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The Retreat of the State: The Diffusion of Power in the World Economy (Cambridge Studies in International Relations) ReviewThe late Susan Strange was a renowned academic and political thinker who took the study of International Relations in a new direction. Her book, The Retreat of the State, takes a theoretical framework developed earlier by Strange and applies it to wide variety of situations in International Relations; situations that are rarely considered by mainstream IR writers, despite their almost daily effects on our lives.Strange challenges the key assumption of IR and international political economics (`IPE') that it is the state that is the key player in IPE and puts forward a theory outlining how other players, from business to the Mafia, can effect IPE.
The first section of the book starts by outlining Stranges' theoretical assumptions, including that the State is not the key player in international political economics that it is sometimes made out to be. She also sets out the redefine what is traditionally thought of as power in IR relationships, arguing successfully that power should be thought of as more that simply political muscle, using a much broader definition. Power and politics is more than simply military strength.
The second half of the book uses six brief case studies, including the Mafia, Big Six accounting firms and Insurance, telecoms and cartels to test her theoretical assumptions. Using the theoretical base set up in the first half of the book, Strange looks at situations where there is, as she terms in, authority beyond that state. For example, in looking at organised crime, who often have sophisticated paramilitary organisations and governance structures, she suggests that the traditional way of looking at IPE (eg neo-liberal, realist and neo-realist) may be obsolete. The same with the Big Six accounting firms, whose power is derived from the States inability or refusal to create the rules for accounting and who have a disproportionate effect on the global economy. While Strange has not sought to explain in detail each of these cases, she has pointed out potential future research in these areas, using a theoretical framework that explains better than traditional IR theory.
Overall, this book represents an important step in the development of IPE theory and indeed in IR theory in general. By allowing for actors other than the state, Strange has opened up a whole new world of analysis and assisted in solving many of the issues that traditional IR theory has failed to explain.
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