The European Union (EU) is considered as a unique institutional structure not only because of the transfer of the national sovereignty in a supranational level but mostly because of its long term existence and expansion. Although the institutional structure of the EU is much different and undoubtedly improved from the one of the European Economic Community (EEC) the study of the initiating process, namely the EEC, is essential in order to understand what the basis of the recent EU is. Hence, the research for the initiating process of the EEC and sequentially the international context in which the EEC was formed are of great importance not only for the academic scholars but mostly for the European citizens.
The concern of this study is the formation of the EEC under the International Political Economy theory (IPE), which emerged mainly after the Second World War and expanded in the decade of 70s. The cooperation of the leader European states in the formation of this institutional structure and its main task of European cooperation and adoption of common policies in order to achieve the demanded goal of economic development and prosperity is mainly based on the International Political Economy theory, since the last addresses the interaction of international relation and political economy. The first part of this study is devoted to the analysis of the International Political Economy and forms the theoretical framework of the study. Moreover, it presents the variety of the IPE and stresses its main aspects. Following, there is an introduction of the formation of the EEC and a short analysis of the political economies of the member states, which is helpful in order to have an overview of the different economies and the possible implications for the formation of the EEC. Finally, the conclusion consists of the outputs of the theoretical framework combined with the analysis of the economic situation of the different countries and attempts to present the causal relation between IPE and the formation of EEC.
Table of Contents
A. Introduction
B. International political economy theory (IPE)
B.1 What is IPE?
B.2. The aspects of IPE
B.3. Game theory and IPE
C. Introduction to European Economic Community (EEC)
C.1. The economic situation of the EEC member-states
D. Conclusion
Research Objectives and Core Themes
This study examines the formation of the European Economic Community (EEC) through the lens of International Political Economy (IPE) theory, aiming to illustrate how post-war economic conditions and the strategic coordination between European states necessitated institutional integration to achieve regional prosperity and stability.
- The theoretical framework of International Political Economy (IPE)
- Application of Game Theory to international economic cooperation
- Historical context of the formation of the European Economic Community
- Economic reconstruction and policy development in post-WW2 member states
- The causal relationship between IPE theory and the establishment of the EEC
Excerpt from the Book
B.1. What is IPE
International political economy (IPE) is not only a field of study in international relations and political economy but it is also considered as a set of global activities and conditions. Furthermore IPE can be interpreted as an ideology that characterizes the international system in distinctively modern, typically liberal terms. IPE should mostly be defined by the particular subject that attempts to explain thus is not a concrete theory or methodology that describes and analyze existing policies and rather than this it seeks to answer why certain policies were implemented by whom and what are the potential benefits for whom. In the context of globalization there is an indisputable interconnection between interstate economies and politics that makes the new subject of IPE more and more necessary in the academic fields of political economy and international relations. Namely, it is becoming salient in the world the inter-relationship between public and private power in the allocation of scarce resources and the importance of different definitions of the term power, which can be seen not only as the capacity of one actor to change the behavior of another but also as the capacity of actors to set the agendas. IPE can be also seen as the field of study between international economics and international relations and attempts to unite these fields or at least to lessen their gap.
Summary of Chapters
A. Introduction: This chapter outlines the significance of studying the EEC as the foundation for the modern European Union and presents the study's focus on utilizing IPE theory to analyze the community's formation.
B. International political economy theory (IPE): This section provides a comprehensive overview of IPE, covering its definitions, major ideological approaches, and the utility of game theory in understanding strategic international cooperation.
C. Introduction to European Economic Community (EEC): This chapter details the historical motivations for the EEC following World War II, focusing on the economic reconstruction of member states and the strategic need for coordination.
C.1. The economic situation of the EEC member-states: This section analyzes the specific post-war economic paths of Germany, France, Italy, and the BENELUX countries, highlighting their individual reconstruction efforts and structural developments.
D. Conclusion: The concluding chapter synthesizes the theoretical analysis with historical evidence to confirm the causal link between IPE principles and the successful institutional integration of the EEC.
Keywords
International Political Economy, IPE, European Economic Community, EEC, European Union, Game Theory, Economic Integration, Globalization, Post-war reconstruction, Political economy, Market coordination, Sovereignty, Trade policy, Regional cooperation, Institutional development
Frequently Asked Questions
What is the primary focus of this academic work?
The work focuses on explaining the formation of the European Economic Community (EEC) by applying theories from the field of International Political Economy (IPE).
What are the central thematic areas of the research?
The study centers on the intersection of politics and economics, the history of European integration, post-WW2 economic reconstruction, and the utility of formal theories like Game Theory in explaining state behavior.
What is the core research question?
The research aims to understand the causal relationship between International Political Economy theory and the historical process of the EEC's formation, specifically investigating why European states chose integration.
Which scientific methodology is employed?
The author uses a qualitative analysis approach, integrating historical economic data from member states with IPE theoretical frameworks, including the application of Game Theory models to describe international coordination problems.
What is addressed in the main part of the book?
The main part covers the theoretical foundations of IPE, detailed historical context regarding the EEC treaties, and an empirical review of the economic conditions of the initial member states, including Germany, France, Italy, and the BENELUX countries.
Which keywords best characterize this work?
The work is best characterized by terms such as International Political Economy, European Economic Community, Economic Integration, and Post-war Reconstruction.
How does the book explain the "free riding temptation" within the EEC context?
The book utilizes the Prisoner's Dilemma and Co-ordination Game models to illustrate that while states benefit from cooperation, they often face incentives to cheat or struggle to agree on the exact parameters of coordination.
What role did Germany's economic recovery play in the EEC formation?
Germany's "economic miracle" and its rapid industrial resurgence provided a strong incentive for the country to re-integrate into the world economy, which served as a stabilizing factor for the broader European economic project.
How does the author characterize the role of the state in post-war France?
The author describes the French state as the "motor of the economy," where central planning was used in a liberal manner to drive technological advancement and structural transformation.
- Quote paper
- Stavroula Chrisdoulaki (Author), 2010, The Formation of European Economic Community in the context of International Political Economy Theory , Munich, GRIN Verlag, https://www.hausarbeiten.de/document/160558
