James Talks Global Order
James illustrated how economic trends drive international political change and leads to power transitions between states, a major source of international conflict. He explained how the economic turmoil of the 1930s marked the transition of hegemony from Britain to the U.S. Additionally, he stated that the current global financial situation has strained the EU and has increased the tension between the U.S. and China. During the recession, James noted, China has emerged as an important creditor and aided in maintaining the stability of the global economy.
James stressed the need for international financial institutions, such as the World Bank and IMF, to change their policies to reflect the current world economy and the distribution of economic power. Measures must be taken to modify the current global economic system to reflect changes and maintain stability.