International Political Economy (IPE) is the interdisciplinary study of how politics and economics interact on a global scale. It examines how political forces shape the global economy and, conversely, how economic activities influence political decisions and power relations internationally
. Key aspects of IPE include:
- The role of different actors such as nation-states, international organizations, multinational corporations, and other societal groups in shaping and regulating the international economic system
- The study of major global economic issues like international trade, monetary and financial systems, multinational corporations, economic development, and inequality
- Analysis of power dynamics and conflicts between winners and losers in global economic exchanges
- Understanding how global governance institutions (e.g., IMF, World Bank, WTO) and economic crises affect international relations and economic policies
- The historical roots of IPE lie in political economy, with contributions from thinkers like Adam Smith, and it emerged as a distinct field in the 1960s-70s amid growing global economic interdependence and institutional development
IPE integrates political science and economics to address questions about who governs the global economy, how countries cooperate on economic and political issues, and how economic globalization impacts domestic and international politics
. It also explores competing theoretical perspectives on global economic order and the possibilities for systemic change
. In summary, International Political Economy is the study of the reciprocal relationship between international politics and economics, focusing on how political power and economic forces shape the global system and affect issues such as trade, finance, development, and inequality
