Regime theory
Encyclopedia
Regime theory is a theory within international relations
derived from the liberal tradition
that argues that international institutions or regimes affect the behavior of states (or other international actors). It assumes that cooperation
is possible in the anarchic system of states, as regimes are by definition instances of international cooperation.
predicts that conflict should be the norm in international relations, regime theorists say that there is cooperation despite anarchy. Often they cite cooperation in trade, human rights and collective security among other issues. These instances of cooperation are regimes. The most commonly cited definition of regimes comes from Stephen Krasner. Krasner defines regimes as "institutions possessing norms, decision rules, and procedures which facilitate a convergence of expectations."(see Krasner 1983).
Not all approaches to regime theory, however are liberal or neoliberal; some realist
scholars like Joseph Grieco have developed hybrid theories which take a realist based approach to this fundamentally liberal theory. (Realists don't say cooperation never happens, just that it's not the norm; it's a difference of degree).
is defined by Stephen D. Krasner
as a set of explicit or implicit "principles, norms, rules, and decision making procedures around which actor expectations converge in a given issue-area.” This definition is intentionally broad, and covers human interaction ranging from formal organizations (i.e., OPEC
) to informal groups (i.e., major banks during the debt crisis). Note that a regime need not be composed of states.
Within IPE there are three main approaches to regime theory: the dominant, liberal-derived interest-based approach; the realist critique of interest-based approaches, and finally knowledge-based approaches that come from the cognitivist school of thought (Hasenclever, 1997). The first two are rationalist approaches while the third is sociological.
Although realism is arguably the dominant school of thought in the field of international relations
generally, within regime theory specifically, because regime theory is by definition a theory that explains international cooperation (i.e. it's a traditionally liberal concept) liberal approaches prevail within the literature.
Neoliberals believe that realists neglect the degree to which countries share interests and the iterative nature of state relations. Realists err by implicitly modeling the world using the classic single-play prisoner's dilemma
, in which the payoff structure makes defection a dominant strategy for both players. The difference between this model and reality is that states are not like prisoners, states must continually cooperate whereas prisoners will never see one another again. One's decisions today, then, have future consequences. Mutual cooperation is thus rational: the sum of relatively small cooperative payoffs over time can be greater than the gain from a single attempt to exploit your opponent followed by an endless series of mutual defections. (Robert Axelrod
, 1984) referred to single-shot exploitation as the behaviour whereby states avoided "Tit for Tat
."
In the iterated Prisoner's Dilemma, the actors' behavior is determined by the following assumptions:
1. States are rational, unitary, gain maximizing actors, living in anarchy and ridden by the security dilemma.
2. There are future consequences for present actions. The prisoner's dilemma is not a one-shot event. Thus;
3. It is in the interest of states to cooperate in the present because, in the future, other states will defect on them (Tit-for-Tat strategy). Thus;
4. The theory presupposes that states are concerned with absolute gains, that is, states do not consider the gains or losses of other states in their utility analysis. In contrast neorealists argue that states are concerned with relative gains. That is, states are concerned with the advantages they gain versus the advantages of other states in the anarchic system.
Probably the most famous neoliberal IR theorist Robert Keohane
argues that international regimes can increase probability of cooperation by:
A. Providing information about the behavior of others by monitoring the behavior of members and reporting on compliance.
B. Reducing transaction costs.
C. Generating the expectation of cooperation among members.
Other authors also claim that regimes can provide incentives to cooperate and deterrents to defect by altering the pay-off structure of the regime (Oye 1986).
. Although sometimes regime theory functions as a counterweight to the hegemonic stability theory
(which is a concept borrowed from economics) realists also use it within regime theory itself to explain how regimes change. When used in this way, realists argue that the presence of a strong hegemon is what makes for a successful (i.e. "robust" and "resilient") regime.
In summary then, within regime theory realists and liberals differ over the nature of international cooperation and how much of a role international institutions play. Liberals believe regimes (cooperation) comes about through a convergence of state interests, and that international institutions help create that synthesis of interests, while realists believe that regimes simply reflect the distribution of power in the international system. (Powerful states create regimes to serve their security and economic interests. Regimes have no independent power over states, particularly great powers. As such, regimes are simply intervening variables between the real independent variable (power) and the observed outcome (cooperation)). For example, Susan Strange
argues that the post-Second World War international organizations such as the World Bank
, General Agreement on Tariffs and Trade
(GATT), and the International Monetary Fund
(IMF) are simply instruments of American grand strategy.
International relations
International relations is the study of relationships between countries, including the roles of states, inter-governmental organizations , international nongovernmental organizations , non-governmental organizations and multinational corporations...
derived from the liberal tradition
Liberal international relations theory
Unlike realism where the state is seen as a unitary actor, liberalism allows for plurality in state actors. Thus, preferences will vary from state to state, depending on factors such as culture, economic system or government type...
that argues that international institutions or regimes affect the behavior of states (or other international actors). It assumes that cooperation
Cooperation
Cooperation or co-operation is the process of working or acting together. In its simplest form it involves things working in harmony, side by side, while in its more complicated forms, it can involve something as complex as the inner workings of a human being or even the social patterns of a...
is possible in the anarchic system of states, as regimes are by definition instances of international cooperation.
Theoretical foundations
While realismRealism (international relations)
In the study of international relations, Realism or political realism prioritizes national interest and security over ideology, moral concerns and social reconstructions...
predicts that conflict should be the norm in international relations, regime theorists say that there is cooperation despite anarchy. Often they cite cooperation in trade, human rights and collective security among other issues. These instances of cooperation are regimes. The most commonly cited definition of regimes comes from Stephen Krasner. Krasner defines regimes as "institutions possessing norms, decision rules, and procedures which facilitate a convergence of expectations."(see Krasner 1983).
Not all approaches to regime theory, however are liberal or neoliberal; some realist
Realism (international relations)
In the study of international relations, Realism or political realism prioritizes national interest and security over ideology, moral concerns and social reconstructions...
scholars like Joseph Grieco have developed hybrid theories which take a realist based approach to this fundamentally liberal theory. (Realists don't say cooperation never happens, just that it's not the norm; it's a difference of degree).
Regime theory in international political economy (IPE)
As stated above, a regimeRegime
The word regime refers to a set of conditions, most often of a political nature.-Politics:...
is defined by Stephen D. Krasner
Stephen D. Krasner
Stephen Krasner is an international relations professor at Stanford University and is the former Director of Policy Planning at the United States Department of State, a position he held from 2005 until April 2007 while on leave from Stanford...
as a set of explicit or implicit "principles, norms, rules, and decision making procedures around which actor expectations converge in a given issue-area.” This definition is intentionally broad, and covers human interaction ranging from formal organizations (i.e., OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
) to informal groups (i.e., major banks during the debt crisis). Note that a regime need not be composed of states.
Within IPE there are three main approaches to regime theory: the dominant, liberal-derived interest-based approach; the realist critique of interest-based approaches, and finally knowledge-based approaches that come from the cognitivist school of thought (Hasenclever, 1997). The first two are rationalist approaches while the third is sociological.
Although realism is arguably the dominant school of thought in the field of international relations
International relations
International relations is the study of relationships between countries, including the roles of states, inter-governmental organizations , international nongovernmental organizations , non-governmental organizations and multinational corporations...
generally, within regime theory specifically, because regime theory is by definition a theory that explains international cooperation (i.e. it's a traditionally liberal concept) liberal approaches prevail within the literature.
Liberal approaches to regime theory in IPE
Liberal interest-based approaches to regime theory state that cooperation in anarchy is possible without a hegemon because there exists a "convergence of expectations." Regimes facilitate cooperation by establishing standards of behavior which signal to all other members that individual states are in fact cooperating. When all states expect the other participants to cooperate, the probability of sustaining cooperation increases dramatically.Neoliberals believe that realists neglect the degree to which countries share interests and the iterative nature of state relations. Realists err by implicitly modeling the world using the classic single-play prisoner's dilemma
Prisoner's dilemma
The prisoner’s dilemma is a canonical example of a game, analyzed in game theory that shows why two individuals might not cooperate, even if it appears that it is in their best interest to do so. It was originally framed by Merrill Flood and Melvin Dresher working at RAND in 1950. Albert W...
, in which the payoff structure makes defection a dominant strategy for both players. The difference between this model and reality is that states are not like prisoners, states must continually cooperate whereas prisoners will never see one another again. One's decisions today, then, have future consequences. Mutual cooperation is thus rational: the sum of relatively small cooperative payoffs over time can be greater than the gain from a single attempt to exploit your opponent followed by an endless series of mutual defections. (Robert Axelrod
Robert Axelrod
Robert M. Axelrod is an American political scientist. He is Professor of Political Science and Public Policy at the University of Michigan where he has been since 1974. He is best known for his interdisciplinary work on the evolution of cooperation, which has been cited in numerous articles...
, 1984) referred to single-shot exploitation as the behaviour whereby states avoided "Tit for Tat
Tit for tat
Tit for tat is an English saying meaning "equivalent retaliation". It is also a highly effective strategy in game theory for the iterated prisoner's dilemma. It was first introduced by Anatol Rapoport in Robert Axelrod's two tournaments, held around 1980. An agent using this strategy will initially...
."
In the iterated Prisoner's Dilemma, the actors' behavior is determined by the following assumptions:
1. States are rational, unitary, gain maximizing actors, living in anarchy and ridden by the security dilemma.
2. There are future consequences for present actions. The prisoner's dilemma is not a one-shot event. Thus;
3. It is in the interest of states to cooperate in the present because, in the future, other states will defect on them (Tit-for-Tat strategy). Thus;
4. The theory presupposes that states are concerned with absolute gains, that is, states do not consider the gains or losses of other states in their utility analysis. In contrast neorealists argue that states are concerned with relative gains. That is, states are concerned with the advantages they gain versus the advantages of other states in the anarchic system.
Probably the most famous neoliberal IR theorist Robert Keohane
Robert Keohane
Robert O. Keohane is an American academic, who, following the publication of his influential book After Hegemony , became widely associated with the theory of neoliberal institutionalism in international relations...
argues that international regimes can increase probability of cooperation by:
A. Providing information about the behavior of others by monitoring the behavior of members and reporting on compliance.
- Regimes clearly define what constitutes a defection and often clearly prescribe punishments for defection.
- This reduces the fear that the state is being exploited by other members of the regime and minimizes the chance for misunderstanding. Prescribing sanctions reduces the incentive to covertly defect.
B. Reducing transaction costs.
- By institutionalizing cooperation, regimes can reduce the cost of future agreements. By reducing the cost of reaching an agreement, regimes increase the likelihood of future cooperation. For example, each round of GATT resolved many procedural problems that did not have to be revisited in subsequent rounds, making cooperation easier and more likely.
C. Generating the expectation of cooperation among members.
- By creating iteration and the belief that interaction will continue for the foreseeable future, regimes increase the importance of reputation and allow for the employment of complex strategies.
Other authors also claim that regimes can provide incentives to cooperate and deterrents to defect by altering the pay-off structure of the regime (Oye 1986).
Realist approaches to regime theory in IPE
Realists, such as Joseph Grieco, propose power-based theories of regimes using hegemonic stability theoryHegemonic stability theory
Hegemonic Stability Theory is a theory of international relations. Rooted in research from the fields of political science, economics, and history, HST indicates that the international system is more likely to remain stable when a single nation-state is the dominant world power, or hegemon...
. Although sometimes regime theory functions as a counterweight to the hegemonic stability theory
Hegemonic stability theory
Hegemonic Stability Theory is a theory of international relations. Rooted in research from the fields of political science, economics, and history, HST indicates that the international system is more likely to remain stable when a single nation-state is the dominant world power, or hegemon...
(which is a concept borrowed from economics) realists also use it within regime theory itself to explain how regimes change. When used in this way, realists argue that the presence of a strong hegemon is what makes for a successful (i.e. "robust" and "resilient") regime.
In summary then, within regime theory realists and liberals differ over the nature of international cooperation and how much of a role international institutions play. Liberals believe regimes (cooperation) comes about through a convergence of state interests, and that international institutions help create that synthesis of interests, while realists believe that regimes simply reflect the distribution of power in the international system. (Powerful states create regimes to serve their security and economic interests. Regimes have no independent power over states, particularly great powers. As such, regimes are simply intervening variables between the real independent variable (power) and the observed outcome (cooperation)). For example, Susan Strange
Susan Strange
Susan Strange was a British academic who was influential in the field of International Political Economy. Her most important publications include Casino Capitalism, Mad Money, States and Markets and The Retreat of the State : The Diffusion of Power in the World Economy.For a quarter of a century,...
argues that the post-Second World War international organizations such as the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization . GATT was signed in 1947 and lasted until 1993, when it was replaced by the World...
(GATT), and the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF) are simply instruments of American grand strategy.
Cognitivist knowledge-based approaches to regime theory in IPE
In contrast to the rationalist approaches above, cognitivists critique the rationalist theories on the grounds that liberals and realists both use flawed assumptions such as that nation-states are always and forever rational actors; that interests remain static, that different interpretations of interests and power are not possible. The cognitivists also argue that even when the rationalist theories employ iterated game theories where future consequences affect present decisions, they ignore a major implication of such iteration: learning. Consequences from an iterated game look backwards to the past as well as forward to the future. So one’s decisions today are not the same as one’s decisions tomorrow, not only because the actors is taking the future into account but because one is taking the past into account as well. Finally cognitivists use a post-positivist methodology which does not believe that social institutions or actors can be separated out of their surrounding socio-political context for analytical purposes. The cognitivist approach then, is sociological or post-positivist instead of rationalist. In sum, for the cognitivists, it’s not only interests or power that matters but perceptions and environment as well.See also
- International regimeInternational regimeInternational regimes are not subnational actors or non-governmental organizations. They are international actors, and sometimes, when formally organized, many of them can be considered intergovernmental organizations.-Definition and Types:Stephen D...
- International relationsInternational relationsInternational relations is the study of relationships between countries, including the roles of states, inter-governmental organizations , international nongovernmental organizations , non-governmental organizations and multinational corporations...
- International relations theoryInternational relations theoryInternational relations theory is the study of international relations from a theoretical perspective; it attempts to provide a conceptual framework upon which international relations can be analyzed. Ole Holsti describes international relations theories act as a pair of coloured sunglasses,...
- International legal theory
- Neorealism (international relations)
- neoliberalism in international relationsNeoliberalism in international relationsIn the study of international relations, neoliberalism refers to a school of thought which believes that nation-states are, or at least should be, concerned first and foremost with absolute gains rather than relative gains to other nation-states...
- International political economyInternational political economyInternational political economy , also known as global political economy, is an academic discipline within the social sciences that analyzes international relations in combination with political economy. As an interdisciplinary field it draws on many distinct academic schools, most notably ...
- Hegemonic stability theoryHegemonic stability theoryHegemonic Stability Theory is a theory of international relations. Rooted in research from the fields of political science, economics, and history, HST indicates that the international system is more likely to remain stable when a single nation-state is the dominant world power, or hegemon...
Additional readings
- Snidal, Duncan. 1986. "The Game Theory of International Politics.” In Kenneth A. Oye (ed) Cooperation Under Anarchy. Princeton, NJ: Princeton University Press. p.25-57.
- Krasner, Stephen D. (ed). 1983. International Regimes. Ithaca, NY: Cornell University Press.
- Matthews, John C. 1996. “Current gains and Future Outcomes: When Cumulative Relative Gains Matter.” International Security 21,1(Summer),112-146.
- Liberman, Peter. 1996. “Trading With the Enemy: Security and Relative Economic Gains.” International Security 21,1(Summer),147-165.
- Mearsheimer, John. 1994/5. "The False Promise of International Institutions. International Security 19/3 (Winter): 5-49.
- Keohane, Robert O. and Lisa L. Martin. 1995. "The Promise of Institutionalist Theory." International Security 20/1(Summer):39-51.
- Breitmeier, Helmut, Oran R. Young, and Michael Zurn. 2007. Analyzing International Environmental Regimes. Cambridge, MA: The MIT Press.