What is the significance of the saying "Babylon the Great has fallen" (Revelation 18:2)?

from the old testament

• Long before ancient Babylon, there was the Tower of Babel incident (Genesis 11:1–9). It was there that humanity gathered together in rebellion against God (Genesis 11:4). God judged them by confusing their language, resulting in the city being called Babel (Genesis 11:9), later known as Babylon. Therefore, that area has always been theologically significant, representing mankind’s evil.
• Indeed, ancient Babylon was a significant historical enemy of Israel. God used her to capture Judah, with Daniel showing how she and her rulers were marked by arrogance (e.g., Daniel 4:30; 5:20). Because of that area’s recurring significance as a place of wickedness, Babylon became a theological counterpoint to Israel and was used to describe arrogant and anti-God systems. Additionally, Daniel hints at her future existence using similar descriptions of a kingdom with seven heads (Daniel 7:7), led by a particularly boastful ruler (Daniel 7:8, 25) who is later called “the Man of Lawlessness” (cf. 2 Thessalonians 2:3–4) and the Antichrist (1 John 2:18).
• Given its theological significance, it was thus not uncommon for the prophets to say things such as “flee from the midst of Babylon” to warn Israel to flee sinful world systems in general (e.g., Jeremiah 51:6–10).
• The title, “Babylon the Great,” comes from Daniel 4:30, which reads, “Is this not Babylon the great, which I myself have built as a royal residence by the might of my power and for the glory of my majesty?” (NASB). It emphasizes its self-aggrandizing, arrogant greatness. Like Babylon, the superpower of its time that conquered at will, the final “Babylon the Great” will also rule the world.
• In addition to references to Babylon, Revelation 18 also alludes to Tyre’s destruction. Tyre was a greatly sinful and proud city (Ezekiel 28:2–5). Isaiah 23–24 and Ezekiel 26–27 both prophesy its complete ruin, using language similar to that in Revelation 18. Tyre, then, serves as a historical example of what will happen to the final world system, one that will be as apparently indestructible as Tyre once was.

from the new testament

• Peter, writing from Rome, called her “Babylon” (1 Peter 5:13). Likely writing during the time of the wicked Emperor Nero, by using the theologically loaded word ”Babylon,” he was making a statement about the type of system Rome represented.
• Revelation, using symbolic language, gives several descriptions of the future “Babylon the Great.” It refers to it as a “great prostitute” (Revelation 17:1), “with whom the kings of the earth have committed sexual immorality” (Revelation 17:2). She is described as “a woman sitting on a scarlet beast that was full of blasphemous names, and it had seven heads and ten horns (Revelation 17:3) and “was arrayed in purple and scarlet, and adorned with gold and jewels and pearls, holding in her hand a golden cup full of abominations and the impurities of her sexual immorality” (Revelation 17:4). The “woman” sits on “the seven heads are seven mountains” (Revelation 17:9) and she is said to be “the great city that has dominion over the kings of the earth” (Revelation 17:18). While identifying the “woman” is difficult, the reference to seven hills leads some to believe this city is Rome, the fourth city in Nebuchadnezzar’s dream (cf. Daniel 2:40–43). However, by being called “Babylon,” she is characterized as the arrogant and wicked Babylonians. Thus, she may be an amalgamation of Rome and Babylon, or of systems like those of the two historically significant cities. Note: Other views exist, including that this woman represents the apostate church or is a literal, rebuilt Babylon.
• Regardless of the specific identification, the fall of “Babylon the Great” represents the fall of humanity’s world system. Of that city, it is said that “For all nations have drunk the wine of the passion of her sexual immorality, and the kings of the earth have committed immorality with her, and the merchants of the earth have grown rich from the power of her luxurious living” (Revelation 18:3). Thus, when that city or world system falls, the entire world will mourn both the loss of the city (Revelation 18:9) and the loss of the wealth she generated for them (Revelation 18:15, 17).
• Unlike the fall of other great nations and empires, such as historical Rome, the destruction of the city will be swift: “And they threw dust on their heads as they wept and mourned, crying out, “Alas, alas, for the great city where all who had ships at sea grew rich by her wealth! For in a single hour she has been laid waste” (Revelation 18:19). This highlights their demise as directly from God (cf. Daniel 2:44–45).
• While not the final judgment upon mankind, the fall of Babylon is among the final bowl judgments (Revelation 16:17–21) and shortly precedes Jesus’ judgment against sinful humanity (Revelation 19:11–21).

implications for today

Revelation ironically calls the future world system “Babylon the Great.” Certainly, it will be large and pervasive, but in a single hour, it will also be gone. Its “greatness” will come to the same end as all world systems: nothing.

In Genesis 11, at the Tower of Babel, humanity determined to build a tower to the heavens. Yet, the LORD ironically had to “come down” to see it because their “greatness” was so small (Genesis 11:5). In Psalm 2, we read that “the kings of the earth set themselves … against the LORD and against his Anointed” (Psalm 2:2), to which the LORD laughs because their “great plan” is nothing. And as for the final world system, a time when humanity expresses its greatness through great rebellion, God will cast it down without ceremony, and it will be gone.

Humanity and its collective will, intellect, and evil are no match for God. Because of this, believers are neither to be anxious about the final world system nor to think that if we just get the right people into power, things will be great. Biblical history shows us that even the most righteous kings sin (cf. 2 Samuel 11). Since everyone is sinful (Romans 3:23), sinners lead every world system, and thus, at some level, every world system reflects humanity’s sin.

Our hope should not be in world systems but in Jesus, the eternal King. He is waiting for the time the Father has chosen, and then will come in righteousness to make war with the nations and destroy His enemies (Revelation 19:11–21). At that time, unbelievers will cry because “Babylon the Great has fallen!” while we will joyfully proclaim, “The king of kings and Lord of lords has come!”