Interdependence On The Global Arena Case Study
It is also difficult to analyse the conflicting relations between state and market without discussing the international scene. As Underhill (2001) suggests, “there is an intimate connection between the domestic and international level of analysis”. After all, changes in the international economic scenario will most likely affect the economic situation and the balance within a country. If it does not change, it is probably because the government has taken specific actions to avoid it.
Furthermore, much of the analyses today are focused on the field of International Political Economy (Cox 1981:126). The process of globalisation, the flows of capital, goods and people …show more content…
In The Great Transformation he argues that the logic of the self-regulated market requires this model to be spread globally.
In contemporary terms, Underhill is one scholar who dwells on this theme. He presents the idea of “market-state condominium” and provides a sophisticated overview of contemporary international political emergence around the 1970´s, which is precisely the year when Susan Strange wrote about Mutual Neglect to criticise the dichotomy between politics and economics and the predominance of the latter in the discussion of political economic issues. She emphasizes that “the pace of development in the international economic system has accelerated (…) and will probably continue to accelerate” (1970:304/305).
States and political institutions need to regulate the market, its greed to accumulate capital and the inequality that it causes. This intrinsic relation configures an “interdependent antagonism” (Underhill 2000:818). States need markets to grow and provide economic prosperity to the country, as the market needs the state to ensure the legal framework, to secure its profits and rescue companies when they are in …show more content…
They are accused of relying too much on an economic basis, facts and factors in order to develop their theories. Consequently, they are accused of diminishing the role of the state and political factors, and even acting with political naiveté (Strange 1970).
Others scholars like Higgott (1999) and also point the negligence of economic analysts in general. This critique comes, nevertheless, accompanied with some self-critique to the political scientists and political literature on its difficulty to catch up with economic advances and globalisation of markets and business (Strange 1970).
These critiques highlight some rivalry between the two main communities in charge, or, in a different scenario, some rancour for the presumed loss of main role when it comes to the global debate of political economy. Strange (1970:306) observes that the influences of economic and financial factors are more powerful on the economic