This document discusses the relationship between political and economic factors. It defines political economy as the grafting of politics and economics, and notes they are mutually dependent. It explores how governments can use political power to influence economic resources at domestic and international levels. It also outlines three major ideologies in political economy: liberalism, nationalism, and Marxism. The document examines different structures that comprise the global political economy, such as production, security, financial, and knowledge structures. It analyzes how political events like the OPEC oil crisis influenced economics. Multinational corporations and regional economic organizations are also discussed in relation to world political economy.

5. Economy Insight Limited resources vs. unlimited will focus to:

7. Domestic Focus on how government use political power to deal economic resources in countries. Depends on form of government that is practiced. Example: monarchy, autocracy, republic and democracy

8. International Focus on how government use political power to deal economic resources between countries. Depends on pact between countries at international level. Example: ASEAN,EU, AFTA, NAFTA

9. Conclusion PE is field which discusses how political factors can influence and produce results or economy policy or economic arrangement which influences political decisions.

10. IDEOLOGI POLITIK EKONOMI Three major ideology according Gilpin in his book ‘The Political Economy of international Relations':

11. Must occur separation between economy and government intervention. To reduce bureaucracy and give plenty of freedom to traders and dealer. In the opinion of Liberalist : logic will determine market and with freedom, healthy competition will incur. Liberal

12. Efficiency and economic development can produces better life standard. Humans will always want best benefit by giving priority to cost reduction and maximize income. Finally, humans want equality among products and cost so that the people are pleased with the market.

13. Almost alike with the concepts of mercantalism, protectionism and statism. All economic activities are supervised by government or country. Intends to fulfill national interest. Gives priority to national interest, country's defense system, national security and development. Nationalist

14. Economy must be contributed to nation building. Extreme Nationalist thought says, “ international economy is the stage to extend the country’s mastery and the field to seek out maximum wealth for national treasury”. Wealth > power > national security

15. Discussion is focused to questions relating to production that can be felt by all layers in community. According to Marx (1818 1883), although man originally are rational and can use logic with balance in wealth accumulation and wealth distribution, eventually rational and logic would force humans to reap more profit to ensure their own future. Marxism

16. Associated with interclass competition concept (class struggle) and finally change the world to socialism concept (national property ownership and equal distribution of property). Marx 's views was further developed by Lenin (1870 1924). New Theories such as ‘Modern World system’ came into existence; dual concept namely ‘core and periphery’ and also dependency theory concept.

17. WORLD ECONOMY POLITICAL STRUCTURE Divided into 4 structures:

18. How products are issued and traded. International trading are bound by various regulations (GATT, WTO) Also discusses on who are the manufacturer and who are the users Production structure

20. Discusses the cash flow (ways to get and ways to use) as a tool to get the resources in the world. Example: A country which takes up a loan from IMF is forced to follow and reshuffle their economy to suit IMF’s will. Financial structure

21. Emphasizes the importance of interest and use of knowledge. Nations that have the knowledge and technology will advance in comparison to those without either. Example: Japan, US, South Korea Knowledge & Technology Structure

22. Conclusion of Four Structures Altogether this perspective would be the elements to see tendency / level of cooperation framework of one country. Although they differ from one another , sometimes they are joined.

28. Regional Economy Politics There are regional organizations which plays important roles in development of world political economy. Among them are: European Union, NAPHTHA and ASEAN Even though it gives emphasis to regional cooperation, could not get away from the occurrence of political consideration in decision / economy policy

29. Thank you…