KÜRESEL POLİTİK EKONOMİ - Deneme Sınavı - 3

There are 6 candidate countries waiting to join the Union. They are: Albania, Iceland, Macedonia, Montenegro, Serbia and Turkey.

Despite the impact of the Asian crisis in 1997, Taiwan has achieved slightly to be affected by this crisis with a controlled foreign capital inflow, low external debt ratio and high foreign exchange reserves and registered a 10% increase in foreign direct investments in 1999.

Polis means "independent city state" in Ancient Greek.

Oikonomike means "management of assets" in Ancient Greek.

The main characteristics of the International Political Economy can be listed as follows (Al, 2015: 147):
• IPE is a branch of science in which the economic system and the political system work together.
• IPE is not a branch of science that can only be studied theoretically.
• With globalization, the development process of IPE has accelerated.
• Due to the large number of terms it covers and uses, it covers a wide area that can be understood with different approaches.
• IPE has an autonomous structure.
• The emergence and development of IPE as a separate discipline has led to the establishment of international organizations.

Hegemon State: It is the state which has put pressure on other states in the international system and is the most superior.

The Great Depression, which emerged in America in 1929, quickly became an economic crisis surrounding the world.

“Complex Interdependence” has three main characteristics (Keohane & Nye, 1989: 50-51; Al, 2015: 151):
• There are many channels connecting societies (nations).
• There aremultipleissuesin theinterrelations of states, and there is no hierarchy in which one has superiority over the other.
• When it comes to complex interdependence, it is out of the question for a nation to use military force in a certain area or subject.

Proletariat: Marx used proletariat to define the working class that is working for a wage for the profit of the employer class with the means of production, which was used to define the subclass of society until the 19th century.

Feminism does not express the superiority of women in the face of men and argues that men and women are equal. Feminism says that the conditions, circumstances and opportunities for men should also be recognized to women, and that in such an environment, women will make a great contribution to both their state and the global system.

Economic Globalization: The process of economic globalization is a long-term historical trend of widening and deepening interconnectedness between the world’s peoples.

Economic Crisis: The decline in firms’ investments and consumer demand, high rates of unemployment and therefore the decline in living standards, and other similar situations.

Retrospectively speaking, state and market or economy and politics were, however, not so separated from each other for a very long time. In this sense, the historical evolution of IPE can be classified into three sub-periods, under which general approaches to the discipline shifted fundamentally: i. classical period; ii. the long negligence period; iii. the rise of IPE.

Besides this straightforward interpretation, physiocratic economic doctrine consists of the followings:
i. Societies were governed by natural law, which argues that human behaviour and human reasoning are governed by a set of rules inherent in human nature.
ii. The basis of the social order lay in the economic order;
iii. Agriculture was the supreme occupation not just because it was morally and politically superior to manufacture or commerce, but also it was much more productive than them;
iv. Thus, those who engaged in agriculture were productive class while those who engaged in non-agricultural activities were sterile classes.

Bullionism was the earliest phase of mercantilism, and it was derived from the experience of an acute shortage of gold and silver bullion in Europe in the fifteenth and the sixteenth centuries. Bullionist policies were designed to attract a flow of gold and silver into a country to service the rapidly expanding volume of trade and to keep them there by prohibiting their export. These restrictions lasted from the late Middle Ages into the sixteenth and seventeenth centuries.

The mercantilists in cooperation with monarchs had done several things to create a favourable balance of trade by applying:
i. Prioritized policies to increase export;
ii. Prioritized policies to decrease import;
iii. Created trade monopolies;
iv. Heavily relied on state coercive powers to expand and protect economic interests.

The Physiocrats were French social reformers and their immediate influence in French economic and political affairs lasted about two decades and ended when their most politically influential member, Anne Robert Jacques Turgot ( 1727- 1781), lost the office of comptroller general of finances in 1776 (Hunt & Lautzenheiser, 2011, 35). Francois Quesnay (1694-1774) was the most influential physiocrat. Physiocrats were generally acknowledged as having established the first systemic school of political economy even before Adam Smith (Charbit & Virmani, 2002). They were also the first groups of economists who proclaimed “laisser faire laisser passer”, which later became the central theme of the liberal school.

Physiocrats were the proponents of the new ideas of economic freedom in France. The term came from the ancient Greek word, “physiocracy,” meaning “rule by nature.” They also liked to call themselves the economists (Ebeling, 2016). During the time of physiocrats’ rein, France was trembled by the economic and social disorder, which eventually lead to French Revolution in the later phases. In such circumstances, physiocracy was a reaction to both industrial revolution and mercantilism. Physiocrats were striving for return to pre-industrial era (Beer, 2014, 13) and were interested in reforming France. Their reform program consisted of advancing several political reforms to remove all existing tariffs, taxes, subsidies, restrictions and regulations and to introduce a single nationwide tax on agriculture.

The origins of economic nationalism can be traced back to the work of Alexander Hamilton and Friedrich List. Alexander Hamilton (1755–1804) was the first secretary of the treasury of the United States. As such, he was a statesman rather than a theorist. However, his “Report on Manufactures,” which was submitted to the United States Congress in 1791, was an important classic economic nationalist text. In that report, Hamilton examined how to stimulate the US national economy. According to him, a national economy policy should aim at being independent (secure from external inference) rather than just accumulating material welfare. That is, the national economic goal ought to be to create a self-reliant economy rather than a wealthy economy. Hamilton saw active state intervention (or in a better word direct state involvement) as a must for the industrialization.