International Political Economy: Globalization, Finance, Trade & Crises - Essay Sample

Introduction

International political economy (IPE) is one of the important topics of debate that tends to analyzes economics and international relations while emphasizing on political economy. Currently,IPE scholars are focusing on the discussions and research regarding several elements in our society that ultimately impact on the international political economy such as globalization, international finance and trade, financial crises, world markets, multi-state cooperation in an attempt to address trans-state economic challenges, and the structural balance of power among nations and institutions.

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The armed issue remains a significant deterrent to the growth and development of the global international economy. Since mid-2016, the globe's economy has experienced a robust and wide-based recovery. Global growth hit over 3.0% in 2017, and this seems to be the highest recorded ever to be documented in seven years. In almost two-thirds of the world's nations strengthened as related to 2016. This enhanced economic outcome has, however, been drastically hampered by the maximized risks and humanitarian concerns some due to political reasons.

Nonetheless, trade tensions among significant economies have enormously intensified recently, leading to a considerable threat to the world's economy. The pressures have resulted in the international downfall of the globe's economy. For instance, due to political issues, some countries face civil war and tension, thus posing fear of the worldwide economy.

The connection between civil or political conflict and development is relatively complicated, with causality trying t seek help international and from neighboring countries. Higher degrees of poverty and inequality seems to be linked with an enhanced likelihood of political instability, as economic marginalization and minimized job opportunities facilities social and regional discontent leading to impediments to economic growth and development progress.

In various states, especially in Africa and Western Asia, weak political and security conditions tend to be the main threat to the current economic picture. It should be noted that politics and conflicts seem to have a significant impact on financial positions. When a country experiences a political instability that may result in civil conflict; it may force the world to participate in bringing peace. World military expense had hit over $1.8 trillion, which is 2.1% of world GDP in 2017 and has continued to shoot up for over 15 years - this aggregate figure, masks stark variation in the military burden of nations. For most of the developing economies, more exceptional defense and security expense diverts scarce public resources from the real needed investment in various areas such as infrastructure, health, and education, hence resulting into underdevelopment towards sustainable growth and development. The frequent political instabilities have hindered the intended progress on achieving the sustainable development agenda of vision 2030 by most countries.

Many political analysts and international economic experts have always argued that the ruinous humanitarian crises and neighboring nations tend to experience excessive financial losses and damages. Some of such financial losses may include displacement of populations, destruction of capital and infrastructure, and fear by investors to consider such regions. On the other hand, some of the developed nations such as the European countries tend to be facing the issues of migrations as a significant political and financial issue.

The number of asylum seekers has always shot up. In 2016 and 2017, the most common nationalities seeking asylum in the EU included Afghanistan, Eritrea, Iraq, Nigeria, Pakistan, and Syria. The leading destination states the EU were France, Germany, Greece, Italy, Spain, and the United Kingdom. Additionally, the integration of asylum seekers into the community and the labor market may be a gradual process with relatively short-term financial costs. For instance, across, Europe the value is approximated to be around 10,000 euro for every application for the first year.

Many internal and regional political and economic problems in the Commonwealth of Independent States (CIS) area seem to affect development prospects adversely. For instance, in Ukraine, an estimated number of over 1.7 million citizens are still displaced due to the civil and political conflict since 2014. The financial and social support availed to them tend to be relatively scarce. The conflict negatively impacted on the country's economy, incurring losses on coal mining and other industries, export and budget revenues and also affecting transport connections and supply of energy.

Most of the development opportunities seem to facilitate development progress in some of the African countries since many African countries are in circumstances of political instability and social protests. More signs of economic stabilization are likely to be experienced regardless of ongoing political issues in various nations around the globe with fiscal balance improving with more significant revenues. The international political economy should be well figured out to ensure that the globe's economy is stable and is prevented from any negative impact from the political situation.

Moreover, nations of the world are equally concerned with the world's economy and are obliged to ensuring that it remains stable and productive. The world is concerned about any political situation in any of its nations since a particular problem may result in the deterrent of economic progress of the neighboring countries. To bring the topic on the international political economy more relevant, most of the scholars have tried to use the term globalization with the aim of increasing interconnectedness via various activities of the world's different nations. Basically, we can suggest that the globe is an open system by nature, and any problem in one state can influence the other neighboring countries either directly or indirectly. For instance, one of the significant topics of the collective world debate is on global warming.it should be noted that the challenges that are posed in an open system tend to facilitate learning and change.

Trading and marketing among the nations of the world are critical; however there might be some level of antagonism between the countries thus impacting on the world's economy.fo such reasons any form of adversary whether political or social needs to resolved amicably. Various scholars have over decades argued that the market and states are bound together, and there is a need for some degree of cooperation to enhance the international economy. The economic production should not only focus on the fiscal part but also the social production and promotions of the world's occupants and their environment.

It is evident that due to the technological advancement and the minimization of both the financial and political barriers; the world tends to be smaller and accessible. And again, the costs linked with the operations of the international business have proven to reduce drastically. The world nations have come together to try and resolve some of the social and political issues to enhance the world's economic progress and prosperity. Nonetheless, the influence of globalization on society and people has been significantly regulated with some set of policies and regulation throughout the world's nations.

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