Monday, November 25, 2013
China and Europe to begin Trade Talks BY REUTERS
- Distribution of power and wealth rise of China
- Importance of Global Economy common concern
- Consequences of Free Trade /Benefits of Free Trade
o Disputes over what consequences of free trade, in terms of mass production of goods
o China being the largest producer of solar panel (low prices to grab market share)
“No matter what you think of it, this is a historic deal,” said Vali R. Nasr, the dean of the John Hopkins
School ofAdvanced International Studies. “It is a major Seismic Shift in the region. It rearranges the
entire chess board.” From NYT November 25, 2013.
- International community worries about Iran going beyond the 3.5 percent of nuclear.
o Thinks that going past 20%, can go easily to 90% and make nuclear weapons.
- Give both sides a longer time to negotiate
- Too early to tell if it’s a good deal or not.
- Some voices within world politics say that it will change the Middle East politics
International Political Economy
- Different Faces of IPE
o Political bargaining over economic issue. Politics of economics. Economics influences
politics. Benefits from global free trade influence the political relationship among states.
o Interactions, how does global trade influence states and how that influences the global
economy? How global capitalism puts constraints on what actors can do politically.
o Economic globalization
Global financial flows/trade/economy,
Use rules/regimes to get benefits of global economic activity.
- IR Theories and IPE
o Realism – Mercantilism (set of suggestions for foreign economy)
Politics Trumps Economics
• Economic goals and policy are tools for state power goals
• Mercantilist Policy
o Doing everything economically to secure state power.
o Free trade without tariffs, able to sell exports everywhere for
cheap. High tariffs, others will cost more
• Economics is just another form of power o Liberalism
Politics Separate from Economics
• Ensure free trade, efficiency is the goal
• Get absolute gains from trades. Get mutual benefits from trade
• Global free trade to maximize economic welfare
• Try and enhance global cooperation and free trade.
• Open liberal economy open publicly: cooperation, security dilemma
• Democratic peace: democracy does not fight other democracy.
• Spread of capitalism/free trade brings in peace
• Economics can do good, separate from politics, have good outcome,
Economics Trumps Politics
Capitalist class against workers. Inherent tendency to imperialism
Economic tools aren’t tools of the eco class
Lead to conflict
- Key Concepts
- Key Institutions
Dominant Worldview Today?
- Global Capitalist Economy
- Free Trade
- Removal of Government Intervention in Economy
- Removal of Controls on money flowing across boarders
Three Big Issues in IPE