This chapter is organized around the idea of development: what it has meant to whom and why. The colonial period at its end was the beginning of what has been termed the era of development and was the beginning of an unprecedented internationalization and the emergence of a global economy. By the end of the 1990s, there were few parts of the world left untouched by the process of globalization which occurred since World War II. The first two decades of the twenty-first century have witnessed splintering and fragmentation and what some would argue to be signs of the end of the development era. Meanwhile, 'intentional development' at global level has broadened to include goals to deal with almost all aspects of what some call 'global crisis'. Analysts of development have moved to examining politics, power, and institutions in order to understand the growing complexity of development.
Chapter
15. The Era of Development—A Short History
Tom Hewitt
Chapter
15. Conclusion: The Future of Democracy
This concluding chapter outlines a number of factors that will potentially shape the future trajectory of democracy. It is impossible to forecast with any certainty democracy's future trajectory. The state of global democracy will be determined by a number of complex, dynamic, and inter-related factors. Based on current trends and future projections about the state of the global economy, levels of instability and conflict, technological change, and China's development, it appears that the risks of a widespread authoritarian resurgence have grown. Given these prospects, it is important to consider the implications of a rise in the number of autocracies worldwide. How would a widespread authoritarian resurgence affect today's global order? Policymakers, analysts, and academics widely agree that the norms, values, laws, and institutions that have undergirded the international system and governed relationships between nations are being stretched and strained. Widespread democratic decline would also accelerate changes in today's global order.
Chapter
27. Global trade and global finance
Matthew Watson
This chapter explores important issues in the conduct of global trade and global finance. It asks why the global economy is so good at allowing some people to own untold riches while many others have too little money to meet basic subsistence needs, and whether the world would be better or worse off without the institutions of global economic governance. After discussing the globalization of trade and finance, the chapter considers the regulation of global trade and global finance. Two case studies are presented, one dealing with the ongoing trade war between the US and China and the other with the effect of tax havens on overseas aid budgets. There is also an Opposing Opinions box that addresses the question of how far the institutions of global economic governance currently go to work specifically to the benefit of developing countries.
Chapter
5. Rising powers and the emerging global order
Andrew Hurrell
This chapter examines the global order, led by the United States, that emerged at the end of the cold war and asks whether it has been effectively challenged by rising powers. It begins with a discussion of the challenges to the idea of a U.S.-dominated global order, focusing in particular on the role of large, emerging developing countries as well as the idea of the BRICS (Brazil, Russia, India, China, and South Africa) in the context of the future of the global economy. The chapter then considers the more recent economic slowdown in the emerging world, along with the political and social challenges facing many emerging societies. It also analyses some of the major theoretical arguments about the impact of rising powers on international relations and whether they are powerful enough to affect international order.
Chapter
12. Labour and work
Matthew Alford
This chapter illustrates the complex and contested relationship between global production and labour. The mode of global production has changed dramatically since the 1970s. Since the 1990s, corporations have outsourced the production of goods to suppliers around the world. At the core of this contemporary form of global production is the ability of lead firms to profit through advanced sourcing strategies, economies of scale, and branding. This gives corporations significant bargaining power over their fragmented and geographically dispersed supplier base. In the contemporary global economy, conditions of poverty and marginalization can be attributed not only to exclusion from employment, but also to the adverse incorporation of precarious workers into global production. The chapter then considers the role of national governments in the governance of labour in global production, before looking at the impact of e-commerce and automation on the future of work.
Chapter
15. State power and geopolitics
Andrew Hurrell
This chapter covers three dimensions in answering questions about the role of state power and geopolitics in the Global Political Economy (GPE). The first answer focuses on how changes in the global economy affect the nature and the effectiveness of the economic instruments available to governments as they pursue their foreign policy goals. The second cluster of answers focuses on the ways in which politics and economics are bound together in the construction and evolution of economic institutions and economic orders. The third cluster of answers accepts the need to think in terms of power operating within economic orders but this time with the causal arrow flowing from politics into the economy. Ultimately, the dynamics of the international political system are what drive the foreign economic policies of governments, shape the states and societies making up the global system, and help explain the character and operation of the global economy.
Chapter
17. Gender
Paul Kirby
This chapter examines the power of gender in global politics. It considers the different ways in which gender shapes world politics today, whether men dominate global politics at the expense of women, and whether international—and globalized—gender norms should be radically changed, and if so, how. The chapter also discusses sex and gender in international perspective, along with global gender relations and the gendering of global politics, global security, and the global economy. The first case study in this chapter considers the Kurdish Yekîneyên Parastine Jin (Women's Protection Units) and the role of women in political violence. The second case study examines neo-slavery and care labour in Asia.
Chapter
28. Global trade and global finance
Matthew Watson
This chapter explores important issues in the conduct of global trade and global finance. In particular, it looks at how the Covid-19 pandemic has changed the experience of global trade and global finance in recent years. It asks why the global economy is so good at allowing some people to own untold riches while many others have too little money to meet basic subsistence needs, and whether the world would be better or worse off without the institutions of global economic governance. After discussing the globalization of trade and finance, the chapter considers the regulation of global trade and global finance. Two case studies are presented, one dealing with the Covid-19 vaccination programme and global economic recovery and another looking at US President Joe Biden's proposed global minimum corporate tax rate.
Book
Edited by Manuela Moschella, Lucia Quaglia, and Aneta Spendzharova
European Political Economy combines the key theoretical and empirical approaches of political economy and EU scholarship. It draws on theoretical debates and recent policy case studies, to help readers apply theories and methods to real life issues in European political economy. The book offers a clear analysis of some of the most pressing challenges confronting Europe, such as the political impact of rising inequality, the functioning and the effects of Economic and Monetary Union, the future of the ‘European’ social model, the ongoing impact of Brexit, Europe's role in a changing global economy, and Europe's response to the Covid-19 pandemic.
Chapter
4. The Developing World in the Global Economy
Robert Ahearne
This chapter examines the role of developing countries in the contemporary global economy. It first provides an overview of trends in the global economy, taking into account the implications of globalization for the developing world and the question of free trade vs protectionism. It then considers three key features of an increasingly globalized economy and their significance for the developing world: trade, foreign direct investment (FDI), and financial flows. It also discusses the role(s) of developing countries in global trade, the advantages and disadvantages of FDI, and two major components of the global economy that can cause serious economic disruptions: the buying and selling of currencies and stocks and shares in local economies, and the rapid movement of capital across borders. The chapter concludes with an assessment of factors that can reduce the economic well-being of countries in the developing world.
Chapter
10. Global Political Economy
This chapter offers an overview of the field of Global Political Economy (GPE)—also known as International Political Economy (IPE). It builds on themes introduced in previous chapters, including connections with theories of global politics. These are discussed from a historical perspective to enable a better appreciation of how ideas, practices, and institutions develop and interact over time. These theories arose substantially within a European context, although the extent to which these may be applied uncritically to issues of political economy in all parts of the globe must be questioned. Significant issues for GPE include trade, labour, the interaction of states and markets, the nexus between wealth and power, and the problems of development and underdevelopment in the global economy, taking particular account of the North–South gap. The chapter then discusses the twin phenomena of globalization and regionalization and the way in which these are shaping the global economy and challenging the traditional role of the state. An underlying theme of the chapter is the link between economic and political power.
Chapter
18. Global economy
Peter Gowan and Doug Stokes
This chapter examines some of the central debates on how we should understand the United States’ efforts to reshape international economic relations since the 1940s. It first considers debates on the sources and mechanisms of American economic strategy before turning to debates about the substance of American efforts to shape the global economy. It approaches the debates about the substance of U.S. foreign economic policy since 1945 by classifying varying perspectives on this question in three alternative images. The first such image is that of America as the promoter of a cooperative, multilateral order in international economics. The second image is that of an American economic nationalism and the third is that of an American empire. The chapter goes on to analyse the global financial crisis and concludes with an overview of some of the main current debates about the strength of American capitalism in the world economy.
Chapter
17. Gender
Paul Kirby
This chapter examines the power of gender in global politics. It considers the different ways in which gender shapes world politics today, whether men dominate global politics at the expense of women, whether international—and globalized—gender norms should be radically changed, and if so, how. The chapter also discusses sex and gender in international perspective, along with global gender relations and the gendering of global politics, global security, and the global economy. Two case studies are presented, one dealing with the participation of female guerrillas in El Salvador's civil war, and the other with neo-slavery and care labour in Asia. There is also an Opposing Opinions box that asks whether war is inherently masculine.
Chapter
27. Poverty and Development: Prospects for the Future
Ikenna Acholonu, Charlotte Brown, and Ingrina Shieh
This concluding chapter brings together reflections from practitioners, thinkers, and academics. They comment on achievements and challenges for social progress in the world over the past 30 years, and outline possible futures for poverty and development. Economist and historian María del Pilar López-Uribe speaks about the experiences of South American countries. She is an authority on the long-term effects of climate change and geography on institutional drivers of economic development, and on the history of land conflicts and property rights in Colombia. Meanwhile, Leonard Wantchekon highlights the role of technology in shaping the future of development. Affan Cheema also offers a practitioner's perspective on the need to approach humanitarianism from a more holistic perspective in relation to development. The chapter then looks at how warnings of the effects of climate change have galvanized international movements calling for governments to declare a climate emergency and prioritize policies that promote sustainability and mitigate the environmental impact of the global economy. Since forming in spring of 2018, the environmental pressure group Extinction Rebellion has organized protests that have reached international scale.
Chapter
10. Inequality
Eduardo Ortiz-Juarez and Andy Sumner
This chapter explores income inequality in the global political economy. Income inequality matters for intrinsic and instrumental reasons, and intersects with inequalities between social groups based on gender, race, and other factors. There are three ways to think about income inequality at a global level: ‘international inequality’, ‘world inequality’, and ‘global inequality’. One can say that international inequality and world inequality have unambiguously declined since 1980. However, the magnitude of the decline depends on whether the size of countries' populations is taken into account. Meanwhile, national inequality refers to differences in income between individuals within a country. The chapter then discusses poverty. Ultimately, explanations for patterns of inequality in the contemporary period can be traced to many of the dynamics associated with globalization, particularly the reorganization of the global economy around global value chains (GVCs) and the implications for countries pursuing ‘late development’.
Chapter
6. Rising powers and the emerging global order
Andrew Hurrell
This chapter examines the global order, led by the United States, that emerged at the end of the cold war and asks whether it has been effectively challenged by rising powers. It begins with a discussion of the challenges to the idea of a U.S.-dominated global order, focusing in particular on the role of large, emerging developing countries as well as the idea of the BRICS (Brazil, Russia, India, China, and South Africa) in the context of the future of the global economy. The chapter then considers the more recent economic slowdown in the emerging world, along with the political and social challenges facing many emerging societies. It also analyses some of the major theoretical arguments about the impact of rising powers on international relations and whether they are powerful enough to affect international order. The chapter also asks, what is the role of emerging powers in a post-Western order characterized both by US/China rivalry and by pressing global challenges such as climate change and the Covid-19 pandemic?
Chapter
7. Marxist theories of international relations
Stephen Hobden and Richard Wyn Jones
This chapter examines the contribution of Marxism to the study of international relations. It first considers whether globalization is a new phenomenon or a long-standing feature of capitalist development, and whether ‘crisis’ is an inevitable feature of capitalism, and if so, whether capitalism contains the seeds of its own destruction. The chapter proceeds by discussing a number of core features common to Marxist approaches as well as the internationalization of Karl Marx's ideas by Vladimir Lenin and subsequently by writers in the world-system framework. It also explains how Frankfurt School critical theory, and Antonio Gramsci and his various followers, introduced an analysis of culture into Marxist analysis as well as the more recent ‘return to Marx’. Two case studies are presented, one relating to the Naxalite movement in India and the other focusing on the recent experience of Greece. There is also an Opposing Opinions box that asks whether the global economy is the prime determinant of the character of world politics.
