II. RELEVANCE OF HISTORICAL STRUCTURALISM A. ISSUE B. REASON C. INTRO TO ALTERNATIVE APPROACHES III. WORLD SYSTEM THEORY A. DEFINITION B. UNIT OF ANALYSIS C. CAPITALIST WORLD ECONOMY D. THE SEMIPERIPHERY E. CRITQUES IV. GRAMSCIAN ANALYSIS A. DEFINITION B. HEGEMONY V. COUNTERHEGEMONY C. HISTORIC BLOC AND TRANSNATIONAL HISTORIC BLOC D. CIVIL SOCIETY E. CRITIQUES V. BUSINESS CONFLICT MODEL A. DEFINITION B. THE HYBRID APPROACH and CRITIQUES c. Conclusion REFERRENCE: Global Political Economy, 3rd and 4th editions by T.H. Cohn
I. CRITIQUES OF DEPENDENCY 1. Inadequate definition of basic concepts -dependent or not dependent- it did not define the forms of dependency or the degree of dependency 2. Preoccupation with capitalism and failure to consider other forms - Where in fact, unequal power not capitalism makes smaller states be dependent - There is also dependency in Socialism with the Soviet bloc as the example - Role of the socialists states in the capitalist world had not been examined 3. Dependency theorists attach too much importance to the international system and too little domestic policies as source of LDCs development problems - LDCs are portrayed helpless vis--vis the world - DTs cannot explain why some LDCs respond differently to the similar external constraints/factors 4. Predictions regarding LDC prospects are often incorrect - China was called a model of agrarian self reliance but its policies changed to openness which made it undergo rapid economic growth 5. Prescription to change is rather ill defined and vague - it cannot explain how the socialist revolution can enable countries to escape dependency - do not describe how and when can a socialist revolution occur 6. Imperialism although contributes to exploitation and inequality, it also contributes to the development of capitalism in the LDCs - LDCs are exploited and feel the inequality making them strive to be capitalists inorder to get rich escaping their current position as LDC 7. Too nationalistic, less Marxist - The main problem according to Marxists is private control over the means of production and not foreign control or domination - What makes the core control the periphery is that they hold the means of production (relations of production) (versus the relations of exchange) II. RELEVANCE OF HISTORICAL STRUCTURALISM Whither the Historical Structuralist School of IPE? Where will the Historical Structuralist School end up? Is it still relevant up to the current date? A. ISSUE: Some says that the HSS died with the Soviet Union marking the victory of liberalism as LDCs are going for a liberal economy But Conway substantially provides that it is not the end of HSS. When the Soviet Union collapsed, it caused divisions among western countries as commercial conflicts are free to grow. (Cartels and monopolies and blocs are harder to resist) B. REASON: HSS is also relevant as long as there is inequality and exploitation in capitalism. LDCs are showing signs of disillusionment that they are swerving left due to worsening inequalities in society according to a 2005 UN report. It is there to provide alternative systems or approaches. C. Alternative Theoretical Approaches: a. World System Theory b. Gramscian Analysis c. Business Conflict Model
III. World Systems Theory A. DEFINITION: - what keeps the periphery a periphery is capitalism because it is exploitative. - It examines the history of capitalism in order to explain how exploitation began. - the main unit of analysis in WST is WORLD-SYSTEM. B. UNIT OF ANALYSIS: WORLD-SYSTEM - A unit with a single division of labor and multiple cultural systems. (I. Wallerstein) 2 Major Types a. World Empires- having common political system or a single political entity using coercive power to control the economic division of labor b. World Economies- having no common political system or multiple political entities with power hierarchy being determined through market mechanisms Current World economy- CAPITALIST WORLD ECONOMY C. CAPITALIST WORLD ECONOMY MAIN FEATURES: 1. GOAL TO REALIZE MAXIMUM PROFIT
2. ENFORCEMENT OF UNEQUAL RELATIONS BETWEEN THE CORE AND THE PERIPHERY (Note: Periphery states are subordinates to the core states.)
3. The ROLE OF THE STATE in the capitalist world economy is significant. The strength of the state is dependent on its economic standing or economic strength which is referred by place in the world economy Primarily, there are two categories which are the core and the periphery states. But to respond on the fact that some LDCs are industrializing, WSS made another category which is the SEMIPERIPHERY. D. SEMIPERIPHERY - More capital intensive than the others in the periphery - Having a degree of autonomy from the core - BUT, it is also a mode of control by the core to the periphery. In order to prevent a united socialist opposition or maybe a socialist revolution, the core divided the periphery in conflict among themselves. They think of themselves are better off than the lower sector rather than worse off than the upper sector. - Exploiter and the exploited E.CRITIQUES According to the: a. Classical Marxists- WST places more emphasis on the relations of exchange among core, periphery and semiperiphery states rather than on relations of production between capitalists and workers b. 3 schools of thought- WST places more emphasis on external rather on internal factors in explaining the conditions of the periphery c. Realists- WST undertheorized the role of the state
IV. Gramscian Analysis - Authored by Antonio Gramsci Marxism is too economistic discounting the importance of political, social and cultural factors. A. DEFINITION: - Capitalism does not only involve the economy but an interplay of the economy with politics, culture, ideology and the social factors. - To understand capitalism, he emphasizes that: o Domination is dependent partly on the economic factor like means of production o Also affected by the political, ideological and cultural aspect of the class struggle. - Politics, culture, and economics should be equally discussed in reorganizing the society into Socialism He more emphasized his point on defining hegemony B. HEGEMONY v. COUNTERHEGEMONY Hegemony is not hegemony if the ruling class rules with coercion alone because the use of force do not penetrate all aspects of the social life Hegemony must have social and moral leadership. There must be acceptance and consent. For instance, the bourgeois gives concessions in terms of benefits to the proletariat and in exchange for their acceptance of the continued leadership of the former. In the application to IR -Cox and Gill cited the US (economically rich and militarily powerful), having the SC, IMF, World Bank, GATT helped legitimized it being the hegemon. They control the world through these institutions. Counterhegemony is when dissatisfaction arises from the working class and uses the power of ideas and coercion in opposing capitalism to install socialism C. HISTORIC BLOC AND TRANSNATIONAL HISOTRIC BLOC HISTORIC BLOC- is simply the use of coercive power backed by the prevailing ideas in society and in the economy in the use of control/ in the application of hegemony That is why it is difficult to topple capitalism because it holds control over all aspect of life. Transnational Historic Bloc - Characterized by a mobility of capital - Effect: it keeps union in conflict therefore counterhegemony will be difficult - Mobility of capital will also affect policy making- policies are made to attract investment for the sake of economic development. Policies become dependent on the movement of capital - Even if its hard for counterhegemony to occur, dissatisfaction will eventually stimulate it - BUT it is dependent of CIVIL SOCIETY
D. CIVIL SOCIETY is: -the realm in which the existing social order is grounded- sustain capitalist hegemony - the realm in which a new social order can be founded- change to a socialist society E.Criticism 1. Preoccupation with examining the problems of capitalism and the hegemony of transnational capital that they do not explore the potential problems of dominance and subordination in other possible global systems such as socialism 2. Points problems with capitalism but not providing solution Strength 1. the definition of hegemony is wide range which includes entities granted international personality and its use to enforce hegemony 2. The concept of counterhegemony is used to examine protest against globalization. Will the groups opposing globalization unify sufficiently to form counterhegemony?
V. Business Conflict Model - Engages more than 1 perspective: Marxists and the Liberal Pluralists A. DEFINITION: - Business groups esp. large corporations are the most important societal groups that affect government policy making. - Businesses are not united but there are divisions through which they come into conflict - emphasizes class, the business class a major factor affecting foreign policy making - views business firms as being motivated by profit -
B. THE HYBRID APPROACH and Critiques
INSTRUMENTAL MARXISTS BUS. CONFLICT THEORISTS UNITED front of the capitalist to control the state Capitalists are divided with differences in interest. The state is autonomous of business control. The state is not autonomous, businesses control the state LIBERAL PLURALISTS BUS. CONFLICT THEORISTS INTEREST GROUPS PLAYS A ROLE IN POLICY MAKING MULTIPLE INTEREST GROUPS BUSINESS GROUPS
C. Conclusion Business conflict model poses a direct challenge to the assumption of instrumental Marxists that the state is controlled by the capitalist How? It is necessary to ask: WHICH CAPITALISTS? And whether the division among the capitalists weaken its position as an actor in the state.
Referrence: Global Political Economy, 3rd and 4th editions by T.H. Cohn NATIONALISTS INTERNATIONALISTS DOMESTIC TRADE FOREIGN TRADE SMALL LARGER PROTECTIONISM OPEN MARKET US CONGRESS US EXECUTIVE
LABOR INTENSIVE LESS LABOR INTENSIVE
MILITARY FORCE to control leftist insurgents and unions NOT SUPPORT