This chapter examines the neoliberalist argument that international institutions promote international cooperation. While neoliberalism acknowledges that cooperation can be difficult to achieve in anarchic conditions, it insists that institutions allow states to overcome a variety of collective action impediments. The central concern of neoliberal analysis is how institutions do so, and how they might be redesigned to more efficiently obtain cooperative outcomes. This chapter considers three questions that are relevant for understanding neoliberal contributions: How did neoliberalism emerge? What are the barriers to international cooperation? How does neoliberalism study international institutions? The chapter uses the World Trade Organization as a case study to illustrate the importance of institutional design for international free trade cooperation. Along the way, various concepts such as interdependence, hegemonic stability, hegemon, bargaining, defection, compliance, autonomy, and principal–agent theory are discussed, along with the game known as Prisoner’s Dilemma.
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5. Neoliberalism
Jennifer Sterling-Folker
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6. Trade
Erin Hannah and James Scott
This chapter assesses the global trade system. It begins by looking at the debate over free trade and protectionism. The chapter explores the evolution of the multilateral trade system, with particular emphasis on the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO), highlighting the centrality of trade liberalization and non-discrimination in contemporary trade relations. It then considers the debates surrounding the relationship between trade and development, particularly around how multilateral trade rules reflect unequal power relations, and the social consequences of liberalized trade. The chapter also reflects on the recent backlash against neoliberal trade and the ostensible turn towards protectionism in some parts of the world. Finally, it highlights the gendered nature of trade and how it affects gender equality.
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2. The Liberal ‘Idealist’ Origins Of The International Relations Discipline
This chapter provides an overview of liberalism and liberal international relations (IR) thinking. It details the role of liberalism in the founding of the modern IR discipline and its subsequent challenges. Liberalism, which emerged in the aftermath of the First World War, is often known as liberal internationalism or idealism. Idealism is noted for its emphasis on individual rights and freedoms. The chapter acknowledges that the influence of liberal thinking on both the theory and practice of international politics remains substantial and prominent within Western political philosophy. It explains that liberalism can be defined as the combination of individualism, free trade, and democracy.
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7. Neoliberalism
Jennifer Sterling-Folker
This chapter examines the neoliberalist argument that international institutions promote international cooperation. While neoliberalism acknowledges that cooperation can be difficult to achieve in anarchic conditions, it insists that institutions allow states to overcome a variety of collective action impediments. The central concern of neoliberal analysis is how institutions do so, and how they might be redesigned to more efficiently obtain cooperative outcomes. This chapter considers a series of questions that are relevant for understanding neoliberal contributions: How did neoliberalism emerge? What are the barriers to international cooperation? How does neoliberalism study international institutions? What will become of these institutions in an age of rising right-wing populism and global inequalities? The chapter uses the World Trade Organization as a case study to illustrate the importance of institutional design for international free trade cooperation. Along the way, various concepts such as interdependence, hegemonic stability, hegemon, bargaining, defection, compliance, autonomy, and principal–agent theory are discussed, along with the game known as Prisoner’s Dilemma.
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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.
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5. America in the 1990s: searching for purpose
John Dumbrell
This chapter examines U.S. foreign policy debates and policy management under the direction of George H. W. Bush and Bill Clinton. It first provides an overview of post-Cold War American internationalism before discussing the so-called ‘Kennan sweepstakes’: a conscious effort to find a post-Soviet statement of purpose to rival George Kennan’s early Cold War concept of ‘containment’ of communism. It then considers U.S. foreign policy making in the new order and in the post-Cold War era. Both the Bush and Clinton administrations wrestled with the problem of deciding on a clear, publicly defensible, strategy for U.S. foreign policy in the new era. Clinton’s first term was dominated by free trade agendas and by efforts to operationalize the policy of ‘selective engagement’, while his second term involved a noticeable turn towards unilateralism and remilitarization. The New World Order was Bush’s main contribution to thinking beyond the Cold War.
