Global Political Economy: Understanding the International Economic Order

Globalization, as a word, is not very specific. The world may be globalizing, but what specifically does that mean? Furthermore, there is no shortage of competing ideas about the role and effects of globalization on the world economy. Getting to the truth of the matter requires going back to the basics of economics and politics, which is what the author attempts to do. He gives a primer on neoclassical economic theory, new economic theories, the global financial markets, international trade, multi-national corporations, and the ideal role of the state in economic development. Gilpin is by no means a socialist. He believes in the importance of free trade and in the optimizing qualities of the market, but he also acknowledges that the state has an important role to play in economic matters, and that this role is often downplayed in classical economics. I highly recommend this book. I read it for a class, but I really enjoyed it. In terms of quality, it was head and shoulders above the other books we read for the class. I would highly recommend this to any of my friends as a great overview of how politics and economics interact on a global level.

This is an outstanding update of the author's earlier book, The Political Economy of International Relations (1987). It is meant to complement Gilpin's more recent work, The Challenge of Global Capitalism (2000). In Global Political Economy, Gilpin discusses a wide range of theories in the field combining careful textual analysis with advocacy of his own views. The author's own theoretical stance is one of "state-centric realism." He identifies with authors like Thucydides, Machiavelli, and Hans Morgenthau, but not with what he calls the "systemic realism" of authors like Kenneth Waltz. While he admires and uses the work of contemporary economists, he also carefully differentiates his approach from theirs (in Chapter 3). Except for a brief acknowledgement of the difficulty of explaining European integration in state-centric realist terms (in Chapter 13) and a bit of defensiveness on the continued value of theories of hegemonial stability (in Chapter 4), Gilpin does a good job of defending his views.The author does an excellent job of surveying recent work in economics without resorting to jargon. There are outstanding treatments of topics like the continued relevance of Heckscher-Ohlin trade theory, strategic trade, endogenous growth theory, and the new economic geography. The discussion of the globalization of international finance in Chapter 10 emphasizes the need to take into account the "increased interdependence of trade, monetary, and other aspects of the international economy" that results from "[m]ovement toward a single, globally integrated market for corporation ownership" (277). Chapter 11 provides a state-of-the-art discussion of the role of multinational corporations in the world economy. Chapter 12 does a fine job of discussing the likely future of theories of the developmental state in light of the Asian Crises of the late 1990s. The final chapter lays out three major scenarios for governance of the world economy, informed as always by the author's realist views.This book is long and dense. There are few wasted or unnecessary words. It is not easy to read. However, it could be used for graduate seminars or upper-division undergraduate courses in international political economy in conjunction with texts that are more empirical or descriptive in their treatment of international political economy. Global Political Economy is an excellent book. It represents a major and successful updating of The Political Economy of International Relations. Any person interested in international political economy can profit from reading it.

Gilpin's survey offers undergrads an introduction to globalization by discussing the substance and the theoretical debates on "What is political economy," international trade and finance, MNCs, and the role of the state and international institutions. I found its chapters worked great with students when combined with a relevant current events article from the Economist or FT, for example. For graduate students and other professionals new to i.p.e., it provides a summary or introduction to several important debates, with direction to the original texts and critics - useful that way as a primer or a reference book. (February 2002)

Robert Gilpin, Professor Emeritus Robert Gilpin of Princeton University, has done it again. Gilpin's Global Political Economy is a completely rewritten version of his classic The Political Economy of International Relations, which appeared back in 1987.The latter has been standard reading in the courses on international politics and political science - and should have been for the students of economics and business administration as well. The new volume can be expected to meet with the same success.Gilpin's new testament has been prompted by the changes in the world economy that have come about since 1987. The end of the Cold War removed the Soviet threat that had unified the United States, Europe and Japan. The globalisation of the economy has intensified. The breakthrough of information technology, and especially of the Internet, has boosted the importance of the knowledge-based economy. Together these factors have thoroughly shaken the foundations of governance of the world economy.Gilpin does not subscribe to the pure free-market vision of economics. Neither does he accept such populism that puts all blame on globalisation:"The idea that globalisation is responsible for most of the world's economic, political, and other problems is either patently false or greatly exaggerated. In fact, other factors such as technological developments and imprudent national policies are much more important than globalisation as causes of many, if not most, of the problems for which globalisation is held responsible."Gilpin does not set the nation state free from its power and responsibility. On the contrary, he stresses the state's capability to influence economic development and job creation, even in a context of increasing globalisation.Especially now that the dust has settled after the terrorist attacks in New York and Washington, the focus of world politics has turned to the effect these terrible events have on U.S. foreign policy. Thus far, we have witnessed a return to a multilateral approach from nascent unilateralism.The tension between isolation and cooperation has not been born in an instant, but has marked U.S. foreign policy at least since the First World War. In the academic community this discussion has a long history. In Gilpin's view the United States should commit itself to multilateral co-operation. Although at this particular time this commitment means in the first instance building an anti-terrorist alliance, it is clear that it cannot fail to be reflected also in international economic relations - and vice versa.Take the World Trade Organisation, for instance. A failure to launch a new round of negotiations would send the wrong signal about the ability of the EU and the United States to cooperate, and erode belief in an international order based on common rules - just when that is most needed.Although rather by default than by design, China's membership in the WTO could not have come at a better time for the building of the alliance. Russi

I purchased this book based upon someone elses review.They mentioned it as providing more information than "The Lexisand the Olive Tree". Boy, it sure does. The Global Polictical Economyis difficult to read, being written for a PhD audience. I often have to read sentences several times to understand what is being said.The book will streach your mind and your reading ability, but isnot as enjoyable as the Olive Tree.