Introduction to Political

Economy

Structuralist Approach: Marxist and Neomarxist Theories

Prof. Birgül Demirtaş

Historical Roots of Structuralism
KarlMarx and other Marxist and
Neomarxist scholars

19th century
-Global capitalist economic structure: The most important factor to explain other
structures

-Economy: determines other structures

It determines all economic, political and social institutions.

Without understanding the main dynamics of global economic system we can not grasp economy and politics.
IPE from below
Understanding IPE from the perspective
of poor and powerless people
Main problems of global capitalist
economy
Poverty

Inequality

Exploitation

Crises
Historical Roots of Marxism

Karl Marx
(1818-1883)
Statue of Marx and Engels in Berlin
What did Karl Marx observe in European
economy in the 19th century?
Poverty

Working under terrible conditions

Historical materialism:

Economic activity is the basis of all institutions.

Forces of production determine economic and political systems.

If there is a change in economic structure,
it has an impact on all institutions.
According to Marx, history is dynamic. It
changes. Evolution of structure.
Dialectical materialism: Everything develops via material contradictions.

Opposing economic elements and counter elements lead to crisis and it leads to the next stage in the
historical evolution.
Classes:
Bourgeoisie
They own means of production.

Wealthy class
Proletariat:
Workers’ class

Exploited class
3 objective laws according to Marx:
1)The law of the falling rate of profit: Machines would
replace workers and profits would decline and disappear
2)The law of disproportionality: Workers
can not afford to buy what they produce.
Labor theory of value: Value of a good is related to
the amount of labor necessary for its production.
3)Law of accumulation of capital: Capitalism leads
to increasing inequality in distribution of income.
There is a historical evolution according
to Karl Marx
Stages of economic evolution:

1-Feudalism

2-Capitalism

3-Socialism

4-Communism
Historical determinism.
Class struggle
Contributions of Marx to Structural
Approach:
1)definition of class

2)class conflict and exploitation of

workers class

3)capitalist control over state

4)ideological manipulation
1)The Definition of Class:

Capital: Means of production. All assets used to produce. All machines, equipment etc.

Private ownership of means of production.

Capitalist class: owns means of production.

Working class (proletariat): does not own means of production.

2)Class Struggle and and Exploitation of
Proletariat

Workers sell their labour in order to get

an income and survive.
In capitalist economies, there is always unemployment.

Because of unemployed people, wages of proletariat are kept low.

«Either accept low wages or starve» (p. 84)

«…the only thing worse than being exploited under
capitalism is not being employed.» (p. 84)
It means one is unemployed.
3)Capitalist Control of the State:
Capitalist class has huge influence on politicians.

They give money to political parties. Lobbying

There is corruption.

They fund think tanks to legitimise the policies of the governing party.
What about workers? Do they have any
influence on the political system?
It depends on the type of democracy.
If it is a consolidated democracy, there can be political parties (like social democratic parties) representing interests of worker
class.

Workers can establish trade unions.

They can protest and strike.

State and governing party support and
advance interests of bourgeoisie.
4)Ideological Manipulation

Power is implemented through use of

ideology

Capitalist ideology gives legitimacy to

capitalist economic system by controlling
minds of people.
Workers should be convinced that the
system is legitimate.
Examples:
Advantages of liberal economy and free
trade? What about disadvantages?
Advantages of small state?
According to Marxist approach, bourgeoisie manipulates the
beliefs of workers so that they are unconscious of their
exploitation.
Contributions of Lenin
His book: Imperialism : The Highest
Stage of Capitalism (1917)

Imperialism allowed capitalism to live

longer.
Neo-Marxist Theories
Dependency Theory
Structure of the global economic system divides the world into two:

Core and periphery countries

Peripheral countries are dependent upon
core countries.
3 eras of dependence:
Colonial dependence (18th and 19th cc)

Financial-industrial dependence (19th and

early 20th cc)

Structure of dependence (post-war

multinational corporations)
How to change this system? Can
international organisations play a role?
UNCTAD

New International Economic Order (NIEO)

World Systems Theory
Immanuel Wallerstein

World system:Unit of analysis

Global economic system determines
political and social relations.
Nation states do not have freedom to determine their policies.

They have to play economically determined roles.

Core: Capital-intensive, higher-skill

Semi-periphery

Periphery: Labor-intensive, low-skill

Poor countries are poor to enable core
countries to get rich.
Hierarchy of power between core and periphery.

Core countries dominate and exploit periphery.

Interview with Immanuel Wallerstein:

https://www.youtube.com/watch?
v=EPcryvhSOco&t=8s&ab_channel=MichalisLoggos
Neoimperialism and Neocolonialism

States no longer need to occupy other

countries to control or exploit them
Criticism of globalisation

Occupy Wall Street Movement.