1. Wealthy Nations Industrialized World Developed World North Leadership Matters

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

3. 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

4. Economic Hegemony in History 1815-1914: British Hegemony 1914-1918: Hegemonic War 1919-1939: No hegemon 1939-1945: WW II 1945-present?: US Hegemony

5. British Hegemonic Success Growth of Railways in Europe 19 th Century (length in km) http://images.google.com/imgres?imgurl=http://www.fordham.edu/halsall/mod/table6b.gif&imgrefurl=http://www.fordham.edu/hal 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

6. British Hegemonic Success Cotton

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

8. When there is no economic leadership?

9. US Liberal Hegemony 1945 John Maynard FDR Truman Keynes

10. 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

11. Bretton Woods System Gold Standard Floating Exchange Rates

12. GATT/WTO WTO

13. IMF International Monetary Fund International Monetary Fund

14. Trade

15. 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

16. World Bank