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Thursday, October 25, 2012

Capital Politics

Frieden divides creditor nations into 2 categories: new lenders and mature creditors. Each varieties of countries share an interest in protecting the security of home outside their borders as well as the stability of international finance. New lenders, those countries which have just begun to export capital, have a stronger interest in securing export markets including a lesser interest in opening their own markets. Mature creditors, on a other hand, are more interested in liberalizing their unique markets, because they eat the returns of already accumulated assets (pp. 287-88).

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The second part from the analytical structure examines the role of domestic groups. Frieden does not fall to the trap of denying the significance of domestic politics during the realm of international relations. He notes how the capital of a country doesn\'t really belong towards nation itself, but to economic agents in the country. In addition, the international economic policies of a nation do not necessarily benefit all groups inside country.

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