Introduction to International Political Economy
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1 GloBal edition Introduction to International Political Economy sixth edition David n. Balaam Bradford Dillman
2 Editor in Chief: Ashley Dodge Managing Editor: Denise Forlow Program Manager: Carly Czech Head of Learning Asset Acquisition, Global Edition: Laura Dent Acquisitions Editor, Global Edition: Sandhya Ghoshal Project Editor, Global Edition: Daniel Luiz Associate Project Editor, Global Editor: Uttaran Das Gupta Media Producer, Global Edition: Anuprova Dey Chowdhuri Senior Manufacturing Controller, Production, Global Edition: Trudy Kimber Cover Art: corgarashu/shutterstock Digital Media Project Manager: Tina Gagliostro Full-Service Project Management and Composition Service: Sudip Sinha/PreMediaGlobal Cover Printer: Courier Westford Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: Pearson Education Limited 2014 The rights of David Balaam and Bradford Dillman to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act Authorized adaptation from the United States edition, entitled Introduction to International Political Economy, 6th edition, ISBN , by David Balaam and Bradford Dillman, published by Pearson Education All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6 10 Kirby Street, London EC1N 8TS. ISBN 10: ISBN 13: ISBN 13: (Print) (PDF) British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Typeset in 10/12, Sabon Lt Std Roman by Sudip Sinha/PreMediaGlobal. Printed and bound by Courier Westford in The United States of America.
3 Introduction to International Political Economy, Global Edition - PDF - PDF - PDF Table of Contents Cover Brief Contents Contents Preface Acknowledgments About the Authors Part I: International Political Economy: Perspectives Chapter 1: An Overview of International Political Economy The Darkness on the Edge of Town Hope on the Horizon? The Road Ahead The What, Why, and How of International Political Economy What is International Political Economy? How to Study IPE: Contrasting Perspectives and Methodologies The Benefits of IPE The Four Levels of Analysis Susan Strange's Four IPE Structures Putting the Pieces Together: Globalization, the Financial Crisis, and StateMarketSocietal Relations Prelude and Chapter 2: Laissez-Faire: The Economic Liberal Perspective Roots of the Economic Liberal Perspective The Dominant Features of Capitalism Smith, the Cynic and Moralist The Transformation of Liberal Ideas and Policies Britain's Corn Laws John Stuart Mill and the Evolution of the Liberal Perspective John Maynard Keynes and the Great Depression The Keynesian Compromise: Reconciling State and International Interests The Resurgence of Classical Liberalism Reagan, Thatcher, and the Neoliberals The 1990s and 2000s: Neoliberalism and Globalization Under Attack The Financial Crisis: A Stake in the Heart or Just a Scratch? An Outdated Economic Theory and Ideology We are All Keynesians Now (Again! At Least for a While?)
4 Ordoliberalism and the Social Market Economy Chapter 3: Wealth and Power: The Mercantilist Perspective Mercantilism as History and Philosophy The Economic Liberal Challenge to Mercantilism Meanwhile on the Other Side of the Atlantic: Overlooked Protectionism in U.S. History Keynes, the Great Depression, and the Postwar Order The Entrenchment of Neomercantilism Neomercantilism and the Globalization Campaign Neomercantilism and the Financial Crisis LDC Neomercantilist Policies Neomercantilist Policies Today China vs. UNOCAL Strategic Resources Policies The Struggle over Rare Earths Chapter 4: Economic Determinism and Exploitation: The Structuralist Perspective Feudalism, Capitalism, SocialismMarx's Theory of History Some Specific Contributions of Marx to Structuralism The Definition of Class Class Conflict and the Exploitation of Workers Capitalist Control over the State Ideological Manipulation Noam Chomsky and the Power of Ideology Lenin and International Capitalism Imperialism and Global World Orders Dependency Theory Modern World System Theory Neoimperialism, Neocolonialism, and Empire-Building Redux Equality or Austerity? Political-Economic Lessons from the Great Recession
5 Chapter 5: Alternative Perspectives on IPE: Constructivist and Feminist Constructivism Views of Conflict and Cooperation Actors That Spread New Norms and "Socialize" States Landmines Tools and Concepts of Analysis Feminist Contributions to IPE Women Matter; Gender Matters Liberal Feminisms Feminist Critiques of Mercantilist Perspectives Structuralist Feminism Smuggling in Senegal: Gender and Trade Policy Part II: Structures of International Political Economy Chapter 6: The Production and Trade Structure Global Production International Trade The Three Perspectives on International Trade Economic Liberals Mercantilists The Vocabulary of International Trade Policy Structuralists GATT and the Liberal Postwar Trade Structure Mercantilism on the Rebound The Uruguay Round The WTO The Doha "Development Round" Regional Trade Blocs North-South Trade Issues Structuralist and Neomercantilist Versions of Trade and Globalization Critics of Globalization and Outsourcing Chapter 7: The International Monetary and Finance Structure A Primer on Foreign Exchange Three Foreign Exchange Rate Systems The Classic Gold Standard: Phase I
6 The Bretton Woods System: The Qualified Gold Standard and Fixed Exchange Rates: Phase II The IMF and the Balance of Payments The Bargain Comes Unstuck The Float- or Flexible-Exchange-Rate System: Phase III and the Changing Economic Structure The Roaring Nineties: Globalization and the Weakening Dollar The Global Financial Crisis: The U.S. Dollar Goes Wobbly The Tangled Web of China's Currency Manipulation If Not the Dollar, Then What? Structural Management and Alternative Reserve Currencies Chapter 8: International Debt and Financial Crises Debt and Its Ramifications The Debt Crises of the 1980s and Early 1990s A New Role for the IMF The Peso Panic of 1994 The Asian Financial Crisis The Global Financial Crisis of 2007 The Run-Up to the U.S. Financial Crisis Coding the Money Tree The Bubble Bursts We Are All Keynesians Now Contagion Takes Over O'er the Ramparts We Watched The Countermovement Occupy Wall Street: "We Are the 99%" The European Debt Crisis: Is the Dream Over? The "Bitter Medicine" of Austerity The EMU Debt Trap: Beware the Greeks : Crisis, Choice, and Change Rebalancing the Global Glut Regulation of the Domestic Economy Addressing Economic Ideology and Inequality Global Governance Chapter 9: The Global Security Structure
7 Realism Lives On: Classical Realists vs. Neorealists A Selected Chronology of Security Developments after World War II The Early Cold War Security Structure JFK, the Cuban Missile Crisis, and the Entrenchment of Bipolarity The Vietnam War and the Road to Multipolarity Human Rights and "The Hell of Good Intentions" Reagan and the Cold War Redux The Post-Cold War Configuration of Power George W. Bush: Unipolarity and the Neorealist Nightmare Obama and the Light Footprint Drones and Joint Strike Forces The Ethics of a Joystick Warrior Cyberwarfare Domestic Cyber-Surveillance and Individual Rights The Future Security Agenda International Organizations NATO Peacekeeping The United Nations and UN Peacekeeping Operations Human Rights and the ICC NGOs: Poor and Failed States Come Undone Working for the International Criminal Tribunal for the Former Yugoslavia : An Even Darker Future? Chapter 10: The Knowledge and Technology Structure The International Knowledge Structure: Actors and Rules The IPE of Information, Innovation, and Technology Advancement Information: A Double-Edged Sword WikiLeaks Government Innovation Policies in Developed Countries Closing the Knowledge and Technology Gap Struggles over Education and Skilled Workers The IPE of Intellectual Property Rights The Politics of IPRs in Developed Countries NorthSouth Conflicts over Intellectual Property Rights Debates over Patented Medicines Patent Rights Versus Patient Rights Struggles over Traditional Knowledge Perspectives on Intellectual Property Rights Alternative Perspectives on Intellectual Property Rights
8 Part III: States and Markets in the Global Economy Chapter 11: The Development Conundrum: Choices Amidst Constraints What are Developing Nations? Independence and Underdevelopment LDCs Mobilizing to Develop UNCTAD and the NIEO: LDCs Organize to Change the System The Market Unleashed The Burden of Long-Term Debt The Economic Liberal Perspective The Structuralist Perspective The Mercantilist Perspective Development: A Customized Approach The East Asian Miracle and Financial Crisis Development and Globalization The Informal Economy, Microcredit and the Mystery of Capital Development in the New Millennium Chapter 12: Toward a More Perfect (European) Union The IPE of Integration The Community Building Project The CAP: The Glue That Holds Together the Community Geographic Expansion The SEA and Economic Union The Treaties of Maastricht and Lisbon EU Political Institutions The Financial Debt Crisis in the Euro Zone Institutional Weaknesses: The Unfinished Union What Can the Troika Do? Mapping the Minefield Challenges in World Politics Chapter 13: Moving into Position: The Rising Powers Transitions in the Formerly Communist Countries
9 New Political and Economic Landscapes Waiting for Godot in Coscalia, Moldova Brazil: The Costs of Success From Colonialism to Modernization The Rise of Brazil under Lula The Costs of Economic Success India: The Other Asian Tiger From Independence to a Mixed Economy Post-Reform Performance The Case of Bangalore: Epitomizing India's Duality Outlook for the Future: The Crisis and Beyond China in Transition: An Analysis of Paradoxes The Roots of China's Rise: The Transition to Market Socialism Contradiction I: Fostering a Consumer Society Despite Repressive Policies Contradiction II: Mercantilism That Runs on Global Interdependence Contradiction III: Adapting to Global Norms and Institutions (While Trying to Change Them) Chapter 14: The Middle East: The Quest for Development and Democracy An Overview of the Middle East The Middle East's Historical Legacy The Ottoman Heritage Twentieth-Century Colonialism and Its Aftermath The Cold War to the Present in the MENA The Roots of Conflict and Cooperation Blaming the Outside World Blaming "Aggressive" Regional Powers Blaming Oppression (and Islamist Resistance to It) Cooperation at the Interstate Level Cooperation at the Human Level International Education and the Middle East Facing the Global Economy: Integration or Marginalization? Oil, Industry, and Growth Dubai: The Las Vegas of Arabia Trade and Investment with the World Globalization in the Gulf Cooperation Council The Falling Behind Thesis The Challenge of the Historical Legacy Societal Problems The Challenge of Democracy Potential Impediments to the Spread of Representative Government
10 Part IV: Transnational Problems and Dilemmas Chapter 15: The Illicit Global Economy: The Dark Side of Globalization The Illicit Economy in Historical Perspective The Stakes and the Actors Studying the Illicit Economy: Key Findings Six Degrees of Separation De Beers and "Blood Diamonds" The Unintended Consequences of Supply-Side Policies Globalization: The Double-Edged Sword The Problem with Coordination between States War and Natural Resources Corruption is Hampering Development Case Studies in the Illicit Global Economy Smuggling Gibson Guitar and the Lacey Act Drug Trafficking Human Trafficking Chapter 16: Global Movement: Migration and Tourism On the Global Fast Track: The IPE of Migration China: Bringing Development Home Migrating toward Development Citizenship and the Politics of Belonging The IPE of Transnational Human Flows Going Mobile: The Political Economy of International Tourism Engine of Economic Growth or Tool of Exploitation? State Management and Promotion of Tourism Social and Cultural Dimensions of Travel and Tourism Chapter 17: Transnational Corporations: The Governance of Foreign Investment
11 What are TNCs? TNCs in Perspective How Large are TNCs? The Recent Rise of TNCs The Patterns of TNC Operations What Determines where TNCs Invest? Product Cycle Theory Appropriability Theory TNCs and Underdevelopment Politics and Protectionist Barriers Currency Instability Location-Specific Advantages Competition How Powerful are TNCs? Changing Reactions to TNCs TNCs and Capitalist Imperialism TNCs as Tools of U.S. Hegemony TNCs as State-Level Actors A Global FDI Regime? TNCs, Global Commodity Chains, and Accountability Outsourcing and the Globally Integrated Enterprise: Boeing's 787 Airplane Chapter 18: Food and Hunger: Market Failure and Injustice An IPE of Food and Hunger A Brief History of Global Food and Hunger Issues A World Food Crisis and a Paradigm Shift Hunger Amidst Plenty An IPE of the Global Food Crisis of 2008 An Undervalued U.S. Dollar Natural Limits, Population Growth, and the Return of Malthusian Nightmares The Role of Speculation Biofuels The Future of Alternative Biofuels Genetically Modified Organisms and Industrial Agriculture and Development Models War, Disease, Corruption, and Government Mismanagement
12 Chapter 19: The IPE of Energy Resources: Stuck in Transition OPEC Rules The Oil Crisis and the Energy Paradigm Shift: Scarcity and Vulnerability The 1980s and 1990s: The Iran-Iraq and Persian Gulf Wars The 1990s: Iraq and the Gulf War Stuck in Transition: The Energy Boom and Volatile Markets in the 2000s Oil and Intervention in Afghanistan and Iraq The Devil's Excrement The Nigerian Resource Curse "Drill Baby Drill": Doubling Down on Fossil Fuels Fracking: The U.S. Resource Curse? The Energy Independence Pipe Dream King Coal and Nuclear Power "Big Oil" Majors: Speculation and Lobbying State-Owned Oil Companies The Renewables: Slowdown vs. Reinvigoration : Three Forks in the Road Chapter 20: The Environment: Steering Away from Climate Change and Global Disaster Chronology of Significant Environment and Climate Change Events and Agreements The Widening Scope of Environmental Problems: A Brief History The Proliferation of Actors The Science and Disputed Facts of Climate Change Climate Change Skeptics Global Management of Climate Change The Rio Meeting The Kyoto Protocol Copenhagen Durban: SNAFU The 18th COP at Doha: Down and Dirty Solutions: A Green IPE? Limit Population Growth New Technology A Hybrid Solution: Microenergy Credits Markets for the Environment More National and Global Agreements: Yet Another New World Order : Plan for a World When There is No Going Back
13 Glossary Glossary of Acronyms Index
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