Neo-Liberalism, A perspective
on international politics that remodeled liberalism in the light of challenge
of realism particularly neorealism; it emphasizes the scope for cooperative behaviour
with the international system while not denying its anarchic character. It is
also known as neo-liberal institutionalism, It refers to a school of thought
which believes that states are, or at least should be concerned first and
foremost with absolute gains to other states. Neo-liberal international
relation thinkers often employ game theory to explain, why states do or do not
cooperate. Neo-Liberalism is a response to Neo-Realism; while not denying the anarchic
nature of international system; Neoliberals argues that even in anarchic system
of autonomous rational states, cooperation can emerge through the cultivation
of mutual trust and the building of norms, regimes and institutions.
The core idea of Neo-liberal Institutionalism is based
on- one, that it consider state as a key actor but at the same time it see
non-state actors also as significant actors in international relations. Two, Neo-Liberal
Institutionalism consider that states are in pursuance of absolute gains through
cooperation in the international politics.
Within Liberal Institutionalism, another variant called
as Transnationalism and Complex Interdependence emerged in 1970s, The main
proponents of this are Robert O Keohane and Joseph Nye in their joint work “ Power
and Interdependence; World Politics in Transition” 1977. These two gave the
idea of Complex Interdependence and Transnationalism in 1970s.
Keohane and Nye, in response to Neorealism, develop an
opposing theory they dub “Complex Interdependence”. In explaining this, Keohane
and Nye cover the three assumption in realist thought: First, states are coherent
units and are the dominant actors in international relations; second, force is
usable and effective instrument of policy; and finally, the assumption that
there is hierarchy in international politics.
According to Complex Interdependence theory, in the
world now there are plural actors and complete economic integration, the
interdependence of the world has made the world complex. There are other
actors other than states which directly
participate in the International Politics. The issues such as terrorism,
diseases, pandemics, climate changes, social economic changes/ issues, trade,
human trafficking has made world complex over the period of the economic and
social issues. Therefore economic and social issues have got equal importance
as the security of government.