Globalization and Global Economic Governance

This article focuses on the World Trade Organization (WTO) andthe International Monetary Fund (IMF). It starts by noting thatthe case for creating such institutions is not self-evident,since the liberal order of the nineteenth century lacked comparableones. Nevertheless, these institutions perform valuable functions.The article then considers the criticisms of the WTO and theIMF. It finds most, thought not all, unjustified. It concludesthat the WTO could be improved. But, without it, the big powerswould do what they want to an even greater extent than theyalready do. Similarly, while the IMF has made significant mistakes,notably in its promotions of capital-market liberalization,prior to the Asian financial crisis, the charges against itare exaggerated. Finally, the article considers the possibilityof creating new institutions to cover investment, migration,taxation, and the environment.