Hope University
جامعةالرجاء
Kampala University Masters Program Course name:
MIR D
Subjects:
IRT and IPE
Title:
Assignment IPE
Student Name: Abdirisaq Moh’ed Farah-Sankahaji
IPE Assignment Answers [International Political Economy] Q1. Explain briefly the relationship between politics and economics? As we can understand the three words of this subject-I.P.E- which stands for International Political Economy, there is a close relationship between the three acronyms. But before discussing the relationship between politics and economy, let’s first underline and define IPE in general in order to get some insight about our argument.
IPE is a new subject when we are dealing it as a separate standing subject. It is about thirty or so years old, but in general it is not a new course- you can trace it back to seventeenth and nineteenth century in Adam Smith, the Scottish scholar and economist, era. International political economy is a branch of political science which deals with the relationship between economics and politics as an international level. Politics and economics are closely interrelated aspects of international relations and each one affects the other directly or indirectly. This interrelationship has become more important in these days for the world becomes like one village through the idea of globalization. As we know economics has recently become crucial internationally because of the dramatic increased trade levels, ever-tightening economic interdependence between nations and the growing impact of international economics on domestic one. So politics must be the only tool and mechanism which countries use to develop their economic ties via diplomatic means. There some writers who argue that the relationships between economics and politics is a reciprocal one. Jack and Karen are among hose. They said, “On one hand, politics largely determines the framework of economics’ activity and it tends to serve the interests of dominant groups ; the exercise of power in all its forms is a major determinant of the nature of an economic system.” The writers continue their argument by further saying these words which are really robust and to the point, “On the other hand, the economic process itself tends to redistribute power and wealth; it transforms the power relationships among groups.” From their point of view, we can draw a line that the dynamics of international relations in the modern world is largely a function of the reciprocal interaction between economics and politics. In short, although economics and politics are two different fields, however there is a great and inseparable relationship when it comes to international grounds. And the word international is the linkage between the two of them.
Q2. Explain international trade from: (A) Political point of view (B) Economic point of view
(A) Political Point of View By answering the first question in group, we really and fully profess that domestic or customary political economic view and international political economic view interrelate to each other regarding the long history of world economic order. Examining from political point of view, international trade became very significant subject which was the product of interrelating subjects of international relation, international politics and international economics, which was really required a more integrative analysis which resulted creation of International Political Economic where the international trade has been playing an effective role in politics and economics globally. Regarding the political influence on international trade, after making long research study on the subject by collecting primary and secondary data, we have come to known that organizations including governmental and non-governmental, individuals-most of them, politicians, leaders of culture and politics, companies and literature inherited from previous trade issues, have had impact on international trade in political matters or issues. Let’s take this as an example as follows: The work of Adam Smith, the eighteenth-century Scottish Philosopher and political economist, is till considered as classical statement of liberal political economy, because he laid down the liberal principles which guided economic policy-making that the international trade was part of that ideology politically for liberal political economy advocated a marked economy that promotes individual enterprises and the state’s role was and is to support, not stop, disturb or hinder the free interplay of market forces where we can undoubtedly feel, see and understand that there can be great, concrete involvement of International Trade in Political wise. (B) Economic Point of View Since we-as a group-have mentioned in the above answer that several subjects such as politics, economy and international relations have ever been interrelated, as we comprehended, the international trade in political and economical wise still interconnect or correlate that because regarding IPE theories, classical liberals argued that all nations can get advantages from expanding and intensifying global market through promoting free trade and international division of labor.
We also understand that the scholars wanted to expand peace around the universe so they developed new process of free international trade which played an active role in both growth of global economy and security, the ideology was called sometimes in nineteenth and twentieth centuries “Peace-Through-Trade”. The other important thing is that a theorist, David Ricardo, developed that all nations could make use of international free trade economically including those who don’t have any industries to have some global economic advantage because they could have some farms and produce some products by selling, importing or trading their crops while those who have manufactures could make use of producing brands of products and putting hundreds of employees into operations, the theorist had explained that both groups could enjoy equal advantages of economic growth regarding free international trade. One of the other significant steps in economic growth regarding international free trade was that the United States and its allies began rebuilding the foundation for an open and liberal international economy, which was more fruitful for the international free trade in those days and which was the-as many other of modern theorists believe, the product of today’s economic booms around the universe, the united states and its allies formed a new institutional order, comprising the United Nations, the World Bank, the International Monetary Fund and the GATT Trading system, given unwavering and dependable form of rules and norms for international economic relations.
• Discuss the role of Multinational Companies/Corporations (MNCs) in contemporary international economy in general and in African economy in particular. It is obvious that the multinational companies (MNCs) have a significant role on international economy and the way it works. In this discussion we will try to give some highlights over their importance to the world in general and in African economy in particular. However before that we have to go back and say something about International Organizations for the MNCs are part of IOs.
IOs didn’t come overnight, but there had been a necessity which brought them to appear or become functioning. Before the world War One and Two there was not much need to get groups which connect the world although there were some, no matter their capacity, quantity and quality. After the Wars, the world opens its eyes and from there the UN, which is the greatest international organizations ever founded, was established by the victorious allies mainly UK, France and US at Sanfransisco in America. The main duty of international organization is cooperation among state members. The dramatic growth of all types of IOs stems from increased international contact among nations. There is also economic interdependence and mounting importance of transnational issues and political movements which are sometimes contradictory to each other. So they became the key solvent when it comes to solving the differences among states. There are some observers who argue that IOs had taken the role of the states in one way or the other. But the majority of writers argue that International Organizations are best suited to promoting cooperation among states rather than trying to replace the statecentered system. The goals and objectives of IOs are numerous but according to JOHN T. the current of international organization is not but, “ The product of three lines of development: the idea that humans should live in peace and mutual support, the idea that the big powers has a special responsibility for maintaining order, and the growth of specialized international organizations to deal with narrow nonpolitical issues.” The growth of economy has ever been interrelating to each other from continent to another. So, MNCs have played greater roles in economic boom up in every country or let’s say from country to country which really spread from continent to another, which the globalization today play an active role in finding access to bring every MNCs’ efforts of career to a far corner of the universe in seconds and minutes regarding the internet which is one of the wonders that was launched during the globalization era. Multinational Companies or corporations role in African Economy
The MNCs have ever been playing a concrete role in every country whether they are among developed countries, developing or the third world countries as well as the continents as we mentioned above, let’s come to discuss about its role in African continent on economic wise. We are quite sure that MNCs have always been bringing great income into the continent. For example, they always hire employees which receive salaries from the companies, they buy raw materials from the country that they operate which is part of the economic growth of the continent. The continent make use of levying taxes the good that the MNCs importing into different countries inside it, it also gets incredible advantage taxing the GDP and the Per Capita income of its society that works the different companies of the MNCs which are the outstanding role that the Multinational Companies or Corporations play the sweep economic growth in Africa. Finally, we cans say that MNCs always move their capital or part of their capital in the countries of the continent [Africa] they are operating that brings good and undeniable advantage for both peoples, countries and the continent merely. However, as every advantage carries its obstacles in it, they are on the other hand part of the African conflict in one way or the other.
References • Essential Readings on World Politics 3rd edition mmmm mmm m By Karen A. Mingst and Jack L. Synder • International World Politics on the World Stage 6th edition m m By John T. Rourke • Our own experience • Readings from Websites mainly by using Google search LSE, LONDON SCHOOL OF ECONOMIC AND POLITICAL SCIENCE
HU KU LESSONS
NB We used our own words mostly as you-our lecturer- advised us. We did so after long discussion among us- as a group. Thanks.