Examiners commentaries 2013

Examiners commentaries 2013 IR3026 International political economy Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2012 13. The format and structure of the examination may change in future years, and any such changes will be publicised on the virtual learning environment (VLE). Information about the subject guide and the Essential reading references Unless otherwise stated, all cross-references will be to the latest version of the subject guide (2011). You should always attempt to use the most recent edition of any Essential reading textbook, even if the commentary and/or online reading list and/or subject guide refers to an earlier edition. If different editions of Essential reading are listed, please check the VLE for reading supplements if none are available, please use the contents list and index of the new edition to find the relevant section. General remarks Learning outcomes At the end of this course, and having completed the Essential reading and activities, you should be able to: demonstrate an understanding of the processes of global integration and fragmentation in international politics and economics show what the sources are of continuity and change in international political economy demonstrate an appreciation of the history of thought in international political economy distinguish between, and critically evaluate, different theoretical approaches to international political economy explain the different roles of states, international organisations and non-state actors in the politics of international economic relations show an understanding of the economic challenges facing states in their foreign policy. Planning your time in the examination It is important that candidates plan their time carefully in the examination. Candidates should take care to produce the required number of answers, in this case, four out of the 12. Good marks in three or fewer answers cannot make up for the missing marks, and this is likely to lead to a fail. Candidates will have their own preferences for planning each of the four answers. It is generally advisable to take a few minutes at the beginning to set out the basic structure of the answer. It need not be overly detailed but should contain the main points and subheadings of an answer. 1

IR3026 International political economy 2 What are the Examiners looking for? The Examiners are looking for the candidate s ability to understand the question as it appears in the examination paper. This means not merely understanding the material to which it refers, but also the suggestions as to how to use that material, so that the answer precisely responds to the question as set. Candidates should critically reflect on the core theories and concepts that make up the discipline, and especially those that are referred to in the questions. Since time in the examination is limited, candidates should be careful to be relevant and resist going off on irrelevant digressions. This requires being disciplined in the use of illustrative material; which may be necessary but should not be overextended. Linguistic skills are also necessary; a feel for the meaning and subtleties of words, as well as the identification of possible ambiguities in the wording. Good answers can use such ambiguity to identify more than one way of answering the question. Doing this attracts good marks. The best-prepared candidates will always be able to respond to the subtleties of a question in the examination hall and will therefore not rely on model answers. This capacity depends on knowing the material and, of course, having good linguistic and literary skills. The Examiners also look for a familiarity with the relevant literature. This may be acquired through wide reading, but can be approached by remembering the people to whom ideas are attributed in the subject guide or in general texts such as Economides, Spyros and Peter Wilson The economic factor in international relations: a brief introduction. (London: I.B. Tauris, 2001) [ISBN 9781860646638] and Gilpin, Robert Global political economy: understanding the international economic order. (Princeton: Princeton University Press, 2001) [ISBN 9780691086774]. Candidates should always try to read as widely as possible. Key steps to improvement There is no simple way to improve. Immersing yourself in the literature is a good first step. When reading new articles or books, ask yourself questions and select those chapters that are most relevant. It is always a good idea to keep past examination questions in mind when selecting and studying new reading material. Beyond that is the need to debate and discuss the subject with others including with fellow candidates. Good candidates are avid readers of newspapers and journals, and are familiar with ways of accessing these, if necessary, online. This is not always possible but should be attempted. The internet is one of the most important resources now available to the candidate of international political economy. But beware, the internet also provides access to materials that are not of proper academic standard. It is always preferable to work with texts published in widely respected journals and book series. A note on the Examiners commentaries The Comments on specific questions which accompany these General remarks are not intended as indications of model answers but as suggestions as to how a good answer might be produced. There could be other ways to achieve this, and candidates are encouraged to come up with their own answers. Remember, the Examiners are interested not so much in your personal opinions but in properly developed and substantiated arguments that relate to the relevant literature and show

an awareness of both the theoretical and empirical dimensions of the subject. Most importantly, answer the question and do not simply rely on a rehearsal of bits of knowledge from the subject guide that may, or may not, be relevant to the question. Question spotting Many candidates are disappointed to find that their examination performance is poorer than they expected. This can be due to a number of different reasons and the Examiners commentaries suggest ways of addressing common problems and improving your performance. We want to draw your attention to one particular failing question spotting, that is, confining your examination preparation to a few question topics which have come up in past papers for the course. This can have very serious consequences. We recognise that candidates may not cover all topics in the syllabus in the same depth, but you need to be aware that Examiners are free to set questions on any aspect of the syllabus. This means that you need to study enough of the syllabus to enable you to answer the required number of examination questions. The syllabus can be found in the Course information sheet in the section of the VLE dedicated to this course. You should read the syllabus very carefully and ensure that you cover sufficient material in preparation for the examination. Examiners will vary the topics and questions from year to year and may well set questions that have not appeared in past papers every topic on the syllabus is a legitimate examination target. So although past papers can be helpful in revision, you cannot assume that topics or specific questions that have come up in past examinations will occur again. If you rely on a question spotting strategy, it is likely you will find yourself in difficulties when you sit the examination paper. We strongly advise you not to adopt this strategy. 3

IR3026 International political economy Examiners commentaries 2013 IR3026 International political economy Zone A 4 Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2012 13. The format and structure of the examination may change in future years, and any such changes will be publicised on the virtual learning environment (VLE). Information about the subject guide and the Essential reading references Unless otherwise stated, all cross-references will be to the latest version of the subject guide (2011). You should always attempt to use the most recent edition of any Essential reading textbook, even if the commentary and/or online reading list and/or subject guide refers to an earlier edition. If different editions of Essential reading are listed, please check the VLE for reading supplements if none are available, please use the contents list and index of the new edition to find the relevant section. Comments on specific questions Candidates should answer FOUR of the following TWELVE questions. All questions carry equal marks. Question 1 Does globalisation increase global inequality? Reading for the question Chapter 1 of the subject guide provides an introduction to globalisation as a concept and in historical perspective. Other useful discussions of globalisation can be found in Gilpin, Robert Global political economy: understanding the international economic order. (Princeton: Princeton University Press, 2001) [ISBN 9780691086774] Chapters 1 and 2, Gilpin, Robert The challenge of global capitalism: the world economy in the 21st century. (Princeton: Princeton University Press, 2000) [ISBN 9780691092799] Chapter 10, Hirst, Paul and Grahame Thompson Globalization in question: the international economy and the possibilities of governance. (Cambridge: Polity, 2009) third edition [ISBN 9780745621647] and Scholte, Jan Aart Globalization: a critical introduction. (Basingstoke: Macmillan, 2005) second edition [ISBN 9780312236328]. Ravenhill, John (ed.) Global political economy. (Oxford: Oxford University Press, 2010) third edition [ISBN 9780199570812] addresses the question of globalisation and inequality, among others. Approaching this question This question requires candidates to consider the impact that globalisation has had on the global distribution of income and wealth. The most common way of thinking about inequality is by comparing average income and wealth levels per country. A good way to start the answer would be to define the concept of globalisation. In doing so, candidates should

remember that there are different dimensions of globalisation, and that not all authors agree on how to define the concept. Furthermore, different views exist in the literature on when globalisation started. The most widespread understanding of globalisation suggests that contemporary globalisation took off in the 1970s, and candidates should indeed focus on this period. However, a strong answer would also consider, albeit briefly, the link between global economic integration and inequality going back to the post-1945 and pre-1914 eras. The main focus of the answer should be on the various ways in which globalisation has affected global inequality. This entails a discussion of how globalisation has produced unequal levels of economic growth, with many industrialised countries outpacing poorer countries in the last 40 years, thus leading to greater global inequality. However, in more recent years emerging economies (e.g. China, India, Brazil) have seen some of the highest growth rates and increases in income and wealth, which has reduced global inequality quite considerably. There are thus two broad trends to consider, and to some extent they cancel each other out. In answering this question, candidates must resist the temptation merely to rehearse the globalisation debate. They need to focus on the specific question of inequality. Question 2 What explains mercantilism s continuing appeal in contemporary foreign economic policy? Reading for the question Chapter 2 of the subject guide offers an introduction to the mercantilist tradition. Economides, Spyros and Peter Wilson The economic factor in international relations: a brief introduction. (London: I.B. Tauris, 2001) [ISBN 9781860646638] introduces the main tenets of mercantilism, as does Gilpin, Robert The political economy of international relations. (Princeton: Princeton University Press, 1987) [ISBN 9780691077321] pp.72 80. Further useful texts on this topic are Ravenhill (2010) Chapter 2 and Chapters 2 and 8 of Irwin, Douglas A. Against the tide: an intellectual history of free trade. (Princeton: Princeton University Press, 1996) [ISBN 9780691058962]. To answer this question, candidates need to explain both the essence of the mercantilist tradition and the continued relevance and appeal of mercantilist ideas in the contemporary context. A good way to start would be to introduce the key tenets of mercantilism. A brief review of what makes mercantilism a distinctive tradition of international political economy would suffice. This is not the place to go into much detail about how mercantilism changed over time, instead candidates should focus on some core insights of mercantilism that have stayed constant over centuries. Thus, candidates should introduce the mercantilist understanding of power and wealth, with reference to the idea of global wealth as a fixed sum and global economic competition as a zero sum game, the need for states to intervene in economic affairs to maximise their economic gain, and the importance of power for the acquisition of wealth. Based on this, candidates should then discuss why it is that mercantilism still appeals to contemporary foreign economic policy, despite the resounding success of liberal economic thinking since the 19th century. This could involve a discussion of the use of protectionism as part of developmental strategies, but also the need for politicians to appeal 5

IR3026 International political economy to domestic interest groups that may prefer mercantilist-style protection against increased international competition. Question 3 How convincing are liberal claims that the global economy is a positive-sum game? Reading for the question Chapter 3 of the subject guide provides background on the liberal tradition. Ravenhill (2010) Chapter 2 puts liberalism in the context of IPE theory more generally, while Wyatt-Walter, Andrew Adam Smith and the Liberal Tradition in International Relations, Review of International Studies 22(1) 1996, pp.5 28 considers Adam Smith s important role in formulating core liberal beliefs about the global economy and the international system. Other relevant texts include Keohane, Robert O. International Liberalism Reconsidered in J. Dunn (ed.) The economic limits of politics. (Cambridge: Cambridge University Press, 1989) [ISBN 9780521421515], Richardson, Neil R. International Trade as a Force for Peace in Charles W. Kegley Jr. (ed.) Controversies in international relations theory: realism and the neoliberal challenge. (New York: St. Martin s Press, 1995) [ISBN 0312096534] pp.281 94 and Irwin (1996). This question is about a general argument made by liberal thinkers, from Adam Smith to David Ricardo and contemporary liberals, about the nature of global economic interaction, and by implication about the consequences of this for international relations. It is important, therefore, that candidates outline both the general liberal doctrine and the specific claim made with regard to the positive-sum nature of the global economy. Candidates should first explain the reasoning behind this liberal argument before going on to consider whether it is convincing or not. In assessing the validity of the liberal argument, candidates may examine the logic behind the claim and discuss historical cases that shed light on it. A good answer would try to contrast liberal views with those of the mercantilist tradition, which put forward a distinctive view of the global economy as a zero-sum game. 6 Question 4 To what extent does the developmental success of emerging economies contradict the predictions of dependency theory? Reading for the question Chapter 4 of the subject guide provides the main foundation for this answer. Other relevant reading includes Ravenhill (2010) Chapter 2, Brewer, Anthony Marxist theories of imperialism: a critical survey. (London: Routledge, 1990) second edition [ISBN 9780415044691], Wallerstein, Immanuel The politics of the world-economy: the states, the movements, and the civilizations. (Cambridge: Cambridge University Press, 1984) [ISBN 9780521277600] and Seers, Dudley (ed.) Dependency theory: a critical reassessment. (London: Pinter, 1981) [ISBN 9780903804844]. This question requires candidates to relate dependency theory to the economic success of the emerging economies and use the empirical evidence from the latter to examine the predictive power of the former.

Candidates may wish to start with a brief description of dependency theory and its core predictions regarding the possibility of rapid economic growth within a global capitalist system. The difficulty here is that the so-called dependency school is in fact composed of different theories of dependence. In discussing the concept of dependency, therefore, candidates should try to focus on the key tenets of dependency thinking. A good answer would also try to pay attention to the historical context in which dependency thinking arose (i.e. the post-second World War era and the specific conditions of Latin America) and reflect on the diversity of approaches that are contained within it. In the next step, candidates need to briefly describe the developmental success of emerging economies. China, India and Brazil are usually referred to as emerging economies today, but the newly industrialising countries (NICs) of East Asia could also be looked at in this context. Candidates need to assess whether the particular developmental strategies of these countries run counter to what dependency theory predicts about the static state of economic dependency that poorer countries are supposed to be locked into. Question 5 How important was US hegemony to the successful creation and evolution of the General Agreement on Tariffs and Trade s (GATT) international trading order? Reading for the question Hegemonic stability theory is covered in Chapter 2 of the subject guide. Gilpin (2001) pp.93 102 gives a succinct overview of the role of hegemonic leadership in international cooperation. Other useful overviews of hegemonic theory and theories of international cooperation can be found in Snidel, Duncan. The limits of hegemonic stability theory International Organization 39(4) 1985, pp.579 614, and Hasenclever, Andreas, Peter Mayer and Volker Rittburger. Theories of international regimes. (Cambridge: Cambridge University Press, 1997) Chapter 4. The creation and evolution of the GATT trading order is covered in Chapter 5 of the subject guide. Other useful texts include Chapter 5 in Ravenhill (2010), Bhagwati, Jagdish Protectionism. (Cambridge, MA: MIT Press, 1988) [ISBN 9780262521505], Ruggie, John Gerard International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order in Stephen D. Krasner, (ed.) International regimes. (Ithaca, NY: Cornell University Press, 1983) [ISBN 9780801492501], Hoekman, Bernard M. and Michel M. Kostecki The political economy of the world trading system: the WTO and beyond. (Oxford: Oxford University Press, 2009) third edition [ISBN 9780199553778] and Gilpin (2001) Chapter 8. To answer this question, candidates need to show an understanding of how the GATT was created and how it evolved in its first few decades, but also the role that the USA played as a hegemonic leader in the post-1945 era. A good way to start the answer would be to chart the emergence and evolution of the GATT from the late 1940s onwards, focusing on the main features of the trading order and how it gradually came to be the main platform for trade liberalisation. Based on this historical overview, candidates may then focus more specifically on the role that the USA played as a hegemonic leader. This role needs to be examined, in terms of how the USA led the world in creating and developing the GATT, and what 7

IR3026 International political economy instruments of hegemonic leadership it used to achieve this. The answer thus needs to draw on insights from hegemonic stability theory (HST), and a good answer would make explicit use of this theory to assess the importance of the US role in the creation and evolution of the GATT. It is important to give a sense of how important the US role was, compared to other influential factors, and a good answer would spell out a number of alternative or competing explanations for the success of the GATT. Question 6 How successfully did the international community manage the 1997 Asian financial crisis? Reading for the question Chapter 6 of the subject guide provides an overview of the international financial system, the IMF and the 1997 Asian financial crisis. The best overview of the nature and causes of financial crises in general can be found in Eichengreen, Barry J. Financial crises: and what to do about them. (Oxford: Oxford University Press, 2002) [ISBN 9780199257447] and Gilpin, Robert The challenge of global capitalism: the world economy in the 21st century. (Princeton: Princeton University Press, 2000) [ISBN 9780691092799] Chapters 4 and 5. Eichengreen, Barry J. Globalizing capital: a history of the international monetary system. (Princeton: Princeton University Press, 1996) [ISBN 9780691002453] provides a general history of international efforts to create a stable international financial system. Discussions of the IMF s role in dealing with financial crises can be found in Gilpin, Robert Global political economy: understanding the international economic order. (Princeton: Princeton University Press, 2001) [ISBN 9788125023067] Chapter 9, Stiglitz, Joseph E. Globalization and its discontents. (London: Allen Lane, 2002) [ISBN 9780393324396] and Woods, Ngaire Understanding Pathways Through Financial Crises and the Impact of the IMF: an Introduction, Global Governance 12(4) 2006, pp.373 93. Candidates need to demonstrate a basic knowledge of the international financial order and its role in preventing financial crises or dealing with them once they have broken out. You need to be able to discuss the Asian financial crisis of the late 1990s in some detail, giving sufficient historical background to the causes and consequences of the crisis. You will then need to discuss how the international community, through the IMF as the key international institution responsible for financial management, responded to the crisis. Based on this account, you should assess the effectiveness of the management of the financial crisis. This requires some knowledge about what the underlying dilemmas are that the international community faces in such cases, particularly with regard to the threat of international contagion and moral hazard. It also requires some understanding of the tools for crisis management at its disposal, and which countries are most influential in terms of decision-making and funding of IMF activities. Given that there is a lively debate in the literature on how well the international community and the IMF have coped in the past in such circumstances, a good answer would indicate the range of opinions held in this debate. 8

Question 7 Development aid is nothing but a form of neo-imperialism. Discuss. Reading for the question Chapter 7 of the subject guide gives an overview of economic development related topics. Background reading on development and aid can be found in Ravenhill (2010) Chapter 13, and Gilpin (2001) Chapter 12. Baldwin, David A. Economic statecraft. (Princeton: Princeton University Press, 1985) [ISBN 9780691101750] Chapter 10 introduces the politics of developmental aid, while Collier, P. The bottom billion: why the poorest countries are failing and what can be done about it. (Oxford: Oxford University Press, 2008) [ISBN 9780195374636] and Riddell (2008) discuss the role of economic aid as part of broader development strategies. Some of the readings listed under Chapter 4 of the subject guide on dependency theory may also be helpful in addressing the question of aid as a form of neo-imperialism, e.g. Seers (1981). To get started on this answer, candidates may want to first describe the use of development aid in the global fight against poverty before discussing the political controversy that surrounds it. Aid is often viewed as exploitative and an instrument of neo-imperialism because of the conditions that are attached to it. Candidates should discuss the growing use of conditionality in bilateral and multilateral aid (i.e. by industrialised countries and by multilateral aid agencies such as the World Bank). Some of the most critical views of development aid can be found in the writings of dependency theorists, and a good answer would try to frame the discussion with the help of these theoretical perspectives. In any case, candidates need to consider arguments for and against the statement implied in the question. Although you may end up making an argument for or against the statement, you need to elaborate the rationales behind both sides of the argument. A strong answer would go one step further and distinguish between different types of developing countries: for example, a large and populous country such as India is far less likely to suffer dependency from receiving aid flows than a small and relatively weak country such as Botswana. Question 8 Multinational corporations rival, and in some cases even surpass, the power of states. Discuss. Reading for the question Multinational corporations and their relationship with states are covered in Chapter 8 of the subject guide. Ravenhill (2010) Chapter 11 and Gilpin (2001) Chapter 11, provide a general background to this topic, as does Hirst and Thompson (2009) Chapter 3. Texts that address the question of corporate power versus state power include Graham, Edward M. Fighting the wrong enemy: antiglobal activists and multinational enterprises. (Washington: Institute for International Economics, 2000) [ISBN 9780881322729], Hertz, Noreena The silent takeover: global capitalism and the death of democracy. (London: Heinemann, 2001) [ISBN 9780060559731], Hughes, O.E. and D. O Neill Business, government and globalization. (Basingstoke: Palgrave Macmillan, 2008) [ISBN 9780333693209], May, C. (ed.) Global corporate power. (Boulder: Lynne Rienner, 2006) [ISBN 9788130904399] and Strange, 9

IR3026 International political economy Susan The retreat of the state: the diffusion of power in the world economy. (Cambridge: Cambridge University Press, 1996) [ISBN 9780521564403], among others. The question refers to the widespread perception that global firms have become more powerful in the international political economy and that a power shift from states to global firms has occurred. Globalisation is seen by some to have produced this result. To answer the question, candidates should first describe the growth of multinational corporations (MNCs), define what they are and give a sense of their size and economic clout. This may involve some discussion of globalisation as the background condition for the growth of MNCs, but the focus should be on MNCs themselves. Following this, candidates would need to consider the extent to which MNC power may be surpassing the power of nation-states. This can be seen in situations where MNCs seek out favourable investment locations and thus set off a competition between different governments for their investment. Such competition may lead to a regulatory race to the bottom, which limits the ability of states to set domestic policy objectives (e.g. on taxation, environmental protection) independently of the wishes of MNCs. Candidates should also consider counter-arguments that suggest that states have retained sufficient sovereign powers and are able to control the operations of MNCs and extract concessions from them in bilateral bargaining. A strong answer would distinguish between different types of states and different types of firm state bargaining situations, which may produce different results in terms of the erosion of state sovereignty. Thus, the United States or Japan or China are in a much stronger position vis-à-vis MNCs than small developing countries. 10 Question 9 Does economic globalisation hinder or help global environmental protection? Chapter 9 of the subject guide introduces global environmental politics, as does Chapter 14 of Ravenhill (2010). A particularly useful text on globalisation and the environment is Clapp, J. and P. Dauvergne Paths to a green world: the political economy of the global environment. (Cambridge, MA: MIT Press, 2005) [ISBN 9780262532716] Chapter 2 (but also Chapters 5, 6, and 7). Other reading on this question includes Newell, P. The political economy of Global Environmental Governance, Review of International Studies 34(3) 2008, pp.507 29 and O Neill, K. The environment and international relations. (Cambridge: Cambridge University Press, 2009) [ISBN 9780521603126]. To answer this question, candidates need to have a general understanding of global environmental issues and how they relate to developments in the international political economy. As always, you should avoid the temptation to just rehearse general arguments about the rise of global environmental problems and how the international community has responded to them. Instead, the answer should focus on how globalisation, and specifically global economic integration in the areas of trade, finance and production, affects global environmental protection efforts. Thus, candidates should consider both how globalisation worsens environmental conditions and makes protection of the environment more difficult, and how greater economic integration might further the interests of environmental protection. This is naturally a wide field, and candidates

can choose a particular focus on certain aspects of globalisation, for example the role that trade liberalisation and economic competition play, or the role of internationally mobile companies and industrial flight from high-regulation areas. Candidates may also focus on particular environmental problems that shed useful light on this question (e.g. global warming). Question 10 What is holding back deeper regional integration in certain parts of the world? Discuss with reference to either Asia or Latin America. Reading for the question Chapter 10 of the subject guide deals with regionalism. Ravenhill (2010) and Best, Edward and Thomas Christiansen Regionalism in International Affairs in J. Baylis, S. Smith and P. Owens (eds) The globalization of world politics: an introduction to international relations. (Oxford: Oxford University Press, 2011) [ISBN 9780199569090] offer good background information on regionalism. Gilpin (2000) Chapters 7 and 9 discusses European and Asian regionalism, while Gilpin (2001) Chapter 13 and Hurrell, Andrew J. Explaining the Resurgence of Regionalism in World Politics, Review of International Studies 21(4) 1995, pp.331 58 give an overview of different theoretical explanations of regionalism. Breslin, Shaun, Christopher W. Hughes, Nicola Phillips and Ben Rosamond (eds) New regionalism in the global political economy. (London: Routledge, 2002) [ISBN 9780415277679], Phillips, Nicola The southern cone model: the political economy of regional capitalist development in Latin America. (London: Routledge, 2004) [ISBN 9780415340885] and Fawcett, Louise and Andrew J. Hurrell Regionalism in world politics: regional organization and international order. (New York: Oxford University Press, 1995) [ISBN 9780198280675] offer useful background on different regional integration projects. To answer this question, candidates need to have an understanding of regional integration in general and the specific context of regionalism in a particular region, either Asia or Latin America. A good start would be to outline the main factors that explain why some regions, such as Europe, have seen high levels of integration. The concepts of regionalism and regional integration should be introduced and discussed, particularly with regard to the factors that drive it. This merely serves as a starting point for the main discussion of the case of either Asia or Latin America, where integration levels are much lower than in Europe. Candidates need to discuss the specific historical context within which these regional integration projects (e.g. Mercosur, ASEAN) are set, and the political and economic conditions that have held them back. A good answer would use a comparative perspective to draw on the European experience to identify some of the helpful conditions that are not present in other regions. Question 11 Does the rise of China pose a threat to the stability of the international economic system? The question requires candidates to show an understanding of the development of the international political economy (IPE) more generally, IPE theory more generally and apply insights from a range of IPE topics to the question of the rise of China. Chapter 1 of the subject guide introduces 11

IR3026 International political economy 12 globalisation as a background condition of the global political economy, while Chapters 2 4 cover the three main IPE theories. Of particular use in this context are the sections on hegemonic stability theory in Chapter 2 and international regimes in Chapter 3. Candidates also need to use general knowledge about current trends gained from regular reading of relevant magazines and newspapers such as The Economist, Business Week or the Financial Times. This question requires candidates to apply insights from IPE theory to a topical question, in this case the rise of China and the impact on the stability of the global economy. To answer this question, candidates need to show an awareness of current trends in the global economy and apply a range of theoretical arguments from the main theories of IPE about what ensures stability in the global economy. A good way to start the answer would be to identify two or three theoretical propositions that are of relevance to the rise of China and other emerging economies. There are several such propositions that can be discussed, and candidates should feel free to pick those that they consider to be most relevant. One such proposition is the idea that the global economy is a zero-sum game, in which countries gain or lose economic dominance as a consequence of their differing growth pattern. As mercantilists would argue, rising economic powers challenge existing ones, and the shift of economic strength from one to another power may be the source of international conflict. By contrast, liberals point to the mutual interest that all major economies have in the growth of the global economy overall, as they are primarily seeking to maximise absolute gains (in a positive sum game). Furthermore, existing international regimes ensure continued stability despite global economic power shifts. The rise of China thus offers a critical test for the validity of these two opposing perspectives. A strong answer would actively engage different IPE theories to structure the discussion rather than focus exclusively on the empirical case of emerging economies today. Question 12 Critically assess the power of non-governmental organizations (NGOs) in the global economy. Discuss with reference to either international trade or international finance. Reading for the question There is no separate chapter in the subject guide that deals solely with NGOs, but several chapters contain a discussion of their role in the international political economy. Much of the literature on globalisation will be of relevance here (see Chapter 1 of the subject guide), and especially Scholte (2005), Held, David, Anthony McGrew, David Goldblatt and Jonathan Perraton Global transformations: politics, economics and culture. (Cambridge: Polity, 1999) [ISBN 9780804736275], Esty, Daniel C. The World Trade Organization s legitimacy crisis, World Trade Review 1(1) 2002, pp.7 22, Graham (2000) and Wapner, Paul Environmental activism and world civic politics. (Albany: State University of New York Press, 1996) [ISBN 9780791427903]. The answer requires a discussion of the rise of a specific category of nonstate actors, namely non-governmental organisations. It asks the candidate to assess the power that these actors have in the global economy, with reference to one particular policy area (trade or finance).

To answer this question, therefore, candidates will need to discuss, first of all, the growing role of NGOs in global economic affairs in general terms, identifying what gives rise to their specific form of power and influence, before moving on to assess their power in a specific issue area. A good answer would therefore frame the answer in the context of the debate of how globalisation has changed the nature of power in the global economy, and specifically whether social actors are gaining in influence. In answering the question, one way or the other, candidates should provide empirical illustration of how NGOs have brought about change in specific instances of global trade or financial policy-making. 13

IR3026 International political economy Examiners commentaries 2013 IR3026 International political economy Zone B 14 Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2012 13. The format and structure of the examination may change in future years, and any such changes will be publicised on the virtual learning environment (VLE). Information about the subject guide and the Essential reading references Unless otherwise stated, all cross-references will be to the latest version of the subject guide (2011). You should always attempt to use the most recent edition of any Essential reading textbook, even if the commentary and/or online reading list and/or subject guide refers to an earlier edition. If different editions of Essential reading are listed, please check the VLE for reading supplements if none are available, please use the contents list and index of the new edition to find the relevant section. Comments on specific questions Candidates should answer FOUR of the following TWELVE questions. All questions carry equal marks. Question 1 Does globalisation reduce global poverty? Chapter 1 of the subject guide provides an introduction to globalisation as a concept and in historical perspective. Other useful discussions of globalisation can be found in Gilpin, Robert Global political economy: understanding the international economic order. (Princeton: Princeton University Press, 2001) [ISBN 9788125023067] Chapters 1 and 2, Gilpin, Robert The challenge of global capitalism: the world economy in the 21st century. (Princeton: Princeton University Press, 2000) [ISBN 9780691092799] Chapter 10, Hirst, Paul, and Grahame Thompson The Future of Globalization, Cooperation and Conflict 37(3) 2002, pp.247 65, and Scholte, Jan Aart Globalization: a critical introduction. (Basingstoke: Macmillan, 2005) second edition [ISBN 9780312236328]. Chapter 12 of Ravenhill, John (ed.) Global political economy. (Oxford: Oxford University Press, 2010) third edition [ISBN 9780199570812] addresses the question of globalisation and poverty, among others, while Chapter 13 discusses the political economy of development policy and poverty alleviation. This question requires candidates to consider the impact that globalisation has had on the global level of poverty, especially in the developing world. A good way to start the answer would be to define the concept of globalisation. In doing so, candidates should remember that there

are different dimensions of globalisation, and that not all authors agree on how to define the concept. Furthermore, different views exist in the literature on when globalisation started. The most widespread understanding of globalisation suggests that contemporary globalisation took off in the 1970s, and candidates should indeed focus on this period. The main focus of the answer should be on the causal link between globalisation and global poverty. This entails a discussion of how globalisation has affected the economic prospects of developing countries, and whether economic growth in the developing world has helped reduce poverty levels. Candidates should discuss the different economic fortunes of developing countries over the last 40 years. Some parts of the developing world have seen only modest levels of global integration and growth (e.g. sub-saharan Africa) while others have both integrated strongly into the global economy and experienced high levels of growth (e.g. emerging economies of Asia). China in particular has emerged as a rapidly growing economy that has reduced poverty levels considerably. A good answer would not only outline the different growth and poverty paths worldwide but would also examine the extent to which global economic integration is the main factor that explains the variation in poverty alleviation that can be observed. In answering this question, candidates must resist the temptation merely to rehearse the globalisation debate. You need to focus on the specific question of inequality. Question 2 What explains mercantilism s continuing appeal in contemporary foreign economic policy? Chapter 2 of the subject guide offers an introduction to the mercantilist tradition. Economides, Spyros and Peter Wilson The economic factor in international relations: a brief introduction. (London: I.B. Tauris, 2001) [ISBN 9781860646638] introduces the main tenets of mercantilism, as does Gilpin, Robert The political economy of international relations. (Princeton: Princeton University Press, 1987) [ISBN 9780691077321] pp.72 80. Further useful texts on this topic are Chapter 2 of Ravenhill (2010) and Chapters 2 and 8 of Irwin, Douglas A. Against the tide: an intellectual history of free trade. (Princeton: Princeton University Press, 1996) [ISBN 9780691058962]. To answer this question, candidates need to explain both the essence of the mercantilist tradition and the continued relevance and appeal of mercantilist ideas in the contemporary context. A good way to start would be to introduce the key tenets of mercantilism. A brief review of what makes mercantilism a distinctive tradition of international political economy would suffice. This is not the place to go into much detail about how mercantilism changed over time, instead candidates should focus on some core insights of mercantilism that have stayed constant over centuries. Thus, candidates should introduce the mercantilist understanding of power and wealth, with reference to the idea of global wealth as a fixed sum and global economic competition as a zero-sum game, the need for states to intervene in economic affairs to maximise their economic gain, and the importance of power for the acquisition of wealth. Based on this, candidates should then discuss why it is that mercantilism still appeals to contemporary foreign economic policy, despite the resounding success of liberal economic thinking since the 19th 15

IR3026 International political economy 16 century. This could involve a discussion of the use of protectionism as part of developmental strategies, but also the need for politicians to appeal to domestic interest groups that may prefer mercantilist-style protection against increased international competition. Question 3 How convincing are liberal claims that economic interdependence promotes international cooperation? Chapter 3 of the subject guide provides background on the liberal tradition. Chapter 2 of Ravenhill (2010) puts liberalism in the context of IPE theory more generally, while Wyatt-Walter, Andrew Adam Smith and the Liberal Tradition in International Relations, Review of International Studies 22(1) 1996, pp.5 28 considers Adam Smith s important role in formulating core liberal beliefs about the global economy and international cooperation. Other relevant texts include Keohane, Robert O. International Liberalism Reconsidered in J. Dunn (ed.) The economic limits of politics. (Cambridge: Cambridge University Press, 1989) [ISBN 9780521421515], Richardson, Neil R. International Trade as a Force for Peace in Charles W. Kegley Jr. (ed.) Controversies in international relations theory: realism and the neoliberal challenge. (New York: St. Martin s Press, 1995) [ISBN 0312096534] pp.281 94 and Irwin (1996). This question is about a general argument made by liberal thinkers, from Adam Smith to David Ricardo and contemporary liberals, about the nature of global economic interaction and how economic interdependence promotes international cooperation. It is important, therefore, that candidates outline both the general liberal doctrine and the specific claim made with regard to the positive effect that interdependence has on inter-state relations and the resolution of conflicts. Candidates should first explain the reasoning behind this liberal argument before going on to consider whether it is convincing or not. In assessing the validity of the interdependence argument, candidates may examine the logic behind the claim and discuss historical cases that shed light on it. A good answer would try to contrast liberal views with those of the mercantilist tradition, which put forward a more pessimistic view of global economic integration and interdependence leading to more conflict and potentially war. Question 4 To what extent does the developmental success of emerging economies contradict the predictions of dependency theory? Chapter 4 of the subject guide provides the main foundation for this answer. Other relevant reading includes Ravenhill (2010) Chapter 2, Brewer, Anthony Marxist theories of imperialism: a critical survey. (London: Routledge, 1990) second edition [ISBN 9780415044691], Wallerstein, Immanuel The politics of the world-economy: the states, the movements, and the civilizations. (Cambridge: Cambridge University Press, 1984) [ISBN 9780521277600] Chapter 3 and Seers, Dudley (ed.) Dependency theory: a critical reassessment. (London: Pinter, 1981) [ISBN 9780903804844].

This question requires candidates to relate dependency theory to the economic success of the emerging economies and use the empirical evidence from the latter to examine the predictive power of the former. Candidates may wish to start with a brief description of dependency theory and its core predictions regarding the possibility of rapid economic growth within a global capitalist system. The difficulty here is that the so-called dependency school is in fact composed of different theories of dependence. In discussing the concept of dependency, therefore, candidates should try to focus on the key tenets of dependency thinking. A good answer would also try to pay attention to the historical context in which dependency thinking arose (i.e. the post-second World War era and the specific conditions of Latin America) and reflect on the diversity of approaches that are contained within it. In the next step, candidates need to briefly describe the developmental success of emerging economies. China, India and Brazil are usually referred to as emerging economies today, but the newly industrialising countries (NICs) of East Asia could also be looked at in this context. Candidates need to assess whether the particular developmental strategies of these countries run counter to what dependency theory predicts about the static state of economic dependency that poorer countries are supposed to be locked into. Question 5 To what extent does the theory of international regimes explain the stability and expansion of the General Agreement on Tariffs and Trade s (GATT) international trading order? Regime theory is covered in Chapter 3 of the subject guide. Krasner, Stephen D. (ed.) International regimes. (Ithaca, NY: Cornell University Press, 1983) [ISBN 9780801492501] is a collection of classic essays on regime theory, and a good overview of the theory can be found in Hasenclever, Andreas, Peter Mayer and Volker Rittburger Theories of international regimes. (Cambridge: Cambridge University Press, 1997) Chapters 2 and 3 [ISBN 9780521598491]. This is not on the reading lists but is worth a look for additional background. The creation and evolution of the GATT trading order is covered in Chapter 5 of the subject guide. Other useful texts include Chapter 5 in Ravenhill (2010), Bhagwati, Jagdish Protectionism. (Cambridge, MA: MIT Press, 1988) [ISBN 9780262521505], Ruggie, John Gerard International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order in Stephen D. Krasner, (ed.) International regimes. (Ithaca, NY: Cornell University Press, 1993) [ISBN 9780801492501], Hoekman, Bernard M. and Michel M. Kostecki The political economy of the world trading system: the WTO and beyond. (Oxford: Oxford University Press, 2009) third edition [ISBN 9780199553778] and Gilpin (2001) Chapter 8. To answer this question, candidates need to show an understanding of how the GATT was created and how it expanded in its first few decades, but also how the nature of the agreement as an international regime helped to make the GATT so stable and successful. A good way to start the answer would be to chart the emergence and evolution of the GATT from 17

IR3026 International political economy the late 1940s onwards, focusing on the main features of the trading order and how it gradually came to be accepted as the main platform for trade liberalisation. Based on this historical overview, candidates may then focus more specifically on how the theory of international regimes can account for the success of the GATT. The answer thus needs to draw on insights from regime theory, and a good answer would also compare the relative importance of regime design with other explanatory factors, such as US power and leadership. Question 6 How successfully did the international community manage the 1997 Asian financial crisis? Chapter 6 provides an overview of the international financial system, the IMF and the 1997 Asian financial crisis. The best overview of the nature and causes of financial crises in general can be found in Eichengreen, Barry J. Financial crises: and what to do about them. (Oxford: Oxford University Press, 2002) [ISBN 9780199257447] and Gilpin (2000), Chapters 4 and 5. Eichengreen, Barry J. Globalizing capital: a history of the international monetary system. (Princeton: Princeton University Press, 1996) [ISBN 9780691002453] provides a general history of international efforts to create a stable international financial system. Discussions of the IMF s role in dealing with financial crises can be found in Gilpin (2001) Chapter 9, Stiglitz, Joseph E. Globalization and its discontents. (London: Allen Lane, 2002) [ISBN 9780393324396] and Woods, Ngaire Understanding Pathways Through Financial Crises and the Impact of the IMF: an Introduction, Global Governance 12(4) 2006, pp.373 93. Candidates need to demonstrate a basic knowledge of the international financial order and its role in preventing financial crises or dealing with them once they have broken out. You need to be able to discuss the Asian financial crisis of the late 1990s in some detail, giving sufficient historical background to the causes and consequences of the crisis. You will then need to discuss how the international community, through the IMF as the key international institution responsible for financial management, responded to the crisis. Based on this account, you should assess the effectiveness of the management of the financial crisis. This requires some knowledge about what the underlying dilemmas are that the international community faces in such cases, particularly with regard to the threat of international contagion and moral hazard. It also requires some understanding of the tools for crisis management at its disposal, and which countries are most influential in terms of decision-making and funding of IMF activities. Given that there is a lively debate in the literature on how well the international community and the IMF have coped in the past in such circumstances, a good answer would indicate the range of opinions held in this debate. 18 Question 7 What lessons does the developmental success of the emerging economies hold for other developing countries? Chapter 7 (on economic development) of the subject guide provides the main foundation for this answer.