Abstract
One of the most important events of the 1970s was the end of the era of embedded liberalism; it brought about a change in the world order. Embedded liberalism was weakened, if not undermined, not by neo-protectionism, but by neo-liberalism (Adrian Jones 2005). Neo-liberalism entails heightened trade and financial liberalization internationally and creates competitive pressures which diminish the domestic economic autonomy of states (Adrian Jones 2005). This paper seeks to address the following question: Why did the era of embedded liberalism (1945-1974) come to an end? The aim of this study is not only to evaluate and assess the factors causing the end of embedded liberalism, but also to determine what this concept invented by Harvard's Professor John Gerard Ruggie means. It is essential to understand the main concept before it can be discussed. This paper is divided into four parts. The first part deals with the definition of the term "embedded liberalism". The second part focuses on the establishment, operation, and success of embedded liberalism before the 1970s; and the last part deals with the factors which caused the end of the embedded liberalism.
