ABSTRACT. This paper explores the challenges faced by the global liberal order in the contemporary multipolar world. The global liberal order, which has been dominant for several decades, is characterized by a focus on free markets, democracy, human rights, international cooperation, and a rules-based order. However, this order is facing significant strain due to the rise of multipolarity, where power is dispersed among multiple nations. This has led to a more competitive international environment, where states often prioritize their national interests over global cooperation. Additionally, the rise of states such as China and Russia, which pursue more assertive foreign policies and challenge the liberal values and institutions that underpin the global liberal order, has added to the strain. The distributive consequences of hyper- liberal globalization have also posed challenges, leading to political blowback, particularly in Western countries. Western governments are facing growing political pressures, with populist movements and parties criticizing the global liberal order and calling for a return to national sovereignty and protectionist economic policies. This creates significant challenges for Western countries, which have been at the forefront of promoting and defending the global liberal order. The decline of the global liberal order is a complex phenomenon driven by a combination of factors, including the rise of multipolarity, revisionist states, and the distributive consequences of globalization. However, many rising countries can pursue the economic benefits of globalization without adopting liberal values, norms, and institutions. They can also actively pursue a strategy that leads to the separation of economy and government. The future of the global liberal order remains uncertain, and its survival will likely depend on the ability of its traditional advocates to address these challenges and adapt to the changing international environment. This paper begins by addressing the arguments of a recent leader from The Economist that discusses the imminent collapse of the liberal world order under the title “New Economic Order”.
JEL codes: D53; E22; E32; E44; G01; G41

Keywords: global liberal order; multipolarity; revisionist states; hyperliberal globalization; populist movements; protectionist economic policies; national sovereignty; economic and government separation

How to cite: Peters, M. A. (2024). “Back from the Brink? US Collapse and the New Economic Order,” Economics, Management, and Financial Markets 19(1): 9–27. doi: 10.22381/emfm19120241.

Received 19 March 2024 • Received in revised form 26 May 2024
Accepted 28 May 2024 • Available online 10 June 2024