IPE

International Political Economy (IPE) §

• International Political Economy (IPE) states that Politics and Economic are closely connected in understanding and explaining international relations.
• Karl Marx was the most famous IPE scholar
  • he praised his Marxism way of IR
    • The capitalists/bourgeoisie always exploits and oppresses the poor/proletariat will be a constant characteristic of the international system
    • The Rich will try to keep the proletariat poor and they will always be rich
• Liberal and Realist IPE debated against each other

Liberal IPE (Liberalism) §

Assumption: Everyone involved in the expansion of the capitalist economic system will prosperous and make everyone better off

• The Reasoning is that no one would bother with Liberalism if it’s not beneficial

Realist IPE (Realism) §

Assumption: States should control the wealth, economic activities to build a strong state to support national interest

• similar to mercantilism: states have to maximize their wealth (wealthy = powerful)
• Hegemonic Stability Theory: Economy could only function smoothly with a central political power looking over it
  • need 1 hegemony to control the market to provide Public Good

References §

1. Chapter 2 Theories of IR