John T. Picarelli
Transnational crimes are crimes that have actual or potential effect across national borders and crimes that are intrastate but offend fundamental values of the international community. The word “transnational” describes crimes that are not only international, but crimes that by their nature involve cross-border transference as an essential part of the criminal activity. Transnational crimes also include crimes that take place in one country, but their consequences significantly affect another country and transit countries may also be involved. Examples of transnational crimes include: human trafficking, people smuggling, smuggling/trafficking of goods, sex slavery, terrorism offences, torture and apartheid. Contemporary transnational crimes take advantage of globalization, trade liberalization and new technologies to perpetrate diverse crimes and to move money, goods, services, and people instantaneously for purposes of perpetrating violence for political ends. While these global costs of criminal activity are huge, the role of this criminal market in the broader international economic system, and its effects on domestic state institutions and economies, has not received widespread attention from an international political economy (IPE) or political science perspective. Given the limits on the exercise of extraterritorial enforcement jurisdiction, states have developed mechanisms to cooperate in transnational criminal matters. The primary mechanisms used in this regard are extradition, lawful removal, and mutual legal assistance.
William Biebuyck and Judith Meltzer
Cultural political economy (CPE) is an approach to political economy that focuses on how economic systems, and their component parts, are products of specific human, technical, and natural relations. Notwithstanding longer historical roots, CPE emerged as part of the “cultural turn” within the social sciences. Although it is often seen as countering material determinism and the neglect of culture in conventional approaches in political economy, the cultural turn was less about “adding culture” than about challenging positivist epistemologies in social research. For some, cultural political economy continues to be defined by an orientation toward cultural or “lifeworld” variables such as identity, gender, discourse, and so on, in contrast to conventional political economy’s focus on the material or “systems” dimensions. However, this revalorization of the nonmaterial dimensions of political economic life reinforces a sharp distinction between the cultural and the material, an issue which can be traced to the concept of “(dis)embedding” the economy and subordinating society. A more noticeable development, however, is the increasing orientation of critical (CPE) analyses of global development toward the “economization” of the cultural in the context of mutating forms of neoliberalism. Concomitant to the economization of the cultural in narratives of global development is the “culturalization” of the economic. Here attention is paid not just to the growth of cultural industries but to the multiple ways in which culture has been normalized in discourses of global and corporate development.
Peter M. Haas
The literature on the political economy of the global environment is a hybrid of political economy, international relations (IR), and international environmental politics, looking at the formal and informal institutional factors which give rise to unsustainable habits. The physical environment has long been the subject of social scientists, who recognized that patterns of social activity might contribute to environmental degradation. One of the most common formulations of environmental issues as a collective action is through the metaphor of the Tragedy of Commons, which argues that overpopulation worldwide would undoubtedly contribute to extensive resource depletion. Following the formulation of the core properties of environmental issues as lying at the interstices of a variety of human activities, implications followed for how to conduct research on international environmental politics and policy. Realist and neorealist traditions in international relations stress the seminal role of power and national leadership in addressing environmental problems. Neoliberal institutionalists look at the role of formal institutional properties in influencing states’ willingness to address transboundary and global environmental threats. On the other hand, the constructivist movement in international relations focuses on the role of new ecological doctrines in how states choose to address their environmental problems, and to act collectively. Ultimately, the major policy debates over the years have addressed the political economy of private investment in environmentally oriented activities, sustainable development doctrines, free trade and the environment, environmental security, and studies of compliance, implementation, and effectiveness.
Numerous crises have occurred since the beginnings of the modern economic system, from the Dutch Tulip Mania of 1636 and the South Sea Bubble of 1720 to the Dollar Crisis and Asian Financial Crisis. Scholars have written about the causes and remedies of financial crisis, resulting in a substantial amount of literature on the subject especially after the Great Depression. The writing on financial crisis declined between the end of World War II and the monetary crises in the early 1970s, but has become vibrant again since the 1980s. Some of the earliest voices that contributed to the intellectual history of studying financial crisis include Adam Smith, Karl Marx, David Ricardo, Walter Bagehot, and John Maynard Keynes. These men provided the foundation for understanding the central issues and questions about financial crisis and influenced the debates and scholarship that followed. One such debate involved monetarists vs. business cycle theorists. The monetarists argue that crises are caused by changes in the money supply, while those favoring a business cycle approach insist that expansions and contractions are part of economic interactions and so the economy will at times experience crises. As crises continue to affect both domestic and global financial markets, more perspectives are added to the discussion, including those that invoke rational expectations and economic models, along with those that draw from international political economy. There are also questions that remain unanswered, such as the issue of crisis response and that of financial fragility.
A commodity chain refers to “a network of labor and production processes whose end result is a finished commodity.” The attention given to this concept has quickly translated into an expanding body of global chains literature. Research into global commodity chains (GCC), and later global value chains (GVC), is an endeavor to explain the social and organizational structure of the global economy and its dynamics by examining the commodity chains of a specific product of service. The GCC approach first emerged in the mid-1980s from world-system research and was reformulated in the early 1990s by development scholars. The development-oriented GCC approach turned the focus of GCC analysis to actor-centered processes in the global economy. One of the initial criticisms facing the GCC approach was its exclusive focus on internal conditions and organizational linkages, lacking systemic attention to the effect of domestic institutions and internal capacity on economic development. Other critics pointed to the narrow scope of GCC research. With the huge expansion in global chains literature in the past decade—not only in volume but also in depth and scope—efforts have been made to elaborate the global chains framework and to render it industry neutral, as partly reflected in the adoption of the term “global value chains.” Three key research themes surround these recent evolutions of global chains literature: GVC governance, “upgrading,” and the social construction of global value chains. Existing literature, however, still has theoretical and methodological gaps to redress.
Hegemony emerged as an analytical term to conceptualize different historical periods out of the combined post-1945 historical context of two key events: the dissolution of an international political order founded upon European colonial empires, and the establishment and evolution of a postwar liberal international economy under U.S. leadership. Within the subdiscipline of International Political Economy (IPE), the genesis of the concept of “hegemony” or “leadership” has two sources: the idea of hegemonic order or dominance within the world economy as articulated in Immanuel Wallerstein’s World-Systems Theory in the early 1970s, and the publication of Charles Kindleberger’s analysis of the Great Depression that initiated a debate involving neorealist and liberal-oriented scholars around what subsequently become known as “hegemonic stability theory.” John Ikenberry also articulated a nuanced understanding of hegemony from a liberal-institutionalist perspective with regard to the post-1945 international order. There exists a substantial amount of literature on the theory and history of hegemony within IPE, and much of this discussion has been fueled by ongoing developments in the world economy. Critics of hegemony situate and embed state power and behavior within the socioeconomic structure of capitalism, and also focus on class agency as central to the establishment and evolution of hegemonic orders. To varying degrees these scholars have drawn on the theory of hegemony developed by Antonio Gramsci.
Information and communications technologies (ICTs) constitute a potentially transformative force in world politics. The industries associated with these technologies are growing rapidly, and some have argued that their importance in the overall economy at both the national and global levels increased in recent decades. ICT industries include both goods producers and service providers. ICT manufacturing includes all the goods-producing industries that use semiconductor components, such as consumer electronics, the computer industry, the telecommunications equipment industry, and industrial and military electronics. Within each of these groups, there are sub-industries that specialize in particular segments of the market. The services side of ICTs is also very large in terms of revenues and employment, and is growing rapidly. ICT services include, among others, the software industry, telecommunications services, data processing, and web-based information services. Many scholars argue that the importance of ICT industries goes beyond the revenues and employment generated in the industries themselves, however. ICTs may also be transformative in that they reduce transaction and communications costs in the overall economy. They make possible new forms of organization of human activity, especially as globalization and digitalization is progressing rapidly in the recent decades. Such processes have attracted the attention of international relations scholars, as they have been focusing on international regimes governing ICT-related activities in the past decade.
The international financial institutions (IFIs) have adapted and changed their policies over time to focus on global justice and poverty alleviation. This evolution is explored, with close attention to the role of political economy scholars and international events that increased the pressure on the IFIs to change their policies. Events such as the failure of structural adjustment policies, and the increasing role of nongovernmental organizations after the end of the Cold War were strong forces advocating for both debt relief policies and efforts designed to alleviate poverty. Problems surrounding the deadline for the Millennium Development Goals in 2015 and the increased role of the IFIs during the 2008 global financial crisis are also discussed.
The concept of international political economy (IPE) encompasses the intersection of politics and economics as goods, services, money, people, and ideas move across borders. The term “international political economy” began to draw the attention of scholars in the mid-1960s amid problems of the world economy and lagging development in the third world. IPE was later replaced by the term “global political economy” (GPE) in recognition of the fact that what happens in the world is not only about interactions between states, and that the global political economy includes many different kinds of actors. In general, GPE better suits the reality of a globalizing world. Early works that explored the relationship between economic activities and state interests originated long before the term “political economy” was coined. Examples are those by Aristotle, Kautilya, Ibn Khaldun, and Niccolò Machiavelli. Adam Smith used the word “mercantilism” to describe the various theories and policies on how states should intervene in markets in order to increase wealth and power. “Mercantilism” was supplanted by “economic nationalism” in the twentieth century, followed by classical liberalism, neoliberal institutionalism, and neoclassical liberalism. Whereas both mercantilism and economic nationalism emphasize state power and state interests, liberal writers such as John Locke and Immanuel Kant argue that possessive individualism and the individual are the bearer of rights. Other major schools of thought that have conceptualized important concepts, relationships, and causal understandings in IPE include Marxism and its variants, feminist approaches, and communitarianism.
Transnational corporations (TNCs) are networks of related enterprises, composed of a parent in one country and subsidiaries or affiliates in other countries. They play a central role in the global economy, and have recently come into focus in international political economy (IPE) scholarship. Early studies on TNCs and foreign direct investment (FDI) took place in the late 1960s and the 1970s. FDIs are a type of cross-border investment in which a resident in one economy establishes a lasting interest in an enterprise in another economy, in order to ensure a significant degree of influence by the direct investor in the management of the direct investment enterprise. Both TNCs and FDIs were controversial in the field, as tensions arose between TNCs and host states and people began to question whether or not FDIs were beneficial for developing countries. By the 1980s and 1990s, the world fell into the grip of financial crisis, and the study of TNCs fell largely into neglect, only to witness a revival during the 2000s. Since then, while the field of IPE has returned to focus its research on FDI, the current literature has taken a different track from the earlier work, and the results have made important contributions to answering questions about the effects of FDI and about what affects firm–state bargaining or the governance of TNCs in the twenty-first century. Too much of the recent literature, however, still focuses narrowly on explaining investment flows.