Liberalism and Neoliberal Institutionalism 83Whereas classical realism offers no satisfactory rationale for the decline of powers,
Gilpin finds the answer in economic power. Hegemons decline because of three pro
cesses: the increasingly marginal returns of controlling an empire, a state level phe
nomenon; the tendency for economic hegemons to consume more over time and
invest less, also a state level phenomenon; and the diffusion of technology, a system
level phenomenon through which new powers challenge the hegemon. As Gilpin
explains, “disequilibrium replaces equilibrium, and the world moves toward a new
round of hegemonic conflict.”^12
In short, t here is no single tradition of po liti cal realism; there are “realisms.” Although
each is predicated on a key group of assumptions, each attaches diff er ent importance
to the vari ous core propositions. Yet what unites proponents of realist theory— their
emphasis on the unitary state in an anarchic international system, and a threat of war
that can be managed but never done away with— distinguishes them clearly from both
the liberals and the radicals.
liberalism and neoliberal Institutionalism
Liberalism holds that human nature is basically good and that people can improve
their moral and material conditions, thus making societal pro gress— including lasting
peace— pos si ble. Bad or evil human be hav ior, such as injustice and war, is the product
of inadequate or corrupt social institutions and misunderstandings among leaders.
Thus, liberals believe that injustice, war, and aggression are not inevitable but can be
moderated or even eliminated through institutional reform or collective action. Accord
ing to liberal thinking, the expansion of human freedom is best achieved in democra
cies and through well regulated market capitalism.
the roots of liberalism
The origins of liberal theory are found in eighteenth century Enlightenment optimism,
nineteenth century po liti cal and economic liberalism, and twentieth century Wilso
nian idealism. The contribution of the Enlightenment to liberalism rests on the Greek
idea that individuals are rational human beings, able to understand the universally
applicable laws governing both nature and human society. Understanding such laws
means that people have the capacity to improve their condition by creating a just soci
ety. If a just society is not attained, then the fault rests with inadequate institutions,
the result of a corrupt environment.
The writings of the French phi los o pher Charles Louis de Secondat, Baron de La
Brède et de Montesquieu (1689–1755), reflect Enlightenment thinking. He argued that
human nature is not defective, but rather, prob lems arise as humanity enters civil society