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Article

International Relations theory has tended to overlook the role of Africa and Africans in the international system. Traditionally, the discipline’s most influential theorists have focused instead on relationships between and perspectives of “major powers.” A growing body of work, however, has challenged these more limited efforts to conceptualize African agency in international politics. This scholarship has emphasized the significant space available to, and carved-out by, African states in molding the agendas of international institutions, and the role of African governments and advocacy networks in influencing the trajectory of major international debates around issues such as aid, development, trade, climate change, and migration. The study of African agency in international politics continues to wrestle with two key debates: the meanings of “agency” and “African.” Much of the literature focuses primarily on the role and influence of African states rather than that of African citizens and communities. This focus provides, at best, only a partial and qualified view of the ways in which African agency is secured and exercised at the global level, particularly given the significant structural constraints imposed on Africa by global economic and political inequalities. The extent to which contemporary analysis captures the breadth of African engagement with the international system is also compromised by current state-centric approaches. It is thus necessary to examine a range of approaches adopted by scholars to deepen and nuance the study of African agency in international politics, including work on agenda-setting, mesolevel dynamics and microlevel dynamics.

Article

Africa turned the corner of marginalization in international affairs at the beginning of the 21st century. The end of the Cold War and global shifts in power toward the end of the previous century were closely followed by “Africa rising.” This contrasted previous decades-long narratives of a hopeless, war-ravaged, and plague-ridden continent. The Africa rising mantra followed reforms implemented in the late 1980s and early 1990s that improved institutional capacities and established African countries on firm business, economic, and political trajectories. This promised improved business environment, economic vitality, and positive democratic outlook. Africa has thus become important to major powers. They court it for its support to govern challenges that necessitate international cooperation and to enhance the major powers’ influence in global institutions and on the world. Rising Asian economies such as China and India compete for Africa’s natural resources against traditional global powers like the European Union (EU). The EU has long been economically and politically involved with Africa and has generally dominated these relations. Leading theories, discussions, and research that examine the historic, economic, and geopolitical factors at play in the evolution of African Union (AU)-EU relations suggest that elements of dependency are a calculated creation of colonialism and encounters that occurred between Africa and Europe before the advent of colonialism. Dependency continues to characterize these relations, as shown by formal AU-EU pacts. Decolonial scholars argue that the dependency is real, as Africa did not demolish colonial structures at independence. Some critical scholars further argue that the history of colonialism is also pertinent to the history of the EU in that the history of European integration was partly influenced by the history of colonialism. That is, the history of colonialism contributed to the political creation of the EU, and attempts by Western European countries to form a pan-European organization coincided with early 20th-century efforts to stabilize colonialism in Africa. The European countries could only efficiently exploit Africa by combining their political and economic capacities. AU-EU relations face many challenges in the 21st century. Influence in the relations is predominately unidirectional, with the EU determining the terms of engagement even on issues peculiar to Africa or the AU and where the latter appears to have the upper hand. The challenges show that the AU and EU are interdependent, but the onus is on the AU to set priorities right and enhance capabilities for engaging the EU. This would be easier if the EU were not continuously devising ways to maintain its dominance in the “partnership.” An overarching challenge in the partnership, therefore, is finding common ground and leveling the playing field.

Article

Following the end of the Cold War, the hegemony of the United States in Latin America was intimately related to the globalization of the hemispheric political economy. Free-trade agreements (FTAs) were crucial to this process, helping to extend and entrench the neoliberal model. As a result of the region’s political turn to the left during the 2000s, however, the Washington Consensus became increasingly untenable. As U.S. trade policy subsequently moved in the direction of a “post-Washington Consensus,” the “Pink Tide” fostered the creation of Latin American-led approaches to integration independent of the United States. In this context, the Trans-Pacific Partnership (TPP) was designed to catalyse a new wave of (neo)liberalization among its 12 participating countries, including the United States, Canada, Chile, Peru, and Mexico. The TPP codified an updated and comprehensive set of rules on an array of trade and investment disciplines not covered in existing agreements. Strategically linking the Asia-Pacific to the Americas, but excluding China, the TPP responded to China’s growing economic presence in Asia and Latin America. Largely a creation of U.S. foreign economic policy, the United States withdrew from the TPP prior to its ratification and following the election of Donald Trump as U.S. president. The remaining 11 countries signed a more limited version of the agreement, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is open to future participation by the United States and other countries in Asia and Latin America. The uncertainties in the TPP process represented the further erosion of Washington’s “free trade” consensus, reflecting, among other things, a crisis of U.S. hegemony in the Americas.

Article

Lucia Quaglia

The banking union is considered to be one of the main steps in economic integration in the European Union. Given the rather recent establishment of this policy, academic research on the banking union does not have a long lineage, yet it is an area of bourgeoning academic enquiry. There are three main “waves” of research on the banking union in political science, which have mostly proceeded in a chronological order. The first wave of scholarly work focused on the “road” to banking union, from the breaking out of the sovereign debt crisis in the euro area in 2010 to the agreement on the blueprint for the banking union in 2012, explaining why it was set up. The second wave of literature explained how the banking union was set up and took an “asymmetric” shape, whereby banking supervision was transferred to the European Central Bank (ECB); however, banking resolution partly remained at the national level, whereas other components of the banking union, namely, a common deposit guarantee scheme and a common fiscal backstop, were not set up. The third wave of research discussed the functioning of the banking union, its effects and defects. The banking union has slowly brought about significant changes in the banking systems of the member states of the euro area and in government–business relations in the banking sector, even though these effects have varied considerably across countries.

Article

Javier A. Vadell and Clarisa Giaccaglia

The roots of Latin American regionalism blend together with the birth of the region’s states, and despite its vicissitudes, the integrationist ideal represents the most ambitious form of regional feeling. It is an ancient process that has undergone continuous ups and downs as a result of domestic and foreign restrictions. In the early 21st century, the deterioration of the “open regionalism” strategy, along with the rise to power of diverse left governments, led to the development of a “physical-structural,” “post-liberal,” “post-neoliberal,” or “post-hegemonic” integration model. In this context, Brazil—governed by Luiz Inácio Lula da Silva—constituted itself as a crucial protagonist and main articulator of the South American integrationist project. From this perspective, in addition to the existing MERCOSUR, UNASUR was created, and it encompassed the whole subcontinent, thus reaffirming the formulation of regional policies regarding the concept of “South America.” At present, however, a new stage of these regionalisms has started. Today, the Latin American and Caribbean dynamics seem to bifurcate, on the one hand, into a reissue of open regionalism—through the Pacific Alliance—and, on the other hand, into a fragmentation process of South America as a geopolitical bloc and regional actor in the global system. Regarding this last point, it is unavoidable to link the regional integration crisis to the critical political and economic situation undergone by Brazil, considered as the leader of the South American process. In short, the withdrawal of the Brazilian leadership in South America, along with the shifts and disorientations that took place in UNASUR and MERCOSUR, have damaged the credibility of the region’s initiatives, as well as the possibility to identify a concerted voice in South America as a distinguishable whole. That regional reality poses an interesting challenge that implies, to a great extent, making a heuristic effort to avoid being enclosed by the concepts and assumptions of the processes of regionalism and integration that were born to explain the origin, evolution, and development of the European Union. From this perspective, the authors claim that the new phase experienced by Latin American regionalisms cannot be understood as a lack of institutionality—as it is held by those perspectives that support the explanations that they “mirror” the European process—but rather it answers chiefly to a self-redefinition process influenced by significant alterations that occurred both in global and national conjunctures and that therefore, have had an impact on the regional logic. Given the regional historical tradition marked by vicissitudes, the authors believe that they can hardly talk about a “Sudamexit” (SouthAmexit in English) process, namely, an effective abandonment of regionalisms. Recognizing the distinctive features of Latin American and Caribbean countries, rather, leads us to think of dynamics that generate a complex and disorganized netting in which the political-institutional course of development of Brazil will have relevant repercussions in the future Latin American and Caribbean process as a whole.

Article

Bas Hooijmaaijers and Stephan Keukeleire

Brazil, Russia, India, China, and South Africa (BRICS) have, since the beginning of the 21st century, gained greater influence in global political and economic affairs and, since 2006, also steadily developed and increased their political dialogue and cooperation. South Africa joining the BRICS political grouping in 2011 was matched by a strengthening of the BRICS dialogue. This was reflected in the broadening range of issues covered, the increasing level of specificity of the BRICS joint declarations and cooperation, and the institutionalization of BRICS cooperation in various policy fields, including the creation of the New Development Bank (NDB). Notwithstanding the increased interaction between the BRICS states on the various political, economic, and diplomatic levels, the countries differ considerably in their political, economic, military, and demographic weight and interests and in their regional and global aspirations. China particularly stands out among the BRICS due to its political and economic weight. There are sufficient reasons to question the significance and impact of the BRICS format. Still, the BRICS countries have found each other in their commitment to counter the “unjust” Western-dominated multilateral world in which they are generally underrepresented. The EU did not develop a “BRICS policy” as such, which is understandable given the major differences between the BRICS countries and the ambiguous nature of the BRICS format. To deal with the various emerging powers and complement its predominantly regional partnerships, the EU instead institutionalized and deepened the political and economic bilateral relations with each of the BRICS countries, including through the objective of establishing a bilateral “strategic partnership” with each of these countries. However, the analysis of the EU’s relationship with the BRICS countries indicates that the label “strategic partnerships” mainly served as a rhetorical façade which belied that the EU failed to turn these relationships into real strategic partnerships and to behave strategically toward the BRICS countries. Another challenge for the EU appears when analyzing the BRICS within the broader context of various emerging power constellations and multilateral frameworks, including variations of the BRICS format (such as BRICS Plus, BASIC, and IBSA), multilateral frameworks with one or more BRICS countries at their center (such as the SCO, EAEU, and BRI), and regional forums launched by China. Taken together, they point to an increasingly dense set of partially overlapping formal and informal networks on all political, diplomatic, and administrative levels, covering an ever-wider scope of policy areas and providing opportunities for debate, consultation, and coordination. Whereas most of these forums are in and of themselves not very influential, taken together they have an impact on the EU and its traditional view on multilateralism in several ways. Seen from this perspective, the BRICS and other multilateral forums pose major challenges for both European diplomats and European scholars. They will have to make considerable efforts to understand and engage with these various forums, which are manifestations of an increasingly influential and powerful non-Western world wherein the role of Europe is much more limited.

Article

Capitalist peace theory (CPT) has gained considerable attention in international relations theory and the conflict literature. Its proponents maintain that a capitalist organization of an economy pacifies states internally and externally. They portray CPT either as a complement or as a substitute to other liberal explanations such as the democratic peace thesis. They, however, disagree about the facet of capitalism that is supposed to reduce the risk of political violence. Key contributions have identified three main drivers of the capitalist peace phenomenon: the fiscal constraints that a laissez-faire regimen puts on potentially aggressive governments, the mollifying norms that a capitalist organization creates; and the increased ability of capitalist governments to signal their intentions effectively in a confrontation with an adversary. Defining capitalism narrowly through the freedom entrepreneurs enjoy domestically, this article evaluates the key causal mechanisms and empirical evidence that have been advanced in support of these competing claims. The article argues that CPT needs to be based on a narrow definition of capitalism and that it should scrutinize motives and constraints of the main actors more deeply. Future contributions to the CPT literature should also pay close attention to classic theories of capitalism, which all considered individual risk taking and the dramatic changes between booms and busts to be key constitutive features of this form of economic governance. Finally, empirical tests of the proposed causal mechanism should rely on data sets in which capitalists appear as actors and not as “structures.” If the literature takes these objections seriously, CPT could establish itself as central theory of peace and war in two respects. First, it could serve as an antidote to the theory of imperialism and other “critical” approaches that see in capitalism a source of conflict rather than of peace. Second, it could become an important complement to commercial liberalism that stresses the external openness rather than the internal freedoms as an economic cause of peace and that particularly sees trade and foreign direct investment as pacifying forces.

Article

Official relations between Chile and the European Union (formerly the European Communities) date back to 1967 when the two parties first opened diplomatic representations in Brussels and Santiago, respectively. As Chile transitioned to a democratic polity from 1990, the relationship deepened. Reflecting the EU’s support for democratization in Latin America, both parties formalized ties through the signing of a Cooperation Framework Agreement in 1991 and a Framework Agreement on Trade and Economic Cooperation in 1996. The latter set Chile and the EU on the path to eventually negotiating an Association Agreement, including a preferential trade agreement (PTA), between 1999 and 2002. The Association Agreement has been in force since 2003, and in 2017 Chile and the EU decided to launch negotiations to modernize the preferential trade agreement part of the Association. The bilateral relationship, and its study, have been defined by three key areas: (1) political relations, (2) cooperation relations, and (2) economic relations. The political and cooperation ties between the two parties have, in turn, been determined by two strands of EU external policies: (1) the EU’s overarching approach toward relations with Latin America, and (2) the evolution of the EU’s development policy. Economic relations, for their part, cover rising trade flows and increasing investment (especially EU foreign direct investment outflows and stocks in Chile). Chile’s attractiveness, despite its relatively small economy and population, derives from its specific political economy. Chile’s painful market reforms under the Pinochet regime set it on a path of greater economic openness than its neighbours. Democratic governments since 1990 have continued policies of trade liberalization, low tariffs, and active engagement in the creation of a dense network of global preferential trade agreements with Chile at its center as a gateway to Latin America. This has helped to diversify Chilean trade relations away from over-reliance on the EU or the United States, and has made Chile an attractive target for foreign investment. The trade agreement part of the Association Agreement ushered in deeper economic ties, and a body of scholarly analyses of the agreement and its impacts has slowly emerged. Relations with Chile have formed part of the EU’s broader strategy toward Latin America, rather than independent EU strategy. Initial steps toward an Association Agreement were within the context of negotiations for an Association Agreement between the EU and Mercosur (the Common Market of the South). Analysis of the EU–Chile relationship has, as a result, tended to be sparse and to be included as a subsection in studies of broader EU–Latin America relations, and especially EU–Mercosur relations. Nevertheless, the relationship represents a positive example of successful engagement with a relatively like-minded partner in a mature association, and demonstrates the extent of and possibilities for EU foreign policy engagement. Moreover, the relationship has served as a testing ground for new types of projects and collaborations and for mutual learning, such as the parties’ joint projects on increasing gender representation in politics, or the inclusion of gender clauses, for the first time in an EU preferential trade agreement, in the modernization of the EU–Chile agreement.

Article

China’s economic impact on Africa in the 21st century has been enormous. China became Africa’s largest trading partner in 2009 and has subsequently widened the gap with Africa’s second largest trading partner. China is Africa’s largest bilateral source of loans and an important provider of Organisation for Economic Co-operation and Development (OECD)-equivalent aid, although well behind the European Union and the United States. Annual foreign direct investment flows by Chinese companies are growing and are now in the same league as companies from other major investing nations. Increasingly, African leaders are focusing their economic relationships on China and, because of China’s economic success, some of them are also looking to China as an economic and political model. The future in Africa of China’s Belt and Road Initiative and the use of the renminbi (RMB) as an international currency are less clear. China’s influence on African economies comes with challenges. China has developed a significant trade surplus with Africa. Although resource-rich African countries have sizable trade surpluses with China, most African countries, especially the resource-poor ones, have trade deficits, some of which are huge. The influx of inexpensive Chinese products is also stifling Africa’s ability to produce similar goods. African governments welcome Chinese loans, which are usually used for infrastructure projects, but there are signs these loans are contributing to a debt problem in an increasing number of countries. Most Chinese aid to Africa consists of the concessionary component of these loans. Small Chinese traders have flocked to Africa, competing head-to-head with African counterparts. This has led to growing antagonism with African market traders, although African consumers welcome the competition. While Western countries collectively are much more important to African economies than is China, Beijing has become the single most important bilateral economic partner in a number of countries and is challenging the United States and Europe for economic leadership across the continent. China’s most significant competition in the coming years may be less from the United States and other Western and Western-affiliated countries such as Japan and more from developing countries such as India, Brazil, the Gulf States, Turkey, and Indonesia.

Article

Johan Adriaensen

In 1958, the European Economic Community was formed as a customs union with a common external tariff. From then on, the Common Commercial Policy—also known as the European Union’s (EU) trade policy—served as the interface between the increasingly integrated common market and its external trade partners. Like the creation of the single market, contemporary trade policy has long transcended discussions about tariffs and quotas at the border and has focused increasingly on the impediments to trade caused by regulatory divergences. Whether they concern agricultural subsidies or cultural protections, rules on public procurement or food standards, insofar as a regulation discriminates against exporters, it can potentially be part of a trade negotiation. The evolving nature of trade policy has triggered a redefinition of both the scope of the EU’s exclusive competencies as well as the procedures to govern this policy domain. The central actor in EU trade policy is the European Commission, which is the designated negotiator for external trade agreements. Whereas member states always played a crucial role in overseeing such negotiations in the Council, the European Parliament has only taken up a position of power since 2009. Beyond securing market access abroad and protecting domestic sectors at home, post-material values have come to feature more prominently in the balancing act of contemporary trade discussions. This has galvanized a far wider range of societal actors to lobby the EU institutions in order to tilt the balance in their favor. Complicating matters even further, the EU conducts a large part of its foreign policy through the Common Commercial Policy. Contrary to most other instruments of the EU’s external action, trade policy is an exclusive competency of the EU. Fostering development, promoting stability, providing humanitarian aid, and the promotion and enforcement of human rights and sustainable development commitments are but a few of the many objectives pursued via trade policy. However, there are clear limitations to the fungibility of the EU’s large market power for foreign policy objectives. It should therefore be clear that the literature on the Common Commercial Policy is extremely diverse. Situated at the nexus of international political economy, regulatory governance, and foreign policy, it has become a well-studied policy domain through a great variety of theoretical and disciplinary lenses. The prominence of trade scholarship in EU studies is unlikely to change soon as developments at the international level, where the Western liberal order is under increasing pressure, but also domestically, where the contestation of several trade negotiations and the position of trade policy within the EU’s broader external action, are set to animate future debates.

Article

International relations scholars tend to differentiate between a state’s use of military and economic instruments of power and also between rewards and punishments. In conflict scenarios, leaders are typically depicted as facing a choice between using military versus economic forms of punishment to achieve desired political outcomes. The role of economic rewards is seldom analyzed within the context of adversarial relations or within combat operations. The U.S. military has used money in combat and noncombat operations to influence actors and shape the operational environment in a manner favorable to the troops. There has been some attention devoted to the military’s noncombatant role and to efforts to win hearts and minds. Little attention has been devoted to the use of money in kinetic operations. The military’s use of money in its operations, including counterinsurgency and stability operations, provides insight for international relations scholars interested in when economic inducements may be effective within adversarial relations or conflict situations. It represents a form of targeted sanctions, in the sense of applying positive inducements selectively at the micro level, to achieve macro-level objectives. The U.S. military has relied on a growing body of empirical research in persuasion science to inform its operations. The case and findings from persuasion science could contribute to understanding the problems and possibilities of harnessing the power of money to achieve political outcomes.

Article

Emerging powers are usually referred to as states whose increasing material capacities and status-seeking strategies may potentially have an impact on the international system and also affect the dominant position of the hegemonic powers therein. The rising of new powers is a recurrent phenomenon in international relations. When talking about emerging powers, scholars associate the words with the so-called BRICS states: Brazil, Russia, India, China, and South Africa. The emergence of BRICS, and especially of China, poses the question of whether the rising process is a peaceful one. Realism, institutionalism, and constructivism have all dealt with the possible systemic impacts of the BRICS states. BRICS nations seem to be reformist rather than disruptive, meaning that they are pushing for the better representation of their self-perceived new status in multilateral institutions rather than challenging the current system per se. In terms of foreign policy, BRICS states interact with well-established powers such as the United States and European ones—herein they display balancing or bandwagoning strategies, as they do also toward each other. Moreover, well-established powers either accommodate or contest the rising process and status claims of these emerging powers. However, BRICS states are also regional powers. Regional peers contest the rising processes of BRICS and particularly claims to global powerhood. While BRICS can be seen as striving for the reform of multilateral institutions, the traditional view of BRICS as a homogenous force, comprising countries with similar interests, is sometimes misleading. Even though BRICS states have their own institution with a new bank, they also pursue different interests within traditional institutions. Therefore, the existing literature on BRICS is tilted toward systemic and institutional concerns. Although works taking into consideration the interplay between the domestic and international levels in foreign policy analysis do exist, they are not necessarily related to emerging processes and rarely go beyond foreign economic policy issues. People, leaders, and governmental institutions are decision makers or are part of the decision-making process in foreign policy, and thus they form perceptions and act according to how the rising process of the state is unfolding. An integration of the systemic, state, and personal levels captures the essence of the foreign policies of BRICS states in the context of rising and can take into consideration the ups and downs and stalemates of rising-process trajectories in international politics.

Article

The European Central Bank (ECB) has been in existence for almost 20 years and more if one considers its immediate predecessor the European Monetary Institute (1994–1997). During these two decades the ECB has become an established institution. It secures price stability and further increased its reputation as a lender of last resort during the financial crisis and its aftermath. In the 2010s, in response to the global financial crisis and the sovereign debt crisis, the ECB has also taken on the role of supervisor of the financial system and monitors developments in the Euro Area financial sector. Political science literature on the ECB can be subdivided into different strands. One strand looks at the ECB as just another central bank and hence examines its role as a central bank with the usual instruments. Another strand of literature examines the role of the ECB as an institution that is insufficiently embedded into democratic checks and balances. This perennial criticism of the ECB was born when the European System of Central Banks (ESCB) was created to be independent from political influence. A third strand of the literature is newer and examines the unorthodox steps that the ECB (and other central banks) took, and have taken, to offset the financial crisis and the ensuing economic crisis. An analysis of European integration and the political economy of the Euro Area can contribute to a better understanding of why the ECB has taken a proactive role. The political science research of the ECB is discussed here as well as the various dimensions of research conducted on the ECB.

Article

Kurt Hübner

Even the most critical observers of the creation of the euro found some nice words on the occasion of its 10th anniversary. And yet it needed only a marginal event like the announcement of the newly elected Greek government that the previously stated public debt ratio was gravely miscalculated to move the euro into a critical crisis zone. Swiftly the attention of private credit markets turned to more member states of the eurozone, only to eventually detect that financial stability of banks did not meet sustainability indicators. What is often labeled as “eurozone crisis” is better understood by a political-economic forensic analysis that rather speaks of eurozone crises. First, the causes for financial and then sovereign debt crises of Greece, Spain, Portugal, and Ireland (to name only the most prominent) differ fundamentally. They were triggered by the same events but caused by differing factors. Second, it is a crisis of economic governance, and thus an institutional crisis that needs fundamental institutional changes. Third, it is a crisis of political leadership. The overlapping character as well as the interplay of those three dimensions hampers a proper understanding of the dynamics of the processes that started in 2010. By differentiating between national crisis causes, triggering mechanisms, policy responses, and multi-level crises management, we suggest a comprehensive analytical framework that may guide current as well as future research in the operating of an incomplete currency union.

Article

On the one hand, the idea of a capitalist peace is a set of loosely integrated, but testable propositions. On the other hand it is part of a wider, libertarian philosophy of life. The spirit of this wider conception is best expressed by a quote from a pioneer of quantitative international politics, in 1981 Rummel wrote, “If you want peace, then minimize the power of government.” Although there has been a proliferation of variables assessing capitalism and economic interdependence—from economic freedom via contract intensity to the avoidance of state ownership or protectionism—the most frequently analyzed proposition about the capitalist peace says that trade makes military conflict and war less likely. By and large, the evidence supports this proposition in dyadic designs as well as in monadic designs. This cross-design validity of the proposition is important, because it distinguishes the peace by trade proposition from the democratic peace proposition. Most researchers agree that war is extremely unlikely in dyads where both nations are democracies. But only a minority contends that democracies are less frequently involved in military conflict than other states. The dyadic and the monadic findings are compatible because military conflict looks even more likely between an autocracy and a democracy than between two autocracies. Whereas the democratic peace is limited in application, the pacifying impact of trade or economic interdependence is more general. Moreover, the democratic peace may be embedded in a wider economic or capitalist peace. There is strong evidence that democracy rests on a foundation of capitalism or economic freedom and the prosperity that has been gained only by capitalism or some degree of economic freedom. Moreover, economic freedom and prosperity contribute to the avoidance of civil war. Better still: Economic freedom does not only promote economic growth and prosperity among those nations where people enjoy economic freedom, but the economic freedom of rich countries provides poor countries with the advantages of backwardness and catch-up opportunities. Capitalist peace theory evolves. It has been suggested that the pacifying impact of trade rests on the expectation that trade, or access to resources and markets, will continue. This suggestion requires a new look at economic sanctions, too. By interfering with trade, sanctions must undermine the expectation of future benefits of trade and globally interconnected markets. Given the rareness of evidence in favor of the effectiveness of economic sanctions in eliminating undesirable policies of other nations, a capitalist peace perspective implies the recommendation to use sanctions much less frequently than politicians do. They are likely to eliminate a pacifying factor when it is most urgently needed. The wider or visionary perspective on the capitalist peace is useful not only in connecting it with the issue of sanctions, but also in demonstrating the inherent limitations of capitalism as a tool to achieve peace. From a static perspective, capitalism, economic freedom, or trade may exert some pacifying impact, as argued above. But capitalism is a dynamic economic order. It is about “creative destruction”. Capitalism is not egalitarian. Nations grow at different speeds. They rise and decline. Capitalism and unequal economic growth upset pecking orders and contribute to power transitions that are related to risks of war, especially great power war. Whether the contribution of capitalism to power transitions—or its pacifying impact prevails—cannot be judged with much confidence.

Article

Globalization, or increased interconnectedness between world regions, is a dialectical and recursive phenomenon that consequently tends to deepen through time as one set of flows sets off other related or counterflows. This is evident in the history of the phenomenon in Africa, where transcontinental trade, and later investment, were initially small but have grown through different rounds including slavery, colonialism, neocolonialism, and the early 21st-century era of globalization. However, globalization on the continent, as in other places, is not unilinear and has generated a variety of “regional responses” in terms of the construction of organizations such as the African Union and other more popularly based associations. The phenomenon of globalization on the continent is deepening through the information technology “revolution,” which also creates new possibilities for regional forms of association.

Article

First-wave international political economy (IPE) was preoccupied with the “complex interdependencies” within a world system that (it believed) was rapidly devolving following the 1971 collapse of the Bretton Woods system of fixed exchange rates. The original IPE scholars were more dedicated to theorizing about the emergence and evolution of global systems than any strict methodology. As IPE developed, it began to emphasize the possibility that institutions could promote cooperation in an anarchic environment, so IPE scholarship increasingly studied the conditions under which these institutions might emerge. Second-wave IPE scholars began to focus on the domestic “level of analysis” for explanatory power, and in particular analyzed the role of domestic political institutions in promoting global economic cooperation (or conflict). They also employed a “second-image reversed” paradigm in which the international system was treated as an explanatory variable that influenced the domestic policymaking process. In opening up the “black box” of domestic politics, in particular as it pertained to foreign economic policy, the “American school” of IPE thoroughly explored the terrain with regression-based statistical models that assume observational independence. As a result, complex interdependencies in the global system were increasingly ignored. Over time the analytical focus progressively shifted to micro-level units—firms and individuals, whenever possible—using neoclassical economic theory as its logical underpinning (with complications for political factors). This third wave of IPE, “open economy politics,” has been criticized in the post-crisis period for its narrow focus, rigid methodology, and lack of systemic theory. Leading scholars have called modern IPE “boring,” “deplorable,” “myopic,” and “reductionist,” among other epithets. A “fourth-wave” of IPE must retain its strong commitment to empiricism while re-integrating systemic processes into its analysis. A new class of complex statistical models is capable of incorporating interdependencies as well as domestic- and individual-level processes into a common framework. This will allow scholars to model the global political economy as an interdependent system consisting of multiple strata.

Article

Rajendra K. Jain

India took a keen interest in the nascent European Economic Community (EEC) and was acutely concerned about the adverse implications of the British application for membership. New Delhi was one of the first developing countries to establish diplomatic relations with the EEC and the first non-associate member developing country to sign a commercial cooperation agreement. During the Cold War, relations with India were of marginal interest for Brussels, especially as South Asia was traditionally considered a British domain and a complex region beset with intractable problems. In the early 1990s, India sought an upgraded political dialogue with the EU as the West moved up in its foreign policy calculus as a market, source of technology, and foreign direct investment. Brussels no longer had to look at India through the prism of Cold War equations. India had in fact become more interesting because of its economic reforms and liberalization policies. Recognition of India’s growing stature and influence regionally and globally, growing economic interest in a rapidly and consistently growing economy, acquisition of nuclear weapons, steadily improving relations with the United States, and acceptance of India as a potential global player led the European Union to launch in 2005 a strategic partnership with India. India and the European Union have a multilayered institutional architecture with annual summits (since 2000), a Joint Commission, and over 30 sectoral dialogues encompassing political, security, economic, cultural dimensions, some of which still need to acquire a more operational character. Even in 2020 the India–EU relationship continues to be basically driven by trade and economic relations though it now encompasses diverse areas including climate change, energy, science and technology, migration and mobility. The European Union is India’s biggest trade partner and a major source of technology, foreign direct investments, and a major destination for Indian investment overseas. In the 2010s, the European Union and Member States are becoming active developmental partners in the realization of key flagship programs like Clean India, Smart Cities, renewable energy, skills and technology. Growing convergence at the fourteenth India–EU summit (October 2017) reflected convergence on important global issues like a rule-based international order as well as on the Iran nuclear deal, the Paris climate change treaty, Myanmar and the North Korean imbroglio. The India Strategy Paper 3.0—“Elements for an EU Strategy on India” (2018)—outlines an ambitious roadmap for the 2020s to more meaningfully engage India in building a multifaceted strategic partnership with India.

Article

One-quarter of the world’s states are African and can contribute to international relations theory and practice as the North enters a period of ambivalence and begins to retreat from positive global engagement. Each actor based in or concerned about the African continent, state and non-state alike, advances a foreign policy to reflect its interests, often in coalition with others. East-South relations and a non-Western world, as well as Brazil, Russia, China, India, and South Africa, are important in international development and emerging powers in Africa. The diversion away from international order and peace of the United States under President Donald Trump, the United Kingdom under Prime Minister Theresa May, and the European Union, the latter characterized by unanticipated immigration and endless Eurozone crises, can be positive for African agency and development if the continent can seize the unprecedented space to advance its own developmental states and regionalisms. Such possibilities of Africa’s enhanced prospects are situated in terms of a changing global political economy in which new economies, companies, and technologies are emerging along with contrary, nontraditional security threats. In response, novel forms of transnational “network” governance are being conceived and charted to advance sustainable developmental states and regionalisms through innovative foreign policy stances outside established, but increasingly dysfunctional and ossified, interstate institutions.

Article

Sebastian Harnisch

The Islamic Republic of Iran and the European Union (EU) have not yet established formal diplomatic relations, but since 1979 the Union and its member states have had various strong if often conflictual interactions. The relationship has been marked by distinct phases that reflect the emerging character of the partners, a theocratic republic on the one hand and a Union of interdependent democratic states on the other. While mutual economic interests have formed the basis for substantial interactions, relations with member states and the EU itself have been colored by a long and sometimes hurtful history of European states’ role in Iranian politics, including the Russian and British imperial influence over Persia in the late 19th and early 20th century, the British (and American) involvement in the coup against democratically elected Prime Minister Mohammad Mosaddeq in 1953, and the French hosting of Ayatollah Ruhollah Khomeini, an avowed critic of the Pahlavi dynasty, prior to the anti-authoritarian revolution in 1979. Over time, the relationship has substantially shaped the character and direction of the politics of the EU’s common foreign and security policy, resulting in more policy coherence between member states and the EU, more policy autonomy, particularly vis-á-vis the United States, and more proactive behavior, such as during the nuclear negotiations leading to the Joint Comprehensive Plan of Action (in 2015). By engaging with a problematic member of the nonproliferation treaty, the EU not only specified and thus strengthened the treaty, but it also grew into an international nonproliferation actor to reckon with.