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

2665 Words 11 Pages
Critically discuss conditionality of IMF loans from the perspective of different IPE theories.

There are three IPE (international political economy) that includes, economic national perspective, liberal national perspective and critical perspective. These theories are used to analyze global political economy.

Economic national perspective.

Economic national perspective strains the importance of the states national interest and understanding actions in global perspective. This perspective is a state- centered theory, thus, it focus mainly on states own interest.

Further more, this theory dates back on to the rise and extension nation states in Europe in 15th century. Nevertheless, “mercantilist believed that there was a limited
…show more content…
Critically discuss conditionality of IMF loans from the perspective of different IPE theories.

There are three IPE (international political economy) that includes, economic national perspective, liberal national perspective and critical perspective. These theories are used to analyze global political economy.

Economic national perspective.

Economic national perspective strains the importance of the states national interest and understanding actions in global perspective. This perspective is a state- centered theory, thus, it focus mainly on states own interest.

Further more, this theory dates back on to the rise and extension nation states in Europe in 15th century. Nevertheless, “mercantilist believed that there was a limited amount of capital in the world and that every nation must focus on its own interest by restricting trade with other nations”.

Moreover, this called as “zero-sum game”. “One nations win is another nations loss”. Two well-known devotees of the mercantilist approach were Alexander Hamilton and Fredrick list. “List argued that Germany should industrialize through trade barriers, in order to reach the great economy in the United Kingdom”.

Nevertheless, there are also some developed countries that use this approach for a specific reason for instance; the United States used this theory on a specific division. Such as protecting it’s aerospace industry.
Thus, there are key actors in economic national perspective; the state is the main actor in
Open Document