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POLSCI 2I03 (101)
Andrew Lui (26)
Lecture 4

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Department
Political Science
Course
POLSCI 2I03
Professor
Andrew Lui
Semester
Fall

Description
Lecture 4 (A triangle) International organizations Peace Democracy Economic interdependence Neo-liberal Institutionalism: is generally is interdependence theory. This definition is not the type of neo-liberalism that is often slandered by newspapers, leftist journals, etc. we are talking about the theory of neo-liberalism. The theory was founded mostly in 1970s, by two scholars: Robert Keohane and Joseph Nye (also the founder of ‘south power’). These groups of scholars attempted to create an alternative to neo-liberalism which would explain why states would not go to war, why there has been a diminishing process in war since WWII. To make IR more scientific but also to study things which neo-liberalist in general left out. Neo-liberalism was interested in the great power of war. There are other negating powers out there particularly the rules in anarchy (common assumption of liberalism, anarchy exists but does not have the same result as the realists think). But liberalists think that yes anarchy exists but it can be diminished. Looking around at the actual events of IR, many international institutions were becoming more prominent, growing in number and depth. Liberalism cannot explain why this happens, broadly speaking to IR why states don’t go to war often, why institutions are extremely robust. Classical liberalism rests on values such as a rule of law, and internationalism. Neo-liberalism relies on bit different values. One common thing between classical and neo-liberalism is a belief in rationality, that states are rational actors. This belief in rationality, says that states are utility maximizers. However, they come at different explanations for things. Neo-liberalism believes in the logic of Prisoners Dilemma as well. Example: two people are caught for a crime, the issue is that let’s stick the prisoners in two separate interview rooms. What potentially may there sentence be, how harshly should the justice system punish them. If one prisoner turns into a potential state witness then they get less punishment. Neo-liberalists worry that you will be the prisoner stuck with 15 years of jail, and the other guy goes away with 3 years of jail. People are always afraid that they are the ones that will be screwed over. Real life is not like prisoners dilemma, not perpetuated to crime. Real life is where you are allowed to communicate with the other actor. Neo-liberalist take the same game/assumption but they say neo-liberalism is wrong because they only play the game once. If they talk and work things over they can try to reach the optimal outcome (which is 0 years of jail). We may not be able to always hit 0 because there are miscommunication between actors or they want different things, but the idea is that you come close to 0. You are more concerned with absolute games than relative games at the end. (http://www.gametheory.net/lectures) Defection: how to avoid defection and maximize collusion or cooperation is essentially what the neo-liberalists are trying to do. Using this model, they predict that within institutions you can maximize absolute gains and minimize loss. Institutions are great when they deal with specific things in which you maximize cooperation and avoid defection as much as possible. Institutions, international law doesn’t matter (neo-liberalism), but these guys come up with games that say why institutions might work. This is significant because neo-liberalism assumes a materialist basis of power ( guns and butter) in the sense that money can buy guns, that’s how you can measure capability. Waltz’s third point is on balance of power. Neo-liberal institutions say something
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