurst, J. (2018). Shifting Authority of Actors in Global Economic Governance. In: The Shifting Global Economic Architecture. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-63157-8_7
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-63156-1
Online ISBN: 978-3-319-63157-8
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)