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

Transcription

1 College of William & Mary Government 328, Fall 2012 International Political Economy Class Office TuTh 8-9:20 or 9:30-10:50 31 Morton Hall Location: 1 Morton Hall Office hours: TuTh & by appt. maurits@wm.edu 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 class.

2 There will be two midterm exams and a page final paper that will serve as your final exam. The midterm exams will be worth 25% of your total grade each and will be given in class on October 4 th and November 15 th. 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, and will be due on the last day of class. December 6 th. For the paper, you will analyze the policy choices of a developing country as it interacts with the global economy. Class participation is worth 20% of your final grade, and is constructed from three separate components: - Participation in class discussions, which will be judged in terms of the quality, not the quantity, of your contributions. Class discussions are crucial opportunities to critically analyze the material covered in the readings and lectures, and to share your own ideas and insights. Your participation will not just improve your own learning; it also helps that of all your fellow students. - Quizzes: There will be four unannounced quizzes given in class, based on the reading for that day as well as on major current events - Extra credit: you can boost your participation grade one full letter grade by any combination of 8 of the following assignments : - Online discussion: From time to time I will post recommended readings, along with some comments, on our class discussion board. Make a thoughtful contribution (at least 100 words long) to the ensuing discussion - Over the course of the semester, I will identify at least 10 outside speakers or events relevant to our course. Attend such an event and write a brief comment/ response on the discussion board for that particular event So, attend 8 events, or contribute to 8 discussions, or do some combination of each summing to 8 Both of these options are great ways to think about and apply course material beyond the classroom. 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 2

3 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 Tuesdays and Thursday, 11am-noon, 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 are required texts, and should be purchased at the W&M Bookstore (or elsewhere, as you like): 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. Rodrik, Dani The globalization paradox: Democracy and the future of the world economy. New York, NY: W.W. Norton. All other readings on the syllabus are available online or through the Electronic Journals feature of the W&M library website. In addition, there will be occasional reading assignments of brief articles on new developments in global political economy appearing in the Financial Times, the Economist, etc. Links to these will be provided by and on the course Blackboard site. I. Introduction Calendar Thu. Aug. 30 Introduction; overview of course FLB (= Frieden, Lake, & Broz): Introduction: International Politics and International Economics. Tue. Sep. 4 Globalization & theoretical perspectives Gilpin, chapter 1 (pp. 3-24) Drezner, Daniel W. Globalization and Policy Convergence. FLB chapter 12. KOF Index of Globalization, at globalization.kof.ethz.ch Method of calculation, detailed rankings, and press release for Frankel, Jeffrey. Globalization and the Economy. FLB chapter 4. 3

4 Thu. Sep. 6 States and markets Gilpin, chapters 2-3 (pp ) II. The Politics of International Trade Tue. Sep. 11 Costs & benefits of free trade Ricardo, David On foreign trade read from p. 139 (starting at Under a system to p. 145 (ending with the accumulation of money. ) Coughlin, Cletus C. The Controversy over Free Trade: The Gap between Economists and the General Public. FLB chapter 19 Freeman, Richard B. Are Your Wages Set in Beijing? FLB chapter 22. Krugman, Paul What Do Undergrads Need to Know about Trade? American Economic Review 83(2): Ricardo, David On foreign trade the entire chapter Thu. Sep. 13 The global trading system: overview Gilpin, chapter 8 (pp ). => No class; instead, watch Journeyman Pictures documentary Global economics Global exchange: Free trade & protection ( Tue. Sep. 18 Free trade and protectionism in the past 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. 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. Thu. Sep. 20 The domestic politics of trade Rogowski, Ronald. Commerce and Coalitions: How Trade Affects Domestic Political Alignments. FLB chapter 20. Eichengreen, Barry. The Political Economy of the Smoot-Hawley Tariff. FLB chapter 2. 4

5 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. Tue. Sep. 25 Multinational corporations Gilpin, chapter 11 The State and Multinationals. (pp ). Caves, Richard E. The Multinational Enterprise as an Economic Organization. FLB chapter 9. Palmisano, Samuel J The globally integrated enterprise. Foreign Affairs 85(3): Thu. Sep. 27 Multilateral trade negotiations & the WTO Deardorff, Alan V., and Robert M. Stern. What You Should Know about Globalization and the WTO. FLB chapter 23. Rosecrance, Richard Bigger is better. Foreign Affairs 89(3): Schwab, Susan C After Doha. Foreign Affairs 90(3): Tue. Oct. 2 Regional integration Gilpin, chapter 13 The Political Economy of Regional Integration. pp Burfisher, Mary E., Sherman Robinson, and Karen Thierfelder The impact of NAFTA on the United States. Journal of Economic Perspectives 15(1): Krugman, Paul The Uncomfortable Truth about NAFTA. Foreign Affairs, November/December. Thu. Oct. 4 Midterm 1 III. The Politics of International Finance Tue. Oct. 9 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. 5

6 Thu. Oct. 11 The gold standard Broz, J. Lawrence. The Domestic Politics of International Monetary Order: The Gold Standard. FLB chapter 13. Eichengreen, Barry A critique of pure gold. National Interest 115: Rockoff, Hugh The Wizard of Oz as a Monetary Allegory. Journal of Political Economy, 98(4): Eichengreen, Barry, and Peter Temin The Gold Standard and the Great Depression. NBER Working Paper ( => No class; instead, watch The Wizard of Oz Tue. Oct. 16 Thu. Oct. 18 Fall Break (no class) 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): Tue. Oct. 23 Monetary integration Hausmann, Ricardo Should there be five currencies or one hundred and five? Foreign Policy, nr. 116 (Fall), pp Eichengreen, Barry The Dollar Dilemma. Foreign Affairs 88(5): Moravcsik, Andrew Europe after the crisis. Foreign Affairs, 91(3): Bergsten, C. Fred Why the Euro will survive. Foreign Affairs, September/October. Steil, Benn The End of National Currency. Foreign Affairs, May/June. Thu. Oct. 25 Financial politics & international investments Gilpin, chapter 10 The International Financial System (pp ). Oatley, Thomas, and Jason Yackee. American Interests and IMF Lending. International Politics 41(3): Elkins, Zachary, Andrew T. Guzman, and Beth A. Simmons. Competing for Capital: The Diffusion of Bilateral Investment Treaties. FLB chapter 11. 6

7 Tue. Oct. 30 International financial crises Mosley, Layna, and David Andrew Singer The Global Financial Crisis: Lessons and Opportunities for International Political Economy. International Interactions 35(4): Helleiner, Eric Understanding the global financial crisis: Lessons for scholars of international political economy. Annual Review of Political Science 14: Krugman, Paul The Return of Depression Economics. Foreign Affairs, 78(1). 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 IV. National Economies and Development in a Globalized World Thu. Nov. 1 National systems of political economy Paper assignment handed out Gilpin, chapter 7 National Systems of Political Economy. (pp ). Krugman, Paul Myths and Realities of U.S. Competitiveness. Science, Nov.: Bremmer, Ian State Capitalism Comes of Age. Foreign Affairs 88(2): Tue. Nov. 6 The state and economic development Gilpin, chapter 12: The State and Economic Development. (pp ). Acemoglu, Daron. Root Causes: A Historical Approach to Assessing the Role of Institutions in Economic Development. FLB chapter 26. Johnson, Simon. The Quiet Coup. FLB chapter 29. Thu. Nov. 8 Competing in a globalized world Gilpin, chapter 14. The Nation-State in the Global Economy. pp 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): Krugman, Paul Does Third World Growth Hurt First World Prosperity? Harvard Business Review July:

8 Tue. Nov. 13 Globalization and development Tarzi, Shah M. Third World Governments and Multinational Corporations: Dynamics of Hosts Bargaining Power. FLB chapter 10. Sally, Razeen. The Political Economy of Trade Policy Reform: Lessons from Developing Countries. FLB chapter 28. Sutherland, Peter D Transforming Nations: How the WTO Boosts Economies and Opens Societies. Foreign Affairs, March/April. Williamson, Jeffrey G. Globalization and inequality, past and present. FLB chapter 27. Thu. Nov. 15 Midterm 2 Tue. Nov. 20 North-South relations Elkins, Zachary, Andrew T. Guzman, and Beth A. Simmons. Competing for Capital: The Diffusion of Bilateral Investment Treaties. FLB chapter 11. Birdsall, Nancy, Dani Rodrik, and Arvind Subramanian How to Help Poor Countries. Foreign Affairs, July/August Center for Global Development Commitment to Development Index 20qq. At (browse, and read information about constructing the index and what it means) V. The Future of the Global Political Economy Tue. Nov. 27 Revisiting trade and globalization Rodrik, introduction & chapters 1-4. Thu. Nov. 29 Revisiting finance and national development Rodrik, chapters 5-8 Tue. Dec. 4 Revisiting the politics of the global economic system Rodrik, chapters 9-12 & afterword. Thu. Dec. 6 The future of the world economy Paper due Gilpin, chapter 15. Governing the Global Economy. pp Additional readings TBA 8