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Alliances are what?
More than wartime pacts, they shape long term international order
What do alliances do?
combine power and solve collective problems
combine power
allies achieve more together than alone
solve collective problems
coordination against threats
coalition
short term agreement, Ad Hoc (ex. WWII coalitions)
Ad Hoc
necessary or needeed
alliance
institutionalized, enduring (ex. NATO)
What are the three phases of alliances?
Ad-Hoc coalitions (pre WWII)
Integrated Military Alliances (Post WWII)
Political Organizations (Post Cold War)
Ad Hoc coalitions
pre-WWII
formed out of necessity and during war only
ex. Germany-USSR pact to invade Poland
Integrated Military Alliances
Post WWII
NATO as defense + coordination body, interoperability, shard standards
Political Organizations
Post Cold War
NATO adds political memberships rules (ex. democracy)
functions as a forum for political coordination
What are 2 key alliance dilemmas?
Abandonment and entrapment
abandonment
ally fails to help you when attacked
abandonment example
fear of US abandoning Taiwan
entrapment
ally drags you into its own conflict
entrapment example
fear of US being entangled by Israel in Iran conflict
What are some solutions for abandonment and entrapment?
costly signaling (troop stationing), treaties, tripwires
Why trade?
Autarky, absolute/comparative advantage, trade increases wealth
autarky
economic isolation that leads to inefficency
example of autarky
North Korea
absolute advantage
countries benefit by producing what they make best com
comparative advantage
even if one country is better at everything, trade still helps both
what does trade increase?
wealth, efficiency and innovation
3 illustrations of trade
Salt trade from EU to India; distance doesn’t block efficiency
China has specialization in energy imports and exports of rare earth metals
Korea; nighttime satellite imaging shows North vs South trade openings and activity
Who are winners in trade?
consumers (low prices) and exporters (market access)
who are losers in trade?
import-competing industries (jobs at risk)
political logic behind trade
benefits are dispersed
cost is concentrated, strong by lobbying protectionist groups
3 reasons to not trade
distributional concerns: regional and sectoral inequalities
special interest politics: protectionism by losers (steel, farming)
national security: states protect defense-related industries (ex. US subsidies to shipbuilding or semi conductors)
democratic peace theory
wars between democratic countries are extremely rare
what does it mean that the democracit peace theory id dyadic?
it is about interaction between two (democratic) states
how do democracies remain peaceful?
they cultivate norms of compromise and nonviolent dispute resolution (starts domestically and can be enforced internationally)
what is the expectation for peace regarding leaders of democratic countries?
leaders anticipate reciprocal restraint by other democracies
transparency
institutions reveal preferences, constraints, and resolve, which reduces misperception
electoral incentives
large winning coalitions raise the cost of failed wars, leaders avoid wars unless victory is highly probable
correlation vs causation
democracy does not cause peace
3 things peacefulness may reflect
economic interdependence
institutional transparency
shared alliances/interests
what do economic ties amplify?
the opportunity cost of the conflict
3 phases of the historical evolution of trade
Agricultural Era: limited surplus, low tradability, autarkic communities
Industrial Era: transportable final goods, expanding trade networks
Globalized Supply Chains: fragmented production across many countries
what does war disrupt and what does it do?
it disrupts chains, finance, and welfare, which raises opportunity costs
third party enforcement effects
multinational corporations, institutions, and affected states prefer stability f
firefighter problem
even the weakest link must be supported
agricultural revolution
surplus, farmers went from 80 to less than 2 percent of US population
industrial revolution
mechanization and mass production
service revolution
intangibles become dominant ( around 80 percent of US workforce) ; ideas and creativity are non-coercible and difficult to monitor
what describes economies today?
advances economies’ surplus is knowledge based (ex. extracting oil like in the Gulf wars is now politically and materially costly, avoid material based wars)
subsistance agriculture
low capital, low appropriation risk
capital-investment economies
sunk investments vulnerable to predation after they’re made
stationary bandit
monopolizes coercion, prefers steady taxation over plunder
what are 2 important institutional transitions?
Magna Carta and American Rev: put constraints on extraction, representation, and rights
Post WW2 Reciprocal System: US security provision without formal empire
reciprocity logic
alignment and cooperation sustains the system; noncompliance risks withdrawal wh
what is the main transition shown regarding trade throughout history?
a sedentary life transitioned into governance by trade