GLOBAL POLITICAL

ECONOMY
ALLEAH JOY JAUCIAN KAY PALOMANIA JUDE
OGARTE
 LEARNING OUTCOMES
After finishing this topic, the students are expected to:

Discuss the concept of Global Political Economy

Examine the evolution of global political economy
Evaluate and summarize concepts on global political
economy
GPE: INTODUCTION

Global Political Economy is a field of study that

deals with the interaction between political and economic forces. At
its centre have always been questions of human welfare and how these
might be related to state behaviour and corporate interests in different
parts of the world.

Concerned primarily with the relationships between states and

markets
GPE: SCOPE

The traditional GPE problematic includes analysis of the

political economy of international trade, international finance, North-
South relations, multinational corporations, and hegemony, along with
the consequences of economic globalization.

Analytic approaches to international political economy tend to

vary with the problem being examined.
The Evolution of Global
Economy

David Ricardo
developed Smith’s
Adam Smith’s
Ideas
landmark work, “An
Inquiry into the
Nature and Causes of
Political Economy the Wealth of
emerged as a distinct Nations”
field of the study
The Evolution of Global
Economy
Alfred Marshall
published his
textbook on the
Karl Marx proposed a Principles of
class-based analysis Economics
of political economy
Friedrich List
developed a more-
systematic analysis of
mercantilism
The Evolution of Global
Economy

Economic Crisis

Cold war

Origin of
International Political
Economy
Approaches to International
Political Economy
MERCANTILISM
The most dominant form of economic organization.

Mercantilism believes that actors are aggressive and

conflictual

This system dominated Western European economic thought

and policies from the 16th to the late 18th century.
MERCANTILISM

There was a wide establishment of colonies outside

Europe.

The goal of Mercantilism is not to increase global

wealth but rather to increase the economic power of a
state.

The government attempts to protect domestic

industry.
 Regulation of international trade
ESSENTIAL FEATURES OF State intervention in the economy
MERCANTILISM
Licensed Monopoly
Strong State Government
Gold= Power
 Bullionism
Each nation tried to achieve self-
sufficiency (Autarky)
POLICY INSTRUMENTS Seapower is needed to control
access to foreign markets.
OF MERCANTILISM Colonies provide captive markets.
A large population needed to settle
colonies.
State action is needed to regulate
and enforce the above policies
 LIBERALISM
It assumes that actors - whether they are states,
corporations or individuals - use rational choices to maximize their
self-interest.

These markets are made up of rules, norms, and practices

that shape actor’s economic behavior.
 LIBERALISM
A market is, therefore, a form of a liberal regime that helps
actors to coordinate and cooperate in addressing shared problems.

Economic liberalism believes that when all states adopt

market relations.
 MARXISM
Views class conflict as the fundamental force of human
history between bourgeois owners and proletarian owners.

While individual human beings can be very friendly, they

are combative when placed into groups.
 MARXISM
The bourgeoisie oppresses the proletariat by paying them a
small portion of the profits which the owners make from the labor of
their workers.
Their attempts to do so are constrained by the political and
cultural superstructure produced by bourgeois leaders to support
economic position.
Bretton Woods
System
 BRETTON WOODS
John Maynard Keynes and Harry Dexter White.
This system allowed international foreign exchange. The rate was
$35 an ounce.
This system created two important institutions that are still
existing until to this day. These institutions are the International
Monetary Fund (IMF) and the World Bank.
The 1973 Bretton Woods System.
KAHOOT
TIME!!!
 THANK YOU!
Do you have any questions?

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