State, market, and global political economy: genealogy of an (inter‐?) discipline

International Political Economy (IPE), as a diverse and fragmented field of inquiry, has often had trouble situating itself in the social sciences. This article argues that IPE belongs firmly in the broader tradition of political economy in the social sciences and begins by summarizing the emergence of IPE in its contemporary context, starting with the late 1960s and early 1970s debates among IR scholars on the nature and meaning of interdependence, of the importance of ‘high’ versus ‘low’ politics, and of ‘transnational’ versus ‘international’ relations. The article goes on to demonstrate that IPE has emerged in a far from coherent fashion, though this diversity and ecumenism is not to be deplored. The second section of the article argues that the core conceptual issue in IPE remains the nature of the state–market relationship. The way this relationship is viewed has a considerable impact on how the prospects for change in the structures—the normative and material underpinnings—of world order are to be understood. It argues that most IPE scholars, despite their protestations, still see the state and the market as separate and indeed antagonistic dynamics. The logic of the state and the market are distinct. Scholars need to take a final and decisive step in accepting that, in empirical and conceptual terms, the state and the market are part of the same, integrated system of governance: a state–market condominium that operates simultaneously through the competitive pressures of the market and the political processes that shape the boundaries and structures within which that competition (or lack thereof) takes place.