Neorealism, Neoliberalism, and International Relations
Neorealism: A Modern Approach to International Relations
Applying a positivist mindset to International Relations (IR) involves:
- Parsimony: Focusing on only a few key variables.
- Developing few assumptions: Eliminating extraneous ones (e.g., assuming states are rational utility maximizers with similar interests).
- Scientific Approach: Relying on observable data and measurable variables.
Neorealism, therefore, attempts to develop a more rigorous theory of IR, leading to general, testable, and causal conclusions. Power is the central object of analysis.
From Classical Realism to Neorealism
Classical realism posits that the struggle for power drives international politics. Neorealism, however, argues that the structure of the international system, specifically anarchy, is the primary driver.
Anarchy compels states to behave similarly, prioritizing survival. The absence of a higher authority to enforce rules and guarantee protection necessitates the pursuit of power.
Foundations of Neorealist Theory
- Materialism: International behavior is significantly influenced by the physical characteristics of each state and its material power indicators, particularly the distribution of power.
- Rationalism: States are rational utility maximizers, calculating the costs and benefits of actions and pursuing similar interests.
The Implications of Anarchy
Under anarchy, states adhere to the principle of self-help. While they may form alliances (e.g., NATO, Warsaw Pact), ultimately, they can only rely on themselves. Survival necessitates a sufficient amount of power.
The Rise and Fall of Neoliberalism
Triumph of Neoliberalism: The End of the Cold War
The collapse of the USSR and international communism led many to believe that liberal democracy had triumphed as the sole political model. Liberal capitalism was perceived as the only legitimate way to organize relations among states. This period saw a decline in the perceived importance of the state and a rise in the influence of International Organizations (IOs), interdependence, and globalization.
Decline of Neoliberalism: September 11th
The events of September 11th marked a resurgence of history and the challenge of international terrorism.
The European Union: A Case Study
The European Union (EU) presents an interesting case, both theoretically and practically. It demonstrates how anarchy can be mitigated by creating areas of cooperation and authority.
The EU’s complex nature is characterized by:
- Supranationalism: Member states transcend national boundaries to share decision-making and vote on issues affecting all members (majority voting).
- Intergovernmentalism: States remain primary actors, decisions are made by consensus (unanimity), and affect all members only if all agree.
The European Coal and Steel Community (1951)
The European Coal and Steel Community (ECSC) aimed to foster cooperation on strategic resources to ease tensions. By establishing a supranational institution, independent of governments, the ECSC sought to make war between France and Germany unthinkable. Production of German coal and steel was placed under a common authority.
Founding Members
- Italy: Sought political stability and reconstruction.
- Belgium, Netherlands, Luxembourg: Vulnerable, small, and in need of protection.
- UK: Interests lay primarily outside Europe (special relationship with the U.S. and Commonwealth).
- Spain and Portugal: Excluded due to dictatorships.
- Austria, Denmark, Sweden, Finland: Remained neutral.
Refining Liberalism: Neoliberal Institutionalism
Neoliberal institutionalism emerged as an attempt to refine the liberal tradition after facing numerous challenges. It sought to integrate aspects of neorealism without rejecting it entirely. Neorealism posited that international economic cooperation was only possible with a hegemon managing the system and resolving conflicts (theory of hegemonic stability). It also suggested that international institutions exist only as long as powerful states, primarily the U.S., support them.
Neoliberalism focuses on regimes: sets of principles, rules, norms, and decision-making procedures that regulate relations among states.
Starting Assumptions
- States are rational utility maximizers.
- Anarchy is the primary condition of international politics.
- Power distribution is not the only important variable.
- States are embedded in rules, norms, and institutions that provide constraints and incentives.
Theories within Neoliberal Institutionalism
- Interdependency Theory (Richard Rosecrance, 1986): The era of independent, self-help states focused on territorial conquest is over. States are now embedded in a complex web of relations and rules that limit aggression by creating common interests. Free trade and foreign investments improve economies, making war less appealing. This marks a shift from military to trading states, where economic integration reduces the likelihood of conflict.
- Functionalism (David Mitrany, Ernst Haas): States begin cooperating in technical, less political areas (e.g., coal and steel). If successful, cooperation spreads to new areas where states find mutual advantages (spillover). The EU exemplifies this, starting with coal and steel and expanding into other areas, leading to decades of peace.
- International Institutionalism (Nye, Keohane): Focuses on the role of international institutions in fostering cooperation.
What Favors International Cooperation?
Neoliberal institutionalism seeks to identify the factors that promote international cooperation within an anarchic system.