What do you understand by international political economy?
Introduction
Are you curious about the complex and dynamic world of international political economy? Do you want to learn more about the intricate interactions between politics, economics, and global affairs? Look no further! In this blog post, we will explore the fundamentals of international political economy and help you gain a deeper understanding of how power, trade, finance, and ideology shape our interconnected world. Get ready to delve into an exciting journey that will expand your knowledge and challenge your perspective on global issues. Let’s dive in!
What is international political economy?
In simple terms, international political economy (IPE) is the study of how economic and political factors interact in the global marketplace. IPE scholars seek to understand how these factors shape our world economy and the various policy choices that governments make.
The field of international political economy has its roots in the work of 19th-century economists such as Karl Marx, who argued that economic activity was shaped by political forces. In the early 20th century, economists such as John Maynard Keynes and Friedrich Hayek also began to incorporate political factors into their economic analysis. The modern field of IPE emerged in the 1970s, with scholars such as Robert Gilpin and Susan Strange providing a more comprehensive approach that looked at both economic and political factors.
Today, international political economy is a thriving field of study, with scholars coming from a variety of disciplines such as economics, political science, sociology, and history. The field is also interdisciplinary, with many scholars working at the intersection of economics and politics.
The different schools of thought in international political economy
1. Structuralism: This school of thought is based on the notion that the economic systems of different countries operate in an interdependent system, with the international economy being shaped by global economic structures. Structuralists believe that international power relations are key in influencing and shaping these structures.
2. Neoliberalism: This school of thought is based on the belief that markets should be free from government interference and regulation, and that economic growth can be achieved through free trade and free market policies. Neoliberals favour a less interventionist approach to economics, advocating for smaller government, privatization of public services, deregulation, and fiscal austerity measures.
3. Realism: This school of thought focuses on power struggle among states as opposed to looking at economics alone. It views politics as a zero-sum game in which countries struggle for resources and status relative to one another. Realism does not take into account non-state actors or other factors like culture when making decisions about foreign policy.
4. Marxism: This school of thought puts forth the idea that capitalism is inherently exploitative because it allows owners of capital to accumulate wealth at the expense of workers who do not own capital or land. Marxist theorists argue that class conflict between the bourgeoisie and the proletariat is inevitable, and that the only way to ensure economic justice is through revolution.
5. Institutionalism: This school of thought focuses on how institutions help to shape outcomes in international politics by providing a framework for behavior among states. It views institutions as social structures that produce rules, norms and expectations that shape interactions among states.
