International Relations Theory A New Introduction Chapter 6 The International Political Economy Tradition

Introduction International Political Economy (IPE) tradition focuses on linkages between international politics and economics IPE ≠ Economics IPE ≠ study of politics IPE = attempt to bridge the ever wider gap between Economics and Political Science

Genealogy Intellectual roots: 16th and 17th century doctrines of mercantilism 18th and 19th classical political economists, such as Francois Quesnay, A.R.J. Turgot, Adam Smith, David Ricardo and Karl Marx During 20th century genealogy of IPE influenced by developments in the world economy & by technological change

Genealogy IPE development during the 20th century Period until mid-1940s  Marxist and traditional approaches After WWII until early 1970s  Marxism source of inspiration for scholars developing dependency theory & theory of regulation; in additional traditional political economy From early 1970 onwards S. Strange (1970) International Economics and International Relations: A Case of Mutual Neglect? Contemporary version of IPE cultivated in American scholarship

Currents of IPE Thought Realist IPE Mercantilism Emphasis on the conflict-ridden nature of the politics of international economics (Gilpin 2005) Liberal IPE Marxist IPE The Eclectic IPE Current

Kinds of Theory IPE = subset of IR & political science In US, IPE studies predominantly couched in a particular form of positivist & empiricist-conceived social science Marxist tradition & approaches derived from Marxism Explanatory, interpretive and normative theories have all been used

Main Variants of Theory Theory of Hegemonic Stability Classic Theories of Imperialism Dependence Theory World Systems Theory Economic Theories Embedded Liberalism

Main Intra-Tradition Debates On nature and desirability of theoretical enquiry Liberal theorists & economic realists emphasize role of different actors, highlight different causal processes F. Fukuyama – leading liberal theorist criticizing mercantilist strategies Issue of development triggered several critical encounters A. G. Frank criticism of modernization theory

Research Agenda At macro level: Politics of international economic relations among rich OECD countries Politics of north-south relations Politics of south-south relations At meso level: Political economy of war & conflict Politics of representation in international financial institutions  the IMF, World Bank. Political economy of climate change, energy supply & food (safety) At micro level: Single commodity/ service studies (e.g. coffee, wine, cars)

Conclusion Historically, intersections between international economics and politics of paramount importance  IPE tradition = indispensable theoretical tradition Shifting boundaries of purely national, interdependent & globalized modes of production and consumption constitute increasingly dynamic dimension of IPE As economists and political scientists continue to specialize, the continuous raison d’être of IPE becomes increasingly clear