Conceptions:

Power: the ability to influence others. Influence: the ability to make others do things in a way that is
advantageous to you
Six principles of political realism:

- Governed by objective laws based on human nature
- Interest defined in terms of power. Avoid two common fallacies: motives and ideology.
Differentiate the desirable and the possible
- The kind of interest pursued depends on time and circumstances
- Universal moral principles also depend
Eg: must not make sacrifices for idea like liberty in the price of national interest. Action is judged
by consequences
- No identification between national moral aspiration and universal

Anarchy and the Struggle for Power (Great Power Politics)
- Ideal situation for great power: be the only regional hegemon
- World order: cynic. At any time is a consequence of great power competition

POLITICAL ECONOMY:

Nature of political economy:
- Liberalism:
Separation between economic and political activities.
Harmony between nations
Creation of wealth primary activity, ought to determine political order
Toward equilibrium

- Marxism:
Basic structure: economic relations determine sociopolitical structure
Class conflict
Economics determines politics
State represents the will of dominant class
Dynamics toward disequilibrium

- Mercantilism:
Politics determines economic organization
National security
Industrial development
+ Balance of trade: positive

Example: Zollverein customs union:
- Liberalism viewpoint: sth desirable to maximize international trade
- Marxism: an inevitable necessity, reflecting the change of economic relations after the Industrial
Revolution. Put an end to feudalism and the city-state. Triumph of industrialism over feudalism
- Mercantilist: Prussia wanted to increase influence on German states. Indication: Austria was
unwelcomed to the union
Pareto optimum: everyone gains, regardless of the level of gain. No attention to distribution of gain
Gilpins perspective:
- Determinants of non-state actors are the configurations of power among nation-states
- National interest: what the elites determine to be, but comprehends more than that. More
general influences such as national security of state itself: geo,tech, power
- An interdependent international economy serves the interest of nation-states. However,
incentive for states to gain at the expense of others is still alive and well
A role is required for an international power to manage and stabilize the system

- Modern economy has evolved thru the emergence of national economies that become
dominant
- Every economic system relies on a political order
18
th
century: British order managed free trade and liberal intl economy. Towards the end, the
rise of nations like Germany Japan US led to the erosion of British order




Hegemony in international political economy:
- Hegemonic stability theory: Order under a dominant power
Maintenance of order requires continued hegemony
- Hegemony: Preponderance of material resources
Raw materials
Capital
Market
Competitive advantage in producing high value goods
Basic crude force theory: Who is so will lead the intl economy

Divergence in world economy
- The problem of intl freedom of movement
Problem of capital flow from developed to developing
Thoughts: Capital will move to those countries which are available, ready (comparative competitive
advantage)
Liberalization of capital markets in developing countries: easier for foreign firms to
take over

Blueprint for development: High domestic-saving rates, domestic credit availability

Pros and Cons of Globalization
- World integration diverts resources away from national development (edu, health, industry,
social cohesion)