The Effect Of Exogenous Factors On Global Financial Governance

Today's economic globalization has already advanced irreversibly,and with the development of science and technology,the interdependence of the global economy is deepening.The spread of the global market along with the progress of globalization has caused a variety of actors to emerge,affecting the global politics and economic landscape.In particular,the 1997 Asian financial crisis and the 2008 global financial crisis showed the dangers of the spread of global economic crises.Economic crises,which have recurred repeatedly,have raised awareness of the need for international cooperation to prevent and respond to them.This paper draws on the theoretical implications of exogenous factors on institutional change by analyzing the impact of these global financial crises on changes in actors,institutions,and ideas of global financial governance.Global financial crises have affected the course of actors,institutions,and ideas of global financial governance.In terms of actors,the G7 was expanded to the G20,and new international organizations for global financial supervision and standardization were created,including the establishment of the FSF and the FSB.In particular,the rise of emerging economies and emerging networks have drastically changed the makeup of global financial governance actors.In institutional terms,new standards for global financial regulation and supervision have emerged.Such standardization is mainly done by the G20 and executed by the member countries and market actors when enacted by the FSB and regional organizations.In terms of ideas,the economic recession has brought back protectionist ideas,such as the British Brexit and the America First Policies.This paper is divided into five parts.The first part summarizes“what” should be governed within the theoretical framework of historical institutionalism,the method of research,and global financial governance.Furthermore,it summarizes the different views of economic nationalism,economic liberalism,and Marxism on actors,institutions and ideas.Chapter 2 discusses “who” is governing in global financial governance.First,we classify and analyze the actors of global financial governance as either national or non-state level actors,and then we examine the global financial governance that standardized actors have changed after these crises as proposers,enacters,and executives.Chapter 3 discusses“how” institutions govern in global financial governance.The effects of exogenous factors on institutional change are analyzed by dividing the system of global financial governance into the US,G7,and G20 leadership periods.Chapter 4 also discusses“how” ideas govern in global financial governance.This chapter examines the process of forming,spreading,and internalizing liberal norms by highlighting the changes in liberal ideas that govern global economic governance after industrialization.Furthermore,it analyzes the effects of exogenous factors on ideological change.Chapter 5 outlines how the financial crisis has affected global financial governance and what its limitations are.In addition,during the 4th Industrial Revolution,the development of technologies such as “fintech” is expected to change the global financial ecosystem,suggesting that future studies on the effects of technology development on the global financial governance will be conducted.This paper analyzes the pathways and interactions of actors,institutions,and ideas,especially through the path-dependent model of historical institutionalism.The actors,institutions,and ideas of global financial governance are all interconnected.The leading state-based actors in global governance endeavor to spread institutions and ideas from top to bottom,while non-state actors can choose to accept or not to accept them.Non-state actors are also important actors that spread institutions and ideas from the bottom up.Ascrises arose and the actors changed,so did the paths of institutions and ideas.It can be understood that exogenous factors influence the change of the system's path in that a crisis is an element that constantly calls for supplementation to secure the system's sustainability.However,the direction of actors,institutions,and ideas is hardly changed.Liberal ideas,which have been maintained since industrialization,have been an important pillar of maintaining current institutions and mechanisms.Since the 2008 global financial crisis,institutional changes in global financial governance have actually served to complement and even strengthen existing systems rather than reform them.At the same time,the emergence of emerging economies and the development of science and technology,trends which have been increasingly prominent after these crises,are driving this global financial governance into a new phase.I would like to base my research on governance in the future by studying the actors,institutions and ideas of global financial governance.