BLOG #5

BLOG #5

“The contention that hegemony leads to a more open trading structure is fairly well, but not perfectly, confirmed by the empirical evidence presented in the preceding sections… The structure of the international trading system does not move in lockstep with changes in the distribution of potential power among states. Systems are initiated and ended, not as a state-power theory would predict, by close assessments of the interests of the state at every given moment, but by external events- usually cataclysmic ones.” (Krasner; p. 335; 341)

The importance of global trade can be resumed in its historical influence over the development of many states and its impact in opening societies to greater and dynamic social and economic challenges. This quote by Krasner, even though short and not self-explanatory, gives us an indication of the position that Krasner assess the development of global economy during the time he wrote this (late 70s). Most importantly, it glances at the basic assumption made by neo liberals and reformist for free trade and open markets  which is that hegemony in itself is a fundamental characteristic of a successful capitalist state. In the quote, he acknowledges that that’s not the case with every country, yet his argument in the preceding pages indicates a subliminal tone much in accordance with the historic approach to global trade.

Naturally when a country leads and is larger physically and socio-politically the perception is that that particular country is more equipped to deal with the challenges that openness brings. In addition to that characterization, Krasner states that smaller countries would be more receptive of openness from an aggregate national income perspective and that fundamental problem might arise in the impact openness could have in social stability. As it was demonstrated in the lecture, the world as we know it today is profoundly influenced by the effects of global trade and globalization; and it continues to be that way to the present.

This very idea is important in relation to the quote because hegemony or the leading power of a state is not always inclined to the openness of markets and free trade; the assumption that all states are looking forward or see capitalism as the most effective means towards growth and stability. The reality is that some states with a strong hegemonic presence tend to disregard neoliberal practices and implement their own means of economic development. In addition, Krasner sells neoliberalism and free trade as this marvelous economic attitude that will create positive things for a country but history since the late 70s have told us otherwise. It seems that the only ecosystem in which capitalist practices can flourish is if the conditions of a state are such that imminent change is necessary. In other words, that the very brink of chaos, this economic theory seems to facilitate its way in.