Liberalism

Intro to IR Theories
Liberalism:
 Origin: During eighteenth and nineteenth centuries liberal philosophers debated the difficulties
of establishing just, orderly and peaceful relations between peoples. One of the most systematic
and thoughtful accounts of the problems of world peace was produced by the German
philosopher Immanuel Kant in 1795 in an essay entitled Perpetual Peace. . Kantian thought has ‘Liberal pluralists’
pointed to the
been profoundly influential in the development of liberalism in IR. growing
 Important Philosophers: Immanuel Kant, Adam Smith, David Ricardo, Jeremy Bentham, John importance of
multinational
Stuart Mill and John Maynard Keynes. corporations
 Core Concept: This liberal or idealist enterprise rested on the beliefs that people in general are (MNCs), non-
governmental
inherently good and have no interest in prosecuting wars with one another. Furthermore, people organizations
suffer greatly as a consequence of war and thus desire dialogue over belligerence. Therefore, for (NGOs), pressure
groups, and
idealists all that was needed to end war was respect for the rule of law and stable institutions intergovernmental
which could provide some form of international order conducive to peace and security. organizations
(IGOs), as evidence
 Following the Second World War, idealism fell out of favour for a long period of time. The that states were
decline in the popularity of idealism was partly encouraged by the failure of The League of no longer the only
significant actors
Nations to act as a forum for resolving differences peacefully and as a mechanism to prevent in international
inter-state conflict. relations
 There have been many innovations in liberal theory since the 1970s. For example, idealism,
pluralism, interdependence theory, transnationalism, liberal internationalism, liberal peace theory,
neo-liberal institutionalism and world society approaches.
 Liberal internationalism: the belief that political activity should be framed in terms of a
universal human condition rather than in relation to the particularities of any given nation.
 Liberalism has something to say about all aspects of human life. In terms of liberal philosophy,
liberalism is based upon a belief in the inherently good nature of all humans, the ultimate value of
individual liberty and the possibility of human progress. Liberalism speaks the language of
rationality, moral autonomy, human rights, democracy, opportunity and choice and is founded
upon a commitment to principles of liberty and equality, justified in the name of individuality and
rationality.
 Contributions of Liberalism in Economic and Political ground:

1. Political Liberalism: Kant argued that perpetual peace cannot be realized in an unjust
world. The only way that this state of affairs could be overcome would be for states to found
a ‘state of peace’. Kant did not envisage the founding of a world government, or even the
pooling of sovereignty, but, rather, a looser federation of free states governed by the rule of
law. Kant recognized that, in order to achieve a just world order, certain conditions were
necessary, including the establishment of republics, as opposed to monarchies or
dictatorships. Kant recognized that, in order to achieve a just world order, certain conditions
were necessary, including the establishment of republics (used to describe a secular state in
which there is a separation of powers in government and in which citizens are ruled by law
and have some constitutional rights), as opposed to monarchies or dictatorships. If this was
the case a world federation would only be achieved when all states were republics.
2. Economic Liberalism:
 It is rooted in an intellectual works of Adam Smith and David Ricardo. The key
assumptions of nineteenth-century classical liberalism were that it is, in the long
run, beneficial to all if markets are allowed to operate freely without state
intervention and if countries are able to trade openly and freely with each other. the
market is seen as the most efficient means of organizing human production and
exchange, operating almost as if ‘an invisible hand’ were guiding and coordinating
economic activity. If the free market is allowed to operate without government
intervention, there will be the efficient division and distribution of labor and
resources both within domestic economies and the international economic system.
This does not mean that liberals see no role for the state in the economy. Adam
Smith accepted that the market would not necessarily produce much needed ‘public
goods’ and that governments would need to provide them. States were also
necessary, because they provided a regulatory framework – a legal system – to,
among other things, enforce contracts and protect against corruption and unfair
competition and they held that it is in the best interests of all people, in the long
term, if state intervention is kept to a minimum.
 According to liberals, the advantages of trade are numerous. Trade would prove to
be mutually beneficial by, for example, bringing about interdependence among
states and generating wealth, both of which would reduce the likelihood of conflict.
This is because, in the case of the former, integration between states and people
leads to shared interests and an increase in the costs of conflict.
 The Bretton Woods System (BWS) was to facilitate economic growth, development
and trade by providing a stable framework for international economic activity. It
was believed that, when the economic climate was harsh, states immediately took
action to protect their own economies. Typically, this involved measures to protect
domestic markets, such as increasing tariffs. The knock-on effects of such ‘selfish’
behaviour were a slow-down in world trade and, eventually, international recession.
The BWS was designed to create a framework in which it would be difficult for
states to act in a self-interested way when the going got tough by, at one and the
same time, discouraging protectionism and providing a helping hand to countries in
temporary economic difficulties.
 The BWS consisted of the International Bank for Reconstruction and Development
(IBRD), the International Monetary Fund (IMF) and later the General Agreement on
Tariffs and Trade (GATT), now the World Trade Organisation (WTO).
 In the first years of its existence, it was envisaged that the IBRD, more commonly
known as the World Bank, would play an important role in distributing aid to the
devastated economies of Western Europe.
 The International Monetary Fund was designed to ensure liquidity in the
international economy. This means that, in effect, countries experiencing short-term
balance of trade difficulties (effectively spending more than they were earning)
could borrow money and so continue to trade effectively.
 General Agreement in Tariffs and Trade (which came into being a few years after
Bretton Woods and has since been superseded by the World Trade Organization)
was designed to bring about a gradual reduction in trade barriers around the world.
 Neo-liberal or neo-classical economic theory has been used to justify structural
adjustment programmers (SAPs) in the developing world, even though the social
consequences may be very harsh indeed. SAPs have been widely ‘recommended’ to
Third World states by the IMF and the World Bank as an effective means of dealing
with the related problems of poverty and indebtedness. SAPs have been heavily
criticized by NGOs like Oxfam and Greenpeace as well as by former members of the
World Bank. Consequently SAPs often include some notional safety net beyond
which basic services and welfare goods should not be cut.
 John Stuart Mill, argued that government was a necessary evil. That is to say,
government was necessary in order to protect the liberty of individuals, but could
become oppressive and tyrannical if its power was unchecked. For these reasons
liberals generally argue for a ‘separation of powers’ and ‘checks and balances’ which
ensure that no one political leader or arm of government can become dominant.
This basic idea is the origin of political pluralism, which means the distribution or
diffusion of power across a range of institutions or among a number of ‘actors’

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Intro to IR Theories

 Contributions of Liberalism in Economic and Political ground:

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