classical ipe theories

8/13/2019 Classical IPE Theories

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Lecture 4

Classical IPE Theories

All theories here are descriptive and

prescriptive to various degrees.

Dr Jacqui Ala


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Economic Nationalism/Mercantilism

Origins establishment of modernsovereign state, 16th& 17thCenturies

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


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Economic Internationalism/

Economic Liberalism

Counter theory to mercantilism, emergingalso in 16th& 17thcenturies

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 andsocial well being


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Economic Structuralism

Critical Response to Liberalism

Includes Marxist Theory (Marx, Engels and Lenin)

Dependency Theory (Raoul Prebisch)

World Systems Theory (ImmanuelWallenstein)


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Marxism

Economics dictates politics (materialist)

Main actors classes

Nature of economic relations conflictualzero sum

Growth of capitalism positive

States not autonomous V I Lenin - Imperialism

Capitalism is expansive


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Neo Marxism Robert Cox

Coxs analytical framework

Social forces

Forms of stateWorld order


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Dependency Theory

Sees world in two spheres The core

manufactured goods Colonizers

The periphery primary goods Colonies NeocolonialismRelationship is inequitable and seeks to entrench the

status quo as the core states determine the rules ofthe game

They also have influence on the elite of the peripheryEconomic system needs to be changed to achieve

greater equality between players


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Immanuel Wallenstein

World Systems Theory

periphery

Semi periphery

core


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Contemporary debates

Does a liberal IPE need arehegemon?

Development and underdevelopmentin the Third World contendingmodels

Economic globalization: where arewe going?


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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 dispersionof wealth?

Is there a correlation between states GDP and HDI score? What are the possiblereasons for this?

Section B - Short Essay (3-4 pages) (50 marks)

Referring to the literature below, discuss the strengths and limitations of using thehuman development index to assess countries levels of development.

classical ipe theories

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