Whither Global Economic Cooperation?
The financial crisis of 2008 and beyond proved just how interdependent the world now is and the need for strong global cooperation. However, in key areas of global economic governance, such as finance, world trade, and development aid, regionalization is the overwhelming trend. Non-Western regions and states are increasingly attempting to bypass the institutions of global economic governance. They address economic problems increasingly through new channels, where the dominant position of the West is diffused. This paper seeks to examine the key features of a diffusing world order and how it will influence global public policies in a wider context. It argues that the popular juxtaposition of “regionalism vs. global multilateralism” is not a useful framework to look at world affairs. It also argues for a more comprehensive approach that avoids the pitfalls of both the thesis of multilateral gridlock and a singular treatment of every area of international politics.