2 The Realist Perspective Time-tested School of ThoughtThucydides ( b.c.)the first IR/realist work The History of the Peloponnesian Waron wars between the Greek city-statesPopularity among world powers(influencing foreign policy decisions)US: a hegemonic power for much of the 20th centuryUSSR: military weakness invites aggresionPRC: China must have nuclear capability to deter aggression from the West & the USSR
3 The Realist Perspective Time-tested School of ThoughtPopularity among world powersWeakness of Realism in the subfield of IPERealist theory was based more on politics & history rather than on economics.Realist theory focuses too much attention on security matters rather than on economic issues.Two strains of realismMachiavelli realismExpanding military power is more important to the Prince than the acquisition of wealth.Military strength can bring wealth.
4 The Realist Perspective Two strains of realismMachiavelli realismThucydides/Mercantilist realismThucydides: the Greek city-state wars are attributable to economic changes, trade growth and rise of new commercial powers Wealth is an important source of military power. “War is a matter not so much of arms as of money, which makes arms of use.”Mercantilists: Wealth expansion should be the goal of the states that intend to enlarge their military capabilities.
5 The Realist Perspective Basic Tenets of RealismInternational systemAnarchy, lack of a centralized power exercising authority over statesSelf-help, each state taking care of own survival and well-beingNation-statesthe principal/unitary/rational actors of international systemObsessed with the challenge of national survival and securityObsessed with the need to enlarge national power to defend sovereignty and independence
6 The Realist Perspective Basic Tenets of RealismInternational systemNation-statesSocietal groupsNon-state actors operate within the rubrics of state politicsLimited influence over the actions of the states.International Economic Relations & Power PoliticsA state’s power position in the international system determines its foreign policyAggressive states may use the international economy to pursue imperialist expansion or extend their powerA hegemonic state with dominant power & influence is likely to defend the status quo of the system
7 The Realist Perspective Basic Tenets of RealismInternational Economic Relations & Power PoliticsOther argumentsPowerful states can structure economic relations at the international levelGlobalization is a myth; if globalization does exist, states remain the dominant actors and allow such a process to happen.Major powers can close or open world markets and they can use globalization to improve their power positions vis-à-vis smaller & weaker statesA hegemonic state has the ability to create an open and stable economic order that can further the globalization process.
8 The Realist Perspective Mercantilists & Economic NationalismWhen:Main arguments:state power based on size of national wealthAcquisition of wealth is a means of gaining powerPost-mercantilist economic nationalismWhen:Industrialization was a central requirement for countries seeking to gain national security, military power & economic self-sufficiency
9 The Realist Perspective Post-mercantilist economic nationalismMain arguments:National security and independence requires economic growth that gives priority to industrial development, economic self-sufficiency, state intervention and trade protectionismManufacturing was more essential for diversifying the US economy and decreasing its vulnerability to external forces.(Alexander Hamilton ( ) and his Report on the Subject of Manufactures)Imposition of trade barriers, promotion of national unity, and development of ‘human capital’ are key to a national rise in wealth and power. (Friedrich List, The National System of Political Economy)
10 The Realist Perspective The Rise of Realist IPEWhen: 1970s-1980sWhat triggered the realist IPE:Decline of Cold War, disarray in the global economy forced many realists to look beyond security issuesRealists could not remain silent to the liberal and Marxist economic analysis of IPE.Major changes in the post-war economic system such as the rise of the OPEC, relative decline of the US economic hegemony, increasing friction & competition between US & other DCs; and the onset of the debt crisis
11 The Realist Perspective Hegemonic Stability TheoryWhen: 1970s-1980sCentral arguments:A global hegemon contributes to economic openness and world stabilityInternational economic system (IES) is most likely to be open and stable when there is a single dominant or hegemonic stateA hegemonic power is one that:Has a sufficiently large share of resources that it is able to provide leadershipIs willing to pursue policies necessary to create and maintain a liberal economic orderWhose decline in power is likely to undercut economic openness
12 The Realist Perspective Hegemonic Stability TheoryWhen: 1970s-1980sCentral arguments:A global hegemonic power helps maintain an open and stable economic system by:Creating and maintaining liberal international regimesSets of implicit or explicit principles, norms, rules and decision-making proceduresProviding public goods and rewards and the use of coercion to encourage compliance and punish rule-breaking behaviors.
13 The Realist Perspective Hegemonic Stability Theory (HST)Critics of the HSTCan generalizations be drawn about hegemonic behavior based on the experiences of two global hegemons during limited historical perioods?What constitute a hegemonic power and how to measure its power?On what ground can HST claim that a hegemon contributes to economic openness and global stability?
14 The Realist Perspective Defining a hegemonic powerRobert Gilpin’s realist definition a hegemonic power is one that is capable of controlling or dominating the lesser states in the international system.Immanuel Wallerstein's definition a hegemon is one that possesses such a predominant power that enables it to impose its rules and wishes (or by using veto power) in the economic, political, military, diplomatic and even cultural arenas.Gramscian definition Hegemony is viewed as a complex web of ideas that social groups use to assert their legitimacy and authorityhegemony of ideas such as capitalism
15 The Realist Perspective Three Types of HegemonA benevolent hegemonThe hegemon is benovolent in both goals and means.It is more concerned about promoting generalized benefits than its self-interest.It uses rewards rather than threats to ensure compliance.A coercive hegemonis exploitativeexerts leadership out of self-interestis more inclined to use coercion to extract complianceA third hegemonPursues general as well as self interestMore inclined than the benevolent hegemon to use coercionMore inclined than the coercive hegemon to use rewards.
16 The Liberal Perspective Main Arguments Individual FreedomIndividuals have natural rights that cannot be infringed upon by groups or stateIndividual freedom is vital for the pursuit of political and economic interestIndividual endeavor benefits the society as a whole State or social groups should stay out of individual decision-makingInt’l Economic RelationsInt’l groups such as IMF and World Bank are politically neutralIf states conform to their rules, they will all grow
17 The Liberal Perspective Main ArgumentsInt’l Economic RelationsThe int’l economic system benefits all as long as states are willing to pursue rational liberal economic policies.The roadblock to development is low efficiency and lack of freedom, not distributional disparity between the North and South.Today’s LDCs have advantages the DCs did not have when the latter were taking offLDCs have access to capital and technology from DCsGlobalization contributes to growth of LDCs if they follow open and liberal policies.
18 The Liberal Perspective Main ArgumentsPolitics & EconomyPolitics and economics are two separate & autonomous realmsGovernment should not interfere with domestic & int’l economic transactionGovernment’s role should be limited toCreating a favorable business environmentProviding public goodsNational defense
19 The Liberal Perspective Adam Smith & Orthodox LiberalismAdam Smith ( )Advocated laissez-faire economicsOpposed mercantilist policiesAdvocated freely operating markets based on a division of laborFree market with division of labor maximizes efficiency & prosperityCalled for eliminating barriers of mercantilist states so that goods can be exchanged across national bordersFree trade is important because nations are interdependent on one another.
20 The Liberal Perspective John Maynard Keynes & Keynesian LiberalismJohn Maynard Keynes ( )Advocated state intervention at times of economic downturn spiralOpposed extreme levels of economic nationalismArgued that self-interest and public interest do not always converge as Adam Smith suggestedArgued that market did not tend inherently toward a socially beneficial equilibrium.Argued for government intervention to create demand at time of sluggish economyPlaced less emphasis on specialization and int’l tradeArgued that import restrictions may be necessary to bolster domestic employment
21 The Liberal Perspective Interdependence TheoryMain Arguments:Advances in transportation, communications & technology are negating distinction between internal & external policiesStates are losing some autonomy in managing their own affairs because of growing economic interdependenceCooperation among states is the best response to the new situationRichard Cooper: The Economics of Interdependence (1968)Interdependence can be asymmetricalA less dependent state has more power in the relationshipInterdependence can be complexRobert Keohane and Joseph Nye
22 The Liberal Perspective Interdependence TheoryMain AssumptionsStates are not unitary actorsStates are not the only important actors in IRMilitary means are not always useful for promoting national interestsIR includes both inter-state and domestic issues, intermesticThe Prisoners’ Dilemma & Int’l CooperationThe Prisoners’ DilemmaEach is motivated to defect rather than cooperateEach strives for sub-optiomal outcome rather than best collective outcomeCheating by states is prevalent and hinders cooperation.
23 The Liberal Perspective The Prisoners’ Dilemma & Int’l CooperationThe Prisoners’ DilemmaCheating by states is prevalent and hinders cooperation.A hegemon or international orgazations can solve the defection problem. How?A hegemon prevents cheating by rewards or coercionsInt’l organizations prevent cheating by enforcing rules, punishing cheaters, and making public state policiesA state in the global economy is less likely to cheat because of the inevitability of retaliation
24 The Historical Structuralist Perspective Basic Tenets of the PerspectiveThe concept of class and class dichotomyThe oppressing class v the oppressed classState=agent of the dominant classState reflecting and serving the interests of the dominant classState to be eliminated as a tool of class exploitation only through proletarian revolution by eliminating private ownership & class distinctionsInter-state economic tiesZero-sum gameConflictualBetween the advanced contries & LDCsAmong the advanced countries
25 The Historical Structuralist Perspective Dependency TheoryA theory to explain development of Latin American countriesMain ArgumentsOn the source of LDC underdevelopment External factors hinder development in the SouthOn domestic elites (compradores)Served as intermediatories between capitalist int’l order and the subjected local peopleAllied with the elites in the capitalist states to maintain the pattern of LDC dependencyOn potential of LDC developmentLittle potential because development of the capitalist economies in the core required the underdevelopment of the periphery
26 The Historical Structuralist Perspective Dependency TheoryA theory to explain development of Latin American countriesMain ArgumentsOn potential of LDC developmentLDCs cannot develop as long as they have links with the core.Dependent Development TheoryA theory to explain away development in East AsiaSome LDCs can develop when a particularly favorable alliance forms between foreign capital, domestic capital, and the LDC.The alliance allows some development in LDCs.Yet, LDCs and NICs are fundamentally dependentTheir development is conditioned by the needs in the core.Workers in NICs are low paid; NIC produce low end goods
27 The Historical Structuralist Perspective World System TheoryMain ArgumentsModern world system (the main unit of analysis)It is a world economic systemComponents of the world systemCore statesPeriphery statesSemi-periphery statesMobility of states is possibleCountries have moved from periphery up to coreUSA, JapanCountries have moved from periphery to semi-peripheryMainland China, Taiwan, Singapore, South Korea…Yet, upward mobility is rareThe unique role of semi-peripheryUnity of the periphery is undermined
28 The Historical Structuralist Perspective World System TheoryMain ArgumentsThe unique role of semi-peripheryUnity of the periphery is underminedSemi-peripheral states tend to think they are better off than the peripheral states rather than worse off than the core statesSemi-peripheral states are both exploiters and exploitedCore-dominated system is thus stabilizedThe core states dominate the systemThey set market rules for transnational transactionsThey use force to enforce the rules when peripheral states challenge the rulesThey impose unequal exchange relations on weaker statesThey appropriate surplus of the whole world economy