Waltz argues in his theory of structural realism that conduct of all states are same in history, they are driven by structural constraints, self help, balance of power and their hope to survive and prosper. The question put forward by Paul Schroeder in his article "Historical reality vs neo Realist theory" is that is neo realism adequate enough to explain history of International politics?
In my view, Waltz argument about self help can be considered in two ways, either a country is fully capable of defending its territories or either, by joining or forming an alliance can also be another kind of self help. Like for instance, America is also capable of defending its territories but on the other side, it keep on forming alliances to achieve its objectives or defend itself from non state actors (Al Qaeda in this particular example and its alliances with Pakistan, for instance) which can potentially attack from any possible way and method and against other states like Russia in Cold war by forming alliances with European states. So inter dependence of states can also be perceived as from of self help. However, this argument does not in any way can make a reader think that America cannot defend its territories without the help of others.
Waltz argument about supremacy of state that self help means state's use of its own actual power does not leave room for its another component that although states are sovereign but have different capabilities. This is the difference of capabilities between states which led to give rise to other forms of self help other than one described by Waltz, i.e., supremacy of power and self help means state's use of its own power against potential threats. A state less capable of defending itself (lesser in capabilities) needs to form alliances to counter the threats posed to it.
Regarding the question that does neo realism explain history of International politics, I think it does not in this particular context of self help and that is the thing described by Schroeder that states cannot afford that kind of self help. Smaller powers cannot afford to counter the threat of larger hostile states in their own.
Yes, smaller states can't counter the threats of bigger states, hence why states form alliances or balance against bigger states.
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