Ttreault and Abel (1998: p. 3) identify two important realities in modern international political economy namely material and ideological realities. These realities are both absolutely real and occupy the same space at the same time and none of them is destined to predominate the other…
(Ttreault and Abel, 1998: p. 3).
With reference to the material reality individual actors are expected to be pursuing their self-interest through bargaining and the interplay of the market. (Ttreault and Abel, 1998: p. 3). Similarly considering the ideological reality one would expect to see a multi-faceted order and its potential for improving overall production and wealth skewed in various ways to provide different sorts of short-term advantages for those who can manipulate the system to conform to specific goals. (Ttreault and Abel, 1998: p. 3). For instance the flow of resources, the availability of money as well as the cost of doing business can be manipulated, even by weak countries if they seize the right moment. While the material reality may be evolving toward a complex interactive system, such an outcome serves to justify and describe one way or another to rig the system to a particular advantage rather than to structure a mutually beneficial international economic order likely to raise overall global wealth but unlikely to generate individual distinction or preeminence for particular countries. (Ttreault and Abel, 1998: p. 3).
Dependency theory refer to a set of theories, which maintained that third world countries fail to attain adequate and sustainable levels of development as a result of their dependence on the advanced capitalist economies. (Scott and Marshall, 2005). Built upon Lenin's theories of imperialism, the theory focused upon the economic penetration of the third world particularly Latin America by the large capitalist economies. (Lievesley, 2003). Dependency theory was developed in 1960 and called into question the structural developmentalism associated with Raul Presbish as well as the United Nations Economic Commission for Latin America (ECLA), which emerged in 1948 in Santiago, Chile. (Lievesley, 2003).
According to the ECLA, the world was regarded as divided into center (the developed, industrialized North) and the periphery (the underdeveloped agricultural South) and the relationship between them was determined by the structure of the world economy. (Lievesley, 2003). The economy of Latin America concentrated on the production of primary inputs for export to the developed industrialized North. Presbish later discovered that instead of a mutually advantageous relationship between North and South, there was an unequal exchange with Latin American economies facing a long-term secular decline in their terms of trade thereby resulting in a chronic balance of payment deficits with the periphery having to export more and more in order to maintain the same levels of manufactured imports. (Lievesley, 2003). The figure in the following page represents the relationship between the developed industrialized North and the underdeveloped agricultural south.
Source: Lecture Notes.
Frank, a German Economist of development was the major contributor to dependency theory who in his book Capitalism and Underdevelopment in Latin America (1967), concentrated upon the external mechanisms of control exerted by the centre (or metropole) upon the periphery (or satellite). (Lievesley, 2003; Scott and Marshal, 2005). The centre maintained the periphery in a state of underdevelopment for ...
Cite this document
(“International Political Economy Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
Retrieved from https://studentshare.net/politics/289604-international-political-economy
(International Political Economy Essay Example | Topics and Well Written Essays - 3500 Words)
“International Political Economy Essay Example | Topics and Well Written Essays - 3500 Words”, n.d. https://studentshare.net/politics/289604-international-political-economy.
Tanzania is a socially diverse country with nearly125 ethnic groups (Buchert, 1994). Tanzania is as a result of a union between mainland (Tanganyika) and the islands of Zanzibar, Pemba and a number of other smaller islands which was formed in 1964 (Tripp, 1997).
This is done to explain which of these three views is most applicable in the functioning, design and operations of IMF, the Internal Monetary Fund. The study of the organizations;’ composition of Executive Board, working of voting powers, selection of Managing Director is explained in the context of the above theories.
According to Yunus, the main aim of social business is to satisfy the general needs and desires of individuals even as organizations strive to make profit through their business ventures and endeavours (Yunus 2011, p. 92). The phenomenon of social business is taking a hold of the entire corporate world as it gradually takes a position among some of the famous strategies that corporations incorporate in their operations.
The transition from authoritarianism to a liberal, democratic and free market system of governance can have a variety of important ramifications in the social, political and economic spheres. Bureaucratic
The imperceptible school of thought in international politics economy has become divided. This division is mainly between the rationalists and critical scholars. However, recent developments point towards a scope in rebuilding it and the dramatic
The article is entitled “What kind of capitalism?” (www.economist.com, 2013 and concluded on the argument that the “huge benefits that a freer flow of people, trade and capital has brought over the decades, even if such
Various scholars disagree with the abovementioned definitions because in their view capitalist economies have properties such as air space, military equipments, and large tracts of land, educational institutions,
Maswood (2000) stated that the main purpose of the feminist theory of IPE is to understand the effects of gender on international politics and then elaborate the feminist understanding of the international processes. The Feminist
The relationship between politics and economics are interrelated in that they affect each other by either controlling the policies or practices. This is essay will dwell on the three main challenges facing the International Political Economy the roots, causes and possible remedies that could solve these issues .
According to the paper globalization is a very important aspect in the global economy. Globalization is defined as the process that results in individual economies that are all around the world to become intertwined whereby other world economies are affected by one occurrence in a specific country.
4 Pages(1000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic International Political Economy for FREE!