For over sixty years now, the International Monetary Fund (IMF) has served as a key instrument of the liberal international economic order (LIEO). Free trade, loans to aid development, and the decline of command economies have all been results of this institution—much to the delight of countless actors across the international stage. Yet the past decade has hosted a particularly strong wave of criticism. The 2007-08 financial crisis, as Eric Helleiner shows us, damaged the legitimacy of both IMF policies and leadership. From that time through today, many have insisted that a “new Bretton Woods” occur as to totally begin again in our structuring of global finance. Helleiner and I are, at our cores, opposed to such a move. This is largely because a “new Bretton Woods” is almost impossible, but also because a “new Bretton Woods” seems rather counterintuitive.
For many years, since the end of the Cold War, the international community has been completely aware of the states that are classified in the group of major world leaders. Today, those states have been noting that there are in fact new emerging states, to exemplify, Brazil, India and China. However, today the relationship between world powers has been undermining. It is not failing due to the fact that the public has not announced the importance or status of these emerging states but because of an underlying factor. In Mearsheimer’s journal, he explains that what has been causing a non-relationship between power states is the idea of liberal institutionalism, that fact that institutions can bring peace and cooperation between states According to Mearsheimer, in a realist world, states act upon institutions for their benefit and that leads to chaos. Even though the idea of entitling a state as a new world power presents itself beneficial for the international community, for example if a state needs the political assistance of a world power, at the end of the day, a state is self-interested and will be cautious about security competition, especially an emerging world power, like Brazil and India. Continue reading Liberal Institutionalism: non-cooperation in our modern world- Lucero Flores