Liberal institutionalism

Liberal institutionalism (or institutional liberalism or neoliberalism) is a theory of international relations that holds that international cooperation between states is feasible and sustainable, and that such cooperation can reduce conflict and competition. Neoliberalism is a revised version of liberalism. Alongside neorealism, liberal institutionalism is one of the two most influential contemporary approaches to international relations. In contrast to neorealist scholarship (which is skeptical of prospects for sustainable cooperation), liberal institutionalism argues that cooperation is feasible and sustainable. Liberal institutionalists highlight the role of international institutions and regimes in facilitating cooperation between states. Robert Keohane's 1984 book After Hegemony used insights from the new institutional economics to argue that the international system could remain stable in the absence of a hegemon, thus rebutting hegemonic stability theory. Keohane showed that international cooperation could be sustained through repeated interactions, transparency, and monitoring. According to Keohane and other liberal institutionalists, institutions facilitate cooperation by: Reducing transaction costs Providing information Making commitments more credible Establishing focal points for coordination Facilitating the principle of reciprocity Extending the shadow of the future Enabling interlinkages of issues, which raises the cost of noncompliance Some call the school of thought rational functionalism instead of liberal institutionalism. Liberal institutionalism is also close to—but not synonymous with—regime theory and neoliberalism. Robert Keohane, a political scientist largely responsible for the development of liberal institutionalism, considers his ideas part of institutionalism or rational institutionalism, even though those schools disagree with him on certain points. Keohane dislikes using the adjectives "liberal" or "neoliberal" to describe his work because he also draws from realism, a school of thought that is often contrasted with liberalism.