international development under the light of realism and liberalism

international development under the light of realism and liberalism

International relations is a discipline concerned with the function of global systems that are facilitated through the diplomatic relationships established between various nations. The nature of the relationships between different countries is essential in determining the partnerships between individual nations and, consequently, the level of international development in the global context. Realism is an international relations theory that views different countries as being in pursuit of power and is said to thrive when they succeed in acquiring great power. On the other hand, liberalism is an international relations theory that views the interaction between various nations to be capable of facilitating productive peace partnerships among countries. This article will discuss international development under the light of realism and liberalism. Subsequently, the sections that follow will illustrate international development is partially facilitated by the self-interest of individual nations as propagated by realism and also strategic partnerships, as suggested by liberalism.

Argument 1: Outsourcing Product Manufacture to Developing Nations (450)

The first argument that will be used in the assessment of international relations theory in international development is the issue of outsourcing manufacturing to other countries. In the modern period, it is not uncommon for multinational businesses to outsource or relocate their manufacturing operations to different geographical locations to foster efficiency in commodity manufacturing (Norwich University, 2017). Using realism, outsourcing one’s manufacture to developing countries where firms can benefit from various production merits such as low labor cost and proximity to raw materials can be perceived as a pursuit of self-interest. Consequently, multinational firms from western nations can attain a competitive edge by minimizing their cost of production when they outsource commodity production in developing nations. This is because manufacturing products in the developed nation can be more costly than outsourcing production activities in developing nations.

Analyzing the same occurrence under the lens of liberalism, outsourcing production activities to developing nations can be viewed by a strategic partnership between the multinational’s host government and the foreign country where production will be relocated. The first factor that facilitates the outsourcing of a firm’s operations in a foreign nation is the international trade policy employed by the multinational’s host nation. The international trade policy formulated by a government employs the trade agreements between a nation and foreign countries that trade with it (Norwich University, 2017). For instance, in the recent period, developed nations have been engaging in trading agreements with developing nations that have been lowering cross-border trade regulations. Consequently, relaxing economic rules between countries has increased the economic dependency between developed nations and developing nations (McGlinchey.et al., 2017). For instance, the economic benefits of outsourcing manufacturing to developing nations has increased the flow of foreign investment into developing nations, which in turn, has led to increase employment levels and the GDP of the host nation. On the other hand, multinationals lower their cost of production, which establishes its competitive edge in the market. Subsequently, both the developed country and the developing nation benefit significantly from the strategic partnership between the two nations where trade is concerned.

Argument 2: Trade-Related Intellectual Property Rights (TRIPS)

Another crucial aspect of international development is the enhancement of the health of the global population. Fostering the health of the worldwide community is critically impacted by the access of communities to products of the scientific advancement in pharmaceuticals. However, the wellbeing of global populations where it concerns access to improvements in pharmaceutical products is subject to the profit motive of individual pharmaceutical entities that produce medications that foster the prosperity of populations. The international relations theory of realism is depicted in the development and protection of intellectual property rights (IPR) of pharmaceutical products (Kojo, 2018). The different products developed by pharmaceuticals in developed nations are essential is addressing many social problems that manifest in developing nations that concern the subject. For instance, medications developed by pharmaceuticals in developed nations for purposes of solving health problems experienced by broad populations in developing countries such as the HIV/AIDS epidemic may be protected by intellectual property rights.

Consequently, pharmaceutical entities in developing nations cannot develop generic products that attain a similar purpose as the pharmaceuticals developed due to the intellectual property rights of the original developers of the medications (Kojo, 2018). Subsequently, it isn’t very easy for populations in developing nations to access essential medicines developed by pharmaceuticals in developed nations due to the high costs that they may require and high costs, which may be challenging for third-world nation populations to attain them. The prioritizations of multinational pharmaceutical company profits as opposed to the social welfare of people in developing nations indicate the application of realism in the real-life context.

On the other hand, liberalism in the context of pharmaceuticals is seen through the application of the Doha declaration that acknowledges the role of pharmaceutical products in developing countries. The Doha declaration gives medicines in developing nations to produce generic versions of pharmaceutical products protected by TRIPS after a given period, even if the said pharmaceuticals do not approve it (Kojo, 2018). Consequently, populations in developing nations can access pharmaceutical products that are critical to the wellbeing of the public through the generic products developed based on the medications produced by multinationals in developing nations that are protected by IRP. Therefore, the Doha declaration is proof of liberalism at work since it considers the social wellbeing of populations in developing countries even after the individual multinationals are against the exploitation of technology protected by IRP in medication production (Kojo, 2018). An excellent example is the introduction of antiretroviral drugs that were developed to address the significant prevalence of the HIV/AIDS epidemic in African and Asian nations that were versions of pharmaceutical products produced by multinational organizations in the pharmaceutical companies in developed nations.

Argument 3: National Economic Growth

Besides, the pursuit of each nation to maximize its economic growth and development is another aspect that indicated the relevance of the realism theory in the present period. Each nation’s self-interest is also observed by how each nation uses the appropriate tools to manage its economy, such as fiscal and monetary tools (Ozkan, 2012). For instance, the US dollar has been a dominant currency in the foreign exchange market. Moreover, the economic system employed in the US had led to the nation becoming a developed nation that had advanced economically more than most of the countries. However, in the present period, the Chinese economy had advanced and overshadowed the US economy over time due to its aggressive economic policies.

On the other hand, economic policies and nations can indicate liberalism when an individual analyzes the multiple collaborative aspects between different nations. For instance, even though various countries have different currencies, the creation of the foreign exchange market facilitates currency exchange and also trade. Subsequently, nations can trade with each other since the foreign exchange market has already facilitated the conversion of currency (Ozkan, 2012). Moreover, liberalism is also exhibited in the many trade agreement made between nations to enhance global trade between different nations. Also, the interdependency shown between nations to attain a specific raw material or resource from a foreign nation suggests that international relations are significantly influenced by liberalism.

Argument 4: Free Trade

Another critical aspect of international development is the establishment of trade partnerships and ventures between nations. Realism is depicted when multinational firms from developed nations establish operations in foreign nations to expand the market for their products. Corporate organizations in developed countries are likely to create procedures in other nations both in western nations and developing nations (Ozkan, 2012). Various approaches may be used by firms to venture into new markets in foreign countries. They include manufacturing their products in foreign countries, partnering with local firms, trademarking, and franchising, to mention a few. By venturing in new markets in foreign nation economies, firms increase their customer base, sales, and, consequently, their profits. By facilitating the entry and operations of local firms in new markets, governments usually make it possible for firms to maximize their profits, thus, increasing the amount of taxes imposed on the said firms.

Moreover, by supporting local business organizations, governments usually increase employment opportunities. For instance, China is one of the nations where many western firms outsource the production of their commodities. Subsequently, the Chinese government formulates economic and foreign trade policies that support its industries, which in turn, maximizes the nation’s exports.

On the other hand, liberalism is depicted when free trade policies formulated and implemented by organizations make it possible for nations to attain commercial products from foreign nations that can produce them more efficiently (Ozkan, 2012). Moreover, developed nations can establish laws for their multinationals to follow when venturing their operations into foreign countries.

Conclusion (180)

The above sections have discussed the aspects that illustrate realism and liberalism theories in the current period’s international relations. The first aspect that can indicate the use of realism in international relations is that of firms outsourcing manufacturing to other countries. The above action is considered to be inspired by self-interest since firms that carry it out are usually trying to attain efficiency by accessing an economic advantage that they did not have at home. On the other hand, outsourcing manufacturing can be perceived as liberalism since it involves the creation of strategic partnerships between nations and the business organizations operating within their economy. The second aspect that indicates both realism and liberalism is the trade-related intellectual property rights (TRIPS). TRIPS are seen as an aspect of realism since the development and trading of essential commodities such as medications are conducted concerning the profit motive of the producer. Consequently, it is difficult for populations in developing nations to accept critical social such as medicine due to trips. On the other hand, liberalism is depicted by the Doha declaration that warrants the production of generic medication versions for populations in developing nations after a particular b\period, even if the companies that produced the original version have not consented the manufacture of the generics. Besides, realism is also seen in each nation’s pursuit of economic growth and development. Subsequently, each nation uses its financial regulation tools to maximize the wellbeing of its economy. Contrarily, liberalism is also observed by the multiple collaborative aspects of different nations. For instance, even though various countries have different currencies, the creation of the foreign exchange market facilitates currency exchange and also trade.