The Trajectory of the New World Economic Order Since 1945: Historical Evolution and Global Implications

Abstract

The establishment of the New World Economic Order emerged from the restructuring of the global economic system following the end of the Second World War in 1945. The devastation caused by the war necessitated the creation of international economic institutions designed to stabilise global finance, promote reconstruction, and facilitate international trade. This study examined the trajectory of the New World Economic Order since 1945 by analysing the institutions, policies, and ideological debates that shaped the global economic system. The research particularly focused on the evolution of international economic governance and the implications of these developments for global economic relations between developed and developing countries. The study adopted a qualitative historical research design. Secondary data were collected from academic journals, books, reports of international organisations, and policy documents related to global economic governance. Data were analysed using descriptive and analytical techniques to identify key patterns in the evolution of the international economic system. The findings indicated that the post-1945 economic order was largely shaped by institutions such as the International Monetary Fund (IMF), the World Bank, and the General Agreement on Tariffs and Trade (GATT), which later evolved into the World Trade Organization (WTO). These institutions played significant roles in stabilising the global economy and promoting international trade. However, the study also found that the system generated debates regarding inequality, dependency, and the marginalisation of developing countries within global economic governance structures. The study concluded that the New World Economic Order represented both an instrument of global economic cooperation and a framework that reinforced structural imbalances between developed and developing countries. The study recommended reforms aimed at creating a more equitable and inclusive global economic system.