Which strand of liberalism posits that economic interdependence reduces the likelihood of conflict between states?

Ganesh Prakash Bhola

“The strand of liberalism that posits that economic interdependence reduces the likelihood of conflict between states is commercial liberalism. Commercial liberalism emphasizes the pacifying effects of trade and economic ties between countries. Economic interdepence refers to a situation where states are mutually reliant on each other for economic resources, goods and services. This reliance creates a mutual interest in maintainig peaceful relations. Commercial liberals argue that when states are economically interconnected, the costs of conflict increase significantly. War disrupts trade, investment, and supply chains, leading to economic losses for all parties involved. This makes war a less attractive option. For example, if two countries heavily trade with each other, imposing tarrifs or engaging in warfare would damage both economies, making conflict less appealing. Furthermore, commercial liberalism suggest that economic interdependnece fosters cooperation in other areas. Regular interaction and shared economic interests can lead to the development of trust and mutual understanding, which can spill over into political and security relations. International institutions like the World Trade Organisation (WTO) are often cited as examples of how commercial liberalism promotes peace by facilitating trade and resolving economic disputes. By reducing trade barriers and establishing rules for international commerce, these institutions create a moe stable and predicatable economic environment, reducing the likelihood of conflict. The core idea is that trade creats mutual benefits and shared interests that outweigh the potential gains from military aggression. This is why commercial liberals often advocate for free trade agreements and the reduction of trade bariers between states.”

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