mercantilism
TRANSCRIPT
04/08/23 1
Mercantilism versus Marxism
Presented by:
Marco Di FrancoMarta GregoriMichael Wyss
Huang Wei
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Table of Content
Introduction Mercantilism
– 3 main types of Mercantilism– Mercantilism and globalization
Marxism– view of Capitalism– Structuralism
Comparison of Mercantilism and Marxism Discussion
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Introduction
IPE Perspectives– Mercantilism– Marxism– Liberalism
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„Mercantilism is the oldest perspective of IPE and arguably the most
powerful“
Mercantilism
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Definition
„Mercantilistic states try to create wealth and power in order to
preserve and protect their national security and independence“
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Types of Mercantilism
Classical Mercantilism 15th-18th
Economic Nationalism 18th-19th
Neomercantilism since WW II– Modern Neomercantilism– Statism
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Classical Mercantilism
State intervention in the economy
security
wealth power
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Classical Mercantilism
Main goals:– Trade surplus– Independence– Wealth as a key to power
State policies:– Protectionist trade– Monetary measures– Colonialism
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Economic Nationalism
Main goal:– Internal development of the national
economy
Advocates:– Alexander Hamilton (USA, 1755-1804)– Friedrich List (Germany, 1789-1846)
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Economic Nationalism
State policies:– Trade protection– Protection of infant industries– Promoting of domestic industries
• Subsidies internal and external competitiveness
Manufacturing was considered more important than agriculture
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Neomercantilism Main goals:
– International peaceful trade– National economic security– National independence
State policies:– Export subsidies– Import tariffs and quotas– VER and NTV– Consulting, loans, and investment promotion
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Modern Neomercantilism
„The capacity to generate wealth is as important as the capacity to produce military weapons“
Three major benefits:– Military weapons– Jobs, consumption and technology– Self-sufficiency and political autonomy
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Statism
Mercantilism as an economic management
„States must subordinate economic policies to political objectives“
Mostly used in communistic countries
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Globalization and Mercantilism
There are two ways states can deal with:
Defensive mercantilism (benign) Offensive mercantilism (malevolent)
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Who is Karl Marx?
Born in Prussia (now Germany) 1818 Studied philosophy Member of „Communist League“ He wrote with Engels „The
Communist Manifesto“ Studied concepts of Adam Smith Died in 1883
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Why do we study Marxism in the context of IPE?
Famous personality in history and political economy
His ideas are still alive today
Theories about class struggles, exploitation and technical change
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Class struggle
He was interested in the forces which lead to economical crisis
He revealed deep class cleavages
Pressure of competition and profit-maximization leads to exploiting workers
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Class struggle
Quote out of „The communist‘s Manifesto“:
„...the bourgeoisie has left no other bond between man and man than naked self interest...”
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Marx and crisis of capitalism
Quote:
„ The bourgeoisie, by the rapid improvement of all instruments of production, by the immensely facilitated means of communication, draws all nations, even the most barbarian, into civilization.“
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Marx and crisis of capitalism
The capitalism contains the seeds for self-destruction
Three laws– Falling rate of profit– Disproportionality– Concentration
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The law of falling rate
Unemployment increases
Profit decreases
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The law of disproportionality
Overprduction
Underconsumption
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The law of accummulation of capital
Inequality in income wealth because of exploitation
More money goes to lesser people
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Aspects of structuralism
Economic structure – it influences the distribution of wealth and power
Security structure – it links rich countries with poor countries
Knowledge structure – it creates exploitation
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Structuralism in the modern World
Economy provides the means of organization in the international system– A single division of labor, nations are
dependent on economic exchange– The sales of products are good for the
sake of profit– Socioeconomic units
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Structuralism in the modern World
Being dependent– Colonial dependence– Financial-industrial dependence– Structure of dependence
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Structuralism in Perspective
Country has been defined by the political, economical and intellectual forces of nationalism, liberalism and structuralism
Global capitalism dominates the world and tends to be at a global level
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Is Marxism worthwile today?
The answer is „Yes“
Three reasons to study Marxism– Provide us with powerful ideals– Important to understand communism
practiced in former Soviet Union– Understand that the world has been
reached the beginning of the next conflict over the natural capitalism
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Questions & Answers
Friedrich List would agree that „free trade“ is a myth!
Can a country be independent if it exports?
Which of the three perspectives is more likely to have a „comeback“?
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Sources
International Political EconomyDavid N. Balaam Michael Veseth
www.econlib.org www.lucidcafe.com www.marxist.org