Discussion on Conditionality of IMF Loans from the Persepctive of Differenct IPE Theories

This would be detrimental to smaller less industrialized states because it would allow the larger countries to flood their markets free of charge, making them even poorer in the process. The idea was called "open door". I thought this point of Wilson's plan was very selfish, as it only directly benefits the Allies, yet in Wilson's own speech he calls for an end to "selfish aggression." This is one of the many points of Wilson's plan that he is very hypocritical.

The first of these theories is Andre Gunder Frank’s Dependency Theory, which revolves around the idea of resources from poor, underdeveloped states (the periphery) going to the wealthy states (core), giving the wealthy states most of the benefits.

Nation states must also aim to provide public goods which cannot be provided or allocated fairly through the market mechanism. These include physical and human infrastructure such as roads, airports, harbours and education, laws and regulations. Those are the performance goals of the state. Other objectives include locally rooted technology, to maintain indigenous headquarters and to attract and retain business from TNCs. They will also aim to gain a fair level of taxes from TNCs whilst still keeping them in the country and developing a highly skilled, higly earninging and flexible labour force.

The international political economy can be defined as having three different ideologies, Liberalism, Mercantilism, and Marxism. I personally believe the economic liberalism ideology is superior to the others due to its success. In order to understand why economic liberalism is the most convincing ideology of the international political economy we must look not only at the core principles of said ideologies but towards the history of the international political economy and the flaws and shortcomings of them.

First, one of the restrictions to free trade is tariff. According to Menlo-Atherton High School (2015), a tax that is put on imported goods from abroad is known as tariff. Tariff is used to raise the price of imported goods so that the domestic producers can sell their similar goods at higher prices. Domestic government will be the one collecting the money that is received from tariff. Protective tariffs and revenue tariffs are the types of tariff. Protective tariffs are put on imported goods so that it will be more expensive. It is used to protect the domestic industries from the competition of foreign firms. Revenue tariffs are used to raise money for government (Menlo-Atherton High School, 2015). The benefit of tariffs are uneven due to tariff is a tax. Besides that government is benefited, domestic industries are benefit from it as well due to the reduction of competition from foreign productions. It is because of the increased prices of the imported products. However, it is unfortunate for the consumers because the higher price of goods is due to higher import price. Tariff tends to bring advantages for government and producers but not to the

Therefore, each state's basis of existence is always too small. Now here is the reason why states always turn to the outside world: the growth that the state promotes has a border in the reach of its own power. The state always promotes growth policies, but the country's borders then present a limited market, a limited availability of raw materials and resources, a limited potential labor force; The power that licenses capital, which creates the economic system in the first place, is itself a limit to its growth within its limited range. Under capitalist states, a relationship of mutual recognition comes into existence so that one state can use the other, because the other state calculates the same way, only vice versa. Two states pay their mutual respects and engage in civilized relations because what they want is totally

State is commonly referred to either the present condition of a system or entity, or to a governed entity, such as a nation or a province. The state itself consists of the society, government as well as the people living there. Before the Second World War, State is often seen as the main actor in international Relations as it can declare states of wars, control most of the economic influence within the region and larger states often dominant the role of international relations within the region or even in the globe. However, after the Second World War, the impacts on state influence as an actor has become less important than before, regarding to this point, there is

When trying to comprehend international politics, current events, or historical context, having a firm grasp on the various international relations theories is essential to understanding patterns when looking at interstate affairs. Realism, liberalism, constructivism, and marxist radical theory are used to provide a framework by which we can dissect international relations.

Global Political Economy is essentially a study of a political battle between the winners and losers of global economic exchange. In fact, understanding global economy relies on a clear knowledge of the process of political competition. Political power possessed by actors regulates economic activity and in turn this creates the basis for and affects political power. Through, critical analysis of the concept of global political economy it becomes clear that there are three prominent theories that form GPE, mercantilism, economic liberalism and Marxism.

In the chapter, the authors provide an overview of the key approaches to IPE. In the first part of the chapter, they provide an overview of the International Political Economy approaches by focusing on their assessments of the key actors, dynamics and prospects for conflict and coopering in IPE. In the second part, they outline the development of the field since the 1970s by considering the careers and works of the three prominent major IPE scholars Susan Strange, Robert Cox and Robert Keohane and the issue around which existing scholarship clusters. And, in the final part, they conclude with the approach of the book.

According to him, it will enlarge the market size, increase productivity and provide incentive for the private sector to invest. Nurkse was in favor of attaining balance growth in both the industrial and agricultural sectors of the economy. He recognized that the expansion and inter sectorial balance between agriculture and manufacturing is necessary, so that each of these sectors provides market for the product of the otherand in turn supplies the necessary raw materials for the development and growth of the other (Wikipedia). Nurkse’s theory also discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state; he also clarified the various determinants of the market size and put primary focus on productivity. According to him, if the productivity level rise in a less developed country, its market size will expand and thus it can eventually become a developed economy.

Learning about the events that lead to the modern global political system and global market defiantly strengthened my belief that the global trade has significant benefits, taught me that economic incentives and potential loss can prevent wars, and money runs the world when it comes to being politically dominant. In the medieval ages the kings were dominant and had power over little except the economy. “The economy was not thought of as a distinct sphere separated from politics but instead as a tool of statecraft which the state could manipulate to serve its own ends.” (Erik Ringmar). Times have changed and medieval kings do not rule all the land but the concept remains the same, countries use their economic standing as a way to make deals, prevent political issues, and push forward their political agenda. This is not always successful especially when it came to the Cold War because the US and the USSR were both economically built

The liberal perspective on political economy is embodied in the discipline of the Western economics (Gilpin, 1987). It emphasizes the individual interests, the freedom and the maximization of economic benefit. Economic

In addition, I had the opportunity of case studies. Which gave me a well-rounded perspective on particular cases in International Relations. For instance, at Turkish Foreign Policy class, we analyzed Cyprus Issue with all aspects, actors, approaches and events. By learning international security theories, I was able to realize that, every conflict and situation can be systematically and sophistically analyzed by IR theories. Without studying security theories, international disputes cannot be analyzed and understood properly. Throughout my studies as an undergraduate student, the importance of economic effects on International Relations became obvious to me. Current market liberal economic system and multi-national companies affect policy making processes of the states. Economic crisis affects nearly every country on the globe because of economic interdependence between countries. Thus, in order to understand and gain more sophisticated perspective about economic effects on IR, I attended classes as, International Economics, History of International Economic Relations and History of Economic

This paper was prepared for GD530 Economics and the International System, taught by Professor Snow