1.

Answer:

The global economic architecture is the framework of institutions, agreements, and policies
that govern international economic relations. It encompasses trade, finance, and monetary
systems, shaping how countries interact economically. Here's a breakdown of the key
elements:

Actors:

 International Institutions: The International Monetary Fund (IMF), World Trade

Organization (WTO), World Bank Group, and regional development banks like the
Asian Development Bank (ADB) play crucial roles in promoting stability, facilitating
trade, and fostering development.

 National Governments: Individual countries set their own economic policies,

impacting global trade and finance through regulations, tariffs, and currency
management.

 Central Banks: These institutions manage a nation's money supply and interest rates,
influencing global liquidity and financial stability.

 Private Sector: Multinational corporations, banks, and investors are major players in
global trade and finance, influencing resource allocation and capital flow.

Historical Influences:

 Bretton Woods System (1944-1971): Established after World War II, this system
pegged major currencies to the US dollar, which was itself backed by gold. It
promoted stability and trade growth but eventually became unsustainable due to trade
imbalances.

 General Agreement on Tariffs and Trade (GATT) & World Trade Organization
(WTO): Established in 1947 (GATT) and 1995 (WTO), these agreements aimed to
reduce trade barriers through tariff negotiations and dispute settlement mechanisms.
They have significantly liberalized global trade.

Impacts on Current Structure:

  Institutionalized Cooperation: The IMF, WTO, and World Bank provide
frameworks for international economic cooperation, promoting stability and
facilitating policy coordination.

 Trade Liberalization: The GATT/WTO system has led to a significant reduction in

trade barriers, fostering global trade integration and economic growth.

 Financial Interdependence: The Bretton Woods system, though defunct, laid the
foundation for a global financial system where national economies are increasingly
interconnected.

Challenges and Debates:

 Unequal Representation: Developing countries argue for a greater say in decision-

making within international institutions like the IMF and WTO.

 Financial Crises: The global economic architecture is constantly being reviewed in

light of financial crises, with debates on how to prevent or mitigate future risks.

 The Rise of New Actors: The increasing economic clout of emerging markets like
China is prompting discussions about reforming the global economic architecture to
reflect a more multipolar world.

2. Answer

a) North-North Relations: Shaping Through Liberal Institutionalism

 North-North Nations: The G7 (US, Canada, France, Germany, Italy, Japan, UK) are
key players in shaping the global economic architecture.

 Theory: Liberal Institutionalism - Promotes cooperation through international

institutions for mutual benefit.

Case Study: The WTO (World Trade Organization) is a product of North-North cooperation.
Through negotiations and dispute settlement mechanisms, these nations have lowered trade
barriers, fostering global trade. This exemplifies Liberal Institutionalism, where shared goals
(economic prosperity) are pursued through a rules-based system (WTO).

b) South-South Relations: Rising Influence

 South-South Nations: Emerging economies like Brazil, India, China, and South
Africa are gaining economic clout.
  Theory: Global Value Chain - Analyzes how production is fragmented across borders
for efficiency.

Case Study: China's Belt and Road Initiative (BRI) is a massive infrastructure development
program connecting China to other developing countries. Through BRI, China invests in
infrastructure projects, creating new markets for its goods and integrating developing nations
into its Global Value Chain, shaping trade patterns in the South.

c) Triangular Cooperation: A Three-Pronged Approach

 Triangular Actors: Developed Country (North), Developing Country (South),

International Organization (IO).

 Theory: Triangular Diplomacy - Combines resources from developed and developing

countries with expertise from IOs to achieve development goals.

Case Study: The UN's South-South Cooperation framework facilitates knowledge exchange
and resource sharing between developing nations. Developed countries may provide
additional funding or expertise. This Triangular approach leverages the strengths of all three
actors to promote development in the South, shaping a more equitable global economic
architecture.