PSCI 3620

International Political Economy

Semester II 2017-2018
World Map
 IPE in Global Political-Economic Setting
• Changes in Global Structural Settings
– End of the Cold War
• 2nd half of 2th century- CW provided framework for IPE
• Political and security concerns overshadowed economic
• End of CW American leadership came to challenge
– Rise of market –oriented economy
• Former communist countries joined capitalist system
• Role of LDCs increased in international economy
• The rise of WTO
– Economic globalization: Trade increase
• international trade increased rapidly
• Trade in services increased
• International competition increased due to rise of East Asia
• International Finance
– Financial deregulation, Washington Consensus
– New financial instruments (derivatives, CDOs)
– Volume of foreign exchange increased
– National economies are vulnerable to financial crisis
• The Rise of FDI and MNCs
– Post-war period dominated by European and Japanese
– 1980s FDI increased rapidly
– Largest portion remain in developed economies
– Concentrated in hightech industries
• The Rise of IT revolution
– Computer, communication
– Social media
• From State-dominated to Market Dominated Economy
– Collapse of soviet command economy
– Failure of the 3rd world import-substitution economy
– Rapid economic development in USA in 1990s
– National economies are determined by international market forces
– Globalization has caused national tension and competition
• Shifting in Distribution of world industry
– From Europe, north America to East , Southeast Asia, LA
• Rise of economic regionalism
– EU, ASEAN, SAARC, NAFTA, SCO
• Rise of Global South: BRICS
• Clash of Civilizations
– Global War on Terror and Global Onslaught on Islam
– Western values and systemic dominance
 Intellectual Perspectives on IPE
• Liberalism, Marxism, Nationalism
– Mixed changes in theses perspectives since the end of the Cold War
• State-centric Realism
– State as the principal actor in international affairs
– No authority superior to that
– Analysis should focus on the behaviours of individual states
– National security and interests principal concerns of states
• Constructivism
– human structures are determined mainly by shared ideas rather
than material forces,
– the identities and interests of human beings are constructed or are the
product of these shared ideas rather than being products of nature.
– Role of ideas, social structure and human volition in political affairs
 The Purpose of Economic Activity
• Is it to benefit individual consumers?
• Is it to promote certain social welfare goals?
• Is it to maximize national power?