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Classical IPE Theories


									             Lecture 4

      Classical IPE Theories

All theories here are descriptive and
   prescriptive to various degrees.

           Dr Jacqui Ala
Economic Nationalism/Mercantilism
   Origins – establishment of modern
    sovereign state, 16th & 17th Centuries
   Alexander Hamilton; Friedrich List
   Economics subservient to politics
   Main actors – states
   Nature of economic relations –
    conflictual/zero sum game
    • Benign vs aggressive mercantilism
   Economic goals – state power
   Success of East Asia
       Economic Internationalism/
         Economic Liberalism
   Counter theory to mercantilism, emerging
    also in 16th & 17th centuries
   Adam Smith (1723 – 1790)
   David Riccardo, comparative advantage
   Economics autonomous from politics
   Main actors – individuals/companies
   Nature of economic relations –
    cooperative/positive sum game
   Economic goal – maximum individual and
    social well being
       Economic Structuralism

   Critical Response to Liberalism
   Includes
    • Marxist Theory (Marx, Engels and Lenin)
    • Dependency Theory (Raoul Prebisch)
    • World Systems Theory (Immanuel

   Economics dictates politics (materialist)
   Main actors – classes
   Nature of economic relations – conflictual
    zero sum
   Growth of capitalism – positive
   States not autonomous
   V I Lenin - Imperialism
   Capitalism is expansive
     Neo Marxism – Robert Cox
   Cox’s analytical framework

                        Social forces

                                        World order
       Forms of state
             Dependency Theory
   Sees world in two spheres
    • The core
          manufactured goods
          Colonizers
    • The periphery
        primary goods
        Colonies

        Neocolonialism

       Relationship is inequitable and seeks to entrench the
         status quo as the core states determine the rules of
         the game
       They also have influence on the elite of the periphery
       Economic system needs to be changed to achieve
         greater equality between players
Immanuel Wallenstein
World Systems Theory

               Semi periphery

       Contemporary debates
   Does a liberal IPE need are
   Development and underdevelopment
    in the Third World – contending
   Economic globalization: where are
    we going?
   Class Assignment - Due Date 25 April @ 12:30

   Task
   Colour code each country in the table according to their GDP
   Now colour in the country on the world map according to their above assigned GDP
   Also write their Human Development Index ranking on the map
   Questions
   Section A – (50 marks)
   Explain what a gross domestic product is and what it is designed to measure?
   Explain what the human development index is and what it is designed to measure?
    How do these 2 instruments of economic measurement differ?
   Where are the countries with high GDPs in geographically located?
   Where are the countries with low GDPs in geographically located?
   Where are the countries with the highest HDIs located?
   Where are the countries with the lowest HDIs located?
   What observations can we make from looking at this map about the global dispersion
    of wealth?
   Is there a correlation between states GDP and HDI score? What are the possible
    reasons for this?
   Section B - Short Essay (3-4 pages) (50 marks)
   Referring to the literature below, discuss the strengths and limitations of using the
    human development index to assess countries levels of development.

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