This chapter tackles the omnipresent question of oil and its relation to the Middle East’s political economy and international relations. It demonstrates the compelling links between oil and the consolidation and evolution of the modern state system. It also points out how outside powers have invariably used oil in their dealings with the Middle East yet this has figured less prominently in the foreign policies of Arab states, whose concerns remain of a more parochial kind. The chapter analyzes a rentier model that shows how oil has conditioned economic and political outcomes in oil-rich and oil-poor states, slowing down the prospects for reform. It emphasizes how oil has given states huge power and resistance to political change.
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5. Oil and Political Economy in the International Relations of the Middle East
Giacomo Luciani
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7. Production and business
Kate Macdonald
This chapter addresses global production, which has powerful effects on the incomes, working conditions, and development opportunities of populations around the world. It is not surprising that the organization and regulation of global production have become one of the most contentious subjects of debate within the field of Global Political Economy (GPE). The chapter confronts several difficult questions linked to these debates. Who does the work of global production, and how has its organization changed over time? Who exercises power within evolving systems of global production, and what winners and losers do such arrangements produce? How is global production governed, and with what consequences for labour rights and the environment? In exploring these questions, analytical lenses drawn from a range of political economy perspectives help us to make sense of the complex economic and political forces through which the organization and governance of contemporary global production is shaped and contested.
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12. Environment
Charlotte Burns and Neil Carter
This chapter considers a number of environmental issues at the heart of the European political economy. It looks at several key features that characterize the political economy of the environment in Europe. The rapid growth of EU environmental policy from the 1980s was underpinned by the economic rationale of establishing a level playing field to ensure a Single Market. Meanwhile, in 2019, the European Green Deal placed climate change and the environment at the heart of the EU's growth agenda. The chapter explains how Ideational and Critical and Feminist EPE approaches highlight the gaps between the EU's stated ambitions and the type of radical action required to achieve net zero.
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5. Oil and Political Economy in the International Relations of the Middle East
Giacomo Luciani
This chapter looks at the role of oil in the political economy and the international relations of the Middle East. Oil is commonly considered a political commodity. Because of its pivotal importance as a primary source of energy, governments are concerned with its continued availability and seek to minimize import dependence. Historically, interest in oil — especially in the United Kingdom and the United States — strongly influenced attitudes towards the Middle East and the formation of the state system in the region, following the collapse of the Ottoman Empire. Oil also affects the power balance within the region. The polarization in the region between oil-rich and oil-poor states is thus an essential tool of analysis. The parallel distinction between rentier and non-rentier states helps to explain how oil affects the domestic political development of the oil-rich states and influences their regional relations.
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8. Critical Theory
Steven C. Roach
This chapter examines the various assumptions of critical theory espoused by the Frankfurt school, with particular emphasis on how the Frankfurt school’s critiques of authoritarianism and repression influenced the critical interventions by International Relations (IR) theorists. The chapter focuses on two major strands of critical International Relations theory: normative theory and the Marxist-based critique of the political economy. After providing an overview of the Frankfurt school and critical IR theory, the chapter explores critical theorists’ views on universal morality and political economy. It then discusses Jürgen Habermas’s ideas in international relations and presents a case study of the Arab Spring. It concludes by analysing the concept of critical reflexivity and how it can show knowledge and social reality are co-produced through social interaction, and how this interaction can, in turn, produce practical or empirical knowledge of the changing moral and legal dynamics of prominent global institutions.
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5. The economic rise of a superpower: from Washington to Trump
Michael Cox
This chapter focuses on the American political economy from the colonial period to Donald Trump. In particular, it examines how the United States emerged from being a predominantly agricultural country to the wealthiest economic power in the world. The chapter first considers America’s economic rise before independence before discussing the role played by economic factors in sparking war between Great Britain and American colonists. It then looks at America’s dramatic economic growth between formal independence and World War I, as well as through the post-war period. It also analyses the American political economy under Bill Clinton and how his economic policies — and those of his successor George W. Bush — contributed to the great economic crash of 2008. It also explores the major economic reasons that accounted for Trump’s victory in the 2016 presidential election and concludes with an overview of how the American economy has been impacted by globalization.
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4. The Domestic Sources of Foreign Economic Policies
Michael J. Hiscox
This chapter examines the domestic sources of foreign economic policies. Different people in every society typically have different views about what their government should do when it comes to setting the policies that regulate international trade, immigration, investment, and exchange rates. These competing demands must be reconciled in some way by the political institutions that govern policy making. To really understand the domestic origins of foreign economic policies, we need to perform two critical tasks: identify or map the policy preferences of different groups in the domestic economy; and specify how political institutions determine the way these preferences are aggregated or converted into actual government decisions. The first task requires some economic analysis, while the second requires some political analysis. These two analytical steps put together like this, combining both economic and political analysis in tandem, are generally referred to as the political economy approach to the study of policy outcomes. The chapter then considers the impact of domestic politics on bargaining over economic issues between governments at the international level.
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9. Political Economy: National and Global Perspectives
This chapter examines the field of political economy from a historical, comparative, and international perspective, focusing on how ideas, practices, and institutions develop and interact over place and time. It first provides an overview of political economy as a field of study before discussing some important theories such as Marxism, liberalism, and economic nationalism. It then considers key issues such as the interaction of states and markets and the North–South divide, along with Karl Marx's critique of international political economy (IPE). It also explores the post-war international economic order and the twin phenomena of globalization and regionalization in the post-Cold War era before concluding with an analysis of the ‘boom and bust’ episodes in the global capitalist economy such as the global financial crisis of 2008.
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27. Marx and Engels
Paul Thomas
This chapter examines Karl Marx's relationship to Friedrich Engels and their joint works of the 1840s, along with those works each of them published separately. Marx is regarded as Engels regarded him; that is, as the more important of the two, both as a theorist and political activist in the First International. The chapter begins with a discussion of the Manifesto of the Communist Party, with particular emphasis on Marx and Engels's views on ideology. It then considers Marx's critique of political economy; his concepts of use value, exchange value, and surplus value; and the ‘fetishism of commodities’ as discussed in the first volume of Capital. It also explores Marx's insights about Western European history and his theory of the state before concluding with an overview of Engels's contribution to Marxism.
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17. Political culture
Christian Welzel and Ronald Inglehart
This chapter examines the role that the concept of political culture plays in comparative politics. In particular, it considers how the political culture field increases our understanding of the social roots of democracy and how these roots are transforming through cultural change. In analysing the inspirational forces of democracy, key propositions of the political culture approach are compared with those of the political economy approach. The chapter first provides an overview of cultural differences around the world, before tracing the historical roots of the political culture concept. It then tackles the question of citizens’ democratic maturity and describes the allegiance model of the democratic citizen. It also explores party–voter dealignment, the assertive model of the democratic citizen, and political culture in non-democracies. It concludes with an assessment of how trust, confidence, and social capital increase a society’s capacity for collective action.
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6. Financial Integration and Regulation
Lucia Quaglia
This chapter provides an overview of financial integration and regulation. It discusses the main issues at stake in the political economy of financial integration and regulation in Europe. Due to the recurrence of financial crises, the globalization of finance, the multi-level governance of financial services, and the large size and far-reaching influence of the financial sector, financial integration and regulation hold particular significance in the European political economy. Over time, financial integration increased in the European Union, which has harmonized regulations on a variety of financial services across Member States. The financial integration and regulation in Europe face several ongoing and future challenges, such as the incompleteness of the Banking Union and its asymmetric functioning.
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.
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18. Human Rights
Michael Freeman
This chapter examines the concept of human rights, which derives primarily from the Charter of the United Nations adopted in 1945 immediately after World War II. It first provides a brief account of the history of the concept of human rights before describing the international human rights regime. It then considers two persistent problems that arise in applying the concept of human rights to the developing world: the relations between the claim that the concept is universally valid and the realities of cultural diversity around the world; and the relations between human rights and development. In particular, it explores cultural imperialism and cultural relativism, the human rights implications of the rise of political Islam and the so-called war on terror(ism), and globalization. The chapter concludes with a discussion of the new political economy of human rights.
Book
Peter Ferdinand, Robert Garner, and Stephanie Lawson
Politics offers an introduction to political studies. It combines accessibility and an analytical approach, encouraging critical study and engaged debate. Alongside coverage of concepts, approaches, and ideologies, the text features chapters on all crucial elements of political studies, from institutions and states to security, political economy, civil society and the media, making it an ideal text for a broad range of modules. Current debates and key developments in contemporary politics are taken into account, with coverage of the rise of populism, Brexit, and the presidency of Donald Trump, as well as a broad range of international case studies and examples.
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25. Nigeria
Consolidating Democracy and Human Rights
Stephen Wright
This chapter examines the consolidation of democracy and human rights in Nigeria. With regard to the relationship between development and human rights, Nigeria presents an interesting puzzle. It is rich in oil, but has not been able to translate its immense natural resources into sustainable economic development and respect for human rights. Ethnic and religious tensions, a result of colonialism, have been exacerbated by disastrous economic development, which has in turn led to a deteriorating human rights situation and intense violence. The chapter first considers the political economy of Nigerian oil before discussing the country’s political and economic development, with particular emphasis on critical aspects of human security and civil society. It concludes with an assessment of the progress that has been made as well as ongoing development challenges Nigeria faces.
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27. Sudan
Human Rights, Development, and Democracy
Liv Tønnessen
This chapter examines human rights, development, and democracy in Sudan. Since gaining independence in 1956, Sudan has been dominated by a northern Muslim ‘ethnocracy’ — a factor that helped precipitate secession of the Christian south in 2011. Long periods of military rule and civil war have spawned a culture of authoritarianism and violence. The chapter first provides an overview of political instability in Sudan before discussing the two civil wars and perpetual conflicts endured by the country throughout its history. It then considers the political economy of human development in Sudan, focusing on the link between underdevelopment and the politics of oil, as well as the failure of democracy to consolidate and the role of civil society in popular uprisings. The chapter concludes with an assessment of the connection between development in the Sudanese context and the need for improving human rights.
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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.
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6. Regional Trade Agreements
John Ravenhill
This chapter assesses regional trade agreements (RTAs). The number of RTAs has grown rapidly since the World Trade Organization (WTO) came into existence in 1995. Roughly one-half of world trade is now conducted within these preferential trade arrangements, the most significant exception to the WTO's principle of non-discrimination. Governments have entered regional economic agreements motivated by a variety of political and economic considerations. They may prefer trade liberalization on a regional rather than a global basis for several reasons. The chapter then reviews the political economy of regionalism: why RTAs are established; which actors are likely to support regional rather than global trade liberalization; the effects that regionalism has had on the trade and welfare of members and non-members; and the relationship between liberalization at the regional and global levels.
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1. Introduction
Nicola Phillips
This introductory chapter provides an overview of the ‘what, where, and who’ of Global Political Economy (GPE). GPE is a contemporary field of study which first took shape in the 1960s and 1970s under the label ‘International Political Economy’ (IPE). At its core, GPE is the study of the forms of power—economic, political, material, and social—which shape how the world operates. Despite their names, IPE and GPE have both been criticized for their lack of a ‘global’ viewpoint. This book aims to make a real contribution to the project of GPE as a genuinely ‘global’ field of study. GPE is—and needs to be—a genuinely interdisciplinary field, reflecting the best of the spirit of political economy. The chapter then highlights the value of diversity in the academic field of GPE. It explores how this book is organized and what it offers as a resource.
