Summer term Seminar: INTERNATIONAL POLITICAL ECONOMY

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1 Zentrum für Internationale Studien Studiengang Internationale Beziehungen School of International Studies Technische Universität Dresden, Dresden, Germany Summer term 2017 Seminar: INTERNATIONAL POLITICAL ECONOMY Module: BA-IB-P8 Participants: Bachelor students, Final Year (6.Fachsemester) Language of instruction: English Dates: Room: One introductory and six double sessions as advertised below. HSZ/204 (only introductory session in HSZ/201) Enrolment: Lecturers: Dr. George Robert Lambie: Dipl.-Pol. Stefan Robel: Seminar Description The term "International Political Economy" means very different things to different people and to attempt to give the discipline perspective and relevance this seminar will be developed through two separate, but interactive, sections: (A) theory and (B) practice. (A) - The theoretical section, which will focus on the role of theory building in IPE, is subdivided into two approaches: First, as a specific sub-discipline of International Relations (as it is understood mainly in the United States and, by and large, in Germany), and secondly, as an endeavour to bridge the academic divide between politics and economics (as sometimes favoured in Britain, Canada and the Netherlands, among other places).

2 (B) - This section will apply a version of the 'British/Canadian' approach to IPE to analyse the background to globalisation and its current context. Both these sections will be run concurrently in an attempt to demonstrate how theory and analysis can work together. Further information on each section (A) The theoretical section seeks to put into perspective the somewhat uneasy relationship between 'mainstream theories of IR' e.g. (Neo-)Realism, (Neo-) Institutionalism and some variants of Constructivist IR - and so-called 'Critical' approaches to International Political Economy (IPE). How do critiques of British, Canadian and Dutch approaches to IPE (Robert Cox, Stephen Gill, Susan Strange) towards mainstream IPE/IR relate to prominent inter-mainstream critiques of IPE and IR theories (Robert Keohane, Mearsheimer/Walt, Steve Smith)? Is there a fundamental difference between certain strands of International (or Global) Political Economy approaches, e.g. between dominant North-American vs. British approaches? How does the most recent debate in IR on the pros and cons of an emphasis on method relate to the analyses of IPE in general and Globalisation in particular? (B) Whereas the theoretical section of the seminar aims at giving a perspective on the theories and debates within the discipline of IPE and its relation to more mainstream approaches, the second section (B) seeks to use IPE (British/Canadian) in practice to explain the background, contexts and prospects for globalization. Globalisation is a much contested topic and invites many definitions and explanations; a diversity which has its roots in the separate and sometimes conflicting theoretical approaches of single disciplines. Economics, International Relations, History, Politics, Sociology, Business Studies etc have their distinct approaches to globalisation which singularly, and combined, make valuable contributions to the study of this process, but overall leave the impression that globalisation is beyond interpretation and is only open to a variety of observations. Within these disciplines there are separate perspectives, which again add to this diversity. International Political Economy (IPE) is another academic approach which seeks to explain globalisation. While IPE does not claim any interpretive superiority, its interdisciplinary analysis of a complex phenomenon like globalisation offers insights which other disciplines may not be equipped to provide. The IPE perspective adopted in this series of lectures seeks to understand globalisation as a totality ; an epochal shift within capitalism which transforms virtually everything we do and experience. From this view it has a historical background and in economic terms is principally associated with the deregulation of international finance, a technological revolution, especially in 2

3 microelectronics, and the transnationalisation of production processes. Such developments are complemented and facilitated by ideological and political changes that have taken place during the last two decades of the twentiethcentury; most notably the rise of neo-liberalism and the collapse of Soviet style communism. Section B of the seminar will begin with a brief historical perspective on the development of various epochs in capitalism, of which globalization is the latest. This will be followed by an analysis of the pre-globalisation era of embedded liberalism that prevailed under the Bretton Woods post-war consensus. This order was based on Keynesian style socio economic management that encouraged a mixed economy, state planning, national controls over finance, full employment, a welfare state and social democracy. It is the breakdown of this system, because of challenges from internal and external forces that allowed for the rise of globalization. After giving an interpretation of the rise of globalization, its most fundamental component parts and its impact on political and economic processes will be studied. This will include analyses of the functions of global finance, global production, transnational corporations and the impact of globalization on the state and democracy. Subsequently a study will be made of some of the contradictions and problems of globalization such as: poverty and inequality; developing countries and asymmetric development; cultural hegemony; the 2008 financial crisis and its aftermath. Finally, an opportunity will be given in the last session to select, examine and discuss briefly some of the contemporary issues of globalization from an IPE perspective using as a framework the changing environment and practice of US foreign policy. Relevance to Further Academic Study and Employment For those wishing to pursue further academic study Critical Theory and IPE provide not only additional analytical tools, but also different perspectives which may contribute to explanatory potential and an analytical dimension that can enhance existing debates. Regarding employment, although the world has becomes more globally integrated leading to a standardization of processes and procedures accounting standards, trading rules, financial procedures, contestation remains over many issues. While employers today still value the ability of their employees to apply best practice there is an increasing demand for the background knowledge that gives the option to choose strategic practice. As one employer in the financial sector stated in his presentation to a group of students, In today s financial environment it is essential to see beyond the headlines, mainstream views and theoretical norms. Critical theory and IPE are valuable in the financial sector in this respect but also have equal relevance in many 3

4 other professions: diplomacy; politics; senior administration; high level business decision making etc. Seminar Requirements a) Previous study in one or more of the following: economics; international relations; political economy; politics and any subject that is deemed by the tutors to be relevant. b) Regular and active attendance and participation. c) A tutorial presentation on one of the topics identified below in the eleven Tutorial/Discussions. This will usually be undertaken as a member of a group with each individual addressing a different sub topic of the main subject. See below for tutorial subjects. d) An academic essay of between words. The essay offers an opportunity to explore in more detail issues and topics introduced during the seminar allowing students to focus on their individual area of interest. e) Assessment 1) Tutorial Presentation 50% of total 2) Essay 50% of total. Seminar Structure The seminar will contain two sections which will be run concurrently: 1) International Political Economy: Theoretical Roots, Different strands, Critique 2) The History and Practice of Globalization from an IPE Perspective. The seminar content will be delivered through the following structure: 1. Seven double sessions of approximately 3 hours beginning on Thursday 13 April 2017and ending on Thursday 22 June There will be five Reading/Holiday Weeks to allow for tutorial preparation. 3. There will be Eleven Tutorial/Discussion Sessions for the entire seminar and Six Lectures in section 2 on Globalisation 4

5 Sessions 1 - Tuesday, , 18:10 20:00, Room HSZ :10-19:00 Introductions and Questions Introduction to IPE and Critical Theory 19:00-20:00 1 st Lecture - The evolution of capitalism from an IPE perspective. Accumulation systems that preceded globalization. Reading Week I Thursday, (no session) Sessions 2 and 3 - Thursday , 16:40-20:00, Room HSZ :40 18:00 Tutorial/Discussion 1 IR and IPE: Susan Strange's critique of IR theory and the need for an interdisciplinary approach to IPE 18:00-18:10 - Break 18:10 19:10 - Tutorial/Discussion 2 The Evolution of Capitalism from an IPE perspective Indicative topics: 1. Explain three of the main reasons why feudalism in England gave way to capitalism. What is distinctive about capitalism and how does it differ from other forms of production and social organisation? 2. To survive capitalism requires an expansive dynamic. How did colonialism conform to this trend and how was its mode of accumulation sustained? 3. How did colonialism s internal contradictions, along with the First World War and the Crash of 1929, put an end to the laissez-faire era and the demise of the Pax Britannica. 4. What impetus did the Second World War give to a renewal of capitalism and what factors allowed the US to take over from Britain as the new hegemon? 5. What were the main objectives of the Bretton Woods conference? 19:10 20:00 2 nd Lecture Embedded Liberalism: its Rise and the Challenges it faced. Reading Week II - Thursday (no session) 5

6 Sessions 4 and 5 - Thursday , 16:40-20:00, Room HSZ :40 17:40 Tutorial/Discussion 3 Embedded Liberalism : its Composition and Challenges. Indicative tutorial topics: 1. Why and how did the US support the reconstruction of Europe? 2. Describe the key elements of the post-war financial system? 3. What do you understand by the Fordist mode of production? 4. Why was a welfare state important to maintain Fordism? 5. Which forces rejected the embedded liberalism of the post-war period? 6. What forces led to the hegemonic ascendancy of globalization? 17:40 18:00 - Break 18:00 19:00 Tutorial/Discussion 4 Three traditional schools of thought as the roots of Modern IPE: Mercantilism, Liberalism, Marxism 19:00 20:00, 3 rd Lecture - The Demise of Embedded Liberalism and the Rise of Globalisation. Sessions 6 and 7 - Thursday , 16:40-20:00, Room HSZ :40 18:00 Tutorial/Discussion 5 Critical Theory and Neo-Gramscian Approaches to International Political Economy I 18:00 18:10 Break 18:10 19:10 Tutorial/Discussion 6 The Rise of Globalisation Indicative tutorial topics 1) What do you understand by the deregulation of finance and what are its implications? 2) What attempts were made in Britain and Europe to resist globalization? 3) What are the main differences between Keynesian style economics and neoliberalism? 4) How would you explain the shift to globalization in terms of ideology and hegemonic power struggles amongst classes and interest groups? 6

7 5) How does the documentary The Mayfair Set (3) demonstrate the establishment and functioning of globalisation? 6) What did Fukuyama imply with his End of History thesis? 19:10 20:00 4 th Lecture - Multinational Corporation to Transnational Corporation: the Globalisation of Production and the end of Development. Ascension Day (Christi Himmelfahrt) - Thursday (no sessions) Sessions 8 and 9 Thursday :40-20:00, Room HSZ :40 18:00 Tutorial/Discussion 7 Critical Theory and Neo-Gramscian Approaches to International Political Economy II 18:00 18:10 Break 18:10 19:10 Tutorial/Discussion 8 - From Multinational to Transnational Corporation Indicative tutorial topics: 1) Explain the function of multinational corporations and corporate business in the era of Embedded Liberalism. 2) How did the Eurodollar Market help facilitate the emergence of transnational finance and business? 3) How did the OPEC oil price rise of the 1970s help facilitate FDI increases to developing countries? 4) What were Structural Adjustment Programmes and why were they imposed? 5) What are global production chains and how do they function? 6) How does the operation of a transnational corporation differ from that of a multinational corporation? 7) What do you understand by Sklair and Robinson s notion of a transnational capitalist class? 19:10-20:00 5 th Lecture Globalisation: Democracy and the State Whitsun/Pentecost Holiday Week Thursday (no session) Sessions 10 and 11 Thursday , 16:40-20:00, Room HSZ 204 7

8 16:40 18:00 Tutorial/Discussion 9 The Old IPE vs. the New? Theory vs. Method? Inter-Mainstream Critiques of IR Theory and 'the new' IPE 18:00 18:10 - Break 18:10 19:00 Tutorial/Discussion 10 Globalisation: the implications for the State and Democracy Indicative tutorial topics: 1) What do you understand by Susan Strange s statement Whereas states ruled markets markets now rule states.? 2) What do you understand by the concept of the Transnational State? 3) The Transatlantic Trade and Investment Partnership (TTIP) has been seen by its opponents as a corporate colonisation of public space and serves to weaken the nation state. Discuss 4) How would you distinguish between democracy in the Western powers during the era of embedded liberalism and democracy during the era of globalization? 5) Reference is sometimes made to the shortcomings of democracy under globalization by the use of such terms as democratic deficit, democracy lite, democratic disenchantment. Is this skepticism justified? 6) What do you understand by the term democracy promotion? 7) Explain Robinson s understanding of polyarchy and how convincing do you find this argument? 19:00 20:00 6 th Lecture The Global Financial Crisis and its Aftermath Sessions 12 and 13 Thursday , 16:40-20:00, Room HSZ :40-18:40 Tutorial/Discussion 11 [combining issues raised in both sections] - US Foreign Policy. Hegemony from Embedded Liberalism to Globalisation. A discussion session in which presenters will select a role and defend a position concerning US foreign policy, reflecting specific interests and theoretical positions. This will take the form of a round table discussion with tutor participation. 18:40 19:00 - Break 19:00 20:00 - Tutorial/Discussion 12 The Global Financial Crisis and its implications 8

9 Indicative questions: 1) How would you interpret the main structural factors that led to the financial crisis that began in 2008? 2) What were the financial factors that precipitated the financial crisis of 2008? 3) What do you understand by quantitative easing and can it solve the problem of economic stagnation? 4) How has the role of major states changed since the financial crisis? 5) Recently in the US students have carried banners stating Banks got bailed out students got sold out. Should banks have a special privilege because they are too big to fail? 6) Is another financial crisis inevitable? 7) Can the new alliance between Russia and China and the BRICS cooperation create and alternative currency regime to the USD? 8) Is Western Europe turning East to find an alternative to the problems of the US dollar and the foreign policy that attempts to maintain its hegemonic status? 9

10 Suggested General Reading Books Cain, Peter J. & Hopkins, Anthony G., British Imperialism: Crisis and Destruction , Vol.2 (London: Longman). Cohen, Benjamin J., Advanced Introduction to International Political Economy (Cheltenham/UK: Edward Elgar). Cohen, Benjamin J., Currency Power: Understanding Monetary Rivalry (Princeton, NJ: Princeton University Press). Cox, Robert, Production, Power, and World Order: Social Forces in the Making of History (New York: Columbia U.P.). Crane, George T. & Amawi, Abla, The Theoretical Evolution of International Political Economy (New York: Oxford University Press). Dicken, Peter, Global Shift: Reshaping the Global Economic Map in the 21st Century (London: Sage). Dunning, John, Multinational Enterprises and the Global Economy (Wokingham: Addison-Wesley). Frieden, J., Global Capitalism: Its Rise and Fall in the 21 st Century (New York: W.W. Norton). Galbraith, John Kenneth, The World Economy since the Wars (London: Trafalger Square). Gill, Stephen. & Law, David, The Global Political Economy (New York: Harvester). Gilpin, R., The Political Economy of International Relations (Princeton, N.J.: Princeton U.P.). Harvey, David, The Condition of Postmodernity: An Enquiry into the Origins of Cultural Change (Oxford: Blackwell). Held, D., et al, Global Transformations (Cambridge: Polity Press)., Models of Democracy (Redford City, CA: Stanford U.P.) 10

11 Held, D. & McGrew, A., Globalisation and Anti-Globalisation: Beyond the Great Divide (Cambridge: Polity). Helleiner, Eric, States and the Reemergence of Global Finance (London: Cornell U.P.). Hirst, Paul & Thompson, Grahame, Globalisation in Question: The International Economy and the Possibilities (Cambridge: Polity Press). Hobsbawm, Eric, 1994: The Age of Extremes: A History of the World, , Vintage: New York. Hoogvelt, A., Globalisation and the Postcolonial World: The New Political Economy of Development Keynes, J. M., The Collected Writings of J.M. Keynes. Vol.26, Activities : Shaping the Post-War World, Bretton Woods and Reparations, Moggeridge, D. (ed), (Cambridge: Cambridge U.P.). Kiely, Ray, Empire in the age of globalisation. US hegemony and neoliberal disorder (London: Pluto Press). Kindleberger, C. P., The World in Depression, (Berkeley and Los Angeles: University of California Press). Kirshner, J., American Power after the Financial Crisis (Ithaca, NY: Cornell University Press). Korton, David, When Corporations Rule the World (West Hartford, CT: Kumarian). Klein, N., No Logo (London: Flamingo). Krugman, Paul, Pop Internationalism (Massachusetts: The MIT Press). Leys, C., The Rise and Fall of Development Theory (Bloomington: Indiana University Press). Lipietz, A., Towards a New Economic Order: Postfordism, Ecology and Democracy (London: Polity Press). McGrew, A., The Transformation of Democracy? (The Open University: Polity Press). Mason, Paul, Meltdown: The End of the Age of Greed (London: Verso Books). 11

12 Moffitt, Michael, The World s Money: International Banking from Bretton Woods to the Brink of Insolvency (New York: Simon & Schuster). O'Brian, Richard, Global Financial Integration: The End of Geography (London: Pinter). O Hara, Phillip, Growth and Development in the Global Political Economy. Social structures of accumulation and modes of regulation (Oxford: Routledge) Ohmae, Keniche, The Borderless World (London: Collins). Overbeek, H.W., Nousios, P. and Tsolakis, A. (eds), Globalisation and European Integration: Critical Approaches to Regional Order and International Relations (London: Routledge). Overbeek, H.W. (Ed.). (1993). Restructuring Hegemony in the Global Political Economy: The Rise of Transnational Neo-Liberalism in the 1980 (New York/London: Routledge). Phillips, K Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism (London: Penguin). Robinson, William. I., Promoting Polyarchy: Globalization, U.S. Intervention, and Hegemony (Cambridge U. P.)., A Theory of Global Capitalism. Production, Class and State in a Transnational World (Baltimore, MD: John Hopkins University Press). Rodrik, D., The Globalization Paradox: Democracy and the Future of the World Economy (New York: W. W. Norton). Rosenau, J. & Czempiel, E.-O. (eds.), Governance without Government: Order and Change in World Politics (Cambridge: Cambridge U. P.). Scholte, J., Globalisation: A Critical Introduction (London: Palgrave). Soros, George, The Crisis of Global Capitalism (London: Little, Brown & Company). Steil, Benn, The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order (Princeton University Press). Stiglitz, Joseph, Financial Liberalisation: How Far, How Fast? (Cambridge: Cambridge U. P.). 12

13 , Globalisation and its Discontents (London: Allen Lane). Strange, Susan, States and Markets: An Introduction to International Political Economy (London: Pinter)., Casino Capitalism (Oxford: Basil Blackwell)., The Retreat of the State. The Diffusion of Power in the World Economy (Cambridge Studies in International Relations)., Mad Money (Manchester U. P.) Stubbs, R. & Underhill, G., Political Economy and the Changing Global Order, (Basingstoke: Macmillan). Tett, Gillian, Fool's Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets and Unleashed a Catastrophe (New York: Little Brown and Company). Van der Pijl, Kees, 2007: Modes of foreign relations and political economy, Vol.1: Nomads, Empires, States (London: Verso)., 2010: Modes of foreign relations and political economy, Vol.2: The Foreign Encounter in Myth and Religion (London: Verso)., 2014: Modes of foreign relations and political economy, Vol.3: The Discipline of Western Supremacy (London: Verso). Underhill, G. (ed.), The New World Order in International Finance (London: Macmillan). Articles Barnevik, Percy, Growth Spur, World Link: The Magazine of the World Economic Forum, September/October: 36:39. Cerny, Philip, 1996, International Finance and the Erosion of State Policy Capacity, in Grummett, P. (ed.), Globalisation and Public Policy (Cheltenham: Edward Elgar, Studies in International Political Economy): Cox, Robert W., 1981: 'Social Forces, States and World Orders: Beyond International Relations Theory', in: Millenium 10: 2, , 1993: Gramsci, Hegemony and International Relations: An Essay in 13

14 Method, in: Stephen Gill (Hg.): Gramsci, Historical Materialism and International Relations, Cambridge: Cambridge University Press, Fukuyama, F., The End of History, The National Interest (summer): Gill, Stephen, 1993: Epistemology, Ontology, and the Italian School, in: ders. (Hg.): Gramsci, Historical Materialism and International Relations, Cambridge (Cambridge University Press), , 2000: Knowledge, Politics, and Neo-Liberal Political Economy, in: Richard Stubbs, und Geoffrey R. D. Underhill (Hg.): Political Economy and the Changing Global Order, 2 nd ed. (Toronto: Oxford University Press), Robinson, William & Harris, Jerry, Towards a Global Ruling Class? Globalisation and the Transnational Capitalist Class, Science and Society, Vol.64, No.1, Spring, Gilpin, Robert, 1987: Three Ideologies of Political Economy, in: ders.: The Political Economy of International Relations, Princeton: Princeton University Press, Helleiner, Eric, 2002: Economic Nationalism as a Challenge to Economic Liberalism? Lessons from the 19th Century, in: International Studies Quarterly 46, , 2003: Economic Liberalism and its Critics: the Past as Prologue?, in: Review of International Political Economy 10, 4, Huntington, Samuel, Will More Countries Become Democratic Political Science Quarterly, 99, No.2. Krugman, P., Competitiveness: A Dangerous Obsession, Foreign Affairs, vol.74, no.2, March/April: Lambie, George, Nemesis of Market Fundamentalism? The Ideology, Deregulation and Crisis of Finance, Contemporary Politics, 15 (2): , Globalisation before the crash: the City of London and UK economic strategy, Contemporary Politics, vol. 19, issue 3. Mearsheimer, John, and Stephen Walt, 2013: Leaving theory behind: Why simplistic hypothesis testing is bad for International Relations, in: European Journal of International Relations 19(3) Pearson, Frederic S., und Simon Payaslian, 1999: The Theoretical Foundations of International Political Economy, in: dies: International Political Economy. Conflict and Cooperation in the Global System, Boston: McGraw Hill,

15 Prys, Miriam, and Stefan Robel, Hegemony, not Empire, in: Journal of International Relations and Development, 14(2): Strange, Susan, Political Economy and International Relations, in: Ken Booth and Steve Smith (eds.): International Relations Theory Today, Cambridge U.P., , 1982: Cave! Hic dragones: a critique of regime analysis, in: International Organization 36, , 1970: International Economics and International Relations: A Case of Mutual Neglect, in: International Affairs 46, 2, Tooze, Roger, 1990: Understanding the Global Political Economy: Applying Gramsci, in: Millennium19, 2, Papers Hidalgo Capitán, working paper on Development Theories. Lambie, G. The Changing Political Economy of Latin America: From Laissez Faire to Neoliberalism and Beyond, Consortium for Latin America Business Schools (CLADEA) conference Posted on OPAL. Robinson, William, Capitalist Globalisation and the Transnationalisation of the State. To be supplied. Underhill, Geoffrey, States, Markets and Governance: Private Interests, the Public Good and the Democratic Process, University of Amsterdam. Weblinks Boron, Atilio, Democracy or Neoliberalism?, Boston Review. review.net /BR21.5/boron.html Cohen, Benjamin, The Bretton Woods System - Drucker, Peter, Colonialism, Capitalism and Eurocentrism: What Made Capitalism Win?: Evans, Trevor, Five explanations for the international financial crisis. Institute for International Political Economy, Berlin, Working Paper, 08/ berlin.org/fileadmin/downloads/working.../ipe_working_paper_08.pdf 15

16 Martin, Jamie, Review of Stiel, The Battle for Bretton Woods - Presentation by Steil Kay, C., The Latin American Contribution to Development Theory. repub.eur.nl/pub/18931/wp82.pdf Keohane, Robert O., The old IPE and the new, in: Review of International Political Economy, 16: 1, 34-46, online available: Krugman, Paul: Conscience of a Liberal, New York Times-Blog, Meiksins Wood, Ellen, The Agrarian Origins of Capitalism, Monthly Review, July-August. Press). Robinson, W.I., Remapping Development in the Light of Globalisation: From a Territorial to a Social Cartography. Third World Quarterly, vol.23, no. 6: Sklair, Leslie, Competing Conceptions of Globalization, Journal of World- Systems Research, Smith, Steve, 2003: Presidential Address to the International Studies Association (ISA), February 27, 2003, Portland, OR, online: 16