Economic Governance in the Age of Globalization

William Tabb explores the development of global economic institutions like the World Bank and IMF, arguing they represent a new international state that challenges traditional concepts of sovereignty and accountability.

In Economic Governance in the Age of Globalization, William Tabb presents a compelling argument that global economic institutions like the World Bank and the International Monetary Fund represent the formation of a new international state. He contends that traditional concepts of sovereignty, accountability, and equity are no longer sufficient to address the complexities of this emerging global framework. By integrating insights from both economics and political science, Tabb explores the evolution of this global state from the aftermath of World War II and considers its implications for the future.

Tabb critiques the promises made by neoliberal advocates of the Washington consensus, which claimed that rapid economic growth, poverty reduction, and societal stability would result from their policies. He points out that these anticipated benefits have largely failed to materialize, raising important questions about the future of global order and the role of the United States as a dominant power. Tabb emphasizes that, while the U.S. will continue to play a significant role in shaping world governance, it must reevaluate its reliance on outdated models of international free trade.

To adapt to the realities of the 21st century, Tabb argues for the creation of a new financial architecture that incorporates debt forgiveness, multilateral investment agreements, and a more inclusive approach to economic growth. His work challenges readers to rethink the foundations of global economic governance and consider how these institutions can evolve to better serve the needs of a rapidly changing world.