Abstract
Economic systemic vulnerabilities can reduce or demote the greatest of powers to a middle power or even to being a weak or failed state. Since states are interconnected, they must obey established norms and accepted practices. Bad behavior, such as annexing countries and other actions that deviate from the liberal norm, will inevitably be greeted by negative reactions. The reputation of that country will suffer and, because of interconnectedness, so would its economy. The invisible hand of the world economy is the disciplining systemic force chastising revisionism. However, today’s deregulation can itself be considered a systemic vulnerability as states are forced into acting against their better judgement in an effort to remain competitive. The author suggests bolstering regulation to resolve economic vulnerability.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Works Cited
Acemoglu, D., and J. Robinson. 2012. Why Nations Fail: The Origins of Power, Prosperity and Poverty. New York: Crown Publishers.
Bentley, E., P. Minczeski, and J. Jovi. 2014. Which Oil Producers Are Breaking Even? WSJ. http://graphics.wsj.com/oil-producers-break-even-prices/
Cerny, P. 1995. Globalization and the Changing Logic of Collective Action. International Organization 49(4): 595–625.
Chen, Z. 2015. China’s Dangerous Debt: Why the Economy Could Be Headed for Trouble. Foreign Affairs 94(3): 13–18.
Clark, A., and J. Treanor. 2008. Greenspan—I Was Wrong About the Economy. Sort of. The Guardian. http://www.theguardian.com/business/2008/oct/24/economics-creditcrunch-federal-reserve-greenspan
Cooper, R. 1968. The Economics of Interdependence: Economic Policy in the Atlantic Community. New York: McGraw-Hill.
Evans, P. 1997. The Eclipse of the State? Reflections on Stateness in an Era of Globalization. World Politics 50(1): 62–87.
Friar, K. 2014. Russia Plans to Halt Gas Flow to the EU, Says Ukraine PM. MarketWatch. http://www.marketwatch.com/story/russia-plans-to-halt-gas-flow-to-eu-says-ukraine-pm-reuters-2014-08-27?dist=countdown
Giddens, J. 2003. Runaway World: How Globalization Is Reshaping Our Lives. New York: Routledge.
Gilpin, R. 1995. The Theory of Hegemonic War. The Journal of Interdisciplinary History 18(4): 591–613.
Gilpin, R. 2001. Global Political Economy. Princeton: Princeton University Press.
Guillaumont, P. 2012. An Economic Vulnerability Index: Its Design and Use for International Development Policy. In Measuring Vulnerability in Developing Countries, ed. Wim Naude, Amerlia U. Santos-Paulino, and Mark McGillivray. New York: Routledge.
Ip, G., and B. Davis. 2016. Intervention by Beijing Is Worsening China’s Market Woes. Wall Street Journal. http://www.wsj.com/articles/intervention-by-beijing-is-worsening-chinas-market-woes-1452449371
Kassab, H.S. 2015. International Policy Digest. http://www.internationalpolicydigest.org/2015/01/26/making-economic-sacrifices-today-stronger-tomorrow/. Accessed 9 Jan 2016.
Keohane, R. 2005. After Hegemony: Cooperation and Discord in the World Political Economy. Princeton: Princeton University Press.
Keohane, R., and J. Nye. 2012. Power and Interdependence. 4th ed. New York: Harper Collins.
Kindleberger, C. 1978. Manias, Panics and Crashes. New York: John Wiley and Sons.
Neu, R. 2013. U.S. ‘Soft Power’ Abroad Is Losing Its Punch. USA News. http://www.usnews.com/opinion/blogs/world-report/2013/01/31/us-soft-power-abroad-is-losing-its-punch
Nixey, J. 2015. Is Russia Still a Key World Power? BBC News. http://www.bbc.com/news/world-europe-34857908
Oatley, T. 2010. International Political Economy. New York: Pearson Education Inc.
Papandreau, G. 2010. Greece Is Not an Island. New York Times. http://www.nytimes.com/2010/03/10/opinion/10iht-edpapandreou.html?_r=0
Polanyi, K. 2001. The Great Transformation: The Political and Economic Origins of Our Time. Boston: Beacon Paperback.
Razin, A., and S. Rosefelde. 2011. Currency and Financial Crises of the 1990s and 2000s. Economic Studies 57(3): 499–530.
Rudra, N. 2008. Globalization and the Race to the Bottom in Developing Countries: Who Really Gets Hurt. Cambridge: Cambridge University Press.
Sharma, S. 2008. Achieving Economic Development in the Age of Globalization. New York: Routledge.
Stephens, M. 2014. Why is Saudi Arabia Using Oil as a Weapon? BBC News. December 3. http://www.bbc.com/news/world-middle-east-30289546
Strange, S. 1970. International Economics and International Relations: A Case of Mutual Neglect. International Affairs 46(2): 304–315.
———. 1996. The Retreat of the State: The Diffusion of Power in the World Economy. New York: Cambridge University Press.
———. 1997. Erosion of the State. Current History 97: 365–369.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Kassab, H.S. (2017). Economic Vulnerability. In: Prioritization Theory and Defensive Foreign Policy . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-48018-3_4
Download citation
DOI: https://doi.org/10.1007/978-3-319-48018-3_4
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-48017-6
Online ISBN: 978-3-319-48018-3
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)