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Imperfect adaptation: how the WTO and the IMF adjust to shifting power distributions among their members

Author

Listed:
  • Bernhard Zangl

    (Ludwig-Maximilian-University Munich)

  • Frederick Heußner

    (Ludwig-Maximilian-University Munich)

  • Andreas Kruck

    (Ludwig-Maximilian-University Munich)

  • Xenia Lanzendörfer

    (Ludwig-Maximilian-University Munich)

Abstract

How do international institutions adjust to shifting power distributions among their members? We argue that institutional adaptations to the rise of emerging and the decline of established powers are different from what power transition theories (PTTs) would lead us to believe. Institutional adaptations are not impossible, as pessimist PTT variants hold; and they are rarely easy to attain, let alone perfect, as optimist PTT variants imply. To bridge the gap between these versions of PTT, we propose an institutionalist power shift theory (IPST) which combines insights on the conditions and mechanisms of institutional change from functionalist, historical and distributive variants of rational institutionalism. IPST claims that institutional adaptations will succeed or fail depending on whether or not emerging powers are able to undermine the international institution and to make credible threats to this effect. To demonstrate IPST’s plausibility we analyze: (1) how India and Brazil gained the agreement of established powers to their membership in the WTO core negotiation group (“Quad”), which had previously been dominated by developed countries; and (2) how China reached agreement with established powers on (more) even-handed surveillance of IMF members’ financial stability, which, up to then, had focused on developing countries and exchange rate issues.

Suggested Citation

  • Bernhard Zangl & Frederick Heußner & Andreas Kruck & Xenia Lanzendörfer, 2016. "Imperfect adaptation: how the WTO and the IMF adjust to shifting power distributions among their members," The Review of International Organizations, Springer, vol. 11(2), pages 171-196, June.
    • Handle: RePEc:spr:revint:v:11:y:2016:i:2:d:10.1007_s11558-016-9246-z
    DOI: 10.1007/s11558-016-9246-z
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    Cited by:

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    2. Andreas Kruck & Bernhard Zangl, 2020. "The Adjustment of International Institutions to Global Power Shifts: A Framework for Analysis," Global Policy, London School of Economics and Political Science, vol. 11(S3), pages 5-16, October.
    3. Sandra Lavenex & Omar Serrano & Tim Büthe, 2021. "Power transitions and the rise of the regulatory state: Global market governance in flux," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 445-471, July.
    4. Phillip Y. Lipscy, 2020. "How Do States Renegotiate International Institutions? Japan’s Renegotiation Diplomacy Since World War II," Global Policy, London School of Economics and Political Science, vol. 11(S3), pages 17-27, October.
    5. Jonas Tallberg & Soetkin Verhaegen, 2020. "The Legitimacy of International Institutions among Rising and Established Powers," Global Policy, London School of Economics and Political Science, vol. 11(S3), pages 115-126, October.
    6. Paul K. MacDonald, 2020. "‘Most Potent and Irresistible Moral Influence’: Public Opinion, Rhetorical Coercion, and the Hague Conferences," Global Policy, London School of Economics and Political Science, vol. 11(S3), pages 104-114, October.
    7. Tana Johnson & Johannes Urpelainen, 2020. "The more things change, the more they stay the same: Developing countries’ unity at the nexus of trade and environmental policy," The Review of International Organizations, Springer, vol. 15(2), pages 445-473, April.
    8. Felicity Vabulas & Duncan Snidal, 2020. "Informal IGOs as Mediators of Power Shifts," Global Policy, London School of Economics and Political Science, vol. 11(S3), pages 40-50, October.
    9. Stephen, Matthew D., 2021. "China's New Multilateral Institutions: A Framework and Research Agenda," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 23(3), pages 807-834.
    10. Manuel Becker, 2019. "When public principals give up control over private agents: The new independence of ICANN in internet governance," Regulation & Governance, John Wiley & Sons, vol. 13(4), pages 561-576, December.
    11. Stephen, Matthew D. & Stephen, Kathrin, 2020. "The Integration of Emerging Powers into Club Institutions: China and the Arctic Council," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(S3), pages 51-60.
    12. Benjamin Faude & Michal Parizek, 2021. "Contested multilateralism as credible signaling: how strategic inconsistency can induce cooperation among states," The Review of International Organizations, Springer, vol. 16(4), pages 843-870, October.
    13. Susanne Lütz, 2021. "Global–Regional Realignments in Trade, Finance and Development: Introduction to the Special Issue," Global Policy, London School of Economics and Political Science, vol. 12(S4), pages 5-13, May.
    14. John W. McArthur & Eric Werker, 2016. "Developing countries and international organizations: Introduction to the special issue," The Review of International Organizations, Springer, vol. 11(2), pages 155-169, June.
    15. Matthew D. Stephen & Kathrin Stephen, 2020. "The Integration of Emerging Powers into Club Institutions: China and the Arctic Council," Global Policy, London School of Economics and Political Science, vol. 11(S3), pages 51-60, October.
    16. Alexander Thompson, 2020. "Emerging Powers and Differentiation in Global Climate Institutions," Global Policy, London School of Economics and Political Science, vol. 11(S3), pages 61-72, October.
    17. Stephen, Matthew D. & Parízek, Michal, 2019. "New Powers and the Distribution of Preferences in Global Trade Governance: From Deadlock and Drift to Fragmentation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(6), pages 735-758.
    18. Parizek, Michal & Stephen, Matthew D., 2021. "The long march through the institutions: Emerging powers and the staffing of international organizations," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 56(2), pages 204-223.
    19. Stephen, Matthew D., 2020. "China's new multilateral institutions: A framework and research agenda," Discussion Papers, Research Unit: Global Governance SP IV 2020-102, WZB Berlin Social Science Center.
    20. Zürn, Michael, 2021. "Öffentlichkeit und Global Governance [The Public Sphere in Global Governance]," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Sonderban, pages 160-187.

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    More about this item

    Keywords

    Institutional change; Power transition; Rational institutionalism; World Trade Organization (WTO); International Monetary Fund (IMF);
    All these keywords.

    JEL classification:

    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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