POLITICAL SCIENCE 142 POLITICAL ECONOMY OF WESTERN EUROPE. Winter 2004 Monday, Wednesday

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1 1 Isabela Mares Department of Political Science Encina Hall West, Room 411 (650) Office Hours: Monday 12-1 p.m. and by appointment POLITICAL SCIENCE 142 POLITICAL ECONOMY OF WESTERN EUROPE Winter 2004 Monday, Wednesday This course will provide an analytical and historical introduction to the political economy of Western Europe. We will seek to explain fundamental differences in economic performance, by examining the relative importance of structural institutional variables and of the strategic choices of key political actors. Topics include: industrial policy, wage determination and income inequality, welfare state expansion and retrenchment, European integration. The readings will focus on Britain, Germany and Sweden. Assigned Readings: The following books have been ordered and can be purchased at the Stanford Bookstore. 1. Hall, Peter and Soskice, David Varieties of Capitalism, Oxford: Oxford University Press. 2. Esping-Andersen, Gøsta Three Worlds of Welfare Capitalism. Princeton: Princeton University Press. 3. Scharpf, Fritz Governing in Europe: Effective and Democratic?, Oxford: Oxford University Press. All other readings can be found on the course web-page:

2 2 Requirements and Grading: Examinations: (a) In-class mid-term (30% of grade) and (b) final in-class exam (40% of grade). In-class discussion and/or section participation will account for the remaining part of the grade. COURSE OUTLINE AND READINGS PART I: ANALYTICAL FRAMEWORK 1: What is Political Economy? An overview of the course. (07/01/04) 2: Corporatism : The Organization of Economic Interests in Europe (12/01/04) Schmitter, Philippe Still the Century of Corporatism?, in Schmitter, Philippe and Lehmbruch, Gerhard, eds., Trends Towards Corporatist Intermediation, Beverly Hills: Sage, pp Eichengreen, Barry Institutions and Economic Growth: Europe after World War II. In Crafts, Nicholas and Toniolo, Gianni, eds., Economic Growth in Europe since World War II. Cambridge: Cambridge University Press, pp : Varieties of Capitalism (14/01/04) Hall, Peter A. and Soskice, David An Introduction to varieties of capitalism, in Hall, Peter and Soskice, David, eds., Varieties of Capitalism. The institutional foundations of comparative advantage, Oxford: Oxford University Press, Martin Luther King Day. No Class (19/01/04) 4: The Welfare State (21/01/04) Esping-Andersen, Gøsta Three Worlds of Welfare Capitalism. Princeton: Princeton University Press, pp

3 3 PART II: THE GOLDEN AGE OF POSTWAR CAPITALISM No Class on 26/01/04. Instructor will be out of town. We will reschedule the class at the end of the quarter. 5: Understanding British Economic Decline (28/01/04) Shonfield, Andrew Modern Capitalism: The Changing Balance of Public and Private Power. New York: Oxford University Press, pp , Scharpf, Fritz Great Britain: The Drama of Incomes Policy, in Scharpf, Fritz, Crisis and Choice in European Social Democracy, Ithaca: Cornell University Press, pp : The Creation of the German Social Market Economy (02/02/04) Katzenstein, Peter Policy and Politics in West Germany: The Growth of a Semi- Sovereign State. Philadelphia: Temple University Press, pp Esping-Andersen and Korpi, Walter Social Policy as Class Politics in Post-War Capitalism: Scandinavia, Austria and Germany, in Goldthorpe, John H., Order and Conflict in Contemporary Capitalism, Oxford: Oxford University Press, pp : The Swedish Model (04/02/04) Martin, Andrew Wages, Profits and Investment in Sweden, in Lindberg, Leon and Maier, Charles, eds., The Politics of Inflation and Economic Stagnation, Washington: Brookings, pp Esping-Andersen, Gøsta Politics Against Markets. Princeton: Princeton University Press, Chapter 5: The Social Citizenship State, pp : The Treaty of Rome. (09/02/04) Milward, Alan, 1992, The European Rescue of the Nation-State, London: Routledge, pp : IN-CLASS MIDTERM (11/02/04) PART III: AUSTERITY AND RETRENCHMENT President s Day. No Class. (16/02/04) 10: The Conservative Experiment in Britain (18/02/04)

4 4 King, Desmond and Wood, Stewart The Political Economy of Neoliberalism: Britain and the United States in the 1980 s. In Kitschelt, et. al., eds., Continuity and Change in Contemporary Capitalism, New York: Cambridge University Press, pp Rhodes, Martin Restructuring the British Welfare State: between domestic constraints and global imperatives, in Scharpf, Fritz, et. al., eds., Welfare and Work in the Open Economy, pp President s Day. No class. (23/02/04) 11: Germany: Difficult adjustment and rising unemployment (25/02/04) Streeck, Wolfgang German Capitalism. Does it exist. Can it survive?, in Crouch, Colin and Streeck, Wolfgang, eds., Political Economy of Modern Capitalism. Mapping Convergence and Diversity, London: Sage, pp Manow, Philip and Seils, Erich Adjusting Badly. The German Welfare State in an era of Globalization, Forthcoming in Scharpf, Fritz, et. al. eds., Welfare and Work in the Open Economy, pp : Sweden: The end of solidarity? (01/03/04) Pontusson, Jonas and Swenson, Peter Labor Markets, Production Strategies and Wage Bargaining Institutions. The Swedish Employer Offensive in Comparative Perspective, Comparative Political Studies, 29, 2, Esping-Andersen, Gøsta Welfare-State and Labor Market Regimes, in Esping- Andersen, Gøsta, The Three Worlds of Welfare Capitalism. Princeton: Princeton University Press, pp : The Deepening and Broadening of European Integration (03/03/04) Fioretos, Orfeo The domestic sources of multilateral preferences: Varieties of Capitalism in the European community, In Hall, Peter and Soskice, David, eds., Varieties of Capitalism. The institutional foundations of comparative advantage, Oxford: Oxford University Press, pp : Monetary Unification: Causes and Consequences (03/03/04) Eichengreen, Barry European Monetary Unification: A Tour d horizon, Oxford Review of Economic Policy, 14, 3, : IN-CLASS FINAL (10/03/04) 16: Institutional convergence or persistent divergence among capitalisms? (12/03/03).

5 5 Thelen, Kathleen Varieties of Labor Politics in the developed democracies, in Hall, Peter and Soskice, David, eds., Varieties of Capitalism, Oxford: Oxford University Press, Soskice, David Divergent Production Regimes: Coordinated and Uncoordinated Market Economies in the 1980 s and 1990 s, in Kitschelt, Herbert et. al., eds., Change and Continuity in Contemporary Capitalism, pp Recommended: Scharpf, Fritz Governing in Europe. How effective, How Democratic?, Oxford: Oxford University Press, 1-84, Make-up session to be arranged (before final).