Hegemonic Stability Theory

• The Theory of Hegemonic Stability is important in understanding the stability and instability in the international political economy.
• According to the theory of hegemonic stability, the role played by a hegemonic power is very importance in creating stability in international politics and economy.

Role of Hegemonic power

• Without strong hegemonic power, the creation of international stability is impossible.
• Only a hegemonic power can establish the international rules that facilitate orderly exchanges amongst countries and should punish transgressors with predictable penalties.
• A transgressor should be punished because, without punishing, it might threaten the existing hegemony.
• The successful punishment of any transgressor is also a symbol of strength of a hegemonic power.
• Hegemonic stability theorists agree that the hegemonic state has both the motivation and the capability to create and maintain open regimes.
• The hegemonic state is able to offer both bribes and threats.
• Those who emphasize bribery tend to treat open regimes as collective goods.
• Those who emphasize coercion worry less about benefits to other members of the system and more about the benefits flowing to the hegemonic state.

Hegemonic Powers at International level

• After World War I and until the outbreak of World War II in 1939 (the period from 1919-1939) the international political-economy system was changed.
• Germany had been defeated in World War I, but Great Britain was too weak to play the role as a hegemonic power.
• During this period international relations and the international political economy was not stable because of the absence of a hegemonic power to dominate and regulate the international system.
• The United States refused to take the role of the new hegemonic power to replace Britain during this period of 1919 to 1939.
• Thus from early twentieth century until the emergence of a new hegemonic power after the end of World War II was a period of ‘absence hegemonic’ with no hegemonic power to control the international stability.