Fabián A. Borges
The last two decades witnessed an unprecedented decline in poverty across the developing world, a decline partly explained by the adoption of social cash transfer programs. Ironically, Latin America, traditionally the world’s most unequal region, has been a global trendsetter in this regard. Beginning in the late 1990s, governments across the region and across the ideological spectrum began adopting conditional cash transfer (CCT) programs, which award poor families regular stipends conditional on their children attending school and/or getting regular medical check-ups, and non-contributory pension (NCP) schemes for low-income and/or uncovered seniors.
There is robust evidence that CCT programs achieve their short-term goals of reducing poverty while increasing school attendance and usage of health services. However, they do not improve learning and appear to be failing at their long-term goal of breaking the intergenerational transmission of poverty. Likely as a result of low-quality education, long-term CCT beneficiaries do not have significantly better economic prospects than comparable non-beneficiaries. CCTs also have electoral effects—there is robust evidence from across the region that they increase support for incumbent presidential candidates.
CCTs were a response to the two big transformations the region underwent during the 1980s: the debt crisis and subsequent lost decade and the transition of most countries to democracy. Increased economic insecurity following the crisis and subsequent neoliberal reforms represented both a threat to the survival of newly elected governments and an opportunity for politicians to win over voters through increased social assistance. Pioneered by Mexico and Brazil in the mid-1990s, CCTs were by far the most effective policies to emerge from that context. They quickly diffused across the region, often with support from international financial institutions. Counterintuitively, adoption appears to be unrelated to the ascendance of left-wing governments in the region during the 2000s. The politics of CCT design are less understood. The myriad ways in which design can be conceptualized and measured, combined with the relative newness of this literature, have limited the accumulation of knowledge. It does appear that left-wing governments adopt more expansive CCTs and de-emphasize conditionality enforcement.
Whereas their initial adoption and expansion, which coincided with the 2000s economic boom, proved politically easy, further reductions in poverty will require politically difficult choices, namely, raising taxes and/or redirecting funds away from programs benefiting the better-off. Improving the long-term effectiveness of CCTs will require improving education quality, which in turn will require challenging the region’s powerful teachers’ unions.
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.
Most people in human history have lived under some kind of nondemocratic rule. Political scientists, on the other hand, have focused most efforts on democracies. The borders demarcating ideal types of democracies from nondemocracies are fuzzy, but beyond finding those borders is another, arguably greater, inferential challenge: understanding politics under authoritarianism. For instance, many prior studies ignored transitions between different authoritarian regimes and saw democratization as the prime threat to dictators. However, recent scholarship has shown this to be an error, as more dictators are replaced by other dictators than by democracy.
A burgeoning field of authoritarianism scholarship has made considerable headway in the endeavor to comprehend dictatorial politics over the past two decades. Rather than attempting to summarize this literature in its entirety, three areas of research are worth reviewing, related to change inside of the realm of authoritarian politics. The two more mature sets of research have made critical contributions, the first in isolating different kinds of authoritarian turnover and the second in separating the plethora of authoritarian regimes into more coherent categories using various typologies. How do we understand authoritarian turnover? Authoritarian regimes undergo distinct, dramatic, and observable changes at three separate levels—in leaders, regimes, and authoritarianism itself. Drawing distinctions between these changes improves our understanding of the ultimate fates of dictators and authoritarian regimes. How do we understand the diversity of authoritarian regimes? Scholarship has focused on providing competing accounts of authoritarian types, along with analyses of institutional setup of regimes as well as their organization of military forces. Authoritarian typologies, generally coding regimes by the identities of their leaders and elite allies, show common tendencies, and survival patterns tend to vary across types. The third research area, still developing, goes further into assessing changes inside authoritarian regimes by estimating the degree of personalized power across regimes, the causes and consequences of major policy changes—or reforms—and rhetorical or ideological shifts.
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.
Hanna Niczyporuk, Marko Klašnja, and Joshua A. Tucker
Corruption—the misuse of public office for private or political gain—has a detrimental effect on a variety of economic and political outcomes. Unfortunately, reducing corruption is a difficult task. Persistent differences exist across and even within countries, which unfortunately appear to be quite sticky, which scholars have referred to as the “corruption trap.” This trap can be understood as an equilibrium arising from the inability—and unwillingness—of key stakeholders to coordinate on actions that would reduce corruption. A rich literature has focused on coordination challenges among bureaucrats or between bureaucrats and private actors. We argue, however, for the importance of considering political factors in perpetuating these corruption traps. From this perspective, corruption traps can arise from coordination challenges and breakdowns among and between three key sets of political actors: incumbent politicians, the pool of possible political entrants, and voters. There are challenges faced by each set of actors, their interactions, and ways in which these challenges could potentially be overcome. Three particular processes may help or hinder the ability to break out of corruption traps: (1) collective action and coordination among voters, (2) strategic obstruction by incumbents, and (3) mechanisms of political selection and the availability of non-corrupt challengers.
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.
The 2008 Global Financial Crisis (GFC) and subsequent European Debt Crisis had wide-sweeping consequences for global economic and political stability. Yet while these twin crises have prompted soul searching within the economics profession, international political economy (IPE) has been relatively ineffective in accounting for variation in crisis exposure across the developed world. The GFC and European Debt Crisis present the opportunity to link IPE and comparative political economy (CPE) together in the study of international economic and financial turmoil. While the GFC was prompted by the inter-connectedness of global financial markets, its instigators were largely domestic in nature and were reflective of negative externalities that stemmed from unsustainable national policies, especially those related to financial regulation and household debt accumulation. Many in IPE take an “outward looking in” approach to the examination of international economic developments and domestic politics; analysis rests on how the former impacts the latter. The GFC and European Debt Crisis, however, demonstrate the importance of a (CPE-based) “inward looking out” approach, analyzing how unique policy and political features (and failures) of individual nation states can unleash economic and financial instability at the global level amidst deepened economic and financial integration. IPE not only needs to grant greater attention to variation in domestic politics and policies in a time of closely integrated financial markets, but also should acknowledge the impact of a wider array of actors beyond banks and financial institutions (specifically more domestically rooted actors like households) on cross-national variation in the consumption of foreign credit.
Robert J. Franzese
The basic economics of international trade imply that globalization will have driven in the developed democracies of the Western world an increasing divergence between the material advancement of human, physical, and financial capitalists—a minority of the population—and the material stagnation or even decline of labor—a majority. This article reviews that theory and the strong comparative-historical empirical record substantiating those effects, and explains how the rise of xenophobic, nationalistic, anti-elite populism has its complementary roots in these economic developments.
Jonas Pontusson and Lucio Baccaro
The comparative study of advanced capitalist political economies emerged as a distinct subfield of political science in the late 1970s. A number of early contributions to this subfield sought to explain cross-national variation of macroeconomic performance, but the subfield increasingly focused its attention on other issues—the consequences of welfare states, industrial relations, and skill formation for innovation, competition, and the distribution of income—in the 15–20 years prior to the global crisis of 2007–2009. The crisis and its aftermath has ushered in renewed interest in macroeconomic management among comparative political economists. As in the past, this theme is linked to that of interdependence among capitalist economies and the room for partisan differences in macroeconomic policy priorities. In addition, recent contributions to comparative political economy distinguish growth models in terms of the role played by different components of aggregate demand and explore the distributive implications of divergent growth trajectories in countries that have traditionally been conceived as belonging to one or another variety of capitalism.
With economic growth re-emerging as a central concern in the wake of the crisis, the New Keynesian tradition features prominently in recent efforts to put macroeconomics back into comparative political economy. However, comparative political economists also ought to engage with the Post-Keynesian tradition, which assigns a more important role to policy choices than the New Keynesian tradition. Positing that distributive conflict and power relations are critical to macroeconomic dynamics, the Post-Keynesian tradition provides useful analytical foundations for understanding the political foundations of divergent growth trajectories among advanced capitalist political economies.
Francisco J. Monaldi
Latin America has seen recurrent episodes of resource nationalism, particularly in oil and gas, characterized by increased state control over the industry and investment expropriation. These episodes tend to occur in cycles induced by structural forces, in particular high resource prices and the end of successful investment cycles, increasing production and reserves. State-owned enterprises tend to play a dominant role in the region, which is magnified during the resource nationalism episodes. During such episodes, governments increase taxes and renege on contracts with private investors. Ideology and institutions can limit or exacerbate the intensity of these events in each country, but the cycle is largely driven by the structural factors. The reverse occurs with resource price busts and when a new investment cycle is needed, countries liberalize the oil sector and the state retreats.
Between 2002 and 2012, the production boost produced by the liberalizations of the 1990s, combined with the oil price boom, led to a powerful wave of resource nationalism, including contract renegotiations and nationalizations, in Argentina, Bolivia, Ecuador, and Venezuela. Even in Brazil, the country with the most successful and stable oil policy in the region, state-control increased. In contrast, after 2014, a new liberalization period has been prompted throughout the region by the decline in commodity prices, the financial weakness of state-owned companies, and the need for a new private investment cycle. Understanding the dynamics behind resource nationalism in the region is crucial for designing institutional frameworks that limit the cycles and induce long term resource policies that foster the development of the abundant resource endowments in the region.
Christina J. Schneider
How does domestic politics affect international cooperation? Even though classic work on international relations already acknowledges the central role of domestic politics in international relations, the first generation of scholarly work on international cooperation focused almost exclusively on the international sources of cooperation. Theories that explicitly link domestic politics and international cooperation did not take a more prominent place in the scholarly work on international cooperation until the late 1980s.
Recent research analyzes how interests and institutions at the domestic level affect the cooperation of governments at the international level. The analysis is structured along a political economy model, which emphasizes the decision making calculus of office-motivated political leaders who find themselves under pressure by different societal groups interested in promoting or hindering international cooperation. These pressures are conveyed, constrained, and calibrated by domestic institutions, which provide an important context for policy making, and in particular for the choice to cooperate at the international level. This standard political economy model of domestic politics is embedded within models of international cooperation, which entail decisions by governments about (a) whether to cooperate (and to comply with international agreements), (b) how to distribute the gains and costs from cooperation, (c) and how to design cooperation as to maximize the likelihood that the public good will be provided.
Domestic politics is significant to explain all aspects of international cooperation. The likelihood that governments engage in international cooperation does not only depend on international factors, but is also and sometimes predominantly driven by the demands of societal groups and variations in institutional structures across countries. Domestic factors can explain how governments behave in distributive negotiations, whether they can achieve advantageous deals, and if negotiations succeed to produce an international collective action. They also contribute to our understanding about whether and how governments comply with international agreements, and consequently, how the design of international institutions affects government compliance. More recently, scholars have become interested in the democratic responsiveness of governments when they cooperate at the international level. Whereas research is still sparse, emerging evidence points to responsive conduct of governments particularly when international cooperation is politicized at the national level.
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.
Despite theoretical assumptions about the potential for financial liberalization in Latin America to foster economic growth, empirical developments revealed a different story. With financial liberalization came greater macroeconomic instability, exposing countries to financial crises even when domestic economic fundamentals were mostly in order. At the policy front, capital account liberalization posed crucial challenges to macroeconomic governance. Indeed, international political economy literature on financial globalization has highlighted that developing countries’ governments who chose to implement policies that contradicted financial markets’ expectations could be “disciplined” or “punished” by the threat of capital outflows. Yet, capital flows to emerging economies are not determined solely by domestic (push) factors. Even in the most extreme case of noncompliance with investors’ (creditors’) preferences—i.e., sovereign default—evidence shows that market re-access and the cost of new debt are a function of credit cycles rather than solely determined by investors’ decisions to “punish” defaulters. In addition, to the extent that the “market” can indeed be considered as a single analytical category, industry-specific incentives shape portfolio investors’ bets. Caveats also apply to how market reforms differed in nature and degree, even in Latin American countries subjected to similar external pressures. The same is true for policy responses to the 2008 financial crisis. These dynamics add necessary nuance to broad depictions of financial liberalization as a deterministic process unequivocally constraining domestic policy autonomy in predictable ways.
The topic of fiscal politics includes taxation and spending, budget balances and debt levels, and crises and the politics of austerity. The discussion often focuses on how some variable—such as the international environment, or political institutions—constrains “politics” in this realm. Almost omnipresent concerns about endogeneity run through this research. While this is a “big” policy area that deserves study, tracing causation is difficult.
R. Douglas Hecock
The open economic policies Latin American countries adopted in the wake of the debt crisis of the early 1980s were expected to bring a variety of benefits. Trade liberalization and privatization make domestic firms more competitive, and deregulation helps to create an efficient business climate. Notably, such policies are also likely to spur foreign investment seeking new opportunities, and Latin American countries did indeed begin to see large inflows in the 1990s. Foreign direct investment (FDI) is thought to be particularly complementary to economic development. Compared to portfolio investment in stocks and bonds, FDI consists of the construction or purchasing of physical assets including manufacturing facilities, retail outlets, hotels, and mines. FDI should spur local economic activity and bring with it jobs and technology transfers. Furthermore, because divestment takes planning and time, direct investment is relatively long-term, so investors are expected to display greater commitments to the economic and political futures of their hosts.
As a result of these substantial potential benefits, a body of scholarship has emerged to try to understand the political dynamics of FDI. Is investment more likely to flow to democratic or authoritarian regimes? Are direct investors seeking countries with few labor protections and weak environmental regulations or are they attracted to public investments in human capital? Do they eschew governments with poor human rights records or do they see abusers as potential partners in managing a compliant workforce? What are the effects of FDI flows on the political contexts of their hosts? Among others, these questions have received significant scholarly attention, and while we have learned a great deal about the behavior and effects of FDI, considerable potential remains. Having received massive inflows averaging more than $100 billion between 2000 and 2017 and consisting of countries with broadly similar development trajectories, Latin America offers a rich landscape for such analysis. In particular, finer-grained examinations of FDI to Latin American countries can help us understand how it might affect political systems and which types of investment best complement national development projects. In so doing, studies of FDI flows to Latin America are poised to make major contributions to the fields of international political economy, development studies, and comparative politics.
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.
Benjamin Helms and David Leblang
International migration is a multifaceted process with distinct stages and decision points. An initial decision to leave one’s country of birth may be made by the individual or the family unit, and this decision may reflect a desire to reconnect with friends and family who have already moved abroad, a need to diversify the family’s access to financial capital, a demand to increase wages, or a belief that conditions abroad will provide social and/or political benefits not available in the homeland. Once the individual has decided to move abroad, the next decision is the choice of destination. Standard explanations of destination choice have focused on the physical costs associated with moving—moving shorter distances is often less expensive than moving to a destination farther away; these explanations have recently been modified to include other social, political, familial, and cultural dimensions as part of the transaction cost associated with migrating. Arrival in a host country does not mean that an émigré’s relationship with their homeland is over. Migrant networks are an engine of global economic integration—expatriates help expand trade and investment flows, they transmit skills and knowledge back to their homelands, and they remit financial and human capital. Aware of the value of their external populations, home countries have developed a range of policies that enable them to “harness” their diasporas.
How Did American International Political Economy Become Reductionist? A Historiography of a Discipline
W. Kindred Winecoff
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.
Margaret E. Peters
Immigration has largely been neglected as part of the study of International Political Economy (IPE) until recently. Currently, IPE scholars have focused on two questions regarding immigration: what explains variation in public opinion on immigration and what explains variation in immigration policy.
The scholarship on public opinion on immigration has largely been divided into two camps, those who argue that economic factors drive opinion and those who argue that cultural factors are the driver. Those who study the role economic factors have played in shaping opinion on immigration often start with the Stolper-Samuelson theorem. The Stolper-Samuelson theorem shows that while immigration increases the overall size of the economy, it has different distributional effects. Immigration increases the size of the labor pool and, thus, should increase the returns to capital while decreasing wages. As such, those who derive most of their income from capital should favor immigration while those who derive most of their income from wages should oppose immigration. Additionally, the Stolper-Samuelson model shows that openness to trade should have the same effects as open immigration; thus, people should oppose or favor both trade and immigration. Early scholarship examined these predictions and found that opposition to immigration was much higher than opposition to trade and that those who derive much of their income from capital also oppose immigration at high rates. In response, one set of scholars focused on the additional costs that immigration, but not trade, brings. Immigrants, unlike goods, may place a burden on the social welfare system and thus, opposition to immigration especially by the wealthy may be driven by these costs. Other scholars noted that immigrants work in many industries that are unaffected by trade—most notably the service sector—and this may explain opposition to immigration. Finally, a third group has argued that opposition to immigration is largely driven by cultural concerns and xenophobia. Currently, this debate continues with both sides examining more nuanced survey data.
Scholarship on immigration policy has similar divides. Immigration policy has become more restrictive since the late 19th and early 20th centuries, when most countries had very few restrictions on immigration. To explain these restrictions, one school of scholars has argued that labor unions oppose immigration, as it hurts the wages of their members. As unions gain strength, immigration should become more restricted. Others focus on the rise of the welfare state, arguing that immigration has been restricted to keep costs low. A third group has argued that greater political rights in the early and mid-20th century for the generally xenophobic working class has led to the restrictions. Finally, new scholarship argues that increased globalization—in the form of increased trade and increased foreign direct investment—has sapped business support for immigration, which has allowed anti-immigrant groups to have more say. Using a wealth of newly collected data, scholars are testing these different theories.
International agricultural production has been transformed by the consolidation of the agribusiness model. Multinational chemical and trading companies leveraged their scientific and technological superiority over the producers to advance sales of agrochemical and biotechnological products at the same time that they integrated with traders and processors. By advancing financial scale advantages, international corporate actors established powerful buying positions, determined infrastructural developments, and established a globalized pattern of agricultural economic activity. This has been reinforced by converging demand trends of growing global population, a dietary transition in the emerging world that includes more animal products, a diversifying energy matrix that increasingly includes biofuels and the use of agricultural products as a financial asset class. The international political economy (IPE) of the soybean agribusiness model was articulated with the specific national political economies of Brazil, Argentina, and Paraguay. Differential institutional structures and different political economy coalitions and conditions processed these external conditions in different ways: coordination (Brazil), confrontation (Argentina), and colonization (Paraguay).