Answer: The liberal international economic system, also known as the free trade system, has a long and complex history dating back to the 18th century. The basic idea behind this system is that trade between countries should be free and open, and that governments should not interfere in economic activities except to enforce property rights and contracts.
The first significant attempt to implement a liberal international economic system was the British-led repeal of the Corn Laws in the 1840s, which removed tariffs on imported grain and paved the way for greater economic cooperation and integration between Britain and other European countries. In the late 19th and early 20th centuries, the liberal international economic system gained momentum with the establishment of the gold standard, which helped to stabilize currencies and promote international trade.
After World War II, the liberal international economic system was formalized and expanded through the creation of organizations such as the General Agreement on Tariffs and Trade (GATT) and the International Monetary Fund (IMF). The GATT aimed to reduce barriers to trade by negotiating reductions in tariffs and other trade restrictions, while the IMF helped to stabilize exchange rates and promote economic growth.
In 1995, the GATT was replaced by the World Trade Organization (WTO), which expanded the liberal international economic system to include more countries and provide stronger mechanisms for enforcing trade rules. The WTO continues to be the primary forum for negotiating and enforcing the rules of the liberal international economic system.
Throughout its history, the liberal international economic system has faced many challenges and criticisms, including unequal access to markets and resources, environmental degradation, and social and economic inequality. Despite these challenges, the system remains the dominant model for international trade and economic cooperation, and continues to shape the global economy and the lives of people around the world.