This is an advance summary of a forthcoming article in the Oxford Research Encyclopedia of Politics. Please check back later for the full article.
Tourism is important in debates on change and development because it is arguably the world’s largest industry, a major driver of economic growth, and a high priority in developing countries’ plans for economic development.
Discourses of responsible tourism claim to address the concerns surrounding mass, packaged tourism: principally, the lack of environmental and cultural authenticity and sustainability. Responsible tourism promises to fulfill tourists’ desires to experience authenticity while having positive economic and social impacts. Proponents of this kind of tourism claim that, by creating a demand for these “goods,” communities can protect and revive pristine environments and authentic cultures.
Authenticity plays an important role in the sustainable development discourse implicit in responsible tourism. However, there are tensions between authenticity, sustainability, and neo-liberal development whose historical trajectories can be traced from the 1970s to the present; from a rejection of market-led economic growth to delivering sustainability through market mechanisms. Critics have noted that the neo-liberalization of every aspect of development has been integral to the political agenda of global governance by institutions such as the World Bank. In short, by integrating sustainable development into neo-liberal mechanisms, alternatives to dominant market-led development are denied.
Tourism plays a major part in these debates because conceptualizations of authenticity have followed a similar path: from imaginations of pre-contact, harmonious idylls; to creation of “value-added” products; to conservation of natural environments; and preservation and revival of traditional cultures for tourist consumption. The turn away from modernization development paradigms and towards cultural revival is politically fraught. Whereas traditional cultures, admired by the West for their environmental sustainability and social cohesion, existed largely outside of global markets, under global neo-liberal regimes, cultural revival is delivered through market forces. Moreover, delivering cultural revival through tourism often de-politicizes highly contentious issues. This is particularly pertinent in Latin America, where the continent has been experiencing a “left turn” in formal politics, including indigenous cosmovisions in new constitutions.
Finally, debates on authenticity, sustainable development and tourism, and especially responsible tourism, are key to understandings of current political approaches to development.
Randall L. Schweller
The balance of power—a notoriously slippery, murky, and protean term, endlessly debated and variously defined—is the core theory of international politics within the realist perspective. A “balance of power” system is one in which the power held and exercised by states within the system is checked and balanced by the power of others. Thus, as a nation’s power grows to the point that it menaces other powerful states, a counter-balancing coalition emerges to restrain the rising power, such that any bid for world hegemony will be self-defeating. The minimum requirements for a balance of power system include the existence of at least two or more actors of roughly equal strength, states seeking to survive and preserve their autonomy, alliance flexibility, and the ability to resort to war if need be.
At its essence, balance of power is a type of international order. Theorists disagree, however, about the normal operation of the balance of power. Structural realists describe an “automatic version” of the theory, whereby system balance is a spontaneously generated, self-regulating, and entirely unintended outcome of states pursuing their narrow self-interests. Earlier versions of balance of power were more consistent with a “semi-automatic” version of the theory, which requires a “balancer” state throwing its weight on one side of the scale or the other, depending on which is lighter, to regulate the system. The British School’s discussion of balance of power depicts a “manually operated” system, wherein the process of equilibrium is a function of human contrivance, with emphasis on the skill of diplomats and statesmen, a sense of community of nations, of shared responsibility, and a desire and need to preserve the balance of power system.
As one would expect of a theory that made its appearance in the mid-16th century, balance of power is not without its critics. Liberals claim that globalization, democratic peace, and international institutions have fundamentally transformed international relations, moving it out of the realm of power politics. Constructivists claim that balance of power theory’s focus on material forces misses the central role played by ideational factors such as norms and identities in the construction of threats and alliances. Realists, themselves, wonder why no global balance of power has materialized since the end of the Cold War.
The idea that states should provide a means-tested guaranteed minimum income for citizens who are unable to meet their basic needs is widely shared and has been a central component in the evolution of social citizenship rights in existing welfare states. However, an increasing number of activists and scholars defend the more radical option of establishing a universal basic income, that is, an unconditional income paid to all members of society on an individual basis without any means test or work requirement. Indeed, some political philosophers have argued that basic income is one of the most important reforms in the development of a just and democratic society, comparable to other milestones in the history of citizenship rights, such as universal suffrage or even the abolishment of slavery. Basic income or similar ideas, such as a basic capital or a negative income tax, have been advanced in many versions since the 18th century in different parts of the world and under a great variety of names. However, while these were previously often isolated and disconnected initiatives, basic income has more recently become the object of an increasingly cumulative research effort to shed light on the many aspects of this idea. It has also inspired policy developments and given rise to experiments and pilot projects in several countries.
Capitalist peace theory (CPT) has gained considerable attention in international relations theory and the conflict literature. Its proponents maintain that a capitalist organization of an economy pacifies states internally and externally. They portray CPT either as a complement or as a substitute to other liberal explanations such as the democratic peace thesis. They, however, disagree about the facet of capitalism that is supposed to reduce the risk of political violence. Key contributions have identified three main drivers of the capitalist peace phenomenon: the fiscal constraints that a laissez-faire regimen puts on potentially aggressive governments, the mollifying norms that a capitalist organization creates; and the increased ability of capitalist governments to signal their intentions effectively in a confrontation with an adversary. Defining capitalism narrowly through the freedom entrepreneurs enjoy domestically, this article evaluates the key causal mechanisms and empirical evidence that have been advanced in support of these competing claims. The article argues that CPT needs to be based on a narrow definition of capitalism and that it should scrutinize motives and constraints of the main actors more deeply. Future contributions to the CPT literature should also pay close attention to classic theories of capitalism, which all considered individual risk taking and the dramatic changes between booms and busts to be key constitutive features of this form of economic governance. Finally, empirical tests of the proposed causal mechanism should rely on data sets in which capitalists appear as actors and not as “structures.” If the literature takes these objections seriously, CPT could establish itself as central theory of peace and war in two respects. First, it could serve as an antidote to the theory of imperialism and other “critical” approaches that see in capitalism a source of conflict rather than of peace. Second, it could become an important complement to commercial liberalism that stresses the external openness rather than the internal freedoms as an economic cause of peace and that particularly sees trade and foreign direct investment as pacifying forces.
The 2008 Global Financial Crisis (GFC) and subsequent European Debt Crisis had wide-sweeping consequences for global economic and political stability. Yet while these twin crises have prompted soul searching within the economics profession, international political economy (IPE) has been relatively ineffective in accounting for variation in crisis exposure across the developed world. The GFC and European Debt Crisis present the opportunity to link IPE and comparative political economy (CPE) together in the study of international economic and financial turmoil. While the GFC was prompted by the inter-connectedness of global financial markets, its instigators were largely domestic in nature and were reflective of negative externalities that stemmed from unsustainable national policies, especially those related to financial regulation and household debt accumulation. Many in IPE take an “outward looking in” approach to the examination of international economic developments and domestic politics; analysis rests on how the former impacts the latter. The GFC and European Debt Crisis, however, demonstrate the importance of a (CPE-based) “inward looking out” approach, analyzing how unique policy and political features (and failures) of individual nation states can unleash economic and financial instability at the global level amidst deepened economic and financial integration. IPE not only needs to grant greater attention to variation in domestic politics and policies in a time of closely integrated financial markets, but also should acknowledge the impact of a wider array of actors beyond banks and financial institutions (specifically more domestically rooted actors like households) on cross-national variation in the consumption of foreign credit.
Ever since Aristotle, the comparative study of political regimes and their performance has relied on classifications and typologies. The study of democracy today has been influenced heavily by Arend Lijphart’s typology of consensus versus majoritarian democracy. Scholars have applied it to more than 100 countries and sought to demonstrate its impact on no less than 70 dependent variables. This paper summarizes our knowledge about the origins, functioning, and consequences of two basic types of democracy: those that concentrate power and those that share and divide power. In doing so, it will review the experience of established democracies and question the applicability of received wisdom to new democracies.
Timothy Hellwig and Dani M. Marinova
Connections between the economy and vote are commonly invoked to evaluate political accountability in representative democracies. A principal motivation for studying economic voting lies in its value as a gauge of whether democracy works or not. In recent years, however, researchers have cast doubt on the assertion that economic conditions influence voters’ evaluations of political incumbents.
Criticisms hail from several directions. Some, adopting a cross-national perspective, cite the instability problem as evidence against economic voting’s existence. That is, variance in the economy-vote relationship across different national contexts is sufficiently large so as to undermine claims that the economy registers a systematic effect. Other critics charge that the electorate lacks sufficient knowledge to incorporate economic conditions in their decisions at the polls. Still others remind us not to mistake correlation for causation. They charge that the voters’ perceptions of how well the economy is performing are viewed through a pre-existing partisan lens. All told, these and other reservations cast doubt on the use of economic voting as a means to evaluate accountability and, in turn, democratic performance.
These charges against the fidelity of economic voting require further examination. Rather than join a growing chorus of observers concluding that the economic vote is a chimera, this piece posits that recent critiques should push us to reconceive rather than discredit economic voting. Recent work in psychology and behavioral economics provides a basis for constructive and meaningful reinterpretations of the economy’s influence on voter decisions. These new directions include an emphasis on framing effects—be it on the part of strategic elites or from the media, an emphasis on what voters know about the economy, and a wider consideration of just which “economy” matters to which set of voters. While many in number, each of these new directions advance understanding by embodying deeper conceptions of voters and elected officials.
Stephanie J. Rickard
Policies as diverse as tariffs, exchange rates, and unemployment insurance vary across democratic countries. In an attempt to explain this cross-national variation, scholars have turned to the institutions that govern countries’ elections. The institutions that regulate elections, also known as an electoral system, vary significantly across democracies. Can these varied electoral institutions explain the diversity of policies observed? This question remains unanswered. Despite a growing body of research, little consensus exists as to precisely how electoral institutions affect policy. Why is it so difficult to untangle the effects of electoral institutions on economic policy? One reason for the confusion may be the imprecise manner in which electoral institutions are often measured. Better measures of electoral systems may improve our understanding of their policy effects. Improved theories that clarify the causal mechanism(s) linking electoral systems to policy outcomes will also help to clarify the relationship between electoral systems and policies. To better understand the policy effects of electoral institutions, both theoretical and empirical work must take seriously contextual factors, such as geography, which likely mediate the effects of electoral institutions. Finally, different types of empirical evidence are needed to shed new light on the policy effects of electoral institutions. It is difficult to identify the effects of electoral systems in cross-national studies because of the many other factors that vary across countries. Examining within-country variations, such as changes in district magnitude, may provide useful new insights regarding the effects of electoral institutions on policy.
The topic of fiscal politics includes taxation and spending, budget balances and debt levels, and crises and the politics of austerity. The discussion often focuses on how some variable—such as the international environment, or political institutions—constrains “politics” in this realm. Almost omnipresent concerns about endogeneity run through this research. While this is a “big” policy area that deserves study, tracing causation is difficult.
Margaret E. Peters
Immigration has largely been neglected as part of the study of International Political Economy (IPE) until recently. Currently, IPE scholars have focused on two questions regarding immigration: what explains variation in public opinion on immigration and what explains variation in immigration policy.
The scholarship on public opinion on immigration has largely been divided into two camps, those who argue that economic factors drive opinion and those who argue that cultural factors are the driver. Those who study the role economic factors have played in shaping opinion on immigration often start with the Stolper-Samuelson theorem. The Stolper-Samuelson theorem shows that while immigration increases the overall size of the economy, it has different distributional effects. Immigration increases the size of the labor pool and, thus, should increase the returns to capital while decreasing wages. As such, those who derive most of their income from capital should favor immigration while those who derive most of their income from wages should oppose immigration. Additionally, the Stolper-Samuelson model shows that openness to trade should have the same effects as open immigration; thus, people should oppose or favor both trade and immigration. Early scholarship examined these predictions and found that opposition to immigration was much higher than opposition to trade and that those who derive much of their income from capital also oppose immigration at high rates. In response, one set of scholars focused on the additional costs that immigration, but not trade, brings. Immigrants, unlike goods, may place a burden on the social welfare system and thus, opposition to immigration especially by the wealthy may be driven by these costs. Other scholars noted that immigrants work in many industries that are unaffected by trade—most notably the service sector—and this may explain opposition to immigration. Finally, a third group has argued that opposition to immigration is largely driven by cultural concerns and xenophobia. Currently, this debate continues with both sides examining more nuanced survey data.
Scholarship on immigration policy has similar divides. Immigration policy has become more restrictive since the late 19th and early 20th centuries, when most countries had very few restrictions on immigration. To explain these restrictions, one school of scholars has argued that labor unions oppose immigration, as it hurts the wages of their members. As unions gain strength, immigration should become more restricted. Others focus on the rise of the welfare state, arguing that immigration has been restricted to keep costs low. A third group has argued that greater political rights in the early and mid-20th century for the generally xenophobic working class has led to the restrictions. Finally, new scholarship argues that increased globalization—in the form of increased trade and increased foreign direct investment—has sapped business support for immigration, which has allowed anti-immigrant groups to have more say. Using a wealth of newly collected data, scholars are testing these different theories.