## Why the Global Order Failed

## Source details

**Canonical URL:** [Why the Global Order Failed](https://www.imf.org/en/publications/fandd/issues/2026/06/book-review-why-the-global-order-failed-meg-rithmire)

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## Bibliographic details
- Authors: MEG RITHMIRE
- Published: May 19, 2026

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### Overview
- Less than a minute(0 words) Read
- A feedback loop between economics, domestic politics, and geopolitics is spiraling out of control
- MEG RITHMIRE is a professor at Harvard Business School.
- Opinions expressed in articles and other materials are those of the authors; they do not necessarily reflect IMF policy.

### Core findings and analysis (The Doom Loop)
- Book: The Doom Loop: Why the World Economic Order Is Spiraling into Disorder — Eswar S. Prasad
- The system imploded because it could not adapt to its own contradictions and deficiencies.
- The global order rested on tenets: Democracy is self-correcting, markets know how to allocate resources and impose discipline, the rules ensure fair play.
- Common explanations for the order’s decay include the rise of China, populist leaders, and technology that reshaped public discourse and concentrated power.
- Prasad’s alternative diagnosis:
  - China’s successes demand rethinking which political institutions work best.
  - Climate and technology challenges reflect the hubris and irresponsibility of dominant countries.
  - Market forces generate more debt and fragility than discipline.
- These failures form negative feedback loops between economics, domestic politics, and geopolitics that are “spiraling out of control and becoming destructive on every front, turning into a doom loop.”
- Today's policy tools and novel technology offer no promise of stability; central bank digital currencies, artificial intelligence, great-power competition, and industrial policy are described as problems, not solutions.
- Repairing existing institutions is insufficient; new and better institutions are required to achieve a stable world order.

### Policy recommendations and prescriptions
- International institutions such as the IMF and World Bank must apply their rules more fairly and embark on reform.
- Middle powers must choose long-term responsibility over quick fixes.
- Chief executives must put social responsibilities above short-term profits and pressure politicians to pursue equitable policies and build bridges with other countries.
- Voters must elect visionary leaders capable of managing the transition away from economic, political, and legal systems that have outlived their usefulness.
- As Prasad writes: “We must strive to put in power leaders committed to long-term improvements in people’s lives and capable of managing the difficult transition away from economic, political, and legal systems that have outlived their usefulness.”

### Book and publication details
- Reviewed by: MEG RITHMIRE
- Review title: Why the Global Order Failed
- Book title: The Doom Loop: Why the World Economic Order Is Spiraling into Disorder
- Book author: Eswar S. Prasad
- Publisher: Hachette
- Location: New York, NY
- Year: 2026
- Length: 368 pp.
- Price: $32
- Context note: “Uncertainty” was the primary concern of US CEOs, according to a January 2026 survey.

*F&D Magazine — June 2026*

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_Source: https://www.imf.org/en/publications/fandd/issues/2026/06/book-review-why-the-global-order-failed-meg-rithmire_