capitalist peace thesis
The capitalist peace thesis mirrors the democratic peace thesis, but explains liberal peace in terms of economics, not government. The capitalist peace thesis posits that developed capitalist economies do not go to war with other developed capitalist economies, for several reasons. War is bad for trade; trade is mutually beneficial, and countries at war with each other do not trade. Therefore, states that are driven by economic motives, like capitalist states, will not engage with their biggest trading partners, who are going to be other developed capitalist states.
Evidence for Capitalist Peace Thesis
Capitalism has reduced many of the favorable reasons for going to war, while increasing the incentive to negotiate peacefully. Capitalism ensures that the success gained by a war will be relative small compared to the cost of fighting, due to the importance of trade and the malleability of resources (Erik Gartzke, "The Capitalist Peace, American Journal of Political Science,Vol. 51, No. 1, January 2007). Developed countries have more economic ties, and less sociocultural ties, meaning their will be less irrational war, and more rational bargaining. Developed capitalist states also have generally similar interests, meaning that there will be less conflict of interest that could lead to war (Gartzke). Economically integrated states also have ways to punish or threaten each other that do not involve violence; threats of loss of trade can often be as effective, and less dangerous, than threats of warfare. Gatzke used the variables of market, development, and similar interests to empirically analyze the likelihood of war throughout the world, and found that there was a significant reduction of war due to capitalism. Stuart Bremer, in 1992, showed that dual development of states greatly reduced the probability of war ("Dangerous Dyads: Conditions Affecting the Likelihood of Interstate War, 1816–1965," Journal of Conflict Resolution 36). Patrick McDonald, in his 2010 book The Invisible Hand of Peace: Capitalism, the War Machine, and International Relations Theory, showed that a greater amount of public property lead to a greater likelihood of war, and that industrialized capitalism was the main cause of liberal peace. Capitalist peace provides another dimension to liberalism, giving it economic weight and another way to quantify liberal states.
Evidence for Capitalist Peace Thesis
Capitalism has reduced many of the favorable reasons for going to war, while increasing the incentive to negotiate peacefully. Capitalism ensures that the success gained by a war will be relative small compared to the cost of fighting, due to the importance of trade and the malleability of resources (Erik Gartzke, "The Capitalist Peace, American Journal of Political Science,Vol. 51, No. 1, January 2007). Developed countries have more economic ties, and less sociocultural ties, meaning their will be less irrational war, and more rational bargaining. Developed capitalist states also have generally similar interests, meaning that there will be less conflict of interest that could lead to war (Gartzke). Economically integrated states also have ways to punish or threaten each other that do not involve violence; threats of loss of trade can often be as effective, and less dangerous, than threats of warfare. Gatzke used the variables of market, development, and similar interests to empirically analyze the likelihood of war throughout the world, and found that there was a significant reduction of war due to capitalism. Stuart Bremer, in 1992, showed that dual development of states greatly reduced the probability of war ("Dangerous Dyads: Conditions Affecting the Likelihood of Interstate War, 1816–1965," Journal of Conflict Resolution 36). Patrick McDonald, in his 2010 book The Invisible Hand of Peace: Capitalism, the War Machine, and International Relations Theory, showed that a greater amount of public property lead to a greater likelihood of war, and that industrialized capitalism was the main cause of liberal peace. Capitalist peace provides another dimension to liberalism, giving it economic weight and another way to quantify liberal states.