Other Report

PrintPrint EmailEmail ShareShare CiteCite


The Irony of Global Economic Governance: The System Worked

An IIGG Working Paper

Author: , Professor of International Politics, Fletcher School of Law and Diplomacy, Tufts University

The Irony of Global Economic Governance: The System Worked - the-irony-of-global-economic-governance-the-system-worked

Publisher Council on Foreign Relations Press

Release Date October 2012

24 pages



The 2008 financial crisis posed the biggest challenge to the global economy since the Great Depression and provided a severe "stress test" for global economic governance. States rely on a bevy of institutions—the International Monetary Fund, World Trade Organization, and the Group of Twenty—to coordinate action on the global scale. Since the Great Recession began, there has been no shortage of scorn for the state of global economic governance among pundits and scholars. However, in this International Institutions and Global Governance program Working Paper, Daniel Drezner concludes that, despite initial shocks that were more severe than the 1929 financial crisis, the evidence suggests that these structures responded to the financial crisis robustly. Global trade and investment levels have recovered from the plunge that occurred in late 2008. Existing global governance structures, particularly in finance, have revamped themselves to accommodate shifts in the distribution of power. The World Economic Forum's survey of global experts shows rising confidence in global governance and global cooperation. In short, international financial institutions passed the stress test.

More About This Publication

Daniel W. Drezner is professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University and a contributing editor at Foreign Policy. He previously held positions at the University of Chicago, the University of Colorado at Boulder, the RAND Corporation, and the U.S. Department of the Treasury. His latest book, Theories of International Politics and Zombies, was published by Princeton University Press in February 2011.

More on This Topic

Expert Brief

The G20's Continuing Policy Drift

Author: Steven Dunaway

Instead of addressing serious problems in global imbalances, the February 18-19 meeting of the G20 finance minister is poised to go astray...

Expert Brief

The G20 Summit's Lost Focus

Author: Steven Dunaway

The Fed's decision to resume quantitative easing will likely shift the focus of the G20 summit and make it harder to settle currency-policy...


The G8 Summit: Three Things to Know

Speaker: Terra Lawson-Remer

The G8 meeting at Camp David will focus on food security and advancing political transitions in the Middle East and North Africa, while the...