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Discuss the proposition that the 'state-market condominium' is the best focus for IPE.

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Discuss the proposition that the 'state-market condominium' is the best focus for IPE. Introduction Nowadays, the state-market relationship has become more important since the 1970s after Susan Strange, the pioneer of IPE, brought the idea that states and markets cannot be looked at separately, but the two things should be combined when talking about IPE.1 Her ideas have encouraged other scholars to look at states and markets as a whole. Geoffrey R.D Underhill is another IPE scholar who first used the word 'state-market "ensemble" or condominium'.2 From many of his work, it can be seen that it is impossible to focus either politics or economy, but both of them should go together. In the first part of this essay, I will show the definition of states and markets for common understanding. In the second one, I will roughly talk about realism and liberalism. Realism focuses on politics more than economy. On the other hand, liberalism gives priority to markets over states and believe that states should not interfere markets. In this section, I will give the aspects of both realism and liberalism towards states/politics and markets/ economic system and point out the weakness of them for explaining IPE. Finally, I will demonstrate why the state-market condominium is the most suitable idea to focus on IPE. And the conclusion of the essay will be stated in the last. ...read more.


The State-Market Condominium General concepts of the state-market condominium based on Geoffrey R.D. Underhill's ideas are that states and markets should be considered together under the term of political economy.17 They should not be viewed as separate things because they are parts of the same dynamic of governance; therefore, it is called 'a state-market ensemble or condominium'.18 Basically, IPE scholars believe that the relationship between states and markets is dynamic. Whenever we look at IPE, International Political Economy, as its basic meaning, nobody can deny that it is not comprised with politics and economy. According to David N. Balaam and Michael Veseth's ideas towards the meaning of IPE, I , international, refers to cross border relations between and among nation-states.19 In this sense, international may be interchanged with global because current problems and issues have impacts on the whole world; as a result, it is required a global perspective and understanding. Then, P, political, involves the use of state power to make a decision on contributions of power and resources to people within the state.20 The level of political process is complex and mulitlayered and involves not only among nation states but international organizations also. Then, E, economy or economics, involves in scarce resources and a distribution among individuals through the decentralized market process. It focuses on how scare resources are allocated and distributed to people.21 As it can easily be comprehended from the meaning of IPE that politics or states and economy or markets are unavoidable to be mutually used in examining IPE. ...read more.


At last but not the least, I would like to emphasize that 'the state-market condominium' can still be the best focus on IPE at present as long as not any scholars develop another appropriate idea or model to apply with IPE. 1 Strange Susan, 'International Economics and International Politics; A Case of Mutual Neglect', International Affairs,vol.46, no.2 (April 1970), pp 304-15. 2 Underhill Geoffrey, 'States, Markets and Governance: Private Interests, the Public Good and the Democratic Process', Electronic Journal(cf.uba.uva.nl/nl/publicaties/011025.underhill.pdf ,(2001) 3 Underhill, op.cit, p.6. 4 loc.cit 5 Balaam David and Veseth Michael, Introduction to International political Economy,(second edition, Prentice Hall, 2001), p. 13. 6 loc.cit. 7 Dunne Tim and Schmidt Brian, 'Realism' in John Baylis and Steve Smith, eds., Globalization of World Politics; and Introduction to International Relations (second edition , Oxford University Press, 2000),Chapter 7. 8 loc.cit. 9 loc.cit. 10 loc.cit. 11 Smith Adam, The Wealth of Nations (Oxford : Clarendon Press, 1976) 12 Underhill, op.cit., p.11. 13 Hoffmann Stanley, 'Janus and Minerva' (Boulder, Colo.:Westview,1987), pp.396, quoted by Tim Dunne, op.cit., p. 163. 14 Dunne, op.cit., p.171. 15 Ibid. p.178. 16 17 Underhill Geoffrey, 'The State-Market Relationship: Prospects for Change in World Order', International Affairs, vol. 76, no.4, (2000), pp.805-24. 18 Underhill, op.cit., p.7. 19 Balaam David and Veseth Michael, op.cit., p.5-6. 20 loc.cit. 22 Strange Susan, States and Markets (second edition, Pinter 1994), p. 17. 23 Balaam David and Veseth Michael, op.cit., p 14. 24 Underhill, op.cit., p. 15. 25 Balaam David and Veseth Michael, op.cit., p 13. 1 ...read more.

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