Impact of Developments in the World Economy

IT WILL be recalled from the discussion in Chapter 2 that the international trading system depends for its survival (i) on a high level of international cooperation and goodwill, or (ii) on a fear of retaliation, or (iii) on a belief in the major trading powers that its rules are in their own individual long-term interest, or (iv) on the willingness of a hegemonic power or group of powers to remain committed to the rules, whatever others do, out of an awareness of the consequences for the system as a whole (and so for itself) of its defection. As a result of developments in domestic policy, discussed in the previous chapter, and of developments in international trade and international relations, to be discussed in this chapter, all of these possible sources of support have become increasingly enfeebled.