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

Term Paper , 2003 , 24 Pages , Grade: 1,3 (A)

Politics - General and Theories of International Politics

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.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Hegemonic Stability Theory
• Hegemony
• The Hegemon and its System
• Problems of the System – The Hegemon's Decline
• The US-Hegemony
• The Postwar Economic World
• Planning the New World Order under US-Leadership
• The Establishment of the American Hegemony
• Bretton Woods Conference (1944-1976)
• The IMF and the World Bank
• The GATT
• The Decline of the US-Hegemon

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This term paper aims to explore the concept of Hegemonic Stability Theory, examining its key assumptions and analyzing the rise and fall of the US as a hegemon in the post-World War II global economic order. It seeks to answer questions regarding the nature and function of a hegemon, the factors contributing to the US's ascendance, and the reasons behind its decline.

• The role of a hegemon in shaping and maintaining a stable international economic order.
• The establishment of a liberal international economic order under US leadership following World War II.
• The impact of key international institutions like the IMF, World Bank, and GATT on the global economy.
• The factors that led to the decline of the US-hegemony.
• The implications of hegemonic stability theory for understanding contemporary global economic relations.

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: The paper introduces the concept of Hegemonic Stability Theory (HST) as a framework for understanding the post-World War II global economic order, focusing on the role of the US as a hegemon. It poses key questions regarding the theory's assumptions, the emergence of US leadership, and the reasons for its eventual decline.
• Hegemonic Stability Theory: This chapter examines the theoretical underpinnings of HST, outlining the argument that a stable liberal economic order requires a dominant power (hegemon) willing to uphold the system. It explores the relationship between hegemony, the hegemon's system, and the provision of public goods.
• The US-Hegemony: This chapter examines the factors that allowed the US to become the dominant power in the post-war economic order. It analyzes the role of the US in shaping the new world order, including its involvement in the establishment of key institutions like the IMF, World Bank, and GATT.

Schlüsselwörter (Keywords)

Hegemonic Stability Theory, Hegemony, Hegemon, US-Hegemony, Liberal International Economic Order, Post-World War II, Bretton Woods, IMF, World Bank, GATT, Global Economic Relations.

• College: Martin Luther University (GPS)
• Course: International Political Economy
• Grade: 1,3 (A)
• Author: Julia Schubert (Author)
• Publication Year: 2003
• Pages: 24
• Catalog Number: V22451
• ISBN (eBook): 9783638257701
• ISBN (Book): 9783656204831
• Language: English
• Tags: Hegemonic, Stability, Theory, Rise, Fall, US-Leadership, World, Economic, Relations, International, Political, Economy