International Political Economy Lectures Notes 1-13

I E


Lec e Wha i IPE C eai Ba gai i g Ref e he
Economics The s d of he prod c ion dis rib ion and cons mp ion of scarce reso rces
Poli ical econom The s d of he role of he s a e and poli ics in he prod c ion dis rib ion and cons mp ion of
scarce reso rces


I e ai a P i ica Ec
IPE s dies he poli ics of he flo s of prod c ion dis rib ion and cons mp ion across na ional borders
I is no onl na ional go ernmen s ha ma er b also foreign go ernmen s in erna ional ins i ions and foreign
b sinesses
Fe economic flo s are no global in some na re


P i ica ec
Foc s on he inners and losers
The s a e makes decisions ha ha e he erogeno s differen conseq ences across socie an go ernmen
polic ill benefi some and impose cos s on o hers
Some benefi some lose o a a ion rade polic social programs
Some imes general elfare is increased some imes small gro ps in a he e pense of general elfare
Dis rib ional conseq ences of polic ma er
Who ins and ho loses can ell s abo hich decisions are made and h he ere made
Ins ead of ass ming ha he go ernmen is r ing o impro e general elfare as man economis s do ma be
r e in co n ries i h er represen a i e democracies ha r o pro ide p blic goods o e er bod b in
mos cases poli icians are ac ing on behalf of heir o n in eres s
Less abo ideas and ideologies and more abo ho ge s ha hen and here ho gh some ma approach he
field i h a foc s on he role of ideas
Poli ical economis s end o foc s on he ma erial benefi s and loses fe foc s on ideas
Do ideas ma er Probabl b his is harder o heori e or q an if
Do people ac agains heir o n ma erial self in eres beca se of ideas
Yes b ci i ens and poli icians also e hibi endencies o ac ra ionall more of en han no
Poli ics pla s a ke role in shaping he in eres s of hich poli ics e en all ge adop ed


IPE
The conseq ences of in erna ional flo s
Trade goods and ser ices
Capi al finance c rrenc
Immigra ion people labor
En ironmen poll an s
Violence errorism ci il conflic peace
Unders anding he conseq ences of policies helps s nders and he o come

,App oache o IPE
i m a e no a ef l a o each he di cipline acco ding o D D
Ho can e e pec a ingle heo like Reali m o e plain all of IR
A ingle pa adigm can e plain he global econom and poli ical o de
i m eme ge beca e he come i h polic p e c ip ion and people in he polic o ld a o i e academic
e ea ch ha f lfil hei polic goal
DiGi eppe ill e Game Theo a a ool o nde and he in e ac ion be een economic and poli ical cience
Old School
Th ee app oache
Each offe a a o ie he poli ic and he o ld econom
Iden if he impo an ac o a e indi id al in e e g o p
The ela ion hip be een hem conflic al coope a i e
Each p opo e di inc economic polic ecommenda ion ha flo f om hei heo each ha
implica ion fo ha go e nmen ho ld do
Each i limi ed beca e of hei igid f ame o k and dependence on e ionable a mp ion
And no ma i e ie on ho he o ld ho ld o k
Me can ili School Me can ili m
Simila o IR Reali m
Foc e on he a e a he han bna ional in e e a me a e a e e pon ible fo di ec ing
economic ac i i dome icall and globall
A mp ion ae e economic polic o inc ea e po e ha de e mine economic flo in IPE i ha
a e a e dic a ing polic o e hei economic polic o inc ea e hei po e ae an po e he
manip la e he econom o o ma imi e ha po e
Na ional po e come f om economic po e
E po b ing mone in and inc ea e po e impo end mone o and dec ea e po e b
eng hening o he a e pa l e befo e no an mo e
E po a in hei impo ance man fac ed good a e pe io
Implica ion The econom ho ld be con olled o gain po e polic p e c ip ion e can ee elemen of hi
in he T mp admini a ion
Libe al School
Co n ie and indi id al gain f om ade b e ploi ing compa a i e ad an age
Foc e mainl on indi id al elfa e ha be fo indi id al
No ha m in engaging in ade
All ade i good no j a po i i e balance e po impo
Implica ion The ole of he a e ho ld be limi ed
Ma i School
No he polic p e c ip ion b he heo nde l ing hem
T o cen al fac o pla e
Capi al mean of p od c ion and age labo in ead of he a e o he indi id al
Na al endenc of capi al concen a ion fo he eal hie o ge eal hie he a e e i o p o ec capi al
no labo
Compe i ion efficienc mall eli e benefi
Lead o ne al ocie e ol ion

, I e ai a E iai f he S hb he N h
I ica i Ca i a i i bad f he di ib i f ea h
A modern approach
Interests and instit tions
F c e he i e ac i be ee cie a i e e a d he i ica i i i ha f e he i ic
We ea i ab i ee a di i i b ida de ha he e ai a c e
I ee
Wha d i e i ica beha i
Ma e ia cie a
Wha i c ea e e fa e
O i ee a e dic a ed b a e ia i e e a hi g ha i c ea e ge e a e fa e
P i ica i i i a
Wha i kee ei i ica ffice
D i ef a ce ai ic ed ic Ae g i g a e ia be efi a e ia
e
Ma e ia i e e a e a ge ha ed b e d e h ake e ki ha
i d ki
Ski e e
Fac f d ci La d ab ki ed a d ki ed ca i a h e ake e
I d
Wha ki d f i d e ec
E a e I c ei g e ie ed e ed
Te e he e ka dI e i ica efe e ce
The i e e ha a e diffe de e di g he e i ea e i g a e
S ei e i ee a e ha d ide if We ha e i if a d ake a i j ike a he ie
I ee fc ege de
I ega d g e e ec ic ic
P e if de aid ha d
L e i ee ae e ea ic
H ef h d ki ed ab g ad a i a d d ike e ha ab he e f he
d f ee ade
I i i
Wha i a i i i
A e f e ha g e beha i
B h e f ced e f ced
Di i g he igh ide f he ad
QWERTY ke b a d c f defec i a e ha d
D ch C i i
P i ica i i i
D e ic de c ac dic a hi i be ee e ide ia a ia e a be f a ie
I e ai a WTO UN NATO NAFTA
Interests and instit tions
Ha a i ai ied hei ecific bjec i e b he a e f e ib e
P ide a f a e k acc da e a a ie f e ea ch e i ha i i i ed a i ic

, f ame k
Of en ign e me en iall im an a iable C l e he e f idea and n m b he can be
acc mm da ed b ela ing a m i n m del