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Liberal Internatinal Thery - Essay Example

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Befre beginning, it seems necessary t define the main term in the discussin - Liberalism. The wrd itself means many things t many peple, but fr the purpses f this essay Liberalism refers t an ecnmic apprach that values market autnmy, meaning the market shuld be allwed t functin freely, withut the interference f the state (in the case f the U.S., the Federal Gvernment)…
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Liberal Internatinal Thery
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Download file to see previous pages "The market is such an extrardinary institutin because it manages t harness this ratinal, self-riented behaviur in service f the cllective gd. The market generates grwth and prsperity fr all, nt because any individual actr intends, r seeks this utcme, but as an unintended cnsequence f each agent's determined effrts t secure his wn happiness. The "invisible hand" f the market place c-rdinates the activities f innumerable self-riented ecnmic actrs, wh may nt care ne whit fr each ther's welfare, in such a way that scial gd is assured." (p.5)
Having defined Liberalism, the fcus shall shift back t its histrical backgrund. Adam Smith first frmalized Liberalism as a system int the written wrd thrugh his nw well-knwn bk The Wealth f Natins. Frm Smith's wrk, as well as that f earlier thinkers such as Jhn Lcke, Liberalism emerged as an ecnmic system gverned by "natural law", and that if practiced by natins tgether, and nt simply ne natin by itself, wuld result in what's knwn as a psitive sum game. This term refers t any system where each f the players benefits frm participatin. In this way, Liberalism culd be cntrasted with ther perspectives, such as mercantilism, which emphasizes a zer-sum game - ne natin gains when anther lses. Liberalism began t take hld in the 18th century as Eurpe's grwing merchant class sught t reap the benefits f their wn activity, rather than simply pass their prfits alng t a third party, such as a king. As time wre n, separate factins began t appear within the Liberal camp. These factins still exist tday, and thus merit discussin. The grups came t be knwn as rthdx, interventinist, and institutinal liberals. rthdx liberals are "mainly cncerned with prmting 'negative freedm,' r the freedm f the private sectr and the market t functin with minimal interference frm the state." Althugh this categry did nt exist while he was alive, Adam Smith wuld have belnged t the rthdx schl. The interventinist liberals adhere t the belief that "an exclusive fcus n negative freedm is t narrw because we cannt always be certain that the private sectr and the market will be prgressive and prduce widespread benefits." Because they acknwledge the ptential dwnside t a cmpletely unregulated market, interventinists admit that at times sme state invlvement may becme necessary t maintain a level playing field within the market system. Althugh the practices f the final factin may be well knwn, its name des nt ring many bells. Institutinal liberals are similar t interventinists in that they acknwledge the need fr state invlvement, but they differ in that they "favur the develpment f strng internatinal institutins" t regulate and stabilize the wrld, r internatinal ecnmy. Thus it is the institutinal liberals wh have the mst influence ver the liberal apprach t IPE, fr they are the nly factin t prmte the establishment f internatinal ecnmically driven institutins whse purpse is t ensure adherence t the Liberal ecnmic mdel. Accrding t Thedre Chn, with respect t IPE Liberals believe that,
"If existing internatinal relatinships d nt bring abut grwth and efficient allcatin f resurces....the prblem is nt with the internatinal ecnmi ...Download file to see next pagesRead More
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