Our world is highly interconnected. We recognize this from how we live our personal lives in a lot of instances. In other words, we understand that the actions that we take online as an example have an impact on other people. From leaving a helpful comment on someone’s photo to buying or selling a product via the Internet. It is clear that our actions connects and have consequences. What we don’t always understand is how other things connected as well. Consider the political economy and how it focuses on the connections between individuals, government, and public policy.

What Is The Political Economy?

The average layperson has often heard of some of the prevailing economic theories in the world. Terms as typical capitalism and communism describe economic theories that exist in the real world and play out on a grand scale. Politicaleconomists study how these theories work out when they put into practice in the real world. Instead of just having a discussion about the pros and cons of a particular economic theory. These researchers will study what happens when an economic system is released into the wild.

The political economy is something observable that has plenty of natural examples out in the world. We can compare a capitalist economy country to a communist or even socialist one with ease on a whole host of measurable metrics. One could look at poverty rates, rates of violence, even birth rates. Whatever topic one wanted to explore more deeply can examined in the political economy of our world.

How To Approach The Political Economy

There are handful approaches that one may use to explore and examine the political economy. It is important to understand what these are so as to know how the political economy works.

Interdisciplinary Studies-

This is when one takes a variety of different academic subjects and uses them to study political economy. One may incorporate disciplines such as sociology, political science, and public economics to determine the answer to a question. They can look at how these different branches of study play off of one another in our political economyprogram. Why that matters so much? This can helpful for identifying how the various fields of study. This all bring something to the table when it comes to answering the big questions.

New Political Economy

Instead of thinking as the political economy as something to analyzed. this approach avoids the whole idea of reviewing a political ideology under a microscope. This method tries to find assumptions that lead to political arguments about the ways that societies run. In other words, this is not the direct study of capitalism or communism or socialism. Rather, this is a method of looking at the real-modern political economy. It also relates to a culture or society as it stands right now. It leaves the debate over global political economy ideology out of the picture entirely.

International Political Economy

This final approach looks at the way that international relations spring up as a result of the political processes. It is fun to look not just at one country or society to figure out how they do or do not do things. Rather at the whole host of nations and how they interact with one another. Something as simple as that is excellent cause it means that no one idea or ideology is examined exclusively. Slightly, all systems compared against one another to see. How the world reacts when different systems meet up with one another, so to speak.

What Do We Get From Studying Political Economies?

The study of political economies is not meant merely to an interesting diversion from life. The plenty of crucial elements to a political economy that benefits humankind when researched and understood. One of the biggest questions that political economists seek to answer is which systems and ideologies appear to produce the best results for the most people. There held frequent debates and disagreement on this issue, of course. Still, the reality remains that studying the question is a lot more productive than having an uninformed opinion on the answer.

Many political economists seek to answer why certain political actors make the decisions. They make as they relate to politics and the economy. What is seen on the surface level is not as instructive as having a full view of why a particular political figure has decided to choose one thing over another. He or she may have a lot of valid reasons for making the choices that they do. But it is not always known until someone gets under the hood. They tries to determine why those particular choices are made. Political economists even take a look at institutions set up in certain parts of the world that determine how certain actions play out.

Take the United States Constitution as an example. The document dictates that specific rules must followed when electing national political figures. The minimum age requirement immediately comes to mind. This is of interest to a political economist. It means that specific actions that perhaps would have otherwise occurred, such as electing someone to Congress. Who is under the age of 25 cannot happen due to these rules and political institutions.

Dominant Political Economic Theories

There are three dominant political economics theories that have emerged from decades of researching the topic. They are: Liberalism, Marxism, and Economic Nationalism. We want to take a quick look at each of these theories briefly with the understanding that they cannot easily summed up in just a few paragraphs.

Liberalism-

This is the idea that labor and the exchange of goods can used for the benefit of everyone. Society will progress and improve as more labor and exchange is freed up and allowed to do what it would naturally do. One might think of this idea as “free-market capitalism” as that is how it has branded in many parts of the western world. The needs and wants of the community prevail over the needs and wants of the individual in this society in terms of how decisions made. Equal opportunities extended to all people in this society in the most idealistic version of this concept.

Marxism-

Inequity in a Marxist system is inherently bad for society. This concept does not support the private ownership of any kind of resource or land. The belief in this system is that private ownership leads to an unfair distribution of wealth and creates inequity that does not work out for society as a whole. The belief is opposite that of liberalism as the Marxist ideology believes that the free exchange of goods and labour ultimately only benefits the elites.

Economic Nationalism-

This theory states that the state possesses all power and that individuals’ only recourse is to make use of the economic benefits that they do have. The belief here is that the state should control all resources as the general public cannot trust to do so. The idea is that individuals cannot create a stable society as they are bound to chaotic and ignorant of what they need to do to help their communities and their country grow and prosper.

As you can see, there are a lot of theories about political economies out there, and there are a lot of uses for this line of study. It produced some of the most interesting findings in the various fields that it borrows from, such as political science, sociology, and economics. Many events shaped through one ideology or another as they all battle to move society in one direction or another over time. Thus, the political economy is and will remain highly important for a long time to come.

FAQ

What is the nature of political economy?

Economics is a very particular social science. Throughout history, there have been different theoretical approaches to the study of economic phenomena. The economy have been directly or indirectly related to the political interests of different social classes. Beyond the various methods, we can say that Economics focuses its study precisely on the economic processes of civil society. This means how human beings organize the production, distribution, capital, and consumption of goods. In other words, that studies the social relationships that men establish between yes to produce the diversity of products required to satisfy their needs. In short, what the Political Economy is looking for is understand how different forms of organizing production (social relations) emerge, develop, consolidate, and disappear throughout history.

How does political instability affect the economy?

The relationship between political instability and economic performance could easily seen as a “destructive” circle. The political instability reduces the chances of implementing a “comprehensive, coherent, and sustained” economic policy agenda. This results in deficient growth, increasing unemployment, and economic inequality, affecting the government’s ability to implement effective economic processes and policies. Periods of political uncertainty, in general, are never positive for any business and even in developing countries. Among other problems, they cause multinational corporations to protect themselves by reducing their workforce or make investors reluctant to bet on the country. To sum up, political instability delays the overall economic growth of a nation. 

What is urban political economy?

Urban economics is the exploration and the study of how the political and economic factors of urban areas are manage. So, every aspect of these areas has to be analyzed as the factors of the local, material production, the infrastructure, and the characteristics obtained. There are many places and courses where it is possible to study it in-depth. They teach to analyze the capital production’ structural processes, actions of various public and private agents, the socio-spatial transformations of the city, and the neighborhoods. This is made as a practical approach to urban problems, and as a deepening of the structure-agency relationship concerning such alterations. 

What is political economy major?

The political economy university course design to study the relationship, respectively, government, society, and economy, from a wide range of perspectives in a comprehensive way. Majors in Political Economy explore how real-world market environments incorporate into both politics and culture. The vital component involves detailed research of both political science and economics‘ core theoretical methods. Which attempts to address often artificial obstacles to the specialization that can define each discipline taken alone.

Any professor must motivate their scholar to also focuses on current significant issues, though establishing on a solid historical basis. Each student can choose whether to research topics such as economic growth, globalization, international trade and investment, global inequality. The climate science, allocation of resources, financial systems, global economy technology data, or health policy. This political game theorycourse aims to analyze the state’s position in the economy and determine how each administration of government and market institutions will push forward into a better society.

Why is political economy important?

Searching and learning about the political economy does not only give an opinion. It provides knowledge, wisdom, and more perspective on how to see the future through history. The leadership and stability of a state very much depend on the strength of the institutions within it. The political economy is influential in society.  Therefore, the community will be able to have a high quality of life rates and growing development. It profoundly influences social development by delimiting the activities that people carry out to satisfy their needs. Likewise, it refers to the study of state administration, taking into account economic, political forces, and sociological factors. It also has to learn about the main historical political theories, such as the Marxist and liberal theories.