280 final Flashcards
(1)Please summarize the argument of Barnett and Finnemore in a concise paragraph (about interational organizations and their role and importance). (2) What is their critique of the main institutionalist school of IR (what we call “rational institutionalism” or the “functional theory or regimes”)? (3) Please summarize Mearsheimer’s critique of institutionalism as well. (4) What are the key assumptions that underlie realist theory?
Meirsheimer:
Assumption of rationality and self-intrest
States are drive through self intrest and their behavior is shaped by he anarchic structure of the international system.
Institutionalism assumes states are rational actors who are seeking to maximize their interests through cooperation.
Balance of power
International institutions are driven by role of power dynamics and how states are driven by considerations of relative power and security.
Idea that states secure their survival through preventing one state from gaining enough military power to dominate others.
Istitutions as Epiphenomena
Institutions are not the primary drivers of state behavior but rather reflect the power relations amongst states.
Security dilemma
Even well-intentioned states engage in cooperative institutions may inadvertently provoke insecurities amongst other states because actions taken to enhance security are perceived as a threat by others which creates a cycle of mistrust and conflcit.
Can be offensive or defensive.
State primacy over institutions
Institutions have impact on state behavior.
Challenges the idea that institutions have an autonomous impact on state behavior and he argues that instead it should be a focus on motivations and strategies of individual states.
Historical realism
Emphasizes enduring importance of power politics and anarchci nature of the international system. Believes that a relastic understanding of state behavior requires acknowledging the pervasive role of power in shaping global governance.
Key assumptions that undery the realist theory:
System is anarchic
-No overarching authority or world government to enforce rules and order and with an absence of higher authority, states are left to rely on their own capabilities and strategies to ensure their survival and security.
States possess offensive military capability
-Military is crucical tool for states to secure intrests, protect sovereignty, and maximize their power.
States cannot be certain of others intentions
-States can be selfish due to anarchy and believe states are each rational which drives self-help so a state is most likely to prioritize self
Motives driven by survival (rational)
-States rely on self-help mechanisms to ensure survival and this includes developing military capabilities, alliances, and other strategies to protect against potential threats.
States are rational (can behave aggressively)
-States are rational acts who make decisions based on careful calculation of costs and benefits while the definition of rationality may vary relaists general argue that states act in a way to maximize interests and security.
Barnett and Finnemore:
They argue that international organizations play a crucial role in shaping and diffusing norms and rules globally.
-Institutions are not merely reflections of state interests but are active agents that contribute to the creation of dissemination of global norms.
International organizations influence state behavior and promote specific rules and standards which contributes to development of global governance.
Their critique of institutionalist school of IR (rational institutionalism and functional theory or regimes)
Challenge theory that international institutions exist solely to serve state interests.
Argue that rational institutionalism tends to oversimplify the role of institutions by viewing them as tools for states to achieve predetermined objectives.
Emphasize that institutions are dynamic entities that actively participate in the construction and dissemination of norms which challenges the nation that their function is driven solely by the state’s rational pursuit of self interest.
Have a more nuanced understanding of international organizations and believe this view is necessary to capture IO’s impacts on shaping global norms and governance structures.
(1) What is the basic rationale for maintaining the IMF? What purposes does it serve in the modern international financial system? (2) Should it have anticipated the global financial crisis of 2008-2009 and, if so, what should it have done about it? (3) According to Barnett and Finnemore, what is the source of influence of the IMF, and does the recent evolution of the organization support their argument?
Basic rationale for maintaining IMF:
IMF was established in 1944 to promote international monetary cooperation and exchange rate stability, facilitate balanced growth of international trade, provide resources to help member countries in need, and contribute to global economic stability.
Maintain IMF to prevent and adress financial crises by providing policy adivce, financial assistance, and tehcnical assistance to its member countries who are experiencing financial crises.
Countries seek IMF if they are in balance of payment crises where they do not have enoguh foreign exchange to meet international payment obligations and they want to balance payments. Have a currency crises, where they are facing depreciation of currency or are in high external debt, or are facing structural reform issues.
What purpose does it serve in the modern and international system:
Serves purpose of preventing and adressing financial crises by providing policy advice, financial assistance, and technical assistance to member countries.
Should it have anticipated the global financial crisis of 2008-2009:
Criticism was that surveillance mechanisms should have identified risks associated with subprime mortgages and the interconnectedness of financial institutions.
However data is not always accurate at prodicting future because factors impacting economies worldwide are complex. IMF has since acknowledged its shortcomings and implemented reforms to enhance its surveillance and crises prevention.
What should it have done about it:
Improved surveillance and early warning: Includes more comprehensive analysis of financial markets and increases attention to unconventional financial instruments and collaboration with other international organizations
Greater attention to system risk: Could have included interconnectedness of financial insitutitons and the potential for contagion
Reform financial sector regulation: could have supported more robust financial sector regulation globally this includes subprime lending. Inadequate risk management practices, and lack of transparency in financial markets.
Early intervention and crisis management: Could have repsonded more rapidly and decively to provide financial assistance to affected countries.
According to Barnett and Finnemore, what is the source of influence of the IMF, and does the recent evolution of the organization support their argument:
Barnett and finnemore argue that international orgnaizations derive influence not just from material capabilities but also from their authority and legitimacy.
Suggest that the IMF’s influence comes from perceived legitimacy as an impartial and expert institution in economic and financial matters.
The recent evolution and the organization support their argument to some extent. The IMF has adapted to changing global economic dynamics, increased focus on inclusive growth, and implemented reforms to enhance its governance structure which reflects their want to keep legitimacy.
Why is IMF critiqued:
Democracy and representation: Governance structure does not reflect changing global economic landscape. The IMF voice is diminishing because those who are starting to emerge do not have a large stake in decision making. Voting is disprorportionaltely distributed with advanced western economies having a majority of influence and decision making power while smaller or emerging economies lack a voice.
One size fits all approach: IMF is critiqued for how it requires economic policies in exchange for financial assistance and this does not work for each country because each country has different circumstances. This approach has been accused of promoting austerity measures that exacerbate social inequalities.
Social consequences: IMF policy prescriptions have been assosciated with negative social consequences. Ex. decreeasing subsidies and public spending results in increased unemployment, poverty, and social unrest.
Neoliberal economic policies: Some say IMF has been promoting neoliberal economic policies that prioritize free markets and limited government intervention which does not suit all economic conditions and contributes to income inequality.
(1) By their original design, what was supposed to be the division of labor between the IMF and World Bank in international economic cooperation? (2) How has the World Bank’s mission evolved over time? (3) How does the governance of the World Bank compare to that of the IMF?
Purpose of World Bank:
The world bank is a financial institution that provides financial and technical assistance to developing nations to support them to reduce poverty and to support sustainable development.
They also promote long term economic development and improve living standards.
By their original design, what was supposed to be the division of labor between the IMF and World Bank in International economic cooperation?:
IMF:
Purpose was geared towards short-term financial stability and to prevent financial cirses.
Adress post-war economic environment.
Provide policy advice and reccomendations to prevent exchange rate volatitlity and disruptive economic imablances
Provide financial assistance to countries through implementing stablaization and adjustment programs
Crucial role in promoting exchange rate cooperation and to prevent competetive devaluation.
World bank:
Support long-term economic development and reconstruction after war.
Focus on financing large scale infrastructure projects ex.power plants, bridges, dams
Financial instruments geared towards long-term investments in development projects
Support initiatives to build institutions and strengthen governance (capacity)
Encourage private investment in developing countries.
How has the World Bank’s mission evolved over time?
POST WWII:
Provide fianncial assitance for reconstruction and foster economic development.
Development lending (1950s-70s)
-Europe recovered and focus shifted to providing development assistance to developing nations such as infrastructure projects education, and agriculture.
Poverty allivieation and social development (80s-90s)
-Focus on poverty and commitment to poverty alleviation
-structural adjustment programs criticized for austerity measures (used economic reform to promote growth and reduce poverty).
Environmental stability and social sustainability (1990s-now):
-recognized sustainable development
-Increased emphasis on social development including health, education and gender equality
Millennium development goals (2000s):
-8 international development goals
-poverty reduction, education, health, enviornment sustainability.
Private sector engagement:
-Emphasizing private sector engagement as key driver of development.
How does the governance of the World Bank compare to that of the IMF?
World Bank:
Structure:
The World Bank consists of two main institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
Each institution has its own governance structure.
Voting Power:
Voting power in the World Bank is based on financial contributions. Countries that contribute more capital have more voting power. Issue with this is that there are disparities in voting power because if a country is more economically wealthy than can contribute more to have more power. Leads to inequality for smaller economies. Lack of voice from developing countries. Many stakeholders have called for reforms for improved inclusivity andalignment with contemporary economic realities.
The United States has the largest single-country voting share, and the president of the World Bank is traditionally nominated by the United States.
Leadership:
The President of the World Bank is selected by the Board of Governors.
Traditionally, the United States, as the largest shareholder, nominates the president, and the nomination is subject to approval by the Board of Governors.
Decision-Making:
Major decisions require approval from the Board of Governors or the Board of Executive Directors.
The Board of Governors, consisting of representatives from each member country, makes decisions on significant issues, while the day-to-day decisions are made by the Board of Executive Directors.
IMF:
Structure:
The IMF has a single organizational structure.
It has 190+ member countries (as of my knowledge cutoff in January 2022).
Voting Power:
Similar to the World Bank, voting power in the IMF is based on financial contributions (quotas).
The United States has the largest voting share, followed by other major economies. Also allows for inequalities.
Many stakeholders, including developing countries and civil society organizations, have called for reforms in the governance structure to better align with contemporary economic realities, promote inclusivity, and enhance the voice of developing nations.
SDRs (special drawing rights): the IMF’s international reserve asset
Leadership:
The Managing Director of the IMF is appointed by the Executive Board.
Unlike the World Bank, where the U.S. traditionally nominates the president, the IMF’s Managing Director can be from any member country, and the selection is based on merit.
Decision-Making:
Major decisions require approval by a supermajority (85% of total voting power).
The Executive Board, consisting of 24 Executive Directors representing member countries or groups of countries, makes most decisions.
Key Differences:
Leadership Selection:
The World Bank’s presidency has traditionally been nominated by the United States, whereas the IMF’s Managing Director can be from any member country.
Purpose:
The World Bank focuses on long-term economic development and poverty reduction through financing development projects, while the IMF’s primary purpose is ensuring the stability of the international monetary system.
Functions:
The World Bank provides financial assistance for development projects, whereas the IMF provides short-term financial assistance to countries facing balance of payments problems.
Current presidents:
IMF: Kristalina Georgieva
World bank: Ajay Banga
(1) Why does the World Bank take on the environmental agenda? (2) Please summarize Bruce Rich’s criticisms for the World Bank’s environmental performance in a crisp paragraph.
Why does the world bank take on the environemtal agenda:
-Recognition of the interconnectedness between economic development and environmental sustainability
-Protect well-being of future generations
-Position as major international financial institutions to portray importance of environmentally responsible development practices.
-Change in generation goals and pressure to fund towards sustainability to garner approval.
Summarize Bruce Rihc’s criticisms for the world banks environmental performance in a crisp paragraph:
Banks projects prirotize short-term economic gains than long-term environmentally sustainable goals.
Ex. large scale dams and infrastructure projects that have negative environmental impacts
Lack of transparency and accountability in decision making process at bak
Needs more environmentally conscious development strategies
Competition from AIIB which pressures world bank to fund big programs to maintain competitive edge.
Whose fault is Putin’s invasion of Ukraine? Why has China shown solidarity with Putin? From the standpoint of its own interest, how should the Chinese government have responded? To what extent has the invasion changed the security architecture of Europe irreversibly?
Meirsheimer argument:
-War is due to America (result of Western actions particularly expansion of Nato eastwards which is a threat to security which provokes defnese response from Russia).
-Sets up argument thru
1) States are selfish due to anarchy
2) Great power conflict and need for survival
-Assumption of unitory actor: concept of domestic politics and need to invate to protect self.
-Counter argument is that Nato was never going to seriously adopt Ukraine due to promises made to Russia at end of Cold war.
-Meirsheimer’s solution: go home let Russia have ukraine and US did wrong thing because they made it unclear if ukraine would be apart of Nato which was intorable for russia.
Whose Fault is Putin’s Invasion of Ukraine:
It is Putin’s fault because he annexed Crimea, and in 2014, pro-Russian separatists who were armed ceased Ukraine’s eastern area of Donbas by overpowering government buildings. Then, in 2022, Russia launched a full-scale invasion through a blitzkrieg by trying to take over Kyiv and replace the government quickly and with much force, but rather than working, it created a full-blown war.
Why has China shown solidarity with Putin:
China has shown solidarity with Putin to move America’s attention away from China. Standing with Putin also allows China to oppose Western hegemony due to an increased demand for changing the L.I.O. leaders or promoting more of a multipolar world. China could also have security concerns, and allying with Russia could prevent the spillover effects of instability from conflicts with their neighbors. They could also want to ally with Russia to maintain the balance of power so that regional balance is maintained and prevent the reshaping of geopolitical landscapes that could harm Chinese interests.
From the standpoint of its interest, how should the Chinese government have responded:
The Chinese government should have responded by having a pragmatic approach where they keep a delicate balance between expressing concerns about conflicts and protecting their interests. They should support diplomacy and dialogue to prevent spillover of conflict. They should also uphold international norms as they are part of the U.N. to prevent ostracization, retain trade relationships, and prevent sanctions from being placed on China. China can achieve this by following norms and principles that already exist internationally. China should also respond by maintaining a balanced regional power dynamic to prevent spillover of the war because they are near Russia.
To what extent has the invasion changed the security architecture of Europe irreversibly:
The invasion changed the security architecture of Europe by showing the collapse of U.S. hegemony and allowing France and Germany to want to break away from the U.S. and re-join and emphasize their membership in the NATO defense framework, which impacted Europe’s goal of achieving independent diplomacy and self-defense. However, Europe relies more heavily on the U.S. because it needs help to get gas from Russia. This brings the U.S. and Europe closer together, making the change reversible rather than irreversible, rebounding the U.S.’s power and hegemony. We also saw the Iron Curtain falling again and being redrawn, where lines are drawn between authoritarian and democratic states. We could see a shift in what determines the line, such as a change from socialism and capitalism to authoritarianism and democracy, which will be irreversible until after the conflict. The West will also have more hegemony due to dominating institutions that shape norms and values during this conflict and due to the demand for democracy and a shift towards greater soft power and hard power policies.
(1)What are the unique qualities of G7 and G20 summits compared to other international fora? (2)Why were the G7 and then the G20 formed? (3) Under what circumstances has the G20 been successful in sustaining cooperation?
G7:
Composition:
-The G7 consists of seven major advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
Focus:
-Historically, the G7 primarily focused on macroeconomic policy coordination, exchange rate stability, and international financial system issues.
It was initially an informal forum for discussion among the world’s major industrialized democracies.
Informality:
-The G7 is an informal group without a permanent secretariat or formal decision-making procedures.
-Decisions made are non-binding, and it operates on the basis of consensus.
Crisis Management:
-The G7 played a crucial role during times of economic and financial crises, such as the Plaza Accord in the 1980s and the response to the 2008 global financial crisis.
G20:
Composition:
-The G20 is a larger forum, including 19 individual countries and the European Union. The member countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States.
-The European Union is also represented, making it a more diverse group.
Inclusivity:
-The G20 includes both advanced and emerging economies, reflecting the changing global economic landscape.
This broader representation allows for a more inclusive dialogue on global economic issues.
Formalization:
-The G20 has a more formalized structure compared to the G7, with regular summits, working groups, and a permanent secretariat (the G20 Research Group).
Mandate:
-The G20’s mandate extends beyond traditional economic issues to include discussions on development, climate change, and global governance.
G7 Formation:
-The G7 was formed as a response to the economic challenges of the 1970s, particularly the oil crisis and exchange rate instability.
G20 Formation:
-The G20 emerged in the late 1990s in response to the Asian financial crisis, reflecting the need for a more inclusive group to address global economic issues.
Success of G20 Cooperation:
Crisis Response:
-The G20 demonstrated effectiveness in coordinating responses to the 2008 global financial crisis, with coordinated fiscal stimulus packages and efforts to stabilize financial markets.
Multilateral Cooperation:
-The G20’s inclusive nature allows for a more comprehensive approach to global economic challenges, fostering cooperation among a diverse set of countries.
Policy Coordination:
-G20 summits provide a platform for member countries to discuss and coordinate policies on issues ranging from monetary policy to climate change, contributing to global economic stability.
Flexible Framework:
-The G20’s more flexible and inclusive framework allows it to adapt to emerging issues and challenges, making it a valuable forum for international cooperation.
G7 (Canada, France, Germany, Italy, Japan, United Kingdom, United States) plus Russia, suspended Russia’s participation in 2014. This decision was a response to Russia’s annexation of Crimea and its involvement in the conflict in eastern Ukraine. The move was a collective decision by the other G8 members to express their disapproval of Russia’s actions.
What are the main instruments of leverage in the hands of multinational corporations? What do multinational corporations want? Are they supportive of liberal internationalism?
Main instruments of leverage:
1) Economic Influence:
MNCs wield significant economic power, often surpassing the GDP of many nations. This allows them to influence governments and policies through investment, job creation, and taxation.
2) Technological Advancements:
MNCs are often at the forefront of technological innovation. Their possession and control of advanced technologies can provide them with a competitive edge and influence in shaping industry standards.
3) Global Supply Chains:
MNCs operate extensive global supply chains. This gives them leverage over suppliers, distributors, and other stakeholders, allowing them to optimize costs and operations.
4)Market Access and Expansion:
MNCs seek access to new markets. The ability to expand operations globally and access diverse consumer bases provides them with considerable leverage in negotiations with governments.
5)Human Capital:
MNCs attract top talent globally. Their ability to mobilize skilled and specialized human resources enhances their competitiveness and influence in various sectors.
6)Financial Resources:
MNCs command substantial financial resources, enabling them to invest in research and development, mergers and acquisitions, and lobbying efforts.
What Multinational Corporations Want
1) Profit Maximization:
The primary objective is to maximize shareholder value and generate profits for investors.
2) Market Expansion:
MNCs aim to expand their market presence globally to tap into new consumer bases and increase revenue streams.
3) Resource Optimization:
Efficient use of resources, including labor, technology, and raw materials, is crucial for MNCs to maintain competitiveness.
4) Innovation and Technology Leadership:
MNCs often strive to be leaders in innovation and technology to stay ahead in the market.
5) Stable Regulatory Environment:
MNCs prefer a stable and predictable regulatory environment to plan and execute business strategies effectively.
Support for Liberal Internationalism:
1)Advocacy for Free Trade:
Many MNCs support free trade policies that reduce barriers to international business, enabling smoother movement of goods and services across borders.
2)Global Governance Participation:
MNCs may engage with international organizations and initiatives to contribute to the development of global standards and regulations.
3)Liberalization of Markets:
-MNCs often favor policies that promote market liberalization, deregulation, and open competition.
4)Corporate Social Responsibility (CSR):
Some MNCs actively engage in CSR initiatives, supporting social and environmental causes, aligning with the principles of liberal internationalism.
-EX: APPLE, MICROSOFT
International Criminal Courts:
Definition: International Criminal Courts are legal institutions established to prosecute individuals for serious crimes of international concern, such as genocide, war crimes, and crimes against humanity.
Economic Sanctions:
Definition: Economic sanctions are measures imposed by one or more countries to influence the economic behavior of a targeted country. Sanctions can include trade restrictions, asset freezes, and other economic penalties.
Project Lending:
Definition: Project lending involves providing financial support to specific projects, such as infrastructure development or large-scale initiatives. The loans are typically tied to the success and revenue generation of the project.
Policy Lending:
Definition: Policy lending involves providing financial assistance to countries based on the implementation of specific economic policies or reforms.
Development Lending:
Definition: Development lending focuses on providing financial resources to support the overall economic development of a country, often targeting sectors like education, healthcare, and infrastructure.
Balance-of-Payments Lending:
Definition: Balance-of-payments lending involves providing financial assistance to countries facing difficulties in balancing their international payments, particularly in cases of deficits.
Barnett and Finnemore offer a constructivist analysis of the IMF. According to them, what is
the source of its influence? How autonomous is its secretariat relative to the governments of
large member states? They wrote before the global financial crisis of 2008-2009. Does the
evolution of the IMF during and after that crisis support or undercut their arguments?
1) The source of influence for the IMF derives from the IMF’s ability to push norms and influence the shared behaviors of member states. The IMF also derives its source of influence from it’s economic resources that drive member states to follow their norms to achieve financial aid and assistance. The IMF can disseminate ideas about economic policy and governance through austerity measures which influence a member states responses to financial crisis and shapes how they recover.
2)The secretariat relative to the government’s of large member states is not as autonomus to these governments of large memeber states due to the infleunce that powerful memeber states such as the U.S. have on the governance of the IMF. However, overtime Barnett and Finnemore have argued that the IMF is becoming more autonomous as it’s secretariat or professional personnel have gone on to interpret and implement policy based on their own takeaways rather than the powerful member states’ ways.
3)There are arguments for support and against support.
-For support: The financial crises called for greater cooperation of states and for norms to change from recognizing that states are interconnected to recognizing that due to states differing economic policies, financial crises could be exasterbated. This highlights how interdependent policies are. There is also emphasis on shared understandings that shape behavior and the development of those shared behaviors.
-Against support: Responses made by IMF to financial crisis undercut power dynamics in IMF and created awareness for dominating states in this institution. Member states began to question impact of austerity measures given to member states in financial crises and questions about shared norms and ideas were brought up.
