21-36 of 36 Results  for:

  • Political Economy x
Clear all

Article

Cross-border migration of people from one country to another has become an increasingly important feature of the globalizing world and it raises many important economic, social, and political issues. Migration is overwhelmingly from less developed to more developed countries and regions. Some of the factors affecting migration include: differences between wages for equivalent jobs; access to the benefits system of host countries plus state education, housing, and health care; and a desire to travel, build new skills and qualifications, and develop networks. On a more economic standpoint, studies show that labor migration provides various advantages. Migrants can provide complementary skills to domestic workers, which can raise the productivity of both. Migration can also be a driver of technological change and a fresh source of entrepreneurs. Much innovation comes from the work of teams of people who have different perspectives and experiences. Furthermore, a convenient way to accommodate individual actors in the global economy is to view them as economically dependent workers rather than as citizens capable of bringing about social change. The economic globalization process has modified this perspective to some extent, with greater recognition of the integration of a diverse, but nationally based, workforce into production patterns that can span several sovereign jurisdictions and world regions.

Article

Liberal international political economy (IPE) is the offspring of a marriage between mainstream international economics with its focus on markets and mainstream international relations with its emphasis on the state. While clearly involving the traditional disciplines of economics and political science, liberal scholarship in IPE tends to be housed almost exclusively in the latter. Liberal IPE has always maintained a special relationship with its absentee father economics, looking to it particularly as a source of theoretical and especially methodological inspiration. In its earlier phase, the “American school” of IPE, also known by its practitioners as Open Economy Politics (OEP), was strongly oriented toward studying the societal determinants of state trade policy and indeed continues to expand upon this terrain. OEP has moved into many diverse areas since then. Having roots in both neoclassical economics and realist international relations theory, OEP has a strong tendency to limit its empirical interest to observable behavior, define interest in strictly material terms, and assume the psychology of decision-making to be rational and therefore unproblematic. Unsurprisingly, OEP has little room for ideas as interesting and important objects of study, and in turn some of the early pioneers of the liberal approach in IPE have lamented its becoming “too materialistic.”

Article

Shatakshee Dhongde

Economists have long been preoccupied with trying to understand the nature and causes of poverty. From Adam Smith to David Ricardo, Thomas Malthus, Karl Marx, and John Stuart Mill, a common belief among economists is that the benefits of economic growth are rarely experienced by the poorer sections of society. An important issue is how to measure global poverty accurately. International organizations such as the United Nations and the World Bank have endeavored to measure global poverty since the adoption of the Millennium Development Goals (MDG), stated in the UN’s Millennium Declaration which was adopted in 2000 by 189 nations. However, measuring global poverty is far from simple. Estimates of poverty and particularly of global poverty are very sensitive to the underlying assumptions, such as the notion of poverty itself, the choice of welfare indicator, the unit of measurement used, and purchasing power parity rates. One of the significant advances in global poverty studies was the World Bank’s introduction of a poverty line in the 1990 World Development Report (WDR). Despite these efforts, the precise number of poor in the world remains ambiguous. Nevertheless, emerging frontiers in poverty analysis indicate new interest in measuring poverty more broadly. Some ideas that may dominate the future of poverty research include multidimensional poverty, vulnerability to poverty, and chronic poverty.

Article

Mercantilism and realism would appear to go hand in glove with each other. If realism represents both a systemic worldview and explanatory model for world politics, then mercantilism would appear to be the paradigm’s default foreign economic policy doctrine. And, to be sure, there are obvious and strong areas of overlap. Both paradigms stress the autonomous role of the state—and warn against capture by particularistic interests. Both also stress the conditioning effects of the distribution of power in defining national economic interests. Despite these constants, however, over time, the two approaches diverged more and more. Most modern-day writers who sympathize with mercantilism do so from perspectives ranging from left-leaning social democracy to more radical Gramscian critiques. Realists, on the other hand, have tended to gravitate towards the conservative, Burkean side of the political spectrum. While realists and mercantilists might agree on the role that power plays in the global economy, they do not necessarily agree on the normative implications of that insight. Paradoxically, as realism has acquired a more “scientific” cast, it has become less influential in international political economy (IPE) scholarship. For realism to maintain its relevancy in IPE, it must reacquire its deftness in incorporating nonstructural variables into its explanatory framework. The paradigm retains some useful predictive power for how systemic political variables affect global economic outcomes, but it is of little use in discussing the reverse causal effects.

Article

The Millennium Development Goals (MDGs), endorsed by 189 governments at the Millennium Summit, propose a concerted global effort to reduce the incidence of severe poverty and many of its most serious manifestations over a twenty-five-year period. The MDGs offer crucial insights into the politics of poverty and poverty reduction in international affairs. Their political dimensions can be analyzed in terms of agency, the nature and limits of accountability, the use and manipulation of quantitative goals for political ends, the dangerous illusion that MDG objectives can be accomplished in large part by mobilizing more development assistance, and the MDGs’ distinctly apolitical approach to the structural causes of poverty. The MDG initiative should be situated in three ongoing streams of debate and discussion: the debate over the relative priority of growth and of human development for poverty reduction; the tension between the assertion of rights and the enunciation of donor-driven goals as the political engine of poverty reduction; and the debate over the roles of markets and of state direction and regulation. While the MDGs concentrate on increasing aid flows to reduce the incidence of poverty and its manifestations, international trade and finance arrangements too often impede rapid progress. This is evident in water privatization, trade rules, and anti-retroviral medicines for HIV/AIDS patients. A way forward is to integrate the MDGs more deeply with human rights guarantees. Donors, for example, must take seriously the 2002 Draft Guidelines for the application of human rights to poverty reduction strategies.

Article

Elena McLean and Muhammet Bas

Natural disasters such as cyclones, droughts, earthquakes, floods, landslides, volcanoes, or pandemics routinely have cross-border implications. Transboundary risks of natural disasters tend to be the greatest for neighboring countries but often extend regionally or even globally. Even disasters with seemingly localized impacts contained within the national borders of a given state may have indirect short-term or long-term effects on other countries through refugee flows, conflict spillovers, volatility of global commodity prices, disruption of trade relations, financial flows, or global supply chains. Natural disasters may increase the risk of interstate conflict because of commitment problems, reduced opportunity costs of conflict, shocks to status quo divisions of resources, or demarcation of territories among countries, or because of leaders’ heightened diversionary incentives in favor of conflict. In some cases, disasters may have a pacifying effect on ongoing hostilities by creating opportunities for disaster diplomacy among conflict parties. Population displacement in disaster zones can send refugee flows and other types of migration across borders, with varying short-term and long-term socioeconomic and political effects in home and host countries. Adverse effects of natural disasters on regional and global economic activity shape patterns of international trade and financial flows among countries. To mitigate such risks from natural disasters and facilitate adjustment and recovery efforts, countries may turn to international cooperation through mechanisms for disaster relief and preparedness. Regional and global governmental and non-governmental organizations (NGOs) are common means to initiate and maintain such cooperative efforts.

Article

Debora Halbert and Ashley Lukens

Intellectual property rights (IPRs) encompass several different legal regimes—such as patents, copyrights, trademarks, and “sui generis” protections—developed to protect intangible assets associated with ideas, expressions, and inventions, which are included under the broad umbrella term of “intellectual property” (IP). However, the evolution of these legal regimes has always been fraught with tension. Those desiring access to knowledge without restrictive property barriers resisted the expansion of IPRs, which means that the history of IP is entangled in development efforts. As member countries of the United Nations sought to fully extend IP protection around the globe, the World Intellectual Property Organization (WIPO) was created, central to which was the debate over the scope of international IP and demands by the less developed countries for less restrictive IPRs. However, it is the Trade Related Aspects of Intellectual Property Agreement (TRIPS) that has become the most powerful arbiter of IP rights. Meanwhile, the main debates and the specific political battles surrounding IPRs include, but are not limited to, biotechnology, biopiracy, copyright piracy, file sharing, traditional knowledge, access to knowledge, and access to medicine. Ultimately, the literature on international IP has evolved considerably, becoming increasingly relevant to more than legal scholars and business professionals. Nevertheless, additional research is needed in theorizing about the core concepts of IP; the complex role between nationalism, the state, culture, and IPRs; and the search for alternatives to IP.

Article

The political economy of violent conflict is a body of literature that investigates how economic issues and interests shape the dynamics associated to violent conflict after the Cold War. The literature covers an area of research focusing on civil wars—the predominant type of conflict in the 1990s and early 2000s—and an area of research focusing on other types of violent conflict within states, such as permanent emergencies, criminal violence, and political violence associated to turbulent transitions. The first area involves four themes that have come to characterize discussions on the political economy of civil wars, including research on the role of greed and grievance in conflict onset, on economic interests in civil wars, on the nature of conflict economies, and on conflict financing. The second area responds to the evolution of violent conflict beyond the categories of “interstate” or “civil” war and shows how political economy research adapted to new types of violent conflict within states as it moved beyond the “post-Cold War” era. Overall, the literature on the political economy of violence conflict emphasizes the role of informal systems behind power, profits and violence, and the economic interests and functions of violence underlying to violent conflict. It has also become a conceptual laboratory for scholars who after years of field research tried to make sense of the realities of authoritarian, violent or war-affected countries. By extending the boundaries of the literature beyond the study of civil wars after the Cold War, political economy research can serve as an important analytical lens to better understand the constantly evolving nature of violent conflict and to inform sober judgment on the possible policy responses to them.

Article

Poststructural research in International Political Economy (IPE) is a relatively young and growing field of studies that includes a variety of very diverse theories and approaches. These approaches to IPE emphasize the contingency of structures and meanings, and the struggles within the processes in which structures and objectivities are constructed. Poststructuralists argue that the subject is an inherent part of the structure. However, the fact that the structure itself is dislocated means that it is unable to completely determine the subject. From a poststructuralist perspective, it is not the absent structural identity, but the failed structural identity that renders the subject possible. Far from being relativist, the concept of contingency points to a structured uncertainty, that is, chance backed by force. Poststructural approaches aim at deconstructing ahistorical truth claims by exploring the processes of meaning-making and the various struggles for objectivity. Accordingly, they characterize the relation between state, economy, and society as a product of sedimentations arising from a series of social and political struggles. Relying on postpositivist methodology, poststructural approaches proceed on the assumption that meaning, truth, and facts are socially and politically constructed. For this reason, poststructural research has a special interest in studying the conflictual processes in which some meanings and truth claims prevail while others are rejected.

Article

The terms “region,” “regionalism,” and “regional integration” are often used synonymously in the academe. For instance, one author refers to Pacific Asian regionalization, North American regionalism and regional integration in Europe. Some authors view “regionalism” as the analytically broader term. Since the mid-1990s, there has been a more general movement toward “economic regionalism or regional trade agreements,” building on the concept of “new regionalism” and coinciding with the notion of “preferential trading arrangements.” This implies only those integration schemes which have an economic purpose, are in geographical proximity to each other, and consist of more than two states qualify for inclusion. There are five stages in the deepening of formal regional integration: free trade area, customs union, common market, economic union, and political union. From the late-1950s to the late 1990s, two approaches have attempted to explain the process (rather than the origins) of regionalism: neofunctionalism and liberal intergovernmentalism. Scholars argue whether there is a causal connection between regional integration and Global Political Economy (GPE), or whether they are simply correlated. Three themes from the literature on regionalism and GPE can be identified. First, the numerous studies since the late 1990s that have taken a decidedly comparative approach, irrespective of their level of analysis, agree that there is some “logic” to regional arrangements. Second, confusion occurs with domestic causality. Third, large membership has become a concern for the European Union.

Article

Giselle Datz

Sovereign borrowing and debt default have long been a part of a nation’s existence. Sovereign debt defaults (that is, the suspension of interest or principal payment on due debt) were common from the sixteenth century, when Edward III declared a default after military defeat in 1340, to the nineteenth century, when Latin American countries defaulted on some of their debts. Early loans were made in the form of repayable taxes until the system evolved to allow for sovereign loans, transparent enough that secondary markets for these debts were soon developed. A government may default on its debt due to unwillingness or inability to pay. In both cases, default is a difficult political decision whose real costs remain somewhat ambiguous from a theoretical standpoint. The costs of default are often contingent on the type of debt restructuring deal reached between the debtor and the creditor. The scholarly literature on sovereign debt crises is substantial, particularly with respect to the economic, legal, and political costs of default. More recent theoretical work has focused on the trend toward increased domestic debt, which is expected to help reduce the probability of a debt crisis. However, domestically issued sovereign debt can lead to other types of risk. While relying on domestic institutional investors in local economies can help smooth cycles of liquidity shortages, over-reliance on those investors (particularly pension funds) can undermine the solvency of domestic banks and social security arrangements.

Article

Kimberly A. Weir and Vicki L. Golich

Pedagogy is the discipline that deals with the theory and practice of teaching. Pedagogy informs teaching strategies, teacher actions, and teacher judgments and decisions by taking into consideration theories of learning, understandings of students and their needs, and the backgrounds and interests of individual students. The teaching of global political economy (GPE) offers an alternative, and a challenge, to conventional economics education. Its emphasis on the competing currents of economic thought and their association with rival political philosophies adds complexity to the subject. However, this engagement with controversial issues creates more intellectual excitement than a narrow, “technical” treatment of orthodox analysis. There is also more scope for students to link their own personal experiences with the broader concerns of political economy. By emphasizing a liberal educational philosophy, educators can attain a more grounded approach to study, relating to students’ own experiences and more explicitly acknowledging the role of personal and political values. Scholars argue that there are viable alternatives to the standard micro-macro-quantitative curriculum and to the conventional teaching of economics. A pedagogy emphasizing controversies, linking competing economic analyses and different political perspectives, is possible. Ultimately, the teaching of global political economy has some inherent advantages as a means of interesting and engaging students.

Article

The new information age has the potential not only to alter the historical path of world system development, as other socio-technological paradigmatic shifts have done, but also to transform it substantially. One school of thought argues for a complete upending of past patterns with nation states in their hierarchical alignment as the center core and periphery of power in this system. An alternative view instead argues that the regularized interaction that characterizes a world system may envisage a number of modes of production without altering its fundamental structure. The world system in this view is made up of a variety of complex intra-organizational and interorganizational networks intersecting with geographical networks structured particularly around linked clusters of socioeconomic activity. Information and carrier technologies based on new forms of information technologies and their connection to network technologies play a vital role in the long-term evolution of world system development characterized by both path-dependencies and major transformations that result from technological innovations. While digital information technologies significantly alter the processing and use of information as a central element of power and control within this network structure and therefore its network logic, they do not break the evolutionary process of world system development.

Article

Marc L. Busch and Edward D. Mansfield

A survey of the literature on trade has revealed that it is becoming more difficult for elected officials resist protectionist pressures by citing constraints imposed by global pacts and supply free trade. There are two main reasons why. First, the literature on the design and politics of international institutions increasingly emphasizes how they build in slack that can undermine government claims of being constrained. Second, as states accede to an ever-growing list of overlapping international institutions, there is often a choice among, or uncertainty over, which institution’s obligations apply. Where this situation creates more policy space for government officials, it also will make it more difficult for them to credibly tie their hands and supply free trade in the face of interest group pressures for protection. Currently, the literature is somewhat at a turning point. Questions about the design and politics of international institutions, and the growing thickness of the market for them, are very much in vogue. These questions have profound implications for the supply of free trade. The credibility of elected officials’ hands-tying strategies is likely undermined where institutions anticipate the political reactions of their members, or where members can shop for different rules on trade to accommodate domestic preferences. The irony is that the proliferation of international institutions may lead scholars of trade policy to renew their focus on domestic interest groups.

Article

Russell Alan Williams and Jeff Loder

Compared to trade in goods, there hasn’t been much attention given to international exchange in services and efforts to promote liberalization of those exchanges. Despite considerable efforts to promote global and regional services liberalization since the 1980s, much of the study of “trade in services” remains somewhat underdeveloped. Governments maintain foreign direct investment (FDI) restrictions on the ownership and operation of financial services and media companies, and most countries continue to insist on strict limitations on the rights of workers to trade their services across borders. While the revolution in communications and transportation technology in recent decades has intensified interest in services, services are still highly regulated and the removal of traditional trade barriers is inadequate to promote liberalization. The initiatives undertaken to promote the removal of service trade barriers include the World Trade Organization’s (WTO) General Agreement on Trade In Services (GATS); the European Union’s (EU) Services Directive; and the ASEAN Framework Agreement on Services (AFAS) signed by member states of the Association of South Eastern Asian Nation members (ASEAN) in 1995. These initiatives have generated a range of academic controversies and investigation, which has explored three themes: explaining the process by which the issue of liberalization came to the forefront of the global trade agenda, deploying a range of theoretical perspectives; assessing the impact and effectiveness of services liberalization agreements; and explaining why it has proven more difficult to promote liberalization in the services sector.

Article

International trade is a dynamic and powerful force that affects nearly every individual, business, and nation in the world. Its scope and scale have also made international trade an immense, intense, and perennial subject of interest and inquiry. Some of the foundational works on international trade can be traced back to Adam Smith and David Hume, whose theories sought to debunk the commonly held idea of international trade at the time: mercantilism, which viewed exports as beneficial because they generated an increase in foreign currency and a nation’s wealth, and imports as detrimental because they were thought to decrease a nation’s wealth. Today, the general idea of comparative advantage informs almost all neoclassical economists’ models of international trade. However, neoclassical economists tend to assume that the theoretical benefits of international trade are clear, and thus, often ignore or dismiss the negative impacts of international trade and the studies that challenge their theories. In fact, many countries have not seen the benefits predicted by neoclassical economic theories. This is particularly evident when comparing the effects of international trade across developed and developing countries. Furthermore, there is evidence that international trade has developed along patterns that are not predicted by the traditional theories of comparative advantage. Given these, the practice of trade and its international impact can be much murkier.