Hegemony and International Political Economic Order: A Critical Evaluation of Hegemonic Stability Theory

Abstract

Hegemonic stability theory(HST), one of the most discussed theories in the field of International Political Economy, can be characterized as follows: first, it is an attempt to find causal relationships among three aspects of international economic system - balance of power, openness, and stability; second, inspired by U.S. -centered problematics during the period of American economic decline, it is heavily influenced by ideological bias; third, its nee-realist version is an ambitious project to explain international cooperation by realist logic in the very area where the resurrected liberalism has the strongest explanatory power - that is, international trade. Although its pioneering works were based on a few inductive evidences, later versions of HST have developed deductive theories. One version adopts the logic of public goods theory, and the other, neo-realist systemic logic. Yet both versions have been harshly criticized. In order to amend HST, I suggest that both the independent and the dependent variables be modified. First, the concept of hegemony should incorporate not only economic power but politico-military hegemony, ideological hegemony, and regime transforming capability as well. Second, its dependent variable should be rather openness than stability. And the degree and the characteristics of openness should be explained