In the second half of the 20. century the term of “Hegemonic Stability Theory “ was
introduced by political scientists such as Stephen Krasner, Robert Gilpin and Robert
Keohane to explain the mechanisms of the new economic world order that had been
established after the Second World War.1 The main assumption of the theory that a
stable liberal economic world order needs a hegemo n was explained with the
examples of the British hegemony in the 18. and 19. century and with the example of
American hegemony in the postwar years of the second half of the 20. century.
This term paper intends to answer the following questions: What is Hegemonic
Stability Theory about? How is the shape of the hegemonic system? Why will it
decline? The theoretical assumptions will be extended by a closer look at the UShegemony.
How was it possible that the US could establish their leadership in the
international economic system? What did they do to create a stable global economic
order? Of course, the last questions have to answer why the US weakened and why
their hegemony eventually declined? How is the situation today? Is there still a
hegemon?
To answer these questions, the first part of the paper will summarize the main
assumptions of the theory. Then, the international economic situation after the
Second World War which enabled the US to become the world´s hegemon will be
shortly presented. The following chapters will deal with the establishment of the UShegemony
by creating international regimes such as IMF, IBRD and GATT. Finally,
the end of the paper will explain how the American hegemony declined and which
role it plays in the present international economy.
1 Reinhard Rode. Weltregieren durch Internationale Wirtschaftsorganisationen. Halle, 2001: 24.
Table of Contents
- 1. Introduction
- 2. Hegemonic Stability Theory
- 2.1 Hegemony
- 2.1.1 The Hegemon and its System
- 2.2 Problems of the System – The Hegemon's Decline
- 3. The US-Hegemony
- 3.1 The Postwar Economic World
- 3.2 Planning the New World Order under US-Leadership
- 3.3 The Establishment of the American Hegemony
- 3.3.1 Bretton Woods Conference (1944-1976)
- 3.3.2 The IMF and the World Bank
- 3.3.3 The GATT
- 4. The Decline of the US-Hegemon
Objectives and Key Themes
This paper aims to explore Hegemonic Stability Theory, examining its core tenets and applying them to the rise and fall of US leadership in global economic relations. It seeks to understand the theory's mechanisms, the structure of hegemonic systems, and the factors contributing to their decline. The analysis will focus on the US experience, investigating its establishment of hegemony post-World War II and the subsequent decline of its dominance.
- Hegemonic Stability Theory and its core assumptions
- The characteristics of a hegemon and its role in maintaining a stable economic order
- The establishment of US hegemony after World War II
- The factors contributing to the decline of US hegemony
- The current state of global economic hegemony
Chapter Summaries
1. Introduction: This introductory chapter sets the stage for the paper by defining the scope of the research and outlining the central questions that will be addressed. It introduces Hegemonic Stability Theory (HST) as a framework for understanding the post-World War II global economic order, highlighting the contributions of key theorists like Krasner, Gilpin, and Keohane. The chapter clearly states the paper's objectives, which are to examine the core assumptions of HST, analyze the establishment and decline of US hegemony, and assess the relevance of the theory in the contemporary international economic landscape. It briefly previews the structure of the paper, indicating the progression of arguments and analysis across subsequent chapters.
2. Hegemonic Stability Theory: This chapter delves into the theoretical underpinnings of Hegemonic Stability Theory. It discusses the concept of hegemony as defined by scholars such as Keohane and Nye, emphasizing the role of material resources, economic strength, and the willingness of the hegemon to maintain the international order. The chapter explores the arguments presented by Kindleberger, highlighting the crucial role of a stabilizing power in preventing economic crises, such as the Great Depression. The discussion also touches upon the work of Keohane, focusing on his views on the creation of order through dominant powers and the formation of international regimes, highlighting that the continued hegemony is necessary for order, meaning that cooperation between involved states is required.
2.1 Hegemony: This section defines the term "hegemony" and describes the characteristics of a hegemonic state within the international economic system. It details the essential requirements for a state to be considered a hegemon, emphasizing the importance of material resources, market access, technological superiority and political control over crucial assets. The section notes that hegemony is necessary but not sufficient for establishing a liberal international economy, highlighting the role of cooperation and shared interests amongst participating states. The interconnectedness between economic and political power in the maintenance of the hegemonic system is discussed. The section also explores the concept of the hegemonic system and its inherent instability, setting the stage for subsequent discussions on the decline of hegemonic power.
3. The US-Hegemony: This chapter focuses on the rise of US hegemony in the postwar era. It analyzes the post-World War II economic landscape that facilitated the establishment of US dominance. The chapter examines the deliberate actions taken by the US to construct a stable global economic order, focusing on the role of international institutions and agreements. This section examines the strategic creation of global economic institutions such as the IMF, the World Bank, and GATT, showcasing the active role of the US in shaping the post-war global economy.
4. The Decline of the US-Hegemon: This chapter explores the factors that contributed to the decline of US hegemony. While specific details of the decline are not provided, the chapter sets the stage for a future analysis of this important topic. The chapter lays the groundwork for a more detailed exploration of how the economic might of the United States started losing ground and the various factors that influenced its relative decline on the world economic stage.
Keywords
Hegemonic Stability Theory, US hegemony, international political economy, global economic order, Bretton Woods, IMF, World Bank, GATT, Pax Americana, power, cooperation, decline, international regimes.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this text?
This text provides a comprehensive preview of a paper exploring Hegemonic Stability Theory (HST) and its application to the rise and fall of US leadership in global economic relations. It analyzes the theory's mechanisms, the structure of hegemonic systems, and factors contributing to their decline, focusing primarily on the US experience from post-World War II to its subsequent decline.
What are the key themes explored in the text?
The key themes include Hegemonic Stability Theory and its core assumptions; the characteristics of a hegemon and its role in maintaining a stable economic order; the establishment of US hegemony after World War II; the factors contributing to the decline of US hegemony; and the current state of global economic hegemony.
What theoretical framework does the text utilize?
The text primarily uses Hegemonic Stability Theory (HST) as its analytical framework. It explores the contributions of key theorists like Krasner, Gilpin, and Keohane, examining their perspectives on hegemony, the role of a hegemon in maintaining global economic order, and the factors leading to its decline. The work of Kindleberger and Keohane are specifically highlighted.
What historical period does the text focus on?
The text predominantly focuses on the post-World War II period, analyzing the rise and decline of US hegemony in the global economic system. It examines the establishment of US dominance through the creation of institutions like the IMF, World Bank, and GATT, and explores the factors leading to the subsequent decline of this dominance.
What key institutions are discussed in the text?
The text discusses several key international institutions crucial to the establishment and maintenance of the post-World War II global economic order. These include the International Monetary Fund (IMF), the World Bank, and the General Agreement on Tariffs and Trade (GATT).
What are the chapter summaries provided in the text?
The text provides chapter summaries outlining the content of each section: an introduction defining the scope and objectives of the paper; a chapter on HST, exploring its theoretical underpinnings; a section defining hegemony and the characteristics of a hegemonic state; a chapter focusing on the rise of US hegemony in the post-war era; and a final chapter exploring factors contributing to the decline of US hegemony.
What are the main objectives of the research presented in this preview?
The main objectives are to explore Hegemonic Stability Theory, examine its application to the rise and fall of US leadership in global economic relations, understand the theory's mechanisms and the structure of hegemonic systems, and analyze the factors contributing to their decline. The focus is on the US experience post-World War II.
What keywords are associated with this text?
The keywords include Hegemonic Stability Theory, US hegemony, international political economy, global economic order, Bretton Woods, IMF, World Bank, GATT, Pax Americana, power, cooperation, decline, and international regimes.
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- Quote paper
- Julia Schubert (Author), 2003, Hegemonic Stability Theory: The Rise and Fall of the US-Leadership in World Economic Relations, Munich, GRIN Verlag, https://www.grin.com/document/22451
