It is political infrastructure that sets the foundation for the incorporation of countries into the globalized economy, and when the methods of incorporation benefit the ruling class, which were established and have been maintained through the legacy of colonialism, rather than the governed populace; there will inevitably be stagnant development in both the governmental and economic spheres. Therefore, in terms of the politics of development in the middle east, whether or not a country had colonial intervention (and the extent to which the intervention occurred) explains the political structures currently in place. Subsequently, post-development theories then serve to explain the establishment of development as a social construction based on the ideals and influences of the foreign actors that extorted influence over the region. Scholars in post-development theory argue that development is intrinsically flawed in that it reflects Western hegemony; as it is guided by Western interests and emphasize the fact that development is se to to a western standard for the rest of the world to (unfeasibly) emulate. In the words of Maiava, ‘Development as we know it is interventionism,’ and it is difficult to imagine development without intervention: no
Liberalism, along with realism, is one of the main schools of thought in international relations.According to liberals, international relations is not only controlled by the relationship between states but also includes and emphasises the role of other actors. During WWI and WWII the main academic competitor to the Realist paradigm was idealism., They looked into numerous beliefs of realism and recommended possible ideologies to alter the world pursuing supremacy and conflict into a unique one in which peace and cooperation amongst states might conquer. The faith that liberals have is that substantial universal cooperation is possible and power politics can be moved at the core of the realist paradigm. (Lawrence 1913, 3-5)
The changes to social housing programs that have occurred since the 1970s must be placed in a broader social and economic context. Prominent among social and economic shifts since the 1970s has been neoliberalism. Neoliberalism (or neo-classical economics, the ‘new right’, economic rationalism) encompasses a suite of philosophical and economic theories that have become prominent in public discourse since the late 1960s (Hayek 1948; Nozick 1974), and which derive much of their intellectual inspiration from the earlier interest among late-nineteenth century classical economists and liberal economists (Smith 1970; Mill 1972) with the beneficial operation of markets. Neoliberal thought typically holds as its most basic tenet that the most efficient means for achieving an efficient distribution of social goods and services is through the operation of markets. This belief in the allocative superiority of markets is accompanied by a sceptical assessment of government’s abilities to achieve social or collective goals (Bourdieu 1998), such that governments should refrain from providing public infrastructure and services (Graham and Marvin 2001), in favour of private agencies (Friedman and Friedman 1981).
Introduction: Although the Cold War seems to be an ideological rivalry between the capitalism and capitalism, it accidentally catalyzes a great myriad of transnational cooperation and the reinvention of liberalism. Liberalism has evolved to be a dominant political ideology, neoliberalism, since 1970s. The notion of neoliberalism is that transnational institutions are conducive to global changes, harmony and prosperity through launching international programme. Differed from other theories solely recognizing the sovereign states as the only actor, neoliberalism also emphasizes the participation of other actors, such as the transnational corporations (TNC), which are the enterprises conduct economic activities or production of goods and services in multiple states, and non-governmental organizations (NGO). Besides, neoliberalism does not only attend to high-political issues, for instances, collective security, but also the low-politics in economic and cultural aspects.
Within the study of international relations, neoliberalism is a theory about achieving international cooperation between states in the international system. Neoliberalism can be seen as a response to structural realism. These two theories have in common that their main focus of analysis is the state and its interests. They also have the same interest in studying rationality and utility maximizing. Another assessment that these two theories share is that cooperation is very difficult to accomplish in an anarchic system.
In contrast to the traditional neoclassical theory, these models hold GNI growth to be a natural consequence of the long-run equilibrium. The principal motivation of the new growth theory are to explain both growth rate differentials across countries and a greater proportion of the growth observed. More succinctly, endogenous growth theorists seek to explain the factors that determine the size of ʎ, the rate of growth of GDP that is left unexplained and exogenously determined in the Solow neoclassical growth equation. The new growth theory does not simply criticize the neoclassical growth theory. Rather, it extends the latter by introducing endogenous technical progress in growth models.
Institutionalism rejects neorealist claims that the international system is characterized by anarchy. Rather, it is more accurate to think of the international system as made up of rational states that exhibit growing interdependence. Interdependence creates incentives for cooperation among states as it offers mutual benefits to all parties engaged. States learn cooperation through reciprocity or are forced to cooperate for sake of securing public goods. Institutionalists also focus on the free riding problem, which assumes that nations will tend to cheat and not do their part in producing public goods.
The motivations to joint ventures for strategic reasons are numerous. These motives primarily relate to amplifying of both the market power (Boyle, 1968; Fusfeld, 1958; Mead, 1967; Pate, 1969) and higher performance with competitive maximization (Backman, 1965; Berg & Friedman, 1977,1978; Stuckey, 1983). Vernon (1983), sees joint ventures as a defensive mechanism for firms to hedge against strategic uncertainty. Especially in industries of moderate concentration where collusion is difficult to achieve despite of the potential benefits of coordinating the interdependence among
It supported that the power is important and the international system is anarchic. But the main difference from neo-realism is the support for intergovernmental, transnational organizations. After Cold War and the collapse of Soviet Union many independent states had appeared. New problems came across the states, that are counter-terrorism, economic interdependence between the states. International relations became the vital, and it lead to prosperity of the world.
Although the two basic models may differ in their theory, they both basically stress the importance labour capital and technology. However, this essay presents a new argument altogether; one which stresses the importance of institutions in driving long term growth.. Dollar and Kraay (2002:133) argue that countries with better institutions tend to achieve growth much quicker than those with poor ones. Acemoglu et al (2005:389) identifies two sets of institutions which are political and economic. They state that economic institutions such as free market as well as property rights system are the most significant because they induce individual investments as well as create an environment for efficient allocation of resources. Acemoglu et al (2005:389) resonate the neoliberal argument of a laissez faire economic system where the state does not infringe on individual private property ownership but is preoccupied with creating an enabling environment in which economic activity can flourish.