The Divergence of Global Economic Governance Strategies

Abstract

The globalization of the world economy since the 1970s is increasingly integrating national economies and blurring the distinction between internal and external economic developments. This process has promoted growth and competition, but was overshadowed by severe financial crises such as in Asia and Mexico, which led to recessions in the directly affected countries and were contagious to the respective regions, to world trade and stock markets. These crises suggest the need for an improved political management of the world economy as existing mechanisms seem not to perform adequately. Thus, global economic governance (GEG), defined as the multilateral, rule-based management of the world economy by public and private actors, is both a subject for empirical analysis and a normative, prescriptive debate on the future of the political management of globalization.