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

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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
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Therefore, economic national perspective is established across the actions of coherent states. Nevertheless, foreign affairs is perceived as a fight for power, as well as international political economy which is seen as combating for power and wealth.

“According to IPE specialists focusing on this approach (economic national perspective) description of the global economy suggest the concerns of the most powerful nations”. (O’Brien and Williams 2013 p. 10.)

Advantages and disadvantages with economic national perspective.

Advantages.

This approach protects the national interests, and it’s good for domestic producers. Therefore, when a state uses this approach, domestic producers will have a good market because there are no TNCs (transnational corporations) or foreign firms in the country.

Moreover, it has a zero-sum game; one states gain is another states loss. Thus, nations should focus on their own interests. This theory can be used by developing countries in order to reach economic growth. For instance, China has engaged to open economy and profiting from liberal system. Thus, at the same time China supported economic national perspective through challenging conditions on all foreign investments to accomplish development.

Thus, there were also some states used this approach to limit trade such as health, employment and safety in order to protect their citizens. Especially healthcare and educations are important and some states do
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