Aspects of International Relations: International Political Economy

LSE
13 Nov 201507:28
EducationalLearning
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TLDRThe transcript delves into the multifaceted field of International Political Economy (IPE), highlighting its focus on the interplay between markets and politics. It emphasizes the importance of understanding both economic and political factors in shaping international relations and global issues like financial crises, trade, investment, and climate change. The speaker underscores the value of IPE in providing a holistic perspective, enabling a comprehensive analysis of policy areas and the forces driving them. The discussion also touches on the academic appeal of IPE, its relevance in the face of recurring economic crises, and the program at the London School of Economics, which offers a broad understanding of the international economy and prepares participants for diverse career paths.

Takeaways
  • 🌐 The traditional definition of International Political Economy (IPE) is the interaction of markets and politics, focusing on the influence of markets on politics and vice versa.
  • 🌍 IPE is essential for understanding the world in a globalized context, where economics and politics are intertwined and cannot be studied in isolation.
  • 💼 The core of IPE is international finance, which is pivotal for understanding events like the 2008 financial crisis and its aftermath.
  • 🛑 IPE also delves into international trade and investment, exploring the factors that drive globalization and shape the flow of trade and investment.
  • 🌳 The field includes the political economy of the environment, examining the barriers to reaching genuine agreements on climate change.
  • 🤝 IPE integrates power dynamics and political institutions into economic analysis, offering a more holistic view than traditional economics or international relations alone.
  • 🔄 The relationship between security and political economy is significant, with economic policies often used to achieve security goals, such as through economic sanctions.
  • 🏛 Historically, the study of IPE has been challenged by the simplification and bias in public debate, which IPE aims to provide a more objective analysis for.
  • 📚 The Master's in International Political Economy at the London School of Economics and Political Science (LSE) offers a broad understanding of the international economy and equips participants with analytical tools.
  • 🎓 Graduates of the LSE program are well-prepared for careers in government, the private sector, and international organizations.
  • 🔮 Post-Cold War, there is a renewed recognition in IPE that many previously accepted economic and political theories are no longer valid, opening up opportunities for new research and understanding.
  • 🚀 The field of IPE is dynamic and constantly evolving, offering academics a chance to contribute to the development of new theories and practices in response to ongoing global challenges.
Q & A

  • What is the traditional definition of International Political Economy (IPE) as mentioned in the script?

    -The traditional definition of International Political Economy (IPE) is the interaction of markets and politics, examining the influence of markets on politics and vice versa.

  • Why is it problematic to focus solely on economic or political factors in understanding global issues?

    -Focusing solely on economic or political factors is problematic because it neglects the intertwined nature of international economics and politics, leading to an incomplete understanding of complex global issues such as financial crises and climate change.

  • What are some areas that IPE encompasses according to the script?

    -IPE encompasses areas such as international finance, international trade and investment, and the political economy of the environment, including factors that drive globalization and shape policy areas.

  • How does the script describe the relationship between power dynamics and economic forces?

    -The script describes power dynamics as a factor that traditional economic approaches often neglect. It suggests that power dynamics, including political institutions and international relations, significantly influence economic outcomes.

  • What is the role of International Political Economy in analyzing security and foreign economic policy?

    -IPE plays a role in analyzing how security and foreign economic policy are interconnected, such as the use of economic sanctions for security goals or the formation of alliances that can influence trade and investment.

  • Why might the field of IPE be considered to have high opportunity costs for academics?

    -The field of IPE may have high opportunity costs for academics because they could potentially earn more and have better working conditions in other fields, but they choose to stay due to their passion for understanding and improving the world through IPE.

  • How does the script suggest IPE can provide an objective assessment of economic and societal issues?

    -The script suggests that IPE can provide an objective assessment by analyzing and evaluating the broader cost-benefits for the economy and society as a whole, beyond the simplifications or biases presented in public debates.

  • What is the significance of the Masters in International Political Economy program at the LSE mentioned in the script?

    -The Masters in International Political Economy program at the LSE is significant as it was one of the first established in the UK and internationally, offering a broad understanding of the international economy and tools for policy area analysis.

  • How has the perception of economic stability changed since the 1990s according to the script?

    -The perception of economic stability has changed significantly since the 1990s, with repeated financial and debt crises challenging the idea of a 'great normalization' and highlighting the need for new tools and techniques in economic policy.

  • What does the script imply about the current state of understanding in IPE?

    -The script implies that the current state of understanding in IPE is in a state of flux, with many previously accepted maxims and techniques not working as expected, creating both challenges and opportunities for academics in the field.

  • How does the script connect the study of IPE to current headlines and global events?

    -The script connects the study of IPE to current headlines and global events by suggesting that having an IPE perspective can provide a deeper understanding of these events, as they often involve a mixture of economic and political factors.

Outlines
00:00
🌐 The Interplay of Economics and Politics in IP

The first paragraph introduces the concept of International Political Economy (IP) as the intersection of markets and politics, emphasizing its importance in understanding global dynamics. It highlights the limitations of studying economics or politics in isolation and points out that IP encompasses international finance, trade, investment, and environmental issues. The speaker illustrates how power dynamics and political institutions influence economic relations and vice versa. The paragraph also touches on the relevance of IP in security and foreign economic policy, using economic sanctions and alliances as examples. The speaker argues that IP provides a more nuanced understanding of current events and policy debates, offering a broader perspective than traditional approaches.

05:00
📚 The Value and Evolution of IP Education

The second paragraph discusses the benefits of the Masters in International Political Economy program at the London School of Economics and Political Science (LSE). It offers a comprehensive understanding of the international economy, equipping participants with analytical tools to examine policy areas and the underlying forces shaping them. The program is appreciated by both public and private sectors, with graduates finding roles in government, private industry, and international organizations. The speaker reflects on the post-Cold War era's debates and the subsequent financial crises, suggesting that traditional economic and political theories are being challenged. This presents both a challenge and an opportunity for academics in the field, as it opens up new avenues for research and understanding in IP.

Mindmap
Keywords
💡International Political Economy (IPE)
International Political Economy (IPE) is an interdisciplinary field that studies the interaction between economics and politics on a global scale. It is central to the video's theme, as it explores how economic forces and political decisions influence each other in shaping international relations. The script mentions IPE in the context of understanding the world beyond just economic or political forces, highlighting its importance in a globalized world.
💡Markets and Politics
The terms 'markets' and 'politics' are key to understanding the video's discussion on how economic and political factors are interwoven. Markets refer to the various economic systems where goods and services are exchanged, while politics involves decisions made by governments and other authorities. The script discusses the influence of markets on politics and vice versa, emphasizing the need to consider both when analyzing international relations.
💡Globalization
Globalization is the process of increased interconnectedness and interdependence among countries. It is a key concept in the video, as it frames the discussion on how international trade, finance, and environmental issues are shaped by a mixture of economic and political factors. The script points out that globalization is driven by factors such as international trade and investment, which are central to the study of IPE.
💡Financial Crisis of 2008
The Financial Crisis of 2008 is a significant historical event that the video uses to illustrate the consequences of the interaction between international finance and politics. It serves as an example of how the study of IPE can provide insights into the causes and implications of major economic events, and how they can affect policy and market dynamics.
💡International Trade and Investment
International trade and investment are economic activities that involve the exchange of goods, services, and capital across borders. The video discusses these as drivers of globalization and as areas of study within IPE. They are important because they shape the flow of trade and investment, which in turn influences economic development and political strategies.
💡Climate Change Agreement
A climate change agreement refers to international treaties or accords aimed at addressing global warming. The video mentions the impediments to reaching a genuine agreement on climate change as an example of how IPE examines environmental issues that are influenced by both economic and political factors.
💡Power Dynamics
Power dynamics refers to the distribution of power and influence among various actors in international relations. The video discusses how traditional economic studies may neglect the role of power in shaping market outcomes, while IPE takes into account both power dynamics and political institutions in its analysis.
💡International Institutions
International institutions are organizations that operate across national borders to coordinate actions and policies among countries. The script mentions these institutions as part of the broader context in which IPE operates, emphasizing their role in shaping international economic relations and policy outcomes.
💡Economic Sanctions
Economic sanctions are measures imposed by one country or group of countries against another to coerce certain behaviors or policies. The video uses economic sanctions as an example of how political economy can be used to achieve security goals, illustrating the intersection of politics and economics in international affairs.
💡Imperialism
Imperialism is the policy or practice of extending a nation's power and influence through colonization, use of military force, or other means. The video discusses how alliances and economic relationships can sometimes take the form of imperialism, showing the complex interplay between economic opportunities and political dominance.
💡Opportunity Costs
Opportunity costs refer to the potential benefits an individual or organization forgoes when choosing one alternative over another. The video mentions the high opportunity costs of working in the field of IPE as an academic, suggesting that scholars in this field are passionate about their work despite potentially more lucrative opportunities in other fields.
💡Masters in International Political Economy
The Masters in International Political Economy is an academic program that provides a comprehensive understanding of the international economy. The video discusses the benefits of such a program, including the broad overview it offers and the analytical tools it equips participants with to understand and assess policy areas within the context of IPE.
💡End of History
The 'end of history' is a concept discussed by scholars like Francis Fukuyama, suggesting that the liberal democratic model had triumphed and there would be no major ideological conflicts. The video contrasts this idea with the ongoing financial and debt crises, indicating that IPE offers a more nuanced understanding of the complexities and challenges in the post-Cold War era.
Highlights

Traditional definition of IP involves the interaction of markets and politics, considering the influence of both on each other.

Economics often neglects political factors that shape international economic relations, while international relations tends to overlook international economics.

Core of IP is international money/finance, including causes and consequences of financial crises like the 2008 crisis.

Areas of IP include international trade and investment, driving globalization, and factors shaping trade and investment flows.

International political economy of the environment examines barriers to genuine climate change agreements.

IP combines economics and politics, addressing power dynamics and political institutions that traditional approaches may exclude.

IP has overlap with IR, especially in the relationship between security and political economy/foreign economic policy.

Economic sanctions and military aggression are examples of using political economy for security goals.

Creating alliances can involve both cooperative opportunities and potential for dominating through economic means.

Politics plays a key role in economic events like the persistence of the Greek Eurozone crisis.

IP can provide objective analysis and assessment of broader economic and societal impacts beyond government or interest group narratives.

High opportunity costs for academics in IP, but passion drives them to improve year after year.

IP proves its worth studying as economic and political events continually unfold, providing new insights.

LSE's Masters in International Political Economy was one of the first established in the UK and internationally.

The program offers a broad understanding of the international economy and tools to analyze policy areas and shaping forces.

Graduates go on to work in government, private sector, and international organizations, valued for their IP perspective.

After the Cold War, debates on the end of history and great normalization were challenged by repeated financial crises.

IP recognizes that old tools and techniques are not working as expected, opening room for new academic synthesis.

The field of IP is both challenging and exciting, as it continually evolves with real-world events and anomalies.

Transcripts

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Related Tags
International PoliticsEconomic ForcesGlobalizationFinancial CrisisTrade & InvestmentClimate ChangePower DynamicsInternational RelationsEconomic SanctionsGlobal EconomyPolicy Analysis