THE INTERNATIONAL MONETARY SYSTEM: 
DIFFUSION AND AMBIGUITY

Benjamin J. Cohen 
Department of Political Science 
University of California, Santa Barbara 
Santa Barbara, CA 93106-9420 
 home page: http://www.polsci.ucsb.edu/faculty/cohen

Prepared for a special issue of International Affairs

ABSTRACT
 This essay looks at the dynamics of power and rule setting in the international monetary 
system. I begin with a brief discussion of the meaning of power in international monetary 
relations, distinguishing between two critical dimensions of monetary power, autonomy and 
influence. Major developments have led to a greater diffusion of power in monetary affairs, 
both among states and between states and societal actors. But the diffusion of power has been 
mainly in the dimension of autonomy, rather than influence, meaning that leadership in the 
system has been dispersed rather than relocated – a pattern of change in the geopolitics of 
finance that might be called leaderless diffusion. The pattern of leaderless diffusion, in turn, is 
generating greater ambiguity in prevailing governance structures. Rule setting in monetary 
relations increasingly relies not on negotiations among a few powerful states but, rather, on the 
evolution of custom and usage among growing numbers of autonomous agents. Impacts on 
governance structures can be seen at two levels: the individual state and the global system. At 
the state level, the dispersion of power compels governments to rethink their commitment to 
national monetary sovereignty. At the systemic level, it compounds the difficulties of bargaining 
on monetary issues. More and more, formal rules are being superceded by informal norms that 
emerge, like common law, not from legislation or statutes but from everyday conduct and social convention. 

PATTERNS OF INTERNATIONAL FINANCIAL REGULATION:

A CASE STUDY OF SOVEREIGN WEALTH FUNDS

by Raul Pinheiro Donegá

A THESIS SUBMITTED IN PARTIAL FULFILLMENT OFTHE REQUIREMENTS FOR THE DEGREE OF

MASTER OF LAWS in THE FACULTY OF GRADUATE STUDIES (Law)

THE UNIVERSITY OF BRITISH COLUMBIA (Vancouver) April 2012

© Raul Pinheiro Donegá, 2012

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This BLOG  looks at pensions and their impact on what are called Public Private Partnerships or P3’s these are not really about private funding at all but about two streams of public funding, pensions and government with private capital a third partner.
We will also deal with other pension matters, such as Defined Contribution Plans (DC) vs Defined Benefit (DB) PLANS, the weakness in private plans, the need for pension reform in public pensions to have shareholder rights, directorships and ethical investment directives and policies. 
Finally taking the long view we will show how these funds are forms of evolving social capital that is dominating private capital as we evolve into socialization of capital. 
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