2008 Financial Crisis Post-Hegemonic Global Governance

Throughout the development of global governance, the 2008 financial crisis has continued to play a key role in international political economy. This has resulted in continuous arguments over its definition within both scholarly and policy-making communities. Meanwhile, we can assume that global affairs proceed in the context of two realms, namely the political security realm known as Nation-State System or International System, and the economic realm known as the Global Capitalist System. Within at least the recent fifteen decades, global history has indicated that when great crises occur in the economic realm it brings about great crises in the political security realm. However, although history implies otherwise, the 2008 global capitalist crisis, did not bring about an international conflict threatening international stability as the previous crises had done before World War II.By tracing out a trend within global power dynamics and focusing on both the economic and political security realms, and by drawing from an analytical-explanatory method, this paper argues that this development was caused by the success of great powers in using institutional mechanism to promote cooperation, multilateralism, and transnationalism. This paper’s findings show that the US has lost its hegemonic position, and global affairs are governed through state-centric multilateralism, which is void of nationalism and based on cooperative practices. These cooperative practices are represented in exclusive international institutions known as post-hegemonic global governance.