- First tease out the issues that the countries are securitizing
- Then compare, how they divert, or how they are the same
- Securitizing something is different than something that is worth of security
- Securitizing is a political process, extension of politicization
ECONOMIC SECURITY: REFERENTS, THREATS, AND VALUES
MONETARY POLICY A SECURITY ISSUE?
- China uses a fixed exchange rate system that keeps the yuan trading in a narrow band at a little under 7 yuan to the US
dollar...makes it more competitive and advantageous for China.China is keeping it currency at a certain level thus
keeping its exports cheap,
- To maintain this peg, China’s central bank buys US dollars in amounts roughly equal to its trade surplus with the USA
- In order to prevent inflation of its currency China buys US treasury bonds, thus financing US debt
DOES THIS BECOME A SECURITY ISSUE FOR USA?
CHINA AS A SECURITY THREAT?
- Friedberg views economic gains in relative terms
- Argues that the financial crisis may “mark the end of a period in which trade served to stabilise Sino-American relations
and the beginning off one in which it will become a source of friction and conflict”
- In the 2008 financial crisis, the terms of USA China engagement has changed, start of a TRUE economic rivalry
INTERDEPENDENCE AS A SECURITY POLICY?
- Is economic interdependence between the United States and China increasing or dwindling?
- What are the implications for the US? For China?
WALL STREET AS A SECURITY THREAT?
- “ I made a mistake in presuming that the self-interest of organization –specifically banks and others—was such that
they were best capable of protecting their own shareholders” - Alan Greenspan (Former Chairman of the Federal
- Market failure case, it occurs when there is no/little government regulation to insure that the interest-drive pursuits of
actors in the system do not end up collapsing the system
THE “RETURN TO NORMAL”
- Disassociation of political economy and security studies and anachronistic
- Function of unique historical instance of Cold War
o Superpowers were less expose d to international markets than great powers
- In the new world order, traditional security concerns more affected by issues normally associated with political
PARADIGMS IN IPE
- Emphasizes the role fo state power in obtaining advantageous trading arrangements for states
- Presumes that states should aggressively seek to maximize exports and to minimize imports
- Presumes that states should seek trade surpluses and should seek to protect domestic industry from foreign
competition - Fits within the broad framework for the realists school of international relations, with its emphasis on national power
and the importance of relative versus absolute gains
- Emphasizes the role of markets in maximizing aggregate social welfare
- Argues that market surpluses do not exist over time and that attempts to achieve them interfere with efficient
production and consumption stifling welfare
- Law of comparative advcantge suggested that free trade increased efficiency and made everyone better off
- Promotes laissez-faire role for the state in the economy and an international system based on free trade
- Views international relations as struggle between rich and poor classes rather than as a contest between national
governments or nation states
- International system was constructed with the implicit intention of perpetuating the advantages of the industrialized
- Sees socio-economic conflict as prog