Global Political Economy: Understanding the International Economic Order
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This book is the eagerly awaited successor to Robert Gilpin's 1987 The Political Economy of International Relations, the classic statement of the field of international political economy that continues to command the attention of students, researchers, and policymakers. The world economy and political system have changed dramatically since the 1987 book was published. The end of the Cold War has unleashed new economic and political forces, and new regionalisms have emerged. Computing power is increasingly an impetus to the world economy, and technological developments have changed and are changing almost every aspect of contemporary economic affairs. Gilpin's Global Political Economy considers each of these developments. Reflecting a lifetime of scholarship, it offers a masterful survey of the approaches that have been used to understand international economic relations and the problems faced in the new economy.
Gilpin focuses on the powerful economic, political, and technological forces that have transformed the world. He gives particular attention to economic globalization, its real and alleged implications for economic affairs, and the degree to which its nature, extent, and significance have been exaggerated and misunderstood. Moreover, he demonstrates that national policies and domestic economies remain the most critical determinants of economic affairs. The book also stresses the importance of economic regionalism, multinational corporations, and financial upheavals.
Gilpin integrates economic and political analysis in his discussion of "global political economy." He employs the conventional theory of international trade, insights from the theory of industrial organization, and endogenous growth theory. In addition, ideas from political science, history, and other disciplines are employed to enrich understanding of the new international economic order. This wide-ranging book is destined to become a landmark in the field.
ideas, Morgenthau warned that it was dangerously unwise to place one’s faith solely in the power of ideals.14 In this book I deﬁne “global political economy” as the interaction of the market and such powerful actors as states, multinational ﬁrms, 12 An important critique of the realist emphasis on anarchy is Alexander Wendt, “Anarchy Is What States Make of It: The Social Construction of Power Politics,” International Politics 46, no. 2 (spring 1992): 391–425. 13 On the role of ideas or “epistemic
advantage. Moreover, analysis of gross trade statistics showed that, although intraregional trade in Paciﬁc Asia was growing, it was growing less rapidly than trade between Paciﬁc Asia and the rest of the world. Thus, economists found no 16 Jeffrey A. Frankel and Miles Kahler, eds., Regionalism and Rivalry: Japan and the United States in Pacific Asia (Chicago: University of Chicago Press, 1993). 32 THE NATURE OF POLITICAL ECONOMY evidence either for the existence of a distinctive Paciﬁc Asian
technical knowledge cannot easily be monopolized. Every ﬁrm 19 Geza Feketskuty, International Trade in Services: An Overview and Blueprint for Negotiations (Cambridge, Mass.: An American Enterprise Institute/Ballinger Publication, 1988). 138 SIGNIFICANCE OF NEW THEORIES regardless of its size, nationality, or other features is believed to have an equal opportunity to appropriate and exploit the fruits of scientiﬁc and technical advance around the world. Thus, when a ﬁrm makes an investment
whether Japan would have been more or less successful without government intervention.24 Certainly, as critics charge, MITI made many mistakes and wasted resources. Yet several comments can be made in support of Japan’s industrial policy. The government’s support and protection of private ﬁrms in favored industrial sectors has been central to Japan’s industrial policy. MITI and other Japanese economic bureaucracies’ supportive policies were very important in enabling Japanese ﬁrms to close the
affairs and their sober expectations regarding human possibilities, they were by no means nationalists. The realist diagnosing the illnesses of the human condition is not endorsing what he or she sees any more than a physician endorses the cancer found in a patient. Morgenthau’s writings, in fact, attacked unbridled nationalism and, in Politics Among Nations (1972), he set forth rules for diplomatic behavior that could assist nations to live in peace with one another at the same time that they