INTERNATNL RELATIONS INR 2002
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Date Created: 09/17/15
Chapter 5 Collective Security Broadbased institutions that promote peace and security among their members EX League of Nations and UN How does it work One state attacks threatens another or there is an outbreak of Violence within a country Ifit is determined that this is a threat to national security all members are called to act It can range from economic sanctions to fullscale military intervention The also provide other services intended to prevent Violence from breaking out 3 ways it effects bargaining interaction between adversaries 1 The prospect of outside involvement makes war less attractive by hanging the likely outcome of the interaction between states or between groups 2 Outsiders can help resolve the commitment problems by promising to enforce what would otherwise be an unbelievable commitment by one state not to exploit its power against another 3 Promotes peace by serving as neutral observers and peacekeepers Collective Security faces 2 major challenges 1 A collective action problem 2 A joint decisionmaking problem The Security Council The main governing body of the UN it has the authority to identify threats to international peace and security and to prescribe the organization s response including military and or economic sanctions The permanent five PS the 5 permanent members of the UN Security Council the US Great Britain China Russia and France Voting Rule Enacting a substantive resolution in the Security council requires majority support among all Council members and the support of every one of the P5 Veto Power The ability to prevent the passage of a measure through a unilateral act such as a single negative vote P5 Peacekeeping Operation An operation in which troops and observers are deployed to monitor a ceasefire or peace agreement Peaceenforcement Operation A military operation in which force is used to make and or enforce peace among warring parties that have not agreed to end their fighting Cold War Paralysis 19461989 Security Council was largely incapable of dealing with issues that cut across the key divide On many matters one side or the other had an interest in blocking effective action The major exception was the Korean War Soviet Union not at decisionmaking meeting The Gulf War and the new world order Iraq invasion of Kuwait caused UN to pass resolutions for members to use quotall necessary means to bring about the unconditional withdrawal of Iraqi forces from Kuwait if Iraq did not comply voluntarily by January 15 1991 US had substantial international interest in the war Troops from 35 nations The Persian GulfWar was the least expensive war in America s history Bush called the quotnew world order one is which quot a credible UN can use its peacekeeping role to fulfill the promise and vision of the UN s founders The triumph of the lack of will Absent compelling national interests member states are reluctant to pay heavy costs or embrace high risks to further the community s interest in stopping aggression or ending humanitarian crises The member states care about the suffering but not enough to undertake the kind of military operation that would have been needed to end the con icts Ex Bosnian crisis pitted 3 ethnic groups against each other Serbs Croats and Bosnian Muslims 3way war with may atrocities Serbs engaged in quotethnic cleansing Rwanda experienced a con ict between 2 ethnic groups the Hutu and the Tutsi which erupted in genocide 75 of Tutsi killed Darfur a bloody con ict in western Sudan where governmentsupported militias have carried out systematic killings of the people there UN response to all of these has been extremely weak Quiet Successes UN efforts have been most successful in the area ofpostcon ict reconstruction Ex El Salvador UN peacekeeping operation played an important role in the country s recovery from a 12year civil war Other successes include Mozambique Liberia Sierra Leone East Timor Cambodia and even Bosnia From 911 to Iraq Consensus Lost Although all members were on record demanding that Iraq fully account for its past weapons programs they parted ways on the desirability of using military force to enforce this demand Anticipating its defeat in the UN the US went ahead with the invasion without explicit UN support 2 essential requirements for the UN to work as intended 1 None of the vetowielding members can see a potential operation as threatening to its interests 2 Member states and particularly the powerful member states must care enough to devote the necessary resources and take the necessary risks Effective action can thus be thwarted in 2 ways by selfinterest as in Tibet or by apathy as in Rwanda Former UN secretary general Dag Hammarskjold said quotThe UN was not created to take humanity to heaven but to save it from hell Even imperfect police are better than none World may be an even more violent place in their absence Chapter 6 International Trade What s so good about trade The benefits of specialization The division of labor permits diverse segments of society to focus on different economic activities in ways that benefits society as a whole Adam Smith s The Wealth of Nations Made specialization the centerpiece of his argument Selfsufficient was foolish because a greater division oflabor made societies wealthier It increases productivity and productivity fueled economic growth Ex Pin making Comparative advantage The ability of a country or firm to produce a particular good or service more efficiently than other goods or services such that its resources are most efficiently employed in this activity The comparison is to the efficiency of other economic activities the actor might undertake not to the efficiency of other countries or firms Absolute advantage The ability of a country or firm to produce more ofa particular good or service than other countries or firms using the same amount of effort and resources Economic logic insists that imports are the gains from trade while exports are its costs Free trade induces a country to follow its comparative advantage and economic logic implies that it is the ideal policy That is true even if free trade is pursued unilaterally Protection only serves to raise costs to consumers Why do countries trade what they do Countries will produce and export what they do best HeckscherOhlin HO trade theory The theory that a country will export goods that make intensive use of the factors of production in which it is well endowed Thus a laborrich country will export goods that make intensive use oflabor 4 factors ofproduction Land an essential input into agricultural production Labor typically understood to refer to undifferentiated and unskilled labor Capital for investment which refers both to the machinery and equipment with which goods are produced and to the financial assets necessary to employ this machinery and equipment Human capital which refers to skilled labor so called because the labor has been enhanced by investment in training and education NH WV W V 1 V How well does HO explain trade barriersThe industrial countries are rich in capital and skilled labor and they export manufactured goods that make extensive use of these endowments Most developing countries are rich in land raw materials or unskilled labor and they export agricultural products minerals or labor intensive manufactures Noneconomic factors that affect trade Diplomatic and military relations between nations and national trade policies Types of trade restrictions Protectionism The imposition of barriers to restrict imports Tariff A tax imposed on imports this raises the domestic price of the imported good and may be applied for the purpose ofprotecting domestic producers form foreign competition Quantitative restrictions quotas Quantitative limits placed on the import of particular goods It makes the imported good more expensive to domestic consumers Regulations Reduction in barriers after 1945 The outbreak of WW1 and depressions led international trade relations into 30 years of crisis and closure After 1945 The Western World under American leadership moved gradually to reduce trade barriers among developed nations Eventually most developing and formerly communist countries joined the liberalizing and globalizing trend Why do governments restrict trade Trade barriers usually re ect domestic concerns despite the fact that they implicate foreign relations The benefits and costs of trade barriers Trade protection makes imports more expensive which allows domestic producers to sell more of their products to raise their prices or both This may allow them to increase profits raise wages and hire more workers Trade barriers thus assist national producers One cost is that a trade barrier introduces economic distortions It leads to an allocation of domestic resources that is not to the country s comparative advantage The most direct cost of protection is to the consumers of the protected good Tariffs and quotas raise the domestic price of imported goods and may lead to price increases for similar domestically produced goods The redistributive effect of protection Producers gain and consumers lose Income is redistributed from domestic consumers to the protected domestic industry Who wins who loses Domestic industries protected by trade barriers receive clear and concentrated benefits 3 groups stand to lose 1 Consumers of the imported good 2 Exporters who worry that their country s protective barriers might provoke retaliation in foreign markets 3 Citizens in general may be willing and able to punish politicians for the costs that protection imposes on them StoperSamuelson SS theorem The theory that protection benefits the scarce factor ofproduction This view ows from the HeckscherOhlin approach if a country imports goods that make intensive use of its scarce factor then limiting imports will help that factor So in a laborscarce country labor benefits from protection and loses from trade liberalization Who would we expect to support oppose trade barriers We would expect owners of the scarce factors ofproduction in a country to be protectionist and owners of the abundant factors to favor free trade RicardoViner or specific factors approach A model of trade relations that emphasizes the sector in which factors ofproduction are employed rather than the nature of the factor itself This differentiates it from the HeckscherOhlin approach for which the nature of the factor land labor capital is the principal consideration Domestic institutions and trade policy If domestic institutions favor particularistic interests they would incline toward protectionism If they favor broad economic and consumer interests they would incline toward less protectionist policies Organization of interests Smaller highly motivated groups are better able to in uence trade policy Concentrated producers will win over diffuse consumers in many circumstances Representation through political institutions Political institutions that are more closely tied to narrow interests are more likely to favor trade protection than institutions that re ect broader interests Democracies re ect broad interests while dictatorships are restrictive Political party types Many European countries have strong classbased parties the working class votes for the socialist parties and other parties associate themselves more or less explicitly with farmers or business Although American labor movement has close ties to the Democrats and workingclass voters tend to vote Democratic these connections are weak by European standards Different electoral systems Most industrial countries are parliamentary and have a legislature elected on a proportional basis in which voters choose the party they prefer rather than the individual local candidate American voters elect the president on a national basis but elect individual local candidates whose ties to the national party may be weak Systems in between Westminster system hybrid presidentialparliamentary systems 1934Congress granted the president authority to negotiate certain trade agreements with other countries Before only Congress made trade policy The president became much more deeply involved and may believe that it has allowed the president to impart a protrade bias instead of the protectionist bias favored by Congress Compensation and trade policy Governments arrange compensation for people who lose from trade liberalization in order to diminish opposition to a removal of trade barriers the government wants to pursue Wages of unskilled workers in the US Trade puts unskilled American workers in direct competition with unskilled workers in poor countries with much lower wages which may depress the wages of the former Some analysts suggest that rich countries may face social and political con ict over economic openness unless they develop more extensive social safety nets to reduce the negative impact of the world economy on some groups in society Overcoming problems of strategic interaction Small numbers hegemonic stability information transparency may lead to trade cooperation repeated interaction linking concessions granted in one arena to concessions received in another Institutions and trade They can help mitigate all of the problems that stand in the way ofinterstate cooperation on trade They can set standards ofbehavior that governments are expected to follow They can gather information to assist member states in monitoring and enforcing compliance with their agreements They can also reduce the costs the governments of making joint decisions MFN Most Favored Nation Status A status established by most modern trade agreements guaranteeing that the signatories will eXtend to each other any favorable trading terms offered in agreements with third parties GATT General Agreement on Tariffs and Trade An international institution created in 1948 in which member countries committed to reduce barriers to trade and to provide similar trading conditions to all other members In 1995 the GATT was replaced by the WTO WTO World Trade Organization An institution created in 1995 to succeed the GATT and govern international trade relations The WTO encourages and polices the multilateral reduction of barriers to trade and it oversees the resolution of trade disputes Regional Institutions EU NAFTA and Mercosur Some argue that these institutions help mediate or avoid divisive trade policy con icts among countries Others see them more negatively believing that they may serve to limit trade with nonmembers Why are some industries protected and some not Depends on how organized the interests are the more cohesive and powerful interests are likely to get more government support Many nations electoral institutions favor farm regions over cities as does the US Senate which allows a sparsely populated farm state the same number of senators as a densely populated state