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Neoclassical realism

Neoclassical realism is a theoretical approach in international relations that posits the distribution of material power in the international system as the primary driver of states' foreign policy ambitions, while emphasizing that domestic-level intervening variables—such as leaders' perceptions, state-society relations, and institutional extraction capacity—shape how systemic pressures are perceived and translated into policy outcomes.^[1]^[2] The term was coined by Gideon Rose in a 1998 review article analyzing works by scholars including Fareed Zakaria and William Wohlforth, which sought to address neorealism's limitations in explaining foreign policy variations by incorporating classical realism's focus on internal state dynamics without abandoning structural primacy.^[1]^[3] Unlike neorealism's "black box" treatment of states as unitary actors responding mechanistically to anarchy and power balances, neoclassical realism treats domestic factors as filters that can delay, amplify, or distort systemic imperatives, enabling explanations of phenomena like mismatched power and policy, such as great powers' under- or over-balancing.^[4]^[5] This framework has been applied to case studies of state behavior in crises, grand strategy formation, and patterns of conflict and cooperation, with key proponents including Randall Schweller, Steven Lobell, and Jeffrey Taliaferro advancing its analytical tools for mid-range theorizing.^[6]^[7] Critics, however, contend that its reliance on unit-level variables risks theoretical degeneration by ad hoc adjustments to neorealist anomalies, potentially undermining parsimony in favor of historical specificity, though proponents argue it better captures causal complexity in empirical foreign policy analysis.^[4]^[8]

Theoretical Origins

Emergence from Neorealist Limitations

Neorealism, particularly as formulated by Kenneth Waltz in Theory of International Politics (1979), emphasized the deterministic influence of systemic structure—anarchy and the distribution of material capabilities—on state behavior, predicting uniform responses such as balancing against rising threats regardless of internal differences.^[9] This approach, while parsimonious, encountered criticisms for its inability to explain significant variations in foreign policy outcomes among states facing similar systemic pressures, including delayed or absent balancing against aggressors like imperial Japan in the 1930s or Nazi Germany.^[4] Such empirical anomalies underscored neorealism's neglect of unit-level factors, prompting scholars in the late 1980s and early 1990s to seek refinements that retained structural primacy while incorporating domestic influences to better account for policy divergences.^[9] The end of the Cold War amplified these shortcomings, as neorealist predictions of inevitable multipolar balancing failed to materialize amid the Soviet Union's rapid dissolution in December 1991 and the emergence of unchallenged U.S. unipolarity.^[10] Instead of states forming coalitions to counter American predominance, as structural theory anticipated, foreign policies exhibited marked heterogeneity—ranging from bandwagoning with the hegemon to regional assertiveness—without corresponding shifts in capability distributions.^[11] These post-1991 developments exposed neorealism's predictive gaps, particularly its underemphasis on how internal state attributes mediated systemic imperatives, fueling intellectual efforts to integrate intervening variables without abandoning realist foundations.^[12] Early precursors to this synthesis appeared in works addressing overexpansion and resource mobilization. Jack Snyder's Myths of Empire (1991) analyzed how domestic coalitions and interest groups drove imperial overstretch in cases like Wilhelmine Germany and Japan, attributing policy distortions to internal pathologies rather than solely systemic incentives. Similarly, Fareed Zakaria's From Wealth to Power (1998) highlighted state extraction capacities as critical to translating economic wealth into international influence, using the U.S. rise from 1865 to 1908 to illustrate how domestic centralization enabled or constrained responses to systemic opportunities.^[13] These studies, emerging amid growing dissatisfaction with structural determinism, laid groundwork for neoclassical realism by demonstrating the necessity of unit-level analysis to resolve neorealist anomalies while preserving causal priority for international structure.^[3]

Gideon Rose's 1998 Formulation

In his 1998 article published in World Politics, Gideon Rose introduced the term "neoclassical realism" to describe an emerging strand of realist scholarship that integrates neorealist emphasis on systemic constraints with classical realism's attention to domestic and perceptual factors in explaining state foreign policy choices.^[1] Rose positioned this approach as a corrective to the limitations of structural neorealism, which he argued overemphasized international systemic distribution of material capabilities while underplaying how unit-level variables mediate responses to those pressures.^[14] By reviewing contemporary realist works on post-Cold War security dilemmas, Rose highlighted how neoclassical realism treats foreign policy as the dependent variable, distinct from neorealism's focus on systemic outcomes like war or alliance formation.^[15] Central to Rose's formulation is the claim that a state's relative material power—measured by factors such as military and economic capabilities—establishes the broad parameters of its foreign policy ambitions, but these are filtered through domestic political processes and leaders' perceptions of threats and opportunities.^[1] Unlike neorealism's assumption of unitary rational actors responding predictably to anarchy and power balances, neoclassical realism incorporates "intervening variables" such as state-society relations, elite decision-making, and cognitive biases, which explain divergences between expected and actual policy responses.^[14] For instance, Rose noted that systemic incentives might predict aggressive expansion for a rising power, yet domestic constraints like bureaucratic inertia or public opinion could delay or dilute such actions.^[15] Rose's article received initial acclaim among realists for restoring explanatory depth to the paradigm without abandoning its core materialist foundations, particularly in accounting for anomalies like the United States' inconsistent post-Cold War engagement, where systemic unipolarity did not yield uniform hegemony due to intervening domestic debates over interventionism.^[16] Critics of neorealism's parsimony, such as those grappling with cases of over- or under-expansion by great powers, viewed the framework as a pragmatic synthesis that enhanced testable hypotheses on foreign policy formation.^[17] This reception underscored neoclassical realism's role as a bridge between abstract structural theories and empirical policy analysis, though some questioned whether its inclusion of unit-level variables diluted realism's parsimony without fully resolving endogeneity issues between systemic and domestic causes.^[15]

Core Theoretical Framework

Systemic Incentives and Relative Material Capabilities

Neoclassical realism identifies the anarchic structure of the international system and the distribution of relative material capabilities as the foundational drivers of state incentives in foreign policy. Anarchy, defined by the absence of a supranational authority capable of enforcing rules or providing security, compels states to act as self-regarding units prioritizing survival through autonomous means.^[1] This structural condition establishes permissive parameters for state behavior, fostering a competitive environment where security dilemmas arise from mutual suspicions over intentions and capabilities.^[3] Relative material capabilities, encompassing tangible resources such as economic output, military expenditures, and personnel, determine a state's position within the power hierarchy and thus the potential scale of its foreign policy ambitions.^[1] For instance, a state's aggregate gross domestic product (GDP) and defense spending relative to rivals set boundaries on achievable objectives, with hegemonic powers exhibiting greater latitude for expansionist policies compared to weaker actors constrained to balancing or bandwagoning.^[18] These capabilities are quantified through composite indices that aggregate metrics like iron and steel production, energy consumption, and armed forces size, enabling systematic comparisons across states and over time. Empirical analysis in neoclassical realism relies on datasets such as the Correlates of War (COW) project, which tracks national capabilities from 1816 onward via the Composite Index of National Capability (CINC), incorporating demographic, industrial, and military indicators to assess power distributions. Shifts in these relative metrics—such as the U.S. surpassing Britain's capabilities in the late 19th century or China's military modernization since the 1990s—prompt corresponding strategic responses, underscoring systemic variables' role as first-order causal forces.^[6] This emphasis maintains causal primacy for international structure, positing that power politics operate undiluted by assumptions of cooperative mitigation, as evidenced by persistent security competitions despite institutional frameworks.^[3]

Role of Domestic Intervening Variables

In neoclassical realism, domestic intervening variables operate as unit-level filters that mediate the transmission of systemic pressures into foreign policy decisions, allowing for variation in state responses despite similar international constraints. These variables encompass factors such as elite perceptions of threats and opportunities, which shape how leaders interpret relative material capabilities; state extraction capacity, referring to the government's ability to mobilize domestic resources for external goals; and state-society relations, including the cohesion or fragmentation of domestic coalitions that can accelerate, delay, or distort policy implementation. Unlike structural realism's emphasis on systemic determinism, neoclassical realists argue these intervening mechanisms enable empirical explanation of policy divergences, grounded in observable domestic dynamics rather than abstract assumptions about human nature.^[19]^[20] A prominent example is Fareed Zakaria's state-centered approach, which posits that a state's foreign policy ambition is constrained by its "state capacity" to extract and deploy societal resources, as weak administrative structures or societal resistance limit effective power projection even amid favorable systemic conditions. Similarly, elite perceptions—such as leaders' cognitive assessments of power distributions—influence the prioritization of threats, introducing variability not captured by material metrics alone. Randall Schweller's concept of underbalancing illustrates how fragmented domestic coalitions, marked by elite discord or societal veto players, can impede timely mobilization against rising powers, prioritizing internal stability over external balancing. These variables are selected for their testability through historical data on bureaucratic processes, interest group lobbying, and fiscal extraction rates, ensuring causal claims rest on verifiable evidence rather than ideational speculation.^[21] Leader attributes, including personal ideology and decision-making styles, further intervene by affecting how systemic incentives are framed for domestic audiences, though neoclassical realism subordinates these to systemic primacy to avoid unit-level reductionism. Empirical studies highlight bureaucratic inertia—such as inter-agency rivalries delaying policy execution—and interest group influence, where entrenched lobbies skew resource allocation toward parochial interests over national strategy. This framework's strength lies in its integration of domestic factors without negating structural causation, as intervening variables explain the "black box" of policy formation while privileging data-driven analysis over normative biases in source interpretations.^[19]^[22]

Foreign Policy Formation Process

In neoclassical realism, foreign policy formation follows a sequential causal model where systemic pressures first define the broad constraints and opportunities for state action, primarily through assessments of relative material capabilities and potential threats posed by the distribution of power in the international system. The foreign policy executive—typically comprising leaders and key elites—interprets these systemic incentives, setting the parameters for possible responses such as expansion, restraint, or balancing. This initial stage emphasizes that objective power structures must be perceived and prioritized by decision-makers, rather than mechanically dictating outcomes.^[3] Domestic intervening variables then mediate this systemic assessment, filtering it through unit-level factors like state extraction capacity, elite cohesion, societal mobilization, and institutional structures to generate concrete policy choices. For instance, strong domestic institutions may enable effective resource mobilization for assertive policies, while fragmented elites could lead to delayed or suboptimal responses. Perceptions of systemic realities, including misperceptions of threats or opportunities, operate as a critical link in this mediation, introducing variability that can be empirically verified through archival evidence of elite deliberations and intelligence assessments, thus challenging purely deterministic structural explanations.^[6]^[3] This model's predictive utility lies in accounting for policy anomalies, such as aggressive expansion during periods of relative systemic advantage, where domestic factors override expected restraint; for example, the fascist regimes of 1930s Germany, Japan, and Italy pursued overreaching conquests despite favorable power balances against weaker neighbors, enabled by revolutionary domestic upheavals that enhanced mobilization but distorted threat perceptions toward revisionism. Similarly, the United States' post-9/11 invasion of Iraq in 2003 exemplified heightened aggression amid overwhelming systemic primacy, driven by elite consensus and perceptual shifts rather than immediate threats. These cases illustrate how the interplay of accurate or flawed systemic assessments with domestic enablers or constraints produces outcomes divergent from neorealist expectations of uniform balancing.^[6]

Distinctions from Other Realist Variants

Comparison to Neorealism

Neoclassical realism maintains neorealism's emphasis on systemic pressures, particularly the anarchic structure and distribution of material capabilities, as the primary drivers of state behavior, but critiques neorealism for its insufficient attention to unit-level factors that mediate systemic incentives into actual foreign policy choices.^[23] While neorealism, as articulated by Kenneth Waltz in Theory of International Politics (1979), posits that international structure compels states toward convergent balancing or buck-passing behaviors regardless of internal differences, neoclassical realism argues this underdetermines outcomes by neglecting how domestic intervening variables—such as state-society relations, elite perceptions, and extraction capacity—filter structural signals.^[4] This augmentation allows neoclassical realism to retain structural primacy while addressing neorealism's empirical shortcomings in explaining policy divergence among similarly situated states.^[12] A key divergence appears in neorealism's expectation of uniform responses to power distributions, which falters in cases like the post-Cold War United States, where unipolar dominance from 1991 onward did not yield aggressive balancing or hegemony consolidation as structural theory might predict, but instead restraint influenced by domestic variables including strategic culture and leadership perceptions under presidents like George H.W. Bush and Bill Clinton.^[5] Neoclassical realists contend that neorealism's systemic determinism overlooks how intervening factors, such as incomplete information processing by leaders or domestic political constraints, generate variance in foreign policy execution, as evidenced by U.S. decisions to limit interventions despite overwhelming relative power.^[24] Similarly, the 1930s British and French appeasement of Nazi Germany challenges neorealism's balancing imperative under rising threat, as structural pressures alone fail to account for delayed mobilization; neoclassical realism incorporates domestic elements like public opinion aversion to rearmament and elite misperceptions of German resolve to explain the policy lag until 1939.^[25]^[26] By integrating these variables into a two-stage process—systemic inputs shaping perceived interests, followed by unit-level mediation into outputs—neoclassical realism positions itself as a more causally complete framework, critiquing neorealism's parsimony as a liability that sacrifices explanatory power for abstract generality, particularly in historical instances where states deviate from predicted equilibrium behaviors.^[27] Empirical tests, such as those applying neoclassical models to interwar failures, demonstrate superior fit over pure structural accounts by tracing causal chains from anarchy to policy without ad hoc adjustments.^[28] This approach does not reject neorealism's core insights but refines them to better align with observed state actions, prioritizing comprehensive causation over theoretical minimalism.^[29]

Comparison to Classical Realism

Neoclassical realism shares with classical realism a foundational skepticism toward liberal notions of perpetual peace and institutional progress, viewing international politics as inherently competitive and driven by power dynamics. Both paradigms prioritize state survival and relative gains in an anarchic system, rejecting moralistic or utopian approaches to foreign policy. However, classical realism, as articulated by Hans Morgenthau in Politics Among Nations (1948), grounds its analysis in timeless attributes of human nature, such as the innate "lust for power" that propels states toward conflict and dominance. This emphasis on psychological universals renders classical explanations more interpretive and normative, often appealing to prudence and ethical restraint without specifying measurable causal pathways.^[30] In contrast, neoclassical realism subordinates such human-centric universals to systemic pressures, treating relative material capabilities—such as military and economic power—as the primary drivers of foreign policy scope and ambition, with domestic variables serving as intervening filters rather than root causes.^[1] Pioneered in Gideon Rose's 1998 formulation, this approach rejects the untestable vagueness of classical realism's psychological postulates, favoring observable state attributes like leader perceptions, elite cohesion, and institutional structures that can be empirically assessed.^[3] For instance, while classical realism might attribute aggressive expansion to an enduring human drive, neoclassical realism posits that systemic incentives (e.g., distribution of power capabilities) interact with domestic contingencies (e.g., regime type or bureaucratic politics) to produce variable outcomes, enabling hypothesis testing against historical data.^[4] This hybrid methodology enhances neoclassical realism's explanatory rigor, as it delineates clear causal mechanisms—systemic distribution of power as the independent variable, mediated by unit-level factors—allowing for falsifiable predictions that classical realism's reliance on abstract human motivations often lacks. Empirical applications, such as analyses of post-Cold War state responses to power shifts, demonstrate how neoclassical realism accounts for deviations from pure power balancing through verifiable domestic data, whereas classical realism's normative appeals to statesmanlike wisdom resist systematic validation.^[6] By embedding domestic variables within structural constraints, neoclassical realism achieves greater precision in modeling foreign policy formation, bridging classical realism's insights on agency with a positivist framework conducive to scientific scrutiny.^[31]

Methodological and Epistemological Features

Positivist Orientation and Hypothesis Testing

Neoclassical realism adheres to a positivist epistemological framework, emphasizing the formulation and empirical testing of falsifiable hypotheses to explain variations in foreign policy outcomes. Unlike post-positivist approaches that prioritize interpretive relativism and question the possibility of objective causal knowledge, neoclassical realists maintain that systemic pressures and domestic variables can generate generalizable propositions amenable to scientific scrutiny, such as predictions about how relative material capabilities influence state responses to threats.^[32]^[33] This orientation aligns with "soft" positivism, fostering testability and causal inference through structured methodologies rather than dismissing hypothesis-driven research as inherently flawed.^[34] Central to this approach is the derivation of specific, testable hypotheses linking international structure to unit-level behavior, often operationalized with quantitative indicators like military expenditure as proxies for resource mobilization under systemic incentives. For instance, neoclassical realist models hypothesize that states with greater relative power will more efficiently align domestic extraction mechanisms—measured via shifts in defense budgets—to pursue ambitious foreign policies when facing peer competitors, allowing for statistical validation across cases.^[35]^[6] Applications frequently employ datasets on military spending to assess deviations from structural predictions, enabling rigorous evaluation of intervening variables' effects without resorting to ad hoc adjustments.^[36] To trace causal pathways, neoclassical realists utilize process-tracing techniques on archival evidence of foreign policy decision-making, distinguishing this from purely correlational methods by identifying sequential mechanisms that connect systemic stimuli to outcomes. This method supports hypothesis testing by probing elite perceptions and domestic filters in historical records, such as declassified documents revealing how threat perceptions shape policy implementation.^[3]^[37] By focusing on observable implications within bounded cases, it counters post-positivist emphasis on subjectivity, privileging evidence-based inference over narrative contestation.^[32] Recent methodological advancements, including remedies for endogeneity in variable specification, have refined neoclassical realism's positivist toolkit, as outlined in analyses addressing how unobserved confounders might bias estimates of domestic intervening effects. For example, a 2023 study proposes instrumental variable approaches and robustness checks to isolate systemic from unit-level influences, enhancing the paradigm's capacity for replicable hypothesis evaluation in diverse empirical contexts.^[38] These innovations underscore an ongoing commitment to empirical rigor, adapting positivist standards to complex foreign policy dynamics without conceding ground to interpretive alternatives.^[39]

Causal Mechanisms and Empirical Rigor

Neoclassical realism traces causation through a structured multi-level process, beginning with systemic imperatives like shifts in polarity or relative material capabilities that generate incentives for state survival, then filtering these through domestic intervening variables such as elite perceptions or extraction capacity to yield observable foreign policy outputs.^[5] This framework highlights an imperfect "transmission belt," where international constraints are not mechanically translated but mediated by unit-level factors that either amplify or distort systemic signals, ensuring analytical transparency by explicitly mapping variable interactions via process tracing and soft positivist methods.^[40]^[32] Intervening variables are constrained by scope conditions derived from realist premises of anarchy and self-help, limiting their application to contexts where they demonstrably impact the alignment between power distributions and policy responses, such as how domestic institutional rigidity might delay mobilization despite urgent polarity threats.^[19]^[6] This disciplined approach avoids theoretical eclecticism by subordinating domestic elements to structural primacy, fostering empirical rigor through testable hypotheses that integrate quantifiable systemic data—like shifts in composite power indices—with qualitative indicators of state responsiveness, such as regime-driven variations in resource mobilization speed.^[41]^[32] In contrast to paradigms like liberal institutionalism, which often prioritize institutional cooperation and normative convergence despite limited evidence of their causal primacy over raw power asymmetries, neoclassical realism demands verification of material dynamics as the core driver, sidelining explanations hinging on optimistic assumptions of mutual restraint absent enforceable hierarchies.^[1] This orientation yields greater analytical leverage by anchoring causation in observable distributions of capabilities rather than conjectural reductions in conflict propensity through shared rules, thereby enhancing the framework's resistance to post-hoc rationalizations.^[35]

Key Scholars and Intellectual Contributions

Foundational Figures

Gideon Rose introduced the term "neoclassical realism" in his 1998 article, framing it as a synthesis of neorealist systemic pressures with domestic variables to explain foreign policy outcomes more effectively than structural realism alone.^[1] He argued that relative material power primarily drives a state's foreign policy ambitions, but intervening unit-level factors—such as state structure, leader perceptions, and domestic politics—shape how systemic incentives are filtered into actual behavior, addressing gaps in neorealism's inability to account for policy variations post-Cold War.^[1] Fareed Zakaria contributed a state-centric approach in his 1998 book From Wealth to Power, emphasizing how a state's capacity to extract and mobilize domestic resources determines its translation of economic wealth into international power projection. Zakaria's analysis of late 19th-century U.S. foreign policy highlighted that systemic opportunities alone do not suffice; effective central state institutions must overcome domestic barriers like fragmented political interests to enact expansionist policies, providing an early empirical foundation for neoclassical realism's focus on extraction mechanisms. Randall Schweller advanced the theory through his work on underbalancing, particularly in Deadly Imbalances (1998) and later elaborated in "Unanswered Threats" (2004), explaining why states often fail to counter rising threats due to elite cohesion deficits, domestic fragmentation, and perceptual errors rather than systemic factors alone. Schweller's framework posits that incoherent states with divided ruling coalitions prioritize internal stability over external balancing, using historical cases like interwar Europe to illustrate how domestic intervening variables mediate power transitions. Steven E. Lobell, Norrin M. Ripsman, and Jeffrey W. Taliaferro systematized these early insights in their 2009 edited volume Neoclassical Realism, the State, and Foreign Policy, which delineated the theory's core by integrating systemic distribution of power as the primary driver with domestic variables as filters in a two-stage foreign policy process.^[42] The volume anchored neoclassical realism empirically in 1990s puzzles, such as divergent responses to the Soviet collapse, by stressing testable hypotheses on how state attributes intervene between capabilities and policy choices.^[42]

Extensions in Recent Scholarship

In the 2010s, scholars such as Norrin M. Ripsman and Jeffrey W. Taliaferro advanced neoclassical realism by refining its application to specific foreign policy domains, including alliance formation and military doctrinal changes. Their collaborative work emphasized how systemic pressures interact with state-level variables like extraction capacity and domestic coalitions to explain variations in alliance reliability and adaptation to threats, as seen in analyses of interwar European strategies and post-Cold War defense reforms.^[42] These extensions maintained structural primacy while specifying intervening variables—such as leader perceptions and institutional constraints—to enhance predictive scope without diluting causal realism.^[5] By 2016, Ripsman, Taliaferro, and Steven E. Lobell synthesized these developments into a comprehensive neoclassical realist framework, delineating four classes of unit-level variables (state structure, domestic politics, leader attributes, and strategic culture) to bridge systemic distribution of power with policy outputs.^[5] This methodological rigor addressed prior ad hoc critiques by prioritizing hypothesis testing and falsifiable mechanisms, enabling applications to phenomena like resource-dependent states' long-term military buildup, where extractive institutions mediate responses to anticipated threats.^[43] Such refinements demonstrated neoclassical realism's adaptability, countering claims of theoretical stagnation through empirical extensions to non-Western contexts. Recent scholarship has integrated neoclassical realism with Global South perspectives, arguing for incorporation of context-specific realist practices from regions like Latin America and Africa to enrich variable specification without compromising structural foundations.^[34] A 2024 analysis posits that pre-existing Southern realist traditions—emphasizing domestic contingencies in peripheral states—parallel neoclassical realism's intervening variables, urging mutual dialogue to explain alliance behaviors in multipolar settings involving rising economies.^[34] This synthesis highlights the theory's global applicability, as evidenced in 2023 reconstructions that transitive-ize domestic filters to model policy transmission belts more dynamically.^[44] Applications to rising powers, particularly China, illustrate these extensions: neoclassical realist accounts attribute Beijing's assertive foreign policy shifts post-2010 to systemic opportunities filtered through elite perceptions of relative gains and domestic legitimacy pressures, rather than ideological determinism alone.^[45] For instance, analyses of Sino-U.S. space competition and South China Sea maneuvers link military doctrinal evolution to state extraction capabilities amid perceived encirclement, yielding testable predictions on escalation thresholds.^[46] These cases underscore neoclassical realism's empirical resilience, adapting core tenets to contemporary power transitions while remedying earlier under-specification of perceptual variables through multi-level causal sequencing.^[44]

Applications to International Phenomena

Post-Cold War Foreign Policy Explanations

Neoclassical realism attributes post-Cold War foreign policy patterns to the interplay between systemic unipolarity—characterized by U.S. predominance following the Soviet Union's dissolution in 1991—and domestic intervening variables that imperfectly transmit these pressures into state action. Relative material power sets the broad parameters for policy ambition, but unit-level factors such as leaders' threat perceptions, state extraction capacity, and elite cohesion determine the timing, scope, and efficacy of responses. This framework explains why states often exhibited delayed or partial adaptations to the altered distribution of capabilities, rather than seamless alignment with structural incentives.^[1] In the United States, neoclassical realist analyses highlight selective engagement as a response to primacy, constrained by domestic limits on resource mobilization and public tolerance for overseas commitments. Despite commanding over 50% of global military spending by the mid-1990s and facing no peer competitor, U.S. leaders under Presidents George H.W. Bush and Bill Clinton prioritized preserving influence in Europe and East Asia while pursuing a "peace dividend" that reduced defense budgets by approximately 30% from 1990 levels, reflecting societal pressures for fiscal restraint and fragmented elite consensus. These unit-level barriers prevented fuller exploitation of systemic advantages, leading to underbalancing against latent threats rather than aggressive hegemony.^[20] European states' defense reforms illustrate similar systemic-domestic dynamics, with unipolarity and the U.S.-led Revolution in Military Affairs prompting uneven modernization efforts. Tom Dyson's analysis of the United Kingdom, France, and Germany from the 1990s onward shows convergence in expeditionary capabilities but divergences in adaptation speed: the UK's stronger state-society penetration enabled rapid procurement shifts, while Germany's antimilitaristic domestic norms delayed armored force restructuring until the early 2000s. These patterns underscore how cultural and institutional filters mediated responses to reduced territorial threats, resulting in persistent capability gaps vis-à-vis systemic demands.^[47] By emphasizing power's endurance through domestic prisms, neoclassical realism counters liberal interpretations of an "end of history" wherein ideological convergence would supplant security competition after 1991. Instead, it reveals how unit-level politics—such as extraction inefficiencies and perceptual biases—sustained realist dynamics, as evidenced by rising regional rivalries in Europe and Asia despite democratic expansions, affirming that material capabilities remain the ultimate arbiter, variably channeled by internal structures.^[1]^[20]

Case Studies of State Behavior

A quantitative study of Italy's military behavior from 1946 to 2010, encompassing 9,283 dyadic interactions and 36 militarized interstate disputes, applies neoclassical realism to show that systemic incentives from relative power—measured via the Composite Index of National Capability—were significantly moderated by domestic filters.^[36] High relative power (one standard deviation above the mean of 0.1866) raised the probability of Italian-initiated disputes from an unconditional 0.0039 to 0.0073 (Z=2.15, p<0.05), but this effect was amplified or constrained by variables like low regime vulnerability (increasing probability to 0.0065, Z=2.38, p<0.05) and high elite consensus (to 0.0067, Z=2.82, p<0.01).^[36] Multivariate models confirmed that relative power boosted dispute likelihood by 154% under favorable domestic conditions, yet Italy's persistent elite instability (mean 0.8985) and low extraction capacity generally promoted an accommodationist posture, prioritizing alliance dependence over assertive balancing.^[36] In examining U.S. foreign policy expansion from 1989 to 2003, Tudor Onea's 2012 analysis tests three neoclassical realist strands against historical outcomes, finding that variants emphasizing international strategic interactions—rather than purely domestic anomalies—best account for overreach amid unipolar dominance.^[48] Leader perceptions shaped the timing and style of policies like NATO enlargement and interventions in the Balkans and Iraq, while state capacity enabled extraction of resources for sustained projection, but misperceptions of threats during security abundance led to suboptimal commitments exceeding structural imperatives.^[48] This framework highlights how intervening variables, such as elite cognitive biases, delayed or distorted responses to relative power shifts, validating neoclassical realism's utility in explaining deviation from pure systemic predictions without ad hoc adjustments.^[48] Neoclassical realism illuminates China's emergence in space rivalries by linking systemic U.S. hegemony—with its 858 satellites and $33 billion annual space-related spending—to Beijing's perceptual and domestic responses, fostering asymmetric countermeasures despite capability disparities.^[46] From early efforts in 1956–1989, constrained by technological lags, China perceived space as vital for offsetting U.S. advantages in surveillance and power projection, driving investments amplified by domestic nationalism and Communist Party legitimacy needs post-"Century of Humiliation."^[46] Recent milestones, including the 2007 anti-satellite test and goals for space power status by 2045, integrate relative gains—China's 250 satellites versus U.S. superiority—with elite perceptions of encirclement, enabling state-directed militarization via the Strategic Support Force while prioritizing regional denial over global parity.^[46] This approach underscores how domestic extraction and ideological filters convert systemic pressures into targeted domain competition, as seen in dual-use advancements challenging U.S. space situational awareness.^[46]

Criticisms and Ongoing Debates

Charges of Theoretical Ad Hoc Adjustments

Critics within and outside the realist tradition have accused neoclassical realism of degenerating into ad hoc theorizing by incorporating domestic variables post-hoc to explain empirical anomalies that confound neorealism's structural predictions, thereby sacrificing parsimony for explanatory convenience.^[4]^[20] Brian Rathbun, for instance, argues that this selective addition of unit-level factors—such as leader perceptions or state capacity—lacks a priori theoretical specification and resembles curve-fitting rather than falsifiable hypothesis testing, rendering the framework theoretically degenerative compared to neorealism's elegance.^[49] Similarly, Jeffrey Legro and Andrew Moravcsik contend that neoclassical realists proliferate these mediators unsystematically to rescue core assumptions, diluting the parsimonious focus on systemic distribution of capabilities.^[20] Neoclassical realists counter that domestic variables are not arbitrary add-ons but logically derived intervening mechanisms in a two-step causal process, where systemic imperatives filter through state-specific attributes to produce foreign policy outcomes, preserving neorealism's emphasis on anarchy and power as foundational drivers.^[50] Gideon Rose, who coined the term in 1998, framed this as a necessary refinement to bridge the gap between structural pressures and actual behavior, with variables like elite cohesion or extraction capacity specified ex ante as scope conditions rather than ex post excuses.^[3] This structure maintains falsifiability: if domestic factors override systemic ones systematically, the theory fails; empirical tests, such as divergent U.S. escalation in Vietnam despite relative power advantages, demonstrate improved fit over rigid structural models by tracing how perceptual filters distorted threat assessments.^[51] Proponents further highlight predictive successes in anomalies like the 2003 Iraq invasion, where neoclassical analyses attribute the decision not to domestic whims but to systemic unipolarity interacting with U.S. state capacity for power projection, outperforming neorealism's underdetermination of policy variance among similarly situated great powers.^[52] While acknowledging reduced parsimony relative to Waltzian neorealism, advocates argue this trade-off yields greater causal depth and empirical accuracy, as evidenced by consistent application across cases without retrofitting core variables.^[53]

Methodological and Predictive Challenges

One key methodological challenge in neoclassical realism involves operationalizing and measuring intervening variables such as elite perceptions of systemic pressures and state extraction capacity, which are often subjective and context-dependent, complicating causal inference.^[38] For instance, perceptions may be inferred from archival evidence or leader statements, but quantifying their independent impact risks conflating them with outcomes, leading to critiques of circular reasoning or endogeneity where domestic factors appear to both cause and result from foreign policy responses.^[38]^[12] Scholars have proposed remedies through mixed-methods approaches, combining qualitative process-tracing of historical cases with quantitative indicators of state capacity, such as budget allocations or institutional metrics, to enhance rigor and mitigate measurement errors.^[38]^[54] Predictive applications of neoclassical realism face limitations in high-uncertainty environments, where the interplay of systemic incentives and variable unit-level filters—such as leadership cognition or coalition politics—yields diverse outcomes that resist precise forecasting beyond broad patterns of adjustment.^[55] Unlike neorealism's ahistorical structural determinism, which struggles to anticipate deviations from power maximization due to its neglect of causal historical contingencies, neoclassical realism improves explanatory depth by integrating these elements, though at the cost of narrower predictive scope.^[12] Empirical tests, such as analyses of post-Cold War grand strategy shifts, demonstrate its utility in retrodicting delayed or distorted responses to relative power declines, but forward projections remain probabilistic, emphasizing scenario-based assessments over deterministic models.^[35] Extensions in Global International Relations have addressed methodological Eurocentrism by adapting neoclassical realism to non-Western contexts through data-prioritizing frameworks that incorporate local historical and institutional variables without normative concessions to equity agendas.^[34] A 2024 analysis argues that this approach leverages empirical variation in extraction and perception across Global South cases, such as hedging behaviors in multipolar Asia, to refine variable operationalization via region-specific proxies like patronage networks, thereby bolstering generalizability while upholding causal primacy of systemic pressures.^[34]^[56] These developments advocate for comparative case studies grounded in verifiable metrics over ideologically driven pluralism, enhancing predictive robustness in diverse systemic settings.^[34]

Ideological and Policy Implications

Neoclassical realism posits that foreign policy success hinges on aligning domestic capabilities with systemic imperatives, yielding policy prescriptions that favor strategic restraint among great powers to avoid overextension. In the context of post-Cold War unipolarity, this framework critiques hegemonic ambitions, such as expansive U.S. commitments, by highlighting how domestic variables like state extraction capacity and leader perceptions distort accurate responses to relative power distributions, often leading to resource dissipation without commensurate security gains.^[57] For example, analyses of U.S. grand strategy in the 1990s and 2000s underscore that perceptual biases among elites, combined with institutional rigidities, undermined efforts to capitalize on preponderance, advocating instead for offshore balancing to preserve primacy without indefinite forward deployments.^[58] Ideologically, neoclassical realism challenges liberal internationalist assumptions of inevitable progress through intervention and multilateralism, attributing failures in cases like the 2003 Iraq invasion and 2011 Libya operation to domestic political dynamics that amplify threat inflation beyond systemic realities, resulting in quagmires that erode national power.^[59] Such evidence counters critiques from interventionist advocates, who view the theory's emphasis on power competition as unduly pessimistic and conducive to appeasement, by demonstrating causal links between unheeded unit-level constraints and policy debacles, rather than inherent flaws in realist logic.^[60] While some scholars associate neoclassical realism with a conservative tilt that downplays ideational cooperation, its proponents argue this stems from empirical fidelity to observed state behaviors under anarchy, not normative bias, offering superior explanatory leverage over paradigms prone to confirmation of cooperative delusions amid power asymmetries.^[61]^[33]

References

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Neoclassical Realism and Theories of Foreign Policy | World Politics
Neoclassical realism argues that the scope and ambition of a country's foreign policy is driven first and foremost by the country's relative material power.
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Neoclassical Realism - Oxford Research Encyclopedias
Dec 22, 2017 · ... domestic variables. To overcome these challenges, neoclassical ... unit level variables to explain two key categories of events with ...
[3]
[PDF] Neoclassical Realism and Theories of Foreign Policy<product ...
Neoclassical realism is a theory of international politics explaining state interactions, describing likely outcomes, and bearing on foreign policies.
[4]
[PDF] A Rose by Any Other Name: Neoclassical Realism as the Logical ...
Neoclassical realism is a logical extension of structural realism, focusing on domestic politics and ideas to explain when states cannot adapt to systemic ...
[5]
Introduction: Neoclassical Realist Theory of International Politics
We argue that neoclassical realist theory can explain political phenomena ranging from short-term crisis decision-making, foreign policy behavior, and patterns ...Missing: definition | Show results with:definition
[6]
[PDF] 1 Introduction: Neoclassical realism, the state, and foreign policy
Second, we seek to differentiate neoclassical realism from classical realism and neorealism, as well as from other schools of international relations theories.
[7]
(PDF) Neo-classical Realism in International Relations
May 20, 2016 · Neo-classical realism is result of foreign policy studies through studying both structure of international system and domestic factors and their complex ...
[8]
https://academic.oup.com/isr/article/23/1/268/5782294
[9]
Neorealism as a Research Enterprise: Toward Elaborated Structural ...
Another problem facing structural realism is a high proportion of anomalies relative to solved empirical problems. From an authoritative survey of research.
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John J. Mearsheimer: an offensive realist between geopolitics and ...
Mearsheimer's analyses encounter empirical anomalies after the Cold War and are built on a not entirely flawless logic. Does this spell the end of offensive.
[11]
An Outdated Debate? Neorealism's Limitations and the Wisdom of ...
Jan 5, 2021 · Classical Realism proves superior to Neorealism by including the interplay between morality and power alongside that of agency and ...
[12]
Neorealism, neoclassical realism and the problem(s) of history
Jul 19, 2021 · Neorealists and neoclassical realists conventionally share assumptions on the ahistorical importance of anarchy, systemic conditions and the ...
[13]
1 - Introduction: Neoclassical realism, the state, and foreign policy
Jun 5, 2012 · 7 Neoclassical realism and resource extraction: State building for future war ... Zakaria, Fareed, From Wealth to Power: The Unusual Origins of ...
[14]
Neoclassical realism and theories of foreign policy - Project MUSE
Neoclassical realism argues that the scope and ambition of a country's foreign policy is driven first and foremost by the country's relative material power. Yet ...
[15]
[PDF] Neoclassical Realism and Theories of Foreign Policy - Olivia Lau
Thus neoclassical realism demands expertise in the history and culture of the units under consideration before one can make foreign policy analysis.
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Neoclassical Realism - Political Science - Oxford Bibliographies
Sep 28, 2016 · Introduction. Neoclassical realism is a theoretical approach that belongs to the realist tradition in international relations theory.
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Is There Anything 'New' in Neoclassical Realism?
Feb 13, 2013 · The works of these scholars have been termed “neoclassical realism” by Gideon Rose in his 1998 review article Neoclassical Realism and Theories ...<|separator|>
[18]
The Neoclassical Realist Research Paradigm and Its Independent ...
Neoclassical realists, like structural realists and some classical realists, use various measurements or indicators of a state's material capabilities. The ...
[19]
Neoclassical Realist Intervening Variables - Oxford Academic
It identifies four broad classes of intervening variables, which include: (1) leader images, (2) strategic culture, (3) domestic institutions, and (4) state- ...
[20]
https://oxfordre.com/politics/display/10.1093/acrefore/9780190228637.001.0001/acrefore-9780190228637-e-387
[21]
https://press.princeton.edu/books/paperback/9780691136462/unanswered-threats
[22]
Neoclassical realism and domestic interest groups - ResearchGate
Neoclassical realism employs unit-level variables to fill out the imperfect picture begun by Waltz to offer a logical extension of structural realism ...
[23]
Neoclassical Realism in the Theory of International Relations
However, the more convincing view is that neoclassical realism is an original development of neorealism, complementing Waltz's theory with an elementary level ...
[24]
Neoclassical Realist Theories and US Expansion in the Post-Cold War
This paper tests the explanatory power of the main strands of neoclassical realism in accounting for US foreign policy after the Cold War.
[25]
When states appease: British appeasement the 1930s - jstor
Sep 30, 2014 · Neoclassical realist models of foreign policy also only pay attention to domestic politics as intervening variables. See Gideon. Rose, ' ...
[26]
[PDF] When states appease: British appeasement in the 1930s.
We define appeasement as a strategy of diplomatic concessions aimed at buying off a potential aggressor. It is a purposive strategy designed to achieve.
[27]
Le' Notes #36: Neoclassical Realism – a short introduction
Jul 11, 2018 · Neoclassical Realism can be considered as a middle ground between Classical Realism, which focuses heavily on domestic politics, and Neorealism, ...<|separator|>
[28]
[PDF] Giving In is not always Giving Up: - A Theory of Rational Appeasement
Rational Choice in Neoclassical Realism and Appeasement. This naturally lends itself to understanding appeasement in international relations. Appeasement ...
[29]
An Evaluation of Neoclassical Realism Theory to Analyse the ...
Its innovation is, that it combines the internal state variables of Classical Realism with the systemic variables of Waltz's Neorealism. Although it has been ...<|separator|>
[30]
Security Under Anarchy: Defensive Realism Reconsidered
Neoclassical realism emphasizes the importance of power in international politics, which almost all realists now define in terms of material capabilities.
[31]
Between Theory and Practice: The Utility of International Relations ...
Feb 3, 2020 · Where classical realism and neorealism put primacy on the state or the international system, respectively, neoclassical realism holds that state ...
[32]
5 A Methodology of Neoclassical Realism - Oxford Academic
While post-positivists and critical theorists reject theory testing as a fruitful endeavor, neoclassical realists embrace key elements of positivism and, ...
[33]
[PDF] Forum Rethinking Neoclassical Realism at Theory's End
by the foreign policy executive when reacting to structural incentives. ... Systemic Constraints and Domestic Filters in Georgia's Foreign Policy.” East ...
[34]
Neoclassical Realism, Global International Relations, and the ...
Feb 20, 2024 · Neoclassical Realism (NCR) includes history in a Realist worldview. Global South scholars have similar Realist approaches, but are often ...
[35]
The Future of the Neoclassical Realist Research Agenda
Neoclassical realists seek to develop empirical theories that explain foreign policy behavior and international outcomes that generate testable hypotheses.<|separator|>
[36]
Neoclassical realism and Italy's military behaviour, 1946–2010
This article carries out a quantitative analysis of the military behaviour of Italy from 1946 to 2010 using neoclassical realism as the theoretical framework.Missing: expenditure | Show results with:expenditure
[37]
(PDF) Using process-tracing to drive Foreign Policy Analysis
Process tracing is a method which aims to enable the researcher to undertake rigorous causal analysis of an observed international political outcome.
[38]
https://academic.oup.com/cjip/article/16/3/289/7224293
[39]
Neoclassical Realism: Methodological Critiques and Remedies
Neoclassical Realism: Methodological Critiques and Remedies. July 2023; The Chinese Journal of International Politics 16(3):289-310. DOI:10.1093/cjip/poad009.
[40]
Neoclassical Realism, the State, and Foreign Policy
Neoclassical realism posits an imperfect “transmission belt” between systemic incentives and constraints, on the one hand, and the actual diplomatic, military, ...
[41]
(PDF) Can Neoclassical Realism Become a Genuine Theory of ...
Feb 27, 2018 · Neoclassical realism offers insights into why particular foreign policy choices are made, and under what systemic conditions unit-level factors ...
[42]
Neoclassical Realism, the State, and Foreign Policy
Edited by Steven E. Lobell, University of Utah, Norrin M. Ripsman, Concordia University, Montréal, Jeffrey W. Taliaferro, Tufts University, Massachusetts.
[43]
7 - Neoclassical realism and resource extraction: State building for ...
The new leadership spent the next twenty years methodically emulating the military, political, and technological practices of the European great powers.
[44]
Reconstructing neoclassical realism: a transitive approach
Jul 3, 2023 · Since its inception, neoclassical realism (NCR) has been tracking ... extensions or power-seeking strategies into policy, what the ...
[45]
Is China Becoming More Aggressive? A Neoclassical Realist Analysis
nisms behind recent developments in Chinese foreign and security policy ... of neoclassical realism for realist policy analysis. Throughout the article ...Missing: post- | Show results with:post-
[46]
[PDF] A Neoclassical Realist's Analysis Of Sino-U.S. Space Policy
May 2, 2019 · systemic variables impacting Sino-U.S. relations. This thesis will ... 19 Gideon Rose, “Neoclassical Realism and Thories of Foreign Policy,” World ...
[47]
Neoclassical Realism and Defence Reform in Post-Cold War Europe
Dyson explains the convergence and divergence between British, French and German defence reforms in the post-Cold War era.
[48]
Neoclassical Realist Theories and US Expansion in the Post-Cold War
Jun 8, 2012 · This paper tests the explanatory power of the main strands of neoclassical realism in accounting for US foreign policy after the Cold War.Missing: foreign policy explanations
[49]
https://www.degruyterbrill.com/document/doi/10.1515/9780804795081-005/html
[50]
A Rose By Any Other Name: Neoclassical Realism as the Logical ...
Aug 6, 2025 · ... Neoclassical Realism, as it has yet failed to incorporate these Global South ideas. I argue that acknowledging that these theories can ...
[51]
Navigating great power competition: a neoclassical realist view of ...
Feb 16, 2023 · A neoclassical realist lens better contextualizes Vietnam's persistent hedging, by combining analysis of system-level variables such as great ...
[52]
The Descent into Chaos: A Theoretical Analysis of the Iraq War
Aug 4, 2024 · The primary empirical prediction of Neoclassical Realism is thus that, over time, the relative amount of material power resources possessed ...
[53]
[PDF] Neoclassical realism in European politics - Asle Toje
Indeed, strategic culture, what Jack Snyder defined in the 1970s as 'a set of semi-permanent elite beliefs, attitudes, and be- haviour patterns socialized ...
[54]
Inhibited Balancing: A Neoclassical Realist Analysis of ... - DataSpace
... neoclassical realism. I use a mixed methods research approach, utilizing both quantitative and qualitative methods. I find Japan has been balancing against ...
[55]
Reconstructing neoclassical realism: a transitive approach
Jul 3, 2023 · This transitive approach rests on the view that the domestic sphere is not treated as immune to changes happening at the systemic level: a ...Missing: mediation | Show results with:mediation
[56]
Realism's Timeless Wisdom and its Relevance for the Global South
Jan 26, 2024 · ... neoclassical realism in particular has much to offer to scholars from the global South.[liv] Their article upholds that, despite its ...
[57]
[PDF] The Unipolar Illusion Revisited - Belfer Center
Why Balance of Power Realists Were Wrong About Unipolarity. The core proposition of Waltzian balance of power realists (and defensive real- ists) is that ...<|control11|><|separator|>
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[PDF] 10 Conclusion: The state of neoclassical realism
The foreign policy executive has privileged access ... Soviet Union cannot be explained by systemic constraints alone; party ... neoclassical realism and, in ...
[59]
[PDF] The Crisis of Liberal Interventionism and the Return of War
Feb 14, 2024 · Using a neoclassical‐realist framework, Olsen's contribution cuts through Western intervention politics, discourses, and decision‐makers' ...Missing: critique | Show results with:critique
[60]
On Systemic Paradigms and Domestic Politics - MIT Press Direct
Nov 1, 2017 · ... systemic variables take priority in any analysis of state behavior. ... neoclassical realism and offensive neoclassical realism. In Rose ...
[61]
Interests, ideas, and the study of state behaviour in neoclassical ...
Aug 15, 2019 · Some neoclassical realists have suggested more interpretative, reflexive, and post-positivist variants; see Gelot and Welz, 'Pragmatic ...