Rules-Based International Order

Overview

For thousands of years, major powers ruled through military force, expanding empires, extracting resources from colonized lands, and settling disputes through conflict—not diplomacy or law. After two destructive 20th-century world wars, leading powers worked with the broader international community to establish a system of institutions, treaties, and norms to create stability and prevent economic chaos and unchecked aggression.

The United Nations was created in 1945 to replace the failed League of Nations and maintain international peace and security. The 1944 Bretton Woods conference established key economic institutions to manage currency, credit, and trade: the International Monetary Fund and the World Bank. The General Agreement on Tariffs and Trade was signed in 1947, which later became the World Trade Organization.

The order is built on the argument that countries—of all sizes and clout—gain more from cooperation under shared rules than from pursuing their interests through force or economic warfare. Since its creation, global trade has grown significantly, extreme poverty has declined, and life expectancy has increased. Critics, however, argue that the institutions were designed to reinforce Western dominance and that the West's promotion of liberal democracy in rival great powers' spheres has caused more conflict than it has prevented.

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