Definition of Global Political Economy and Basic Concepts

The main characteristics of the International Political Economy can be listed as follows (Al, 2015: 147):

IPE is a branch of science in which the economic system and the political system work together.

IPE is not a branch of science that can only be studied theoretically.

With globalization, the development process of IPE has accelerated.

Due to the large number of terms it covers and uses, it covers a wide area that can be understood with different approaches.

IPE has an autonomous structure.

The emergence and development of IPE as a separate discipline has led to the establishment of international organizations.

IPE, with its four levels of analysis, can find solutions by examining, investigating, criticizing and interpreting many issues such as global crises, wars, collaborations, and human behaviors as a whole. We can sort the four levels of analysis of IPE from top to bottom as global level, inter-state level, state-society level and individual level. The global level is the widest and most comprehensive, and includes issues that affect the global system, from technology to climate change, and states in particular. The inter-state level addresses the power balances between states, the possibilities of political-economic-military cooperation or the mutual interests of states.

As a result of the Vienna Congress of 1815, the borders were redrawn in Europe and the balance of forces was re-determined. In this stable period called “Pax-Britannica”, the most important reason for the UK to be the hegemonic state is that it has achieved great success in the fields of industry and trade. Given the breadth of colonial areas, strong naval forces, industry and stable financial system; Britain has an advantageous position compared to all other states with these advantages (Johnston & Reisman, 2008: 508-510).

The important point here is that mercantilism that emerged by the influence of Machiavelli between the 15th and 18th centuries dominated the international arena. In this period, when the economy and politics were handled separately, the issues such as state, state sovereignty, protectionist policies, limitation of imports and encouragement of exports, and the fact that states did not interfere in each other’s internal affairs have come to the fore and spread to Continental Europe.

In the 19th century, Karl Marx was the thinker who dominated the global system. Karl Marx, who called the existing system capitalism, considered the market as a mechanism of exploitation (Miller, 2008: 13). According to Marx, there is a constant conflict between the bourgeois and working classes that constitute this system, and the exploited working class cannot be rewarded for their labor. He also stressed that it would be wrong to treat politics separately from the economy, and that society can only be fully understood in terms of interdependence and historical conditions.

The world trade has been interrupted due to the world wars, the willingness of states to survive, the desire to protect the borders of the states, political and economic conflicts between the states and similar reasons. This situation revealed the necessity of re-activating and stabilizing world trade. America’s Bretton Woods (1944) system has fulfilled this requirement. With the creation of this system, the “Pax Americana” period, which will last until the beginning of the 1970s, started. Throughout this process, politics and economy have been tried to be handled separately.

In addition to globalization, developments in science and technology and especially in communication technology have caused the states in the global system to be more connected to each other and international policies are affected more by this situation (Al & İrge, 2017: 460). The four IPE structures introduced by Susan Strange prove this. According to Strange, these four structures which we can list as security, information and technology, money and finance, and production and trade form the basis of IPE. These structures, “networks” are interdependent. For example, the concept of security is included in the concept of technology, finance and trade, and the concept of money is included in the concept of finance, production, and security. Accordingly, an event in a structure may affect another event that occurs in the other structure. Thus, these complex structures/ arrangements fall within the boundaries of political economy (Balaam & Dillman, 2014: 14-15).

From this point of view, we can list the main approaches to help us explain IPE as Mercantilism/Realism, Liberalism and Marxism, and alternative approaches as Constructivism and Feminism. There are some concepts associated with these five theories. In the Realist approach, nation states, power, survival, security, and anarchy; in the Liberal approach, the individual, capital flows, open market, and invisible hand; in the Marxist approach, class, interest, exploitation, bourgeois, and proletariat; in the Constructivist approach, idea, norm, discourse, belief, and structure-maker relationship; and in the Feminist approach, concepts such as gender equality, sexist exploitation, and the end to oppression come to the fore (Al, 2015: 147-148).

There are some concepts associated with the Liberal approach; These are; the individual, capital flows, open market, and invisible hand.

For mercantilism, state, national security and military power are outstanding issues in the international system. Economic activities have a supporting role in building the state and realizing state interests. Mercantilism is characterized as the best policy for promoting national prosperity and power (Colander & Landreth, 2002: 44). In addition, the emphasis is on industrialization and technology, with the idea that military power will form the basis of national security (Gilpin, 1987). In this theory, individual wealth is not important, but national wealth is. In other words, if the state has reached prosperity, it is not a problem for the individual to remain poor (List, 2009: 111).

“Complex Interdependence” has three main characteristics (Keohane & Nye, 1989: 50-51; Al, 2015: 151):

• There are many channels connecting societies (nations).
• There are multiple issues in the interrelations of states, and there is no hierarchy in which one has superiority over the other.

• When it comes to complex interdependence, it is out of the question for a nation to use military force in a certain area or subject.

Proletariat: Marx used proletariat to define the working class that is working for a wage for the profit of the employer class with the means of production, which was used to define the subclass of society until the 19th century.

In the 1960s, the Dependency School emerged. The concept of dependence classifies states in the global system at the international economy level as core (developed states-welfare zone) and periphery (underdeveloped-exploited region) states. While the core countries increase their level of prosperity because of this understanding of exploitation, the periphery countries face not only the exploitation but also the problem of not being able to develop. Finally, we must mention Immanuel Wallerstein, who has left its mark on this period with his World System Theory. This theory emerged as a continuation of the analysis of social scientists such as Karl Marx, Max Weber, and Emile Durkheim, and the concept of “semi-periphery countries” was added to the concepts of core-periphery countries. Semi-periphery countries are characterized as both exploiting and exploited countries. Specifically, the core countries interact with the periphery and semi-periphery countries and transform them. Hence, Wallerstein defines the semi-periphery countries as transferring the information and technologies of the western states to themselves, starting to industrialize, and in this process they are both exploiting other countries, and being exploited themselves at the same time. In addition, the proponents of the world system theory share the same view with Lenin as the core-periphery relationship ends with imperialism (Al & Katıtaş 2017).

This theory emerged as a continuation of the analysis of social scientists such as Karl Marx, Max Weber, and Emile Durkheim, and the concept of “semi-periphery countries” was added to the concepts of core-periphery countries. Semi-periphery countries are characterized as both exploiting and exploited countries. Specifically, the core countries interact with the periphery and semi-periphery countries and transform them. Hence, Wallerstein defines the semi-periphery countries as transferring the information and technologies of the western states to themselves, starting to industrialize, and in this process they are both exploiting other countries, and being exploited themselves at the same time. In addition, the proponents of the world system theory share the same view with Lenin as the core-periphery relationship ends with imperialism (Al & Katıtaş 2017).

Economic Globalization: The process of economic globalization is a long-term historical trend of widening and deepening interconnectedness between the world’s peoples.

The first phase started with the conquest of Istanbul, which was under the leadership of Fatih Sultan Mehmet, which ended the Byzantine Empire, closed the Middle Ages, and symbolized the beginning of the New Age.

The second phase/wave of the globalization process is the Industrial Revolution. At this stage, which refers to the period between 1870-1914, the search for raw materials and colonialism reached the highest level.

The period between 1914-1945 refers to the transition period which has a different importance in the process of globalization.

The third phase of the globalization process is the Cold War period between 1945-1990.

In addition to these three waves, the process from the 1990s to the present is considered to be the fourth wave of globalization (Al & Katıtaş, 2017: 22).

IPE addresses the issue of governance in terms of global governance. We can also define global governance as the transfer of national authority to international actors and institutions. International factors need to be taken into account in order to achieve the goals and objectives of the political, economic and social arrangements at the national level (Rodrik, 2012: 21). Many structures such as the United Nations, the IMF, the World Bank and the European Union find their place in the issue of governance. This concept includes three main actors: states as fundamental political actors, market in the sense of actors related to the economy, civil society representing the public. Global governance includes the coordination and regulations of the activities of these three actors. As a result, global governance includes international law, norms, rules, customs, formal and informal structures, regimes as well as common goals, common concerns, understandings and cooperations (Mehmetçik, 2016: 38).

International factors need to be taken into account in order to achieve the goals and objectives of the political, economic and social arrangements at the national level (Rodrik, 2012: 21). Many structures such as the United Nations, the IMF, the World Bank and the European Union find their place in the issue of governance. This concept includes three main actors: states as fundamental political actors, market in the sense of actors related to the economy, civil society representing the public. Global governance includes the coordination and regulations of the activities of these three actors.

Many structures such as the United Nations, the IMF, the World Bank and the European Union find their place in the issue of governance. This concept includes three main actors: states as fundamental political actors, market in the sense of actors related to the economy, civil society representing the public. Global governance includes the coordination and regulations of the activities of these three actors.

The Hegemony issue is one of the most important areas of review of IPE. The academic debates around Hegemonic Stability Theory (HST) form the basis of this topic. The basic assumption of HST is the need for a hegemonic state in order to have peace, order and stability in international politics. HST attaches great importance to power and argues that states are engaged in activities based on the power capacity they have. This theory, which states that the low number of strong states in the international arena will provide the convenience to achieve stability, establishes an inverse proportion between the number of strong states and the level of stability.