IPE Session 7 revision slides Part1

IPE Session 7 revision slides Part1 - What are they?...

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Mercantilism Liberalism Structural Marxism What are they? Mercantilism emphasize the goals of national self-sufficiency , a favourable balance of trade, vitality of key industries and, behind all, the promotion of the power of the state. Early Mercantilist political economy asserts the centrally of politics. Economics is not separated from its political context, but instead is considered an important means of enhancing state power. Liberalism defends that international trade should be conducted by private actors, free of governmental control . This argument is based on the thought that the most important value to me maximized by the state is the consumption of its citizens, usually summarized by a nation’s gross national product. The central meaning of its theory is often briefed by the French proclamation laissez-faire ! Marx rejected the assertion that exchange between individuals’ necessarily maximizes the welfare of the whole society. Accordingly, he perceived capitalism as an inherently conflicted system that should be replaced by socialism. Marxists believe that classes are the dominant actors in the political economy . Specifically, they identify as central two economically determined aggregations of individuals or classes: capital or the owners of the means of production, and labour, or the workers. Foundations Like realist versions of power, mercantilists believed that relative wealth was more important than absolute wealth. Capitalism, self-interest and rational decision making, markets being the best process for allocation of resources, competition of producers, demand and supply, individual freedom etc. Marxism sees history evolving through
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IPE Session 7 revision slides Part1 - What are they?...

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