Neoliberalism is a school of thought in international relations that originated in the mid-20th century as a reaction to classical realism and tried to promote a more cooperative and economically focused approach to understanding international relations. This approach emphasizes the importance of international institutions, economic cooperation, and the possibilities for state collaboration in the international system.
Here are some of the fundamental characteristics of neoliberalism in international relations:
- International Institutions: The United Nations, the World Trade Organization (WTO), and regional organizations such as the European Union are all heavily emphasized by Neoliberalism. Neoliberals say that these institutions can aid in conflict resolution, encourage cooperation, and facilitate inter-state discussions.
- Economic Interdependence: Neoliberalism emphasizes the importance of economic links and state interdependence. Economic cooperation, especially trade and investment, is seen to foster peace and lower the likelihood of conflict. Neoliberals claim that countries with mutual economic interests are less likely to engage in armed confrontation.
- Rational Actors: Like realism, neoliberalism assumes that states are rational actors. Unlike realists, however, neoliberals think states may work together to create decisions that benefit all parties involved. Rational decision-making considers not only military and security issues, but also economic and diplomatic tactics.
- Absolute Gains: Rather than relative gains, where states compare their profits to those of other states, neoliberalism emphasizes the pursuit of absolute gains, in which governments attempt to maximize their own benefits. Because states are less likely to see the success of others as a direct threat to their own interests, an emphasis on absolute gains can improve collaboration.
- Regime Theory: Regime theory is frequently used by neoliberal scholars to examine how international institutions and standards influence state conduct. Regimes are sets of laws, conventions, and practices that govern international relations on a variety of issues, including trade, the environment, and security. Neoliberals claim that well-designed regimes can promote collaboration while reducing the likelihood of conflict.
- Soft Power: The role of soft power in international relations is recognized by neoliberalism. The ability of a state to influence people by appeal and persuasion, rather than coercion or force, is referred to as soft power. Neoliberalism promotes the use of soft power to achieve foreign policy objectives, such as cultural diplomacy, economic incentives, and international aid.
- Democracy and Peace: Many neoliberals say that democracies are less prone to go to war with one another. They argue that democratic states are more transparent, accountable, and peaceful in international affairs. This is referred to as the “democratic peace theory.”
Conclusion
While neoliberalism in international relations is more positive and cooperative in its approach to global politics than classical realism, it is not without criticism. Some scholars suggest that neoliberalism exaggerates power differences between states and can be too utopian, particularly in the face of great power politics and conflicts of interest. Nonetheless, it is an important and prominent approach in international relations.