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Summary International Political Economy IPC3702 - CONTEMPORARY ISSUES IN THE IPE R50,00
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Summary International Political Economy IPC3702 - CONTEMPORARY ISSUES IN THE IPE

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Summary International Political Economy IPC3702 - CONTEMPORARY ISSUES IN THE IPE

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  • November 11, 2021
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  • 2018/2019
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ESSAY 3 – CONTEMPORARY ISSUES IN THE IPE

Introduction:

In this essay I will be highlighting a number of issues in the contemporary IPE. These
problems in international politics are not equally clear-cut or comprehensive and
some of these issues often overlap.

These issues comply with Strange’s requirements in that it goes further than a purely
American perspective and covers more than interstate relationships – it offers a
degree of variety and covers all various interests.

According to Balaam and Veseth (2001;107), “each of the four main IPE structures is
a network of bargains, agreements, institutions and other relationships that connect
the people of the world in various ways”. Almost every issue in the IPE falls within
one or more of the primary and secondary power structures and can be addressed
against the background of bargains, agreements, institutions, interactions and
actors.

Furthermore, the issues that will be introduced and discussed are the North-South
divide, energy, aid provision, the environment, armaments and arms trade and lastly,
foreign direct investment.



Body:

The North-South divide:

The North-South divide is an entire problem area on its own as it is a comprehensive
and multidimensional theme in IPE. The North-South divide is one of the main
features of the post-war world and has received considerable attention in literature.

The North-South divide is a political and economic line drawn between the wealthy
and the poor countries of the world. Generally, definitions of the Global North include
the United States, Canada, Western Europe, and developed parts of Asia, as well as
Australia and New Zealand, which are not actually located in the geographical North
but share similar economic and cultural characteristics as other northern countries.
The Global South is made up of Africa, Latin America, and developing Asia including
the Middle East. The North is home to all the members of the G8 and to four of the
five permanent members of the United Nations Security Council.

The North may be defined as the richer, more developed region and the South as
the poorer, less developed region; many more factors differentiate between the two
global areas. 95% of the North has enough food and shelter. Similarly, 95% of the
North has a functioning educational system. In the South, on the other hand, only 5%
of the population has enough food and shelter. It lacks appropriate technology, it has
no political stability, the economies are disarticulated, and their foreign exchange

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