Global Economic Governance

Abstract

The remarkable growth in the extent of international economic integration in recent decades has far outpaced the existing capacity for global economic governance. The intensification of globalisation has increased the inadequacy of the institutions of global economic governance and their policies. This became especially apparent during the Global Financial Crisis, also known as the Great Recession, which began most notably in 2008 and from which the destructive effects still continue. The crisis showed that contemporary national and international economic institutions could not achieve stability let alone other goals. In fact, some of the policies that multilateral economic institutions have been promoting over the last thirty years contributed to the contagion which spread globally from the US where the crisis began. The frequency and speed with which economic problems in one country have spilled over into others indicates the need to strengthen international institutions sufficiently to ensure that they are capable of taking swift, effective corrective action…