Wealthy Nations Industrialized World Developed World North Leadership Matters.

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Presentation transcript:

Wealthy Nations Industrialized World Developed World North Leadership Matters

Pre-requisites for Economic Hegemony Dominant economy Political will to exert leadership

Hegemonic Stability Theory Hegemonic War Winner becomes hegemon; makes rules for international economic system Hegemon Declines System weakens; challengers try to rewrite rules Rise of challenger to hegemon and system

Economic Hegemony in History : British Hegemony : Hegemonic War : No hegemon : WW II 1945-present?: US Hegemony

British Hegemonic Success Growth of Railways in Europe 19 th Century (length in km) sall/mod/indrev6.html&h=423&w=642&sz=11&hl=en&start=4&um=1&tbnid=R39topcPykB2kM:&tbnh=90&tbnw=137&prev=/ima ges%3Fq%3DEuropean%2Brailroads%2B19th%2Bcentury%2Bimages%26svnum%3D10%26um%3D1%26hl%3Den

British Hegemonic Success Cotton

When there is no economic leadership? (After WW I) US GNP per capita

When there is no economic leadership?

US Liberal Hegemony 1945 John Maynard FDR Truman Keynes

US Liberal System 1. Bretton Woods Monetary System 2. General Agreement on Tariffs and Trade (GATT) 1.World Trade Organization (WTO) 3. International Monetary Fund (IMF) 4. World Bank

Bretton Woods System Gold Standard Floating Exchange Rates

GATT/WTO WTO

IMF International Monetary Fund International Monetary Fund

Trade

Debt Already getting debt relief with conditions: Benin, Bolivia, Burkina Faso, Cameroon, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia. Receiving debt relief and deciding on conditions: Afghanistan, Burundi, Chad, the Democratic Republic of the Congo, the Republic of Congo, the Gambia, Guinea, Guinea-Bissau, and Haiti. Eligible for debt relief: Central African Republic, Comoros, Côte d’Ivoire, Eritrea, the Kyrgyz Republic, Liberia, Nepal, Somalia, Sudan, and Togo. Source: World BankWorld Bank Other Debt StatisticsDebt Statistics

World Bank