The Pros And Cons Of Economic Neomercantilism

1460 Words6 Pages
In general, economic neomercantilism stresses the need for the use of military and political force in conflict situations or defending "hegemonic position" for the purpose of strengthening the economic position of the dominant powers. Neomercantilism has two main strains that are relevant to IPE. The first largely neglects economic matters, and the second is more attuned to economic-political interactions. The first strain was evident in the views of Niccolo Machiavelli (1420-1527) who considered that military power is more important than wealth in making war because “gold alone will not procure good soldiers, but good soldiers will always procure gold”. The other strain of realism is associated with a distinctive realist approach to IPE.…show more content…
The renewalists arguments that the U.S. is the unchallenging hegemon are more convincing in the military-security than the economic area. However, declinists note that the EU is a larger international trading entity than the U.S. and that euro can easily replace dollar. Leninism and IPE Leninism is the political theory for the democratic organization of a revolutionary vanguard party and the achievement of a dictatorship of the proletariat, as political prelude to the establishment of socialism. In his work “Imperialism, the Highest Stage of Capitalism” (1916), Lenin states that imperialism represents a unique stage of capitalism. Quantity has transformed into quality. To prove his thesis, he defines imperialism in five aspects: 1. Concentration of production has lead to monopolies; 2. The merging of bank capital and industrial capital to form finance capital used by the monopolies; 3. This finance capital being used to export capital, which gains prominence over the export of commodities; 4. The development of international capitalist associations that divide the world; 5. The territorial division of the world is completed. Feminism and…show more content…
In general, the constructivist view propounds that material interests are not sufficient to explain patterns of economic interactions or policies, and that economic and political identities are significant determinants of economic action. Constructivism focuses on the role of ideas, norms, and discourse in shaping outcomes. Constructivists reject the realist assertion that by simply observing the distribution of military forces and economic capabilities in the material world we can explain how states will interact. Constructivists suggest that conflict or cooperation between two or more actors is a product of those actors’ different values, beliefs, and interests. The four basic assumptions of constructivism applied to IPE are as follows: 1. Ideas, values, norms, and identities of individuals, groups, and states are socially constructed; 2. Ideas and values are social forces that are as important as military or economic factors; 3. Conflict or cooperation are products of values and beliefs; 4. Some international political changes are driven by changes in the values and beliefs of actors over time. Questions: 1. Is hegemony necessary and/or sufficient to produce an open, stable economic system? 2. From your point of view, what are the strengths and weaknesses of the neomercantilism approach to

    More about The Pros And Cons Of Economic Neomercantilism

      Open Document