POLS 360 1st Edition Exam 1 Study Guide 8 21 Realism and International Relations 1 Origins of International Political Economy started in 1970s not complimentary to realism political science and economics 1970s End of Bretton Woods and end of Gold Standard Vietnam cost OPEC oil embargoes Civil Rights Great Society D tente Start looking at economy Bretton Woods 1944 Economic Order UK France U S hegemon 1 stabilize international currencies hyperinflation 2 rebuild Europe 3 liberalize international trade money wealth 1945 71 U S hegemon Gold Standard every U S dollar is 1 35 oz of gold fixed exchange rates floating exchange rates 2 Realism and IPE war is inevitable realists believe we live in anarchy no central authority self help self interested survival states only matter states are rational and unitary actors U S has tariffs on steel relative gains there is no room for cooperation state of nature selfishness war prone Mercantilism 1500 1700 Trade State s currency reserve MONEY Exports up imports down dependent Balance of trade Industrial Revolution Neorealism Structural Realism Hamilton U S and List Germany Develop manufacturing infant industries Nascent states Indus Rev in England Agriculture Limited trade Competition Empire cosmopolitan econ 8 26 Liberal IPE Realism mercantilism more wealth military power Hegemonic Stability Theory 1933 by Charles Kindleberger Bretton Woods Liberal International Economic Order International Monetary Fund IMF World Bank General Agreement on Tariffs and Trade GATT IMF U S hegemony was a necessary and sufficient condition largest trader sucks up startup costs 1945 1971 was the end of the gold standard Fixed exchange rates floating determined by market Shift toward Neorealism 1970s 80s relative gains instead of absolute gains Neoliberalism late 70s Classical Liberalism Bottom up approach Individual the protection of society benefits Classical Econ Adam Smith Laissez fare minimal state interference in econ Trade and openness variety Keynesianism 1930s Mixed economy and safety nets Neoliberalism IPE 1975 Berston Keohane Nye authors 1977 Power and Interdependence 1 Absence of hierarchy among issues 2 Multiple channels of connectivity 3 Decline of use of military force Soft power diplomacy IR changes the world dynamically but to realists it is static Asymmetrical Interdependence Imbalance Dependency Theory Using coercion ex Latin Am and U S Bring animosity Regime Theory Stephen Krasner 1980s A regime is implicit and explicit principles rules norms and decision making procedures around which actors expectations converge 8 28 Marxism and Dependency Theory Led to the Communist Manifesto 1848 Dialectic approach thesis vs antithesis synthesis Marx during Industrial Revolution Bourgeoisie capitalists and proletariat working class Modernization Theory Agrarian nature family health Agrarian went to industrial which is stable Marx said contradictions of capitalism will bring downfall Marxism and Domestic Approach Contradictions of capitalism Poverty of proletariat raise wages Econ downturn Surplus production John Hobson 1902 Solution is imperialism Spending White Man s Burden Vladimir Lenin 1905 Imperialism the Highest Stage of Capitalism Labor aristocracy union leaders Global comp for colonies is expensive Dependency Theory Prescriptions Latin America 1950s 60s Purposeful underdevelopment of former colonies Global South Core keeping periphery underdeveloped declining terms of trade Semi periphery states can fluctuate Negative balance of trade 1 Export led growth Asia Manufacture goods cheaper Attract with cheap labor tax breaks and exclusive econ zones 2 Import substitution policies Latin America Manufacture goods that were usually imported 3 Withdrawal from international system 9 2 Hegemonic Stability Theory States learn to cooperate Goals and strategies rules enforce Capitalism Democracy After Hegemony Hypothesis anarchy Institutions Rational actors for own well being Cooperation no costs vs alone costs Prisoner s Dilemma indiv rationality vs group rationality Cheating free riding Reciprocity enforced mechanism 1 Consider other reputations 2 Have complete info as possible 3 Enforcement War is costly Shadow of the Future never ends for IR 9 4 Before globalization Keohane and Nye shed light on transnational relations and intensified border interactions Interdependent world Globalization What is it Integration of nation states Continuously increasing Larger network of people non state actors Al Qaeda ISIS 1998 East Asian Crisis Inexpensive and easy communication burner phones Technology Transportation Keohane and Nye definition acceleration and intensification of interaction integration among the people companies and govs of different states Age of Discovery transportation East India Co Imperialism Era of Empire Age of Technology good or bad Good info diversity in world markets NGOs filling in cosmopolitanism Bad interdependence domino effect disease attack on culture MNCs environment Tensions 1 Individual vs society 2 Local vs supernational EU 3 Free market vs gov intervention 9 9 Hegemonic Stability Theory cooperation under anarchy Regime formation necessary Eliminates startup costs Resources Enforcement mechanism anarchy Cheating defecting Regime continuation Keohane and Axelrod sufficient benefits continue enforcement Sanctions tit for tat and reciprocity Shadow of the Future reputations