1400-1800 (mercantilism/imperialism):The regional political economies during time period differed in terms of social, political and economic organization. (heterogeneity). The heterogeneity created interactions ranging from free trade war and slavery. These interactions had long-lasting effectsEconomic activity was local around 1400 (agriculture)à a market town with an agricultural periphery of about 30 km. but also thousand of years of old intercontinental trade routes for luxury goods from Asia. By land Europeans got ità from China via central Asia through the Mediterranean. By seaà through South-east Asia, the Indian ocean and then into the Mediterranean either through the Persian Gulf or the Red Sea.Two main trends: increased economic activity and integration across Europe (new trade patterns and consolidation of European political authority into rival states (emergence of nation states)Europe, economy trade in the 14th-15th centuries. Two economic centres linked through trade. South à Venice, Pisa, Genoa (wealth mostly through luxury goods trade in the Mediterranean. Silk from China, ivory from Africa and spices from India. Commercial rivalry among Italian city states. North à present-day Belgium + Netherlands, North and Baltic Seas areas. Mostly non-luxury trade like wine and the textile industry, stock market and the Hanseatic League. This trade generally increased wealth in many parts of Europe, but there was an imbalance in trade. Europeans bough expensive luxury goods from China, India, Middle East and Africa. But they often had to pay for them with silver and gold, Europeans had few goods that their trade partners in other regions would want. Europeans wanted these luxury goods, but their gold and silver was limitedInnovations: finance à development of accepted forms of money, banking and credit. Also joint-stock companies. Politicsà sovereign territorial states replaced city dates and merchant leagues. Advantages:...

Access options

The full content is only visible for Logged in World Supporters.

More benefits of joining WorldSupporter

  • You can use the navigation and follow your favorite supporters
  • You can create your own content & add contributions & comments
  • You can save your favorite content and make your own bundles
  • See the menu for more benefits

Full access to all pages on World Supporter requires a JoHo membership

  • For information about international JoHo memberships, read more here.

 

Support JoHo and support yourself by becoming a JoHo member

 

Become a Member

 

 

Join World Supporter
Join World Supporter
Log in or create your free account

Why create an account?

  • Your WorldSupporter account gives you access to all functionalities of the platform
  • Once you are logged in, you can:
    • Save pages to your favorites
    • Give feedback or share contributions
    • participate in discussions
    • share your own contributions through the 7 WorldSupporter tools
Follow the author: alinehooiveld@gmail.com
Promotions
vacatures

JoHo kan jouw hulp goed gebruiken! Check hier de diverse bijbanen die aansluiten bij je studie, je competenties verbeteren, je cv versterken en je een bijdrage laten leveren aan een mooiere wereld

verzekering studeren in het buitenland

Ga jij binnenkort studeren in het buitenland?
Regel je zorg- en reisverzekering via JoHo!

Access level of this page
  • Public
  • WorldSupporters only
  • JoHo members
  • Private
Statistics
[totalcount]
Comments, Compliments & Kudos

Add new contribution

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image.
WorldSupporter Resources
Summary lecture, Global political economy

Summary lecture, Global political economy

international political economy (IPE):

emerged in 1970s (subfield of international relations)à deals with competing explanations of events issues and processes. Uses liberalism, economic nationalism and Marxism.

Examples, climate change, economic development

Goal: critically analyze current events;

Definitions:

  1. An academic field of study of the economic and political phenomena across state borders
  2. An interdisciplinary social science field of study that investigates, analyses and proposes changes in the processes of economic flows (trade, capital, labour, etc.) and political governance that cross over and/or transcend national boundaries.
  3. Interdisciplinary academic field, intersection of economics and political science, but also international relations, sociology, history etc. à interplay between national and international issues, causes of different phenomena to propose political alternatives and offers competing theoretical perspectives.

Global political economy (GPE):

The economics and political environment since the 1970s and international political economy is everything until the 1970s (more the history) and more interaction.

IPEà economics (choice under scarcity, comperative advantage, supply and demand, the operation of the markets), international relations (causes of war, foreign policy of states, international organizations) and political science (states and the use of power, the machinery of government

Neo-clasical economics:

Central problem: allocation of scare resources (unlimited human desires, limited resources)

Solution: free markets allow for mutually advantageous exchange

Individuals: rational, free, equal, fully informed and utility-maximizing

Government: should provide defense and the rule of law, but government intervention is inefficient

Keynesian economics:

Government intervention is crucial to:

  • A well-functioning economy, especially in time of depresseion
  • To provision of a wide rage of good

Institutional economics:

  • Highlight the role of formal and informal institutions
  • Markets are the result of institutions
  • Economics is embedded in and cannot be separated from the political

Political science:

Central question:

  • Use of power and politics
  • Ability of actors to enforce their interest
  • Hoe societies should be governed
  • Differences of governance models across countries
  • Operation of the state/machinery of government

Decision making is based on:

Argument, ideology, institutional and threat of violence

International relations:

  • Security and the causes of war
  • Interactions between/among states
  • Rather that than the politics of a particular state

Dominant approaches:

  • Realism: the international system lacks and overarching power and states continuously compete for power
  • Liberalism: possibilities for cooperation among states (for example free trade)

Methodologies in GPE:

  • Case studies: small number (why did an event happen the way it did, detailed investigation t to understand the causal factorsà apply insights to similar situations and is a starting point for theory-building. But you can never be sure if the chosen cases are representative) large amount/statical analysis (large datasets examination. If a positive correlation is found à causally improves prosperity or whether there is third factor)
  • Rational choice: explains outcomes as the result of actors choices (actors are utility-maximizers and they calculate the costs and benefits before choosing an action) it also explains collective action problems (under-provision of public goods; overuse of common pool resources)à not rational for each individual for each individual to bear the costs for clean up, but it is rational to use as much resources as possible). Also sub-optimal outcomes, such as trade protectionism)
  • Game theory: Strategic behaviour in expectation of what opponent will do Prisoners dilemma: Some environment can lead rational actors to make decisions that lead to poor outcomes. If there is a repeated interaction, than countries will learn about the costs and benefits of cooperation, than countries will change their rules. They could also create institutions that reduces the ability to cheat.
  • Institutionalism: mostly used among liberal scholars; focus on rules, institutions which shape individual decision) à country classification (varieties of capitalism) and nature of well-fare regimes
  • Constructivism: norms and values not only shape states interests but they are identities and therefore interests themselves. Identities explain sates interactions. Key question: what are the actors’ beliefs and preferences, how have they been created and how might they change and how do dominant ideas come about
Summary lecture 2, Global Political Economy

Summary lecture 2, Global Political Economy

3 theoretical perspectives

  1. Economic nationalism: conflict, zero sum game
  • The roots: classical realismà the international system is an anarchy (perpetual state of war). Thought behind economic nationalismà the state is the principal actor in politics/viewed the state of nature as continual fear and danger of violent death (the solution is an institutional sovereign to enforce the rules)
  • More recent thoughtà Kenneth waltz, structure of the international system by first examining the distribution of power to understand peace (unipolarà one state has the power to defeat all others, bipolar à leading to balance of power, which may be conducive to peace, according to other) and multipolar.
  • Assumptions: the international system is anarchic (each state must look after its own interests) one state is another stat’s loss (zero sum game)
  • Key actors: the state is a rational, unitary actor and the main actor in international and domestic affairs. Economic policy must be aimed at increasing state power)
  • Key dynamics: GPE; Struggle for power and wealth. Intl. economic and political relations. Each state must ensure that its citizens benefit from intl. change (global economy)à free trade (reflects interest of the most powerful states.
  • Conflict and cooperation: anarchy means conflict, therefore free markets and exchange can be potentially harmful. Therefore state control of key economic activities and help key industries. à example, Brexit (state protection of domestic industries against foreign competition and exporting more than importing for long periods of time. Also prevent cultural imperialism) another example (mercantilism. Global wealth is limited, therefore each economy must secure its economic interest
  1. Liberalism: cooperation, interdependence, positive sum game
  • the roots: enlightenment/industrial revolutions à individuals are rational and able to comprehend natural and social laws, therefore they can improve their condition and create a just society through cooperation and exchange. Lockeàpeople are good-natured and governed by reason; the role of government is limited to protecting property; the state of nature is a sate of peach. Montesquieuà war is a product of society, a law of nations should guide state conduct. Kantà collective action of self interested nations can overcome anarchy. Adam smithà opposed mercantilism, protectionism and restriction of economic activity, feeing up commerce an markets generates economic welfare for all. Ricardoà theory of competitive advantage, all nations can benefits from trade. Even is a state has not absolute advantage in producing any good, it should specialize in products for which it had a relative cost advantage. Neoliberal institutionalism: cooperation, because of complex interdependence (states connect through multiple channels, for example informal interactions, states care about issues other than security or states are interconnected through treaties and international institutions do not fight one another because of repeated interaction). Main difference between neoliberalism and liberalismà both predict that states will cooperate but neo says continuous interaction and liberalism says human establish as reform)
  • Main assumptions: the fee market at the core of economic life (state intervention is bad). Letting diverse individuals pursue their own interestàprosperity. Exchange and economic integration (positive sum gameà everyone benefit)
  • Key actors: individuals, self interested and rational. The firm is a source of economic wealth (transnational corporation benefit both countries and host countries. State control distorts market and leads to economic failure
  • Key dynamics: IPE, search for wealth, free markets create growth and firms spread wealth and prosperity around the globe. Keynesà government intervention is needed to solve problems such as depressions and recessions. Hayekà government intervention can never be the solution to market imperfections
  • Conflict and cooperation: cooperation and exchange are beneficial to all. Nationalism is perceived as conflict and liberalism is peace. International organizations promote liberal ideas and ensure peace
  1. Critical perspective, mostly Marxism
  • Roots: response to liberalism
  • Key assumptions: when profit fall, capitalist start competing with one another, which drives down workers wages (competition is bad for the workers ‘wages), capitalism leads to uneven development across countries, which leads to conflict. Capitalism leads to overproductions or under consumptions, which leads to fluctuations in the business cycle and shakes social stability.
  • Key actors: class (capitalist, workers and embrace collectivism) firms and TNCs are an instrument of exploitation and oppression of the working class. (TNCs are one of the key features of imperialism. The state is a representative of class interest.
  • Key dynamics: dominance and exploitation within and across societies, capitalists exploit workers and deny them fair pay. Market relations and exchange are exploitative, international economic relations are inherently unstable. Dependency theory: poor countries are poor because they were exploited from rich countries.
  • Conflict and cooperation: international economic relation àzero-sum game. Capitalism is inherently conflictual because of the drive for profit. Capitalists and workers have competing interests. Through imperialism dominant states oppress weak ones. Lenin’s theory of imperialismà capatalists expand abroad because of underconsumption domestically. Finance and industrial capital form a monopoly that helps gain profits through overseas lending.

Globalization and the three IPE Theoretical perspective:
[note: enkele afbeeldingen bij deze samenvatting zijn door de WorldSupporter redactie verwijderd wegens vermoedelijke inbreuk op het auteursrecht]

What caused the 1997 crisis: