Liberalism and institutionalism

can there be a social contract in the international system?

• Based on ideas from social contract theorists like Thomas Hobbes, John Locke, and Jean-Jacques Rousseau

• In domestic politics, individuals create a social contract to establish government and maintain order

• In the international system, there is no world government, so the system remains anarchic

• Key question:

  • Can states create agreements, rules, and institutions that function like a social contract

• Possible examples:

  • International law, treaties, and organizations that regulate state behavior

• Key idea

  • Debate over whether cooperation and shared rules between states can partially replace the need for a central authority.

what are enlightenment thinkers?

• Charles-Irénée Castel de Saint-Pierre (Abbot St-Pierre)

  • Wrote Project for Perpetual Peace in Europe (1713)

  • Criticized the traditional balance of power system

  • Proposed a broad alliance of European states to deter aggression and maintain peace

• Immanuel Kant

  • Toward Perpetual Peace: A Philosophical Sketch (1795)

  Three key ideas for lasting peace:

  • Republican governments (democracy) reduce the likelihood of war

  • Federation of free states governed by international law

  • Cosmopolitanism → increased international trade and interaction

• Key idea

  • Peace can be promoted through democracy, international cooperation, and economic interdependence, rather than only through power politics.

what are the assumptions and propositions of classical liberalism?

Assumptions

• International system = anarchy

  • No central authority above states

• State = group of individuals

  • State behavior reflects societal interests and domestic politics

• Individuals have diverse interests

  • Including security, freedom, and economic prosperity

• Individuals are rational

  • They seek to maximize their interests and cooperate when beneficial

Propositions

• Domestic politics matter

  • Democracies are less likely to fight each other

• International law and institutions

  • Help reduce conflict and encourage cooperation

• International trade

  • Economic interdependence lowers incentives for war

• Progress is possible

  • Cooperation and institutions can reduce the negative effects of anarchy over time.

how do domestic politics, democracy, and foreign policy tie together?

• In liberal theory, foreign policy is shaped by domestic politics

• Individuals

  • People have different interests and preferences

• Societal groups

  • Individuals organize into interest groups (economic, social, political)

  • These groups compete to influence government decisions

• State institutions

  • Political institutions aggregate and filter these interests

  • Governments translate domestic pressures into policy choices

• Foreign policy

  • The state’s actions internationally reflect domestic interests and political structures

• Key idea

  • Domestic political systems (especially democracies) shape how states behave internationally.formulate their foreign policies based on diverse interests and group influences.

international law and institutions: the concert of europe

• Created after the Napoleonic Wars to maintain stability in Europe

• Congress of Vienna (1814–1815)

  • European powers met to reorganize Europe and restore order

• Objectives

  • Preserve peace and stability

  • Maintain the existing political order (absolutist monarchies)

• How it worked

  • Great powers cooperated and held meetings to manage conflicts

  • Sometimes used joint interventions to prevent instability

• Key idea

  • Early example of international cooperation and institutions used to maintain peace

  • Debate whether it functioned as a balance of power system or a rule-based order.

what does special status for great powers mean?

Special status for great powers:

• The most powerful states have greater authority and influence in managing the international system

• They coordinate policies, make key decisions, and maintain stability in the system.

what is multilateralism?

• Cooperation between three or more states to address common issues

• States work together through agreements, institutions, or organizations

• Decisions are based on shared rules, collective decision-making, and coordination

• Examples

  • International treaties

  • Global organizations (e.g., the United Nations)

• Key idea

  • Countries cooperate collectively rather than acting alone or only with one partner to manage international problems.

what is collective security?

its the objective of reducing the likelihood of war by deterring aggressions and the principles are

states forgo the use of force, except in self-defence

states commit to act collectively to stop and punish any state that breaks the first rule the collective defence among nations to ensure peace and security.

what is liberalism 1.0: the league of nations?

• Created after World War I to prevent future wars

• Based on Fourteen Points proposed by Woodrow Wilson

• Key ideas:

  • Open diplomacy

  • Reduction of armaments and trade barriers

  • Creation of an association of nations

• League of Nations:

  • Early international organization to promote collective security and cooperation

• Key idea:

  • Attempt to implement liberal ideas of peace through institutions, but often seen as too idealistic and weak.

what does the league of nations have to do with collective security?

League of Nations and collective security:

• Created after WWI to maintain peace through collective security

• Members agreed that aggression against one state would be opposed by all.

how is the league of nations in practice?

• Limited membership

  • Some major powers did not join or left, weakening the League

• Unanimity rule

  • Decisions required agreement from all members, causing decision paralysis

• Lack of commitment from great powers

  • Powerful states were unwilling to enforce collective security

• Alternative alliances emerged

  • States relied on separate security agreements instead of the League

• Key idea

  • The League lacked participation, enforcement power, and political support, leading to the failure of its collective security system.

what is liberalism 2.0: the united nations?

• Created after World War II and the failure of the League of Nations

• Designed as a more inclusive and effective international organization

• United Nations

  • Promotes international cooperation, peace, and collective security

• Other institutions supporting the liberal order:

  • World Bank

  • International Monetary Fund

  • General Agreement on Tariffs and Trade (later the World Trade Organization)

• Key idea:

  • Strengthening international institutions and cooperation to maintain peace and stability.

how does the un charter relate to collective security?

• Article 2(4)

  • UN members must not threaten or use force against other states

  • Protects territorial integrity and political independence

  Key idea:

  • Force is generally prohibited, supporting collective peace and security.

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  Chapter VI – Pacific Settlement of Disputes

  • States should resolve conflicts peacefully (negotiation, mediation, arbitration, diplomacy)

  • UN Security Council can investigate disputes and recommend solutions

  Key idea:

  • Encourages peaceful conflict resolution before force.

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  Chapter VII – Action Against Threats to Peace

  • Article 41: Non-military measures (sanctions, economic/diplomatic cuts)

  • Article 42: Military force can be authorized by the Security Council

  • Article 51: States retain the right to self-defence

  Key idea:

  • The UN can organize collective action to respond to aggression.

what is liberalism 3.0?

it states that liberalism 2.0 is in crisis because: 1. Power shifts in the international system

• The rise of non-Western powers (e.g., China) challenges the U.S.-led order.

2. Declining U.S. leadership

• The United States, which built and sustained the system after WWII, has less relative power and legitimacy.

3. Internal tensions within liberalism

• Globalization and economic inequality have produced domestic backlash against liberal institutions, trade, and multilateralism.

it no longer reflects the current distribution of power and there is a need for major reforms

How does international trade promote peace according to liberal theory?

• Immanuel Kant: commerce is a “civilizing force” that encourages cooperation between states

• Economic interdependence: countries rely on each other through trade

• This reduces incentives for conflict

Two main mechanisms:

1. Higher costs of war

   • War disrupts trade and economic benefits

   • States risk losing wealth and markets

2. Affluence and cultural change

   • Trade increases prosperity

   • Greater interaction and shared interests make conflict less likely

what are the limits of liberalism?

its too idealist/naive, the belief in progress is a teleological view of history and it has imperialist tendencies (progress = spread of reason and application of liberal ideas involves expansion)

what is the context to cooperation?

in the 1970s-1980s there was a development and deepening of international institutions, its a response to neorealism and power transition theory, and is an attempt to make classical liberalism more ‘scientific’

what are the assumptions and propositions of institutionalism?

Assumptions

• International system = anarchy

• States are rational and unitary actors

• States pursue security and wealth

Main arguments

1. Cooperation is possible even under anarchy

2. Providing global public goods requires solving collective action problems

3. International institutions help facilitate cooperation between states

Key idea:
Institutions help states coordinate, reduce uncertainty, and solve collective problems, making cooperation easier.

What is the Prisoner’s Dilemma, and how do repeated interactions, the shadow of the future, and tit-for-tat affect cooperation?

Prisoner’s Dilemma (basic idea)

• Two actors choose to cooperate or defect.

• Best collective outcome: both cooperate.

• Individual incentive: defect to gain more.

• Result: both defect → worse outcome for both.

If the game is played only once

• Rational actors tend to defect, because they cannot trust the other side.

If the game is repeated

• Actors expect future interactions.

Shadow of the future

• Knowing you will interact again encourages cooperation, because defection now may lead to retaliation later.

Tit-for-tat strategy

• Start by cooperating.

• Then copy the other player’s previous move.

• Reward cooperation and punish defection.

Key idea:
Repeated interaction + shadow of the future + tit-for-tat can sustain cooperation even under anarchy.

Why do global public goods often produce sub-optimal outcomes in international politics?

Global public goods:

• Benefits all states and cannot easily exclude anyone

• Examples: peace/security, disease control, stable trade system, financial stability, climate protection

Problem:

• States face collective action problems

Why sub-optimal outcomes occur:

• States may free-ride on others’ efforts

• Each state prefers others to pay the cost of cooperation

Result:

• Under-provision of global public goods

Key insight from the chart:

• The cost of inaction is often much higher than the cost of collective action (especially for climate and disease).

what are collective action problems?

individuals acting independently and in their self-interest leading to a sub-optimal outcome from a collective standpoint

How do international institutions help states cooperate?

Definition (Krasner, 1983):

• International institutions are sets of principles, norms, rules, and decision-making procedures that shape states’ expectations.

Purpose:

• Help states coordinate behavior and cooperate.

How they promote cooperation:

• Reduce uncertainty about others’ actions

• Set rules and norms for acceptable behavior

• Provide information and monitoring

• Create expectations of repeated interaction

Link to Prisoner’s Dilemma:

• Cooperation (3,3) is the best joint outcome, but states may defect.

• Institutions help make cooperation more likely.

how are institutions facilitators of cooperation?

• Collective action problem → leads to sub-optimal outcomes (states don’t cooperate enough)

• International institutions provide rules, information, and coordination

Effect:

• Institutions make cooperation easier

• Cooperation produces mutual gains

Cycle:

• Gains from cooperation encourage continued cooperation

Key idea:
Institutions help states overcome collective action problems and achieve better outcomes together.

How do international institutions reduce transaction costs?

• Provide common rules and procedures → states don’t have to renegotiate every time

• Centralize information → reduce uncertainty about others’ behavior

• Create forums for negotiation → easier communication between states

• Monitor compliance → build trust and reduce risk of cheating

• Standardize expectations → make cooperation faster and more predictable

Key idea:
Institutions lower the time, effort, and uncertainty involved in cooperation, making agreements easier to reach and maintain.

How do international institutions facilitate issue linkage?

• Issue linkage: connecting multiple issues or negotiations together

• Institutions allow states to trade concessions across different policy areas

How it helps cooperation:

• States can gain in one area while conceding in another

• Helps resolve deadlocks in negotiations

• Makes agreements more mutually beneficial

Example:

• A state accepts trade rules in exchange for security cooperation or environmental commitments

Key idea:
Linking issues makes it easier for states with different interests to reach agreements.

How do international institutions facilitate cooperation through information sharing?

• Collect and share information about states’ policies and actions

• Increase transparency → states know what others are doing

• Reduce uncertainty and mistrust

• Monitor compliance with agreements

• Reveal cheating or non-compliance

Key idea:
Better information makes cooperation less risky and more credible.

How do reciprocity and reputation help international institutions promote cooperation?

Reciprocity

• States respond to others’ actions (cooperate if others cooperate, retaliate if they defect)

• Encourages ongoing cooperation in repeated interactions

Reputation

• States care about being seen as reliable and trustworthy partners

• Breaking agreements damages credibility and future cooperation

Role of institutions

• Make behavior more visible

• Help track compliance and past actions

Key idea:
Concern for future reciprocity and reputation encourages states to cooperate and respect agreements.