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* What is IPE ;
IPE also known as a global political economy is an acedemic discipline within
the social sciences analysis international relations in combination with political
economy. As an interdisciplinary field it draws on many distinct acedemic
schools most notably political science and economics but also sociology, history
and cultural studies. The acedemic boundaries of IPE are flexible and a long
with acceptable epistemologies (bilgi kuramları) are the subject of robust
(sağlam) debate. This debate is essentially framed (çerçeveli) by the disciplinary
is states as a new and inter disciplinary field of study.
Despite such disagreement most schools can concern that IPE is ultimately
concerned with the ways in which political forces (states, institutions, individual
actions, etc) shape the systems through which economic interaction are
expressed (ifade olunmuş) and controversially the effects that economic
interaction have upon political structure outcomes.
IPE scholars are at the centre of the debate and resources surrounding
globalization both in the popular and acedemic spheres. Other topics that
commands substantial attention among IPE scholars are international trade
development the relationship between democracy and markets, international
finance, global market, multi-state cooperations (MSC) in solving trans-border
economic problems and the structural balance of power between and among
states and institutions.
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- In the apsence of the market, the state or it equivalent would allocate economic
resources this would be the pure world of the political scientist. Although neither
world can ever exist a pure form, the relative influence of the state or the market
changes over time and in different circumstances.
The political economy answers the questions of “how the state and its
associated political processes affect the production and distribution of wealth
and in particular how political decision and interest influence the location of
economic activities and the distribution of the costs and benefits of these
activities. These question also inquire about the effect of markets and economic
forces alter (değiştirmek) the international distribution of power wellfare among
states and other political actors and particularly about how these economic
forces alter the international distribution of political and military power. Neither
state, nor market is primary; the casually relationship are interactive and also
sychological.
State profoundly influences the outcomes of market activities by determining
the nature and distribution of property right as well as the rules governing
economic behaviours.
The market itself is a source of power that influences political outcomes.
Economic dependence establishes a power relationship that is a fundamental
future of the contemporary world economy. In brief, although it is possible to
regard politics and economics as distinct forces creating the modern era they do
not operate independently of one another.
On the one hand, the state is based on the concepts of the territoriality, loyalty
and exclusivity (aykırılık, özellik) and its processes a monopoly of the legitimate
of use of force.
On the other hand, the market is based on the concepts of functional integrate
contractual (sözleşme) relationships and expanding interdependence of buyers
and sellers.
For the state, territorial boundaries are necessary basis of national outonomy
and political unity.
For the market, the elimination of all political and other obstacle to the
operation of the price mechanism is imperative (zorunluluk).
Not: Piyasa ekonomisi için Devlet ve Pazar bir arada olmalı.
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(1) Under what conditions does a highly interdependent world economy
emerge.?
(2) Does it promote harmony or cause conflict among nation-states.? On this
issue theorists of different schools of thought have conflicting views.
Economic develop
- Economic Liberals believe that benefits of an international division of labor
based on the principle of comperative advantages cause markets to arise
spontaneously and foster (güçlendirmek) harmony among states.
- Economic nationalist stres the role of power in the rise of the market and the
conflictual nature of international economic relations; They argue that economic
interdependence must have political foundation.
- Marxists emphasis the role of capitalist imperialism in the creation
(yaratılmış) of a world market economy.
The first question “what are the effects on international political relations
and what problems are associated with structural changes in the global focus of
economic activities, leading economic sector and sycholocical rise of economic
growth.
The second question ; how the political factor effect the nature and
consequences of structural changes in economic affairs.?
1) What are its concequences for the economic development, economic decline
and economic welfare of individual societies.?
2) How does world market economy affected economic development of the less
developed countries and the economic of advanced economies.?
3) What is its effect on domestic welfare.?
4) How does it affect the distribution of wealth and power among national
societies.?
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the organization of the domestic international society? What is the effect of the
market system on issues of war and peace?
These questions are control to discussion of international political economy.
These three ideologies are fundamentaly in their conceptions of the
relationships among society, state and market.
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- Liberal believe that trade and economic interference (girişim) are a sorce of
peacefull relation among nations because the mutual benefits of trade and
expanding interdependence among national economies will tend to foster
(beslemek) cooperative relations.
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according to Marxists no inherit social harmony or return to equilibrium as
liberals believe.
- The second element is a materialist approach to history; the development of
productive forces and economic activities is central to historical change and
operates through the class struggle over distribution of the social product.
- The third is a general view of capitalist development; the capitalist mod of
production and its destiny are governed by a set of “economic laws of motion of
modern society”.
- The fourth is a normative commitment to socialism all Marxists believe that a
socialist society is both a necessary and desirable end of historical development.
- Marxism characterized capitalism as the private ownership of the means of
production and the existence of wage labor. It believes that capitalism is driven
by capitalists starving (aç) for profits and capital accumulation in a competitive
market economy. Labor has been dispossessed and has become a commodity
(emtia) that is subject to the price mechanism. In Marx’s view these two key
characteristic of capitalism are responsible for its dynamic nature and make it
the most productive economic mechanism.
- The orgin evolution of the capitalist mod of production are according to Marx
governed by three in evitable economic laws.
1) The first law, the law of disproportionality which holds that supply create its
own demand so that supply and demand will allways be accept for brief
movemet, in balance.
- Marx denied that this tendency toward equilibrium existed and argued that
capitalist economies tend to overproduction particular type of goods. Constantly
require disproportionality between production and consumption due to the
“anarchy” of the market causes periodic depression and economic fluctuation
(dalgalanma). He predicted that these requiring economic crisis would become
increasingly severe (şiddetli) and in time would impel (zorlamak, itmek) the
suffering prolateria to rebell against the system.
2) The second law propelling (itici) the development of a capitalist system,
according to Marxism is the law of the accumulation of capital. The motive
force of capitalism is the drive of profits and the consequent necessity for the
individual capitalist to accumulate (biriktirmek) and invest. Competition forces
the capitalists to increase their efficiency and capital investment. As a result the
evolution of capitalism is toward increasing consentration of wealth in the hands
of the efficient few. Proletariat, the reserve army of the unemployed increases
labor wages decline and the capitalist society becomes ripe (olgun) for social
revolution.
3) The third law of capitalism is that of the falling rate of profit. As capital
accumulates and becomes more abundant (bol), the rate of return declines,
thereby decreasing the incentive to invest. For Marx, as the pressure of
competition forces capitalists to increase efficiency and productivity through
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investment in new labor-saving and more productive technology, the level of
unemployment will increase and the rate of profit or surplus value will decrease.
Capitalists will thereby lose their incentive to invest in productive ventures
(girişim) and to create employment. This will result in economic stagnation
(durgunluk), increasing unemployment. In time the even increasing intensity and
depth of the business cycle will cause the workers to rebell and destroy the
capitalist economic system.
- The core of the Marxist critique of capitalism is that although the individual
capitalist is rational, the capitalist system itself is irrational. The competitive
market necessitates (gerekliliği) that the individual capitalist must save invest
and accumulate. “If the desire for profit is the fuel of capitalism, then investment
is the motor and accumulation is the result”. But finally this accumulating
capital of individual capitalist leads to the periodic overproduction of goods
surplus capital and the disappearence (kaybolma) of investment incentives.
Thus, the inherit contradiction (çelişki) of capitalism is that with capital
accumulation, capitalism forces the needs of its own destruction (imha) and is
replaced by the socialist economic system.
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Although these theories contradict one another in a number of particulars, they
can also be considered complementary in other ways and together they provide
important inough to into the reasons for the dynamics and functioning of the
international political economy.
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* The Theory of Economic Stability;
According to this theory as set for initialy by Charles Kindleberger an open
and liberal world economy requires the existence of a hegemonic or dominant
power. It argues that a particular type of international economic order could not
florish end reach its full development other than in the presence of such a
hegemonic power.
Hegomany liberal ideology and common interest must exist for the emergence
end expansion of the liberal market system.
Historically the conjoncture the circumstances favourable to hegemonic
leadership and the emerge of a liberal world economy has occured only twice.
1) The first was the era of the Pax Britanica that extended from the ended of the
Napoleonic Wars to the outbreact of the First World War, with the political
triumph (zafer) of the middle class, comitted to the ideology liberalism, Great
Britain use its influence to when in the age of free trade. The example of
Britania economic success, the general acceptence of liberal ideals among the
major economic powers and the recongnized benefits of trade encourage states
to negotiate tarif reduction and to open their borders to the world markets.
Similarly, the US took the lead in promoting a liberal international economic
order following the Second World War. The general agreement on tarif and trade
GATT and International Monetary Fond (IMF) embodying (somutlaşan) liberal
principles were established by the US states and its alliances. American
leadership was exercised subsequently in the reduction of trade barriers. During
the these eras of British and American permanence the international market and
global economic interdependence expanded.
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He maintaned that the modern world system is a unit with a single division of
labor and multiple cultural systems period. The world is a structural whole and
is appropriate unit and level of analysis. Modern world system must be
understood as “system” in which all the various parts of the structure are
functionally and necessarily related. A system that sperate in accordance (uygun)
with a set of economic laws.
The world economy is an international division of labor and is responsible for
the accumulation of capital in the advanced capitalist states and for the cycle of
backwardness (geri kalmışlık) and underdevelopment in the rest.
The major components in this international division of labor are three
hiearchically ordered two of states: the core, the semiphery, and the
periphery.
The “core” states tend to specialize in manufactoring, the periphery is
related to the production raw metarials and the semiperiphery is somewhere in
between these structural features of modern capitalism, it is argued have
remained essentially unchanged over centuries. (Paul Baran ).
The most important feature said to characterized this modern world system is
that, functioning as an integrated whole, it extract (çıkarmak) economic surplus
and transfer wealth from the dependent periphery to imperial centers. The
components of the system, their relation to one another and their internal social
and other characteristics are determined by the overall system.
In summary, according to Wallerstein, the modern system put into place by
Western capitalism in the 16th and 17th centuries has not been altered
(değişmiş) in its essentials over the centuries. It is a system that tends to
reproduce itself as the rich get richer and the poor get poorer. Over the long
term, however, it cannot escape the inevitable laws of demise (ölüm, yok olmak)
of capitalist mode of production set for by Marxist theory. This conception of
the world economy has profoundly influenced many less developed countries
and their demands for a New International Economic Order.
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