Hegemonic Stability Theory: The Rise and Fall of the US-Leadership in World Economic Relations (PDF)

Seminar paper from the year 2003 in the subject Politics - International Politics - General and Theories, grade: 1,3 (A), Martin Luther University (GPS), course: International Political Economy, language: English, abstract: 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.