Reviewer IPE Group 1-3 PDF

REVIEWER (IPE) I. The History of IPE INTERNATIONAL POLITICAL ECONOMY 1970s scholars and decision makers focused (IPE) – focused on economic and political more on economic issues. issues....

REVIEWER (IPE) I. The History of IPE INTERNATIONAL POLITICAL ECONOMY 1970s scholars and decision makers focused (IPE) – focused on economic and political more on economic issues. issues. Macroeconomic Policy Adjustment in - politics is about getting the power when, Interdependent Economies (1968) where, and how - Richard Cooper stated that the - economics is about the allocation of countries need to open cooperation link scarce resources between them because the balance of Second World War many new countries payments of each country is very emerged and granted independence. vulnerable to a large number of shocks Third World (developing countries) many new and disturbances. countries are weak and bottom of the structure Robert Keohane and Joseph Nye elaborated of the global economy. their analysis in a book called Power and Why IPE Exist? Interdependence (1977), new era in - the inherent interconnectedness International Relations had arisen and it could between the two is politics influences no longer be understood solely as an market through policies, and the market international competition for power. influence manifest in policies Rare earths – seventeen elements and mixed Tending the problem and consequences into 200 types of minerals.  relying only on economic or political forces - rare earths are not that rare, but it is just to understand or address issues in because the mining, extracting, and international relations is insufficient processing are very complicated and - economics overlooks political factors requires a high cost and time- that shape international economic consuming in management. relations United States and Japan were the countries that  The Consequence: This trade are very dependent on imports reporting this conflict caused disruptions to global action to the World Trade Organization (WTO). supply chains, increased costs for It greatly affected both countries because China businesses and consumers, and produced 97 percent of the supply in 2010. created economic instability in both Japan and the United States interpreted that countries and the world. China can be the potential threat to national  Trade Policies: The US imposed security and might can against trade norms in tariffs on Chinese goods due to the future by using their power. concerns about unfair trade Japan gave subsidies to corporations to help practices and intellectual property them develop rare earth recycling processes theft. China responded with its and signed new deals with other companies like tariffs on US products Vietnam, Australia, and Kazakhstan to jointly develop new rare earth mines. - politics prioritizes the relationships United States, the Molycorp Company mining between states and the distribution of reopened rare earth mines in Mountain Pass, power California that had been closed since 2002.  The Consequence: China's Back to the capturing the fishing ship incident extensive territorial claims and the occurred near the Senkaku Islands, China used construction of artificial islands “the rare earths” as a way to try to weaken have escalated tensions, leading to Japan’s position on the islands confrontations and a military From this case, we can see that every economic buildup in the region decision can affect the politics of the two or more  Resource Competitions: The South countries involved—vice versa. China Sea is rich in natural In the interdependent and globalized economy, resources and a vital maritime trade states are willing to play a risky role to advance route. The competition for control their economic and security interests. over these resources has led to geopolitical conflicts II. The State, Market, and Society IPE – will show us the economic issues in the international system. - Balaam and Dillman (2010) stated that  the subjects involved in this study were for women the state, market, and society. - Change: Activist efforts leading to legal State – has power to make decisions about the reforms distribution such as money, products, security, Shark finning and environmental impact and innovation. - Problem: Illegal shark finning affecting - the state makes rules to how markets marine ecosystems and societies achieve their goals in - Impact: Disruption of underwater food global economics chains and local economies - while the state makes the decision, so - Change: Policies to limit shark fishing the market will distribute the resources 2008 US FINANCIAL CRISIS among individuals, groups, and nation- - Problem: Financial crisis caused by states. domestic and systemic problems Market – not just a place where people buy or - Impact: Global economic instability exchange something with the producer, but it is - Change: Government bailouts to also a driving force that shapes human behavior stabilize the economy (Balaam and Dillman 2014). III. The Roles of Theories - The market distribute the resources Theories help us to see a variety of meaningful among individuals, groups, and nation- patterns in a very complex IPE studies. states. - theories simple and clear description in - The market is often regulated by state seeing a problem that occurs in the policies and international agreement. It world of IPE. is also a driving force that shapes 1970 IPE emerged as a main field of study in human behavior. realism, liberalism, and Marxism were only the - state and market do not exist in a three dominant perspectives. But along with the social vacuum and there are always globalization and the development of an many social groups or transnational increasingly rapid era made many scholars, groups. They also play the main roles in professors, and researchers began to criticize shaping global economic behavior. the classical theory. This study focuses on international actors and - These thoughts eventually gave birth to issues – IPE is used to explain many problems new theories, such as feminism, such as hunger, gender equality, climate constructivism, and environmentalism. change, and shark hunting. liberalism can provide the right solution - IPE is how political forces states, regarding the Britain's Corn Law problem. international organizations, multinational - liberalism believes that politics and corporations, individuals, affect the market economics must be separated in order dynamics and how the implications of to achieve the welfare of society. economic interaction on the political - liberalism, the state should not need to process take part in market movements. Societies can influence the state in deciding or  International Political Economy lies in changing a policy. individual freedom and is free from all - Society actively shapes and supports obstacles that occur in the market. both the state and the market through - Another case with liberalism which various means, including public opinion, argues that to achieve shared advocacy, consumer behavior, and prosperity, politics and economics must cultural values. be separated. - besides the issue of capitalism, IPE also Britain's Corn Law is detrimental to the British discusses the environmental problems societies, especially those who work as farmers. that have occurred lately. - This law allows the government - For example, the shark finning cases (parliament) to interfere in market where humans catch sharks illegally for activities. their fins. Realism states that politics and economics are Case Studies very closely related and cannot be separated Gender Inequality in Saudi Arabia from one another. - Problem: Low female employment due Critical theories emerge, one of which is to legal restrictions environmentalism which criticizes that the - Impact: Economic and social limitations theories that exist are too human-centered - anthropocentric to protect nation interests. - so that every economic activity Mercantilism (16th-18th century) undertaken no longer pays attention to - Encouraged exports, restricted imports the impact of damage to our to build national wealth. environment. - Government supported local industries - Feminism, Constructivism are all also through tariffs, monopolies, and under critical theory. subsidies. theory of feminism, we can see that there is still - National wealth tied to political and a gender bias. military power. - Zero-sum competitions: One nation’s REALISM PERSPECTIVE: CHINESE POLICY gain is another’s loss. LIMITING EXPORT OF RARE EARTH - Realists view international trade as an (GROUP 2) Rare Earth China is a new super power by showing - rare earth metals & rare earth oxide superiority in several economic sectors - the seventeen rare metals that usually - foreign exchange reserves and export mixed into 200 type of mineral value - 17 Rare Earth Metals (Reuters 2019) - In 2012, two sector became the largest Lanthanum, Cerium, in the world and one of the largest Praseodymium, Neodymium, export commodities in the world Promethium, Samarium, Europium, - Chinese economy had taken place Gadolinium, Terbium, Dysprosium, since the leadership of Deng Xiaoping Holmium, Erbium, Thulium, in 1978 when he launched an economic Ytterbium, Lutetium, Scandium, and reform program that combines elements Yttrium of socialism with a more significant role Rare Earth In for markets and private ownership. - superconductors, hybrid cars, wind - Xiaoping also created an "open door" turbines, catalysts in cars, oil refineries, program whereby the barriers to monitors, lasers, catalytic converters, international trade and finance was fiber optics, lasers, and glass polishing. lowered, opening China to global - often used by people every day as a life markets and foreign investment necessity, including the memory - In 2001 China officially became a contained in computers, televisions, member of the WTO, and it had an DVDs, rechargeable batteries, impact on China's rapid economic cellphones, magnets, and neon lights growth - Neodymium and dysprosium, are essential to use in electric vehicles, for I. The Rise of China nuclear installations usually used in Timeline nuclear and counter detectors, nuclear 1927 China's scientists discovered rare earth in control rods. Also, it used in defense Bayan Obo systems, and no defense system in the 1957, China started the production of these rare world such as jet engines, missile earth elements. guidance systems, satellites, as well as 1990s-2000s: China strengthened its global in lasers market position, forcing U.S. competitors to halt Rare Earth’ s Recognition operations. - 1st – countries such as the unted states 2010: China temporarily stopped exporting rare and china use this for their military earth elements to Japan, showing its power over equipment. (Veolia 2019) global supply. - 2nd – making high strength low alloy Post-2012: Tensions arose over China’s rare (HSLA) steel, stainless steel, super earth export policies, leading to a WTO ruling alloy, and high carbon steel. against it - 3rd – ability to provide strength, History of Realism hardness or increase heat resistance. Realism – Focuses on state security and power. (example, magnesium and aluminum) Mercantilism – Economic nationalism aiming to Rare Earth’ s Disadvantages strengthen the state by controlling trade. - Requires a high cost and time Both emphasize state-driven policies to protect consuming in management.  - The substitution is not easy to find. Britain Corn Law – is a classic international - Risk of damaging the environment. political economy case study in the conflict China’s Policy on Rare Earth between liberalism and mercantilism, market - As of 1990, the Chinese government and state. declared that rare-earth to be a strategic - government should limit its intervention and protected mineral. on market - China regulates the export of rare-earth - not compatible with Britain’s elements through production quotas. circumstances at the time - In the 1980' s China introduced a policy - a system of tariffs and regulations that to enhance mining operations, which restricted food imports into Great was crucial for national development. Britain, were repealed in 1846 - At the beginning of 2011, the Chinese I. The History of Corn Law government establishment quotas of Corn Law - started from 1660 onward. rare earth to the recipient countries. - corn means all cereal grains, aot, Three types of export quota restrictions on wheat, barley, etc. rare earth: - England is a great producer and - First is to require taxes on all forms of consumer of wheat. export from the materials. - regulations are stirring the import, - Second, set export quotas on the export, and the internal conduct of the amount of content that can export in grain figure mostly in legislation and specific periods. executive orders. - Third, establish certain restrictions on - The purpose of this law is to control the the company that is allowed to export import and export of food and corn. the rare material earth. - Designed to keep corn prices high to Theory, Policy and Solution favor local producers - In recent years, China has asserted - It lasted for more than 30 years. ownership of small islands near those In 1679, Edmund Burke called it “noble grain” waters which are also claimed by it treated like other grains compared to the Japan, Taiwan, the Philippines and cereal, especially with high charge point of the Vietnam. corn law. JAPAN-CHINA CONFLICT 1757 – Royal Burghs of Scotland protested the First injustice due to oats were the staple food - San Francisco 1774 Act - allowing exports of oats, which was - Peace Treaty – after world war II disapproved by Adam Smith. Second 1697-1801 the imports of oats into Great Britain - Potential existence of the oil reserves in were twelvefold the exports in Ireland. the East China Sea Dr. Skene Keith in 1802 - we get a sight of the Third position of the nation's food supply - December 2008 - he wrote the rivalry of oaten bread in - September 2010 Scotland and of barley bread in England Theory of Merchantilism “export more, had dropped import less” 1838, a band of seven Manchester radicals - Mercantilism is an economic theory that founded the Anti-Corn-law Association, states that the welfare of a country is - Anti-Corn-law Association inspired and determined only by the number of financed by the wheat eating assets or capital deposited by the State industrialists of the North. concerned and that the magnitude of - Anti-Corn-Law League had reached its global trade volumes is significant. purpose and gained free trade in wheat. China’s Rare Earth and its Relation to Repeal in 1846 marked the triumph of the Realism consumer and fulfillment in England of that hard- - States’ dependency on rare earth fiscal saying: “consumption is the sole end and - Future of Rare Earth purpose of all production.” - Limitation of Rare Earth Exports II. Corn Laws’ Dynamic in 1815-1846 1815 to 1846, the Corn Laws had a material LIBERALISM PERSPECTIVE: A STUDY influence on prices; but how far, if at all, they CASE OF BRITAIN CORN LAW (GROUP3) raised rates, it is impossible, even approximately, to determine. -In 1846 the Corn Laws were repealed 1815 – introduction of the corn law III. Corn Law’s Outcome in 1815 - After the Napoleonic Wars, British onwards farmers wanted protection from cheap 1815 to 1828 - The Age of Protection: Economic foreign grain. Struggles and Rising Discontent - The Corn Law were passed to imposed 1828 to 1842 – Pressure for Reform: high tariffs on imported grain, causing it Adjustments, Protests, and Growing Unrest to be expensive. This protects British 1842 Onwards, the Repeal and Aftermath – farmers and landowners but became The Repeal of the Corn Laws: Free Trade more expensive for ordinary people. Triumph and Economic Shift 1820 – economic struggle - Corn Law raised wheat import prices - The working class and industrialists significantly; aimed to monopolize hated the law and felt that the markets. Parliament did not represent their - New tariffs introduced, with varied interest. duties based on grain prices. - There were protests and riots, like the - High domestic prices led to increased Peterloo Massacre in 1819, where imports and distress among trade peaceful protesters were attacked by classes. soldiers. - Fluctuations in foreign supply impacted - The industrial middle class, along with local prices, revealing limited benefits of laborers, began demanding political imports. reforms and lower food prices. - Agricultural depression occurred 1828 – creating sliding scale tarrifs despite laws meant to protect farmers. - In response to public pressure, the Corn IV. Theory, Policy and Solution Law were modified with a sliding scale. Conceptual Differences in Liberalism - Tariffs on imported grain would adjust - Varies significantly across contexts. In based on the price of British grain. the US, active government role in social - Although minor reforms were issues. introduced in 1822 and 1828, it failed to - Advocates for minimal state alleviate social class tensions, which interference in the economy. bring about future political and Liberalism's Perspective in the IPE economic reforms in Britain. - Emphasizes individual freedom and 1838 – The Ant-Corn Law League was formed market autonomy. - The Anti-Corn Law League was an - Argues against government industrial and working-class intervention in the market organization that held demonstrations Liberalism's Weaknesses encouraging the abolishment of the - Can widen economic disparities. Corn law. - Disadvantages workers struggling to - The league was an alliance between acquire land while capital owners liberals and radicals. maintain control - Many believed that free trade (lowering Sir Robert Peel's Role in the Corn Law tariffs) would benefit the entire economy - Failed potato harvest in Ireland. by making food cheaper and allowing - Pressure from the Anti-Corn Law industries to grow. League. The main reasons Peel wanted to repeal the - Changing economic conditions. Corn Laws were - Recognized adverse effects on labor THE DOWNFALL: IRISH POTATO FAMINE welfare. - 1840: potato is Ireland's dominant crop. - Sought to prioritize farmers’ interests was primary food source primary amid political tensions. income source Robert Peel’s 1846 repeal attempt aimed to - In 1845, he tried to repeal the Corn address economic pressures, marking a shift Laws because of the Irish potato famine toward free trade and benefiting the wider in an effort to free up more food for economy. them. A fungus caused by wind, rain, and insects spoils half of the potato harvest.