Viewed in this manner, constructivism is both idealistic and structural, which makes constructivist theory a richer and more vibrant account of the structure of international relations than offered by Neorealismwhich ignores idealism in favor of naked structureor by Marxism or World Systems Theory, which ignore structure in favor of ideas. It also makes constructivism a richer theory than liberalism or neoliberalism. .
What is meant by the social construction of identity, or that identities are constructed by shared ideas? The theory is that norms and ideals of state behavior are embedded in the system. The system is primarily composed of states (as in neorealism) but also includes other non-state actors (as in liberalism). These embedded ideals guide and direct the interaction of states. International relations are not readily visible to human senses, but according to constructivism these relations result from a distribution of ideas. Implicit in this delineation is the assumption that states have "human" traits. Indeed, scholars and state leaders often speak of the national "interests", "needs", etc. (Wendt 1999, 10).
While Walt identifies the unit of analysis for constructivist theory as the individual (Walt 1998, 38), Wendt (1999) identifies the main unit of analysis for constructivist theory in international relations as the state. But, what comprises a state? Individuals who are informed by the system comprise the state and inform the state of the state's responsibility and duty to the individuals. There is really not a conflict between Walt and Wendt on this matter, Walt correctly points out that individuals are the main element of constructivist analysis and Wendt uses the states as "individuals" in the international system.
Constructivist theory of this type makes three moves that delineate it as different from Waltzian structural theory (neorealism). One, the structure of the international system is a social phenomenon rather than a material phenomenon (Wendt 1999, 20).