KÜRESEL POLİTİK EKONOMİ

All of them are three sub periods of the historical evolution of IPE.

Adam Smith, who is often considered to be the father of the modern economy, was both a philosopher and an economist.

Classical Approaches in International Political Economy

• Physiocrats 
• Mercantilism 
• Economic Nationalism 
• Liberalism- Neo Liberalism 
• Marxism

Emerging approaches in International Political Economy

• Positive IPE
• Constructivist IPE
• Post-Structuralism
• Feminism
• Green Approaches in IPE

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).

François Quesnay (1694-1774) was the leading figure of the French physiocrats 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.

Thomas Mun, (1571-1641) was an English writer on economics and a merchant himself. He carried out trade around the Mediterranean. He was known for his theory of the balance of trade.

Friedrich List (1789–1846) was a German-U.S. economist who believed protection of domestic industries through tariffs on imported goods.

Adam Smith (1723–1790) was a Scottish philosopher, economist, educator, and journalist. As he was born and raised in Scotland, there he attended Glasgow and Oxford Universities (1737-1746) and became a professor at that university from 1751 to 1764. In 1759 he published one of his two major works, “The Theory of the Moral Sentiments, a treatise on social and moral philosophy.”

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.

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 with non-agricultural activities were sterile classes (Meek, 2013, 20). The latter class is defined as sterile because it does not contribute to the creation of agricultural wealth; it only transforms it into consumer goods other than food or capital goods. The proprietary class consists of the king, the tithe holders, and the other landed proprietors.

Liberals basically argue that there is no need for the state to bring together buyer and seller, set prices and quantities, or spur investment and production. The ‘invisible hand’ will find the most effective balance in the market instead of any central authority. That is, 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. Yet, there is room for the state in overseeing the proper functioning of markets, defending property rights, and for the provision of goods and services that markets couldn’t produce, such as national defence.