European Governance, Global Governance.
Introduction to International Political Economy
Sciences-Po, Paris
Direction des 1ers cycles
2ème année et Programme International
Spring 2005
Provider: Professor Kalypso Nicolaïdis, Oxford University and Vincent Wright Chair, Sciences-Po.
Aims : This course is about some of the greatest risks and challenges facing us in the XXIst century and how European and global economic governance can cope with them. Together we will ask: can an international system which is a product of US hegemony, and more broadly of western hegemony, be made to serve the interests of developing countries? How to govern a world which is multipolar economically and unipolar militarily? Are regionalism and multilateralism contradictory or complementary? Should trade be used as an instrument to change domestic governance arrangements, including for instance human and labor rights? What is the score-sheet of global governance through public-private partnerships? Has globalisation gone too far and how should it be regulated? In what ways is the year 2005 which has been dubbed “the year of development”, likely to make a difference to the proclaimed goal of “making poverty history”? In particular, how can trade be used to combat global poverty? Can state sovereignty survive the era of the internet? How can the WTO, IMF and World Bank be made more democratic? What should we make of the critique of current institutions by “alter-globalization” movements?
The course starts from the realisation that the European Union plays an increasingly crucial role in shaping global governance, both as an actor in its own right (since in this field the 25 member states most often speak with one voice) and as a possible model of integration between states in the rest of the world, be it at the regional or global level. It seeks to assess this role as well as take a critical look at the discourse on the EU model, asking how the EU can contribute to global cooperation without appearing neo-colonial in its proselyting zeal. What should we make of this “EU-topia” projecting its tools and principles of governance beyond its borders?
In disciplinary terms, the course serves as an introduction to international political economy, with a special emphasis on the political economy of the EU and of international trade. It aims to introduce students to the various aspects of the interaction between states, societies, firms and markets and also covers the most recent controversies in the field around the theme of globalization and global governance. Classic IPE question to be addressed across issues include: whose interest is served? Who has power? Who adjusts? The course seeks to integrate readings and discussions on theory and methodology and analysis of contemporary issues in IPE.
Modalités du contrôle final
L'évaluation finale du module est constituée par la note obtenue à un essai rédigé et rendu à la fin du semestre. Chaque étudiant choisira le thème de son essai. Il le soumettra ensuite et au plus tard le 10 mai à son maître de conférence s'il suit une conférence de méthode, au Professeur Nicolaidis s'il suit seulement le cours magistral.
Après validation de son sujet, l'étudiant rédigera en anglais ou en francais un essai de 10 pages dactylographiées et une bibliographie. La présentation sera la suivante : police de caractères : times 12, interligne 1,5 et marge de 2,5 cm. L'étudiant remettra son travail au plus tard le 13 juin.
Readings
Required readings are available in the course packet (sold on the first day of class) or on Professor Nicolaidis’ website. Recommended readings are available in the Sciences-Po library or will be made available on the web. Students are expected to cover all the required readings for each week (circa 40 pages). Students are also expected to keep up during term with the Financial Times, The Economist and with important websites such as:
o Europa (http://europa.eu.int/index-en.htm)
o the OECD website (http: www.oecd.org)
o the WTO website (http: www.wto.org)
o the Trade Observatory ( http://www.wtowatch.org/)
Other useful french sources for basic overviews of issues :, Les Cahiers Francais (Documentation Francaise), Le Ramses (IFRI), L’Etat du Monde (La Decouverte).
Dr Nicolaidis will provide guidance to students who wish to go further through their research. Useful major research journals in the field include: Foreign Affairs, Foreing Policy, International Organization; International Affairs (London); World Politics; The World Economy; International Studies Quarterly; The Journal of World Trade; The Journal of Common Market Studies; The Journal of European Public Policy; American Political Science Review; Review of International Political Economy; Journal of Economic Perspectives; World Development.
Course Outline
PART I: BUILDING BLOCKS 3
Week 1.From the Post cold war to the World Wide Web: Introduction to contemporary International Political Economy 3
Week 2. The Construction of the Post-1945 International Economic Order and American Hegemony 3
Week 3. The EU single market: What are the politics of harmonization vs mutual recognition? 4
Week 4.The Global Trade Regime I: From GATT to WTO 4
Week 5.The Global Trade Regime II: Current controversies, from Cancun to the Doha Round 5
Week 6: The Global Trade Regime III: Is the EU a champion of development? 6
PART II. CURRENT CONTROVERSIES 6
Week 7. Tensions in the World Economic System I: Are Bilateralism, Regionalism, and Multilateralism complementary or contradictory? 6
Week 8.Tensions in the World Economic System II : Social dumping, trade linkages and the taming of the multinational corporation 7
Week 9. Tensions in the Word Economic System III : What are the sources of tensions in transatlantic economic relations? 7
Week 10. The Meaning of Europe as a model I. EU’s External Governance as “soft power”? 8
Week 11. The Meaning of Europe as a model II. European governance,a tool box for global governance? 8
Week 12. Globalization I: The end of state sovereignty? EU vs globalization? 9
Week 13.Globalization II : Global Inequality and the Anti-globalization agenda 9
Week 14. Conclusion: 2005-A Global Governance Agenda for the New Millenium? 10
PART I: BUILDING BLOCKS
Week 1. From the Post cold war to the World Wide Web: Introduction to contemporary International Political Economy
Required readings:
§ Ngaire Woods, ‘International Political Economy in an Age of Globalization,’ in John Bayliss and Steve Smith, The Globalization of World Politics (2001). pp..277-298
Recommended readings:
§ Higgott. ‘Taming Economics, Emboldening International Relations, The Theory and Practice of IPE in an era of Globalisation’ in Lawson, ed, The New Agenda for International Relations.
§ Gilpin, Robert (2001), Global Political Economy: Understanding the International Economic Order. Princeton: Princeton University Press, 2001.Chapter 1
§ Katzenstein, Keohane and Krasner, ‘International Organization and the State of World Politics’, International Organization, Autumn 1998
§ Frieden, Jeffry A. and David A. Lake (eds). International Political Economy: Perspectives on global power and wealth. 4th ed. Boston: Bedford/St.Martin’s. 2000.
Week 2. The Construction of the Post-1945 International Economic Order and American Hegemony: the role of the US vs Europe in the post-war period? Has American economic hegemony out-lasted the collapse of the Bretton Woods system?
Case: The General Agreement on Tariffs and Trade in the Bretton Woods System
Required readings:
§ Keohane, Robert, After Hegemony (1984). Chapter 3
OR:
§ Ruggie, John, “Embedded Liberalism” in Constructing the World Polity. London: Routledge, 1998.
Recommended readings:
§ Strange, Susan, ‘Persistent Myths of Lasting Hegemony’, IO, 1987.
§ Lake, David, 'British an American Hegemony Compared: Lessons for the Current Era of Decline', in Frieden and Lake, eds, International Political Economy.
§ Gilpin, Robert, Global Political Economy, chapter 9.
§ Ikenberry, John, ‘A World Economy Restored: Expert Consensus and the Anglo-American Postwar Settlement’, IO, Winter 1992.
Week 3. The EU single market: What are the politics of harmonization vs mutual recognition?
Case: The European Single Market from the 1960s to the 1990s (and the Bolkenstein directive).
Required readings:
§ For this session students should visit the European Commission website (http://europa.eu.int/) and check out the Directorates Generals for trade, competition policy, social and employment policy, and anything else of interest. Students should also familiarize themselves (to the extent possible!) with the relevant portions of The Treaties Establishing the European Communities available on line.
§ Jacques Delors, Discours sur l’objectif 92 et l’achèvement du marché unique in Le nouveau concert européen, Odile Jacob, 1992
§ Nicolaïdis, Kalypso and Michelle Egan ‘Regional Policy Externality and Market Governance: Why Recognize Foreign Standards?’ w/, in Journal of European Public Policy, August 2001 [read EU part pp5-11].
Recommended readings:
§ Moravcsik, Andrew. The Choice for Europe: Social Purpose and State Power from Messina to Maastricht. London: UCL Press, 1998. Chapter on the Single European Market
§ Nicolaïdis, Kalypso, ‘Mutual Recognition of Regulatory Regimes: Some Lessons and Prospects’, Regulatory Reform and International Market Openness (Paris OECD Publications, 1996). Repr. as part of the Jean Monnet Paper Series, Harvard Law School, 1997. Skip pp. 13-19.
§ Tsoukalis, Loukas. The New European Economy Revisited. Oxford: OUP. 1997 Chapters 2 (The Foundations of European Regionalism), 4 (From Customs Union to the International Market).
§ Nicolaidis, Kalypso "Globalization with Human Faces: Managed Mutual Recognition and the Free Movement of Professionals," in Fiorella, Kostoris, and Padoa Schioppa, eds., The Principle of Mutual Recognition in the European Integration Process, Palgrave, 2004.
§ Mattli, Walter, The Logic of Regional Integration, pp 19-40.
§ Egan, Michelle, Constructing a European Market, OUP, 2001, chapter 1
Week 4. The Global Trade Regime I: From GATT to WTO
Case: The Uruguay Round
Required readings:
§ Trebilcock, Michael, and Robert Howse, The Regulation of International Trade (1999) pp.1- 29.
Recommended readings:
§ Hoekman, Bernard and Michael Kostecki. The Political Economy of the World Trading System: from GATT to WTO. Oxford: OUP. 1999. Chapters on the history of the WTO and future challenges.
§ Drake and Nicolaidis. "Ideas, Interests, and Institutionalization: Trade in Services and the Uruguay Round". International Organization. Winter 1992, Vol. 46, no. 1. pp. 37 – 100.
.
Week 5. The Global Trade Regime II: Current controversies, from Cancun to the Doha Round
Case: The Doha Round
Required readings:
§ For this session Students are advised to go to the WTO website and read current document, including the Sutherland Report, January 2005: www.wto.org ; Visit also http://www.cid.harvard.edu/cidtrade/, the Harvard University website that monitors global trade negotiations.
§ Trade Policy in the Prodi Commission, 1999-2004 [Part I on the Doha Round]
§ Alasdair Young, “The EU and World Trade: The Doha Round and Beyond,” in Cowles, Developments in the European Union, Palgrave 2004, pp.200-220
§ Pascal LAMY, L’Europe en première ligne, Le Seuil 2002 [chapter on launching the Doha Round]
Recommended readings:
§ Howse and Nicolaidis, "Enhancing WTO Legitimacy: Constitutionalization or Global Subsidiarity?" with Robert Howse in Marco Verweij and Tim Josling (eds), Deliberately Democratizing Multilateral Organization, special issue of Governance (2003).
§ Hoekman, Bernard and Richard Newfarmer. “After Cancun: Continuation or Collapse?” World Bank Group Trade Note No. 13, December 17 2003
§ Johnson, Ailish and Dan Ciurak. “From Cancún to Geneva: Were the Optimists or Pessimists right?” in Trade Policy Review 2004. Ottawa: Department of International Trade Canada. 2005.
§ Abbott, Frederick M. "The Doha Declaration on the TRIPS Agreement and Public Health: lighting a dark corner at the WTO", Journal of International Economics. 2002. pp. 469 – 505.
§ Anderson, Kym. Subsidies and Trade Barriers. Copenhagen Consensus Papers 2004 (series of papers on global economic issues commissioned by the Economist). See also “Opponent’s Comments”. Available on line: www.copenhagenconsensus.com
Week 6: The Global Trade Regime III: Is the EU a champion of development?
Case: EU development strategies and aid conditionality from Cotonou to Lome to the enlargement strategy
Required Reading
· Bretherton and Vogler, The European Union as a Global Actor, Routledge, 1999, Chapter on Development
· Othon Anastassakis and Dimitar Bechev, “EU Conditionality in Southeastern Europe,” Oxford University, 2003
· Defraigne, La politique Agricole, IFRI, 2004
Recommended readings:
· AGRICULTURE NEGOTIATIONS: BACKGROUNDER The issues, and where we are now http://www.wto.org/english/tratop_e/agric_e/negs_bkgrnd00_contents_e.htm; OR: http://www.wto.org/french/tratop_f/agric_f/negs_bkgrnd00_contents_f.htm
PART II. CURRENT CONTROVERSIES
Week 7. Tensions in the World Economic System I: Are Bilateralism, Regionalism, and Multilateralism complementary or contradictory?
Case: The North American Free Trade Agreement in contrast to the European Union; Mercosur-EU and ASEAN-EU relations.
Required readings:
§ Fawcett, Louise, and Andrew Hurrell (eds.), Regionalism in World Politics (OUP, 1995), Chapter 2
§ Tovias, Alfred, “Regional Blocks and International Relations: Economic Groupings or Political Hegemons?” in Lawton et al, Strange Power.
Recommended readings:
§ Chambers, Edward J. and Peter H. Smith (eds). NAFTA in the New Millennium. Alberta: The University of Alberta Press and Centre for U.S.-Mexican Studies, University of California. 2002. Introduction: "NAFTA in the New Millennium: Questions and Contexts”
§ Gilpin, Chapter 13 “The Political Economy of Regional Integration”.
§ See the text of NAFTA: http://www.dfait-maeci.gc.ca/nafta-alena/agree-en.asp;
§ Hills, Carla , Jeffery Schott et. al. Free Trade in the Americas: Getting There from Here. Washington: Inter-American Dialogue. 2004. (http://www.thedialogue.org/publications/program_reports/trade/ftaa_1004.pdf)
§ See the FTAA Ministerial text from November 2003: http://www.ftaa-alca.org/Ministerials/Miami/declaration_e.doc and: http://www.dfait-maeci.gc.ca/tna-nac/ftaa1-en.asp
Week 8. Tensions in the World Economic System II : Social dumping, trade linkages and the taming of the multinational corporation
Case: trade and labor, environment, human rights/standards under NAFTA, the EU and the ILO
Required readings:
§ John Ruggie, “Taking Embedded Liberalism Global : The corporate connection” in Taming Globalization: Frontiers of Governance, Held and Koenig-Archilugi, eds, pp.93-129
§ Van Liemt, Gijsbert, ‘International Trade and Workers’ Rights: More than a conditional? (1999).
Recommended readings:
§ See NAFTA side agreements on labour and the environment: http://www.dfait-maeci.gc.ca/nafta-alena/side-en.asp
§ Langille, B. (1997). ‘Eight ways to think about International Labour Standards.’ Journal of World Trade 31, No. 4: pp.27-53.
Week 9. Tensions in the Word Economic System III : What are the sources of tensions in transatlantic economic relations?
Case: US-EU Economic Relations
Required readings:
§ “The Transatlantic Economy in 2020: A Partnership for the Future” [pp1- 4 provided; full text on the website]
§ Putnam, R. "Diplomacy and Domestic Politics: The Logic of Two-level games." International Organization. Vol 42 No. 3, 1988 Reproduced in his book Double Edged Diplomacy.
§ Meunier and Nicolaidis, ‘Who Speaks for Europe? The Delegation of Trade Authority in the European Union,’ Journal of Common Market Studies, vol. 37, No. 3, September 1999