Perspectives of International Political Economy

Mercantilism

Oldest viewpoint focusing on state security.

Large Definition of Mercantilism

Wealth creation for national security and independence.

Narrow Definition of Mercantilism

Promoting exports while limiting imports.

Historical Context of Mercantilism

Linked to modern nation-state rise (15th-18th century).

Nation vs State

Nation: people; State: legal entity.

Vicious Cycle of Wealth and Power

Wealth and power are interconnected.

Early Mercantilism

Focused on wealth through exports, limiting imports.

Evolution of Mercantilism

Increased trade led to economic rivalry.

Zero-Sum World View

Competitive environment where one gains, another loses.

Hostile Political Environment

Power viewed in absolute gains and losses.

Colonialism and Mercantilism

Military power supplemented economic expansion.

Realism

Politics and power impact economy and markets.

Weltanschauung Post-WWII

Forces driving economic nationalism seek state security.

Nation-State as Primary Actor

Highest unit of sovereign political authority.

Anarchy in International System

State of nature where power resolves conflicts.

Military Instruments in Realism

Realists stress military for state security.

Economic Nationalism

Late 18th century focus on national economy development.

Alexander Hamilton's View

Strong manufacturing with trade protection measures.

Friedrich List's Contribution

State action promotes education, technology, industry.

Neomercantilism

Defensive mercantilist policies by individual nations.

Malevolent Mercantilism

Expansion at others' expense beyond reasonable limits.

Benign Mercantilism

Defensive measures to protect the economy.

Liberalism

Evolved in reaction to real-world trends.

Key Liberal Economists

Includes Smith, Ricardo, Keynes, Hayek, Friedman.

Liberal Philosophy

Central idea is liberty under the law.

Positive-Sum Game in Society

Everyone can gain from mutual bargains.

Liberalism's Economic Perspective

Political economy favors laissez-faire principles.

Adam Smith's Invisible Hand

Self-interest drives competition and economic growth.

Ricardo's Comparative Advantage

Trade benefits all nations involved.

Keynesian Liberalism

State intervention necessary during economic crises.

Bretton Woods System

Keynesian compromise allowing domestic economic policies.

Theory of Hegemonic Stability

Public goods provided by dominant powers.

Marxism and Structuralism

Focus on class struggle and exploitation.

Lenin's Expansion of Marxism

Incorporated imperialism into class struggle theory.

Marx's Laws of Production

Includes falling rate of profit and concentration.

Modern World System

Divides world into core, semiperiphery, and periphery.