International Political Economy

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The financial crisis in 2008 which began in the USA and soon spread out the world highlighted the tensions between states and markets, the challenges of globalization, shifting global power, and the role of international institutions in the global economy (Baylis, Smith & Owens, 2011). The study of international political economy (IPE), which is about the interplay of economics and politics in world affairs, examining what drives and explains events in the world economy, helps to make sense the roles of these international relations in a global context (Ibid). In this paper, such IPE theories as Realism, Liberalism, Marxism, Social Constructivism and Postcolonialism will be investigated to clarify globalization and its impacts on global economy.…show more content…
All individuals are of equal and ultimate moral value. Equality of concern and respect are cashed-out in terms of a set of basic rights, civil liberties, and economic entitlements. The rights entail accompanying responsibility and duties (Kelly, 2005). Liberalism contends that the most effective system of economic exchange is one that is largely market-driven and not one that is subordinate to bureaucratic regulation and control, either domestically or internationally. Liberals see multinational corporations, transactional actors such as international organizations are central actors in some issues of world politics. In relation between states, liberals stress the possibilities for cooperation and they see national interests in more than just military term and highlight the importance of economic, environmental, and technological issues. Liberalists emphasize that constructing institutional infrastructure is necessary to support globalization and the process of globalization is a market-led extension of modernization (Political Science Notes, n.d.). Liberals are particularly interested in the revolution in technology and communications represented by globalization. This increased interconnectedness between societies which is economically and technologically led. Liberalism might be the explanation of the establishment and development of international institutions like WTO and…show more content…
Postcolonialism highlight the International relations of colonial actions in the Third World and it is concerned with developing the driving ideas of political practice morally committed to transforming the conditions of exploitation and poverty in which where large sections of the world’s population live out their daily life (Ibid). Postcolonial scholarship on globalization is similar to much Marxist though in that it highlights the important degree of continuity and persistence of colonial forms of power in the globalized world. Although the era of formal colonial imposition by force of arms is largely over, an important starting point for postcolonial scholarship is the issue of vast inequality on a global scale, the forms of globalizing power that make this systematic inequality possible, and the continued domination of subaltern peoples, those classes dominated under hegemony such as poor women in the global
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