International Political Economy Phenomenon and Its New Ord…

1 I N T E R N A T I O N A L P O L I T I C A L E C O N O M Y PHENOMENA AND ITS NEW ORDER (From Free Trade to Anti- globalization through Freedom Perspective) Nofia Fitri (The Founder of National University’s Students Studies Group/KSM UNAS) Graduate Student of Eastern Mediterranean University, Faculty of Business and Economic Department of International Relations, Famagusta, Mersin 10, TURKEY Email: [email protected] I. From Smith to Stiglitz: Between Pacesetter and Pacemaker Scholars had been stated that the International Political Economy (IPE) phenomena were emerged when the global politics constellati on changing after the World War II, they called this ‘the new era of modern economic. ’ Af ter the Gr ea t Depre ssi on of 1930, Th e Br et ton Woods Syste m established (1944). Dur ing those times many countr ies used the con cep ts of Welfare State by Ke ynes as hi s publ is hed in fl uen ti al wor k, “ The General Theory of Employment: Interest and Money ”. Ther ea fte r the dy nami c of IPE wa s sta rt ed, while it cont in ue, the IPE studies was closer to it shape. Had been marked as the international financ ial structure found it agreement, fixed exchange rate simultaneously with the established of IMF and World Bank as the world financial institutions. The deficit of balance of payment among US and Europe brough t The Bret ton Woods Syste m in to its end. Pap p stat ed that the col lapse of the Gold Stand ard and the break up of the Bretton Woods system (1970s) showed that the established of IPE was began with a world new system, then known widely as interdependent. 1 Withi n this cond iti ons , as bein g expl ain ed by Papp, United States (US) found out there are emerging many countries with a new-economic power (with abundant of oil especially), and the performed of economic growth on amount of coun trie s. Duri ng thos e time s (19 30-10 80) also one of the import ant within the begi nni ng of IPE studies, Marxian scholars who sought the economic development problems of developing countrie s presented the Import Substitutio n (IS) for the solution, known as Structuralists . This policy had been implied by some countries in Latin America and East Asia. Simultane ously with the failures of IS, at the beginning of 1970s following the breakup of The Bretton Woods System and as the effect of oil embargo by some of the Middle East countrie s as their respond to against the US within the Yum Kipp ur War, the principle s of neo- Liberalism and Fre e Trade were appeared. Started wit h the very con tro versi al book of Rober t Nozick “ Anarchy, State and Utopia ” in US as the basic steps of Reaganomics together with the Keith Joseph in United Kingdom, who became the architect of Thatcherism, the idea of new liberalism was being adopted inspired by the basic philosophy of Locke, Smith, and Mill about freedom rhetoric . Developed by Chi cag o Sc hool, Fr ie dman thr oug h the “ Capitalism and Freedom” sought to establish an argument about the interconnectedness of economic and political freedom, thus the new era of neo-liberalism begun. The principle of Neo-liberalism and Free trade implied by many countries included developing countries, which brought the emerging of Newly Industrializing Countries /NICs and became more potential for the advanced countries’ market ( Big Emerging Markets/BEMs). But otherwise, the developing countries also have an opportunity to expand their economic, reach the global market. Finally the WTO established to erode protec tionism polic y while in the ot her han d, interna tio na l tra de arra nge men ts bei ng kin d of optio ns for some count ri es for express themselves within the free trade. 1 For some sc hola rs, this sys tem is not full y acc ept ed, whi le they have been thought about that the evidence showed it is not interdependent, but dependent, knows as dependency theory , which has been buil d by many schola rs from Latin America, based of the theory of Marxian.

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International Political Economy Phenomenon and Its New Ord…