International Economic Organization: Core Theories & Analysis

Understanding International Economic Organization (IEO) Theories

The study of International Economic Organization (IEO) is a discipline that analyzes economic reality through the lens of international economic organizations. It's crucial to distinguish IEO (the field of study) from international economic organizations (ieo), which refers to the actual entities themselves.

With a clear definition of IEO, we can now examine the analytical methods and diverse schools of thought within this field.

Analytical Methods in IEO Studies

Two primary branches can be distinguished in IEO study methodology:

• Philosophical Reflection: This approach focuses on how international organizations should be. It was a predominantly philosophical method that prevailed until the end of World War I, largely due to the scarcity of such organizations at that time.
• Theoretical Research: This branch aims to study IEO from a theoretical standpoint, analyzing existing structures and behaviors.

Key Schools of Thought in IEO

Three prominent schools of thought exist regarding IEOs:

• The Realist Approach to IEOs

  Realism views states as the primary actors on the international stage, emphasizing their role as decision-making centers. According to this theory, international organizations primarily serve to enhance relations among states and peacefully harmonize conflicting interests.

• Idealist, Functionalist & Neo-functionalist Views

  This stream encompasses several perspectives:

  • Idealism: Idealists emphasize the role of international organizations in overcoming conflicts between states. From their viewpoint, international organizations are positioned above states and should possess the legitimacy to enforce their decisions.
  • Functionalism: Functionalists believe that international organizations emerge to fulfill specific functions.
  • Neo-functionalism: This theory builds upon functionalism, introducing the role of pressure groups in the establishment of international organizations and the transfer of powers to these entities.

• Marxist and Radical Perspectives on IEOs

  These positions offer critical viewpoints:

  • Marxism: For Marxists, only socialist international economic organizations were considered beneficial.
  • Radicalism: Radicals, however, view no international economic organization positively, believing from their perspective that such organizations offer no substantial contributions.

IEO: An Interdisciplinary Domain

In conclusion, the study of International Economic Organization (IEO) is an interdisciplinary field, integrating economic, political, and legal concepts.