| Publication |
2011.
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| Summary/Abstract |
The resolution of the great Cold War power struggle created a wave of optimism that modernisation, free-market globalisation and democratisation would extend the horizons of peace and prosperity across the world. These hopes were dashed by a progression of seemingly disjointed setbacks: economic crises, regional wars based on nationalism and ethnicity, and global crime and terrorism. Yet these varied challenges stem from common roots. The United States and its partners created a global political economy defined by the norms, institutions and power structures of 'bounded capitalism', providing the steadying influence of social-welfare policies in order to win societal support for building a regime of liberal international economic interaction. The structure of this world system is changing as the status quo powers face relative decline and new players enter the field, demanding adjustments. As developed and developing states deal differently with the problems of market development and welfare provision, the norms and precepts of the system are also in flux. Any attempt to deal with coming challenges must address the deeper social and economic transformations at work, rather than focusing piecemeal on their symptoms.
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