International Relations 541--- Fall 2011
Politics of the World Economy
Professor Carol Wise
Tuesday 5:00-7:50 pm, SOS-B40
Office VKC 328 ph: 213-740-2138
Office hours: Tuesday 2:00-4:00 pm
Course Objectives:
This is an advanced graduate course on international political economy. Enrollment by students who are not PhD students in the POIR program must be approved in advance by the instructor. This course is designed to introduce advanced students to scholarship on international political economy and to guide students’ own reading and inquiry and to develop critical faculties. We focus on the behavior of markets, states and other institutions, and their interactions. Through a combination of lectures and discussions, the course explores the central theoretical perspectives, debates, and findings in political economy. Coverage does not include every issue and approach, but it addresses many of the core problems and perspectives animating international political economy.
(1) Preparation, Participation and Leading Class Discussions:
All students are expected to have completed the readings before each class, and to be prepared to answer questions on the material when called upon. Each student is assigned to lead discussions twice, once in the first half of the course and once in the second half. Discussion leaders will prepare a verbal presentation and circulate a handout (prior to 2:00 pm on the day of class) that summarizes the main points of the readings and poses questions for discussion. I will ask that at least one student leads the discussion each week. The leading of class discussions will constitute 10% of your final grade, while your class participation in general will count for 10%.
(2) Two Critical Literature Reviews:
Students are to write two critical literature reviews (no more than 10 double-spaced pages each) analyzing the readings assigned in a particular week of your choice. The first one must be submitted by October 11 and the second by November 15. The grades assigned to the two reviews will constitute 40% of the final grade (20% for each review). These reviews will be due by 5:00 pm on the dates designated on the syllabus (i.e. on Oct 11th and Nov. 15th).
(3) Final Exam:
An in-class final exam will be given on Tuesday, Nov. 29, 5:00-7:50 pm in Room SOSB40. The final exam will count toward 40% of your final grade.
Readings:
The following texts have been ordered for this course, and can be purchased at either the USC Bookstore or on Amazon.com:
Cohen, Benjamin J. (2008) International Political Economy: An Intellectual History. Princeton: Princeton University Press.
Frieden, Jeffry, Lake, David, and Broz, J. Lawrence. (2010) International Political Economy: Perspectives on Global Power and Wealth. New York: W.W. Norton & Company, 5th edition.
Frieden, Jeffry, Lake, David, and Schultz, Kenneth. A. (2010) World Politics: Interests, Interactions, Institutions. New York: W.W. Norton & Company.
Gilpin, Robert. (2001) Global Political Economy: Understanding the International Economic Order. Princeton: Princeton University Press.
Keohane, Robert. (2005) After Hegemony: Cooperation and Discord in the World Political Economy. Princeton: Princeton University Press (with new preface by the author).
North, Douglass. (1990) Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.
The remainder of the assigned readings can be accessed on Blackboard or by clicking on the link provided on the syllabus next to a given reading.
Disability Disclaimer
Students requesting academic accommodations based on disability are required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP when adequate documentation is filed. Please be sure the letter is delivered to me (or to TA) as early in the semester as possible. DSP is open Monday-Friday, 8:30-5:00. The office is in Student Union 301 and their phone number is (213) 740-0776.
Week 1---8/23: Introduction and Overview of the Course
THE CONCEPTUAL TERRAIN
Week 2---8/30: The Faceoff between the “American” & “British” Schools
Cohen, Benjamin J. (2008) International Political Economy: An Intellectual History. Princeton: Princeton University Press, pp. 1-94; 142-178.
Week 3---9/6: IPE’s Issue Areas and Themes
Frieden, Jeffry, Lake, David, and Broz, J. Lawrence. (2010) International Political Economy: Perspectives on Global Power and Wealth. New York: W.W. Norton & Company, 5th edition, pp. 1-19.
Frieden, Jeffry, Lake, David, and Schultz, Kenneth. A. (2010) World Politics: Interests, Interactions, Institutions. New York: W.W. Norton & Company, pp. 4-38, 214-294.
Gilpin, Robert. (2001) Global Political Economy: Understanding the International Economic Order. Princeton: Princeton University Press. Read:
Chapter 1: “The New Global Economic Order”
Chapter 2: “The Nature of Political Economy”
Chapter 3: “The Neoclassical Conception of the Economy”
Chapter 4: “The Study of International Political Economy”
Chapter 5: “New Economic Theories”
Chapter 6: “The Political Significance of the New Economic Theories”
Chapter 7: “National Systems of Political Economy”
Week 4---9/13: What is Hegemony? Does it Matter? Some Lessons from History
Frieden, Lake, and Broz, International Political Economy. Read:
Chapter 8: Lake, David, “British and American Hegemony Compared”
Chapter 14: Eichengreen, Barry, “Hegemonic Stability Theories of the International Monetary System”
Ikenberry, John. (2011) Liberal Leviathan: The Origins, Crisis, ad Transformation of the American World Order (chapter 3, “Power and Strategies of Rule”), pp. 79-117.
PDF posted on Blackboard
Kindleberger, Charles. (1986) The World in Depression 1929-1939, chapters 1 14.
PDF posted on Blackboard
Krasner, Stephen. (1976) “State Power and the Structure of International Trade,” World Politics 28 (3): 317-347.
http://zb5lh7ed7a.scholar.serialssolutions.com/?sid=google&auinit=SD&aulast=Krasner&atitle=State+Power+and+the+Structure+of+International+Trade&id=doi:10.2307/2009974
Ruggie, John. (1982) “International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order,” International Organization 36 (2): 195-231.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/dm980238/98p0228e/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf91&0.pdf
Snidal, Duncan. (1985) “The Limits of Hegemonic Stability Theory,” International Organization 39 (4): 579-614.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/dm980252/98p00883/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331a00501c2cd47&0.pdf
Week 5--9/20: Institutions vs. Actors---A Debate?
Cohen, International Political Economy: An Intellectual History, pp. 95-141.
Frieden, Lake, and Schultz, World Politics, pp. 40-74.
Ikenberry, John. (2011) Liberal Leviathan: The Origins, Crisis, ad Transformation of the American World Order (chapter 5, “The Rise of the American System”), pp. 157-219.
PDF posted on Blackboard
North, Douglass. (1990) Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press. Skim all.
Olson, Mancur. (1977) The Logic of Collective Action: Public Goods and the Theory of Groups. Harvard: Harvard University Press. Chapters 1,2,3. PDF posted on Blackboard
TRADE, FINANCE, AND MULTINATIONAL INVESTMENT
Week 6---9/27: Trade I---Domestic/International Variables
Frieden, Lake, and Broz, International Political Economy. Read the following chapters:
Chapter 20: Rogowski, Ronald, “Commerce and Coalitions: How Trade Affects Domestic Political Alignments”
Chapter 21: Alt, James and Gilligan, Michael, “The Political Economy of Trading States: Factor Specificity, Collective Action Problems, and Domestic Political Institutions”
Chapter 24: Bailey, Michael, Goldstein, Judith, and Weingast, Barry, “The Institutional Roots of American Trade Policy”
Gilpin, Global Political Economy, Read:
Chapter 8: “The Trading System”
Grossman, Gene and Helpman, Elhanan. (1994) “Protection for Sale,” American Economic Review 84 (4): 833-850.
http://zb5lh7ed7a.scholar.serialssolutions.com/?sid=google&auinit=GM&aulast=Grossman&atitle=Protection+for+Sale&title=American+economic+review&volume=84&issue=4&date=1994&spage=833&issn=0002-8282
Milner, Helen and Yoffie, David. (1989) “Between Free Trade and Protectionism: Strategic Trade Policy and a Theory of Corporate Trade Demands,” International Organization 43(2): 239-271.
http://zb5lh7ed7a.scholar.serialssolutions.com/?sid=google&auinit=HV&aulast=Milner&atitle=Between+Free+Trade+and+Protectionism:+Strategic+Trade+Policy+and+a+Theory+of+Corporate+Trade+Demands&title=International+organization&volume=43&issue=2&date=1989&spage=239&issn=0020-8183
Rodrik, Dani. (1995) “The Political Economy of Trade Policy.” In Handbook of International Economics, vol. 3, Grossman, Gene and Rogoff, Kenneth, eds. Amsterdam: North-Holland. PDF posted on Blackboard
Week 7---10/4: Trade II---Regional Integration and Convergence Theory
Frieden, Lake and Broz, International Political Economy, Read:
Chapter 28: Sally, Razeen, “The Political Economy of Trade Policy Reform: Lessons from the Developing Countries”
Gilpin, Global Political Economy. Read:
Chapter 13: “The Political Economy Regional Integration”
Haggard, Stephan. (1997) “The Political Economy of Regionalism in
Asia and the Americas.” In Edward Mansfield and Helen Milner (eds.), The Political Economy of Regionalism. New York: Columbia University Press. PDF posted on Blackboard
Lawrence, Robert. (1999) "Regionalism, Multilateralism, and Deeper Integration" In Rodriguez, Miguel, Low, Patrick and Kotschwar, Barbara, eds., Trade Rules in the Making. Washington, DC: Brookings Institution. PDF posted on Blackboard
Mattli, Walter. (1999) The Logic of Regional Integration. Europe and Beyond. Chapters 1, 2, 3, and 6. PDF posted on Blackboard
Studer, Isabel and Wise, Carol (eds.). (2007) Requiem or Revival? The Promise of North American Integration. Washington, DC: Brookings Institution Press. Read:
Chapter 1: Wise, Carol, “No Turning Back: Trade Integration and the New Development Mandate”
Chapter 2: Wise, Carol, “Unfulfilled Promise: Economic Convergence under NAFTA”
(the two chapters are posted together as a PDF on Blackboard)
Week 8---10/11: Monetary and Financial Systems I---The Bretton Woods Era
FIRST CRITICAL LITERATURE REVIEW DUE
Frieden, Lake, and Broz, International Political Economy. Read:
Chapter 13: Broz, Lawrence, “The Domestic Politics of the International Monetary Order: The Gold Standard”
Frieden, Lake, and Schultz, World Politics, pp. 296-329.
Frieden, Jeffry. (1991) “Invested Interests: The Politics of National Economic Policies in a World of Global Finance,” International Organization 45 (4): 425-51.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/dm980276/98p0059u/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf2c&0.pdf
Gilpin, Global Political Economy. Read:
Chapter 9: “The International Monetary System”
Leblang, David and Bernhard, William. (2000) “The Politics of Speculative Attacks in Industrial Democracies,” International Organization 54 (2): 291-324.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/di012159/01p01054/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf2c&0.pdf
Week 9---10/18: Monetary and Financial Systems II---Post-Bretton Woods
Andrews, David M. (1994) "Capital Mobility and State Autonomy: Toward a Structural Theory of International Monetary Relations," International Studies Quarterly 38 (2): 193-218.
http://www.jstor.org/cgi-bin/jstor/printpage/00208833/di012097/01p0079v/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf2c&0.pdf
Corden, Max, “Exchange Rate Regimes and Policies: An Overview,” in Wise, Carol and Roett, Riordan. (eds.) (2000) Exchange Rate Politics in Latin America. Washington DC: Brookings Institution. PDF posted on Blackboard
Frieden, Lake and Broz, International Political Economy, Read:
Chapter 16: Frieden, Jeffry, “Globalization and Exchange Rate Policy”
Chapter 18: Schmukler, Sergio, “Financial Globalization: Pain and Gain for Developing Countries”
Gilpin, Global Political Economy. Read:
Chapter 10: “The International Financial System”
Schamis, Hector and Way, C. (2003) “Political Cycles and Exchange Rate-Based Stabilization,” World Politics 56 (3): 43-78.
http://muse.jhu.edu/journals/world_politics/v056/56.1schamis.pdf
Week 10---10/25: Multinational Corporations & International Investment
Frieden, Lake, and Broz, International Political Economy. Read:
Chapter 9: Caves, Richard E., “The Multinational Enterprise as an Economic Organization”
Chapter 10: Tarzi, Shah M. “Third World Governments and Multinational Corporations: Dynamics of Host’s Bargaining Power”
Gilpin, Global Political Economy. Read:
Chapter 11: “The State and the Multinationals”
Jensen, Nathan M. (2003) “Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment,” International Organization 57 (3): 587-616.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/sp060003/06x0029c/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf91&0.pdf
Li, Quan and Resnick, A. (2003) “Reversal of Fortunes: Democratic Institutions and Foreign Direct Investment Inflows to Developing Countries,” International Organization 57 (1): 175-211.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/sp060001/06x0009i/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf91&0.pdf
IPE & THE “POST-HEGEMONIC” ERA
Week 11---11/1: International Political Economy, Institutions and Cooperation
Fearon, James. (1998) “Bargaining, Enforcement and International Cooperation,” International Organization 52 (2): 269-305.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/di012151/01p0018q/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf91&0.pdf
Goldstein, Judith et al. (2000) “Introduction: Legalization and World Politics,” International Organization 54 (3): 385-400.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/di012160/01p01127/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf91&0.pdf
Ikenberry, John. (2011) Liberal Leviathan: The Origins, Crisis, ad Transformation of the American World Order (chapter 6, “The Great Transformation and the Failure of Illiberal Hegemony“), pp. 221-277.
Keohane, Robert. (2005), After Hegemony: Cooperation and Discord in the World Political Economy, chaps 1-7 & 11.
Koremenos, Barbara et al (2001), “The Rational Design of International Institutions,” International Organization 55(4):761-800.http://www.jstor.org/cgi-bin/jstor/printpage/00208183/sp030004/03x0029c/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf91&0.pdf
Martin, Lisa and Simmons, Beth. (1998) “Theories and Empirical Studies of International Institutions,” International Organization 52 (3): 729-58.
http://www.jstor.org/cgi-bin/jstor/printpage/00208183/di012153/01p0039x/0.pdf?backcontext=page&dowhat=Acrobat&config=jstor&userID=/01cc99331100501c3cf91&0.pdf
Week 12---11/8: Globalization
Frieden, Lake, and Broz, International Political Economy. Read:
Chapter 25: Dollar, David, “Globalization, Poverty, and Inequality since 1980”
Gilpin, Global Political Economy. Read:
Chapter 14: “The Nation-State in the Global Economy”
Chapter 15: “Governing the Global Economy”
Garrett, Geoffrey. (2004) “Globalization's Missing Middle,” Foreign Affairs, November/ December. http://yaleglobal.yale.edu/display.article?id=4812
Milanovic, Branko. (2003). “The Two Faces of Globalization,” World Development 31 (2003): 667-683.
http://zb5lh7ed7a.scholar.serialssolutions.com/?sid=google&auinit=B&aulast=MILANOVIC&atitle=The+Two+Faces+of+Globalization:+Against+Globalization+as+We+Know+It+q&id=doi:10.1016/S0305-750X(03)00002-0
Simmons, Beth and Elkins, Zachary. (2004) “The Globalization of Liberalization: Policy Diffusion in the International Political Economy,” American Political Science Review 98 (1): 171-189.
http://journals.cambridge.org/download.php?file=%2FPSR%2FPSR98_01%2FS0003055404001078a.pdf&code=d6e4c4a62f3d41086cb278dbfe6e39fd
Wolf, Martin. (2005) Why Globalization Works. New Haven: Yale University Press, chapters 1, 2, 7 and 8. PDF posted on Blackboard.
Week 13---11/15: Debt, Financial Crises and the Role of Multilateral Institutions
SECOND CRITICAL LITERATURE REVIEW DUE
Corden, Max. “The World Credit Crisis: Understanding It and What to Do,” World Economy 32 (2009):385-400.
http://www3.interscience.wiley.com.libproxy.usc.edu/cgi-bin/fulltext/122264209/HTMLSTART
MacIntyre, Andrew. (2001) “Institutions and Investors: The Politics of the Economic Crisis in Southeast Asia,” International Organization 55 (1): 81-122.
http://journals.cambridge.org/download.php?file=%2FINO%2FINO55_01%2FS0020818301441257a.pdf&code=69e031aed0060c02a22b52fd9ff5084a
Pastor, Manuel and Wise, Carol. (2009) “Financial Crises, Income Effects, and Social Policy: Argentina and Mexico in Retrospect.” Paper presented at the Center for US-Mexico Studies, U.C. San Diego, May. PDF posted on Blackboard
Rodrik, Dani. (2006) “Goodbye Washington Consensus, Hello Washington Confusion?” Harvard University, mimeo, January.
http://ksghome.harvard.edu/~drodrik/Lessons%20of%20the%201990s%20review%20_JEL_.pdf
Roubini, Nouriel and Stephen Mihm, Crisis Economics (London: Allen Lane, 2010), pp. 86-157, 238-301.
Woods, Ngaire. (2006) The Globalizers: The IMF, the World Bank and their Borrowers. Ithaca, NY: Cornell University Press, Read chapters 1-3, 5 and 7, PDF posted on Blackboard.
Week 14---11/22: Economic Development---China, India and the “Miracle” Phenomenon
Chaudhuri, Shubham and Ravallion, Martin. (2007) “Partially Awakened Giants: Uneven Growth in China and India.” In Winters, Alan and Yusuf, Shahid, eds., Dancing with the Giants: China, India, and the Global Economy. Washington, DC: World Bank, pp. 175-210. PDF posted on Blackboard
Dimaranan, Betina et al. (2007) “Competing with the Giants: Who Wins, Who Loses?” In Winters, Alan and Yusuf, Shahid, eds., Dancing with the Giants: China, India, and the Global Economy. Washington, DC: World Bank, pp. 67-100. PDF posted on Blackboard
Frieden, Lake, and Broz, International Political Economy. Read:
Chapter 26: Acemoglu, Daron, “Root Causes: A Historical Approach to Assessing the Role of Institutions in Economic Development”
Frieden, Lake, and Schultz, World Politics, pp. 330-362.
Keefer, Philip. (2007) “Governance and Economic Growth.” In Winters, Alan and Yusuf, Shahid, eds., Dancing with the Giants: China, India, and the Global Economy. Washington, DC: World Bank, pp. 211-242. PDF posted on Blackboard
Sachs, Jeffrey. (2003) “Institutions Don't Rule: Direct Effects of Geography on Per Capita Income.” NBER Working Paper No. 9490, February.
http://www.nber.org/papers/W9490.pdf
Shankar Jha, Prem. (2010) Crouching Dragon, Hidden Tiger (Berkeley, CA: Soft Skull Press), p. 188-251. PDF posted on Blackboard
Week 15---11/29: Final Exam
SOS B40, 5-7:50 pm
2