1

STRUCTURALISM
Reference: Balaam, D. N. and Veseth, M. 2008. Introduction to international political economy. Upper Saddle River. Pearson/ Prentice Hall. Balaam, D. N. and Dillman, B. 2011. Introduction to international political economy. Pearson Education.

Introduction
Theories, concepts and ideas that have been linked with some of the Marxist and Leninist thought. Some of these theories, concepts and ideas are based on these scholars thought. Examples are dependency theory and modern world system.

Karl Marxs Thought (Marxist Thought): An Introduction

1. It is said that the collapse of communism in Russia and Eastern Europe led to the Marxs death. This could be referred to the demise of political and economic system that adopted and implemented Marxs thought and idea. However, the thought and idea still remain to the present time. For example, there are theories that use the notion of class struggle, exploitation, imperialism, and technical change (Balaam 2008, p.62). 2. Who is Karl Marx and what his contribution? He lived in the 19th century (1818-1883). He was the main figure of a structural approach to understand the political economic system. He was born in Germany and lived in England. He lived in the period of Industrial Revolution and attempted to study European cultural, political and economic environment of that period. He worked with Friedrich Engels, observing the operation of factories in England. He found that the labours (adults
Norafidah Ismail, School of International Studies, COLGIS. 2011/2012

2 and children) worked under a terrible working environment and lived in poor. 3. Marx was familiar with the concept of mode of production which was defined as system of political economy. The mode of production was shaped by the forces of production, for example the sum total of knowledge and technology that existed in the society. The mode of production would create the economic structure that was seen in the form of the relations of production or class relations. This structure, later, would shape the social and ethical structure. 4. Marx attempted to understand the class relations. In his visit to the factories, he identified bourgeoisies (capitalist or the owner of capital) exploitation of proletariat (workers). 5. As a result of this exploitation sharp differences and a huge gap were created between the two groups, the imbalance of power between them was severe, the one-sided relationship existed in the relation between the bourgeoisie and proletariat. The bourgeoisies had a powerful influence in the negotiation, whereas the proletariats were frustrated with their inability to manage the labour forces, the wealth was concentrated in the hand of the capitalist which, to some extent, impoverished the labours. 6. An introduction of new technology continually deprived the labours: some of the labours lost the job, and some received low wage. 7. Marx believed that three objective laws would destroy capitalism from within. 7.1 the law of the falling rate of profit: profit must plummet and eventually disappear because the labours were replaced by the machines.

Norafidah Ismail, School of International Studies, COLGIS. 2011/2012

3 7.2 the law of disproportionality (problem under consumption): the

labours were paid less, and therefore there was a possibility that they would not be able to buy the products that they had produced. 7.3 the law of concentration (accumulation of wealth): capitalism created and reinforce inequality particularly in the distribution of income and wealth. Some of the bourgeoisie had abundant of wealth and owned the capital.

Marxs Contribution to Structuralism

There are four core ideas of Marx that the contemporary structuralists have applied in analyzing the global political economy: the definition of class; class conflict and the exploitation of worker; capitalist control over the state; and ideological manipulation.

The definition of class

the ownership or lack of ownership of capital (assets) will determine the class. Only a few of people in the society own and share the productive capital. And many people have been minimal or unable to own and share this capital.

Class Conflict and the Exploitation of Workers

The word conflict here does not refer to a state of warfare or hostility. The classes of the society, sometimes, do not realize the nature of conflict in the relationship among them.

Capitalist control over the state

The capitalist groups have enormous financial resources. They influence a particular political system by donating their money to probusiness candidates.

Norafidah Ismail, School of International Studies, COLGIS. 2011/2012

4 Some of the capitalist groups sponsor think-tanks which help the politicians and government officials in formulating the policies of the country. Countries need the business investments of the capitalist groups. It because, the investments generate tax revenue to the countries and create employment to the people. Considering these advantage, the countries have to frame policies that promote the interest of the capitalist groups (p.88-89)

Ideological manipulation
The workers believe in a legitimacy of capitalism. They deem capitalism as a proper and just system and brings benefits to them. Marx called this attitude as false consciousness. As a consequence of this perception, the workers will not seek other system in replacing capitalism. They will work hard in this system, and later provide the capitalist group with large income.

Leninism
1. Vladimir Ilyich Lenin (V.I Lenin) (1870-1924) was the founder of the Soviet Union. He claimed that Russia had experienced capitalism, and now prepared for socialist revolution. 2. Lenin introduced imperialism. He built his idea of imperialism on Marxs theories of class struggle, conflict and exploitation. 3. He wrote a book entitled Imperialism: the highest stage of capitalism (1917). He argued that through imperialism, advanced capitalist core states expanded their power and exploited backward colonial regions of the world (Balaam and Dillman 2011, p.93). The latter could be referred to the colonies in Central and Southern African regions that were established by the end of the 19th century. They supplied the capitalist states with low cost labours, natural resources and investment locations.
Norafidah Ismail, School of International Studies, COLGIS. 2011/2012

5 4. Lenin continued to argue that imperialism could prevent capitalism from imploding. The capitalist states could maintain their profit rates and let the colonies underdeveloped, deep in debt, and dependent on (them) for manufactured goods, jobs, and financial resources (Balaam and Dillman 2011, p.93). 5. Lenin also argued that imperialism might shift the poorer colonies into the new proletariat of the world or international capitalist systems (Balaam and Dillman 2011, p.93). 6. Lenin also explained the monopoly phase of capitalism or the transition from capitalism to a higher system (Balaam and Dillman 2011, p.93). He saw the monopoly phase of capitalism as another period of history that existed between capitalism and socialism. 7. Today, Lenins views on imperialism remain favourable in Cuba, China, Venezuela and Vietnam. Socialist and communist parties in some industrialised Countries Strongly Advocate The Views (Balaam And Dillman 2011, P.93).

The Recent Structuralist Theories

We will focus on two theories: Dependency Theory and Modern World System Theory

Dependency Theory
1. In modern history, three different periods of dependence is identified by Theotonio Dos Santos: (1) colonial dependence 18th and 19th centuries; (2) financial-industrial dependence 19th and 20th centuries; and (3) a structure of dependence today based on the postwar multinational corporations (Balaam and Dillman 2011, p.94). 2. The dependency theory stresses the relationship between the core and peripheral states. The theory gives more emphasis on the problems of the peripheral states and the solutions to the problems. The less developed countries of the South (the peripheral states) relied and
Norafidah Ismail, School of International Studies, COLGIS. 2011/2012

6 were vulnerable to the capitalist state of the North. This development was shaped by the structure of the global political economy. 3. Andre Gunder Frank argues that the developing countries were never underdeveloped (Balaam and Dillman 2011, p.95). The countries should not be considered as backward or traditional societies. Frank continues to stress that these countries were underdeveloped due to a colonization: the colonization of the Western industrialized countries led to a situation of underdeveloped in the developing countries. Frank and other researcher urged the developing countries or the peripheral states to leave the global political economy. The leaders of the socialist movements of the Third World country launched revolutionary tactics and ideological mass movements (Balaam and Dillman 2011, p.95). The objectives of the tactics and the movements was to change the fundamental dynamics of...the political and economic order of their society (and) the world capitalist system (Balaam and Dillman 2011, p.95). 4. Raul Prebisch sees the participation of the developing nations in the United Nations Committee on Trade and Development (UNCTAD). This institution is hoped to formulate policies that help redistribut[ing] power and income between the South and the North (Balaam and Dillman 2011, p.95). 5. Other dependency theorist support the new international economic order (NIEO) and encourage the reform of international economy.

Modern World System (MWS) Theory

1. The MWS theory originally put forward by Immanuel Wallerstein, and later formulated by several scholars. One of them was Christopher Chase Dunn. 2. There are some characteristic of the MWS. Firstly, a single division of labor whereby nations state mutually dependent on economic exchange. Secondly, the main reason for selling and buying goods is
Norafidah Ismail, School of International Studies, COLGIS. 2011/2012

7 to earn profit. Thirdly, the division of the world into three functional areas or socioeconomic units : this division is influenced by the role of the nations in the international economy. These nations exist in a particular region. 3. The world is divided into the core states, periphery states and semiperiphery (intermediary) states. The core states were capitalist states, and developed higher-skilled industries and modes of production. Previously, these states had involved in an agricultural sector. An example of these states is the northwest Europe in the sixteenth century (p.95). 4. The periphery states were in agricultural sector. They provided the core states with grains, bullion, wood, cotton, and sugar (p.96). These states are referred to the Eastern European states in the sixteenth century. 5. The semiperiphery states involved in labour-intensive industries. They were intermediary between the core and the periphery. They were the states in Mediterranean Europe in the sixteenth century. 6. The class relations and pattern of exploitation that the MWS has put forward, reflect Karl Marxs thought. The MWS believes that there is the interest of bourgeois in each state. There are also elements of core, periphery and semiperiphery in each state.

Norafidah Ismail, School of International Studies, COLGIS. 2011/2012