Heg maintains peace – key to global economic stability and preventing war

norm to its former allies and enemies aftermath the second world war that led to the formation of the current liberal economic world order provides an explanation as to why in spite of US’ relative decline there is continuity for America’s liberal economic order. The rising challenger China can be considered to have been socialized – it has accepted US led international norms, and participates in various International Organizations. Thus, it makes less sense for China to wage war against the hegemon whose ideals it has internalized. According to this theory, a hegemon creates a stable international economic order characterized by market openness but its decline results in global instability. This hegemonic effect of open trade benefits all participants, especially, weaker states that do not have any burden of public goods. In this sense, global economic stability is born out of hegemony and provides provision of collective public goods and in doing so facilitates a stable international system. The motivation to create an economic openness lie in the interest of the hegemon – it has the largest economy and so benefits most from open markets. In addition, only hegemons have the material capability (political and military) to provide public goods and induce other states to embrace open trade. By virtue of the Hegemonic Stability Theory, the hegemon is an important element in creation and maintenance of the international system. As stated earlier, open trade benefits all participants, even the rising challengers that are accommodated in the system. In contemporary world politics, China is the fastest rising power and it is also reaping the benefits of the open economic order created by the US. By participating in the globalized economy, China has earned a comparative advantage in labor-market and its economy has been growing. On top of that China is an export-based economy and thus, it has very little incentive to jeopardize this benefit by engaging with the hegemon and thereby disrupting the order. In his article, Artur Stein has argued that decline in hegemony does not bring about a complete collapse of the trade regime as long as hegemonic power is committed to economic openness. Taking these two points in consideration, it can be argued that it is not in the interest of China to challenge US hegemony. On account, likelihood of war is averted.