Session 15- Politics and Economics

In today’s capitalist society, economics and politics are synonymous to each other- one cannot progress without the other. If we look back to the 20^th century, we see that classical realists strayed from this view and believed that only maximizing a state’s military power can help the state ensure its survival and security rather than its economic well-being. With the passage of time, in the international relations arena, the views regarding the economic and political welfare of a state started evolving as well.

Classical realists rely greatly on the rationality and selfishness of humans and their thirst for power, neo-realism talks about latent power-the economy and the population. Neo-realists believed that in order to maximize security and military power, a state needs to focus on its economic structure as well because the bigger the economy, the budget allocated for military development will also be bigger. Similarly, as the world moved towards liberalism and free markets, the emphasis on the betterment of a state’s economy also increased greatly. Liberalists believed that through complex interdependence and trans-nationalism, the world’s political order will be stable and peace can be achieved. As the linkages between states increase, they become so dependent on each other that any broken law or rule will have dire consequences on the state’s economy.

The importance given to the economic prosperity of a state can also be explained through the Marxist critique of capitalism. Marxists believe that the capitalist society uses the economy as a base and translate their economic power into political power which they then use to further exploit the proletariat and make sure that their power remains unimpaired.

Where economics is concerned with studying and influencing the economy, politics is the theory of influencing people by exercising power. Time and time again, theorists have given great importance to the economic structure of a state because it helps shape up a country’s political framework.