Lecture 4 Classical IPE Theories All theories here are descriptive and prescriptive to various degrees.

Dr Jacqui Ala

Economic Nationalism/Mercantilism

Origins establishment of modern sovereign state, 16th & 17th Centuries Alexander Hamilton; Friedrich List Economics subservient to politics Main actors states Nature of economic relations conflictual/zero sum game
Benign vs aggressive mercantilism

Economic goals state power Success of East Asia

Economic Internationalism/ Economic Liberalism

Counter theory to mercantilism, emerging also in 16th & 17th centuries Adam Smith (1723 1790) David Riccardo, comparative advantage Economics autonomous from politics Main actors individuals/companies Nature of economic relations cooperative/positive sum game Economic goal maximum individual and social well being

Economic Structuralism

Critical Response to Liberalism Includes

Marxist Theory (Marx, Engels and Lenin) Dependency Theory (Raoul Prebisch) World Systems Theory (Immanuel Wallenstein)

Marxism

Economics dictates politics (materialist) Main actors classes Nature of economic relations conflictual zero sum Growth of capitalism positive States not autonomous V I Lenin - Imperialism Capitalism is expansive

Neo Marxism Robert Cox

Coxs analytical framework

Social forces

Forms of state

World order

Dependency Theory

Sees world in two spheres

The core

The periphery

manufactured goods Colonizers

primary goods Colonies Neocolonialism Relationship is inequitable and seeks to entrench the status quo as the core states determine the rules of the game They also have influence on the elite of the periphery Economic system needs to be changed to achieve greater equality between players

Immanuel Wallenstein World Systems Theory

core Semi periphery

periphery

Contemporary debates

Does a liberal IPE need are hegemon? Development and underdevelopment in the Third World contending models Economic globalization: where are we going?

Class Assignment - Due Date 25 April @ 12:30 Task Colour code each country in the table according to their GDP Now colour in the country on the world map according to their above assigned GDP colour Also write their Human Development Index ranking on the map Questions Section A (50 marks) Explain what a gross domestic product is and what it is designed to measure? Explain what the human development index is and what it is designed to measure? How do these 2 instruments of economic measurement differ? Where are the countries with high GDPs in geographically located? Where are the countries with low GDPs in geographically located? Where are the countries with the highest HDIs located? Where are the countries with the lowest HDIs located? What observations can we make from looking at this map about the global dispersion of wealth? Is there a correlation between states GDP and HDI score? What are the possible reasons for this? Section B - Short Essay (3-4 pages) (50 marks) Referring to the literature below, discuss the strengths and limitations of using the human development index to assess countries levels of development.