International Political Economy Theory of IR

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Questions and Answers

What is the primary focus of International Political Economy (IPE)?

The study of international law and treaties

The complex interplay between politics and economics (correct)

The relationship between domestic and foreign policies

The isolation of political interests from economic outcomes

What does the Mercantilist worldview suggest about economic activity?

It should be focused on individual wealth accumulation

It should serve to strengthen the state (correct)

It is primarily an avenue for international cooperation

It should operate independently of state interests

During which period did Mercantilism primarily dominate economic thought?

Mid-18th to 19th centuries

16th to mid-18th centuries (correct)

19th to 20th centuries

21st century onwards

What notion is central to the Mercantilist perspective on international economic competition?

One state's gain is another state's loss Signup and view all the answers

Which of the following countries was predominantly associated with Mercantilism during its peak?

Spain, the Dutch Republic, England and France Signup and view all the answers

What is a characteristic of Defensive or Benign Mercantilism?

It prioritizes national economic interests for security. Signup and view all the answers

Which of the following best describes Offensive or Malevolent Mercantilism?

Approaches that involve expansionary policies like colonialism. Signup and view all the answers

Which of the following is a feature of Neo-Mercantilism?

Protectionist policies against globalization. Signup and view all the answers

What does Neo-Mercantilism advocate regarding strategic resources?

Creation of reserve or alternative sources for strategic resources. Signup and view all the answers

In which time period did the principles of Liberalism for organizing economic growth emerge?

Mid 19th to 20th centuries. Signup and view all the answers

Which principle asserts that free trade leads to specialization and increases efficiency?

Law of comparative advantage Signup and view all the answers

What is the main critique that Marx has against economic liberalism?

It results in class exploitation and inequality. Signup and view all the answers

Which economist is NOT associated with Classical Economic Liberalism?

John Maynard Keynes Signup and view all the answers

Which type of economic liberalism combines the concept of the invisible hand with state control?

Neo-Classical or Neo-conservatism Signup and view all the answers

What does the term 'laissez-faire' refer to in economic liberalism?

Unrestricted freedom of the market Signup and view all the answers

According to Marxism, which class owns the means of production?

Bourgeoisie Signup and view all the answers

What characterizes the 'New Financial Architecture' (NFI) established after 1990?

Increased state interventions in the market Signup and view all the answers

What is the belief about economic marketplaces in the context of economic liberalism?

They lead to mutual gains and prosperity. Signup and view all the answers

What primarily drives the actions of capitalist states according to Marxist theory?

Ruling-class interests Signup and view all the answers

Which of the following best describes the economic behavior of capitalism as discussed?

An expansive system seeking new markets and profits Signup and view all the answers

What does Robert Cox's IR framework emphasize as interacting forces?

Material capabilities, ideas, and institutions Signup and view all the answers

In Wallerstein's World System Theory, which type of economies are characterized as advanced and controlled by an indigenous bourgeoisie?

Core economies Signup and view all the answers

What is a key characteristic of semi-peripheral economies?

They are a mix between the core and peripheral economies. Signup and view all the answers

Which level in Cox's IR framework refers to tangible entities such as states and institutions?

Forms of state Signup and view all the answers

Which type of economy is at the bottom of Wallerstein's hierarchy and primarily engaged in producing primary goods?

Peripheral economies Signup and view all the answers

What concept illustrates the idea that states are influenced by the competition between capitalist classes from different states?

Ruling-class interests Signup and view all the answers

Study Notes

International Political Economy (IPE) Theory of IR

IPE examines the complex interplay between politics and economics globally, focusing on how states and markets interact.
Economics is the pursuit of wealth, while politics is the pursuit of power and state-building. IPE bridges these two aspects.

Core IR and IPE Issues

Core IR issues involve politics and power, war and peace, power dynamics, security, and national interests.
IPE issues center on wealth, power, and the distribution of resources, including wealth and poverty disparities in the global system. IPE broadens the focus to include wealth and poverty, and who benefits from global economics.

Main Theories of IPE

Key IPE theories include mercantilism, economic liberalism, and Marxism.

Mercantilism

Worldview: (16th - mid 18th centuries). The economic activity of states and trading activities are subordinate to the strong state. Global trade is a zero-sum game (one state's gain is another state's loss). Economics is a tool of politics, a basis for political power.
Theory: A country's power depends on its wealth, used to build strong navies and acquire vital trade goods.
Figures: Niccolò Machiavelli, Jean Bodin, Antonio Serra, Alexander Hamilton, Friedrich List.
Types:
- Defensive/Benign: States prioritize national economic and security interests.
- Offensive/Malevolent: States actively exploit other economies to gain more power.

Neo-Mercantilism

Policies to protect national economic interests in the face of globalization and free trade.
Reserve or alternative sources for strategic resources.
Restrictions on imports and subsidies for exports.
Defensive stance against globalization and multinational corporations.
Focus on exporting high-value goods.

Economic Liberalism

Worldview: (Mid 19th - 20th centuries). A doctrine that organizes and manages economic growth with individual welfare in mind, independent of strict state control. It's based on French and British traditions and focuses on individual actors, progress, free exchange, and the economy's role in global cooperation and prosperity.
Core principles:
- Positive-Sum Game: All participating nations can gain from trade.
- Laissez-faire: Minimal government interference in the market.
- Cooperation and Interdependence: Nations benefit from collaboration.
- Comparative Advantage: Specialization and trade based on differing efficiency levels.
Key Figures: Adam Smith, John Stuart Mill, and David Ricardo.
Types:
- Classical: Adam Smith's laissez-faire approach of free markets and minimal government intervention.
- Neo-Classical/Neo-Conservatism: Blends market principles with some government control and intervention. (e.g., Keynesian economics, managing inflation and unemployment). After 1990: focus on New Financial Architecture, and after 2008: significant intervention in markets.

Marxism (for IPE)

Core Ideas: Developed by Karl Marx (1818-1883) in contrast to liberalism, it examines economic structures as a primary driver of international relations.
Critique: Marxism views the global economy as a site of human exploitation and class inequality.
Capitalist System: Marx argued the system is built on two main opposing classes, bourgeoisie (owners of production) and the proletariat (labor).
Class Struggle: The struggle over resources between these classes is central.
Determinism: Marxist theory focuses on how the economic system (mode of production) shapes social structures and international relations. A key component of Marxist theory.
Surplus Value: The idea that capitalists profit from the exploitation of labor by extracting more value than they pay for the worker's labor.

Marxist Framework for IPE

States' interests aren't independent but driven by ruling class interests.
Capitalism causes states to continuously search for new markets and more profit (colonialism, imperialism)
Competition among capitalist states, including wars, should be understood in the context of economic struggle.

Types of Marxism

Classical Marxism: Analyzing national economies. Marx and Engels - focused on national economies.
Leninism: Focusing on international aspects of capitalism (international economies).
Neo-Marxism: (World-System Theory) Focuses on the global hierarchy of core, semi-periphery, and periphery economies. Robert Cox and Immanuel Wallerstein.

IR Frameworks (within Marxism)

Robert Cox: historical structures shape and constrain possibilities, and this can be applied to political actions.
Immanuel Wallerstein: Focuses on the world-system theory – Core, Semi-Periphery, Periphery economies, characterized by the interaction of these three sets of economies.

Core, Semi-periphery, Periphery Economies

Core: Developed, complex economies (mass markets, advanced agriculture).
Semi-periphery: Intermediate economies between core and periphery.
Periphery: Developing economies – primary goods producers; usually suffer exploitation from core states.

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Description

This quiz explores the International Political Economy (IPE) and its relationship with International Relations (IR). It examines core issues of power dynamics, resource distribution, and significant IPE theories such as mercantilism and economic liberalism. Test your understanding of how politics and economics interplay on a global scale.