Home > Uncategorized > Disorderly Hegemonic Transition Theory

Disorderly Hegemonic Transition Theory

To use the two-level game metaphor, US politicians were ill-equipped to advance the long-term interest
of the US and world capitalist economy, and were far more attuned to the short-term interests of their constituencies.
Rather than act as a responsible hegemon, Strange argued, the US preferred to export its internal problems to the world
in the form of inflation in the 1970s, growing debt in the 1980s, and a disastrous expansion of consumer credit risk in
the 1990s, and let everyone else suffer the consequences. In a prescient work published in 1986 that envisaged the kind
of global crisis that erupted in August 2007, Strange enumerated the reasons why she thought the world economy was
evolving from a multilateral system anchored in Keynesian ideas to what she described as “Casino Capitalism”: a global
economy dominated by speculative booms and busts. Such a volatile economy did not emerge because of the existence
or not of a hegemonic state, as HST believed, nor was it a consequence of the ability of parochial interests in the US to
impose their will on the majority, as Mancur Olson’s followers believed. Rather, it came about through a series of
decisions or, equally important, non-decisions made at various levels and often with wholly unintended consequences,
by various US administrations, their political and economic allies, multinational corporations, banks, international
accounting, law firms, and others.

 

From the Compendium article of globalization and global political economy

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