Fall 2005 Thomas
Ilgen
INTERNATIONAL
POLITICAL ECONOMY
The nation-state and the market economy are the principal
forms of political and economic organization in contemporary global
affairs. The intersection of states and
markets constitutes the substance of the field of international political
economy. International political economy
has become of growing importance in the broader field of international politics
as issues of global commerce and finance engage not only economists but also
political leaders and their constituents both at home and abroad. Problems of international trade, investment,
labor, and capital movements shape the lives of citizens in all nations and
their resolution demands not only the insights of formal economic models and
theories but also a thorough engagement with and understanding of domestic
politics and foreign policy-making.
This
course introduces students with little or no economic background to elementary
concepts necessary for an understanding of international commercial and
financial affairs but then focuses primarily on the politics of global economic
management. We treat the evolution of the contemporary market-driven
international monetary and trading systems and the role of global banks and
corporations in those systems. We
examine the uneven fortunes of developing nations in the global economy and
explore contending strategies for managing the relationship with that
economy. We also look at the efforts of
formerly-socialist nations to adopt market reforms and to participate in the
emerging global economy. Throughout the
course, we give special attention to the impact that international economic
developments have on the management of domestic economies.
In
a class that treats current problems, the reading of daily newspapers and
periodical literature is essential for digesting ongoing developments. You
are required to follow international economic news through either a daily
subscription to The New York Times
or by reading the appropriate articles from the newspaper on line at:
nytimes.com. The British daily, The
Financial Times and the British weekly, The Economist, also provide excellent coverage of international
economic news.
Class
members are expected to complete required readings during the week assigned and
to come class prepared to comment on those readings. Regular class attendance is expected and
participation in class discussion will be evaluated as part of the student's
final grade. The class will be assigned
two short essays (six to eight pages) that will ask for reflections on readings
and class discussions. A final exam or
paper will complete the course.
Most
required readings are found in the books to be purchased for the course.
Additional reading assignments can also be found on WebCT and are so designated
on this syllabus.
Required texts:
J. Grieco and J. Ikenberry, State Power and World Markets
T. Friedman, The
World is Flat
D. Rodrik, Has
Globalization Gone Too Farr?
N. Lardy, Integrating
A. Chua, World on Fire
Office Hours: T 2:30-4:00, W
1:00-2:30 and by appointment in Bernard 216
Telephone: Office: 909-607-3774
Home: 909-626-5800 (Until 10PM)
e-mail: tilgen@pitzer.edu
FAX:
(909)621-8481
Week 1. Introduction
to International Political Economy ( August 30-September 1)
Required:
J. Grieco and J. Ikenberry, Chs.
1-3.
Recommended:
R. Gilpin, Global Political
Economy
R. Gilpin, The Political Economy
of International Relations
S. Gill and D. Law, The Global
Political Economy
D.
Week 2. Theoretical Approaches to International Political Economy (September 6,8)
Required:
R. Gilpin, “Three Ideologies of
Political Economy,” WebCT
S. Krasner, “State Power and the
Structure of International Trade,” WebCT
B. Eichengreen, “The Political
Economy of the Smoot-Hawley Tariff,” WebCT
S. Strange, “States, Firms, and Diplomacy,” WebCT
Recommended:
R. Gilpin, The Challenge of
Global Capitalism
P. Katzenstein, Exploration and
Contestation in the Study of World Politics
R. Keohane and J. Nye, Power and
Interdependence
R. Keohane, After Hegemony
C. Lipson and B. Cohen, Theory
and Structure in International Political Economy
Weeks 3 and 4. The International Economy in Historical
Perspective and the Origins of the Postwar Economic Order (September 13-22)
Required:
J. Grieco and J.
C. Kindleberger, “The Rise of
Free Trade in
D. Gourevitch, “International
Trade, Domestic Coalitions, and
E. Frieden, “International
Investment and Colonial Control” WebCT
D.
Recommended:
B. Eichengreen, Golden Fetters: The Gold Standard
and the Great Depression, 1919-
1939
A. Gerschenkron, Economic Backwardness in
Historical Perspective
A. Hirschman, National Power and the Structure of
Foreign Trade
T. Ilgen, Autonomy and
Interdependence
P. Kennedy, The Rise and Fall of the Great Powers
C. Kindleberger, The World in Depression,
1929-1939
R. Rosecrance, The Rise of the
Trading State
I. Wallerstein, The Modern World System
Weeks 5 and 6. The Postwar Economic Order: Money and Finance (September
27-October 6)
Required:
J.Grieco and J.
B. Eichengreen, Hegemonic
Stability Theories of the International Monetary System,” WebCT
B. Cohen, “The Triad and the Unholy
Trinity: Problems of International Monetary
Cooperation,” WebCT
J. Goodman and L. Pauly, “The
Obsolescence of Capital Controls?” WebCT
Recommended:
B. Cohen, The Geography of Money
B. Eichengreen, Globalizing Capital
B. Eichengreen and C.F. Bergsten, Toward
a New International Financial Architecture
J. Eatwell and L. Taylor, Global
Finance at Risk
Y. Funabashi, Managing the
Dollar: From the Plaza to the Louvre
R. Gardner, Sterling‑Dollar Diplomacy
in Current Perspective
J. Gowa, Closing the Gold Window
E. Helleiner, States and the Reemergence of
Global Finance
M. Kahler, Capital Flows and Financial Crises
S. Maxfield, Gatekeepers of Growth
J.
L. Pauley, Who Elected the
Bankers?
R. Solomon, The
International Monetary System, 1945-1976
R. Solomon, Money on the Move
S. Strange, Mad Money: When
Markets Outgrow Governments
Week 7. The Postwar
Economic Order: Trade (October 11,
13)
Required:
Recommended:
International Trade:
A. Cockburn, Five Days That Shook
the World: The
J. Evans, The Kennedy Round in American
Trade Policy: The Twilight of the GATT
J. Goldstein, Ideas, Interests, and American
Trade Policy
J. Gowa, Allies, Adversaries and
International Trade
A. Hirschman, National Power and
the Structure of Foreign Trade
G. Hufbauer and J. Schott, North American Free
Trade
A. Krueger, The WTO as an International
Organization
P. Krugman, Rethinking International
Trade
H.
Milner, Resisting Protectionism
R. Pastor, Congress and the
Politics of
E. Preeg, Traders and
Diplomats
E.E. Schattschneider, Politics,
Pressures and the Tariff
J. Schott, The WTO After
A. Shonfield, International
Economic Relations of the Western World, 1959‑1971
D. Yoffie, Power and
Protectionism
Trade and Domestic Politics:
D. Friedman, The Misunderstood Miracle
G. Garrett, Partisan Politics in
the Global Economy
P. Gourevitch, Politics in Hard Times
M. Hiscox, International Trade
and Political Conflict
P. Katzenstein, Between Power and Plenty
M. Olson, The Rise and Decline of
Nations
T. Risse-Kappen, Cooperation Among Democracies
J. Snyder, Myths of Empire
L. Tyson, Who's Bashing
Whom?
First Paper Assigned:
October 6‑Due October 13
Fall Break‑October
15-18
Weeks 8 and 9. The
Postwar Economic Order: Multinational
Required:
T. Friedman, The World is Flat,
Chs 1-8, 10
Recommended:
R. Barnet and J. Cavanagh, Global
Dreams
R. Barnet and R. Muller, Global
Reach
D. Bennett and K. Sharpe, Transnational
Corporations Versus the State
J. Brecher, Global Village or
Global Pillage
P. Doremus, et. al., The Myth of the Global
Corporation
P. Evans, Dependent Development
J. Grunwald and K. Flamm, The Global Factory
R. Vernon, Sovereignty at Bay
P. Doremus, et. al., The Myth of
the Global Corporation
Week 10. The
Required:
Grieco and
Recommended:
M. Aoki, The Role of Government
in East Asian Economic Development
P. Bairoch, The Economic Development of the
B. Cohen, The Question of
Imperialism
P. Evans, Embedded Autonomy:
States and Industrial Transformation
A. Fishlow, Rich and Poor
Nations in the World Economy
J. Frieden, Debt, Development, and Democracy
G. Gereffi and Wyman, Manufacturing
Miracles
M. Goldstein, The Asian Financial
Crisis
S. Haggard, Pathways from the
Periphery
S. Haggard, The Political Economy
of the Asian Financial Crisis
G. Helleiner, Global Development
Fifty Years After Bretton Woods
2nd Paper Assigned: November
3 Due: November 10
Week 11.
Required:
A. Chua, World on Fire
(entire)
T. Friedman, The World is Flat, Ch. 9
Recommended:
K. S. Jomo, Tigers in Trouble
P. Katzenstein,
R. Klitgaard, Tropical Gangsters
S. Krasner, Structural
Conflict
W.A. Lewis, The Evolution of the
International Economic Order
J. Migdal, Strong Societies and
T.J. Pempel, The Politics of the Asian Economic
Crisis
J. Ruggie, The Antinomies of
Interdependence
Weeks 12 and 13. Socialist
Transitions to a Market Economy (Nov. 15-22)
Required:
S. Islam and M. Mandelbaum, “Making
Markets” WebCT
N. Lardy, Integrating China into
the World Economy (entire)
Recommended:
G. Adler‑Karlsson, Western
Economic Warfare, 1947‑1967
B. Bueno de Mesquita, et. al., Red
Flag Over
M. Goldman, Detente and
Dollars
L. Haus, Globalizing the GATT
F. Holzman, International Trade Under Communism
J. Hough, Opening the Soviet
Economy
N. Lardy, Foreign Trade and
Economic Reform in
M. Mastanduno, Economic
Containment
Weeks 14 and 15. Globalization:
Yeah or Nay? (November 29-December
8)
Required:
Grieco and
T. Friedman, The World is Flat,
Chs. 11-13
A.T Kearney, “Measuring Globalization,” WebCT
Recommended:
B. Barber, Jihad vs. McWorld
G. Burtless, Globaphobia
A. Giddens, The Runaway World
A. D. Held, Global
Transformations
J. Mander and E. Goldsmith, The Case Against the
Global Economy
J. Mittelman, The Globalization Syndrome
R. Rosecrance, Rise of the Virtual State
T. Friedman, The Lexus and the Olive Tree
J. Stiglitz, Globalization and Its Discontents
Final Paper or Exam:
December 12