Realists question why is conflict inherent in the international system? The concept of neo mercantilism or economic nationalism and political realism;
Economic nationalism and political realism form the basis of this theory in IR, while political realism favours open market competition, liberal governance and industrial development, economic nationalism sees relative gains as more important than mutual gains between states(Gilpin 2001; Guzzini 1994:8-9) Most realist considers the tendency of conflict as structural in IR, but structural in what? According to structural realists like Maugenthau , he consider conflicts in the international system as inherentto the human nature of man fundamentally born wicked and egocentric on the other hand, Waltz contend that conflict is inherent in the international system because of anarchy in the system. The structuralist and mercantilist approach. Liberalists like Nye and (Keohane 2004), put forth the political theory of complex interdependence as the best alternative way for states behaviour and cooperation interaction in the international system. They argue global integration and economic interdependence based on mutual benefit of trade will enhance peaceful and mutual relations among nations. As a result, a free market economic cooperation will have a moderate influence on international politics.(Gilpin 2001).
The concept of neo mercantilism; the seventeenth century mercantilism viewed trade surplus as important to the state, it holds that the prosperity of a nation is dependent upon its supply of capital and sees global trade as unchangeable. it is a response to the declining ability of the liberal perspective to provide explanation and basis for policies. (Gilpin 1975b in strange 1994, p.16) define the contemporary mercantilist as the subordinate to the economy of the state and its interest that range from matter of domestic warfare to those of international security. The assumption is that, economic relations are inherently conflictual and dominated by national self interests and extensive governmental involvement. Economics is determined by politics and only makes sense in the context of the state according to ( Gilpin 1975b; Block 1977; Krasner 1978; Viner 1948 in Strange 1994, p. 16)
Nationalist like Fredrick List, Sir James Stouart sees economic nationalism as the primacy of the state and industrialization, by which means states maintain their autonomy and military power and strength through the imposition of protectionist measures between states. list belief infant industries need to be protected from foreign giant multinationals with monopoly power over market, for example domestic oil companies in Cameroon, Nigeria, Angola, Equatorial Guinea, and Ghana, will find it very hard and difficult to compete with giants like Exxon Mobile, Shell, TotalFinaElf, if they were to trade in a free market, without trade barriers and tariffs, they will be wine off, this is particularly true of the agricultural sector where countries of the gulf of guinea have advantage over their American and EU counterpart but where the EU and American market are highly protected from receiving agricultural product from Africa even though cheaper and more natural .
Strange assume that, what decides the nature of the mix is fundamentally a question of power (ibid p.23), economic nationalism believes that the tendency of states competition among each other, in the international system, either for the obtaining of scarce resources or prestige, is inherent in the international system. as a result of fierce competition at the international level, nationalist considers relative gains to be very important than mutual gain, therefore state practice protectionism, to protect their home industry, and the primary concern and attention is focused on national security and the protection of the state. The realists believes that the process of uneven growth generates conflicts between rising and declining states as they rival to maintain their relative position in the international political structure. if this rivalry between state for major resources is not resolved, it may lead to hegemonic war. (Gilpin 2001). Mercantilism remain very attractive to policy makers under pressure from their constituent for protection, it encourages exports and discourages imports with trade barriers for home industry protection. it is also a source of government revenue from taxes imposed on export and import goods. It helps the government to control the flow of money and in decision making over fiscal monetary policy.
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