International Political Economy in an Age of Globalisation
Chapter – 14
Table of Contents
Introduction
- International Political Economy (IPE) is the study of the interplay between economics and politics in world affairs.
- The core question of IPE is: What drives and explains events in the world-economy?
- IPE debates the notion of ‘states versus markets’, but this is misleading, as global markets are not like local street bazaars.
- World markets, countries, local firms, and multinational corporations are all shaped by layers of rules, norms, laws, organizations, and habits.
- These features of the system are referred to as institutions in political science.
- IPE seeks to explain the creation and perpetuation of these institutions and their impact on the world economy.
- Since the 1970s, IPE has advanced as a core subject of international relations.
- Globalization and its causes, along with its effects on states, international cooperation, and institutions, have become defining features of international relations.
- The end of the Cold War diminished Western geo-strategic influence and aspirations.
- The integration of former Eastern bloc countries into the world system focused primarily on economic transformation and integration.
- Tribal, religious, and ethnic conflict in regions such as former Yugoslavia, Rwanda, Indonesia, and the Middle Eastled analysts to examine links between poverty, economic stagnation, and national indebtedness with intra-state conflict.
- The end of the Cold War placed international institutions in the spotlight, with organizations like the United Nations (UN), International Monetary Fund (IMF), World Bank, and the World Trade Organization (WTO) becoming focal points of study.
- The study of international institutions and cooperation in economic affairs became a central concern for IPE scholars.