College of William & Mary Government 328, Fall International Political Economy

Transcription

1 College of William & Mary Government 328, Fall 2010 International Political Economy Class Office MWF 12:00-12:50 or 13:00-13:50 23 Morton Hall Location: 40 Morton Hall Office hours: Mon. & Wed. 3-5pm & by appt. Course description This course analyzes the politics of international economic relations, investigating the roots and evolution of the international political economy since World War II, and focusing on the rise and implications of global economic governance and globalization. We will aim to answer questions such as Why do governments adopt particular international economic policies?, Why do states often have trouble cooperating economically?, When are governments likely to promote or oppose globalization?, and What do we expect the international political economy to look like 10 years from today? The course will deal with the interplay between politics and economics in a range of different issue areas, including the international financial system and its management (IMF, World Bank, etc.), the international trading system and its evolution (GATT, WTO, etc.), attempts at regional economic integration (the European Union, NAFTA), changes in the patterns of world production, the role of multinational corporations, and trends in the international distribution of power and wealth in the post-cold War world. We will also study issues of debt and development, and attempts at political and economic liberalization around the world since the 1990s, from Africa to Indonesia and from Mexico to Russia and China. Analytically, the course will focus on the relationships between states, markets, and ideas; power, wealth, and capabilities; forms of conflict and cooperation; and the role of historical and institutional legacies. Over the course of the semester, we will follow a two-track approach. The first track will concentrate on providing the theoretical framework and the empirical context for the various topics listed above, while the second track will focus on analyzing contemporary events in each of these areas. You will find that the two tracks reinforce each other and that your ability to analyze current events will grow considerably over the course of the term. Course policies & requirements Although you may find some of the reading hard going at first, you will find that doing the reading before class will increase what you get out of the lectures and discussions immeasurably. Moreover, you should be prepared to ask and answer questions about the reading in lecture. 10%

2 of your grade will be based on class participation, which will be judged in terms of the quality, not the quantity, of your contributions. In addition, there will be five unannounced quizzes given in class. These will serve both to encourage your attendance and to check whether you are doing the reading. The quizzes are worth 2% of your grade each. There will be two midterm exams and a page final paper, but no final exam. The midterm exams will be worth 25% of your total grade each. They will be identical in set-up, and each will consist of a brief multiple choice section, a short answer section, and an essay question. The paper will be worth 30% of your overall grade. Details about the paper assignment will be provided later in the semester. The assignment will be due on Friday, Dec. 3. Additional policies & comments You need to let me know ahead of time if you cannot make a class. After-the-fact excuses for missing class on days that happened to feature a quiz are unlikely to be accepted. The same goes for the midterm exams: do not expect to me a day later with a flimsy excuse and expect to be able to take a make-up exam without penalty. Similarly, if you need an extension on your paper, and have a good reason, let me know in advance. Unapproved late submissions of the paper will be penalized one half of a full grade per day. Failure to complete any single component of the course (never showing up to class, missing all 5 quizzes, missing a midterm, or not submitting a final paper) will result in failing the course in other words, you cannot make up for it by excelling in all other components. I take violations of academic honesty very seriously. All academic work must meet the standards set out in the Honor Code. In particular, if you cheat on a test or commit plagiarism on your paper and I discover it, I will report the violation to the Dean s office, with all the potential repercussions that implies. The key point is that the work you submit must be your own not that of a fellow student, nor that of someone whose work you found in the library or online. Office hours &c My office hours are Mondays and Wednesdays, 3-5pm and by appointment. Please do come see me if you have any questions on or problems with the reading material, the writing assignment, or the course in general. If you need to reach me to make an appointment, I am most easily reached by . Readings The following 3 books should be available for purchase at the W&M Bookstore: Collier, Paul The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It. New York, NY: Oxford University Press. 2

3 Frieden, Jeffry A., Lake, David A., Broz, J. Lawrence International Political Economy: Perspectives on Global Power and Wealth. New York, NY: W.W. Norton. Gilpin, Robert Global Political Economy: Understanding the International Economic Order. Princeton, NJ: Princeton University Press. There will be no reading packet. All articles on the syllabus are available online or through the Electronic Journals feature of the W&M library website. If you do not know how to access these readings electronically or in print, please ask someone (a fellow student, a librarian, or me)! In addition, there will be regular reading assignments of brief articles on new developments in global political economy in newspapers such as the Financial Times, the New York Times and the Economist. These, too, will be available electronically. Links will be provided by and on the course website. I. Introduction Calendar Wed. Aug. 25 Introduction; overview of course FLB (= Frieden, Lake, & Broz): Introduction: International Politics and International Economics. Fri. Aug. 27 Globalization: What is it and why should we care? Keohane, Robert O., and Joseph S. Nye Globalization: What s New, What s Not (And So What)? Foreign Policy, nr. 118, pp Drezner, Daniel W. Globalization and Policy Convergence. FLB chapter 12. KOF Index of Globalization, at globalization.kof.ethz.ch Method of calculation, detailed rankings, press releases for 2010 and 2009 Rodrik, Dani Sense and Nonsense in the Globalization Debate. Foreign Policy 107: Frankel, Jeffrey. Globalization and the Economy. FLB chapter 4. Mon. Aug. 30 Theoretical perspectives Gilpin, chapter 1 (pp. 3-24) Wed. Sep. 1 States and markets Gilpin, chapters 2-3 (pp ) 3

4 II. The Politics of International Trade Fri. Sep. 3 Basic overview; the logic of comparative advantage Suranovic, Steven M. The Theory of Comparative Advantage Overview at: Coughlin, Cletus C. The Controversy over Free Trade: The Gap between Economists and the General Public. FLB chapter 19 Krugman, Paul What Do Undergrads Need to Know about Trade? American Economic Review 83(2): Mon. Sep. 6 (Labor Day) The global trading system: overview Gilpin, chapter 8 (pp ). Stokes, Bruce The Protectionist Myth. Foreign Policy 117: Wed. Sep. 8 Free trade and protectionism before the twentieth century Schonhardt-Bailey, Cheryl. Free Trade: The Repeal of the Corn Laws. FLB chapter 5 Gourevitch, Peter A International Trade, Domestic Coalitions, and Liberty: Comparative Responses to the Crisis of FLB chapter 6. Fri. Sep. 10 Hegemons and trade Krasner, Stephen State Power and the Structure of International Trade. FLB chapter 1. Lake, David A. British and American Hegemony Compared: Lessons for the Current Era of Decline. FLB chapter 8. Eichengreen, Barry. The Political Economy of the Smoot-Hawley Tariff. FLB chapter 2. Mon. Sep. 13 The domestic politics of trade Rogowski, Ronald. Commerce and Coalitions: How Trade Affects Domestic Political Alignments. FLB chapter 20. Bailey, Michael, Judith Goldstein, and Barry R. Weingast. The Institutional Roots of American Trade Policy: Politics, Coalitions, and International Trade. FLB chapter 24. Alt, James E., and Michael Gilligan. The Political Economy of Trading States. FLB chapter 21. 4

5 Wed. Sep. 15 Trade and jobs Krugman, Paul, and Robert Lawrence Trade, Jobs, and Wages. Scientific American, April: Krugman, Paul Does Third World Growth Hurt First World Prosperity? Harvard Business Review July: Freeman, Richard B. Are Your Wages Set in Beijing? FLB chapter 22. Fri. Sep. 17 Multinational corporations Gilpin, chapter 11 The State and Multinationals. (pp ). Caves, Richard E. The Multinational Enterprise as an Economic Organization. FLB chapter 9. Mon. Sep. 20 Multilateral trade negotiations & the WTO Deardorff, Alan V., and Robert M. Stern. What You Should Know about Globalization and the WTO. FLB chapter 23. Mattoo, Aaditya, Arvind Subramanian From Doha to the Next Bretton Woods: A New Multilateral Trade Agenda. Foreign Affairs 88(1): Wed. Sep. 22 Regional integration Gilpin, chapter 13 The Political Economy of Regional Integration. pp Krugman, Paul The Uncomfortable Truth about NAFTA. Foreign Affairs, November/December. III. The Politics of International Finance Fri. Sep. 24 Monetary politics & exchange rate regimes Gilpin, chapter 9 The International Monetary System (pp ). Cohen, Benjamin J. The Triad and the Unholy Trinity: Problems of International Monetary Cooperation. FLB chapter 15. Mon. Sep. 27 The gold standard Rockoff, Hugh The Wizard of Oz as a Monetary Allegory. Journal of Political Economy, 98(4): Broz, J. Lawrence. The Domestic Politics of International Monetary Order: The Gold Standard. FLB chapter 13. Eichengreen, Barry, and Peter Temin The Gold Standard and the Great Depression. NBER Working Paper ( 5

6 Special event. Wed. Sep. 29 Movie: The Wizard of Oz (time and place to be announced) Fixing and floating Frieden, Jeffrey. Globalization and Exchange Rate Policy. FLB chapter 18. Obstfeld, Maurice, and Kenneth Rogoff The Mirage of Fixed Exchange Rates. Journal of Economic Perspectives 9(4): Helleiner, Eric. A Fixation with Floating: The Politics of Canada s Exchange Rate Regime. Canadian Journal of Political Science 38(1): Fri. Oct. 1 Dollarization & monetary integration Hausmann, Ricardo Should there be five currencies or one hundred and five? Foreign Policy, nr. 116 (Fall), pp Steil, Benn The End of National Currency. Foreign Affairs, May/June. Cohen, Benjamin "Dollarization Rest in Peace," International Journal of Political Economy 33(1): Krugman, Paul Monomoney Mania. Slate.com, April 15. Sachs, Jeffrey, and F. Larrain Why Dollarization is More Straitjacket than Salvation. Foreign Policy, nr. 116 (Fall), pp Mon. Oct. 4 International financial crises Reed, Christopher The Damn d South Sea Harvard Magazine, May. Bordo, Michael, Barry Eichengreen, Daniela Klingebiel and Maria Soledad Martinez- Peria Financial Crises: Lessons from the Last 120 Years. Economic Policy 16(32): Reinhart, Carment, and Ken Rogoff This Time Is Different: A Panoramic View of Eight Centuries of Financial Crises. NBER working paper Wed. Oct. 6 Financial politics & the IMF Gilpin, chapter 10 The International Financial System (pp ). Oatley, Thomas, and Jason Yackee. American Interests and IMF Lending. International Politics 41(3): Birdsall, Nancy Why It Matters Who Runs the IMF and the World Bank. Center for Global Development Working Paper 22. ( 6

7 Fri. Oct. 8 Midterm 1 Mon. Oct. 11 Fall Break (no class) IV. National Economies and Development in a Globalized World Wed. Oct. 13 National systems of political economy Paper assignment handed out Gilpin, chapter 7 National Systems of Political Economy. (pp ). Fri. Oct. 15 International competitiveness Krugman, Paul Competitiveness: A Dangerous Obsession. Foreign Affairs 73(2) March/April. Cowling, Keith, and Roger Sugden Strategic Trade Policy Reconsidered: National Rivalry vs. Free Trade vs. International Cooperation. Kyklos 51(3): Reich, Robert B Who Is Us? Harvard Business Review, 90: Kapstein, Ethan B We Are Us: The Myth of the Multinational. The National Interest pp Krugman, Paul Myths and Realities of U.S. Competitiveness. Science, Nov.: Mon. Oct. 18 The state and economic development 1 Gilpin, chapter 12: The State and Economic Development. (pp ). Wed. Oct. 20 The state and economic development 2 Acemoglu, Daron. Root Causes: A Historical Approach to Assessing the Role of Institutions in Economic Development. FLB chapter 26. Rodrik, Dani Trading in Illusions. Foreign Policy, March/April, pp Fri. Oct. 22 The state and globalization Gilpin, chapter 14. The Nation-State in the Global Economy. pp Bremmer, Ian State Capitalism Comes of Age. Foreign Affairs 88(2): Mon. Oct. 25 Large developing countries in the global economy: China Fallows, James China Makes, the World Takes. Atlantic Monthly July/Aug. Scissors, Derek Deng Undone. Foreign Affairs 88(3):

8 Gilboy, George J The Myth Behind China s Miracle. Foreign Affairs, July/August. Das, Gurcharan The India Model. Foreign Affairs, July/August Wed. Oct. 27 Small developing countries in a global economy Sally, Razeen. The Political Economy of Trade Policy Reform: Lessons from Developing Countrie. FLB chapter 28. Sutherland, Peter D Transforming Nations: How the WTO Boosts Economies and Opens Societies. Foreign Affairs, March/April. Lewis, Peter Economic Reform and Political Transition in Africa: The Quest for a Politics of Development. World Politics, Fri. Oct. 29 Natural resources: boon or bane? Jensen, Nathan, and Leonard Wantchekon Resource Wealth and Political Regimes in Africa. Comparative Political Studies 37(7): Friedman, Thomas L The First Law of Petropolitics. Foreign Policy. Sachs, Jeffrey D., and Andrew M. Warner Natural Resource Abundance and Economic Growth. At Mon. Nov. 1 Helping poor countries? International investment Tarzi, Shah M. Third World Governments and Multinational Corporations: Dynamics of Hosts Bargaining Power. FLB chapter 10. Elkins, Zachary, Andrew T. Guzman, and Beth A. Simmons. Competing for Capital: The Diffusion of Bilateral Investment Treaties. FLB chapter 11. Büthe, Tim, and Helen V. Milner The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements? American Journal of Political Science 52(4): Mallaby, Sebastian Saving the World Bank. Foreign Affairs, May/June. Wed. Nov. 3 Helping poor countries? Foreign aid & debt relief Center for Global Development Commitment to Development Index At (browse, and read information about constructing the index and what it means) Easterly, William Debt Relief. Foreign Policy Nov./Dec., pp Thomas, M.A Getting Debt Relief Right. Foreign Affairs, Sept./Oct.,

9 Birdsall, Nancy, Dani Rodrik, and Arvind Subramanian How to Help Poor Countries. Foreign Affairs, July/August Fri. Nov. 5 Helping the Bottom Billion 1 Collier, parts 1-2 Mon. Nov. 8 Helping the Bottom Billion 2: Challenges Collier, parts 3-4 Wed. Nov. 10 Helping the Bottom Billion 3: Solutions? Collier, part 5 Sachs, Jeffrey D The Development Challenge. Foreign Affairs, March/April. Fri. Nov. 12 Midterm 2 V. The Future of the Global Political Economy Mon. Nov. 15 The future of the trading state Krugman, Paul The Illusion of Conflict in International Trade. Peace Economics, Peace Science and Public Policy, 2(2): Wolf, Martin Will the Nation-State Survive Globalization? Foreign Affairs, January/February, pp Rosecrance, Richard Bigger is Better. Foreign Affairs 89(3): Christensen, Clayton, Thomas Craig, and Stuart Hart The Great Disruption. Foreign Affairs, March/April. Wed. Nov. 17 The future of major currencies Eichengreen, Barry The Dollar Dilemma. Foreign Affairs 88(5): Jones, Erik The Euro and the Financial Crisis. Survival 51(2): Ferguson and Kotlikoff The Degeneration of the EMU. Foreign Affairs, 79(2): Fri. Nov. 19 The global financial crisis Fallows, James Be Nice to the Countries That Lend You Money Atlantic Monthly, Dec. Blodget, Henry Why Wall Street Always Blows It Atlantic Monthly, Dec. 9

10 Mosley, Layna, and David Andrew Singer The Global Financial Crisis: Lessons and Opportunities for International Political Economy. International Interactions 35(4): Krugman, Paul The Return of Depression Economics. Foreign Affairs, 78(1). Woo, Wing Thye The Asian Financial Crisis: A Ten-Year Retrospective on the Winds of Fortune. Brookings Institution. Mon. Nov. 22 Global issues: challenging the reach of the state Boot, Max Pirates, Then and Now. Foreign Affairs 88(4): Hovi, Jon, Tora Skodvin, and Steinar Andresen The Persistence of the Kyoto Protocol: Why Other Annex I Countries Move on without the United States. Global Environmental Politics 3(4):1-23. Wed. Nov. 24 Thanksgiving Break (no class) Fri. Nov. 26,, Mon. Nov. 29 Governance in the global economy Gilpin, chapter 15. Governing the Global Economy. pp Nye, Joseph S Globalization s Democratic Deficit. Foreign Affairs, July/August. Birdsall, Nancy Why It Matters Who Runs the IMF and the World Bank. Center for Global Development Working Paper 22. ( Wed. Dec. 1 Throwing our weight around Loeffler, Rachel L Bank Shots. Foreign Affairs 88(2): Simi, T.B., and Atul Kaushik The Banana War at the GATT/WTO. CUTS CITEE Trade Law Brief No. 1/2008. ( Sherman, Richard Targeting Democracies: Regime Type and America s Aggressively Unilateral Trade Policy. Social Science Quarterly 83(4): Fri. Dec. 3 Back to the future Paper due Rapley, John The New Middle Ages. Foreign Affairs, May/June. Altman, Roger C Globalization in Retreat. Foreign Affairs, 88(4):2-7. Ferguson, Niall. Sinking Globalization. Foreign Affairs, March/April