Neorealism or structural realism is an international relations principle that presupposes international issues to be approached in a systematic manner. Under neorealism, country’s actions are based on their global front’s position and on the actions that are likely to be triggered. The principle of structural realism is like a microeconomic model, in which businesses set prices and quantity based on the market’s nature. On the other hand, neoliberalism is an international principle or a political movement that advocates for free trade, economic liberalization and open markets. Principles of neoliberalism can be linked to capitalism. Neoliberalism is rooted for deregulation and privatization of national resources. Neorealism and neoliberalism principles are similar in a number of ways. Both Neorealism and neoliberal institutionalism support the concept of free trade and unregulated markets in pursuit of economic prosperity. Neorealism and neoliberal institutionalism recognize the value of the rule of law and presuppose that countries should follow the laid down protocols when fulfilling their international obligations. Both principles share a common view that other countries shall not interfere in the internal affairs of sovereign states unless the contact of the sovereign state threatens the security of another established state. Both neorealism and neoliberalism support the concept of economic globalization.
International institutions are epiphenomenal because they do not operate on their own. Most international institutions represent the interests of powerful states. They yield to the influence of their financiers, which in this case are powerful countries. Neorealists claim that international institutions are instruments of colonialism. They do not serve the interests of the international community; instead, they serve the interests of those countries that finance them.
Formal international intuitions such as Breton Wood Institution and the United Nations establish limits, through which powerful states should act. For instance, the United Nations require actions of powerful countries such as the United States or Russia to be ratified and approved by its organs like the Security Council. However, powerful countries manipulate these institutions for their own advantage. For instance, the United States has violated many clauses in the United Nations charter. The United States invaded Iraq without full approval of the United Nation’s Security Council, but the UN did nothing to stop United States actions against Iraq. Powerful countries are the largest contributors of the United Nations kitty. Most formal international institutions get their funding from powerful states. This provision creates a loophole for manipulation by rich and powerful states. Britain has been accused by other countries for manipulating the international criminal court (ICC). This is because British government is the largest financier of the international criminal court. This scenario gives powerful states the leverage to manipulate and act through international institutions.
Power-based decision rule is a set of decisions that are arrived at because of the influence that one country has over the other. Power-based decisions are based on the authority that a state has over the other as opposite to laid down legal provisions. Law-based decisions are decisions that arrived by following the laid down legal statutes. A classical example of power-based decisions is the manner, in which the United States handles the Israel situation in the Middle East. The United States has ignored all the legal requirements in handling the issues relating to Israel. This was clearly exhibited when Israel brutally attacked Palestine bound aid flotilla. Even though, the United Nations mandated an external investigation into the saga, the United States openly disregarded the UN and called on Israel to conduct its own investigations. An example of law-based decision is the United States handling the Iran situation. The United States maintained that Iranian authorities must comply with nuclear inspectors as provided by the UN. Israel went on and did an investigation whose findings did not establish any wrong doing on its part. The international community blamed the United States for favoring Israel in pursuit for justice.
International Corporation often collapses because of non compliance of the parties involved. Non compliance is triggered by the fact that different countries have different aspirations that change with time. For instance, a corporation forged in commercial interests is bound to change as the economic conditions change. Different actors have different interests that require them to adjust corporation in order to achieve their goals. International institutions can improve the level of compliance by being non partisan and formulating policies that genuinely address the aspirations of all players.
Recent scholarships in international relations emphasize on the importance of domestic politics in understanding international issues due to a number of reasons. The first one is that domestic politics help one to understand the feeling and aspirations of the local people. Understanding domestic politics will help one understand the political terrain of a given country. Furthermore, domestic politics will help one craft efficient policies that will boost International Corporation. Ignoring domestic politics is a threat to International Corporation because it does not represent the aspirations of the local population. Aspirations of the local population are paramount to any international corporation. Local politics is a manifest that represents wishes and aspirations of the local population. Any international corporation must reflect the wishes and aspiration of the people as a whole and not just the elite or the political class. International corporations must be taken as a response to calls of the local people.