Global Political Economy

Abstract

The paper discusses the concept of global political economy. The research paper discusses the relevance of Clausewitz theory and also highlights the basic approaches of global political economy, followed by the problems that led to global political economy and the conclusion.Global Political Economy

Introduction

Global political economy also known as international political economy is concerned with global trade, fiscal and monetary policies of different countries. The foreign policies adopted by a particular country affect the economical and political situation of the other countries also fall under the context of international political economy. IPE also analyzes the international relationships with the political economy of the countries. Many scholars and researchers believe that IPE is the process in which the political forces form the systems which represent the economic interactions and the effect of these interactions on the political structures of many countries.

The scholars of international political economy are constantly debating about the globalization both in the academic and popular aspect. The scholars are also analyzing the theories of i8nternational trade and the relationship between democracy and the markets. The scholars believe that both economic and political power should be taken into consideration as they both are interrelated to each other in a complex way.

Scholars and researchers believe that in order to ensure the success of international political economy, the problems of globalization and corruption should be eliminated from all over the world economies. Adequate measures need to be taken to overcome the issues of environmental deregulation and depletion of natural resources. In addition, proper institution should be formed to regulate and stabilize the international political economy.

Discussion

International political economy emerged after the Second World War. Many international institutions were made in order to ensure that countries didn't follow the beggar-thy-policies that led to the great depression. The cold war delayed the development of these institutions, as United States got busy in managing the reconstruction of Europe and the monetary policy. The developing countries were not satisfies with the current international political economical policies and forced to form a new international economic order. The new economic challenges in 1970's and the rise in oil prices forced the developed nations to develop a framework that would focus on the structure and nature of the world economy. (Milner,1998, pp.112).

Clausewitz theory

Clausewitz believes that politics is an essential branch of war and terror. With the passage of time military events progress and are restricted due to political reasons. Clausewitz believes that politics influences war in all aspects. The political policies give rise to war and at the same time also assist in moderating it. Hence politics always stands above war and modifies it when it requires. Clausewitz also argues that policy makers should not use war as a weapon to achieve unwanted purposes. Clausewitz has developed a complex and unique relationship between war, politics and peace. His work remains comprehensive and has contributed to modern strategies of war peace and politics. Clausewitz theory is based on human to human relationship and helps to develop human capital. One biggest weakness in ...