Origins and Evolution of Ipe Essay

Origins and evolution of IPE and its relationship with International Relations, Comparative Politics and stinting science International political frugality can be defined as the postulate of how sparings and politics influence to each one other in the existence-wide establishment the interaction of those two aspects of the external society. IPE focuses how governmental policies hit the way frugal resources ar employ and what are the consequences of those policies, especi ally economic consequences (welfare consequences). Although the terms orbiculateization and IPE are relatively modern, global governmental saving, as the schooling of interaction amongst politics and political economy, has existed for more than a atomic number 6. The branch global economy took place during the nineteenth century when the British pudding st whiz(a) was the center and hegemony of the global economy and trade. In a time when commerce was the predominant economic system, Britain m ade its economy more flexible and open(a) to the exterior this starting signal global economy was based on symmetric agreements that reduced tariffs and on a stable world(prenominal) monetary system (starting with the British abolition of Corn Laws and the British-French Cobden-Chevalier Treaty).The gold standard was besides adopt by umpteen nations as the fixed rate exchange. By these years, the first perspectives of international governmental economy were used to explain the situation and the succeeding(a) of the global economy Liberalism that encourages international economic interactions in point to enrich each of the involved countries. Individuals are the main actors ruling the economy and cooperation benefits all of them. Mercantilism which argues that economic part is necessary to gain national power it supports that the State is the most important actor in economics. Marxism that divides the global economy in two conclaves advanced countries that explode the poorest countries. However, the beginning of the twentieth century was characterized by multiple changes in the system. The depression World contend meant the collapsed of the British hegemony and the raise of the American power.Despite the collapsed of the global economy in 1929, the swell Depression, USA regained its economic power during and after the Second World War (period known as the Pax Americana). Since WWII was caused in part by the misfortune to reconstruct a stable global economy after WWI, join States, as the hegemonic power, worked in order to create international institutions to provide a more stable structure and integrated international economy. Therefore, developments after 1945 defend amplifyd the interactions between economies. In this post-war period, sunrise(prenominal) international organizations were created World trading Organization, International Monetary Fund, and the World Bank bring forth powerfully regulate the international semipolitical economy and its study. Today, the dread of their function is essential to the study of IPE they are key focuses of the IPE. However, some argue that the IPE was not developed until the 60s and 70s, when the Pax Americana was declining.This was a period characterized political and complaisant instability economy was not as prosper as it used to be in the past and the Cold War was increasing the international tension between capital and communist blocs. Moreover, events such as the crude oil Embargo in 1973 and the breakdown of the Bretton Woods monetary system are key factors that influenced the development of IPE. For these reason, the old theories were not able anymore to break and understand the global political and economic situation. Theories like the hegemonic stability, which argues the necessary being of a hegemonic country which encloses the global political economy, failed in their strives to predict the upcoming of the international system based on state-power expl anations. USA hegemony has been collapsing since the 60s however, cooperation, interdependence and global trade since then throw increased successfully.Today, the global economy is dominated not scarce by United States, but by Japan, Germany and France. Moreover, IPE today is facing the challenges of a more globalized political economy, where saucy actors have key roles in the function of the system, such as chinaware and India. By examining the historic events of the international environment during the last centuries, we can encounter how important the interaction is between economic and political factors in the global system. Economic tools, such as tariffs, distinctly determine openness and global trade the lowest the tariffs of states, the greater the openness of economies (periods from 1820 to 1879 and from 1946 to 1970). Those periods of open economies correspond to the procreation of the British and American hegemony.On the other hand, we can notice how these economi c interactions shape States foreign policies normally, trade is concentrated within regions not only because of comparative advantage, but by political choices or dictates (Krasner, 29). Nowadays, globalisation is creating a lot of controversy and disagreement about the future of our international system. spot some emphasizes the benefits of a more dependent and cooperative economy, others argue that globalization consequences are social inequalities and pecuniary crisis. The challenge today is to decide whether the states should increase global trade or close their economies. Those political decisions are strongly influenced by social and public opinions if undivideds and other economic actors reject globalization, policies would be created to protect their national economies rather than maintaining the openness. History demonstrates how political actions of individual states clearly furbish up international trade and relations at the homogeneous time, those policies put on the behavior of economic actors in the international environment and foreign polity of other states.In a globalized world uncomplete economic theories nor political theories alone can explain and predict the international system. IPE integrates both and is underdeveloped its theories to face the changes of the economies and politics of the globe. IPE has been forced to adopt clean research methods and analytical tools to explain the new trends of the international arena. Todays IPE theories have to overwhelm new units of analysis such as the role of international institutions and how policies affect limited groups. Today, we can differentiate between four IPE perspectives international political (emphasizes the role of internal policies), international economic (highlights global economic factors), domestic institutional (studies the role of the institutions of the state) and domestic societal (the role of sociopolitical actors).The most dominant approach today is the Open E conomy Politics, which include new units of study such as the interest of particular groups, the role of institutions and the influence of one states decisions in other states behaviors. International semipolitical Economy (IPE) is a maturing interdiscipline As we mentioned before, Political Economy, as the study of the interaction between economics and politics, is not new. However, during the past decades, changes in the global system have led to new and more developed studies, and IPE has emerged as new and renovated interdisciplinary field. IPE was born, as know it today, when scholars realized the richness to understand the simultaneous ripening and conflict in international markets in the 60s and 70s. Since its birth, IPE has evolved and many different approaches have risen. On the one hand, the dependency surmisal was developed, which argues that the world is divided in a periphery (the poorest countries) that is dominated by the core (the most developed countries).On the other, the hegemonic stability theory was also created, which supports that the existence of a hegemonic power is necessary in other to control and stabilize a global economy. Another approach to IPE also emphasizes the importance of interest groups in trade policies. As we can notice, new perspectives and situations head for the hills to different approaches. Today, the dominant approach is the Open Economy Politics (OEP), which incorporates new and more explicit variables to the study of the international political economy. OEP focuses in how individual or groups are affected by particular policies, how institutions aggregate remote societal interests and rule the political game, and how states negotiate when necessary to influence one anothers behavior. Therefore, we can see how IPE has grown and improved in the last decades to adjust their methods to changes in the global system. New tools and research methods have undoubtedly improved IPE outcomes.However, David Lake argues that it is not perfect, and there is a lot to improve. For the same reasons that substantial intellectual progress has occurred in the past, I remain positive about the future of this emerging interdiscilpline (Lake 2004) In conclusion, as long as the global political economy faces changes and new challenges, IPE has to adjust its methods in order to better explain international interactions and their influence in economy and politics. Although the IPE filed is apace developing nowadays, it can improve its theories.We also need to remember that globalization is changing our received system, and that even though IPE predicted this current era, it wasnt as accurate as it could be. Many experts argue, for example, that globalization is increasing inequalities around the world and that more protectionist measures mustiness be taken (Oatley p. 362). A better understanding and development of the IPE would help us understand and take decisions about our current economics and politics, and would help us predict the outcomes of those measures we take. As Jeffrey Frankel says, globalization is neither new nor very extensive the same way IPE has been developing for years, it must keep emerging new theories and methods.IPEs main contributionFirst of all, I want to emphasize that I do not realize IPE as a methodological approach, but a set of studies that attempt to explain international trade and politics IPE is not a group of rules that countries and economies have to follow, but theories that help us explain the outcomes of our economic and political actions. Personally I do not think that any particular event or politic-economic decision is a direct outcome of IPE. Instead, what I think is that IPE is an essential social science that helps us to understand economic and institutional behavior in the international arena. IPE has showed us how politics and economics are not separate aspects of our society, but they are complementary and interdependent pieces of the i nternational system. Although there is a lot to develop in the international political economy field, it has been able to predict outcomes of our political and economic decisions.Therefore, IPE does not directly tell us what policies we should apply, but show us the consequences of each one of them and help us to take decisions based on predictions. Also, IPE has showed us that our society is in continuous change although there are many factors that are repeated throughout history, there are also new challenges that appear in each different period. The study of International Political Economy can better prepare us to face the new challenges of our society the emerge of new powerful economies such as chinaware and India and how their appearance will change international relations, the implications of the last global financial crisis, the roles of new social force and international institutions, and many others.SourcesOatley, Thomas. 2010. International Political Economy (4th Edition ). New York Longman.Frieden, Jeffry, David A. Lake, and Lawrence Broz, eds. 2009. International Political Economy Perspectives on international Power and Wealth (5th Edition). New York Longman.Lake, David. International Political Economy A Maturing Interdiscipline. Diss. University of California, 2004. N.p. n.p., n.d. Print.