The New International Economic Order: Globalization of the World Economy and Implications for the International Political Economy
THE NEW GLOBAL ECONOMIC ORDER
THIS BOOK analyzes the globalization of the world economy and its real as well as its alleged implications for the international political economy. Since the end of the Cold War, globalization has been the most outstanding characteristic of international economic affairs and, to a considerable extent, of political affairs as well. Yet, as I shall argue throughout this book, although globalization had become the defining feature of the international economy at the beginning of the twenty-first century, the extent and significance of economic globalization have been greatly exaggerated and misunderstood in both public and professional discussions; globalization in fact is not nearly as extensive nor as sweeping in its consequences (negative or positive) as many contemporary observers believe. This is still a world where national policies and domestic economies are the principal determinants of economic affairs. Globalization and increasing economic interdependence among national economies are indeed very important; yet, as Vincent Cable of the Royal Institute of International Affairs has pointed out, the major economic achievement of the post-World War II era has been to restore the level of international economic integration that existed prior to World War I.1
My 1987 book lacked an adequate domestic dimension. It analyzed the international economy as if domestic economic developments were of only minor importance. In part, this neglect was due to my desire to help advance an autonomous, self-contained international political economy. The present book attempts to overcome this unfortunate weakness through a focus on what I call "national systems of political economy" and their significance for both domestic and international economic affairs. As national economies have become more and more integrated, the significance of the fundamental differences among national economies has greatly increased. The 1987 book had several other
THIS BOOK analyzes the globalization of the world economy and its real as well as its alleged implications for the international political economy. Since the end of the Cold War, globalization has been the most outstanding characteristic of international economic affairs and, to a considerable extent, of political affairs as well. Yet, as I shall argue throughout this book, although globalization had become the defining feature of the international economy at the beginning of the twenty-first century, the extent and significance of economic globalization have been greatly exaggerated and misunderstood in both public and professional discussions; globalization in fact is not nearly as extensive nor as sweeping in its consequences (negative or positive) as many contemporary observers believe. This is still a world where national policies and domestic economies are the principal determinants of economic affairs. Globalization and increasing economic interdependence among national economies are indeed very important; yet, as Vincent Cable of the Royal Institute of International Affairs has pointed out, the major economic achievement of the post-World War II era has been to restore the level of international economic integration that existed prior to World War I.1
My 1987 book lacked an adequate domestic dimension. It analyzed the international economy as if domestic economic developments were of only minor importance. In part, this neglect was due to my desire to help advance an autonomous, self-contained international political economy. The present book attempts to overcome this unfortunate weakness through a focus on what I call "national systems of political economy" and their significance for both domestic and international economic affairs. As national economies have become more and more integrated, the significance of the fundamental differences among national economies has greatly increased. The 1987 book had several other