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THE REALIST SCHOOL

1 One of the oldest schools of thought on international relations, which emphasises the role of the state and power. Two variations here - one that has largely neglected economic matters, and one that embraces this aspect.

2 Suggests that there is no central authority above nation states; international relations seen as a 'self help' system; international relations dominated by the preservation of national sovereignty and the pursuit of national interest. Power is used to this end, and the pursuit of power is seen as a primary objective. Changes in relative power positions between states are seen as major objectives - international relations as a zero sum game. Powerful nations attempt to shape international institutions to fit their own interests, and these act as arenas for acting out power relations. Foreign policy can be either aggressive or defensive in nature.

Given the emphasis on Politics, realists are critical of the idea that globalisation of economic relations is weakening state control - globalisation occurs only to the extent that states allow it to occur. A hegemonic state may be able to create an open and stable economic order that can further the globalisation process.

• Mercantilism.
• Role of trade policy in developing a strong manufacturing sector - Britain in the industrial revolution.
• Post 1945 period - Cold War - supremacy of political rather than economic perspectives.

3 Hegemonic stability theory - a relatively open and stable international economic system is most likely when there is a single dominant or hegemonic state with two characteristics: it has a sufficiently large share of resources that it is able to provide leadership; it is willing to pursue policies necessary to create and maintain a liberal economic order. Hegemonic conditions can be identified under Britain in the 19th century and under the US after world war 2. There are different views amongst hegemony theorists on what types of power and control are required: political, economic, cultural, leadership methods and goals (benevolent - creating of public goods - versus coercive hegemony), the ability/necessity of hegemons to create international regimes of behaviour, whether or not US hegemony is declining, and whether a focus on developed states (to the exclusion of developing states) is sufficient e.g. the impact of the rise of OPEC.

THE LIBERAL PERSPECTIVE

1 The most influential perspective in IPE. Pluralist in nature, focuses on a wide range of actors and levels of analysis.

• Orthodox liberals - mainly concerned with promoting "negative freedom"
• Interventionist liberals - some government involvement necessary to produce equality, fairness and justice
• Institutional liberals - favour the development of strong international institutions.

2 The liberal perspective takes a bottom up approach to politics and gives primary place in society to the individual consumer, firm or entrepreneur. Individuals have inalienable natural rights that should be protected e.g. Adam Smith and the invisible hand. Post-war international institutions based on liberal principles. International economic relations viewed as mutually beneficial, a positive sum game. LDC's seen as facing the same problems today as the UK etc. faced 200 years ago. Often less concerned with distributional issues - international economic activity