The aftermath of the World War II saw the fall of empires and the rise of nation states. The British, Soviet Union and Ottoman (now Turkey) empires collapsed, giving birth to independent countries in different parts of the world, particularly across Africa, Asia and the Middle East. Whilst trials and tribulations still lingered, the world experienced rapid growth, largely due to adoption of innovation and technology, improved standards of living, migration and talent attraction and the access to education. In efforts of rebuilding from the ashes, developed nations, mostly those from mainland Europe, focused on leveraging these advancements to drive economic growth and enhance social protection. For most developing nations, however, decolonization brought a new lease of life, and this offered them an opportunity to develop internal governance systems that would promote equality, equity and prosperity. As time went by, challenges emanating from poor leadership, limited to hardly much investment in research and development, poor healthcare systems and weak value chains sank most developing countries into abject poverty contrary to what was envisioned post-independence.
The United States of America took the global leadership mantle after WWII. One of the major contributions from their leadership systems was the formation of the Bretton Woods institutions. These institutions included the World Bank and the International Monetary Fund. In addition, the charter establishing the United Nations was also established. Both the World Bank and the IMF were mandated to provide monetary and fiscal stewardship to member states while the UN was to ensure and promote world peace and security. With these institutions in place and the inherent desire of countries to succeed and grow, the world went through an era of prosperity and monumental growth in all spheres of life. The industrial and digital age improved overall standards of living and most developed countries revamped their foreign aid initiatives to complement those of the Bretton Woods institutions and the United Nations targeting global south countries.
From 2008, the world has experienced myriads of challenges that have tested global systems and heavily influenced both global and individual countries’ social and economic policies. The effects of the 2008 financial crisis rippled through various economies worldwide, exposing systemic financial vulnerabilities in developed nations. To maintain confidence in the global financial architecture, a meeting convened by the then British Prime Minister Gordon Brown resolved that G7 members provide bailout facilities to financial institutions that were under stress and that could potentially collapse. This was considered controversial in many quarters as those against the move pointed out that it was wrong for Governments to use public funds to directly support private institutions that were key perpetrators of the problem then. Soon after the crisis cooled off, Europe was thrown off again with Greece experiencing an economic crisis that threatened the stability of the Economic and Monetary Union within the European Union. On the social and security front, the world was taken back when Syria was thrown into chaos and this attracted military interventions from different countries around the world who supported different opposing factions in the country. The Syrian conflict was a classic example of how the United Nations failed to stop or prevent the ongoing crisis. To date several politically instigated conflicts have erupted in the Middle East, Asia and parts of Africa and Europe. The COVID 19 pandemic brought the world to a standstill as countries were forced to close their borders and institute strict public health restrictions to contain the virus.
Although the Bretton Woods institutions were at first established to stabilize the post WWII world, the methodologies and structures that defined their success then have evolved and are now considered part of modern-day challenges. Whilst the United Nations was founded to prevent conflict and promote security, it has evidently struggled to effectively address current conflicts such as the ongoing crisis in Sudan, Somalia, Ukraine, Israel and Haiti. Similarly, whereas the World Bank and IMF were formed to support fiscal and monetary stability to member states, their recommendations have put Governments and the citizens at logger heads, triggering protests and a call for the institutions to be restructured. Collectively, developing nations have had little to no influence in the administration of these institutions as they are heavily dominated by wealthier nations, leaving developing countries with limited influence over decision-making and speaking up on the marginalization of their issues. This imbalance has been the brunt of modern challenges characterized by economic inequality, power asymmetries, political instability and environmental costs being a social burden. Tools that were once considered instruments of progression are now contributors of modern-day suffering. How then can the world reset from this malfunction? And is the world ready for a new global order?
Best practice going forward
As we contemplate on the current state of the world, it is clear that we are at a pivotal moment where new, advanced narratives must be communicated to reshape the trajectory of our global systems. Professionals from all walks of life are called to develop methodologies and models that drive socio-economic improvement while addressing pressing global challenges. Achieving this transformation will require a fundamental restructure of existing global governance and financial structures. Current systems must evolve to reflect the realities of the 21st century, ensuring equal representation, fostering greater inclusion and participation from all nations, particularly those historically marginalized. Concurrently, exposing developing countries to Third World Approaches to International Law (TWAIL) pushes for the modification of global governance structures to ensure that international law reflects on the foundations of equity and shared prosperity.
Simultaneously, a new global order should focus on collaboration over competition to mitigate power imbalances that perpetuate inequality and instability. While multilateral agreements have been the norm, bilateral cooperation may emerge as a more pragmatic approach to fostering trust and in that sense, curb world wars. An analysis of the value system of each country is also called for. Moral degradation and the lack of accountability has long impaired socio-economic structures particularly in developing countries. Advocacy for a merit-based decision-making process is not only idealistic but pragmatic, ensuring that policies and leadership reflect competence and fairness.
This vision, in its entirety, seems overly ambitious. However, shifting perspective and narratives that have been considered conventional for many generations is paramount and demands that leaders and stakeholders confront uncomfortable truths about the existing systems. Only through bold actions and commitment to equity, inclusive governance and sustainability can we outline a path towards a balanced world.