How has the international political economy changed over time?

How has the international political economy changed over time?

In essence, the focus of the International Political Economy (IPE) is on issues that arise from or are impacted by the relationship of international politics, international economics, as well as social systems, and societal groups. It inquires into a set of associated questions, which emerges from issues such as international trade, international finance, the effects of economic globalization, among others. Over the years, IPE has seen massive changes to become what it is today. World Peace, as well as technological advancement, has played a significant role in shaping the IPE. IPE forms the basis on the works of Adam Smith, who thought that human beings are rational and self-centered (Norrlof, 2017). In this sense, the idea of neglecting mercantilism and adopting a free market with limited government involvement was adopted.

Modern IPE, during the era of the Cold War, appeared to be a subfield of internal relations. Its analysis was based mainly on internal security. Later on, it came to include economic security as well as the role of market actors. Examples of these market actors include international organizations,  international banks, and multinational corporations. IPE grew in significance as a result of different substantial international economic events. Examples of such events, as noted by Norrlof (2017), include the oil crisis and collapse of the Bretton Woods international monetary system.

The contemporary IPE is now based on the concepts of a liberal economy. According to the liberal economy is the idea that countries differ in their resource endowments. In this regard, to maximize worldwide wealth, states must engage in international trade. IPE, according to Norrlof (2017), now focuses on open markets, free trade, free flow of goods and services. From this, the Bretton Woods institutions, the GATT, the World Bank as well as IMF have been developed to support open markets, free trade, and free flow of goods and services. Apart from strengthening trade relations, modern IPE is focused on providing solutions on problems related to equity, justice, as well as fairness. This aspect has led many developing countries to relax or eliminate worker-protection laws and environmental standards.

In what ways does the international economy characterize international organizations and nongovernmental organizations?

Through the impacts of the globalization of communication, transportation, and trade, the world is increasingly becoming interconnected. The collapse of communism has seen the number of countries to increase. As a result, there has been an explosion in the number of international organizations and non-government organizations. International organizations and non-governmental organizations link people across global borders in different ways. The number one way is through trade and occupation. Non-governmental organizations, as noted by Berg (2019), focuses on a wide range of issues that characterizes the international economy. They are recorded to include human rights issue, humanitarian aid, economic development as well as social welfare. In this sense, one way through which Non-governmental organizations are Characterized by the international economy is that they engage in seeking to influence international actors for social, economic, and political change. The other way the international economy characterizes non-governmental organizations is by enabling them to serve as watchdogs for monitoring others for actions that violate international law (Berg, 2019). For example, violations of human rights and war crimes.

International Organizations, on the other hand, contribute to habits of cooperation in the international economy. In this regard, it is through them that countries become socialized to regular relationships. Another way the international economy characterizes international organizations is by establishing regularized procedures of information collecting, analysis, as well as surveillance (Cooley, 2015). An international organization like WTO, for example, establishes processes for making rules, settling disputes, and punishing countries who fail to follow the rules. Others are important in conducting operational activities that AIDS in resolving major substantive problems.