IPE and Globalisation Flashcards
1
Q
What is IPE?
A
- International Political Economy
- The economic dimension of IR
- The relationship between states
and markets, power and money,
poltics and economics - Subdivision of IR that most
directly addresses globalisation
2
Q
From where do the liberal intellectual origins of IPE stem?
A
- Adam Smith
* David Ricardo
3
Q
Who was Adam Smith?
A
- (Wealth of Nations 1776): Founder of Liberal Political Economy - The market as a spontaneous institutions to satisfy selfish needs - The market is self-regulating and brings innovation and prosperity - Market also beings stability: the ‘invisible hand’ synthesises the pursuit of self-interest into the common good - ‘Nightwatchman’ (minimal) state - Politics and economics separate and economics superior
4
Q
Who was David Ricardo?
A
- ‘Free Trade’
- Division of labour
- State unit of analysis
- Countries should focus on exporting
goods in which they have comparative
advantage not self-sufficiency - Free trade leads to gains in
efficiency - Trade and interdependence leads to
peace and cooperation - Economics trumps politics
5
Q
What are the mercantilistic intellectual origins of IPE?
A
- Conservative variant of IPE
- Largely the view of the landed
aristocracy - Skeptical about the invisible hand
- Order comes from the Leviathan (Hobbes, realist)
- Politics and national interest trumps
economics - Need for self-sufficiency
- Problem: no Leviathan to regulate
economic interaction between states - Reject free trade and interdependence
- Free trade serves the interest of
global hegemon: UK - States dominate markets and use them
to further their interests
6
Q
What are the marxist intellectual origins of IPE?
A
- Market just one part of economy
- Inequality and exploitation because
the bourgeoise control means of
production - The economy as a power regime
- State exercises power for ruling class
- The economic is political and vice
versa - International economy a site of
conflict and competition - Goal: emancipation of the working
class - Possible because human nature is a
social construct - determined by the
historically-specific nature of
capitalist society - Change society and humans change too
- How to do this controversial
7
Q
What are the historical origins of IPE?
A
- Political Economy splits into ‘politics’ and ‘economics’ in 20th century - IR focuses on ‘high politics’ - ‘low politics’ left to economists - ‘Golden Age’ of Capitalism - Bretton Woods international system - IMF, World Bank, gold standard
8
Q
What happened in the 1970s of importance in IPE?
A
- 1971: US abandons gold standard
- Tensions in the global economy
- 1974: Global Recession undermined the
power of the US - Two consequences:
- Indicates that economic issues
need to be taken seriously - Highlights growing
interdependence between nations
- Indicates that economic issues
- Birth of IPE as a discipline
9
Q
Describe the Realist IPE approach
A
- Influence of Mercantilism
- The world economy as an area of
conflict between states - Dangers of the 1930s
- Big question: systemic management
- Breakdown of the post-WWII hegemonic
system - Rober Gilpin’s hegemonic stability
theory- World needs a hegemony to manage
the world economy for good of all - Stability and order hard to attain
- World needs a hegemony to manage
10
Q
Describe the Liberal IPE approach
A
- A much more cautious liberalism
- States remain the main actors
- Lack of international state leads to
‘market failure’: rational individual
actions by states lead to irrational
outcomes - Liberalism as ‘half-sibling’ of
realism - Robert Keohane
- Growing interdependence means states
need to work together - Cooperation possible ‘after hegemony’
- The crucial role of international
institutions - Selfish desires of states can be
tempered - Economics can influence state logic
11
Q
Describe the Neo-Neo debate in regards to anarchy
A
- Neorealism
- Anarchy is systemic and
determines the behaviour of states - Neoliberal
- Anarchy is systemic but
co-operation is also in state interest
12
Q
Describe the Neo-Neo debate in regards to focus
A
- Neorealism
- Focus on security, survival and self help - Neoliberal
- Focus on economy, human rights, global
issues
13
Q
Describe the Neo-Neo debate in regards to problem solving
A
- Neorealism
- How to create stability in the system - Neoliberal
- How can institutions promote and
support co-operation in an anarchical
system?
14
Q
Describe the Neo-Neo debate in regards to outlook
A
- Neorealism
- Pessimistic - Neoliberal
- Optimistic
15
Q
Describe the Neo-Neo debate in regards to level of analysis
A
- Neorealism
- State centric - Neoliberal
- State centric
16
Q
What is globalisation?
A
“The widening, deepening and spreading of world-wide interconnectedness”
17
Q
What is economic globalisation?
A
- The growing intensity, volume and speed of global interactions in trade, production and finance - Leads to growing integration of national economics into single, global economy - Across this economy trade, production and money move seamlessly and instantaneously
18
Q
What effect does economic globalisation have on trade?
A
- New global division of labour
- Manufacutring in advances and
middle income countries - Services emerge as new global
sector - Raw materials still mostly
produced in Global South
- Manufacutring in advances and
19
Q
What effect does economic globalisation have on production?
A
- No longer territorially bounded
- Process broken up and stretched
across border in search of efficiency - Rise of TNCs
- Leverage over governments (TPP)
- States serve their private sectors?
20
Q
What effect does economic globalisation have on finance?
A
- Integration of financial markets leads to a global financial market - across which money moves seamlessly and instantaneously - Thomas Friedman ‘Electronic Herd’ - quick movements of money incentivises states to conform to norms of international system - Great leverage for investors - ‘Borderless World’
21
Q
Who are hyperglobalists?
A
- Generally economic liberals
- Globalisation the result of natural
human desires to seek self-interest -
Adam Smith - Greater mobility will lead to
efficiency - cheaper goods for
consumers and jobs in the Third World - Extending the benefits of capitalism
- Global Village - democracy, human
rights and peace - Final triumph of politics over
economics
22
Q
What is the POLICY of Neoliberalism in regard to economic globalisation?
A
- Neoliberal reorganisation of society: unleashing the market and shrinking the state - A return to classic liberalism of Smith and Ricardo - Globalisation means economic truth and logics can no longer be ignored - Future belongs to individuals - Let the market mediate everything: need to diminish role of state - Privatisaion, deregulation, liberalisation - Shrinking of the welfare state - Wealth would ‘trickle down'
