Question

One of the core tenets of international relations theory holds that the international system is anarchic, as it lacks an overarching sovereign authority to govern relations among states. Is this still the case today, with respect to global economic affairs? Or have institutions such as the WTO, IMF, World Bank, and EU created an effective governance structure such that global economic interactions no longer occur in a truly anarchic environment?

Answer 1

Previously, most governments across the globe, were primarily interested in increasing their wealth and self-interest was all they cared about while engaging in international relationships. Over the years, this lead to major wars which were fought for control of the resources which the world had to offer and led to anarchic positions among countries which found themselves mostly at loss for such behavior.

The International community, thus soon began realizing that it could not function without the existence of positive relations with one another which would lead to all parties gaining from economic progress. Countries began realizing that to take control of resources development and collaboration were important which would ultimately lead to a steady increase in the wealth of a country than fighting wars which drain resources.

Over the years, numerous international agencies such as the World Trade Organization, the International Monetary Fund, the World Bank and the European Union were created to allow for free trade to occur among participating nations, and to allow each one to address their problems with the help of one another.

Over the years for an example we have seen significant development in countries such as China, India and other Asian countries which previously never enjoyed the benefits of globalization and international relations and were subject to being colonies which were over exploited by the international communities across the globe.

Thus, in today’s fast paced environment wherein countries are gradually progressing towards creating a global economy and to some extent have already been successful in its implementation, international relationships are no longer anarchic in nature but have become inclusive in which countries are assured protection, a forum in which they can address their grievances and be assured of action, and capital which can be funded by the World Bank from time to time.

Countries have begun realizing that profit for one country may not require losses for another and that the entire globe can function as one in which people can mutually benefit one another.

Thus, setting up of international organizations, and countries realizing the importance of a global community in which they have a forum and everyone helps each other has resulted in anarchic relationships to end and major countries have started developing international relations based on trust and mutual dependence of one another leading to greater economic progress of the world altogether.

Please feel free to ask your doubts in the comments section if any.