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I w h e n do security concerns lead states to restrict economic cooperation? Attention to this subject has turned recently from the security effects of resource dependence to those of relative gain. Since wealth is the main source of military capability and other means of influence, cooperation that creates and distributes wealth affects security as well as welfare. Rational states will thus weigh the security implications of cooperation alongside its benefits in making foreign economic policy. The recent debate has been over whether, and under what conditions, states will limit mutually beneficial exchange with rivals who are obtaining disproportionate gains.'Understanding the connection between security and economic cooperation is essential for anticipating the future of both. Pessimists on this issue, assuming that states are highly sensitive to unequal gains, predict a spiral of insecurity, sundered trade ties, and possibly war in the post-Cold War era. John 5. The definitive study is Michael Mastanduno, Economic Containment: CoCom and the Politics of East-West Trade (Ithaca, N.Y.: Cornell University Press, 1992).

Who reads Trading with the Enemy: Security and Relative Economic Gains?

Author

Peter Liberman

Publisher

MIT Press - Journals

Published

1996

Language

EN

Field

Social Sciences