The Great Recession and International Economic Order: Insights from Global Economic Crises

Abstract

The emergence of a new world order has become a topic of significant debate among international relations scholars in the wake of the Great Recession, as the U.S.-led global order established after World War II seems to be nearing its decline. However, some scholars fail to consider the impact of economic recessions on the world order, often overlooking the structural shifts within the international economic and financial system. This article seeks to clarify these shifts by analyzing four major global economic recessions between 1929 and 2020. It also explores the causal relationship between economic recessions and the evolution of the international economic order, examining how major powers act to preserve stability. The findings show that global economic recessions do not necessarily result in the emergence of a new world order; rather, the international economic order changes only when a leading economic power fails to stabilize the system. In all the case studies analyzed, the U.S. retained its role as the primary stabilizer of the global system, with a limited shift of responsibility to China during the 2008 Great Recession