International Political Economy Essay Example

International Political Economy (IPE) also known as Global Political Economy is an academic discipline within the social sciences that analyses international relations in combination with political economy. For example, changes in world oil prices, the global reach of transnational corporations, the impact of volatile currency movements are all demonstrate the interconnectedness of polities and economics in what is now an increasingly internationalised world system. In addiction, international political economy is based on a notion that the focus of politic conflict, at both the domestic and international levels, is the concern over who get what, when and how. There have traditionally been three broad categories of theoretical approach to the study of international political economy: Liberalism, Realism and Marxism.

Liberal approach

In IPE terms, Liberalism is an approach associated with classical economic or neoclassical economics. Liberal view believes in freedom, for private powers at the expense of public power (government). Neoclassical economists, who are generally Liberals, believe firmly in the superiority of the market as a mechanism for allocation scarce resources.

Liberals believe the economic role of government should be quite limited. Many forms of government intervention in the economy intentionally or unintentionally restrict the market and thereby prevent potentially rewarding trades from occurring.

Liberals generally support the provision by government of certain public goods or services that benefit society and that would not be provided by private markets. For example, the government plays an important role in supplying the conditions necessary for the maintenance of a free and competitive market. Governments must provide the defence of the country, protect property rights, and prevent any unfair collusion or concentration of power within the market. The government should also educate its citizens, build infrastructure, and provide