INTERNATIONAL POLITICAL ECONOMY
After cold war II, states allied in war against Axis power held meeting in Bretton Woods in order to create the same agreements of how international economy and commerce was going to be directed. Two most prominent countries/states which had significant roles in the meeting were United States and Britain. United states urged/ promoted monetary stability, free trade and open markets. While Britain suggested about the role of the state in managin inflation, unemployment, and growth. The following rules established at Bretton Woods were achievement would govern international monetary as well as governing economic interactions. The contents of Bretton Woods mainly about how to create global economic system resed on agreements in between 44 states/ nations who allied in world war II. The meeting in Bretton Woods was dominated by two different point of views, first Keynes and … . However, Bretton Woods had come to fail by the occurrence of fixed exchange rate. Thus, cause to exist Liberal International Economic Order as one example of openness to non discrimination in many economic activities.
The concept of liberalism and mercantilism is attacking each other, this somehow makes one is less than another. For instance, in the Clinton Office, liberalism had been ruled by the supreme mercantilism. Due to this situation and US economic domination being stressed, soon United States proposed new deal of international economic system, and there General Agreement on Tariffs and Trade (GATT) created.
Bretton Woods meeting was remarked the birth of international monetary fund (IMF) and world back (World Trade Organization) and fixed exchange system using gold.
In my opinion, Economic processes and relations don’t exist in a vacuum. The simplified models of economies often asssume political forces away. Thus arriving at what they would conseder to be the optimal models of managing the lfows of goods and services both nationally and internationally in anything but a real world setting. There are many examples of how politics influence economic processes and policy. For instance, economists have found that inflation tends to rise toward the end of US presidential terms.
Bretton Woods was aimed to foster economc growth and internatioal economic after the Second World War. But 1970s, Bretton Woods had failed to meet such expectations because of some certain factors and some incidents. First, United States as one of the preeminent economy sole leadership was engaged in Vietnam-Communism land. Second, the oil crisis occurred in 1973. Third, the third world calls for new international economic order to United Nations so that could bring Third World Nations to advance development. Above events, are merely examples that had put Bretton Woods to crisis and hence, was higly urged to be replaced by new economic deal/ system.
Above, Bretton Woods was little example that governments took interest in creating economic interactions. Governments refer to the political interest that is relevant to shaping interantional economic growth. This relevance that has become the case study of IR in which this relevance furthermore is called international political economy. in order to understand how IPE play sits role in IR, we will have to differentiate point of perspectices, namely economic theories comprised of economic mercantilism, economic liberalism, and marxism (additionally).
1. MERCANTILISM
Mercantilism has been known in the previous (first year) of colonialism age and imperlisms or old capitalism age in time we are already familiar with. Mercantilism suggests the paradigm that the states welfare and prosperity was defined by how states and could possess gol in particularly in the age of old capitalism and later than states welfare. But recen years (nowadays), the term of mercantilism has slightly drifted in which mercantilism is used to describe the role of political government in governing international economic system and its growth. The adherent of mercantilisms believes that states are the principla actors in economic system.
1. ECONOMIC LIBERALISM
Liberalism has been identified with the presence of individual liberty with the absence of government intervention. As Adam Smith stated, that the growth of economic and problems within it would be solved by the act of invisible hadn. Means that economic had to be fully independent from any interset including policitcal government interests. Because they (Adam Smith, David Ricardo, and Benjamin Franklin) believed that market works best when free of government interference. In other owrds, economic field is a peaceful settlements in which nations establish cooperation based on mutual benefits of trade.
1. ECONOMIC MARXISM
The economic marxism is known as materialism in which econoic system is setu upon between machinery against artisan handicraft or burgeoisie and the proletariat. The marxism theory is also identified by the presence of exploitation and inequality between social classes. As long as the assymetry in social classes between them exist, the lover class which is proletariat will always be dominated and thus economic system is inclined to be dominated as well.
PERSONAL OPINIONS
The history of international political economy starte dwhen the first economic system established in Bretton Woods, thus called the Bretton Woods System. Following the formulation of Bretton Woods, there are three economic systems embraced by different countries. There are liberalism, mercantilism and marxism, it doesn’t matter which of them is the best. What the most importaint is statesintervention is still needed to exercise rules and regulation in order to assist their own (regional) economic system. I would say there should balaces in between economicliberty and government intervention in order to minimalize gains in borgeoise and lost in proletariat class.
Giving the fact that political leaders are entrusted with the guiding material fates of their societies, the execution of macroeconomic and foreign policy in nations today is susceptible to the ebbs and flows of political discretion. And therefore, economic has been politically important.
US HEGEMONIC STABILITY
The hegemonic role was played by Britain on the period of before 20th century but then after the second world war had setu United States to be one of the preeminent economic leader with its $7trilion. This fact demostrates that the exposure of America’s participation in economic system has become essential and therefore, indirectly or directly has placed United States to its hegemonic hierarchy.
In the way using its hegemonic over economic growth, United States had fully realized the importance to set up international trade organization (Ito) which would aim to explore the best ways to lower commerce rules on international trading system. Due to its liberal economic system, United States attempted to liberalize the trading system and thus referred to the conception of open market system. However, United States faced or was challenged with the other economic rival countires such as Japan and Europe (germany).
Thus above occurrence (rivals) brought about United States economic hegemony forced down. United States open market system had to cope with protectionism and infavorable market system. Reaching in effective ways, Untied States recommended the new multilateral trade negotiations as well as the unilateral and regional trade organizations.
Personal Opinions:
From articles, United states attempted to impose its liberalism through different international economic organization for instances are Bretton Woods, GATT, IMF, WTO and otehrs. This action suggests andpromotes its hegemony. But somehow its hegemon was under attacked by other economic revalries such as Japan and germnay. Other reason US hegemonic had been stressed was its responsibility to direc and give shapes to economic growth.
But I do support the existence of one or two sole leadership in managin economic growth as instace how the world economics would follow them. But still, they have to do it in balance ways without neglecting the role of Third Worlds economic development and achievement.
ECONOMIC GLOBALIZATION AND CHANGING ROLE FOR STATES
In liberal perspectices of globalization that interdependent economic system would advance globalization an thus will improve prosperity and welfare to people, cooperation and companies in which economic system is fullly independent from any government intervention. In time, mercantitilst perspecive of globalization in which glbal economic system would still rewuire government interference to generate interantional trade system in order to hasten econmic stability. In spite of decreading, the state capability to manage its economic growth has increased.
The economic globalization must be an economic concept as a whole collective states role in shaping and animating economic growth. The developed countries together with raising sttars (China, Japan, India and toerhs0 and theird world countries have to cooperate in creating a fair economic establishiment. While the tangible factors in economic for example exchange rate, tariffs, and toehrs should be managed by Adam Smiths’s theory, invisble hand, and therefore the balance way of government (poltical) and economic bended.
2nd, the political forces that shape internaional economic relations will besought and critically examined in terms of their influence and their relations to the more conventional economic gorces that shape policy and exchange.
3rd, there were various political forces that were brewing and influencing trade policy at that time. And most of them continue today. Simply saying, the iperialism on the late 19th century has conventionally been explained as the international manifestation of advanced capitalism. But much was going on in international politics that suggests therewere many political advantagesin securing overseas theory.
CONCLUSION AND OPINION OF THE FUTURE IPE
Internationa political economy is literally distinguished from global economic. While international political economic actors are mainly states, global economic main actors are broadly wide. But in today terms, global ecoomics are more applicable n understanding IPE> the good news in the global economy is that the past two decades have seen globalization proceed apace with unprecedented economic growth in several parts of the world. The bad news in that is curretly looking more precarious, more unequal, and less governened than it had been in previous decades. The reason is because governenace within global economy has not kept up with the globalization and growth. Few decades ago, EU and US has emerged as dual world economic leading figures in which both are large econoies whose prosperity affects all others. For instance a low down in either will soon reduce growth rates in China posing both economic and political problems within that country as well as its surrounding regiona. This due to the fact the formulation of economic interdependence by the EU and US. And therefore, the meeting of G20 is meant to urge “the rising economics stars”; India, China, and Russia to be more involevd in cerating the future of global econoic in order to avouid fllowing economic crisis caused by US national governements and central financila bankers failed to regulate international financial effectively.
REFERENCES
Sorensen, Georg. 1999. The Introduction of International relations. London: Oxford University Press
Woods, Ngaire. Governing the Global Economy: Strenghtening Multilateral institution.
Gatra. 2008. Membungkam Mulut Kapitalisme. Edisi 27 November-3 desember 2008
The concept of liberalism and mercantilism is attacking each other, this somehow makes one is less than another. For instance, in the Clinton Office, liberalism had been ruled by the supreme mercantilism. Due to this situation and US economic domination being stressed, soon United States proposed new deal of international economic system, and there General Agreement on Tariffs and Trade (GATT) created.
Bretton Woods meeting was remarked the birth of international monetary fund (IMF) and world back (World Trade Organization) and fixed exchange system using gold.
In my opinion, Economic processes and relations don’t exist in a vacuum. The simplified models of economies often asssume political forces away. Thus arriving at what they would conseder to be the optimal models of managing the lfows of goods and services both nationally and internationally in anything but a real world setting. There are many examples of how politics influence economic processes and policy. For instance, economists have found that inflation tends to rise toward the end of US presidential terms.
Bretton Woods was aimed to foster economc growth and internatioal economic after the Second World War. But 1970s, Bretton Woods had failed to meet such expectations because of some certain factors and some incidents. First, United States as one of the preeminent economy sole leadership was engaged in Vietnam-Communism land. Second, the oil crisis occurred in 1973. Third, the third world calls for new international economic order to United Nations so that could bring Third World Nations to advance development. Above events, are merely examples that had put Bretton Woods to crisis and hence, was higly urged to be replaced by new economic deal/ system.
Above, Bretton Woods was little example that governments took interest in creating economic interactions. Governments refer to the political interest that is relevant to shaping interantional economic growth. This relevance that has become the case study of IR in which this relevance furthermore is called international political economy. in order to understand how IPE play sits role in IR, we will have to differentiate point of perspectices, namely economic theories comprised of economic mercantilism, economic liberalism, and marxism (additionally).
1. MERCANTILISM
Mercantilism has been known in the previous (first year) of colonialism age and imperlisms or old capitalism age in time we are already familiar with. Mercantilism suggests the paradigm that the states welfare and prosperity was defined by how states and could possess gol in particularly in the age of old capitalism and later than states welfare. But recen years (nowadays), the term of mercantilism has slightly drifted in which mercantilism is used to describe the role of political government in governing international economic system and its growth. The adherent of mercantilisms believes that states are the principla actors in economic system.
1. ECONOMIC LIBERALISM
Liberalism has been identified with the presence of individual liberty with the absence of government intervention. As Adam Smith stated, that the growth of economic and problems within it would be solved by the act of invisible hadn. Means that economic had to be fully independent from any interset including policitcal government interests. Because they (Adam Smith, David Ricardo, and Benjamin Franklin) believed that market works best when free of government interference. In other owrds, economic field is a peaceful settlements in which nations establish cooperation based on mutual benefits of trade.
1. ECONOMIC MARXISM
The economic marxism is known as materialism in which econoic system is setu upon between machinery against artisan handicraft or burgeoisie and the proletariat. The marxism theory is also identified by the presence of exploitation and inequality between social classes. As long as the assymetry in social classes between them exist, the lover class which is proletariat will always be dominated and thus economic system is inclined to be dominated as well.
PERSONAL OPINIONS
The history of international political economy starte dwhen the first economic system established in Bretton Woods, thus called the Bretton Woods System. Following the formulation of Bretton Woods, there are three economic systems embraced by different countries. There are liberalism, mercantilism and marxism, it doesn’t matter which of them is the best. What the most importaint is statesintervention is still needed to exercise rules and regulation in order to assist their own (regional) economic system. I would say there should balaces in between economicliberty and government intervention in order to minimalize gains in borgeoise and lost in proletariat class.
Giving the fact that political leaders are entrusted with the guiding material fates of their societies, the execution of macroeconomic and foreign policy in nations today is susceptible to the ebbs and flows of political discretion. And therefore, economic has been politically important.
US HEGEMONIC STABILITY
The hegemonic role was played by Britain on the period of before 20th century but then after the second world war had setu United States to be one of the preeminent economic leader with its $7trilion. This fact demostrates that the exposure of America’s participation in economic system has become essential and therefore, indirectly or directly has placed United States to its hegemonic hierarchy.
In the way using its hegemonic over economic growth, United States had fully realized the importance to set up international trade organization (Ito) which would aim to explore the best ways to lower commerce rules on international trading system. Due to its liberal economic system, United States attempted to liberalize the trading system and thus referred to the conception of open market system. However, United States faced or was challenged with the other economic rival countires such as Japan and Europe (germany).
Thus above occurrence (rivals) brought about United States economic hegemony forced down. United States open market system had to cope with protectionism and infavorable market system. Reaching in effective ways, Untied States recommended the new multilateral trade negotiations as well as the unilateral and regional trade organizations.
Personal Opinions:
From articles, United states attempted to impose its liberalism through different international economic organization for instances are Bretton Woods, GATT, IMF, WTO and otehrs. This action suggests andpromotes its hegemony. But somehow its hegemon was under attacked by other economic revalries such as Japan and germnay. Other reason US hegemonic had been stressed was its responsibility to direc and give shapes to economic growth.
But I do support the existence of one or two sole leadership in managin economic growth as instace how the world economics would follow them. But still, they have to do it in balance ways without neglecting the role of Third Worlds economic development and achievement.
ECONOMIC GLOBALIZATION AND CHANGING ROLE FOR STATES
In liberal perspectices of globalization that interdependent economic system would advance globalization an thus will improve prosperity and welfare to people, cooperation and companies in which economic system is fullly independent from any government intervention. In time, mercantitilst perspecive of globalization in which glbal economic system would still rewuire government interference to generate interantional trade system in order to hasten econmic stability. In spite of decreading, the state capability to manage its economic growth has increased.
The economic globalization must be an economic concept as a whole collective states role in shaping and animating economic growth. The developed countries together with raising sttars (China, Japan, India and toerhs0 and theird world countries have to cooperate in creating a fair economic establishiment. While the tangible factors in economic for example exchange rate, tariffs, and toehrs should be managed by Adam Smiths’s theory, invisble hand, and therefore the balance way of government (poltical) and economic bended.
2nd, the political forces that shape internaional economic relations will besought and critically examined in terms of their influence and their relations to the more conventional economic gorces that shape policy and exchange.
3rd, there were various political forces that were brewing and influencing trade policy at that time. And most of them continue today. Simply saying, the iperialism on the late 19th century has conventionally been explained as the international manifestation of advanced capitalism. But much was going on in international politics that suggests therewere many political advantagesin securing overseas theory.
CONCLUSION AND OPINION OF THE FUTURE IPE
Internationa political economy is literally distinguished from global economic. While international political economic actors are mainly states, global economic main actors are broadly wide. But in today terms, global ecoomics are more applicable n understanding IPE> the good news in the global economy is that the past two decades have seen globalization proceed apace with unprecedented economic growth in several parts of the world. The bad news in that is curretly looking more precarious, more unequal, and less governened than it had been in previous decades. The reason is because governenace within global economy has not kept up with the globalization and growth. Few decades ago, EU and US has emerged as dual world economic leading figures in which both are large econoies whose prosperity affects all others. For instance a low down in either will soon reduce growth rates in China posing both economic and political problems within that country as well as its surrounding regiona. This due to the fact the formulation of economic interdependence by the EU and US. And therefore, the meeting of G20 is meant to urge “the rising economics stars”; India, China, and Russia to be more involevd in cerating the future of global econoic in order to avouid fllowing economic crisis caused by US national governements and central financila bankers failed to regulate international financial effectively.
REFERENCES
Sorensen, Georg. 1999. The Introduction of International relations. London: Oxford University Press
Woods, Ngaire. Governing the Global Economy: Strenghtening Multilateral institution.
Gatra. 2008. Membungkam Mulut Kapitalisme. Edisi 27 November-3 desember 2008
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