chapter  6
25 Pages

Politico-Economic Regimes

A politico-economic regime is a cluster o f institutions that regulate social

behavior, build consensus, implement compromises, and manage conflict. A

regime or regulating system is political because it applies to territorially

bounded and collectively binding processes. And it is economic because it

deliberately affects economic decision-making and the outcome o f economic

behavior. Yet, politico-economic regimes do not only hold sway over

territorial states but also among them, in the form o f international regimes

(Krasner 1983; Keohane 1984). The “world market,” for example, did not

emerge spontaneously, but is essentially a social construct consisting o f a

variety o f regulating systems in the framework o f the world political economy

(see chapter 3).