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International Institutions and Realism

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International Institutions and Realism
Becky, Tam Hing Lui
Prof. Chan Ding Ding
GPEC 5002 Challenges to the Global System: Insecurity of the World
17 November 2012 HOW CAN INTERNATIONAL INSTITUTIONS FACILITATE COOPERATION?

WHAT WOULD A REALIST SAY ABOUT INTERNATIONAL INSTITUTIONS?

Nations call for cooperation especially during and after crisis. One example was the Bretton Wood system created in 1944, with the purpose to revive the global economy after the serious damage in WWII. After the 2008 financial crisis, nations again asked for more international regulations and monitoring on the global financial system and suggested the “Bretton Wood II”. When we step back and think again, does the international regime facilitate cooperation between nations to solve global issues?

The school of Liberalism puts more emphasis on the role of international institutions. Robert Keohane defined institutions as "persistent and connected sets of rules, both formal and informal, that prescribe behavioral roles, constrain activity, and shape expectations" (1). By definition, International Monetary Fund (IMF), World Bank, World Trade Organization (WTO) are formal institution while Bretton Wood Agreement, General Agreement on Tariffs and Trade (GATT) are informal. Under the anarchy environment in the international platform, it is possible to facilitate cooperation through the establishment of international organizations by two specific features: Centralization and Independence (2). It is the independence and neutral characteristic of the international organizations that enhance the legitimacy of its actions, causing states willing to gather together and authorize the international organizations to centralize the activities and ultimately achieve cooperation. This reduces transaction costs and increase efficiency. Institutions coordinate activities including setting up forums and conferences, managing substantive operations, norm elaboration, neutral information provider, acting as trustee/arbiter,



Cited: 1. Keohane, Robert O. International lnstitutions and State Power: Essays in International Theory. Boulder: Westview Press, 1989 2. Abbott Kenneth and Snidal Duncan. The Oxford Handbook of International Relations, Ch. 11 , “Why States Act through Formal International Organizations.” Journal of Conflict Resolution., 1998 3. IMF website. Cooperation and reconstruction (1944–71) http://www.imf.org/external/about/histcoop.htm 4. Frieden Jeffrey A. Global Capitalism Its Fall and Rise in the Twentieth Century. United States of America: Norton Paperback 2007 5. Schweller Randall and Priess David. A Tale of Two Realisms: Expanding the Institutions Debate. Mershon International Studies Review, Vol. 41, No. 1 (May, 1997), pp. 1-32 6. Mearsheimer, John. The False Promise of International Institutions. International Security. 1994/95 19(3):5-49. 7. Hasenclever Andreas, Mayer Peter and Rittberger Volker. Integrating Theories of International Regimes. Review of International Studies, Vol. 26, No. 1 (Jan., 2000), pp. 3-33 8. Grieco, Joseph M., Powell Robert, and Nidal Duncans. The Relative-Gains Problem for International Cooperation. American Political Science Review 1993 87:729-743. 9. Stein Arthur A. Neoliberal Institutionalism Chapter 11 p.206

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