Bacud, Emmanuel J.

Polit Sci 6 (10:30-11:30 MWF)

Prof. Milo Severino N. Distor, Faculty-in-charge
Report in Political Science: THE ECONOMY IN GLOBAL AGE

I.) POLITICAL ECONOMY AS A METHODOLOGY OF HISTORICAL-POLITICAL ANALYSIS

Economy, a socio-political reality is condition in which human beings coordinate their wants and desires
( motives ), given the decision-making mechanics, social customs and political system of the society. In relation
to this, Political economy simply deals with the relationship between economic conditions and the political
activities we performed in a particular society. According to Gilpin (1977), political economy is not only a
branch of statecraft but as a study in which moral (normative) judgments are made on particular issues; hence,
there is always politics in economics. Political economy combined a sense of the descriptive and the
prescriptive.
Applying the nature of 21st century political condition. Political economy is a study of social relations,
particularly the power relations, that mutually constitute the production, distribution and consumption of state
resources. As political thinkers, we can utilized political economy as a microscope to magnify the pillars of
economic systems in an structured manner and to extract its political aspects as far as power is concerned.

Table 1: Difference of Political Economy from Economics

Political Economy Economics
*more all-encompassing, not rigid in scope, relates *very rigid, formulation of universal laws through
political, social and economic dimension of human mathematical equation=> radical empiricism,
race Economics, itself (scarce resources and unlimited
*critical approach; socio-political inequalities, policy- needs and wants of man)- result of Industrial
making activities Revolution
20th century- Political economy has been revived; * the more quantifiable a discipline is, the more it is
recent rise of state concern for public welfare reliable=> textbook economics by Kuhn,
( Eatwell, Milgate and Newman, 1987 ) *Proponents: Alfred Marshall, William Jevons (19th
Political Economy as a social science. century)
*Unit of analysis: Decision of man ( given his *exercise of utilitarianism; industrial activities of
political and economic status) individual man
* Economics as pure science (though some that it is
still a social science)
*Unit of Analysis: Capital ( Resource-allocation)

Central Characteristics of Political Economy:

1.) Considering Social change and history- It means examining dynamic social forces responsible for
societal growth and change. Unlike Economics, Political economy reconsidered history as a foundation
of analysis in order to scrutinize the real flow of human struggles.
2.) Manifesting social totality- This means that political economy spans the range of problems that today
tend to be situated in the compartments of several academic discipline.
According to John Stewart Mills, Political economy is one means of understanding the social as whole. Political
economy is not just an approach but it is a guide to understand the relationships that prevail among numerous
approaches of social life.
3.) Moral Philosophy- Political economy is intertwined with social values and with the conceptions of
social practices. The goal is to clarify and make explicit the moral positions of economic and political
perspectives, particularly because moral viewpoints are often masked in these perspectives.
4.) Praxis- This means practical reasoning this accentuates what is more reliable explanation to believe
in. Praxis is important to both epistemological and substantive premise of political economy. Praxis
guides a theory of knowledge to view knowing as the ongoing product of theory and practice. Reality,
according to the notion of praxis, is what is practical, observable yet innate to human existence.
II.) CAPITALISM AND NEOLIBERALISM (pages 84-110, Heywood)
Recall: Political History ( Historical Materialism by Marx and Engels)

SIX SUCCESSIVE STAGES OF SOCIETY

STAGE 1: PRIMITIVE COMMUNISM * as seen in tribal societies exhibiting cooperation and
communism toward properties such as land, etc.
STAGE 2: SLAVE SOCIETY *it developed when tribes became centralized in terms
of city-states, aristocratic rule vividly observed
STAGE 3: FEUDALISM * When the nobles had full control of land (as a means
of production) then these were partially distributed to
the knights in return of military service
STAGE 4: CAPITALISM *The capitalists are the ruling class and they create,
employ or manipulate the labor of the working class
(rigid social stratification)
STAGE 5: SOCIALISM (Dictatorship of the * The working class gains consciousness then
Proletariat) overthrow the capitalist and take control over the
production
STAGE 6: COMMUNISM * Where a classless and stateless (without state as a
governing entity for reosurce allocation) has evolved.
No more stratification because all people has the right
to access the means of production and utilized them
for communal welfare.
*The 21st century political scenario (Globally)? GLOBAL CAPITALISM- (Heywood, 2011) wide-
ranged industrialization; hence increasing use
(strategy) of division of labor.
This phenomenon results to industrial capitalism
(export of capital from Europe to North America,
South America and Asia
*World as a MARKET ( aggregation of all economic
activities

Types of Capitalism:
1.) Enterprise Capitalism-
2.) Social Capitalism-
3.) State Cpaitalism-