ISPOLEC Midterms PDF - Theories of IPE, Realism, Liberalism

B. Theories of IPE I.​ Traditional Theories of IPE: REALISM AND LIBERALISM Realism According to Cohn Basic Tenets of Realism -​ Concerns political security more than economic issues. -​ The state is an anarchic system; absence of central authority. International relations is a se...

B. Theories of IPE I.​ Traditional Theories of IPE: REALISM AND LIBERALISM Realism According to Cohn Basic Tenets of Realism -​ Concerns political security more than economic issues. -​ The state is an anarchic system; absence of central authority. International relations is a self-help system. -​ Principal actor: THE STATE. Goal is to preserve national sovereignty and pursue national interests. They are rational-unitary actors. -​ Security Dilemmas: States bolster security in fear of others a.​ Zero-sum game: One group's gain is the loss of another. b.​ Redistribution of power within the capitalist system. Relationship between Politics and Economics -​ The economy is a creature of the state. Distribution of political power has an effect on the international economy. Globalization -​ Economic processes that do not affect the structure. -​ It only increases if they permit it. They can open and close markets to improve market relations with weaker states. -​ There is no evidence that undermines state control. Keohane and Nye’s Distinction with Realism and Complex Interdependence Three Characteristics of Complex Interdependence 1.​ Multiple channels connecting societies both formal and informal. -​ Interstate: Normal channels assumed by realists. -​ Transgovernmental: States are coherent units. -​ Transnational: States are only units. 2.​ Absence of a hierarchy for issues. Military security does not dominate the agenda and the distinction of domestic and foreign issues are blurred. 3.​ Reduction of military force. It is irrelevant in solving economic issues. Political Processes of Realism and Complex Interdependence According to Keohane and Nye’s Distinction Political Processes Realism Complex Interdependence Linkage Strategies Linkages will reinforce Less congruence since hierarchy. It will reduce military force is ineffective. differences in outcomes. Those made by weak states will erode rather than reinforce hierarchy. Agenda Setting Potential agendas are Potential agendas are set by shifted by the power international and domestic balances and threats. They issues created by economic will only consider other growth and sensitivity issues if it affects security interdependence. and military power. Role of IOs Roles are only minor, and They will set agendas and limited by state power and choose the forum for an issue military importance. to be mobilized. Goal of Actors Dominated by military It is determined by issue security. areas. State Policy Instruments Military is the most Power resources specific to effective. issue areas are the most relevant. Mercantilism 1.​ According to Cohn -​ A state could use its gold and silver to increase its power by building up its armed forces, hiring mercenaries, and influencing its allies. 2.​ Hamilton’s Report on Manufactures -​ Extensive state regulation in its interests of national strength. -​ Policies of political and economic self-reliance and the building of wealth through exports. -​ Strength is measured by gold hoard since trade debts were resolved in gold. -​ Goal of the Report: To call for promotion of national self-reliance.  SUMMARY OF THE REPORT BY HAMILTON Spend public funds to encourage the emergence of manufactures and protection from foreign competition. Encourage the US to be a strong manufacturing nation to preserve independence. Possession of these is necessary to the perfection of politics and as well the safety to the welfare of society. Important Principles and Circumstances 1.​ Division of labor 2.​ Extensive use of machines 3.​ Additional employment to classes of the community 4.​ Promoting emigration from foreign countries 5.​ Greater scope for the diversity of talents 6.​ More ample and various field for enterprise 7.​ Securing a more steady demand for the surplus produce of soil. Means as Stated by Hamilton 1.​ Protection of foreign articles: enhance tariffs. 2.​ Prohibiting exports: securing a cheap and plentiful supply for the workmen. 3.​ Exemption of manufacturing materials: protecting infant industries until they can mature to compete with more established firms. 4.​ Premiums: rewards to stimulate efforts. 5.​ Encourage new inventions which relate to machinery: means include privileges. Krasner on Sovereignty The issue of globalization undermines traditional notions of state sovereignty. He argues that the process is narrowing the scope of state control but maintains that such control is expanding in other spheres. The sovereign state will endure and adapt as is always to changing circumstances. 1.​ Just About Dead: WRONG -​ It is still attractive. -​ International recognition guarantees access to IOs and finance, as it offers status to world leaders.  -​ Economic globalization alters state authority. 2.​ It is the Final Authority: NOT ANYMORE, IF EVER -​ They are linked with autonomy and independence. They are free to choose their own government. -​ Now linked with transboundary movements. -​ They can enter into international agreements. 3.​ Westphalia introduced the Modern State: IT CAME LATER -​ It was a medieval document and was antithetical to the Westphalian system. 4.​ Universal Human Rights are a Challenge: WRONG -​ Motivations have hardly changed. -​ Generally, the weak have acceded to the preferences of the strong. 5.​ Globalization undermines Control: NO -​ States are better now at responding to economic problems than in the past. -​ It has become easier for states to manage the flow because they have developed strategies that cushion the impact of international trade. 6.​ It Changes State Control: YES -​ Reach has both increased and contracted in many. -​ Government activity can be seen in taxation and government expenditures. 7.​ NGOs are Nibbling at National Sovereignty: TO SOME EXTENT 8.​ Sovereignty Blocks Conflict Resolution: YES, SOMETIMES Evans on States and Industrial Transformation States’ role for promoting industrial growth and how structures and roles contribute to such. States and Economic Transformation -​ War making is one justification for the state’s monopoly on violence. -​ The state runs a protection racket on its own behalf. -​ Economic behavior meant eventual geopolitical decline. It is now a source of legitimacy on behalf as well as means to accomplish the goals of military survival and internal order. -​ Process of capital accumulation. Liberalism According to Cohn Basic Tenets of Liberalism 1.​ Orthodox: Promotion of negative freedom or the market to function with minimal state interference 2.​ Interventionists: The free market does not always produce equal gains. Thus, they support some government involvement to promote more equality. 3.​ Institutional: Outside involvement is necessary. Favors strong institutions like the WTO, and the IMF They see politics from the bottom-up or which individuals and groups seek to achieve their goals through political means. In IPE, they give primacy of place to the individual consumer, firm, or entrepreneur. They have a positive view of international economic relations as currently structured. They see it as mutually beneficial, or a positive-sum game if they operate freely. Adam Smith, orthodox liberal: The Invisible Hand Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is in his own advantage. The Relationship Between Politics and Economics Economics and politics as separate and autonomous spheres of activity. -​ Orthodox: Governments should not interfere with transactions and their role should only be to create open environments in which firms can express their economic interests. State should not prevent competition. Causes and Effects of Globalization -​ Attribution to market forces and technological changes. a.​ The new international financial regime was built by technology. b.​ Governments can do nothing to stop the globalization process because advances are rapidly shrinking time and space. Their choices will only make it more costly for them to close economies. Keynesian Liberalism Orthodox liberals overestimated the degree of convergence between self-interest and public interest. -​ A market generated equilibrium might occur where labor and capital are underutilized. -​ Called the use of fiscal policies to increase demand and supported government investment when necessary. -​ Emphasizing full employment.  -​ Limits on imports are sometimes justifiable to bolster domestic employment. He calls on the state to help combat unemployment. He favored government intervention to rescue and revitalize capitalism. It later gives rise to interventionist liberalism. II.​ Critical Theories of IPE: Marxism, Dependency, World Systems, Neo-Gramscian Basic Tenets of Historical Materialism It examines structural exchange in terms of class and sometimes North-and-South struggles and examines the role of economic material in shaping society. Classical Marxism Class struggle between the exploiter and the exploited. The modern bourgeois society has established new classes and new conditions of oppression in new forms of struggle. -​ Division of labor to enhance profit, brought about the exchange of commodities. a.​ Laborers are divided according to qualities which develop new powers that are fitted for special functions (Communist Manifesto) -​ Exploitation of advantages to stimulate manufacturing. -​ Economic relations are conflictual with one exploiting the other. Causes and Effects of Globalization The bourgeoisie promote it because it increases their profits and gives them dominance over the proletariat. Hobson Marxism vs Lenin Marxism HOBSON LENIN Three problems of capitalist societies: Imperialism is an evitable outcome of 1.​ Underconsumption by workers capitalism. It is the highest form of 2.​ Oversaving by capitalists capitalism. They continued to have control 3.​ Overproduction over their former colonies. Workers are paid low wages which give them It gave superprofits to capitalists and higher low purchasing power. wages to workers. Used by the capitals to bribe the working class. Dependency Theory according to Cohn -​ Structural obstacles to LDCs development. They suffer from declining terms of trade (Raul Prebisch). a.​ The South is hindered by its dependence on primary product exports because they demand more finished goods as incomes increase. b.​ The global capitalist economy is responsible for constraining South development.  -​ Foreign control over means of production -​ They became underdeveloped as a result of their involvement with the core countries. Structure of Dependence by dos Santos A situation in which the economy of a country is conditioned by the development and expansion of another economy to which the former is subjected. Three Forms of Dependence 1.​ Colonial -​ Trade exports in nature. -​ Commercial and financial capital in alliance with the colonial state dominate economic relations through trade monopoly. 2.​ Financial-Industrial -​ Domination of the big capital in the hegemonic center and its expansion abroad through investment in raw materials for consumption in the hegemonic center. 3.​ Technological-Industrial or Multinational Dependence -​ Created by multinational corporations. -​ Internal market of underdeveloped countries. They obtain better terms for the same product. World Systems Theory according to Cohn The entire world system, including relationships among core states and the decline of hegemons. Core states are strong while peripheral states are weak. States should not be detached from their position in the world economy. -​ Core -​ Periphery -​ Semi-periphery: Some LDCs were still industrializing Types of World Systems 1.​ World-empires: Common political system 2.​ World economies: Many political systems Neo-Gramscian Analysis 1.​ Hegemony as a Class  -​ Not hegemonic if ruled only by coercion because its power does not extend throughout society and can be overthrown. 2.​ Historic Bloc -​ Congruence between state power, ideas, and institutions that guide society and economy. -​ It was difficult for subordinate groups to replace the bourgeois historic bloc because it is supported by the power of ideas as well as physical power. -​ Counter-hegemony: solution to challenge capitalism. The decline of government economic benefits in this age of competitiveness could induce subordinate classes to develop this. 3.​ Attaining Hegemony: Legitimacy, why does capitalism endure? -​ The dominant class must gain the active subordinate class on the basis of shared values and ideas, and material interests. 4.​ Robert Cox’s Neo-Gramscian Analysis -​ Transnational historic bloc: composed of the largest MNCs, banks, and business groups. -​ Use of hegemony in a cultural sense to connote the complex of ideas social groups use to assert their legitimacy and authority. III.​ Normative Theories of IPE: Constructivism. Feminism, Environtalism Constructivism according to Cohn Rules, cultures, and ideals shape the IPE system. Material forces must be understood through the social concepts that define their meaning for human life. -​ Co-constitution of agents and structures because states can alter the norms of international life. Epistemic Community -​ A network of professionals with recognized expertise in a particular domain and an authoritative claim to policy-relevant knowledge within that domain. -​ These help states define their interests. Feminism according to Cohn Mainstream perspectives are inattentive to gender issues. -​ Gender is a constructivist concept. -​ IPE ignores the role of women. Environmentalism according to Cohn IR devoted little attention to the environment but it is more central as scarcity, global warming, and environmental degradation have global consequences.