POLS 360 1st EditionExam # 1 Study Guide8-21Realism and International Relations1. Origins of International Political Economy- started in 1970s- not complimentary to realism- political science and economics1970s- End of Bretton Woods and end of Gold Standard- Vietnam = cost $- OPEC, oil embargoes- Civil Rights/Great Society = $$- Détente- Start looking at economyBretton Woods – 1944Economic Order – UK, France, U.S. (hegemon)1. stabilize international currencies -> hyperinflation2. rebuild Europe3. liberalize international trade -> money -> wealth1945-71- U.S. hegemon- Gold Standard = every U.S. dollar is 1/35 oz. of gold- fixed exchange rates- floating exchange rates2. 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 proneMercantilism 1500-1700- Trade- State’s currency reserve- MONEY- Exports up, imports down -> dependent- Balance of tradeIndustrial RevolutionNeorealism/Structural RealismHamilton (U.S.) and List (Germany)- Develop manufacturing -> infant industries- Nascent states- Indus. Rev. in England- Agriculture- Limited trade- Competition- Empire -> cosmopolitan econ8-26Liberal IPERealism – mercantilism -> more wealth -> military powerHegemonic 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 benefitsClassical Econ -> Adam Smith- Laissez-fare – minimal state interference in econ- Trade and openness- - varietyKeynesianism (1930s)- Mixed economy and safety netsNeoliberalismIPE -> 1975 Berston, Keohane, Nye (authors)1977 Power and Interdependence1. Absence of hierarchy among issues2. Multiple channels of connectivity3. Decline of use of military force- Soft power-diplomacyIR changes the world dynamically, but to realists it is staticAsymmetrical Interdependence- Imbalance -> Dependency Theory- Using coercion ex. Latin Am and U.S.- Bring animosityRegime Theory- Stephen Krasner 1980s- A regime is implicit and explicit principles, rules, norms, and decision making procedures around which actors’ expectations converge8-28Marxism and Dependency TheoryLed to the Communist Manifesto (1848)- Dialectic approach- - thesis vs. antithesis = synthesisMarx 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 downfallMarxism and Domestic ApproachContradictions of capitalism- Poverty of proletariat – raise wages- Econ downturn- Surplus productionJohn 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 expensiveDependency 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 zones2. Import substitution policies (Latin America)- Manufacture goods that were usually imported3. Withdrawal from international system9-2Hegemonic Stability Theory- States learn to cooperate- Goals and strategies, rules/enforce- Capitalism- DemocracyAfter Hegemony- Hypothesis -> anarchy- Institutions- Rational actors – for own well-being- Cooperation (no costs) vs. alone (costs)Prisoner’s Dilemma = indiv rationality vs. group rationalityCheating -> free ridingReciprocity – enforced mechanism1. Consider other’ reputations2. Have complete info as possible3. EnforcementWar is costly!!!!!!!Shadow of the Future never ends for IR9-4- Before globalization, Keohane and Nye shed light on transnational relations and intensified border interactions- Interdependent worldGlobalizationWhat 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- TransportationKeohane and Nye definition: acceleration and intensification of interaction/integration among the people, companies, and govs of different statesAge of Discovery – transportation – East India Co.- Imperialism -> Era of EmpireAge of Technology: good or bad?Good: info, diversity in world markets, NGOs filling in, cosmopolitanismBad: interdependence/domino effect, disease, attack on culture, MNCs, environmentTensions:1. Individual vs. society2. Local vs. supernational (EU)3. Free market vs. gov intervention9-9Hegemonic 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- -