Power transition and the regulatory state in large emerging markets: Norm‐breaking after the global financial crisis

Abstract

I examine the ways in which the global financial crisis that began in 2007, and whose effects arguably condition policymaking to the present day, affected the ongoing global power transition as manifested by the unilateral decisions undertaken by official agencies comprising national regulatory states. The theory of that power transition articulated in the overview paper of this Special Issue is reinterpreted to take into account the circumstances of that crisis. Empirical evidence on the propensity to discriminate against foreign commercial interests by the BRICS, Turkey, the European Union, and the United States during the years 2008 to 2017 at, and behind, the border is employed to identify a group of six potential rule-shapers and two possible sham rule-takers.

Power transitions and the rise of the regulatory state: Global market governance in flux

“…We also find, however, that accommodating large emerging economies is difficult and may be impossible if there is no cooperative solution that all sides see as preferable to maintaining separate, conflicting rules as in the case of the international rules governing export credit (Hopewell 2021). Moreover, as shown by Evenett (2021), emergent economies are not alone in undermining, through noncompliance, the regulatory regimes that make up the international order. In some cases, it is established powers that are the most disruptive.…”