Neoliberalism

Institutions let self-interested states cooperate even though no one can enforce the bargain.

Neoliberal institutionalism concedes most of neorealism's premises and disputes its conclusion. It accepts anarchy, accepts that states are self-interested and broadly rational, and then asks why cooperation happens as often as it does. The answer is that institutions change the situation in which states choose.

Robert Keohane's After Hegemony set out the mechanism. Regimes and organisations lower the cost of making agreements, supply information about what others are actually doing, make defection visible and therefore punishable, and turn a single encounter into a long series of them. Once the shadow of the future is long enough, keeping a bargain can be the self-interested course rather than a sacrifice.

This produced the central debate with neorealism, over absolute against relative gains. Neoliberals argue states will take a deal that leaves everyone better off; neorealists reply that a state must ask who gains more, because today's uneven benefit is tomorrow's power imbalance. The disagreement is not about whether institutions exist but about how much independent work they do.

Key thinkers

Robert Keohane, Joseph Nye, Robert Axelrod, Oran Young, Lisa Martin.

Core concepts

international regimes, absolute gains, transaction costs, the shadow of the future, reciprocity, collective action problems.

Neoliberalism applied to 45 historical events

Every event on Theoria is read through all six theories. These are the readings Neoliberalism gives, moment by moment. Open one to compare it against the other five, or explore them on the interactive map.

The other theories