The political economy of Europe has changed significantly in the last four decades because of globalization, the collapse of communism, and financial crises. This chapter first discusses the different varieties of capitalism that emerged in Europe after World War II. It looks at how they have been put under pressure by economic internationalization and the dominance of neoliberal ideas, which together have weakened economic management at nation-state level. The chapter also looks at the development of capitalism in Eastern Europe and explanations for variance in post-communist capitalist development. Finally, the chapter considers the challenges to the management of Europe’s political economy posed by the international financial crisis that dominated much of Europe’s politics after 2007, along with the initial response to the economic crisis caused by the coronavirus pandemic in 2020.
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Chapter
Alan Thomas
This chapter investigates the different senses in which the term 'development' is used. 'Development' is used in three main senses: a vision or measure of a desirable society; a historical process of social change; and deliberate efforts at improvement by development agencies. The variety of competing overall views on development can be organized into three groups according to how they see development relating to capitalism: through, against, or in the context of capitalism. The first two of these groups of views are labelled Market economics and Structuralism. A third group of views, pragmatic rather than theoretical, is termed Interventionism and concentrates on how to achieve development. Finally, there are those who reject all these views as versions of 'mainstream' development. They seek alternatives, either an alternative form of development or rejecting the development concept entirely.
Chapter
This concluding chapter summarizes the key aspects of international political economy (IPE). IPE can be described as the study of global systems of production, exchange, and distribution, with a view to understanding what these mean for the basic values of wealth, security, freedom, and justice. This book connects this academic field and its animating questions to everyday life. Alongside states and markets, it looks at households as important sites of power. Alongside production, exchange, and distribution, it also considers the contested economic sphere of consumption. Using the I-PEEL approach, the book takes everyday objects and economic practices as both entry points into IPE and things to be studied in themselves. The chapter then demonstrates the process of creating I-PEEL tiles, highlighting the merits of the I-PEEL approach in studying global capitalism.
Chapter
John Gregson
This chapter examines the basic features of socialism and communism. Socialism is a complex ideology with numerous variants that are often strongly opposed to each other on one or more central questions or issues. Variants of socialism have converged with other classical ideologies (such as liberalism) in their beliefs and values, yet other variants have remained vehemently opposed to much within liberalism. The chapter first provides a brief historical background on socialism before discussing the key beliefs, values, and assumptions of socialism. In particular, it looks at socialism's critique of industrial capitalism and its vision of the good society, along with its its conception of human nature, community, and freedom. The chapter proceeds by considering some variants of socialism, especially communism and social democracy, as well as the overlap between socialism and other ideologies like liberalism. Finally, it assesses the historical, contemporary, and future impact of socialism.
Chapter
8. Reviewing the ‘classical’ legacy
Left–right politics in the age of ideology
Paul Wetherly
This chapter examines the legacy of the ‘classical’ ideologies in terms of their European origins, expansion, and dominance. Classical ideologies such as liberalism, conservatism, and socialism can be understood as contrasting responses to the intellectual, social, and economic transformations known as the Enlightenment and modernization, especially industrialization and the rise of capitalism in the eighteenth and nineteenth centuries. The chapter first considers the idea that liberalism constitutes a dominant ideology before discussing the relationship between ideological principles, party politics, and statecraft. It then analyses the relationship between the classical ideologies in terms of the Enlightenment and the left–right conception of ideological debate. It also introduces the notion of ‘new’ ideologies and the extent to which the dominance of the classical ideologies can be seen in the character of the political parties that have dominated Western democracies.
Chapter
Patrick Bernhagen
This chapter examines the relationship between democratization and the economy. It first provides an historical overview of the emergence of capitalist democracy before discussing some general problems of the relationship between democracy and capitalism, highlighting the main areas in which the two systems condition each other. It then considers the role of business in democratizing countries, and more specifically the role of business actors in the transition to democracy. It also explores the intricacies of combining major political and economic reforms. Some key points are emphasized; for example, capitalism focuses on property rights while democracy focuses on personal rights. Furthermore, capitalism produces inequality, which can both stimulate and hamper democratization.
Chapter
Simon Choat
This chapter focuses on the works of Karl Marx from 1845 onwards, because it is in those works that the theories and concepts for which he is best known were developed. It begins by explaining Marx’s materialist conception of history, mainly through the manuscripts published posthumously as The German Ideology (originally co-authored 1845–1846 with Friedrich Engels) and the 1859 ‘Preface’. The chapter explores some of Marx’s main concepts, including mode of production, class struggle, and ideology. The chapter then turns to Marx’s critical analysis of the capitalist mode of production, especially as found in the Communist Manifesto (1848, with Engels) and Capital Volume One (1867). Finally, it examines Marx’s views on the state and contrasts them with those of his anarchist contemporaries. While acknowledging Marx’s weaknesses, especially with respect to the analysis of race and gender, the chapter defends his continuing relevance.
Chapter
Eva-Maria Nag
This chapter presents an overview of Dipesh Chakrabarty’s contribution to political thinking that is concerned with the human condition in the age of climate change. The chapter examines Chakrabarty’s argument that human-centred ways of thinking about the world and humanity are no longer appropriate. Moreover, Chakrabarty makes the case for bringing together natural and human history; for humans having become a geological force upon the planet; for capitalism having only a limited role in climate change; and for a new focus on planetary history, not merely human history. This chapter presents, Chakrabarty as a postcolonial historian and political thinker and then examines his conceptualization of the Anthropocene as a new historical and planetary era. This chapter further explores the complex connections between freedom, capitalism, and climate change. Chakrabarty insists the era of climate change needs new political perspectives beyond critiques of capitalism, colonialism, and globalization.
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This chapter examines democratic pragmatism, a discourse of environmental problem solving that emerged as a corrective to administration. Democratic pragmatism may be characterized in terms of interactive problem solving within the basic institutional structure of liberal capitalist democracy. The word ‘pragmatism’ can have two connotations: the first is the way the word is used in everyday language, as signifying a practical, realistic orientation to the world, the opposite of starry-eyed idealism; the second refers to a school of thought in philosophy, associated with names such as William James, Charles Peirce, and John Dewey. This chapter treats democracy as a problem-solving discourse reconciled to the basic status quo of liberal capitalism. It first considers democratic pragmatism in action before discussing democratic pragmatism as government and governance. It also explores the rationality of democratic pragmatism, the discourse analysis of democratic pragmatism, and the limits of democratic pragmatism.
Chapter
Eric Herring
This chapter examines historical materialism and its approach to understanding what constitutes security. It begins with an overview of of the social scientific, philosophical, and political dimensions of historical materialism and what it involves, including its diversity, value, and potential but avoidable pitfalls. It then describes key concepts of historical materialism and uses them to show how capitalism generally and in its recent neoliberal form aim to generate insecurity for labour and security for capital. It also discusses the relationships between historical materialism and approaches to security in a wider context (realism, liberalism, social constructivism, and gender) and to various perspectives on security (securitization and the sectoral approach, peace studies, Critical Security Studies, and human security). The chapter concludes with an overall assessment of the contribution of historical materialism to the scholarship and politics of security and insecurity.
Chapter
Mark Rupert
This chapter examines Marxist theory’s understanding of capitalism as an historically particular way of organizing social life and how Marxism can shed light on complex social relationships through which human beings produce and reproduce their social relations, the natural world, and themselves. It argues that the kind of social organization envisioned by Marxists has political, cultural, and economic dimensions that must be viewed as a dynamic ensemble of social relations not necessarily contained within the territorial boundaries of nation-states. The chapter first provides an overview of historical materialism and the meaning of dialectical theory, with particular emphasis on Karl Marx’s critique of capitalism and the Marxist tradition’s theorizing of imperialism, before discussing Western Marxism and Antonio Gramsci’s theory of hegemony. It then considers Marxist concepts of global power and hegemony and concludes with a case study that highlights the social relations underlying US global militarism.
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Jørgen Goul Andersen
This chapter examines the effects of public policy. It first considers economic paradigms and approaches to welfare and documents the overriding historical changes in approaches to the economy, from Keynesian ideas of macro-economic steering to more market-oriented economic perspectives. It then explores the idea of institutional complementarity, as expressed in the typologies of welfare regimes, varieties of capitalism, and flexicurity. It also looks at some of the empirical analyses of the effects of welfare policies and the tension between welfare and economic efficiency. Finally, it looks at policy feedback, path dependence, policy learning, social learning, policy transfer and policy diffusion, and policy convergence.
Chapter
Eric Herring
This chapter begins with an overview of the social scientific, philosophical, and political dimensions of historical materialism (HM). This overview is followed by an elaboration of what HM involves, including its diversity, value, and potential but avoidable pitfalls. Key HM concepts are set out and used to show how capitalism generally and in its recent neoliberal form aims to generate insecurity for labour and security for capital. Rather than being a narrow approach to security that focuses on economics, at its best, HM is a holistic approach that provides a way of putting into perspective and relating the many components of security. It goes on to explore the relationships between HM and approaches to security in wider contexts (realism, liberalism, social constructivism, and gender) and then to various perspectives on security (securitization and the sectoral approach, peace studies, Critical Security Studies, and human security). Accompanying the text are Think Point 4.1 on using HM to understand arms production and the arms trade, and Think Point 4.2 on using HM to understand the connections between development and security. The conclusion provides an overall assessment of the contribution of HM to the scholarship and politics of security and insecurity.
Chapter
Janet Bujra
This chapter reflects on a range of examples of pre-capitalist societies, chosen to illustrate the major arenas of colonial disruption, in Africa, Asia, and Latin America, and to show how they worked. The empires which Europe created in Africa, Asia, and Latin America were merely the last (to date) in a long line of imperial ventures. There were few areas in the world which had not previously been subject to overlordship by external forces, sometimes to the suzerainty of successive powers. However, these old empires often functioned quite differently from the newer empires created by Europe. The growth of capitalism in Europe drove a need for closer control over the type and extent of production in areas under imperial domination. Whereas in previous empires merchants had merely served the demands of wealthy minorities for luxury goods (and in the process accumulated hoards of personal wealth), now these stocks of wealth began to go directly into the transformation of productive processes in Europe (the Industrial Revolution) rather than into consumption. Thus the emphasis was increasingly on raw materials or intermediate inputs to European industry.
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Helen Hintjens, Shyamika Jayasundara-Smits, and Ali Bilgic
This chapter situates human mobility at the intersection of security and development. Capitalism prompted much of the population of Europe to move out of rural areas into cities, and from there imperialism led to huge forced and voluntary migration towards settler colonies. By tying development funding and humanitarian aid to cooperation of developing states in migration control, 'the West' uses development aid to criminalize whole categories of migrants, well beyond its borders. Myths around migration perpetuate containment and control that keeps around 90 per cent of forced migrants and refugees in or near their home regions. More humane migration and asylum policies could benefit host and home countries alike, in the long run. Migrants can be viewed as economic assets, a demographic boon, and a source of cultural enrichment.
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Diego Muro
This chapter examines the effectiveness of terrorism in delivering tactical returns. It shows how terrorism is largely ineffective in realising strategic goals. Political goals vary and include secession, overthrowing capitalism, and expelling an occupying force. Additionally, the tactical use of terrorism brings cohesion to a group's organization, ideology, goals, and constituencies. There is no consensus among scholars with regards to the political returns of terrorism. This is due to the methodological problems inherent in the controversy. The chapter then explores the advantages and disadvantages of using coercive intimidation to pursue political conclusions. It includes future studies that may be more inclusive, methodical, and productive.
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This chapter investigates critical approaches to global politics. While liberal and realist theorists probe each other’s ideas for faults and weaknesses, neither have challenged capitalism and its implications for social, economic, and political order. Marxism, on the other hand, which developed around the mid-nineteenth century, has provided very different perspectives and presents a significant challenge for mainstream approaches to global order in both theory and practice. Post-Marxist Critical Theory, along with historical sociology and world-systems theory, emerged in the twentieth century, giving rise to schools of thought which continue the critique of capitalism and the social and political forces underpinning it. Meanwhile, ideas arising from social theory, such as the extent to which perceptions of reality are socially conditioned and indeed ‘constructed’, achieved greater prominence following the end of the Cold War, an event which prompted many scholars to start asking new questions about global politics and the assumptions on which traditional theories rested. Constructivism, postmodernism, and poststructuralism remain concerned with issues of power and justice but provide different lenses through which these issues may be viewed in the sphere of global politics.
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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.
Chapter
Atsuko Ichijo
This chapter examines the role of public policies. It starts by defining public policy and introducing a series of tools for analysing different types of public policies. The chapter argues that we need to consider both the short-run effects of policies and their longer-run political effects, with each empirical section examining both how policies work and how they shape (or fail to shape) longer-run political coalitions. It starts by analysing policies affecting income equality, looking at policies shaping longer-run patterns of income redistribution. It then turns to economic performance, reviewing arguments about different ‘varieties of capitalism’ and their underlying political and economic logics. The penultimate section turns to examining the role of quotas and other policies in shaping women’s representation in legislatures. The chapter concludes with discussion of climate change and the economic and political logics of policies aiming to reduce carbon emissions.
Book
Aggie Hirst, Diego de Merich, Joe Hoover, and Roberto Roccu
Global Politics: Myths and Mysteries provides an introduction to key concepts in international relations, aiming to expose the myths of the discipline. The text starts off with an introduction to the topic asking the question: what exactly is myth-making? The chapters then look at key concepts in turn, starting with politics and power. They move on to examine ethics, violence, and law. Next the text analyses the world of finance with a chapter on money. Empire is the subject of the chapter that follows. The last two chapters cover capitalism and state. Finally, the text concludes and considers the notion of change as it relates to global politics.
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