Neo-liberalism

1. Neo-liberalism IR2501 Theories of International Relations

2. Dr. David Galbreath Lecturer in International Relations d.galbreath@abdn.ac.uk Office: F36 Edward Wright Building Hours: Friday 14-17

3. Neo-realism: A recap • Five key points to remember about Neo-realism • States live in anarchy • States are the primary actors • States are unitary actors • States are rational actors • States are power-maximising • Problem: If this the case, why do we not see more conflict?

4. Liberalism and institutions • Post-1945 International Relations: • Rise of international institutions as collective actors • Collective action problem • Rise of European integration • Rise of Pluralism in the US • Pluralism focused on new actors (transnational corporations, non-governmental organizations) and new patterns of interaction (interdependence, integration).

5. Neo-liberalism • Other liberalisms • Commercial • Republican • Sociological • Institutional liberalism

6. A new liberalism • Neoliberalism’s challenge to contemporary realism. • They explain the durability of institutions despite significant changes in context. • Institutions exert a causal force on international relations, shaping state preferences and locking them in to cooperative arrangements. • Feedback loop • Democratic peace liberalism and neoliberalism are the dominant strands in liberal thinking today.

7. Neo-liberalism • Neo-liberalinstitutionalism is rooted in the functional integration theoretical work of the 1950s and 60s and the complex interdependence and transnational studies literature of the 1970s and 80s. • IR 2001 International Organisations in Europe • Neo-liberal institutionalists see institutions as the mediator and the means to achieve co-operation in the international system.

8. Neo-liberalism • Neo-liberal institutionalists recognize that co-operation may be harder to achieve in areas where leaders perceive they have no mutual interests. • Neo-liberals believe that states co-operate to achieve absolute gains and the greatest obstacle to co-operation is ‘cheating’ or non-compliance by other states. • This is were institutions come in.

9. The neo-neo debate • The neo-neo debate is not a debate between two polar opposite worldviews. • They share an epistemology (shared knowledge), focus on similar questions and they agree on a number of assumptions about international politics. • This is an intra-paradigm debate.

10. The neo-neo debate • Neo-liberal institutionalists and neo-realists study different worlds of international politics. • Neo-realists focus on security and military issues - the high politics issue area. • Neo-liberalinstitutionalists focus on political economy, environmental issues, and lately, human rights issues. These issues have been called the low politics issue agenda.

11. The neo-neo debate • Neo-realists explain that all states must be concerned with the absolute and relative gains that result from international agreements and co-operative efforts. • Neo-liberal institutionalists are less concerned about relative gains and consider that all will benefit from absolute gains. • Neo-realists are more cautious about co-operation and remind us the world is still a competitive place where self-interest rules.

12. The neo-neo debate • Neo-liberal institutionalists believe that states and other actors can be persuaded to co-operate if they are convinced that all states will comply with rules and co-operation will result in absolute gains. • This debate does not discuss many important issues that challenge some of the core assumptions of each theory. • For example, neo-realism cannot explain foreign policy behavior that challenges the norm of national interest over human interests. • Neither theory addresses the impact of learning on the foreign policy behavior of states.

13. IR and Globalisation • Globalisation has contributed to a shift in political activity away from the state. • Transnational social movements have forced states to address critical international issues and in several situations that have supported the establishment of institutions that promote further co-operation and, fundamentally challenge the power of states. • How do theories of IR address globalisation?

14. Neo-liberals and neo-realists on globalization • Neo-realists think that states are still the principle actors in international politics. • Globalization challenges some areas of state authority and control; but, politics is still inter-national. • Neo-realists are concerned about new security challenges • These challenges result from uneven globalization, namely, inequality and conflict.

15. Neo-liberals and neo-realists on globalization • Globalization provides opportunities and resources for transnational social movements that challenge the authority of states in various policy areas. • Neo-realists are not supportive of any movement that seeks to open critical security issues to public debate. • Free market neo-liberals believe globalization is a positive force. Eventually, all states will benefit from the economic growth promoted by the forces of globalization. (positive sum-game)

16. The promise of Neo-liberalism • Many neo-liberals believe that states should intervene to promote capitalism with a human face or a market that is more sensitive to the needs and interests of all the people. • New institutions can be created and older ones reformed to prevent the uneven flow of capital, promote environmental sustainability, and protect the rights of citizens.

17. Neo-liberalism: A recap • Five key points to remember about Neoliberalism • States live with institutionalised cooperation • States are one of many actors • States are complex actors • States are still rational actors • States seek co-operation over conflict