Detailed Study Notes on Liberalism and Institutionalism in International Relations

Liberalism and Institutionalism: Peace through Law and Trade?
Course Information

  • Course Title: POLI 205 – Introduction to International Relations

  • Instructor: Simon Bertrand

  • Institution: Concordia University, Department of Political Science

  • Semester: Winter 2026

Overview of Lecture

  • Discussion of the rupture in the world order;

  • Transition from an era of relative geopolitics under constraints to one dominated by power rivalry;

  • Focus on how middle powers can contribute to a new international order while embracing core values such as:

    • Respect for human rights

    • Sustainable development

    • Sovereignty

    • Territorial integrity of states.

Current Context

  • The international landscape is marked by great power rivalry;

  • The conventional rules-based international order is diminishing;

  • As Thucydides noted, "the strong do what they can, and the weak suffer what they must."

  • There is a prevailing trend of countries conforming to avoid conflict and seeking safety through compliance.

Historical Context

  • Countries like Canada thrived under the rules-based order, benefiting from its predictability, while recognizing its imperfections:

    • Strong nations sometimes exempt themselves from rules;

    • Various enforcement levels of trade law, dependent on the actor's status as either victim or perpetrator.

    • Despite its fiction, the order provided useful public goods, such as:

    • Open sea lanes

    • Stable financial systems

    • Collective security arrangements

  • The current state signifies a paradigm shift rather than a mere transitional phase.

Middle Powers’ Response

  • Middle powers, including Canada, are called to adapt to this new reality with a dual approach:

    1. Build higher walls (isolationism);

    2. Create a more ambitious plan (engagement).

  • Adoption of “values-based realism” championed by Alexander Stubb:

    • Principled Approach: Commitment to fundamental values such as:

    • Sovereignty and territorial integrity

    • Prohibition against force (aligned with UN Charter)

    • Human rights respect

    • Pragmatic Approach: Acknowledgement of diverse interests and incremental progress; operating

      with the premise that not all partners share the same values.

  • Examples of Canadian government actions since it took office:

    • Tax reductions across multiple sectors

    • Removal of barriers to interprovincial trade

    • Hosting a $1$ trillion investment initiative covering energy, AI, critical minerals, and trade corridors

    • Doubling defense spending by $2030$; ensuring growth for domestic industries

    • Navigating new strategic partnerships using variable geometry (coalitions based on values/interests).

Liberalism as a Paradigm

  • Liberalism is not a singular doctrine but a philosophical tradition rooted in Enlightenment thought.

  • Key Characteristics:

    • Belief in human reason and progress;

    • Anarchy can be mitigated through proper governance mechanisms;

    • Overall, a cautiously optimistic outlook on international relations.

Types of Liberalism

  1. Classical Liberalism

  2. Institutionalism

Social Contract in International Relations

  • Discusses differing views from:

    • Thomas Hobbes

    • John Locke

    • Jean-Jacques Rousseau

Enlightenment Thinkers' Contributions

  • Abbot St-Pierre: Proposal for Perpetual Peace in Europe (1713);

    • Critique of the traditional balance of power

    • Advocates for broad alliances to deter aggression.

  • Immanuel Kant: Towards Perpetual Peace: A Philosophical Sketch (1795)

    • Article 1: Republicanism (democracy);

    • Article 2: Federation of Free States (establishment of international law);

    • Article 3: Cosmopolitanism (emphasis on international trade).

Classical Liberalism Assumptions

  1. The international system is characterized by anarchy.

  2. The state comprises a collective of individuals with varying interests.

  3. Individuals possess diverse priorities including survival, freedom, and wealth.

  4. Rationality underpins individual decision-making.

Propositions of Classical Liberalism

  1. Domestic political structures impact foreign policy; democracies decrease likelihood of conflict.

  2. International law and institutions foster cooperation and reduce instances of conflict.

  3. Trade promotes peace by linking economies, creating interdependence.

  4. Progress is achievable; effects of anarchy can be mitigated over time.

Theoretical Frameworks

Domestic Politics, Democracy, and Foreign Policy

  • Individuals, societal groups, and state institutions converge to shape foreign policy.

International Law and Institutions: The Concert of Europe

  • Context: Post-Napoleonic wars, significance of the Congress of Vienna (1814-1815).

  • Aimed to preserve peace and the absolutist order through:

    • Ad hoc meetings and interventions by the great powers;

    • Investigates the tension between balance of power and rule-based order.

Great Powers' Status

  • Concept: With great power comes great responsibility.

Multilateralism

  • Examples: OECD, G20; the role and contributions of leaders like Lee Hsien Loong.

Collective Security

  • Objective: Mitigating war through deterrence.

  • Fundamental Principles:

    1. States agree to renounce the use of force except in self-defense.

    2. Collective action is invoked against any state breaching peace.

Liberalism 1.0: The League of Nations

  • Context: Emergence post-World War I;

  • Wilson's Fourteen Points outlined a vision for peace, emphasizing components like:

    • Open diplomacy (Point 1);

    • Creation of an Association of Nations (Point 14).

  • The League's perception as overly idealistic.

The League of Nations' Collective Security Framework

  • Article 10: Members commit to uphold territorial integrity.

  • Article 11: War and threats declared matters of collective concern, necessitating prompt action.

Failure of the League of Nations

  • Key Reasons for Ineffectiveness:

    • Limited membership excluding major powers;

    • The unanimity principle leading to Council paralysis;

    • Major powers' reluctance to enforce collective security;

    • The League ultimately overshadowed by alternative arrangements such as:

    • French-Polish alliance (1921);

    • Locarno Treaties (1925);

    • French-Soviet pact (1935).

Liberalism 2.0: The United Nations

  • Emergence following World War II to address League’s shortcomings;

  • Added institutions include World Bank, IMF, GATT (now WTO) alongside specialized agencies.

UN Charter and Collective Security Principles

  • Article 2 (4) prohibits the threat or use of force in international relations.

  • Chapter VI: Encourages peaceful dispute resolution.

  • Chapter VII: Details actions regarding breaches of peace, including:

    • Article 41: Non-military measures such as sanctions;

    • Article 42: Military action authorized against aggressors;

    • Article 51: Right to self-defense.

Liberalism 3.0

  • Described as being in crisis (Ikenberry, 2009);

  • Recognition that it does not accommodate the new distribution of power and demands major reforms.

International Trade and Peace Argument

  • Kant's view of commerce as a civilizing force;

  • Modern assertions posit that economic interdependence fosters peace through mechanisms such as:

    • High costs of conflict;

    • Wealth generation and sociocultural adaptations.

Critiques of Liberalism

  1. Idealism: Criticism of liberalism being too naive or hopeful.

  2. Teleological History: The view of history as prescriptive and inevitable (e.g., Fukuyama vs. historical events).

  3. Imperialism: Exposing biases in liberal thought, suggesting expansion via the spread of reason is flawed.

Reinforcement of Liberal Theories

  • A continuation of the breakdown of past frameworks (Liberalism 1.0, 2.0) into current understandings.

Institutionalism Context

  • Late 20th century development aiming to deepen international cooperation.

  • Recognized as a response to neorealism and power transition theory.

Institutionalism Assumptions

  1. The international system characterized by anarchy.

  2. States acting as rational and unified entities.

  3. State interests comprise security and wealth.

Institutionalism Propositions

  1. Cooperation is feasible in an anarchic setting.

  2. Global public goods necessitate addressing collective action challenges.

  3. International institutions assist in promoting cooperation.

Prisoner's Dilemma in Institutional Theory

  • Illustrated through strategic interaction:

    • Non-cooperation leading to worst payoffs;

    • Cooperation yielding better long-term outcomes.

Extended Interaction

  • Discussion of repeated games leading to cooperation via strategies like tit-for-tat:

    • Example Payoffs:

    • DDDD=4(1+1+1+1)DDDD = 4 (1+1+1+1)

    • CCCC=12(3+3+3+3)CCCC = 12 (3+3+3+3).

  • Conclusion: Over time, cooperation can develop into a rational choice.

Characteristics of Public Goods

  • Non-excludability and non-rivalry marking public goods:

    • Free Rider Problem: individuals benefiting without contributing.

Collective Action Problems

  • Arises when individuals pursue self-interested actions leading to a collectively negative outcome.

  • Counterbalancing can happen via coordination or altering social norms.

Role of International Institutions

  • Defined as sets of principles, norms, and rules shaping actor expectations (Krasner, 1983).

  • Institutions serve to reduce transaction costs, facilitate linkage of issues, and promote mutual interests through information sharing.

Specific Examples of Institutions

  • International Civil Aviation Organization (ICAO): Reducing transaction costs through global aviation standards.

  • World Trade Organization (WTO): Facilitating trade negotiations and resolutions.

  • International Atomic Energy Agency (IAEA): Monitoring nuclear activities.

Key Attributes of Effective International Institutions

  • Emphasizing cooperation, managing interdependence and reciprocity, leading to enhanced collective outcomes.

  • The reliance on reputational frameworks to sustain cooperative behavior.

Reciprocity and Reputation

  • Reciprocity

    • A fundamental mechanism for cooperation in an anarchic system where no global government enforces rules.

    • Specific Reciprocity: Entails the simultaneous exchange of items of equivalent value, often found in trade agreements or bilateral treaties.

    • Diffuse Reciprocity: A broader sense of obligation where states do not insist on immediate or direct equivalence but expect that their cooperation will be reciprocated in the long run.

  • Reputation

    • A state's past record of behavior serves as a signal to other actors regarding its future reliability.

    • Information Costs: Institutions help by monitoring state behavior, which lowers the cost for other states to determine if a partner is trustworthy.

    • Sanctions and Costs: States with a reputation for breaking agreements (defection) face higher costs in future negotiations, as others may demand stricter verification or refuse to cooperate entirely.

    • Reputational frameworks create a "shadow of the future" where the desire for future benefits encourages compliance in the present.