Week 3 Liberalism and Neo-liberalism
Question: What is the difference between relative and absolute gains? What role does this concept play in neo-liberal thinking?
What is the difference between relative and absolute gains?3 & 4 Bibliography5
What is the difference between relative and absolute gains?
-What role does this concept play in neo-liberalist thinking?
This essay addresses the question about the difference between relative and absolute gains within the neo-liberal body of thought. The terms ‘relative ’and absolute gains will be explained, and there will be examples given between absolute and relative gain. Furthermore there will be a description and analyze of relative and absolute gain in global society. This will be done with a link to the main thinkers of neo-liberalism. In the conclusion I will give my own opinion on the topic and a short summary of the facts stated before. What are relative gains and absolute gains
Absolute and relative gain are two principles that appear when the international relation theories neo-liberalism and neo-realism are discussed. According to Feina Cai (2011) the biggest differences between neo-realism and neo-liberalism can be indicated from the biggest differences between absolute and relative gain. According to neo-liberalists, states are per definition egoists and measure their interests by individual gain, my gain is the only one that counts (Grieco, 1988). In international cooperation a neo-liberalist will always look if he is getting the most out of the situation. States will not enter in a certain action or agreement if they are not sure they will become the biggest benefiter. Opposed to the ideas of absolute gain, you can see relative gain, this key term is, as stated before, commonly associated by neo-realists. Relative gain means that states act with keeping in notion to respect the balance of power between them. Relative gain means that...