The following scenario:
A major financial crisis in China, with the potential to affect the global economy
(Ch. 8, see also section on currency collapse in Ch. 9);
Discuss what two theories of international
relations covered in the course would predict about how states and other international
actors would respond to this happening later in this century (see below on selecting
theories)
Title: The Impact of a Financial Crisis in China on Global Politics: An Analysis Based on Realism and Liberalism Theories
Thesis Statement: Realism theory predicts that states and international actors would respond to a financial crisis in China with a focus on self-interest, power dynamics, and potential conflict, while liberalism theory suggests that the response would prioritize cooperation, economic interdependence, and diplomacy.
Introduction
The occurrence of a major financial crisis in China has the potential to disrupt the global economy and trigger diverse responses from states and international actors. This paper aims to analyze the possible responses to such a crisis based on two theories of international relations covered in the course: realism and liberalism.
Realism Theory
According to realism theory, states are primarily motivated by self-interest, power, and security. In the event of a financial crisis in China, states may respond with a focus on protecting their own economic interests and power dynamics within the international system. Major powers, particularly the United States and other global economic players, may seek to exploit the crisis to further their own economic and geopolitical interests. This could potentially lead to increased competition, protectionist measures, and geopolitical maneuvering as states vie for advantage in the aftermath of the crisis. Additionally, realist perspectives would anticipate the potential for conflict or security dilemmas as states navigate the repercussions of the crisis and its impact on global power dynamics.
Liberalism Theory
In contrast, liberalism theory emphasizes cooperation, economic interdependence, and diplomacy as key factors in shaping international relations. In response to a financial crisis in China, states and international actors may prioritize collaborative efforts to mitigate the effects of the crisis on the global economy. Instead of resorting to unilateral actions or power plays, there may be a concerted effort to engage in economic diplomacy, multilateral negotiations, and cooperative measures aimed at stabilizing the global financial system. Liberal perspectives would anticipate a focus on fostering economic interdependence and seeking mutually beneficial solutions through international institutions such as the International Monetary Fund (IMF) and World Trade Organization (WTO), as well as regional economic forums.
Conclusion
In conclusion,
the responses to a financial crisis in China as predicted by realism and liberalism theories would diverge significantly based on their respective core assumptions about the nature of international relations. Realism theory would foresee a response characterized by self-interest, power dynamics, and potential conflict, while liberalism theory would anticipate a focus on cooperation, economic interdependence, and diplomacy. The actual response from states and international actors would likely reflect a combination of these competing perspectives as they navigate the complex implications of a major financial crisis in China on the global stage.