Introduction
Since 1945, the process of globalization has gradually increased its pace, which primarily concerned the possibilities of international trade. The liberalization of rules has begun to take place everywhere, simplifying the processes of economic interaction between countries for the free movement of capital in order to seek short-term profits (Abdelal, 2007, pp. 2-3).
Discussion
Typically, the US, in conjunction and cooperation with a variety of established global organizations, has contributed to the deregulation of federal agencies when capital crosses borders (Matusow, 1998, pp. 118-119). A similar trend towards globalization was always observed after the vast world conflicts: the First and Second World Wars. Openness in trade promised the possibility of redistributing resources, increasing capital from countries where it was needed, and stimulating private investment, which together should lead to a permanent economic recovery.
The OECD, IMF, and EU have made it possible to create and centralize a set of new rules for international trade, facilitating and stimulating it in various regions. Due to such institutions, the transition to a new “orthodoxy” was made, so the need for a specific legislative and legal framework was needed in any case (Abdelal, 2007, p. 18). Although, on the one hand, this centralization contributes to order in International Political Economy under certain conditions, at the same time, globalization processes bring disintegration within countries. Professional financial elites have found an opportunity to unite with the best residents of other countries but, at the same time, have significantly moved away from their compatriots.
Conclusion
As a result, fragmentation was formed, contributing to an increase in the gap between the rich and the poor, which, on the contrary, will decrease the stability of the economic situation as a whole, including IPE aspects.
References
Abdelal, R. (2007). Capital rules: The construction of global finance. Harvard University Press.
Matusow, A. J. (1998). Nixon’s Economy: Booms, Busts, Dollars, and Votes. University Press of Kansas.