Lecture 1
What is political economy, Stilwell
Chapter suggests three ways of defining political economy in terms of: (1) the real world
problems on which it focuses, (2) how these problems are analysed, (3) the currents of
economic thoughts from which it draws.
1. Relevance to economic problems?
Economic concerns beset us individually (e.g. how to manage our income) and collectively
(e.g. taxes, government spending).
=> How to analyse => Dominant economic orthodoxy today: Neoclassical economics:
- Competitive markets => beneficial effects.
- Capitalism = stabilising, self-equilibrating system.
- Has had a strong impact on economic policies in practice (e.g. liberalisation of trade)
=> strong relevance.
- Holy-trinity (IR).
- Especially important the last four decades.
- Global recession (2008) has made reconsideration of this orthodox theory/policies
necessary.
=> alternative = modern political economy: deals with current political economic problems
and policy issues (e.g. economic and ecological sustainability, economic inequality).
=> Political economy is a more holistic approach to social science; interdisciplinary.
2. The political economic questions
The political economic questions (e.g. concerning globalisation):
- What is happening? (facts - what is important, inconsequential?)
- e.g. requires distinction between different kinds of globalisation (human rights,
finance and trade etc.)
- Why? (causal factors)
- e.g. requires analysis of the drivers of change.
- Who gains/loses? (careful study of participants)
- e.g. analysing whether industrialisation of ‘export-processing zones’ has
trickle-down benefits on society or whether this causes health and
environmental risks of greater concern.
- Does it matter? (evaluative considerations)
- e.g. analysing the social and environmental implications of globalisation.
- If so, what can be done and by whom? (remedial policies/strategies)
3. Contributory conceptual currents
However, any economic issue has competing explanations since there are different schools
of economic thought.
a. Classical political economy
1
What is political economy, Stilwell
Chapter suggests three ways of defining political economy in terms of: (1) the real world
problems on which it focuses, (2) how these problems are analysed, (3) the currents of
economic thoughts from which it draws.
1. Relevance to economic problems?
Economic concerns beset us individually (e.g. how to manage our income) and collectively
(e.g. taxes, government spending).
=> How to analyse => Dominant economic orthodoxy today: Neoclassical economics:
- Competitive markets => beneficial effects.
- Capitalism = stabilising, self-equilibrating system.
- Has had a strong impact on economic policies in practice (e.g. liberalisation of trade)
=> strong relevance.
- Holy-trinity (IR).
- Especially important the last four decades.
- Global recession (2008) has made reconsideration of this orthodox theory/policies
necessary.
=> alternative = modern political economy: deals with current political economic problems
and policy issues (e.g. economic and ecological sustainability, economic inequality).
=> Political economy is a more holistic approach to social science; interdisciplinary.
2. The political economic questions
The political economic questions (e.g. concerning globalisation):
- What is happening? (facts - what is important, inconsequential?)
- e.g. requires distinction between different kinds of globalisation (human rights,
finance and trade etc.)
- Why? (causal factors)
- e.g. requires analysis of the drivers of change.
- Who gains/loses? (careful study of participants)
- e.g. analysing whether industrialisation of ‘export-processing zones’ has
trickle-down benefits on society or whether this causes health and
environmental risks of greater concern.
- Does it matter? (evaluative considerations)
- e.g. analysing the social and environmental implications of globalisation.
- If so, what can be done and by whom? (remedial policies/strategies)
3. Contributory conceptual currents
However, any economic issue has competing explanations since there are different schools
of economic thought.
a. Classical political economy
1
