This chapter addresses the intersection of international law and international politics as it relates to global trade. To study global economic governance is to study international law, international relations, and international political economy (IPE) all at once. The chapter begins with a brief introduction to IPE, a discipline which seeks to understand the workings of the global economy in its political context. It examines the relationship between economic globalization and state sovereignty, before turning to the construction of the postwar global economic order, with a focus on the Bretton Woods institutions. The postwar global economic order has often been described as ‘liberal’ by virtue of its underlying assumptions and the ideological convictions of its framers. Importantly, the postwar liberal order was built by, and for, the developed countries of the Global North-a fact that has informed critiques emanating from the developing countries of the Global South. The chapter then assesses global trade governance, analysing the structure, powers, and role of the World Trade Organization.
Trends and Challenges
Mark A. Pollack, Helen Wallace, and Alasdair R. Young
This chapter examines trends and challenges in European Union policy-making during times of crisis. It first considers the main trends in EU policy-making that emerge from policy case studies, including experimentation with new modes of policy-making, often in conjunction with more established modes, leading to hybridization; renegotiation of the role of the member states (and their domestic institutions) in the EU policy process; and erosion of traditional boundaries between internal and external policies. The chapter proceeds by discussing the issue of national governance as well as the interaction between European and global governance. Finally, it explores how the EU has responded to the challenges of coping with enlargement from fifteen to twenty-eight member states, digesting the reforms adopted following the implementation of the Treaty of Lisbon, and responding to the economic dislocation associated with the global financial crisis.
This chapter explores important issues in the conduct of global trade and global finance. It asks why the global economy is so good at allowing some people to own untold riches while many others have too little money to meet basic subsistence needs, and whether the world would be better or worse off without the institutions of global economic governance. After discussing the globalization of trade and finance, the chapter considers the regulation of global trade and global finance. Two case studies are presented, one dealing with the ongoing trade war between the US and China and the other with the effect of tax havens on overseas aid budgets. There is also an Opposing Opinions box that addresses the question of how far the institutions of global economic governance currently go to work specifically to the benefit of developing countries.
This chapter examines the position of the European Union in the global political economy (GPE). It also considers key dimensions of change and development as well as the EU's impact on the operation of the contemporary GPE. To this end, the chapter discusses central ideas in international political economy and relates these to the growth of the EU. Furthermore, it analyses the EU's role in the GPE in three areas: European integration, the EU's engagement in the GPE, and the EU's claims to be a major economic power. It concludes with an assessment of global economic governance, focusing in particular on the EU's role in the financial, economic, and sovereign debt crises.
This chapter explores the ideas and debates which shape global environmental politics. At least three types of socially constructed ideas play a key role in international environmental governance: world views, causal beliefs, and social norms. However, ideas are not universally shared, which means that ideological clashes are a feature of global environmental governance. The chapter looks at five of the major ideological debates that have marked the evolution of global environmental governance. The first two debates present conflicting world views: the first concerns the scope of environmental values, while the second examines the intrinsic values of non-human organisms. The following two debates concern causal beliefs: one is about the relationship between human intervention and environmental protection, while the other concerns the relationship between economic growth and environmental degradation. The last debate considers different social norms related to environmental justice and the appropriate behaviours expected towards historically marginalized populations.