International Political Economy Overview

The study of the complex relationship between markets and states, focusing on how they interact and influence each other in the global economy.

It refers to the lack of a universally accepted definition of IPE. This means that the field's scope and approach can vary.

The idea that definitions are crucial in any field of study because they determine what is considered relevant and legitimate.

The common misconception that IPE primarily focuses on the tension between markets and states, viewing them as opposing forces.

The assumption that individuals acting in their own self-interest constitute the foundation of market activity.

The concept of states as the primary political actors within the international system.

The idea that there exists a clear division between market activities driven by economic forces and state-centered activities based on political considerations.

The recognition that the relationship between markets and states is not always antagonistic. It can also be cooperative or complementary.

A political viewpoint that emphasizes the role of the state in providing the legal framework for contracts and property rights. This view aligns with neoclassical economics.

A political viewpoint that believes the state should actively participate in a wider range of economic activities, beyond just legal frameworks.

One of the two core dimensions of IPE. It focuses on the use of power by various actors, such as individuals, groups, states, international organizations, NGOs, and TNCs. This power is used to influence the distribution of resources.

Refers to the rules and regulations that govern the actions of states and societies in achieving their goals.

How scarce resources are allocated among individuals, groups, and nation-states.

A theoretical perspective in IPE that emphasizes the individual and free markets, advocating for minimal government intervention. It views globalization positively.

A theoretical perspective that focuses on class struggle and sees the state as serving the interests of the capitalist elite. It often criticizes globalization due to its perceived inequalities.

A school of thought in international political economy emphasizing government intervention to promote national economic growth and power. It stresses state role in directing trade, promoting domestic industries, and accumulating wealth.

A concept in economic theory where countries specialize in producing goods and services they can produce most efficiently, leading to gains from trade for all involved.

A modern theory of trade where nations compete based on factors like technology, innovation, and strategic positioning to gain a competitive edge in global markets.

A political economy model where the state actively guides and supports economic development by promoting specific industries, investing in infrastructure, and fostering technological advancement.

An economic perspective advocating for minimal government intervention in markets, favoring free trade, free movement of capital, and limited regulation to promote efficiency and growth.

Policies and practices that restrict international trade, often to protect domestic industries from foreign competition.

Businesses operating across national borders, owning or controlling assets in multiple countries. They play a key role in global trade and investment.

The process of increased interconnectedness and interdependence between countries through trade, investment, and communication.

A state-centered approach to IPE focuses on the role of states in shaping the global economy. It emphasizes the power of states to influence trade, investment, and other economic activities.

The Marxist definition of IPE sees class conflict as the driving force of the global economy. This approach focuses on the power dynamics between capitalists and workers, arguing that states serve the interests of the dominant class.

A concept that recognizes the complex interrelationship between states and markets, acknowledging that they are interconnected and mutually influencing.

The idea that a market economy can't exist without some form of political order, often provided by the state.

The growing recognition of the complex and interconnected nature of global economic and political issues, pushing the field of IPE to expand its focus beyond just states and markets.

A wider definition of IPE that acknowledges the globalized and interconnected nature of the world economy, including the role of non-state actors like TNCs, and recognizing the importance of political order in facilitating a market economy.

A dominant state willing and able to support the stability of the international economic system by acting as a lender of last resort and a consumer of last resort.

The economic theory explaining the Great Depression through the absence of a strong, supportive global leader.

The period in the 1920s and 1930s marked by a severe global economic downturn.

The transition from a dominant power (Great Britain) unable to stabilize the international system to a rising power (United States) not yet ready to take on the responsibility.

A Marxist perspective analyzing the unequal economic relationship between developed (Global North) and developing (Global South) countries.

A proposed development model that emphasizes protectionist policies and industrialization through import substitution.

A development paradigm emphasizing free trade and minimal state intervention in the economy.

The belief that the collapse of the Soviet Union and the rise of free markets marked the end of Marxist ideas.

A system where the government controls all economic activity and resources.

The inherent flaws and contradictions within capitalism that create problems like inequality, exploitation, and economic instability.

Extreme differences in wealth and income distribution between different populations.

When workers are exploited and paid less than the value they produce.

The use of child labor, often forced and exploitative, in the production of goods and services.

The reliance on speculation and risky investments for profit, leading to economic bubbles and instability.