Global Governance: Political
and Economic
Subject Govt & Politics - Global Politics
Last edited time 3 April 2025 09:28
The Bretton Woods Conference
towards the end of WW2, the Allies were aware of the economic causes of
the war. a global economic crisis, brought on by the Wall Street Crash
(1929), had led to the rise of extreme parties, including the Nazi Party in
Germany. just as international leaders sought to bring international order to
political affairs with the United Nations, so too did international leaders seek
to bring international order to international affairs
at the Bretton Woods Conference, 44 world leaders aimed to bring about
this international cooperation in the form of an agreed system of rules for
international matters, including world trade; to stabilise world currencies
and reduce wide fluctuations in the value of currencies; prevent a repeat of
the Great Depression that occurred in the 1930s; bolster capitalism against
the rise of communism as a competing economic model in the Soviet Union
in order to meet these aims, the leaders established new international financial
institutions and arrangements. these were:
1. the International Monetary Fund (IMF) - the IMF established the US dollar
as the basis against which all other states’ currencies would be valued,
thereby stabilising world currencies from major fluctuations in their value
2. the International Bank for Reconstruction and Development - (later the
World Bank) would aim to provide a pool of investment for states
3. the General Agreement on Tariffs and Trade (GATT) - (later the World
Trade Organisation) is an international forum where states can make trade
deals and international rules on trade
Global Governance: Political and Economic 1
, although the aims and institutions of the Bretton Woods Conference are still in
existence today, they have been modified. in addition, global cooperation on
economic governance has tended to focus on different areas than those
envisaged by the Bretton Woods Conference
1. poverty / development: the IMF and World Bank have worked together to
ensure the success of the MDGs and SDGs proposed by the UN. the IMF
provide loans, advice, technical assistance in facilitating these goals and
works with the World Bank to produce a Global Monitoring report to ensure
their success. this is an extension of the original work of the IMF
2. free trade: there has been an increase in multilateral trade agreements (EU,
NAFTA - North American Free Trade Agreement, TPP - Trans-Pacific
Partnership, ASEAN - Association of South East Nations) in recent years,
whose terms supersede the terms of the World Trade Organisation. the IMF
and World Bank still have a role to play should member states get into
financial difficulty
3. single currency: the economic debate in the EU in the 1990s focused on
developing a single currency - the Euro. this came into circulation in 2002
and is now the currency of 19 out of 28 EU member states. the recent
Eurozone crisis, in large part brought about by the 2008 global financial
crisis, has meant that the IMF has taken a lead role in stabilising the
economic affairs of member states. it has done this along with the
European Central Bank and the European Commission
in addition to the institutions established by the Bretton Woods Conference,
there have been an increase in the number of actors who are responsible for
economic global governance. these include:
IGOs - principally the IMF and World Bank but also the UN and the WTO. the
UN has taken on an increasingly important role with the UN Development
Programme aiming to help countries to achieve their MDGs and SDGs
intergovernmental forums - such as the group of Seven/ Eight and the
G20. these include some of the world’s most industrialised states and the
biggest economic powers
multi-national corporations (MNCs) - that are privately or publicly owned
companies that operate in many states. these companies have considerable
influence in economic affairs, as can be seen when Nissan struck a secret
Global Governance: Political and Economic 2
, deal with the British government in 2016 to secure favourable trade terms in
the aftermath of the Brexit referendum
multilateral forums - for world leaders, IGOs, business leaders, NGOs and
economists to discuss challenges facing the global economy, such as the
World Economic Forum (WEF)
questions
1. post-WW2
2. world trade, stabilise world currencies, prevent a repeat of Great
Depression, bolster capitalism against rise in communism
3. IMF, World Bank, World Trade Organisation
4.
The United Nations
the only intergovernmental organisation open to all states, set up in 1945
19 member states, with HQ in New York, Geneva, Nairobi and Vienna
a global forum for discussing and finding solutions to current global
challenges
examples of challenge include climate change, terrorism, food production,
human rights, conflict, poverty and healthcare
each member states agrees to uphold the terms of the 1945 UN Charter,
which hopes to achieve this through states practising tolerance and
cooperation to maintain international peace and security, avoid military
conflict and using international means for economic and social
advancement
why the caution over the UN?
-the notion of a world government makes some fearful of undermining the
Westphalian system, where states lose their autonomy and can be compelled to
act
-it reduces self-determination, and the right of a nation to govern itself
Global Governance: Political and Economic 3
and Economic
Subject Govt & Politics - Global Politics
Last edited time 3 April 2025 09:28
The Bretton Woods Conference
towards the end of WW2, the Allies were aware of the economic causes of
the war. a global economic crisis, brought on by the Wall Street Crash
(1929), had led to the rise of extreme parties, including the Nazi Party in
Germany. just as international leaders sought to bring international order to
political affairs with the United Nations, so too did international leaders seek
to bring international order to international affairs
at the Bretton Woods Conference, 44 world leaders aimed to bring about
this international cooperation in the form of an agreed system of rules for
international matters, including world trade; to stabilise world currencies
and reduce wide fluctuations in the value of currencies; prevent a repeat of
the Great Depression that occurred in the 1930s; bolster capitalism against
the rise of communism as a competing economic model in the Soviet Union
in order to meet these aims, the leaders established new international financial
institutions and arrangements. these were:
1. the International Monetary Fund (IMF) - the IMF established the US dollar
as the basis against which all other states’ currencies would be valued,
thereby stabilising world currencies from major fluctuations in their value
2. the International Bank for Reconstruction and Development - (later the
World Bank) would aim to provide a pool of investment for states
3. the General Agreement on Tariffs and Trade (GATT) - (later the World
Trade Organisation) is an international forum where states can make trade
deals and international rules on trade
Global Governance: Political and Economic 1
, although the aims and institutions of the Bretton Woods Conference are still in
existence today, they have been modified. in addition, global cooperation on
economic governance has tended to focus on different areas than those
envisaged by the Bretton Woods Conference
1. poverty / development: the IMF and World Bank have worked together to
ensure the success of the MDGs and SDGs proposed by the UN. the IMF
provide loans, advice, technical assistance in facilitating these goals and
works with the World Bank to produce a Global Monitoring report to ensure
their success. this is an extension of the original work of the IMF
2. free trade: there has been an increase in multilateral trade agreements (EU,
NAFTA - North American Free Trade Agreement, TPP - Trans-Pacific
Partnership, ASEAN - Association of South East Nations) in recent years,
whose terms supersede the terms of the World Trade Organisation. the IMF
and World Bank still have a role to play should member states get into
financial difficulty
3. single currency: the economic debate in the EU in the 1990s focused on
developing a single currency - the Euro. this came into circulation in 2002
and is now the currency of 19 out of 28 EU member states. the recent
Eurozone crisis, in large part brought about by the 2008 global financial
crisis, has meant that the IMF has taken a lead role in stabilising the
economic affairs of member states. it has done this along with the
European Central Bank and the European Commission
in addition to the institutions established by the Bretton Woods Conference,
there have been an increase in the number of actors who are responsible for
economic global governance. these include:
IGOs - principally the IMF and World Bank but also the UN and the WTO. the
UN has taken on an increasingly important role with the UN Development
Programme aiming to help countries to achieve their MDGs and SDGs
intergovernmental forums - such as the group of Seven/ Eight and the
G20. these include some of the world’s most industrialised states and the
biggest economic powers
multi-national corporations (MNCs) - that are privately or publicly owned
companies that operate in many states. these companies have considerable
influence in economic affairs, as can be seen when Nissan struck a secret
Global Governance: Political and Economic 2
, deal with the British government in 2016 to secure favourable trade terms in
the aftermath of the Brexit referendum
multilateral forums - for world leaders, IGOs, business leaders, NGOs and
economists to discuss challenges facing the global economy, such as the
World Economic Forum (WEF)
questions
1. post-WW2
2. world trade, stabilise world currencies, prevent a repeat of Great
Depression, bolster capitalism against rise in communism
3. IMF, World Bank, World Trade Organisation
4.
The United Nations
the only intergovernmental organisation open to all states, set up in 1945
19 member states, with HQ in New York, Geneva, Nairobi and Vienna
a global forum for discussing and finding solutions to current global
challenges
examples of challenge include climate change, terrorism, food production,
human rights, conflict, poverty and healthcare
each member states agrees to uphold the terms of the 1945 UN Charter,
which hopes to achieve this through states practising tolerance and
cooperation to maintain international peace and security, avoid military
conflict and using international means for economic and social
advancement
why the caution over the UN?
-the notion of a world government makes some fearful of undermining the
Westphalian system, where states lose their autonomy and can be compelled to
act
-it reduces self-determination, and the right of a nation to govern itself
Global Governance: Political and Economic 3
