IPE Theories. The Realist Perspective Time-tested School of Thought Thucydides (471-400 b.c.) Thucydides (471-400 b.c.) the first IR/realist work The.

IPE TheoriesIPE Theories

The Realist PerspectiveThe Realist Perspective

Time-tested School of ThoughtTime-tested School of Thought Thucydides (471-400 b.c.)Thucydides (471-400 b.c.)

the first IR/realist work the first IR/realist work The History of the The History of the Peloponnesian WarPeloponnesian War on wars between the Greek city-stateson wars between the Greek city-states

Popularity among world powersPopularity among world powers(influencing foreign policy decisions)(influencing foreign policy decisions)

US: a hegemonic power for much of the US: a hegemonic power for much of the 20th century20th century

USSR: military weakness invites aggresionUSSR: military weakness invites aggresion PRC: China must have nuclear capability to PRC: China must have nuclear capability to

deter aggression from the West & the USSRdeter aggression from the West & the USSR


Time-tested School of ThoughtTime-tested School of ThoughtPopularity among world powersPopularity among world powersWeakness of Realism in the subfield of Weakness of Realism in the subfield of

IPEIPE Realist theory was based more on politics & Realist theory was based more on politics &

history rather than on economics.history rather than on economics. Realist theory focuses too much attention on Realist theory focuses too much attention on

security matters rather than on economic security matters rather than on economic issues.issues.

Two strains of realismTwo strains of realism Machiavelli realismMachiavelli realism

Expanding military power is more important to the Expanding military power is more important to the Prince than the acquisition of wealth.Prince than the acquisition of wealth. Military strength can bring wealth. Military strength can bring wealth.


Two strains of realismTwo strains of realism Machiavelli realismMachiavelli realism Thucydides/Mercantilist realismThucydides/Mercantilist realism

Thucydides: the Greek city-state wars are Thucydides: the Greek city-state wars are attributable to economic changes, trade growth and attributable to economic changes, trade growth and rise of new commercial powersrise of new commercial powers

Wealth is an important source of Wealth is an important source of military power.military power.

““War is a matter not so much of arms War is a matter not so much of arms as of money, as of money, which makes arms of use.”which makes arms of use.”

Mercantilists: Wealth expansion should be the goal Mercantilists: Wealth expansion should be the goal of the states that intend to enlarge their military of the states that intend to enlarge their military capabilities.capabilities.


Basic Tenets of RealismBasic Tenets of Realism International systemInternational system

AnarchyAnarchy, lack of a centralized power exercising , lack of a centralized power exercising authority over statesauthority over states

Self-helpSelf-help, each state taking care of own survival , each state taking care of own survival and well-beingand well-being

Nation-statesNation-states the the principal/unitary/rational actorsprincipal/unitary/rational actors of of

international systeminternational system Obsessed with the challenge of national Obsessed with the challenge of national survivalsurvival

and and securitysecurity Obsessed with the need to enlarge national Obsessed with the need to enlarge national powerpower

to defend sovereignty and independence to defend sovereignty and independence


Basic Tenets of RealismBasic Tenets of Realism International systemInternational system Nation-statesNation-states Societal groupsSocietal groups

Non-state actors operate within the rubrics of state Non-state actors operate within the rubrics of state politicspolitics

Limited influence over the actions of the states.Limited influence over the actions of the states. International Economic Relations & Power PoliticsInternational Economic Relations & Power Politics

A state’s power position in the international system A state’s power position in the international system determines its foreign policydetermines its foreign policy

Aggressive states may use the international economy to Aggressive states may use the international economy to pursue imperialist expansion or extend their powerpursue imperialist expansion or extend their power

A hegemonic state with dominant power & influence is A hegemonic state with dominant power & influence is likely to defend the status quo of the system likely to defend the status quo of the system


Basic Tenets of RealismBasic Tenets of Realism International Economic Relations & Power International Economic Relations & Power

PoliticsPolitics Other argumentsOther arguments

Powerful states can structure economic relations at Powerful states can structure economic relations at the international levelthe international level

Globalization is a myth; if globalization does exist, Globalization is a myth; if globalization does exist, states remain the dominant actors and allow such a states remain the dominant actors and allow such a process to happen.process to happen.

Major powers can close or open world markets and Major powers can close or open world markets and they can use globalization to improve their power they can use globalization to improve their power positions vis-à-vis smaller & weaker statespositions vis-à-vis smaller & weaker states

A hegemonic state has the ability to create an open A hegemonic state has the ability to create an open and stable economic order that can further the and stable economic order that can further the globalization process. globalization process.


Mercantilists & Economic NationalismMercantilists & Economic NationalismWhen: 1500-1750When: 1500-1750

Main arguments: Main arguments: state power based on size of national wealthstate power based on size of national wealth Acquisition of wealth is a means of gaining powerAcquisition of wealth is a means of gaining power

Post-mercantilist economic nationalismPost-mercantilist economic nationalismWhen:When: 1750-18501750-1850

Main arguments:Main arguments: Industrialization was a central requirement for Industrialization was a central requirement for

countries seeking to gain national security, countries seeking to gain national security, military power & economic self-sufficiencymilitary power & economic self-sufficiency


Post-mercantilist economic nationalismPost-mercantilist economic nationalismMain arguments:Main arguments:

National security and independence requires National security and independence requires economic growth that gives priority to industrial economic growth that gives priority to industrial development, economic self-sufficiency, state development, economic self-sufficiency, state intervention and trade protectionismintervention and trade protectionism

Manufacturing was more essential for diversifying the Manufacturing was more essential for diversifying the US economy and decreasing its vulnerability to US economy and decreasing its vulnerability to external forces.external forces.

(Alexander Hamilton (1755-1804) and his (Alexander Hamilton (1755-1804) and his Report on Report on the Subject of Manufacturesthe Subject of Manufactures))

Imposition of trade barriers, promotion of national Imposition of trade barriers, promotion of national unity, and development of ‘human capital’ are key to unity, and development of ‘human capital’ are key to a national rise in wealth and power.a national rise in wealth and power.(Friedrich List, (Friedrich List, The National System of Political The National System of Political EconomyEconomy))


The Rise of Realist IPEThe Rise of Realist IPEWhen: 1970s-1980sWhen: 1970s-1980s

What triggered the realist IPE:What triggered the realist IPE:1.1. Decline of Cold War, disarray in the global economy Decline of Cold War, disarray in the global economy

forced many realists to look beyond security issuesforced many realists to look beyond security issues

2.2. Realists could not remain silent to the liberal and Realists could not remain silent to the liberal and Marxist economic analysis of IPE.Marxist economic analysis of IPE.

3.3. Major changes in the post-war economic system Major changes in the post-war economic system such as the rise of the OPEC, relative decline of the such as the rise of the OPEC, relative decline of the US economic hegemony, increasing friction & US economic hegemony, increasing friction & competition between US & other DCs; and the onset competition between US & other DCs; and the onset of the debt crisisof the debt crisis


Hegemonic Stability TheoryHegemonic Stability TheoryWhen: 1970s-1980sWhen: 1970s-1980s

Central arguments:Central arguments: A global hegemon contributes to economic A global hegemon contributes to economic

openness and world stabilityopenness and world stability International economic system (IES) is most likely International economic system (IES) is most likely

to be open and stable when there is a single to be open and stable when there is a single dominant or hegemonic statedominant or hegemonic state

A hegemonic power is one that:A hegemonic power is one that: Has a sufficiently large share of resources that it is Has a sufficiently large share of resources that it is

able to provide leadershipable to provide leadership Is willing to pursue policies necessary to create Is willing to pursue policies necessary to create

and maintain a liberal economic orderand maintain a liberal economic order Whose decline in power is likely to undercut Whose decline in power is likely to undercut

economic opennesseconomic openness


Hegemonic Stability TheoryHegemonic Stability TheoryWhen: 1970s-1980sWhen: 1970s-1980s

Central arguments:Central arguments: A global hegemonic power helps maintain an open A global hegemonic power helps maintain an open

and stable economic system by:and stable economic system by: Creating and maintaining liberal international Creating and maintaining liberal international

regimesregimes Sets of implicit or explicit principles, norms, Sets of implicit or explicit principles, norms,

rules and decision-making procedures rules and decision-making procedures Providing public goods and rewards and the use Providing public goods and rewards and the use

of coercion to encourage compliance and punish of coercion to encourage compliance and punish rule-breaking behaviors.rule-breaking behaviors.


Hegemonic Stability Theory (HST)Hegemonic Stability Theory (HST)

Critics of the HST Critics of the HST Can generalizations be drawn about Can generalizations be drawn about

hegemonic behavior based on the hegemonic behavior based on the experiences of two global hegemons during experiences of two global hegemons during limited historical perioods?limited historical perioods?

What constitute a hegemonic power and What constitute a hegemonic power and how to measure its power?how to measure its power?

On what ground can HST claim that a On what ground can HST claim that a hegemon contributes to economic hegemon contributes to economic openness and global stability?openness and global stability?


Defining a hegemonic powerDefining a hegemonic power1.1. Robert Gilpin’s realist definitionRobert Gilpin’s realist definition

a hegemonic power is one that is capable of a hegemonic power is one that is capable of controlling or dominating the lesser states in the controlling or dominating the lesser states in the international system.international system.

2.2. Immanuel Wallerstein's definitionImmanuel Wallerstein's definitiona hegemon is one that possesses such a predominant a hegemon is one that possesses such a predominant power that enables it to impose its rules and wishes power that enables it to impose its rules and wishes (or by using veto power) in the economic, political, (or by using veto power) in the economic, political, military, diplomatic and even cultural arenas.military, diplomatic and even cultural arenas.

3.3. Gramscian definitionGramscian definitionHegemony is viewed as a complex web of ideas that Hegemony is viewed as a complex web of ideas that social groups use to assert their legitimacy and social groups use to assert their legitimacy and authorityauthority

hegemony of ideas such as capitalismhegemony of ideas such as capitalism


Three Types of HegemonThree Types of Hegemon A benevolent hegemonA benevolent hegemon

The hegemon is benovolent in both goals and means.The hegemon is benovolent in both goals and means. It is more concerned about promoting generalized benefits It is more concerned about promoting generalized benefits

than its self-interest.than its self-interest. It uses rewards rather than threats to ensure compliance.It uses rewards rather than threats to ensure compliance.

A coercive hegemonA coercive hegemon is exploitativeis exploitative exerts leadership out of self-interestexerts leadership out of self-interest is more inclined to use coercion to extract complianceis more inclined to use coercion to extract compliance

A third hegemonA third hegemon Pursues general as well as self interestPursues general as well as self interest More inclined than the benevolent hegemon to use More inclined than the benevolent hegemon to use

coercioncoercion More inclined than the coercive hegemon to use rewards.More inclined than the coercive hegemon to use rewards.

The Liberal PerspectiveThe Liberal Perspective

Main ArgumentsMain ArgumentsIndividual FreedomIndividual Freedom

Individuals have natural rights that cannot be infringed Individuals have natural rights that cannot be infringed upon by groups or stateupon by groups or state

Individual freedom is vital for the pursuit of political Individual freedom is vital for the pursuit of political and economic interestand economic interest

Individual endeavor benefits the society as a wholeIndividual endeavor benefits the society as a whole

State or social groups should stay out of individual State or social groups should stay out of individual decision-makingdecision-making

Int’l Economic RelationsInt’l Economic Relations Int’l groups such as IMF and World Bank are Int’l groups such as IMF and World Bank are

politically neutralpolitically neutral If states conform to their rules, they will all If states conform to their rules, they will all

growgrow


Main ArgumentsMain Arguments

Int’l Economic RelationsInt’l Economic Relations The int’l economic system benefits all as long The int’l economic system benefits all as long

as states are willing to pursue rational liberal as states are willing to pursue rational liberal economic policies.economic policies.

The roadblock to development is low efficiency The roadblock to development is low efficiency and lack of freedom, not distributional and lack of freedom, not distributional disparity between the North and South.disparity between the North and South.

Today’s LDCs have advantages the DCs did Today’s LDCs have advantages the DCs did not have when the latter were taking offnot have when the latter were taking off

LDCs have access to capital and technology from LDCs have access to capital and technology from DCsDCs

Globalization contributes to growth of LDCs if Globalization contributes to growth of LDCs if they follow open and liberal policies.they follow open and liberal policies.


Main ArgumentsMain Arguments

Politics & EconomyPolitics & Economy Politics and economics are two separate & Politics and economics are two separate &

autonomous realmsautonomous realms Government should not interfere with Government should not interfere with

domestic & int’l economic transactiondomestic & int’l economic transaction Government’s role should be limited to Government’s role should be limited to

Creating a favorable business environmentCreating a favorable business environment Providing public goodsProviding public goods National defense National defense


Adam Smith & Orthodox LiberalismAdam Smith & Orthodox Liberalism Adam Smith (1723-1790)Adam Smith (1723-1790)

Advocated laissez-faire economicsAdvocated laissez-faire economics Opposed mercantilist policiesOpposed mercantilist policies

Advocated freely operating markets based on a Advocated freely operating markets based on a division of labordivision of labor Free market with division of labor maximizes Free market with division of labor maximizes

efficiency & prosperityefficiency & prosperity Called for eliminating barriers of mercantilist states Called for eliminating barriers of mercantilist states

so that goods can be exchanged across national so that goods can be exchanged across national bordersborders

Free trade is important because nations are Free trade is important because nations are interdependent on one another.interdependent on one another.


John Maynard Keynes & Keynesian LiberalismJohn Maynard Keynes & Keynesian Liberalism John Maynard Keynes (1883-1946)John Maynard Keynes (1883-1946)

Advocated state intervention at times of economic Advocated state intervention at times of economic downturn spiraldownturn spiral

Opposed extreme levels of economic nationalismOpposed extreme levels of economic nationalism Argued that self-interest and public interest do not Argued that self-interest and public interest do not

always converge as Adam Smith suggestedalways converge as Adam Smith suggested Argued that market did not tend inherently toward Argued that market did not tend inherently toward

a socially beneficial equilibrium. a socially beneficial equilibrium. Argued for Argued for government interventiongovernment intervention to create to create

demand at time of sluggish economydemand at time of sluggish economy Placed less emphasis on specialization and int’l Placed less emphasis on specialization and int’l

tradetrade Argued that import restrictions may be necessary Argued that import restrictions may be necessary

to bolster domestic employmentto bolster domestic employment

The Liberal PerspectiveThe Liberal PerspectiveInterdependence TheoryInterdependence Theory

Main Arguments:Main Arguments: Advances in transportation, communications & technology Advances in transportation, communications & technology

are negating distinction between internal & external are negating distinction between internal & external policiespolicies

States are losing some autonomy in managing their own States are losing some autonomy in managing their own affairs because of growing economic interdependenceaffairs because of growing economic interdependence

Cooperation among states is the best response to the new Cooperation among states is the best response to the new situationsituation

Richard Cooper: Richard Cooper: The Economics of InterdependenceThe Economics of Interdependence (1968) (1968) Interdependence can be Interdependence can be asymmetricalasymmetrical

A less dependent state has more power in the A less dependent state has more power in the relationshiprelationship

Interdependence can be Interdependence can be complexcomplex

Robert Keohane and Joseph NyeRobert Keohane and Joseph Nye

The Liberal PerspectiveThe Liberal PerspectiveInterdependence TheoryInterdependence Theory

Main AssumptionsMain Assumptions States are not unitary actorsStates are not unitary actors States are not the only important actors in IRStates are not the only important actors in IR Military means are not always useful for promoting Military means are not always useful for promoting

national interestsnational interests IR includes both inter-state and domestic issues, IR includes both inter-state and domestic issues,

intermesticintermestic

The Prisoners’ Dilemma & Int’l CooperationThe Prisoners’ Dilemma & Int’l Cooperation The Prisoners’ DilemmaThe Prisoners’ Dilemma

Each is motivated to defect rather than cooperateEach is motivated to defect rather than cooperate Each strives for sub-optiomal outcome rather than best Each strives for sub-optiomal outcome rather than best

collective outcomecollective outcome

Cheating by states is prevalent and hinders cooperation. Cheating by states is prevalent and hinders cooperation.

The Liberal PerspectiveThe Liberal PerspectiveThe Prisoners’ Dilemma & Int’l CooperationThe Prisoners’ Dilemma & Int’l Cooperation

The Prisoners’ DilemmaThe Prisoners’ DilemmaCheating by states is prevalent and hinders cooperation. Cheating by states is prevalent and hinders cooperation.

A hegemon or international orgazations can solve the A hegemon or international orgazations can solve the defection problem. How?defection problem. How?

A hegemon prevents cheating by rewards or A hegemon prevents cheating by rewards or coercionscoercions

Int’l organizations prevent cheating by enforcing Int’l organizations prevent cheating by enforcing rules, punishing cheaters, and making public state rules, punishing cheaters, and making public state policiespolicies A state in the global economy is less likely to A state in the global economy is less likely to

cheat because of the inevitability of retaliationcheat because of the inevitability of retaliation

The Historical Structuralist The Historical Structuralist PerspectivePerspective

Basic Tenets of the PerspectiveBasic Tenets of the Perspective The concept of class and class dichotomyThe concept of class and class dichotomy

The oppressing class v the oppressed classThe oppressing class v the oppressed class State=agent of the dominant classState=agent of the dominant class State reflecting and serving the interests of the State reflecting and serving the interests of the

dominant classdominant class State to be eliminated as a tool of class exploitation State to be eliminated as a tool of class exploitation

only through proletarian revolution by eliminating only through proletarian revolution by eliminating private ownership & class distinctionsprivate ownership & class distinctions

Inter-state economic tiesInter-state economic ties Zero-sum gameZero-sum game Conflictual Conflictual

Between the advanced contries & LDCsBetween the advanced contries & LDCs Among the advanced countriesAmong the advanced countries


Dependency TheoryDependency TheoryA theory to explain development of Latin American A theory to explain development of Latin American

countriescountries

Main ArgumentsMain Arguments On the source of LDC underdevelopmentOn the source of LDC underdevelopment

External factors hinder development in the SouthExternal factors hinder development in the South On domestic elites (compradores)On domestic elites (compradores)

Served as intermediatories between capitalist int’l Served as intermediatories between capitalist int’l order and the subjected local people order and the subjected local people

Allied with the elites in the capitalist states to Allied with the elites in the capitalist states to maintain the pattern of LDC dependencymaintain the pattern of LDC dependency

On potential of LDC developmentOn potential of LDC development Little potential because development of the Little potential because development of the

capitalist economies in the capitalist economies in the corecore required the required the underdevelopment of the underdevelopment of the peripheryperiphery


Dependency TheoryDependency TheoryA theory to explain development of Latin American countriesA theory to explain development of Latin American countries

Main ArgumentsMain Arguments On potential of LDC developmentOn potential of LDC development

LDCs cannot develop as long as they have links with the core.LDCs cannot develop as long as they have links with the core.

Dependent Development TheoryDependent Development TheoryA theory to explain away development in East AsiaA theory to explain away development in East Asia

Main ArgumentsMain Arguments Some LDCs can develop when a particularly favorable Some LDCs can develop when a particularly favorable

alliance forms between foreign capital, domestic alliance forms between foreign capital, domestic capital, and the LDC.capital, and the LDC.

The alliance allows some development in LDCs.The alliance allows some development in LDCs. Yet, LDCs and NICs are fundamentally dependentYet, LDCs and NICs are fundamentally dependent Their development is conditioned by the needs in the Their development is conditioned by the needs in the

core.core. Workers in NICs are low paid; NIC produce low end Workers in NICs are low paid; NIC produce low end

goodsgoods


World System TheoryWorld System TheoryMain ArgumentsMain Arguments Modern world system (the main unit of analysis)Modern world system (the main unit of analysis)

It is a world economic systemIt is a world economic system Components of the world systemComponents of the world system

Core statesCore states Periphery statesPeriphery states Semi-periphery states Semi-periphery states

Mobility of states is possibleMobility of states is possible Countries have moved from periphery up to coreCountries have moved from periphery up to core

USA, JapanUSA, Japan Countries have moved from periphery to semi-peripheryCountries have moved from periphery to semi-periphery

Mainland China, Taiwan, Singapore, South Korea…Mainland China, Taiwan, Singapore, South Korea… Yet, upward mobility is rareYet, upward mobility is rare

The unique role of semi-peripheryThe unique role of semi-periphery Unity of the periphery is underminedUnity of the periphery is undermined


World System TheoryWorld System TheoryMain ArgumentsMain Arguments The unique role of semi-peripheryThe unique role of semi-periphery

Unity of the periphery is underminedUnity of the periphery is undermined Semi-peripheral states tend to think they are better off than Semi-peripheral states tend to think they are better off than

the peripheral states rather than worse off than the core the peripheral states rather than worse off than the core statesstates

Semi-peripheral states are both exploiters and exploitedSemi-peripheral states are both exploiters and exploited Core-dominated system is thus stabilizedCore-dominated system is thus stabilized

The core states dominate the systemThe core states dominate the system They set market rules for transnational transactionsThey set market rules for transnational transactions They use force to enforce the rules when peripheral states They use force to enforce the rules when peripheral states

challenge the ruleschallenge the rules They impose unequal exchange relations on weaker They impose unequal exchange relations on weaker

statesstates They appropriate surplus of the whole world economyThey appropriate surplus of the whole world economy

IPE Theories. The Realist Perspective Time-tested School of Thought Thucydides (471-400 b.c.) Thucydides (471-400 b.c.) the first IR/realist work The.

Documents

national power

military weakness

hegemonic power

military strength

military capabilities

wealth expansion

acquisition of wealth

ussr slide