READING SUMMARIES (JAN-MAR)
1. January 10: Introduction to International Political Economy Gilpin, Robert. 1987. The Political Economy of International Relations. Princeton: Princeton University Press. pp. 25-64
The three ideologies: liberalism, nationalism, and Marxism • Ideology: system of thought and belief by which [individuals and groups] explain how their social system operates and what principles it exemplifies • Conflict among 3 moral/intellectual positions revolve around role and significance of market in organization of society and economic affairs • Three ideologies differ on broad range of questions: what is the significance of the market for economic growth and the distribution of wealth among groups and societies? What ought to be the role of markets in the organization of domestic and international society? What is the effect of the market system on issues of war or peace? • Three ideologies are different in their conceptions of relationships among society, states, and market • Every controversy in field of international political economy is reducible to differing conceptions of these relationships • Economic liberalism, Marxism, and economic nationalism define the conflicting perspectives that individuals have w/ regard to implications of market system for domestic and international society • Term ‘ideology’ is used rather than ‘theory’ because each position entails a total belief system concerning the nature of human beings and society and is thus akin to what Thomas Kuhn has called a paradigm • Economic nationalism (originally called mercantilism), which developed from practice of statesmen in early modern period, assumes and advocates the primacy of politics over economics • It is a doctrine of states building and asserts that the market should be subordinate to the pursuit of state interests • It argues that political factors do, or should determine economic relations • Liberalism, which emerged from Enlightenment in writing of Adam Smith, was reaction to mercantilism and has become embodied in orthodox economic • It assumes that politics and economic exist, at least ideally, in separate spheres; it argues that markets—in the interest of efficiency, growth, and consumer choice—should be free from political interference • Marxism, which appeared in mid-19th century as reaction against liberalism and classical economics, holds that economics drives politics • Political conflict arises from struggle among classes over distribution of wealth • Political conflict will cease w/ elimination of market and society of classes
The Liberal Perspective
• Liberal economic theory is committed to free markets and minimal state intervention • Liberal political theory is committed to individual equality and liberty • Liberal perspective on political economy is embodied in discipline of economics • Liberalism has assumed many forms—classical, neo-classical, Keynesian, monetarist, Austrian, rational expectation, etc • These variants range from those giving priority to equality and tending toward social democracy and state interventionism, to those stressing liberty and noninterventionism at the expense of social equality • All forms of economic liberalism are committed to the market and the price mechanism as the most efficacious means for organizing domestic and international economic relations • Liberalism: a doctrine and a set of principles for organizing and managing a market economy in order to achieve maximum efficiency, economic growth, and individual welfare • Economic liberalism assumes that market arises spontaneously in order to satisfy human needs and that, once it is in operation, it functions in accordance w/ its own internal logic • Humans beings are by nature economic animals, and therefore markets evolve naturally without central direction • To facilitate...