Final answer:
International political economy involves two dominant theories, realism and neoliberal institutionalism. Realism focuses on state security and power, while neoliberal institutionalism emphasizes the role of international institutions in promoting state cooperation and collective security.
Step-by-step explanation:
Theories of International Political Economy
When discussing theories of international political economy, two prominent theories come to the forefront: realism and neoliberal institutionalism. Realism posits that states are the central actors in the international system, seeking to ensure their own security and power, often through a balance of power. Alternatively, neoliberal institutionalists assert that international institutions play a significant role in promoting cooperation among states, leading to outcomes that may not have been possible in their absence.
Neoliberal Institutionalism and State Behavior
Neoliberal institutionalism maintains that the creation of international institutions like NATO contributes to collective security, altering the behavior of states. It argues that these institutions facilitate cooperation despite the anarchic nature of the international system. They allow states, particularly those with fewer resources, to form alliances that enhance their security, therefore changing both state behavior and international outcomes.
Realist Perspective
In contrast, realism maintains a state-centric view, where international institutions have less sway over the decisions of powerful states focused on maintaining security and influence. This theory suggests that alliances and power balances are key in maintaining world order, with or without the presence of formal institutions.