Global political economy
Global political economy is an interdisciplinary field of study which examines the intersection between politics and economics. It seeks to explain how political forces shape economic decisions and outcomes, and how economic forces shape political decisions and outcomes. It studies the institutions, interactions, and policies that shape economic and political outcomes and their implications for individuals, organizations, and societies. It looks at how global economic relationships and dynamics interact with domestic politics and policies, as well as how changes in the global political and economic environment can impact domestic and international markets.
Examples of global political economy
- The North American Free Trade Agreement (NAFTA) is a global political economy example that has had a profound effect on the economies of the United States, Canada, and Mexico. It was enacted in 1994, and it removed many tariffs and other trade barriers between the three countries. As a result, it has increased trade between the three countries, leading to increased economic growth, investment, and job creation.
- The European Union (EU) is another example of a global political economy. The EU is an economic and political union of 28 European countries that allows for the free movement of goods, services, capital, and people within the European Union. The formation of the EU has had a major impact on the European economy, leading to increased economic growth and investment, as well as improved standards of living across the region.
- The Trans-Pacific Partnership (TPP) is a global political economy example that was negotiated between 12 Pacific Rim countries, including the United States, Japan, and other countries in the Asia-Pacific region. The TPP seeks to reduce tariffs and other trade barriers between the participating countries, leading to increased trade and investment, as well as improved standards of living.
- Global climate change is also an example of a global political economy. Climate change is caused by greenhouse gas emissions that are produced by human activities, such as burning fossil fuels. As a result, global temperatures are rising, which is leading to a variety of environmental and economic effects, including extreme weather events, sea level rise, and increased economic losses. As a result, global climate change is having a major impact on the global political economy, with countries around the world taking actions to reduce their emissions in an effort to combat climate change.
When to use global political economy
Global political economy is an interdisciplinary field of study which examines the intersection between politics and economics and seeks to explain how political forces shape economic decisions and outcomes, and how economic forces shape political decisions and outcomes. As such, it has a wide range of applications, and can be used to analyze and understand:
- International trade and investment flows;
- Global economic inequality and poverty;
- The role of multinational corporations in global markets;
- The impact of global financial markets on domestic economies;
- The influence of international institutions and agreements;
- The dynamics of international currency markets;
- The geopolitics of natural resources;
- The global environmental crisis;
- The role of technology in global economic processes;
- The implications of global shifts in political power;
- The relationship between global economic and military power;
- The dynamics of global migration and labor markets;
- The role of culture in international economic relations.
Types of global political economy
Global political economy is an interdisciplinary field of study which examines the intersection between politics and economics. There are several different types of global political economy, including:
- Neoliberalism - This is a market-based approach to global economic policy which emphasizes the role of the private sector and the need for economic liberalization, deregulation, and privatization. It also advocates for decreased government intervention, such as taxes and subsidies, and more market-friendly policies, such as free trade.
- Mercantilism - This is an economic practice which seeks to maximize exports, control imports, and accumulate wealth through trade. It is based on the belief that a nation’s wealth is determined by its holdings of gold and silver, and thus seeks to accumulate as much of these resources as possible.
- Keynesianism - This is an economic theory which advocates for government intervention in the economy, such as spending and taxation, in order to increase demand and promote economic growth. It is based on the idea that the government can act as a stabilizing force in the economy by managing the business cycle and ensuring the flow of money and resources through the system.
- Marxism - This is an economic and political theory which emphasizes the role of class struggle and labor in driving economic and political change. It advocates for the abolition of private property and capitalism, and the establishment of a socialist system of production and distribution.
- Protectionism - This is an economic policy which seeks to protect a nation’s domestic industries and markets from foreign competition by imposing tariffs, quotas, and other restrictive measures. It is based on the idea that protecting domestic industries can help to increase employment and wages, as well as provide a stable source of tax revenue for the government.
Limitations of global political economy
Global political economy is a complex and multifaceted field of study that has provided valuable insights into how political and economic forces interact. However, there are several limitations to this approach that should be taken into consideration. These include:
- A tendency to oversimplify complex economic and political dynamics. Global political economy often tries to reduce the complexity of global economic and political systems to a few simple models, which can lead to a lack of nuance in understanding the full range of economic and political interactions.
- A tendency to overlook the effects of culture and history on economic and political outcomes. Global political economy often ignores the role of culture and history in shaping economic and political decisions and outcomes.
- An overemphasis on states and governments. Global political economy tends to focus on the role of states and governments in shaping economic and political outcomes, ignoring the role of non-state actors such as multinational corporations, international organizations, and civil society.
- A lack of consideration for environmental and social factors. Global political economy typically overlooks the role of environmental and social factors in shaping economic and political outcomes.
- A lack of attention to the role of individuals. Global political economy often overlooks the role of individual behavior in shaping economic and political outcomes.
Global political economy is an interdisciplinary field of study which examines the intersection between politics and economics. Other related approaches include:
- International Political Economy (IPE): This field of study looks at how the global economy and international politics interact and influence each other. It examines the political and economic forces that shape international relations, such as global economic inequality and the power dynamics between states.
- Comparative Political Economy (CPE): This approach focuses on how the economic and political systems of different countries interact and shape each other. It looks at how the economic policies of different countries impact their political systems, and vice versa.
- Development Economics: This branch of economics looks at the economic processes of development in different countries. It examines the factors that shape economic growth and development, such as human capital, technology, and institutions.
- Global Governance: This approach looks at how global economic and political systems are organized and managed. It examines the roles of international organizations, such as the United Nations, the World Trade Organization, and the International Monetary Fund, in shaping global economic and political outcomes.
|Global political economy — recommended articles|
|Economic factor — John Stuart Mill — Laissez faire government — New keynesian economics — Economic network — Endogenous growth — Political factors affecting business — Environmental economics — Joseph Stiglitz|
- Ravenhill, J. (Ed.). (2017). Global political economy. Oxford University Press.