KÜRESEL POLİTİK EKONOMİ

Classical Approaches in International Political Economy:

Post-Structuralism is an emerging (non-traditional) approach. The correct answer is D.

Physiocrats were generally acknowledged as having established the first systemic school of political economy even before Adam Smith. They were also the first groups of economists who proclaimed “laisser faire laisser passer”, which later became the central theme of the liberal school. The correct answer is A.

The Physiocrats were French social reformers and their immediate influence in French economic and political affairs lasted about two decades. Francois Quesnay (1694-1774) was the most influential physiocrat. He became interested in economics in his rather later years and he wrote his most influential piece of work, “Tableau économique” (1758). The correct answer is B.

Mercantilists were mere merchants, but not producers of anything. They were simply making profit out of buying goods here and there and selling somewhere else. Thus, the profits (the surplus or the source of capital accumulation) came from merchandise trade, not production itself. It is very important to note that this was one of the central tenets of mercantilism. The correct answer is C.

the mercantilists in cooperation with monarchs had done several things to create a favorable balance of trade by applying:

"The basis of the social order lay in the economic order," reflects the physiocratic economic doctrine. The correct answer is D.

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. His “Report on Manufactures,” which was submitted to the United States Congress in 1791, was an important classic economic nationalist text. The correct answer is E.

The correct answer is C.

Liberals basically argue that there is no need for state to bring together buyer and seller, set prices and quantities, or spur investment and production. Markets govern production, consumption, and exchange on its own in a best effective and efficient way. These are orders that, to Adam Smith, spring to life through the operation of an Invisible Hand; to F.A. Hayek, they are spontaneous orders; and to Paul Krugman, they are self-organising systems. The correct answer is D.

Adam Smith, the most influential one, David Hume, Jeremy Bentham and John Locke were all liberals. Antonio Gramsci is a Neo Marxist. The correct answer is E.

According to historical materialism (Cox), the social order consists of these three categories of historical structures, which are defined as the mutual interaction of three “forces”: material capabilities, ideas, and institutions. The correct answer is B.

Variant of IPE Theories

Classical Approaches in International Political Economy

Emerging approaches in International Political Economy

Physiocrats were generally acknowledged as having established the first systemic school of political economy even before Adam Smith. They were also the first groups of economists who proclaimed “laisser faire laisser passer”, which later became the central theme of the liberal school.

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.

In mercantilism, profit or the source of the capital accumulation came from merchandise trade. That is, buying cheap and selling expensive. So, the important question turned to be how to increase effectiveness in trade in order to increase profit. To this end, the mercantilists in cooperation with monarchs had done several things to create a favourable balance of trade by applying:

Thomas Mun (1571-1641) was the most influential mercantilist writer and his book “England’s Treasure by Foreign Trade” was one of the most significant mercantilist texts.

Friedrich List (1789–1846) was a German-U.S. economist who believed protection of domestic industries through tariffs on imported goods. He started out as a believer in free trade but in the 1820s visited the United States. Many Americans then disagreed with the British classical economists’ argument for free trade and he was influenced by the Alexander Hamilton’s argument that the government should help to build up domestic industry. As a devoted German, he believed also that that was the best way to industrialize Germany(Kishtainy 2017). List was writing during German unification and his approach to political economy reflected German political and economic realities of the time. In a similar way, Alexander Hamilton was writing during the American nation-building period and his thoughts were formed in that context.

Apart from that time to time return of economic nationalist outlooks, many emerging economies, especially Asian economies, have been an example of contemporary economic nationalist policies, which is generally known as “developmental states.” The concept of the developmental state is used to refer to the phenomenon of the rapid growth of several countries in East Asia in the late twentieth century. These so called ‘Asian Tigers’ relied on state-led macroeconomic planning and extensive regulation. Chalmers Johnson, who pioneered the term for the first time, defined the capitalist developmental state as a state that is focused on economic development and takes necessary policy measures to accomplish that objective.

Hegemonic Stability Theory (HST):The stability of the International System requires a single dominant state to articulate and enforce the rules of interaction among the most important members of the system. According to HST if there is such a hegemon, who is willing to bear the costs and enforce the rules while retaining political, economic and military edge for the hegemony, the international system would be stable (stability means the absence of war among major powers).

Neo-neo synthesis
One of the big questions in international relations is about how to achieve cooperation. One type of explanation for that is neo realist argument of hegemonic stability theory based on the distribution of power argument.
In a simple term, it argues countries cooperate in international politics since hegemon force them with sticks or influence them with carrots to do so. Second type of explanation is Keohane’s neo liberal argument which focuses on the role of international regimes and institutions in both organizing and maintaining cooperation among states by promoting cooperation and lowering the risks and threats of anarchic international system. The third type explanation is Moravcsik’s neoliberal account that looks at domestic policy making and preferences (societal inputs) as an important factor affecting international political and economic decision making. All of these discussion are generally discussed in the literature as neo-neo debate.

Robert Cox argued that “theory is always for someone and for some purpose.” According to him, there can be found two categories of theories in international relations: i) critical theories; ii) problem solving theories. Main differences between these two types is that while critical theories aim at changing the established order for good by showing other possible alternatives, the problem solving theories mainly tries to legitimate the established order by finding the solutions to problems.