Lecture 4 On Ipe Theory Of Ir (2) PDF

Lecture on International Political Economy Theory of IR Course: Theories of International Relations Fall 2024-2025 University of Sharjah M. Moniruzzaman  If Economics is about the pursuit of wealth, and Politic...

Lecture on International Political Economy Theory of IR Course: Theories of International Relations Fall 2024-2025 University of Sharjah M. Moniruzzaman  If Economics is about the pursuit of wealth, and Politics about the pursuit of What is power and state. Then- IPE is the complex interplay IPE in the international context between politics and economics, between states and markets  Core IR issues: politics and power War and Peace Power and dominance IPE on the Security and interests Core IR IPE Core issues: power and Issues wealth IPE shifts the attention to issues of wealth and poverty, and to who gets what in the international system  Mercantilism Main Economic Theories of IPE Liberalism Marxism  Economic activity is and should be Mercantilis subordinated to the primary goal of building a strong state m worldview: In other words, economics is a tool of politics, a basis for political power (16th –mid International economy as an arena of 18th conflict between opposing national economic interests centuries) Economic competition between states is a ‘zero-sum game’ where one state’s gain is another state’s loss Mercantilism as a Theory  The theory that a country’s power depended mainly on its wealth to build strong navies and purchase vital trade goods.  When? 16th – 18th C Where? Western Europe- Spain, Dutch, England and France Who? Niccolo’ Machiavelli (1469-1527) Jean Bodin (1530-1596) Antonio Serra (1580-1650) Alexander Hamilton (1755-1804) Friedrich List (1789-1846)  Types of Mercantilism Defensive or Benign Mercantilism: States look after their national economic interests because that is an important ingredient of their national security; such policies need not have overly negative effects on other states Offensive or Malevolent Mercantilism: States attempt to exploit the international economy through expansionary policies: Colonialism, imperialism Commodities: bullion, raw materials, export Cyclical relationship: military/political and economic power  Neo-Mercantilism  Policies to save national interests in the face of free-trade and interdependence  Reserve or alternative source for strategic resources  Export subsidies, import quotas  Defensive mercantilism against globalization  MNCs and International institutions as tools  Export of finished and high-value added commodities  ‘A doctrine and a set of liberal principles for organizing and managing economic growth, and individual welfare free from strict state control’ When? Mid 19th-20th centuries Economic Where? Liberalism England Who? – Adam Smith (1723–90) – John Stuart Mills – David Ricardo (1772–1823)  Based on French and British Liberal political traditions Rational individual actor Economic A belief in progress Liberalism Mutual gain from free Worldview exchange Economic marketplace is the main source of progress, cooperation, and prosperity  Principles of Economic Liberalism Positive-Sum game: every nation gains laissez-faire: freedom of the market from all kinds of political restriction and regulation Cooperation and interdependency among nations ‘Law of comparative advantage’ bring benefits to all participants because free trade makes specialization possible, and specialization increases efficiency and thus productivity  Types of Economic Liberalism Classical Economic Liberalism Adam Smith, JS Mill, David Ricardo Laissez-faire economy Comparative advantage Market and product interdependency  Neo-Classical or Neo-conservatism Combination of invisible hand and state control Keynesian compromise/Hegemonic stability: state to control inflation, unemployment, public goods such as peace, security, sound international payment After 1990: NFI- New Financial Architecture After 2008: heavy government intervention – OEL: Orthodox Economic Liberals – HEL: Heterogeneous Economic Liberal IPE Theory of IR: Marxism It is based on Marxism What is Marxism ? Ideas of Karl Marx (1818-1883) Class struggle Economic determinism Labour Theory of Surplus Value  Marx’s political economy is a fundamental critique of economic liberalism. Marx argue that the economy is a site of human exploitation and class inequality. What is The capitalist economy is based on two antagonistic social Marxism classes: the bourgeoisie- owns the means of production; and proletariat- owns only its labour power. Class struggle and mode of production as economic determinism  Marxist Framework for the Study of IPE First, states are not autonomous; they are driven by ruling-class interests, and capitalist states are primarily driven by the interests of their respective bourgeoisies. This means that struggles between states, including wars, should be seen in the economic context of competition between capitalist classes of different states Second, Capitalism is expansive: there is a never-ending search for new markets and more profit- colonialism and imperialism  Types of Marxism Classical Marxism Marx and Angels: national economies Leninism: international economies Lenin Neo-Marxism: World Systemic Robert Cox Immanuel Wallerstein  IR Framework of Robert Cox Historical Structures ‘a particular configuration of forces’ Three categories of forces that interact: Material capabilities, ideas, and institutions Three different levels: ‘social forces’, ‘forms of state’, and ‘world orders’ IR Framework of Immanuel Wallerstein The World System Theory The WS is built on a hierarchy of core, semi-periphery, and periphery economies. 1. The Core economies: advanced and complex (mass-market industries and sophisticated agriculture).  These activities are controlled by an indigenous bourgeoisie.  Democratic, welfare state, and high standard of living 2. Semi-peripheral are economically mixed; they are a middle layer between the upper stratum of core economies and the lower stratum of peripheral economies. 3. Peripheral economies are at the bottom of the hierarchy; they produce primary goods such as grain, wood, sugar, and so on.  They often employ slavery or coerced labour; what little industrial activity exists is mostly under the external control of capitalists from core countries. Core, Semi-Periphery and Periphery Economies