New Global Trend Ppt1 5 All 1
New Global Trend Ppt1 5 All 1
New Global Trend Ppt1 5 All 1
what?
International
Society
1.3. Actors in IR
Actors are all the interacting entities that
participate in the international system.
International Relations (IR) traditionally focused on
interactions between states.
However, it has been broadened over the years to
include relationships between international
organizations, multinational corporations, societies
and citizens.
The major participants categorized into 2 :
a) State Actors:
b) Non-State Actors
a) State Actors
States interacting with one another on the global
stage.
Each state is considered to be sovereign (free) but
some are more powerful than others.
They are the primary actors in international
relations
The leaders of those nations,
Sub-state organizations (groups or organizations
within a nation e.g. Executive),
b) Non-State Actors:
They are non-sovereign entities that exercise significant
economic, political, or social influence at international level.
a) IGOs-AU& UN,
b) MNCs- a profit oriented organizations such as Coca-Cola,
Sony &, etc.
c) NGOs- religious institutions, charity organizations, political
activists, academic research communities, and terrorist
groups
E.g. International Red Cross Society, Doctors Without
Borders, etc.
d) TIG: Transnational Interest Groups:
Example: Amnesty International, Human Rights
Watch, Greenpeace, etc.
Levels of Analysis in International Relations
Levels of analysis are the main units to explain and
predict how international relations is affected by these
units.
There are four levels of analysis to explain and predict
international relations.
a) Individual level
b) Group level
c) State level and
d) System level
1) Individual Level Analysis
Individuals may be-leaders, activists, head of a corporation
The Moral principles of such individuals may translated into
norms of state
Democratic governments are preferred means for transferring
those moral principles of individuals into those of the
international system.
We can look at the individuals personal quality such as;
a) Behaviors: Great leaders-Mandela / crazy leaders-Hitler
b) Psychology and emotions: fears and visions
c) Motivations: capacity to make a difference and decisions
d) Experiences or backgrounds of individuals
Therefore, we can analyze how these personal perspectives
affect international relations/ international phenomenon.
2) Group Level Analysis
The Groups can be: interest groups, political
organizations, group of lobbyists, etc.
For instance, we can look at; the actions of groups of
individuals, such as:
a) all voters of a country and the way they express their
views in the general election,
b) political parties picking up on the issue in their
campaigns or
c) social movements ( e.g. Ethiopian Society in USA)
forming to counter the effects of the crisis on society
3) State Level Analysis
The power of state translates into the national
interest of that state.
The position of the state can analyze as:
How states interact with each other to deal with
their foreign policy?
How they cooperate in the framework of
international organizations?
The Nature of states relations with other states (
w/h can be Cooperative or competitors or
antagonists)
⚫ A state-level study require careful consideration of what kinds
of states we are looking at?
⚫ Hence, we may look at factors which may determine the foreign
policy and international relations of states, such as:
a) Geographical and strategic factors: such as size of the
state, geographical position of the state- landlocked or
access to the Sea
b) Demographic factors: size of population and ethnic
circumstances
c) Level or type of economy: economically advanced vs
poor; agrarian vs industrialized
d) Military capacity, size and quality :- strong military
capacity or weak)
e) Organizational factors: form/ nature of government
f) Historical ties and experiences
4) System Level Analysis
It implies the big picture/a global linkages that go beyond
single interactions between states.
The relations between states are necessarily anarchic as there
is no central power (Leviathan-world government) to maintain
order and stability.
The global system conceives as the structure within which
states
a) Cooperate
b) Compete and
1 Idealism(Liber
. alism)
2.Realism
3. Structuralism
4. Constructivism
1. Idealism/Liberalism
It was introduced by John Locke & Immanuel Kant.
They believed that:
a) human beings are innately good and believe peace and
harmony between nations is achievable and desirable.
b) States should have no reason for going to war against one
another.
c) Democracy and free trade would promote international
relations & collectivist aspirations among the world
states
Basic Assumptions
1) Progress/change- possibility for significant
change in the character of international relations
over time.
2) Non-uniformity of states- States have different
interests and they pursue their interests in
different ways- through cooperation or in another
way
3) Cooperation and interdependency- political
and economic cooperation leads to the creation
of interdependence
4) International institutions, morality and laws: all
these can shapes state behavior
States can bound by international agreements and
treaties
Accordingly, the League of Nations was created to
maintain international peace & to assist state to
settle their differences through arbitration.
International politics foster free trade enhance
global commerce creates interdependence
Thus, structures of law and cooperation create “global
governance”
However, when the League collapsed due to
the outbreak of the Second World War in
1939, it failed to retain a strong hold and a
new theory emerged to explain the continuing
presence of war.
Generally,Idealism difference in identity
Solution shared norms
2. Realism
Draw upon the assumption of T. Hobbes and N. Machiavelli
It explains international relations in terms of power.
Realists believed that:
a) Competition and conflict are inherent dimensions
of international relations.
Conflict is an inevitable and continual feature of inter-
national relations.
b) the major goal of a state is to advance its power &
National interest with little regard for morality or
friendship.
Morality has no place in international politics
c) International organizations are tools used by
powerful states.
Basic assumptions
1) Anarchy- power is decentralized and there are
no shared institutions with the right to
enforce common rules.
International laws are not effective
Conflict and war are inevitable.
There is no supreme power at international
level to enforce laws or punish aggressive
behavior
2) Statism- states are the sole actors in IR
3) Survival- states act to maintain or increase their power in order
to protect national interest and ensure survival.
Power is the only thing to ensure security- Security Dilemma
Nations should always be heavily armed and ready for war.
Friendships, religions, ideologies, cultures, and economic systems
matter little.
4) Self-help- since there is in no any central power in the system,
states must provide help for themselves.
States had to rely on their own resources
States must strategically use their resources to maximize their
power and advance interests.
Every state looks after themselves and no one looks after the
system as a whole.
5) Zero-Sum Game- ones’ gain is a lose for the others.
Generally, realism is power struggle among state
Realists believe that international organizations
appear to be successful when they are working in the
interests of powerful states.
Solution: balance of power
3. Structuralism/Marxism
It focuses on understanding how global structures, such as
economic systems and power hierarchies, shape the behavior
and interactions of states and other international actors.
It concentrated on the inequalities that exist within the
international system, inequalities of wealth between the rich
and poor.
4.Constructivist
It emphasizes that international politics are shaped by social
interactions and shared beliefs.
It suggests that the identities and interests of states are not fixed
but are constructed through social interactions and cultural norms.
It highlights the importance of values and shared interests
between individuals who interact on the global stage.
It explains that the essence of international relations exists in the
interactions between people.
Critical Theories
56
1) Diplomacy
Diplomacy is
a) A verbal discussion with the intent to influence or
negotiate on a given issue/ National Interest for a
mutual acceptable outcome (Aiken, 2005)
b) The art and practice of conducting negotiations
between representatives of states to resolve matters of
mutual concern ( Holsti, 1992)
It can take place at a bilateral level or multilateral
level.
States communicate, bargain, influence one
another, and adjust their differences through
diplomacy.
Diplomat: is a person appointed by a state to
conduct diplomacy with another state or
international organization.
Diplomats seek to secure the national interests of
their states
Functions of Diplomats
1. Bargaining and communication-negotiation
2. Protecting the rights of nationals who lived abroad
3. Providing advice and making overall policies
4. Symbolic representation of their country
5. Promoting friendly relationships between the origin
and host state
58
Qualities of Effective Diplomats
a) Realistic: It is important to have goals that much with your
ability to achieve them.
b) Carefulness about words : The experienced diplomats plans
out and weighs words carefully.
c) Seek common ground: finding common ground to ends
dispute successfully.
d) Flexibility: have to be situation analysist
e) Understanding the other side: have to a deep insight
f) Patient: bide your time.
g) Leave avenues/opportunities of retreat/withdrawal : it is
axiomatic that even a rat will fight if trapped in a corner.
The same is often true for countries.
In conclusion, Diplomats may use both carrot
and stick diplomatic tactics:
1) Carrot:
a) Promise
b) Rewards
2) Stick
a) Threats
b) Punishment
2) Propaganda
Propaganda is:
a) Ideas, facts or allegations spread
deliberately to promote ones interest or to
damage an opposing interest
b) a systematic attempt to affect the minds,
emotions and actions of a given group for a
specific public purpose.
Types of Propaganda
White • True Sources
• Uses Facts
propaganda • Truthful Messages
Gray • Non-identified
sources
Propaganda • Uncertain Sources
• Spread False
Black information as if
true
Propaganda • Deceptions
3) Economic Means
The rich and developed nations use economic related
matters as the means for securing their national
interests in international relations.
The gap between the rich and poor countries
provides a big opportunity for the rich nations to
manipulate the national interests of the poor states.
Some of these economic instruments are:
a) Tariffs
b) Quotas
c) Boycotts: imposes on incoming goods
d) Embargos: imposes on outgoing goods
e) Aid
a) Tariffs : are taxes charged for goods that leave
or enter a country for the purpose of:
raising revenue or
protecting domestic producers from foreign
competition
In order to get a product from another
country, you have to pay extra for it.
Think of
how many goods Ethiopia imports.
How do you think tariffs might affect the
economy?
How do you think this affects world trade?
b) Quota: is a restriction on imported goods in
terms of amount as per a given time period.
Putting a quota on a good creates a shortage,
which causes the price of the good to rise.
Consumers are less likely to buy this good
because it’s now more expensive than the good
produced in the home country.
Quotas encourage people to buy domestic
products, rather than foreign goods (boosts
country’s economy).
Fore Example: A country might limit the
amount of cars imported from other
countries to 500,000 per year.
What do you think happens when the
country reaches the import limit? Where
will the rest of the cars come from?
How do you think this quota impacts the
country’s economy?
c) Boycott (refuse): an act of withdraw from
commercial or social relations with (a country) as a
punishment or protest.
It is an absolute restriction against the purchase
and importation of certain goods/ services from
other country
It is eliminating the import of either a specific or
the total range of products against the state in
which the boycott is organized.
d) Embargo: is a refusal to sell to a specific
country
It is deprive another country of goods prohibits
its own business men from concluding its
transactions with commercial organization in the
country against which the embargo is organized.
An embargo may be enforced either on specific
category of goods, such as strategic materials, or
on the total range of goods that private
businessmen normally send to the country being
punished.
e) Foreign Aid: Loans and Currency
Manipulations
It is an act of transferring money, goods, or
technical advice from donor to recipient
It may include favorable tariff rates, currency
rates, granting or extending credits, providing
military support
4) Alliances and Treaties
Alliances and Treaties are mostly used for securing
identical and complementary interests states.
Alliances are either military or economic in nature.
⚫ Sch as: NATO, etc
5) Coercive Means: Military/Deterrence
It is the use of hard power.
Deterrence- building up military force as a threat
to warn another state not to pursue a particular
course of action
⚫ Example: Syrian and the use of chemical weapons
War can be used by states for fulfilling their
desired goals and objectives.
2.7. Ethiopian Foreign
policy and diplomacy
Introduction
The history of Ethiopia can be traced back to
more than 3000 years.
Throughout its long history, Ethiopia has been
connected to the outside world.
Accordingly, the character of Ethiopian foreign
relations ranges from:
a) Active engagement to closed door policy
and
b) Religious inclinations to secular foreign
relations
The FP behavior of Ethiopia were shaped by
a) External Factors and
b) Internal Factors
a) External Forces: Ethiopia had serious of defensive war
with Egypt, Somalia, Italy , Turkey.
As a result, most of its diplomatic and FP were
defensive ones and hence Ethiopia had established
relation with the Christian world to access weapon.
b) Internal Motives: internally, Ethiopia was seeking
technology and enhancing power and capability.
Emperor Tewodros (1855-1868)
Emperor Tewodros had strived to Put an end
Zemen mesafint/anarchic structure by controlling
one after the other through military might.
He had strived to United the northern principalities,
Gondar, Gojam, Tigre, Wollo+ Shewa and made
one Ethiopia
Tewodros introduced the idea of modernity and
modern army at the time.
Throughout his reign Tewodros tried to develop a
dynamic foreign policy that reached out beyond the
Horn Region.
Emperor Tewodros :
a) Had an expansive agenda/motive up until
Jersualem
b) Had a vision to establish strong country with
strong military, modern bureaucracy, and
advancement in technology
c) was conscious of the relevant of sea outlets
To this end, he sought the Western
Christian world to recognize his country
and help him to modernize his country.
Moreover, as Keller has put it “he appealed
to Britain, France, and Russia as Christian
nations to assist him in whatever ways
possible in his fight against the Turks,
Egyptians, and Islam”.
His desires behind to form such a relation
with these countries were:
a) To get recognition of Ethiopia as a
Christian nation i.e. as a friend on the
basis of Religion.
b) to get help him against the Turkish and
Egyptians attack
c) to produce local military weapons and
wanted to be Independent.
His strong desire was not to import
weapons but to produce locally
Basic Principles of Emperor Tewoderos’s
Foreign Policy
a) Sovereignty
b) Equal Recognition
c) Mutual Respect
d) Reciprocity (win-win relation) in Diplomacy
Emperor Tewodros had a strong believes for
equal recognition, mutual respect, and
reciprocity just like as the queen of England
or king of France
Despite his demand to be recognized as the
emperor of Ethiopia and treated with respect
and equal footing with the British Queen
that was not reciprocated by Queen Victoria.
In addition, the emperor’s demand for
modern technology and skilled manpower
from Britain was not concluded to his
satisfaction as the latter sent religious
missionaries.
Consequently, Tewodros took desperate
measures by taking hostage of several
British missionaries including the consul
which was responded with the British
Military Expedition (Keller).
He had imprisoned the English consul,
captain Cameron suspected him of
conspiring with the Turks and he later
detained Hormuzd Rassam, who came to
negotiate the release of the captives.
The British then sent a large military
expedition(32000) commanded by Robert
Napier
Kasa Mircha(the then Yohannes IV) of
Tigray helped the British out all the way to
Debre- tabore-capital of Tewodros.
The king retreated to Mequdella, in western
wollo as there was serious rebellion
surrounding the capital.
In effect, thus, Tewodros had lost the
battle with the British before a shot was
fired.
On 10 April, Twodros’s loyal followers (Gebrye)
tried unsuccessfully to check the advance of the
British at the Battle of Aroge, which was the
only battle fought b/n the two sides.
The following day , as the victorious British
troops stormed to capture him, the king
committed suicide (took his own life) in a
dramatic act of defiance.
In general his foreign policy principles really
made him as untimely innovative –world class
leader of 19th century.
Proactive in his foreign policy orientations
unlike his predecessors.
His ruthless in terms of treating citizens,
particularly the clergy was strong set back
Yohannes the IV (1872-1889)
Likewise Emperor Tewodros, Yohannes considered
Islam as a threat to the territorial integrity of the
polity.
In recognition to his service the British rewarded,
muskets, rifles and ammunitions.
He was able to secure military advisor-J.C.Kirkham
He had faced a very dangerous period as:
a) the European powers reinforced their presence in
Africa
b) Egypt tried to put a serious security threat in
its continued attempt to invade the country
However, Egypt faced subsequent defeat both in 1875 and
1876 at the Battle of Gundet and Gura respectively
(Keller).
In addition, the emperor fought defensive wars many
times in different front so as to reverse the Italy and
Sudan (Mahadist)expeditions.
Yohannes faced Mahadist invasion of Ethiopia where the
king sacrificed his life.
⚫ He had strong belief on diplomatic ways of
resolving problems.
⚫ He had strong reliance on foreign powers and
hence was not wise and calculative .e.g
Heweet Treaty- named after William Hewett,
signed on 3 June 1884.
⚫ In the treaty, British promised to:
a) allow free transit to Massawa port+
b) Massawa was to become British protectorate,
c) Bogus was to be restored ;
⚫ of Gojjam.
⚫ Domestically, he had encountered with
challenge of power struggle from
⚫ Menelik of Shewa and
⚫ TekleHaymanot of Gojam
⚫ As a personality and as a ruler, Yohannes highly differed
from Tewodros.
⚫ Unlike Tewodros II, Yohannes IV was very patient and
more diplomatic.
⚫ Yohannes IV gave priority to diplomacy than military
confrontation.
⚫ He was more patient and less impulsive than his
predecessor.
⚫ So, Yohannes had been deceived by false promise.
⚫ He was also cheated while he sent his envoy to Egypt
seeking peace settlement after defeating his enemy at
the battle field.
…..
⚫ For instance following Ethiopia’ s victory at Gura, the
statuesque was preserved:
⚫ Bogus was to remain in Egyptian hands
⚫ Though free trade and free passage to envoys and letter
via messawa was allowed, there was a limit on the vital
import of arms and ammunitions
…..
Internally
⚫ He was clever in terms of playing kings one another so
that they remain weak and loyal to him
⚫ He also give some autonomy for respective kings
⚫ Was harsh to Muslim as he was a monk.
Menilik II FPD
Before he won the throne, as king of shewa, he had built
his military and diplomatic activities exploiting the
existing powers around the horn ;
He had made informal alliances with Italians and others.
Internally, he moved to south and south west part of the
present Ethiopia under the claims of regained what he
calls-’my ancestors land’
…….
⚫ His subdued internal resistance lords through the use of
force and peaceful ways.
Just as he succeeded Yohannes , as king of Kings of
Ethiopia, Menlike had to deal with the Italy.
ITALY tried to deepen its relations with the king by way
of treaties, diplomatic activities and non diplomatic
ways such as Subversion and war to effect its
colonial ambitions .
Personalities such as Count Antonelli approach
Minilek court to fulfill his countries ambition
diplomatically
……
The Treaty of Wechale signed in may 1889
( The controversy over Article XVII)
The Italian version of such provisions bound the king to
make all his contacts through the agency of Italy, that by
default made Ethiopia under the Protectorate of Italy;
The Amharic version had made the use of the service of Italy
Supported by powers
Italy course of action seemed to have endorsed by other
powers- except Russia
Antonoli tried hard to pursued the king accepting the Italian
version of the treaty
……
⚫ Menelike announced his abrogation of the treaty in February
1893 dashed the last hope of the Italians to achieve their
objectives without resorting to arms.
Subversion
Italy tried to threat Menelike by taking subversion actions in
the country, using some personalities in Tigray and Eritrea
..but all in vain.
It was real threat as there had been territorial encroachments
from the North and an attempt to incite violence in Tigray
and got some to defect Menelik
………..
The military option: By the end of 1895, both diplomacy
and subversion had thus failed…
The Italians took that option in October by crossing the
Marab river and occupying Addigrat
In the following week Menilek mobilized a force ,
accompanied by his wife Tayytu, marched them to meet
them.
On the night of 29 February 1896, the Italian forces under
the command of General Oreste Baratieri decided to launch
attack…
by the mid day of march1, the War was over with the
glamorous victory of Ethiopia
…..
⚫ Italy and Ethiopia concluded the Addis Ababa Treaty in
1896 and according to the treaty:
⚫ The Wuchale Treaty was nullified.
⚫ Italy recognized Ethiopia as a sovereign state
unconditionally.
⚫ Ethiopia recognized Eritrea as Italian colony in the form
of the status quo
⚫ The war increased Ethiopia’s prestige. Ethiopia was
distinguished as a “symbol of black dignity and
Independence.’’ Many European countries after the battle
of Adwa established relations with Ethiopia.
……
⚫ What were the significance of Adwa Victory ?
1) Recognition of Ethiopian Independence:
a) Diplomatic representation at the court of the king
b) Delimitation of boundaries with colonial powers-mostly
dictated by the colonial powers.
2) Harbinger of freedom/liberation/ forces across the world-
Black movements
Pan africanism
3) it had also racial implications
…….
⚫ The Adwa victory symbolizes unity of the country
⚫ It increased the legitimacy and consolidation of his reign
⚫ Shouts of “Viva Minelike” were heard in the street of Rome
and other major Italian .
⚫ The Italian government sought clemency for the prisoners,
using French king ;
⚫ The Commander was put into bar and he was humiliated
…….
o New post Adwa –Addis Ababa treaty signed between the
two, on 26 October 1896. The main provisions were:
The abrogation of the treaty of wuchale;
Italian recognition of the absolute independence of
Ethiopia;
The question of delimitations of the boundary between
Ethiopia and the Italian colony of Eritrea was differed for the
future negotiation; and
Until then the situation before the outbreak of
hostilities(status-que ante) was accepted by both.
…….
calculating the balance sheet
o What were limitations and achievement?
o What were the changes and continuities?
o What made Adwa victory from that of victories at Gundet and
Gura?
…….
o the post Adwa peace treaty sanctioned Eritrea as Italian
colony;
o The country remained landlocked despite such decisive
victory;
o Just like his predecessor, the king failed to transform the
military victory into diplomatic victory
…..
⚫ Adwa and its implications for Sudan
For Sudan, Ethiopian independence had negative
consequence.
Adwa reopened the question of the Nile With Sudan under
Mahadist rule and Ethiopia independent, which Britain
assumed the Nile area was open to French, consequently
launch an expedition against Mahadist
in march.
Some two years letter, Omdurman, the Mahdist capital fell
and Sudan become an Anglo-Egyptian condominium-British
colony
……
⚫ The Fashoda Case: demonstrating Menelike genius of
diplomacy
It was on the question of the Nile and Sudan that the
Emperor Menilek’s diplomatic genius was most amply
demonstrated.
Soon after Adwa, the French began to execute their grandiose
plan of a trans-African empire by sending two major
expeditions from west and east Africa TO Control the
confluence of Blue Nile and white Nile.
……
English was also moving to control the same area.
In the treaty of friendship that he signed with the British in
May 1897, he agreed to impose an arms blockade on the
Mahdist state.
Minelike frequently exchanged letters with the Mahadists-
leader- the Khallifa Abdullahi, that both countries
should stand together against the colonial power.
……
Minelik had agreement with France to extend logisic
suport to the french contingent forces (one begun from
east africa and the second from west Africa)
In actual fact Menlike proved to be lukewarm in his
support.
He was playing an elaborate game of furthering his own
territorial interests in the west without antagonizing any
one of the three powers involved: Britain, France and
Mahdist sudan
……
On the other hand, taking advantage of the Mahdist
disarray, and with the possible connivance of the khalifa, he
extended his sway over the Asosa and Bela Shangul region.
Accompanying the de Bonchamps mission, Dejjach(th future
ras) Tesamma Nadaw of Gore established Ethiopian
authority in the Baro river region as far as Nasir, just short of
the confluence of the Sobat river(as the Baro river as
known in Sudan) with the white Nile.
……
Ultimately, 1898, the French and the British were left to sort
the question of the white Nile village of Fashoda (now
kodok), in what turned out to be one of the most tense
diplomatic confrontation.
The tension subsided when the French forces withdrew,
leaving the British to establish their ascendancy over the vital
waterway.
…….
What was British Policy over Nile Water use ?
…….
⚫ In 1902, London dispatched John Harrington to Addis Ababa
to negotiate border and Nile water issues with Emperor
Menelik.
Article III of the May 15, 1902, Anglo-Ethiopian Treaty, which
resulted from the visit, provides:
“His Majesty the Emperor Menelik II of Ethiopia,
engages himself towards the Government of His
Britannic Majesty not to construct or allow to be
constructed, any works across the Blue Nile, Lake Tana
or the Sabot, which would arrest the flow of their waters
into the Nile except in agreement with His Britannic
Majesty’s Government and the Government of the
Sudan.”
Li J Eyasu’s (1913-16)
⚫ Lij Eyasu , was grandson of Menilike( son of Ras Michael of
wollo, and Menilike’s daughter- Shawaaraga)
⚫ He was chosen to heir the throne in 1909…but Menilike did
not die till 1913.
⚫ Eyasu’s approach to brave-new
1) He considered himself as progressive than the old monarchs
2) He was more sympathetic to Muslim
…….
As result of these two factors , he lost the support of the
church, the conservative element of the system
Externally, he had frequent visit to Somalia and support the
Somalia patriotic forces. Consequently became the target of
the Allies(France, Italy, Britain) while first world war was
about to start. His External relation was embraced by
Germany, Ottoman Empire…(central powers)
Accordingly, both external and internal conservative forces
conspired against him while he was on visit-in modern
terms that was coup
……
⚫ By the time, following Minelike’s death, the surrounding
powers entered a tripartite agreement in 1906 to
ensure their colonial interest as Eyasu move was
considered as inimical to them. so, they were
reconsidering to control the country again.
ETHFP During Hailsilasse Era
I. Before Italian occupation
1.1. Internal motives/Goals
Earlier Autonomous provinces no longer retained their
autonomy. E.g. Jima Aba Jifar;
SECURITY PRODUCTION
FINANCE KNOWLEDGE
The Security Structure
Security from natural forces or human made threats is a
universal aspiration of human beings.
When one person or group provides for or contributes to
security, IPE security structure is created.
Thus, the establishment of well structure security,
contributes for the coordination of the state and the
market.
Fore example, sometimes China has been thought of as a
threat to US security interests, at other times it has been
seen as a part of a trilateral balance of power along with the
US and the Soviet Union.
This security question tempers to some degree relations
between the US and China in all areas.
The Production Structure
Production is the act of creating wealth and
wealth is nearly always linked to power.
The issue of who produces what and for whom lies
at the heart of international political economy.
Recent decades have seen dramatic changes in the
production structure with the production of cars
shifting from the US to Japan and now to other
countries including Korea, Mexico and China.
These production structural change affects the
distribution of wealth and power in the world
The Finance Structure
It is the pattern of money flows between and
among nations.
It defines who has access to money, how
and on what terms.
Money directly amounts to wealth and is
therefore central to IPE.
Canyou think of any transfers of money
between nations that actually take away
from the wealth of the recipient nation?
The Knowledge Structure
Knowledge can lead to the creation wealth for those
who can use it effectively.
Who has knowledge and how it is used is therefore an
important factor in IPE.
Nations with poor access to knowledge in the
form of industrial technology, scientific
discoveries, or medical procedures, are less likely
to be benefited from the international relation.
One reason why developing states desire to
establish a strong relation with the developed
states is that to have greater access to industrial
technology exchange.
Traditional Theories of IPE/GPE
Variety of theorists attempt to describe the
way how states should interact with or do
behave at the international market.
Among others the major one includes:
1) Mercantilism (Realism)
2) Capitalism (Liberalism)
3) Marxism (Structuralism)
1) Mercantilism: Analytical Perspectives on IPE
The most oldest one -Dominant approach until
1800s
The international system is like a jungle in
which each state has to do what it can to survive.
For this reason, the aim of every state must be to
maximize its wealth and independence
The most powerful states define the rules and
limits of the system: through hegemony, alliances,
and balances of power.
Basic Arguments of Mercantilism
1) Focus: states are the primary actor
2) Relationship between economics and politics: politics drives
economics
3) Nature of economic relations: conflictual (zero-sum game)
One country’s gain is another’s loss
4) Goal: Make Mother Country wealthy
5) Wealth cannot be created, only acquired through:
a) Establishment of colonies
b) conquest and theft (imperialism)
c) exporting more than importing
d) protecting domestic industries
6) Favorable Trade Balance for MC
a) Export raw materials & resources from
colony to Mother Country- MC
b) Export finished products from MC to
colony
2) Capitalism: Analytical Perspectives on IPE
Became popular in 1800s
Free trade and the free movement of capital will
ensure that investment flows to where it is most
profitable to invest
Free trade is crucial for it permits countries to benefit
from their comparative advantages.
Each country can exploit its own natural advantages,
resources and endowments and gain from
specialization.
Free market ensures an efficient and equitable
distribution of goods and services across the world
economy.
IR and Capitalism: Laissez-Faire figures
⚫ Adam Smith :
CAPITALISM/Laissez-faire
⚫ Wealth of Nations,
1776
⚫ “the individual,
pursuing his SELF-
INTEREST, will bring
on general benefits to
society”
⚫ NEED for free markets
(no government
intervention)
IR and Capitalism: Laissez-Faire figures
⚫ Thomas Malthus:
predicted that the
population would
outpace the world’s
food supply
⚫ People should limit
kids
⚫ No gov’t help for
the poor
IR and Capitalism: Laissez-Faire figures
⚫ David Ricardo: “iron
law of wages”
⚫ Limit kids b/c people
have more kids when
$ is strong;
⚫ increase in labor later
means a decrease in
$$ and….
⚫ Unemployment
increases
⚫ “No gov’t help for
IRON LAW OF the poor”
WAGES
Central Arguments of Capitalism
1) Focus: individuals & enterprises are the
primary actors on international market
2) Nature of economic relations:
harmonious-interests are reconcilable
3) Relationship between market and politics:
economics drives politics
4) Private Ownership: Market economy
a) Capitalists should be FREE to do what they wish to do
b) Buyers and sellers are free to exchange goods and services at
prices determined by…..”SUPPLY and DEMAND”
For this reason, capitalism is also called the “free-
enterprise” system
5) Profit Motive: self-interest and cooperation
When enough people want something, producers
produces more and more because they want a
PROFIT
“It is not from the benevolence of the butcher, the brewer,
or the baker that we expect our dinner, but from their
regard to their own interest. We address ourselves, not to
their humanity but to their self-love, and never talk to
them of our own necessities but of their advantages. “
(The Wealth of Nations”)
6) Harmony of interests (Adam Smith):
pursuit of self-interest will make everyone
better off
Example: Those who produce the highest
quality products at the lowest prices not only
make consumers’ lives easier/more enjoyable
but reap producers the highest profits
7) Comparative and absolute advantage
(Ricardo)
a) Comparative Advantage: Countries should
focus on producing those goods & services
they can produce most cheaply and trade
for the rest
b) Absolute Advantage: Any country that can
produce a given product more efficiently(
in terms of time, quality, quantity, price)
than any other country in the world and sell
for the rest
3) Marxism: Analytical Perspectives on IPE
Prominent perspective in the 20th century but has
declined since the fall of communism
The World system is stratified into proletariat vs.
Capitalist
The world economy is an arena of competition,
between the `oppressor and the oppressed’.
The oppressors or capitalists are those who own the
`means of production’ (trade and industry).
The oppressed are the working class.
The struggle between the two arises because capitalists
seek to increase their profits and this requires them to
exploit ever more harshly the working class.
Accumulation of capital in the hands of
capitalists
Owners of capital (capitalists) take almost
all of surplus products produced by workers
Power is rooted in ownership and control of
capital Impoverishment of workers
Struggle between classes for power – for
control of the economy and the state
In international relations this description of
`class relations’ within a capitalist system has
been applied to describe the relations
between:
a) the `core’ (industrialized countries) and
b) the `periphery’ (developing countries), and
the unequal exchange which occurs between
the two.
COMMUNISM: extreme
form of socialism in which
“all people” own the
means of production as the
state “withers away” and
produces a classless society
Basic Assumptions of Marxism/ Structuralism
1) Focus: social classes,& forces are
determinant actors in the production
and distribution of goods.
States are tools of these elites in
the capitalist system—not
independent entities
2) Nature of economic relations:
conflictual (zero-sum game)
3) Relationship between economics
and politics: economics drives politics
4) CLASS STRUGGLE:
Struggle for power and economic control
between the “haves” and the “have nots”
classes
In industrial times the “haves” are the
bourgeoisie/middle class capitalists; the
“have nots” are the wage earning laborers
5) Class wealth is power
The social class that holds the economy also
controls the government power for its own
advantage… (class wealth = class power)
Middle class shrinks: small businesses are ruined
by capitalist
Working class GROWS as masses of poor labor
at the mercy of a small, rich elite class
6) Communism is Supposed to Happen when
Poverty & desperation drive Masses of
workers/proletariat to:
seize control of the government and the
means of production
destroy the capitalist system
make a VIOLENT REVOLUTION
establish a “dictatorship of the proletariat”
7) After the “dictatorship of the
proletariat” occurs…..
All
property and the means of production
are owned by “the people”
All goods and services are “shared
equally”
A “classless society” emerges