Interdependence is a paradigm of we, not I. It’s about multiple people being mutually dependent on one another. Loyalties are at the same time enduring yet relative and malleable (Coate & Thiel, 2010). Here, she stresses the importance of nation-to-system linkages as opposed to nation-to-nation linkages. Alejandro López-Mejía, 1999, "Large Capital Flows: A Survey of the Causes, Consequences, and Public Responses," IMF Working Paper 99/17 (Washington: International Monetary Fund). Interdependence also highlights the importance of systems thinking, itself, for the study of international organization and global governance. Over the postwar decades, the share of services, including government services, in GDP increased enormously. There could, for example, be a large and rapidly growing trade in slightly differentiated models of automobiles, produced at similar costs, but there would not be much deprivation or loss if buyers had to substitute home-produced models for imported ones. 20 (Summer). This includes how money moves back and forth between the parties. The current account surpluses were generated in the 1970s by a few oil-rich Gulf sheikdoms, later by the Federal Republic of Germany and Japan, and more recently—since the reunification of Germany—mainly by Japan. Each strand of interdependence involves specific actors, whereas globalism refers to the aggregate pattern produced by all these strands, and by their organization on a global scale” (Keohane, 2002, p. 15). Paul Streeten is Professor Emeritus of Economics at Boston University and Founder and Chairman of the journal World Development. Interdependence suggests that partners recognize and value the importance of the emotional bond they share while maintaining a solid sense of self within the relationship dynamic. Today, the four functions carried out by an integrated international system aiming to achieve development are fragmented. The connection can be between people, regions, nations, or businesses. The associated turbulence created a world order bifurcated between state-centric and multicentric systems. These include, Keohane and Nye’s (1977) formulation of “complex interdependence” and James Rosenau’s (1984) notion of “cascading interdependence.”. . If a natural disaster or conflict impacts negatively on a host country for migrants, then the value of remittances sent to their home (source) countries may be reduced. Interaction among the parts is shaped by the constraints and parameters of system structure. Each of the six system types can take on different characteristics under each of the four different types of actors, further specifying five different patterns of choice—thus linking system and process. Before 1914, these four functions were exercised by the United Kingdom as the dominant power; between the wars, there was no international order, with the United Kingdom no longer being able, and the United States not yet willing, to accept these functions; for a quarter of a century after World War II, they were exercised and coordinated by the United States. It was therefore not the result of trade liberalization. Like Kaplan, Wright (1955) focused on the interdependent nature of world politics. To break with state-centric explanations of world politics, Keohane and Nye (1972) stressed the importance of “new kinds of bargaining coalitions and alliances being formed between transnational actors and between these actors and segments of governments and international organizations” (p. 373). Haas (1980, p. 101) offered a similar definition, an international regime as a set of “norms, procedures, and rules agreed to in order to regulate an issue-area.” The consensual definition used in the Krasner International Regimes volume ultimately dominated the discourse. In exploring the nature of international interdependence, Cardoso and Faletto (1979, p. xvi) were careful to stress the role of indigenous parties within dependent political economies. Think about the products you have. Sometimes international financial flows are taken as the measure of interdependence. But let goods be homespun whenever it is reasonably and conveniently possible; and, above all, let finance be primarily national." 62–63) suggested the second meaning comes close to capturing vulnerability interdependence. The objective then becomes reducing vulnerability. Economic interdependence is a system in which one party depends on other parties to obtain resources, such as food and minerals, for convenience or daily living. Those who control production combine factor inputs into the production process to create value in excess of the value of the individual factor inputs and other production costs, resulting in growth, expansion of the scale of production, and capital accumulation. Baldwin (1980), Rosecrance and Stein (1973), and others have repeated that the concept is not new. United Nations Conference on Trade and Development (UNCTAD), 1996, World Investment Report 1996 (Geneva). Transnational politics in this context, he suggested, refers to interactions between and among national governments (and international organizations) that originate in transnational society. Bull (1977) argued that, while the international system is anarchical, it is subject to principles of interdependence. A nuclear war resulting from international disintegration would be perhaps the ultimate demonstration of interdependence. Interdependency means that what happens in one place increasingly has impacts on other places. A consequence of this decision to import and export is that today we can produce more goods efficiently. Interdependence is a key structural feature of the international system. In 1900, 14 percent of the U.S. population was foreign born, compared with 8 percent today. International society or the society of states exists when a group of states perceive themselves bound by a common set of rules in their relations with one another and work together in common institutions. The study of the role of NGOs and other nonstate actors in world politics is almost as old as the contemporary study of international organization itself. Many of these are, or were until recently, not tradable. In general international systems, a system functions as a whole because of the interdependence of its parts. The catalyzing piece of this scholarship was the publication in 1977 of Power and Interdependence (Keohane & Nye, 1977). They provide decision-making environments for enhancing communication and information flows reducing uncertainty and arenas for agenda setting, coalition formation, bargaining, and influence peddling. Closely related to world-systems theory is the concept of dependency. He distinguished three forms of multinational politics: multibureaucratic decision making, integration, and transnational politics. Joseph Nye (1968, 1971a, 1971b) among others built on this conceptualization, though his work is most illustrative. A review of Nye’s reformulation of neo-functionalist theory aids in understanding the exceeding complex nature and role of interdependence in international integration (Dougherty & Pfaltzgraff, 2001, pp. Negative identities—the “other,” which may appear to be threatening—also serve as a basis for association into groups. You could not be signed in, please check and try again. These concepts include sensitivity, vulnerability, essentiality, and substitutability. The rejection of constraints, such as fixed exchange rates and limits on the discretion of monetary and fiscal policies, led to greater integration of national economies by encouraging full employment and creation of the welfare state; but, at the same time, it led to international disintegration. First, if we consider the ratio of international trade to national income, the rapid growth of the postwar decades can be viewed as a return to pre-1914 values after the interruptions of two world wars, the Great Depression, and high levels of protection. Taking note of Strange’s observations and challenges, a closer examination of two of the leading theoretical frameworks for understanding interdependence and international organization is instructive. In many ways, the story of interdependence theorizing is the story of those attempting to escape the narrow blinders of political science international relations “great debates,” “schools of thought,” and “-isms” and create theories and frameworks for explaining dynamics of international organization and the role of international institutions in processes of global governance. Rosenau (1984, 1990) envisioned a world characterized by what he termed “cascading interdependence.” He saw a turbulent world in which multiple systems of action comprised of individuals and groups occupying various roles both within and across these systems of action coexisted. An analytical approach is needed that enables the analyst to envision not only what appears on the surface but, as Strange has challenged, what lurks below. What is equally clear, however, is that the concept is central for explaining the nature and dynamics of international organization, as well as international relations more broadly conceived. As reflected much earlier by Morse (1969) in regard to interdependence frameworks more generally, it ignores the vast majority of international relations that lie beyond the scope of interstate relations and international bargaining makes a similar criticism. This is explained partly by the fact that government savings play a greater role today than they did in the past and partly by floating exchange rates, which increase uncertainties and are a barrier to long-term commitments. Deepak Nayyar, 1995, "Globalisation: The Past in Our Present," Presidential Address to the Seventy-Eighth Annual Conference of the Indian Economic Association, Chandigarh, December 28-30. Rosenau’s postinternational politics appear to reflect the global polyarchy envisioned by Brown (1995). Regarding interdependence in international organizational theorizing, special focus is placed on Keohane and Nye’s (1977) formulation of “complex interdependence” and James Rosenau’s (1984) notion of “cascading interdependence.” The discussion concludes with some summary observations about potential future directions for international organizational research and scholarship—where do we go from here? But five important qualifications to the notion that today's globalization is unprecedented, large, and increasing should be pointed out (see Streeten, 1989; and Wade, 1996). Barriers to immigration are higher now than they were then, when passports were unnecessary and people could move freely from one country to another to visit or work. But the fact remains that this is surprising in view of the current preoccupation with the globalization of capital markets. Each actor is also interdependent with the other participants in the system. Based in interdependence logic, he argued his case for systems theory by positing six ideal-type models of international systems. If interdependence implies a two-way dependence, and if each partner is equally dependent on the other for success, then there is an equal commitment to the making the partnership successful. Economic interdependence is a system by which many companies are economically dependent upon each other. If you study biology, you’ll discover that there is a great deal of interdependence between plants and animals. Marx’s (1867) critique of the capitalism, for example, was based on fundamental interdependence concepts and systems logic. What is Interdependence? Caporaso (1978) and Duvall (1978) argued that further distinction needs to be made in regard to vulnerability interdependence—the fundamental distinction between “dependence” and “dependency.” The latter entailing a highly unequal asymmetrical relationship wherein the weaker party is basically subservient to the stronger party and the costs of breaking the relationship prohibitively high. The work of Immanuel Wallerstein provides a vantage point for exploring interdependence in world-systems theory. 16–18). The integrative process itself is conditioned by additional factors, such as perceived equity of distribution of benefits, perceived external cogency, and relatively low perceived costs. In distinguishing interdependence from globalization, Keohane (2002) posited that “Interdependence refers to a state of the world, whereas globalization describes a trend of increasing transnational flows and increasing thick networks of interdependence. While both parties to a relationship of dependency possess some degree of power, the bulk of the power lies in the hands on the dominant party. Interdependence, then, is measured both by the flow of goods between states—horizontal interdependence, and the equalization of factor prices among states—vertical interdependence” (p. 425). With interdependence as a core element, Keohane and Nye (1972, 1974), Kaiser (1971), Mansbach et al. This usage has become standard (e.g., Katzenstein, 1975; Holsti, 1978; Michalak, 1979a, 1979b; and Ikenberry, 2014). The multinational corporation has become an important agent of technological innovation and technology transfer. In other words, the satisfaction of each party’s needs and values is contingent to some degree on the behavior of others. They stressed five main features of interdependent relationships underpinning such arrangements. John Ruggie (1975) was one of the first international relations scholars to discuss the concept of international regime as an interdependent arrangement among states, consisting of mutual expectations about institutionalized rules, norms, and behaviors. The concept “dependency” refers to relationships involving highly asymmetrical vulnerability interdependence (Dos Santos, 1973; Sunkel, 1973; Cardoso, 1977; Cardoso & Faletto, 1979). Thereafter, a resurgence of scholarly interest in theorizing about international organizations as interorganizational relations occurred (e.g., Biermann, 2008; Dingwerth & Pattberg, 2009; Koops, 2013; Franke & Koch, 2013, 2015; Vetterlein & Moschella, 2013; Biermann & Koops, 2015; Jönsson, 2015; Lipson, 2015). Asymmetrical interdependence can perpetuate and exacerbate inequalities regarding the nature and dynamics of relationships of dependence and interdependence in systems of action. Haas (1989, 1992), Coleman (2001), Benner et al. But the present fragmentation provides us, for the first time, with the opportunity to coordinate these four functions and to build a world order based on equality rather than dominance and dependence. Africa in particular has been almost completely bypassed. Economic Interdependence is relying on another country or entity to provide products or services you can't produce yourself. While bringing attention to the role of transnational actors in world politics, Keohane and Nye (1972) focused heavily on how transnational relations affect interstate politics, for example, “by altering the choices open to statesmen and the costs that must be borne for adopting various courses of action” (pp. Today the principal constraints on national policies are created by the activities of multinational companies and banks. Interdependence in world politics refers to situations characterized by reciprocal effects among countries or among actors in different countries.”(Keohane& Nye, 1977: 8) Therefore, an interorganizational approach, as suggest by Jönsson (2015), Koops and Biermann (2015), Lipson (2015), and others, may well be key to making such a conceptually and theoretically dramatic break. Young (1982a), for example, views international regimes as complex social institutions. (2002), Witte et al. Historical conditions and relative positions, actual and perceived, among state actors conditioned such systemic change. Positive interdependence is an element of cooperative and collaborative learning where members of a group who share common goals perceive that working together is individually and collectively beneficial, and success depends on the participation of all the members.. As early as 1962, Emerson (1962) discussed the importance of vulnerability regarding an organizations liability to suffer costs even after it had changed its policies in order to deal with the condition. (1977) proposed “. The bulk of foreign investment has been the capital inflow into the United States and the outflow from Japan. that foreign policy in the twentieth century has become turned inward; peace and security is a function of domestic policies and not of international structures…. Each of these raises the question, ‘How to achieve change?’ which is surely no less important than the question, ‘How to keep order?’ ” (p. 496). To develop a comprehensive image of international relations, he focused on interdependence related to relative power relationships among major powers in the Westphalian interstate order. Rosenau (1984) suggests that “The more crises of authority cascade subgroupism across the global landscape, the more extensive is the disaggregation of wholes into parts that, in turn, either get aggregated or incorporated into new wholes. In this context, the struggle for power among states may cause change at the systemic level, which can serve as a stressor for conflict among them. Another important analytical thread in interdependence theorizing has been international integration. at global level, also with the influences of other aspects related to cultural and social environment. As the world has become more globalized—creating a seemingly endless but not unbroken web of world politics—individuals, groups, and polities have become increasingly linked together as never before on a worldwide scale. To Krasner (1983b), Keohane and Nye (1977, 1987), and most other scholars focusing on international regimes as an area of study, tend to take the former stance. Rectitude (moral, religious, ethical beliefs), respect, enlightenment, affect, and well-being loom large on center stage. Young (1992) expanded on this sensitivity theme and focused on the mutual impacts of parties’ actions on each other’s welfare. In specific reference to the role of interdependence, Mitrany focused on a process that he termed “ramification.” The creation of cooperative transnational linkages for dealing with technical issues could result in a learning process that changed attitudes about cooperation and spread to other technical issue areas. The Multifiber Arrangement and the European Union's Common Agricultural Policy are blatantly protectionist devices. 187–189). These complex relationships can be explored through both the liberal and realism lenses and can later explain the debate of power from complex interdependence. Also shunning the tendency of most international relations scholars to reify the concept of international regimes and treat such arrangements as empirical reality, Puchala and Hopkins (1983) have taken a more analytical approach. Transnational networks are the seen as the foundation of international regimes, and network activity contributes to or constrains international cooperation. As this process evolves, norms of cooperation may eventually replace norms of conflict. Dependence is seldom, if ever, absolute. Building on this, Deutsch (1954, 1966) linked his ideas about integration to interdependence associated with interlocking relationships, a division of labor, and covariance among parties in a system of action. In many respects, E. H. Carr (1939) initiated the interwar-time context. Integration was based in the perceived need and search for solutions to technical problems and issues. In such a global polyarchy, “National states, subnational groups and transnational interests and communities are vying for the support and loyalty of individuals and (in which) conflicts are prosecuted and resolved on the basis of ad hoc power plays and bargaining among shifting combinations of these groups” (Brown, 1995, p. 253). Rosenau’s primary theoretical concerns all revolved around aspects of interdependence: interdependence related to the relationships of wholes and parts, the relationship between domestic and international factors, and the interdependence of individuals and communities (Mansbach, 2000, p. 9). Perhaps the clothes you are wearing were made in India, your car came from Japan and you just video called a friend halfway around the world. The more dependent an organization is on outside resources, the less power it has in relation to other associated organizations in its environment (Thompson, 1967). These rules and institutions are based on basic goals of the society of states, including (a) preservation of the system and society of states; (b) maintaining the sovereignty of states; (c) preserving peace; and (d) general goals of social life (Bull, 1977, pp. To Rosenau, interdependence is characterized by how and the extent to which parts of the world order are connected with each other. . The latter increase was largely the result of dramatic reductions in transport costs, as well as of the decline in such trade barriers as tariffs and import quotas and of the opening of new markets such as China and Mexico. Fourth, it overemphasizes the static, as opposed to dynamic, aspects of world politics. That is, cascading interdependence can readily be viewed as continuous processes of systemic formation and reformation” (p. 281). This article will not attempt to deal systematically with these areas; the discussion touches on them only as necessary to explicate the nature, origins, underpinnings, and orientations of interdependence theorizing and analysis as related to international organization and cooperation. References: The position occupied by a given area is a function of the structural role played by that area in the global division of labor at any particular point in time. Thus, participants shape the structure and the structure impacts on the interaction of agents. Tetreault has suggested that only this second measure corresponds to what scholars like Cooper (1968) and Keohane and Nye (1977) mean when they talk of sensitivity interdependence. Angus Maddison, 1995, Monitoring the World Economy (Paris: Organization for Economic Cooperation and Development). The nature of dependence–interdependence in the capitalist world system was centered on a division of labor between those who owned and controlled finance capital and production processes and other parties to the relationship who provided other factors of production as well as markets. These include conceptions of justice, balance of power, international law, diplomacy, and great powers. What are some ways that interdependence can be seen? As such, “They exist primarily as participants’ understandings, expectations or convictions about legitimate, appropriate or moral behavior” (Puchala & Hopkins, 1983, p. 62). On the U.S. side of the Atlantic, Morgenthau (1948), in his classic Politics among Nations, also dealt with interdependence and system stability and change issues. There exists no fixed hierarchy among issues, and security has taken on a diversity of blurred meanings—for example, global security, human security, national security, and so on. Analogous to Mitrany’s idea of “ramification” is the neo-functionalist notion of spillover. Thus, cooperation is not merely a function of common interests, it serves as an instrumental goal of states caught up in interdependent relationships. Current account deficits and surpluses are now a much smaller proportion of countries' GDPs than they were between 1870 and 1913. of international interdependence have been provided by Sir Norman Angell (1914), Francis Delaisi (1925), and Ramsay Muir (1933). Other barriers have been raised against imports of steel, electronics, and footwear. So what is interdependence and why does it matter? 374–375). He equated this kind of dependence to Keohane and Nye’s definition of sensitivity interdependence. (1994), Smith et al. Writing in the first half of the 19th century, for example, Karl Marx endeavored to create a scientific theory of the nature and evolution of human social organization and world order. As Morse (1976) has succinctly clarified, a system functions as a whole because of the interdependence of its parts. Regimes are characterized by norms of appropriate procedures for decision making. Those who are interdependent are affected by and react in a sensitive manner to each other’s behavior; the higher the level of interdependence, the more pronounced these impacts and reactions will be” (Young, 1992, p. 188). Whereas Keohane and Nye tended to focus on how transnational politics constrain government action, Kaiser (1971) stressed the nature of governmental attempts to influence international organizations and transnational actors. Haas (1958, 1964, 2004), Lindberg (1963), Nye (1968), Schmitter (1970), and Lindberg and Scheingold (1970) would build further on this foundation, ultimately positing a theory of neo-functionalism. In the following two sections, systems thinking, embodied in studies of processes of international integration and transnational relations, is explored to further set the stage for a more focused analysis of interdependence in international organization studies. Strange (1983) proposes: “The bias of regime analysis can be corrected by attention to the determining basic structures of the international political economy, the structures of security, money, welfare, production, trade, and knowledge. The participants in any economic system must belong to a trading network to obtain the products they cannot produce efficiently for themselves. Military and national security issues do not dominate the agenda, and the distinction between domestic and foreign issues becomes blurred. These are difficult to measure. The two concepts are logically independent” (Milner, 2006, p. 15). If we were to take only the ratio of international trade to the production of goods, it would show a substantial increase compared with not only the interwar period but also the period before 1913. To illustrate the far-reaching nature of Wright’s conceptualization of interdependence, consider his use of the concept of field—social field. The article begins with an overview of differing approaches to and conceptualizations of interdependence and the associated definitions: What is interdependence and why does it matter? A related benefit is that global interdependence motivates international understanding, encouraging people to broaden their horizons and engage with other cultures. An important drawback of social exchange theory in this context is a dominant focus on the role of resource dependency in interorganizational relations. Interdependence is measured by the costs of severing the relationship (or the benefits of developing it). In times of overall system expansion, movement up-or-down across zones is restricted as the core can continue to expand at the expense of the other two zones. As opposed to functionalism, neo-functionalism placed greater emphasis on the role of self-interested political elites and nongovernmental and private-sector elites and interest groups who realize that their interests may be better served through supranational arrangements. (1976) envisioned world politics as being comprised of a diversity of types of actors: international governmental, international nongovernmental, nation-state, governmental noncentral (regional, provincial, municipal), and intrastate nongovernmental actors. At the heart of Wallerstein’s thesis is the nature of the relative exchange relationship between and among the three primary zones. In regard to the use of the concept to understand international organization, Baldwin (1980) cited Cooper’s The Economics of Interdependence in 1968 and the critical response to Cooper by Waltz (1970) as a turning point in international relations literature on interdependence as related to a focus predominantly on “sensitivity dependence” versus “vulnerability dependence.” He placed Cooper squarely in the sensitivity definition camp and Waltz equally clearly on the vulnerability side. Between 1870 and 1914, the world was integrated unwittingly. In their path-breaking book, Power and Interdependence, Keohane and Nye (1977, p. 11) argued that actors establish international regimes to mitigate negative effects of interdependence. Economics and politics, for example, are not distinct spheres of reality. 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