IPE Theoretical Frameworks

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IPE- Theoretical Frameworks

• Lecture for LAPE, Fall 2005
• Anil Hira, SFU

2
IPE- basic defn. Financial History

• IPE vs. econ IR- salient diffs power, money as
  variables levels of analysis stakes abs. vs.
  relative gains problem /types of actors
• First concern Financial stability- XRs
• Gold Standard- England as guarantor
• US takes role- post WWII- BWs conferences
• sets up IMF, WB
• move fr. Au to standard US as guarantor
• Collapse of BW agreement in early 1970s, devt. of
  flexible XRs devt. of intl K mkt pd. of
  stagflation
• Debt Crisis of 1980s
• EU- Euro agreement in 1990s
• Q.s about new intl financial architecture
• Asian flu

3
IPE- Basic History of Trade Agreements

• GATT- post WWII- part of BW agreements
• GATS- 1970s- incl. services
• WTO- 1995
• EU- ECSC- 1950sECM 1990sexpansion today
• NAFTA- 1989
• MERCOSUR- 1994
• Current impasse in trade agreements ftaa, apec,
  etc
• More info fr. CH film and T. Cohn, Global PE

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Key Qs for IPE Frameworks

• Key r/ship states and markets
• Key q. possibilities for cooperation
• abs or relative gains?
• Q for devt external vs. internal power

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Implications? Which theory is true? -Importance
of Consistency
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Which goal is correct?
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What is the appropriate unit of analysis?
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Shortcomings of IPE theories

• agent-structure problem
• intl structure vs. state vs. interest group
  problem (state autonomy/capacity)
• class vs. corporation vs. socio-eco grouping
• patterns of responses
• general commonalities policy prescriptions
• diffs among countries time periods
• Implications1 No set intl or domestic structure
  will explain eco policies room for state
  dec-making
• Implications2 Need for a dynamic flex. theory

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Which Approach Is Best?

• Importance of application understanding the
  factors in play in re part. case/question
  straightfwd
• Importance of consistency Theory as a way to get
  beyond the idiosyncratic and as way to unify
  policy
• Applicable across time and space
  multidisciplinary
• Leads to pragmatic suggestions that can influence
  policy
• Recognizes possibilities for creative change, new
  forces, ideas, structures
• Considers both material and non-material forces
  of action

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Final Thoughts/Goals

• Be able to recognize and categorize any work acc.
  to approach- huge advs. (lit rev)
• Recognize the pols/groups behind each paradigm
• Develop the approach that suits you best able
  to justify/juxtapose to other app.s
• Be open minded as to app. and changing nat. of
  reality
• Theory and application mut. informative
  agent-structure mut. informative
• We now turn to assessing each major framework
  used to explain LAPE