The Balance between States and Markets That Can Ensure the Achievement of Sustainable Development
The analysis of the global markets in influencing sustainable level can be considered as the most comprehensive level of analysis. In this light, determining the factors that can create a balance between states and markets, as a way of ensuring the achievement of sustainable development, requires the assessment of the explanation regarding the global factors that create constraints and opportunities for all states and societies. Successful cooperation between states could be considered as one of the primary determinants of creating a balance between states and markets, with the fundamental element being the realization of sustainable development. However, one of the challenging elements that could be cited to indicate that successful cooperation is difficult is based on the existence of illicit market.
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According to David Balaam and Bradford Dillman (2015), one of the major reasons that hinder successful cooperation is the idea that different states guard their sovereignty with a lot of jealousy. In this regard, a considerable number of states do not welcome external interference to their affairs. Balaam and Dillman (2015) provide an example of the pariah states, whose leaders are not for the idea of getting rid of the illicit financial transactions that might be taking place within their borders. For this reason, they are likely to market themselves to the international community as territories that secure the secrecy of the financial transactions made in their financial systems. Through such illicit activities, the states do not only affect their economy negatively, but they are also promoting crime on the international level, based on the idea that an individual on entity can commit a financial crime and relocate to the country that condones such illicit activities.
Even though their solution is politically unpopular, Balaam and Dillman (2015) suggest that states should consider harmonizing their legal systems to curb such activities. Differences in the legal provisions in different states make it difficult for the international community to combat illicit activities across borders. The idea of sovereignty also makes it difficult for states to consider implementing such a recommendation. However, the harmonization of laws related to such illicit activities across borders could be one of the ways that can be used to enhance the success of cooperation between states and markets.
Given that such a realization might not be achievable, it is vital to use strategies that can attract international attention to the illicit practices being observed in a particular nation. For instance, Balaam and Dillman (2015) suggest that international organizations such as Transparency International could engage in name-and-shame campaigns to pressure the governments engaging in illicit and corrupt practices to work toward improving their international ranking. Through such initiatives, the governments can be pressured to employ strategies that could reduce the prevalence of the illegal practices, consequently work towards setting the stage for improved and sustainable development.
The other impediment to the achievement of sustainable development in the international economy relates to the global security structure. Some of the poor countries that are rich in natural resources are likely to experience the growth of rebels, who are primarily interested in acquiring and selling minerals illegally. Some of the elements that hinder such nations from developing mechanisms that could allow for governmental control of the natural resources, which might improve the revenue flow of the particular nations, include the lack of resources for purchasing weapons, paying security personnel to offer protection, and financing the activities taking place within their borders (Balaam & Dillman, 2015). To discourage participation in the illegal sale and purchase of the natural resources, international organizations should ban entities using the resources in their production from purchasing the resources from countries where people are killed to acquire the minerals. The bans might assist in legalizing the trade in the resources, consequently creating room for cooperative efforts needed for the achievement of sustainable development.
Other transnational activities that prevent the effective cooperation between nations include migrant smuggling and drug trafficking. The activities are illegal and lucrative, which is a provision that forces states to impose suitable prohibitions to curb the trade. In spite of the prohibitions imposed by different states, most governments tend to adopt supply-side policies presumably because of their obligation to balance the nation’s entrenched interests and to observe the interest of the public (Balaam & Dillman, 2015). The adaptation of such policies might not work towards combating the illegal transnational trade. Instead, they influence the traffickers to adopt different and sophisticated ways that allow them to continue engaging in the trade. Based on the idea that IPE scholars sometimes overlook illicit international transactions in their studies, which is one of the provisions that might be looked into to device ways through which to control the illicit trade. The recommendations derived from the studies could work towards the development of suitable policies necessary for combating the illicit transnational trade.
The IPE perspective that is most closely associated with the sorts of economic policies required for sustainable development
The IPE perspective that could be regarded as closely associated with economic policies required for sustainable development is presumably the economic liberalism perspective. The theoretical perspective of liberalism could be identified as the most suitable for supporting sustainable development from a global perspective in the sense that it reduces the value of the state, consequently looking upon economic as well as political relation as independent structures. Balaam and Dillman (2015) refer to arguments by liberal theorists to argue that they can assist in developing an understanding the conditions that could be used to determine the conditions that could compel multilateral cooperation to fight against crime. Liberals support concepts such as deregulation and open commercial exchanges in different markets, which are provisions that can create peace and cooperation among different states (Balaam & Dillman, 2015). A peaceful international market can support the prosperity of businesses and different states.
The underlying framework of the liberal IPE perspective is the development of a democratic political structure. In this light, the democratic principles, which are inclusive of the observation of human rights, property rights, as well as respect to the rule of law provide a basis upon which the theory thrives. In this case, the identified provisions could be considered as the foundation for promoting free trade and the capital markets. In this light, the liberal theory supports the notion that democratic and economic principles are vital for producing suitable outcomes for globalization, interdependence between states and markets, as well as the economic integration of different states that might be within a specific trading zone (Balaam & Dillman, 2015). The integration could be considered as a path to the achievement of global peace under a single economical as well as cultural world order.
An example that could be used to indicate that the liberal IPE perspective can support the peaceful coexistence of different states and corporations could be based on the existence of two or more global supply chains operating in the international market. When to global supply chains in a particular industry are operating in two or more countries, they are not likely to fight a war against each other since they are operating in the same international supply chain. For this reason, a liberalist might argue that they are likely to maintain a peaceful coexistence in the market because of their interdependence. Instead of fighting against each other, they are likely to increase the security of their operations, consequently leading to their prosperity in the international market.
The integrative component touts the positive provisions of freeing the international market, consequently setting the stage for globalization. Globalization exposes different states and business entities to technological developments, which they might use to empower professionals and companies to collaborate, consequently compete peacefully across borders (Balaam & Dillman, 2015). On the other hand, liberal theorists posit that the international market can significantly benefit from labor migration, which is an inherent component of globalization. For this reason, the IEP perspective could be regarded as the most suitable perspective that can enhance the actualization of sustainable development based on the idea that states can benefit from a boost in remittance flows to their independent economies because of the reduction in the illicit flow of labor migration.
In relation to the aspect of enhanced technological exchanges, neoliberals believe that technological transfers into and from different markets can assist in solving some of the global environmental problems. Environmental degradation can be considered as one of the elements that prevents the realization of sustainable development in the contemporary international economy. For this reason, technologies developed to take care of the associated impact of economic activities on the environment might assist businesses in a variety of countries. Through globalization, the technological developments can be shared across different nations, consequently ensuring the universal application of measures necessary for mitigating the negative effects of the degradation. The promotion of green technological revolution can assist in combating global warming, consequently improving the business environment in the international arena.
The Kyoto protocol is an example used by Balaam and Dillman (2015) to indicate that the cooperation between nation-states can support initiatives geared towards talking the issue of global warming. The Kyoto protocol focused on establishing rules that would be used to curb greenhouse emissions. The carbon dioxide emitted from production plants can be considered as a negative externality. It is possible for governments as well as other signatories of the protocol to auction their permits to the different organizations in their markets that require substantial energy to operate. The business entities could purchase or sell their permits to other entities in the international market, consequently enhancing cooperation between different markets in the international market (Balaam & Dillman, 2015). For liberals, the limiting of carbon dioxide emissions could be considered as one of the ways through which the international market can operate flexibly through setting prices on the credits. The identified examples could be used to indicate that the liberal IPE perspective is the most appropriate theoretical perspective that can support the development of economic policies required for sustainable development at the nation-state and international level.
Reference
Balaam, D. N., & Dillman, B. (2015). Introduction to International Political Economy. Routledge.
