GOVT1621 Lecture Notes - Lecture 7: The Natural Order, Liberal Democracy, Productive Forces
6 May 2020
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Lecture Powerpoint
The Natural Order
● Realism vs idealism
● Liberal world order is not ‘natural’
○ Because of conflict and war between states
○ Essence of liberalism is self-restraint, moderation, compromise and peace
○ Essence of international politics is the opposite
The Ideal
● A reaction to the barbarity of international relations and of monarchies
○ In monarchs: Had very few rights
○ At the mercy of people who ruled
○ Make decisions unrepresentative of the people
● Endless war and conflict over territory and wealth
● An attack on those with power and aristocracy
○ Liberalism was a revolutionary idea
○ Power taken from those who have it and given to the people
● The state should step back from markets
● The creation of an interconnected, interdependent, cosmopolitan world
○ Cosmopolitan: Doesn’t matter what your race is, what matters is that you’re an
individual and a human being
● The possibility of progress
● All citizens should possess rights
○ Education, a free press, religious freedom
○ According to Dunne: Born with rights under the law
● The state possesses only the authority invested in it by the people, whose basic rights
must not be abused
○ Like democracy
● The right to own property, including productive forces
● A market system of economic exchange
○ Dunne: Contrast this with conservatism
○ Lecturer: Liberal thoughts are so accepted it is kind of a conservative belief
The Liberal Democratic Peace Thesis
● Originally Immanuel Kant’s ideas
● Elucidated by Michael Doyle
1. Republican representation
a. Cannot be led by an aristocracy or monarchy system
b. Has to be democratic leaders (Representative of the people)
2. Ideological commitment to fundamental human rights
a. International level: Establishing international agreements
b. Mutual understanding and respect
3. Transnational interdependence
a. Allow transaction of ideas
b. Borders start to not matter
c. No sovereign borders that stress national interest
● Cannot find example of liberal states that go to war
● But a lot of example of liberal states that follow this thesis and goes to war with non-
liberal states
Like Star Trek
● A world of interconnected freely trading states
○ Allow levels of wealth to be achieved by all states
○ Would not be achieved otherwise
● Wealth of all nations is a main concern
○ According to cosmopolitanism
The end point
● Kenichi Ohmae 1991: The Borderless World
○ Globalisation
○ After Cold War: A belief that the separation between West and East is over
● Francis Fukayama: The End of history
○ Ultimate triumph of Western liberal democracy
○ Unabashed victory of economic and political liberalism
○ 3 pillars of liberal peace is now globally accepted
The Benefits of Free Trade
● Not self sufficient
○ As national markets should operate freely, so should international markets
○ Mutual gains from trade
● Ricardo’s theory of comparative advantage
○ States produce what they can most efficiently and trade for what they are less
efficient in producing
○ Even if they have an absolute advantage, it could still be in their interest
● Produces peace
○ Interdependent economic stability = Interdependent political stability
○ Now don’t need to invade for resources
The Interwar Period
● A shift in liberal thinking
● The need for international organisations
○ As peace is not a natural state
● US President Woodrow Wilson
○ A general association of nations must be formed
● League of Nations
○ Collective security
○ Self determination: Imperfectly thought of idea
○ Failed: US that created it but did not join; collapsed in the beginning of WW2
● United Nations set up after WW2
○ Has problems as well
○ Security council is made up of the great powers after WW2
○ They deal with decision-making
○ Rarely get agreement in the security council
○ Worked: In the 1st Gulf War
Embedded Liberalism
● Post WW2: Idea that there was a need for creation of rules, institutions and procedures
internationally
○ Unchecked market forces and lack of a managed international financial system
would not provide for economic growth and prosperity
○ Need: Adequate liquidity, timely adjustment, confidence in the system
○ Free trade and an economically liberal system via international cooperation (Free
trade with rules)
● A historical context
○ 2 world wars
○ Post WW2 devastation: Global economy was in disarray
○ Japan destroyed, poverty in Germany, currency devaluated
○ BUT: The US was incredibly wealthy
○ Because during the interwar period: Great Depression, US isolationism,
competitive devaluations
● Past and present threats of political extemism
○ A multilateral, interconnected world of trade and shared interest would help
prevent conflicts
● Close financial system
○ To prevent short term capital flow
○ But maintain liberal trade
● Creation of international organizations
○ International Monetary Fund: Grant approval of all exchange rate changes (IMF
failed to do this) → Organizations when country need money
○ International Bank for Reconstruction and Development: The World Bank
○ World Trade Organizations
● In short:
○ Liberal world order needed to be constructed and underpinned by states
The Contemporary Reality
● The rise of MNCs: Capital goes international
○ Foreign direct investment: Raise capital overseas beyond control of any state
Document Summary
Because of conflict and war between states. Essence of liberalism is self-restraint, moderation, compromise and peace. Essence of international politics is the opposite. A reaction to the barbarity of international relations and of monarchies. At the mercy of people who ruled. Endless war and conflict over territory and wealth. An attack on those with power and aristocracy. Power taken from those who have it and given to the people. The state should step back from markets. The creation of an interconnected, interdependent, cosmopolitan world. Cosmopolitan: doesn"t matter what your race is, what matters is that you"re an individual and a human being. According to dunne: born with rights under the law. The state possesses only the authority invested in it by the people, whose basic rights must not be abused. The right to own property, including productive forces. Lecturer: liberal thoughts are so accepted it is kind of a conservative belief.
