1. Introduction The subject of the International Political Economy is commonly regarded as a branch of the broader field of International Relations. International relations has traditionally focused on addressing questions of war and peace as well as conflict and co-operation between nation states. A difficulty arose in the field when it could not provide answers or prescribe workable solutions for issues concerning wealth, poverty and the distribution of resources in the international system. The international political economy emerged as a response to the significant shift in international current and economic affairs. This essay will show the usefulness and effectiveness of the international political economy in explaining issues of poverty and wealth. 2. Definition of concepts This section will provide brief definitions and descriptions of the main concepts that are relevant to this essay and will be used throughout. 2.1 IPE An interdisciplinary social science concerned with the examination of the complex interactions between markets, states and societies, and how the tensions and conflicts between these arenas both affect and reflect conditions outside the state and society (Ballam and Dillman 2014:15). 2.2 Theory Theories are models that explain how the world works. They are often used as tools for analysis. Theories emerge at particular times and places offering contextual explanations for their emergence and the dominant forces (Denemark 1997:45). 2.3 Globalization This is the process by which the pursuit of economic liberal ideas and policies has led to increased economic growth across the world. It connotes increasing economic interdependence, boundaries that are difficult to determine and a spread of Western (US) cultu... ... middle of paper ... ...ine political and economic outcomes both domestically and internationally (Katzenstein et.al 1998:21). The structure of domestic state affairs is viewed as being divided into two. The proletariat and the bourgeoisie. The bourgeoisie are those members of society who own the means of production and essentially the capital in a given society while the proletariat are the workers in the economic system. There is an exploitative relationship that exists between these two classes. For structuralists, the same domestic divisions have rippled into the international economic system. This is clear in the division of developed and developing countries. It therefore then follows that if the states acts to preserve and promote the interests of the owners of capital, internationally, the trade system will also preserve and promote the interests of the developed countries (REF).
There are many definitions to theory. According to Akers (2009) “theories are tentative answers to the commonly asked questions about events and behavior” (Akers, (2009, p. 1). Theory is a set of interconnect statements that explain how two or more things are related in two casual fashions, based upon a confirmed hypotheses and established multiple times by disconnected groups of researchers.
When the Declaration of Independence was signed July 4th, 1776, the United States of America was born. From then on, things have never been the same. For example, the country was no longer under the control of Great Britain; we became our own democracy away from monarchy rule of Great Britain. One policy of America that has changed dramatically over the past 200 years, and will continue to change in the coming years, is foreign policy. The idea of foreign policy has gone from the Roosevelt Corollary to the Truman Doctrine, to the Domino Theory, just in the 20th century.
Dennis Pirages and Christine Sylvester (eds.), Transformations in the Global Political Economy (London: Macmillan, 1989).
In the interest of clarity, I will begin with a brief outline of some key concepts, and their relevance.
To understand the power struggle relating to foreign policymaking, it is crucial to understand what foreign policy entails. The Foreign Policy Agenda of the U.S. Department of State declares the goals of foreign policy as "to build and sustain a more democratic, secure, and prosperous world for the benefit of the American people and the international community." While this definition is quite vague, the actual tools of foreign policy include Diplomacy, foreign aid, and military force.
The above excerpt was provided to make the student aware of the focus of the essay, the complete paper begins below:
Gilpin, Robert. Global Political Economy: Understanding the International Economic Order. Princeton: Princeton University Press, 2001. Print.
Balaam, David. Introduction to International Political Economy, Upper Saddle River, New Jersey, Pearson Education, 2005.
The structure of global economy is an evidently dependent structure, depending on several aspects of the government to power its economy and keep it running reliably. The cycle goes on between the government, firms, product markets, resource markets and finally households. Looking at the government, they provide public goods and services to the firms and households and welcome taxes from both aspects. Differently, they make payments to the resource markets, receiving resources in return, and provide prices for the product markets receiving good and services in return. Moving to the firms, they offer wages, interests, rents and profits to resource markets benefiting of their resources production in return and goods and services to product...
Crane, George T., and Abla Amawi. The Theoretical Evolution of International Political Economy: a Reader. New York: Oxford UP, 1997. Print.
A theory is a way organizing and systematizing what is known about a phenomenon. It is, in fact, “a rationalized set of assumptions or hypotheses that provides a person with tools that can be utilized to explain the past and predict the future” (Johnson, 2000). Therefore, theories provide direction and when tested and supported, can assist in expanding our knowledge.
Many historians and sociologists have identified a transformation in the economic processes of the world and society in recent times. There has been an extensive increase in developments in technology and the economy as a whole in the twentieth century. Globalization has been recognized as a new age in which the world has developed into what Giddens identifies to be a “single social system” (Anthony Giddens: 1993 ‘Sociology’ pg 528), due to the rise of interdependence of various countries on one another, therefore affecting practically everyone within society.
Throughout the chapters assigned, Dicken focuses on the patterns and processes of global shifts, on the forms produced by the globalization of economic activities and on the forces producing those forms. He builds his arguments around three interconnected processes, which in his view are the reasons for reshaping the global economic map. Those are Transnational Corporations (“TNC”), States, and Technology.
Throughout this paper I am going to summarize Paul Colliers’s book, “The Bottom Billion”. Next, I will relate Collier’s argument to three key concepts; failed/failing states, Globalization, and the World Trade Organization (WTO). Secondly, I will critically evaluate three of the Collier’s weaknesses in his book. The first critique I have is his disbelief that democracy could fix the problem of corrupt governing in the bottom billion countries. The second critique that I have is his idea that military intervention is a necessity in order to get the bottom billion countries flourishing. My last critique is about his idea that the bottom billion countries constantly declining will directly correlate with our children in the United States facing an alarmingly divided world and all its consequences. Finally, I will conclude the book review and why I think his conclusion may be volatile.
Despite the international system being anarchical, it is not in a state of total chaos due to a number of significant factors such as those above. It is obvious that the current international system is highly influenced by many significant factors and some are more prominent than others. With the continued existence of international anarchy it is up to the States and the International Organisations to continue to make the decisions that are in their own best interest and to maintain order and an ever-improving way of life.