The Shifting Global Economic Architecture : Decentralizing Authority in Contemporary Global Governance

This book analyzes the shifting global economic architecture, indicating the decentralizing authority in global economic governance since the Cold War and, especially, following the 2008-09 global financial crisis. The author examines recent adjustments to the organizational framework, contestation of policy principles, norms, and practices, and destabilizing actor hierarchies, particularly in global macroeconomic, trade, and development governance. The study's 'analytical eclecticism' includes a core constructivist IR approach, but also incorporates insights from several international relations theories as well as political and economic theory. The book develops a unique 'analytical matrix', which analyzes effects of strategic, political, and cognitive authority in the organizational, policy, and actor contexts of the global economic architecture. It concludes that, despite concerns about potential fragmentation, decentralizing authority has increased the integration of leading developing states and new actors in contemporary global economic governance. Jonathan Luckhurst is Associate Professor of International Relations at the Center for North American Studies of the Pacific Studies Department, University of Guadalajara, Mexico Acknowledgments 5 Contents 7 Abbreviations 9 List of Figures 12 List of Table 14 Chapter 1: Introduction: The Shifting Global Economic Architecture 15 The Shifting Global Economic Architecture 16 Analytical Approach 19 Analyzing `Authority ́ in Global Economic Governance 20 Perspectives on Global Governance and Global Economic Governance 24 Overview of the Chapters 28 References 34 Part I: Shifting Organizational Framework 40 Chapter 2: Global Economic Governance Since the Twentieth Century 41 Bretton Woods and the Origins of Global Economic Governance 42 Global Economic Governance During the Cold War 45 Global Economic Governance After the Cold War 50 Decentralizing Global Economic Governance Through Regional Integration 53 Global Economic Governance in the Twenty-First Century 56 Decentralizing Global Economic Governance Through Non-state Involvement 59 Conclusion 63 References 64 Chapter 3: Global Economic Governance Since the Global Financial Crisis 69 Decentralizing Authority Through IFIs and Formal Cooperation 70 Decentralizing Authority Through Informal Fora 73 Socialization Effects from Shifting Authority in Global Economic Governance 77 Financial Rights, Responsibilities, and Authority in Global Economic Governance 81 Conclusion 85 References 87 Part II: Contesting Policy Principles, Norms, and Practices 93 Chapter 4: From Deregulation and Market Efficiency to Sustainable and Inclusive Growth 94 Historical Context of Macroeconomic Policy Contestation 95 GFC Effects on Macroeconomic Policy Contestation 99 Financial-Sector Policy Contestation 103 Fiscal Policy Contestation 108 Monetary Policy Contestation and `Currency Wars ́ 112 Conclusion 115 References 116 Chapter 5: Globalization, Inequality, and Challenges to Free Trade 128 Social Constructions and Normative Contestation of `Globalization ́ 129 Political Scapegoating and Genuine Concerns About the Effects of Free Trade 133 The `Populist ́ Challenge to Conventional Trade Policies and Global Governance 144 Policy Effects of Decentralizing Authority in International Trade 148 Effects of Post-GFC Policy Shifts on the Global Economic Architecture 151 Conclusion 153 References 155 Chapter 6: The Growing Sustainable Development Consensus 165 The Bretton Woods Institutions: Washington to Post-Washington Consensus? 166 Domestic Policy Responses to the Asian Financial Crisis 169 Sustainable Development Lessons from the Asia-Pacific Region 173 Sustainable Development Policies of the G20 and New IFIs 177 `Western ́ Influence on Sustainable Development Since the GFC 181 Conclusion 184 References 186 Part III: Destabilizing Actor Hierarchies 196 Chapter 7: Shifting Authority of Actors in Global Economic Governance 197 Assessment of the Organizational Evidence 198 Since the GFC 201 Assessment of the Policymaking Evidence 203 Macroeconomics, Finance, Fiscal, and Monetary Issues 204 Globalization, Inequality, and International Trade 206 Sustainable Development 209 Authority and Agency in Global Economic Governance 212 A `Post-Western ́ World? 214 Conclusion 219 References 221 Chapter 8: Fragmentation or Integration of Global Economic Governance 227 Fragmentation or Integration Through Strategic Authority Shifts 228 Fragmentation or Integration Through Political Authority Shifts 233 Fragmentation or Integration Through Cognitive Authority Shifts 237 Decentralizing Rather than Weakening Global Economic Governance 242 Beyond the Narrative of `the West Versus the Rest ́ 245 Conclusion 247 References 249 Chapter 9: Conclusion: Decentralizing Global Economic Governance 255 Theoretical Insights 256 Important Historical and Recent Developments 258 Decentralizing Strategic, Political, and Cognitive Authority 260 Uncertainty, Challenges, and Opportunities 263 References 265 References 267 Index 309 This book analyzes the shifting global economic architecture, indicating the decentralizing authority in global economic governance since the Cold War and, especially, following the 2008-09 global financial crisis. The author examines recent adjustments to the organizational framework, contestation of policy principles, norms, and practices, and destabilizing actor hierarchies, particularly in global macroeconomic, trade, and development governance. The study's ‘analytical eclecticism’ includes a core constructivist IR approach, but also incorporates insights from several international relations theories as well as political and economic theory. The book develops a unique ‘analytical matrix’, which analyzes effects of strategic, political, and cognitive authority in the organizational, policy, and actor contexts of the global economic architecture. It concludes that, despite concerns about potential fragmentation, decentralizing authority has increased the integration of leading developing states and new actors in contemporary global economic governance.-- Provided by Publisher Front Matter ....Pages i-xv Introduction: The Shifting Global Economic Architecture (Jonathan Luckhurst)....Pages 1-25 Front Matter ....Pages 27-27 Global Economic Governance Since the Twentieth Century (Jonathan Luckhurst)....Pages 29-56 Global Economic Governance Since the Global Financial Crisis (Jonathan Luckhurst)....Pages 57-80 Front Matter ....Pages 81-81 From Deregulation and Market Efficiency to Sustainable and Inclusive Growth (Jonathan Luckhurst)....Pages 83-116 Globalization, Inequality, and Challenges to Free Trade (Jonathan Luckhurst)....Pages 117-153 The Growing Sustainable Development Consensus (Jonathan Luckhurst)....Pages 155-185 Front Matter ....Pages 187-187 Shifting Authority of Actors in Global Economic Governance (Jonathan Luckhurst)....Pages 189-218 Fragmentation or Integration of Global Economic Governance (Jonathan Luckhurst)....Pages 219-246 Conclusion: Decentralizing Global Economic Governance (Jonathan Luckhurst)....Pages 247-258 Back Matter ....Pages 259-306 This text analyzes the shifting global economic architecture, indicating the decentralizing authority in global economic governance since the Cold War and, especially, following the 2008-09 global financial crisis. The author examines recent adjustments to the organizational framework, contestation of policy principles, norms, and practices, and destabilizing actor hierarchies, particularly in global macroeconomic, trade, and development governance. The study's 'analytical eclecticism' includes a core constructivist IR approach, but also incorporates insights from several international relations theories as well as political and economic theory. The book develops a unique 'analytical matrix', which analyzes effects of strategic, political, and cognitive authority in the organizational, policy, and actor contexts of the global economic architecture