Random Thoughts on IPE

The integration of the financial markets of nations and states worldwide is undeniable and this reflects the status quo in the international community, especially where politics and economic are concerned.

The global financial crisis that has started in the United States has evidently scorched the entirety of the international community. This, of course, can be seen as the result of the interconnectedness between the global financial market and the United States. More than anything else, this phenomenon perfectly epitomizes the advent of the merging of the economies of the states and nations in the world. It inherently creates a connection with the theory on International Political Economy.

In a statement, Saskia Sasssen mentioned that there has been ‘a growing consensus among states to further the growth and strength of the global economy. This is seen in the way that the financial markets all over the world had somewhat become intertwined. It is only to be expected, therefore, that the decline of the economy of the hegemon has ultimately affected the rest of the world. In another statement, Sassen said that the view that states and international economic actors are inextricably opposed entities, both seeking dominance in the world political economy, provides an inadequate understanding of the relationship between states and markets, politics and economics.

The premise that the economies of states and nations are more integrated as ever in this day and age further explains why the rest of the world was direly affected by the global financial meltdown. Even as the downturn merely began in the US, its effects have inevitably led to a bank crisis and to unemployment worldwide.

In a recent study conducted by the UN, it was cited that middle-class families in the Philippines are not directly affects ny the global financial crisis. I was a little pensive at this statement; nevertheless, I chose to shut my mouth. As sheer fortune had it, a researcher from India pointed out that middle-class families in the Philippines are seemingly unaffected because the income-earners of these families have opted to take on two jobs and to get longer hours of work to sustain a decent living.

In this regard, pray tell how international political economy is not deemed relevant in our political and economic standing, as well as in the depth of family values that we are inculcating in the mindset of the young generation.

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