State of the Art and Research Design

Author(s):  
Lucia Quaglia

This chapter begins by reviewing several bodies of scholarly works that are relevant to this research, notably, the international relations literature on regime complexity and the international political economy literature on financial regulation. It then discusses three mainstream theoretically informed explanations—a state-centric, a transgovernmental, and a business-led accounts—which can be useful to explain how regime complexity in derivatives was dealt with. Finally, it outlines the research design, the analytical framework, the methodology, the sources, the timeframe, and the empirical coverage. Empirically, this book examines all the main aspects concerning the regulation of derivatives markets, namely: trading, clearing and reporting derivatives; resilience, recovery and resolution of central counterparties; capital requirements for bank exposures to central counterparties and derivatives; margins for derivatives non-centrally cleared via central counterparties.

Author(s):  
Lucia Quaglia

This book examines the post-crisis international derivatives regulation by bringing together the international relations literature on regime complexity and the international political economy literature on financial regulation. Specifically, it addresses three interconnected questions. What factors drove international standard-setting on derivatives post-crisis? Why did international regime complexity emerge? How was it managed and with what outcomes? Theoretically, this research innovatively combines a state-centric, a transgovernmental and a business-led explanations. Empirically, it examines all the main sets of standards (or elemental regimes) concerning derivatives, namely: trading, clearing, and reporting derivatives; resilience, recovery, and resolution of central counterparties; bank capital requirements for bank exposures to central counterparties and derivatives; margins for derivatives non-centrally cleared. Regime complexity in derivatives ensued from the multi-dimensionality and the interlinkages of the problems to tackle, especially because it was a new policy area without a focal international standard-setter. Overall, the international cooperation that took place in order to promote regulatory precision, stringency, and consistency in the regime complex on derivatives was remarkable, especially considering the large number of policy actors involved (states, private actors, regulators). The main jurisdictions played an important role in managing regime complexity, but their effectiveness was constrained by limited domestic coordination. Networks of regulators facilitated international standard-setting and contributed to managing regime complexity through formal and informal tools. The financial industry, at times, lobbied in favour of less precise and stringent rules, engaging in international ‘venue shopping’; other times, it promoted regulatory harmonization and consistency.


Author(s):  
Lucia Quaglia

This chapter outlines the theoretical and empirical puzzles that inform the book, its objectives, overall argument, and structure. This research sets out to explain the post-crisis international regulation of derivatives markets. In particular, it addresses three interconnected questions. What factors drove international standard-setting concerning derivatives post-crisis? Why did international regime complexity emerge? How was it managed and with what outcomes? The focus of this volume is on international standards, not the domestic implementation of these standards, or other domestic regulatory reforms concerning derivatives. This chapter also outlines the book’s theoretical and empirical contributions to the international relations literature on regime complexity and the international political economy literature on the regulation of finance.


Politics ◽  
2021 ◽  
pp. 026339572110612
Author(s):  
Matteo Capasso

This article brings together two cases to contribute to the growing body of literature rethinking the study of international relations (IR) and the Global South: The Libyan Arab al-Jamāhīrīyah and the Bolivarian Republic of Venezuela. Drawing on media representations and secondary literature from IR and international political economy (IPE), it critically examines three main conceptual theses (authoritarian, rentier, and rogue) used to describe the historical socio-political formations of these states up to this date. Mixing oil abundance with authoritarian revolutionary fervour and foreign policy adventurism, Libya and Venezuela have been progressively reduced to the figure of one man, while presenting their current crises as localized processes delinked from the imperialist inter-state system. The article argues that these analyses, if left unquestioned, perpetuate a US-led imperial ordering of the world, while foreclosing and discrediting alternatives to capitalist development emerging from and grounded in a Global South context. In doing so, the article contributes to the growing and controversial debate on the meanings and needs for decolonizing the study of IR.


Author(s):  
Elizabeth Bloodgood

Research on non-governmental organizations (NGOs, often international NGOs, or INGOs) has advanced over the last several decades from demonstrating that NGOs matter in shaping economic development and foreign aid to examining the potential for NGOs to advocate for new rights, set standards for environmental protections, and establish alternative economic arrangements in international relations. The study of NGOs as organizations has opened their potential as interest groups as well as economic actors in their own rights. Moving forward, new data and new theory is needed to fully develop International Political Economy (IPE) understandings of NGO motives, intentions, strategies, and power in global governance.


Author(s):  
Robert Jackson ◽  
Georg Sørensen

Introduction to International Relations provides a concise introduction to the principal international relations theories, and explores how theory can be used to analyse contemporary issues. Readers are introduced to the most important theories, encompassing both classical and contemporary approaches and debates. Throughout the text, the chapters encourage readers to consider the strengths and weaknesses of the theories presented, and the major points of contention between them. In so doing, the text helps the reader to build a clear understanding of how major theoretical debates link up with each other, and how the structure of the discipline of international relations is established. The book places a strong emphasis throughout on the relationship between theory and practice, carefully explaining how theories organise and shape our view of the world. Topics include realism, liberalism, International Society, International Political Economy, social constructivism, post-positivism in international relations, and foreign policy. A chapter is dedicated to key global issues and how theory can be used as a tool to analyse and interpret these issues. The text is accompanied by an Online Resource Centre, which includes: short case studies, review questions, annotated web links, and a flashcard glossary.


1992 ◽  
Vol 18 (1) ◽  
pp. 31-49 ◽  
Author(s):  
Eric Helleiner

One of the central objectives of the field of international political economy (IPE) in the last 20 years has been to introduce insights from the field of international relations into the study of global economic affairs. Although this effort has been largely successful in the study of international trade, much less attention has been focused on the financial sector of the global economy. Seemingly highly technical and arcane, the study of international finance has been left largely to specialists in international economics, financial journalists, and international financial practitioners.


2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Rachel L. Wellhausen

This comment elaborates on and extends the roundtable’s discussion by turning to the context of Indigenous peoples. Even setting aside normative motivations, expanded study of Indigenous peoples provides clear opportunities for theory development in international political economy and international relations more broadly. For example, the legal status of American Indian Nations’ 326 unique political jurisdictions can inform the political economy of marginalized identity groups in a non-Westphalian but nonetheless international context.


Author(s):  
Naeem Inayatullah ◽  
David L. Blaney

Heterodox work in Global Political Economy (GPE) finds its motive force in challenging the ontological atomism of International Political Economy (IPE) orthodoxy. Various strains of heterodoxy that have grown out of dependency theory and World-Systems Theory (WST), for example, emphasize the social whole: Individual parts are given form and meaning within social relations of domination produced by a history of violence and colonial conquest. An atomistic approach, they stress, seems designed to ignore this history of violence and relations of domination by making bargaining among independent units the key to explaining the current state of international institutions. For IPE, it is precisely this atomistic approach, largely inspired by the ostensible success of neoclassical economics, which justifies its claims to scientific rigor. International relations can be modeled as a market-like space, in which individual actors, with given preferences and endowments, bargain over the character of international institutional arrangements. Heterodox scholars’ treatment of social processes as indivisible wholes places them beyond the pale of acceptable scientific practice. Heterodoxy appears, then, as the constitutive outside of IPE orthodoxy.Heterodox GPE perhaps reached its zenith in the 1980s. Just as heterodox work was being cast out from the temple of International Relations (IR), heterodox scholars, building on earlier work, produced magisterial studies that continue to merit our attention. We focus on three texts: K. N. Chaudhuri’s Asia Before Europe (1990), Eric Wolf’s Europe and the People Without History (1982), and L. S. Stavrianos’s Global Rift (1981). We select these texts for their temporal and geographical sweep and their intellectual acuity. While Chaudhuri limits his scope to the Indian Ocean over a millennium, Wolf and Stavrianos attempt an anthropology and a history, respectively, of European expansion, colonialism, and the rise of capitalism in the modern era. Though the authors combine different elements of material, political, and social life, all three illustrate the power of seeing the “social process” as an “indivisible whole,” as Schumpeter discusses in the epigram below. “Economic facts,” the region, or time period they extract for detailed scrutiny are never disconnected from the “great stream” or process of social relations. More specifically, Chaudhuri’s work shows notably that we cannot take for granted the distinct units that comprise a social whole, as does the IPE orthodoxy. Rather, such units must be carefully assembled by the scholar from historical evidence, just as the institutions, practices, and material infrastructure that comprise the unit were and are constructed by people over the longue durée. Wolf starts with a world of interaction, but shows that European expansion and the rise and spread of capitalism intensified cultural encounters, encompassing them all within a global division of labor that conditioned the developmental prospects of each in relation to the others. Stavrianos carries out a systematic and relational history of the First and Third Worlds, in which both appear as structural positions conditioned by a capitalist political economy. By way of conclusion, we suggest that these three works collectively inspire an effort to overcome the reification and dualism of agents and structures that inform IR theory and arrive instead at “flow.”


Author(s):  
Donna Lee ◽  
Brian Hocking

Mainstream studies of diplomacy have traditionally approached international relations (IR) using realist and neorealist frameworks, resulting in state-centric analyses of mainly political agendas at the expense of economic matters. Recently, however, scholars have begun to focus on understanding international relations beyond security. Consequently, there has been a significant shift in the study of diplomacy toward a better understanding of the processes and practices underpinning economic diplomacy. New concepts of diplomacy such as catalytic diplomacy, network diplomacy, and multistakeholder diplomacy have emerged, providing new tools not only to recognize a greater variety of state and nonstate actors in diplomatic practice, but also to highlight the varied and changing character of diplomatic processes. In this context, two themes in the study of diplomacy can be identified. The first is that of diplomat as agent, in IR and international political economy. The second is how to fit into diplomatic agency officials who do not belong to the state, or to a foreign ministry. In the case of the changing environment caused by globalization, economic diplomacy commonly drives the development of qualitatively different diplomatic practices in new and existing economic forums. Four key modes of economic diplomacy are critical to managing contemporary globalization: commercial diplomacy, trade diplomacy, finance diplomacy, and consular visa services in relation to increased immigration flows. The development of these modes of economic diplomacy has shaped the way we think about who the diplomats are, what diplomats do, and how they do it.


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