Classical realism and the challenge of global economic governance.

This article examines the future of global economic governance through the lens of classical realism, arguing that the American-led liberal international order is effectively over and unlikely to return. It attributes this decline primarily to a shift in U.S. purpose driven by domestic political changes—such as rising economic inequality, plutocracy, and political polarization—rooted in a transformation from embedded liberalism to a shareholder value-driven capitalism. The paper critiques structural realism for its limited focus on material capabilities and emphasizes the importance of history, domestic politics, and state purpose in shaping foreign policy and international cooperation. Given the diminished U.S. interest in global leadership, increasing ideological diversity among key actors, and the challenges of international anarchy, the prospects for sustained, ambitious global economic governance appear bleak, with future cooperation likely to be ad hoc, limited, and fragile.