Unit 3: Liberalism (II), Apuntes de Relaciones Internacionales

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HISTORY AND THEORY OF INTERNATIONAL RELATIONS

3. Liberalism (II):

Neoliberal Institutionalism

Dr. Javier Morales [email protected]

Contents 3.4. “Institutions Matter” 3.5. Rules vs Power 3.6. Principal-Agent Approaches 3.7. The “Neo-Neo” Debate 2

3.4. “Institutions Matter”

• Neoliberal institutionalism is focused on the role of international organizations (IOs). - Not “promoting values” as liberal internationalism, but solving collective problems in an efficient way. - States are still the dominant actors, but their behaviour is constrained by international interdependence and agreements. - Assumption: states are rational and choose policies that maximize their benefit; more concerned about absolute than relative gains. 4

3.4. “Institutions Matter”

• A world of “complex interdependence” (Keohane & Nye, 1970s): - Increasing linkages among states / non-state actors - New issues in the international agenda apart from traditional concerns: human rights, environment… - Multiple channels of interaction accross borders - Decline in the efficacy of military force for promoting national interests 5

3.4. “Institutions Matter”

• IOs provide forums where states can mitigate collective action problems by: - exchanging information about their individual actions and intentions; - coordinating their positions; - providing structures for enforcement and dispute resolution (although actual enforcement remains in the hands of member states) 7

3.4. “Institutions Matter”

• From the study of individual IOs to international regimes (Krasner 1983): - Sets of principles, norms, rules and decision-making procedures. - Informal institutions as well as formalized bodies.
• Study of multilateralism and global governance: how to manage globalization? (UN, G20…)
• Problem: compliance with international agreements (states generally accept rules that demand minimal changes from them)

3.4. “Institutions Matter”

• KEOHANE on climate change negotiations, 2 Dec. 2010. http://www.youtube.com/watch?v=ACUbEfNv_QI

3.5. Rules vs Power

• Does the institutional structure influence the outcomes of negotiation… or do they just depend on which are the most powerful states?
• Enforcement :
  • Decentralized (member states, dispute-resolution mechanisms)
  • More likely when information is available to all members about individual compliance Æ reputation

3.7. The “Neo-Neo” Debate Neorealism Neoliberalism Anarchy Cooperation Negotiation Main issues Power vs intentions Institutions

3.7. The “Neo-Neo” Debate Neorealism Neoliberalism Anarchy Leads to inter-state competition for survival; self- interest Interdependence, globalization and intl. institutions are incentives for cooperation under anarchy Cooperation Negotiation Main issues Power vs intentions Institutions

3.7. The “Neo-Neo” Debate Neorealism Neoliberalism Anarchy Leads to inter-state competition for survival; self- interest Interdependence, globalization and intl. institutions are incentives for cooperation under anarchy Cooperation Hard (states^ do not trust each other) Easy in areas where states have common interests Negotiation States try to maximize relative gains (prevent others from gaining more) States more concerned with absolute gains (maximize benefits for everyone) Main issues Power vs intentions Institutions

3.7. The “Neo-Neo” Debate Neorealism Neoliberalism Anarchy Leads to inter-state competition for survival; self- interest Interdependence, globalization and intl. institutions are incentives for cooperation under anarchy Cooperation Hard (states^ do not trust each other) Easy in areas where states have common interests Negotiation States try to maximize relative gains (prevent others from gaining more) States more concerned with absolute gains (maximize benefits for everyone) Main issues Security and survival^ Economic welfare, global issues... Power vs intentions Institutions

3.7. The “Neo-Neo” Debate Neorealism Neoliberalism Anarchy Leads to inter-state competition for survival; self- interest Interdependence, globalization and intl. institutions are incentives for cooperation under anarchy Cooperation Hard (states^ do not trust each other) Easy in areas where states have common interests Negotiation States try to maximize relative gains (prevent others from gaining more) States more concerned with absolute gains (maximize benefits for everyone) Main issues Security and survival^ Economic welfare, global issues... Power vs intentions Power (material capabilities) determines foreign policy Intentions and preferences are options (Æ maximize benefit) Institutions Minimum^ impact (instruments of the great powers) Important role (facilitating cooperation, mitigating the effects of anarchy)

End of Lesson 3 – part II Questions? [email protected] 20