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2Power and InterdependenceAnother of the distinctions that provide the theoretical focus for this book is thatbetween power and interdependence. This distinction is related to that betweensovereignty and globalization. The realist tradition assumes that power is the ultimatearbiter of outcomes in international relations. Both the internationalist andthe universalist traditions take interdependence as a basic assumption. Dependencerefers to a situation in which a state cannot effectively make and enforce policy onits own, but can do so only in cooperation with another country or countries.Interdependence is when these other countries, in turn, also find themselvesdependent on the first country. A key part of the concept of interdependence, then,is reciprocity.1 The internationalist response to interdependence is cooperationamong states. The universalist response is the replacement of states by centralizationof decision-making.One interpretation of the internationalist tradition would be that with multilateralcooperation in decision-making, cooperation would replace power as the focusof international politics. The debate between the pure cooperation position and thepure power position has often taken place using the language of absolute and relativegains.2 Absolute gains are gains that states make compared with what wouldhave been the case otherwise. For example, if a bilateral free trade agreementincreases gross economic output of the two countries that have signed it by 3 percentover what would have been the case without the agreement, and both countriesshare in that increase equally, then both countries would have absolute gainsof 3 percent in their GDPs. Relative gains are gains that a state makes in comparisonwith its rivals. For example, if two rival states increase their military force levels by3 percent each, neither will have made a relative gain, because their force levelswould have stayed the same relative to each other. If, however, one state’s force levelstays the same and that of its rival increases by one division, the first state’s relativeforce level would have declined by a division, even though its absolute force levelstayed the same.If one state makes a gain of 4 percent and the other a gain of 2 percent, bothstates would have gained in absolute terms, but in relative terms, one state wouldhave gained and the other would have lost. Whether a state in this situation
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