International political economy
Political economy re-emerged in the twentieth century
Neoclassical institutionalism
What motivates nations to adopt the strategic economic policies that create winners and losers?
Alternative view of international political economy
Structural power of production
Structural power of finance
Structural power of security
What is the dominant international political economy approach?
Focus on ideas, norms and identity
Realism, Mercantilism, Liberalism
Three strands of Liberalism
Belief in the freedom of the market to function with minimal interference from states
Issues and debates between liberals and realists.
Three. Free market and state sovereignty.
Marxism, dependency theory, world system theory.
J. Hobson versus V. Lenin. Marxist and non Marxist view of imperialism.
Came from Marxism and Latin American structuralism.
Structural obstacle to LDCs:
Three forms of dependence.
Started during Colonialism era.
The global economy from a historical perspective.
Pre-WWTwo Institutional framework to regulate commerce
Establishment of the League of Nations
Issues in postwar global economy
- The Global South: Discontent and Growing influence
Recurring Issue: Global Economic Disparity
Hegemony, International Regimes and Compliance Problem
International economic order
Hegemonic stability Theory: Realist version
Kindleberger's liberal Hegemony
- Five functions of a stabilizer
Two models of hegemony (Keohane)
- Military power and hegemony
Two effective hegemony British
British hegemony versus US Hegemony
International cooperation and hegemony
Nineteen sixty-seven to seventy-seven US hegemonic decline
Nationalization of oil industry by OPEC countries
- Neoclassical view of hegemony or one that promotes free market,
International regimes and regime theory
Susan strange four structures of power
- Hegemony is based on relational power
- Production of structure
- mode of production is the basis of class power
- provisions/creation of credit
- control of information/ideas
The international trade system
Two major benefits of international trade
Heckscher and Ohlin trade theory
INCREASE OF GLOBAL TRADE DUE TO LIBERALIZATION
WHY LIBERALIZE? WHY PROTECT?
Free trade and developing countries
HOW DOES FREE TRADE MAKE SOCIETIES BETTER OFF? Gains of open trade system
Why is free, open international trade is controversial?
Limit of conventional trade theory
What explains global trade patterns?
Economies of scale and product differentiation
Theory of competitive advantage
New trade theory/strategic trade theory
Rules and principles that underpin the international trade regime
Market liberalism (elimination of tariff/non-tariff barriers) -
Enforcement-cooperation issue
Regional trade arrangement
Regional trade agreement and Free trade area
Regional free trade agreement
Preferential trade arrangements
Regionalization versus regionalism
ARTICLE V of GATS/general agreement on trade and services (regarding economic integration)
Why do nations join RTAs?
Motivations in the formation of RTAs
Why have RTAs proliferated
DO RTAs complement or challenge the World Trade Organization system?
Views on the formation of RTAs and free trade agreements
Why do countries seek to harmonize their economic policies? Theories of integration
Importance of rules of origin
TRADE POLITICS AND DEVELOPMENT
Society-centered approach
CAN TRADE CONTRIBUTE TO DEVELOPMENT?
Structuralism and Development economics
Trade and development policy among developing countries
Two development strategies
Governments that employed import substitution industrialization
Export oriented industrialization
What explains East Asian economic success?
Effect of import substitution industrialization: The shift from structuralism to neoliberalism
Structural Adjustment Program nineteen eighty three to ninety-five
Washington consensus equals stabilize, liberalize, privatize