Course: International Political Economy

Semester: Spring 2003

Code: EC 5102

Lecturer: Rita Buckley

Room: EM015

 

Office Hours: Monday: 14.00 - 15.00

 

E mail: [email protected]

 

 

 

Course Description

 

This is an introduction to the relationships between politics and economics in the global political economy (GPE). A fundamental assumption is that economic issues significantly influence political decisions and vice versa; it is no longer possible to separate arbitrarily one area of study from the other.  The focus of the course falls upon the growth processes in world markets; patterns of global production, international money flows and global and financial investment practices and intensifying regionalism (as evident in the European Union, the North America Free Trade Association and the Asia Pacific Economic Community).

 

Lectures and readings will deal with the concepts used in research on international political economy (IPE).

 

 

Philosophy:

 

The course has dual goals: one is to clarify issues and operations of the global political economy; the other is the provoke recognition of its ambiguity and complexity.

 

 

Explanation of Course Requirements.

 

1. To attend weekly lectures which are held in C0070, Monday 10.00 - 13.00.

2.   To complete an essay (should not exceed 2,000 words) from titles provided.

     This represents 50 percent of final mark. The essay must be submitted by Thursday 17.00

     week 13. The essay titles are attached.

3.   Each student will be required to do a presentation from the list provided. Presentations will begin in week three. Presentations to the class should be no more than 10 minutes long and should present a critical review of the arguments for the topic under discussion. The seminar presentation will be worth 20% of overall grade. List of presentation topics attached.

4.   In addition to the presentation, students should submit a five to six page paper (typed and  double spaced) within one week of the presentation. This will be worth 20% of the overall grade

5.   Ten per cent of assessment marks will be awarded for active class participation

 

 

Syllabus:

 

1.         Introduction

Meeting session, class administration, and introductory lecture

 

            Forces shaping the world economy

 

Pearson, F. and  Payaslian S (1999) “International Political Economy: Conflict    and Cooperation in the Global System, McGraw-Hill: NY, Chapter 2 & 3.

 

Pettman, R (1996) “Understanding International Political Economy With Readings for the Fatigued, Lynn Rienner:London

 

Spero, J and Hart, J (1997), “ The Politics of International Economic Relations”, St. Martins Press, NY Part one, Chapter 1.

 

Gilpin., R. “Three ideologies of Political Economy” in International Political Economy - A Reader  K. Stiles and T. Akaha (eds).  Harper Collins, 1991

 

Underhill, G (1994) “Conceptualizing the Changing Global Order” in  Political Economy and the Changing Global Order Stubbs, R and G Underhill (eds) St. Martin’s Press, New York

 

 

 

2.         North South Issues

 

Krueger, A. “Trade Policy and Economic Development - how we learn”.  American Economic Review, Vol. 87 Iss.1, March 1997. P1-22

 

Spero, J and Hart, J (1997), “ The Politics of International Economic Relations”, St. Martins Press, NY Part one, Chapter 5.

 

Lairson T. & Skidmore, D (1997) “International Political Economy: The Struggle for Power and Wealth, Harcourt Brace: NY, Chapter 8 & 9.

 

Pearson, F. and  Payaslian S (1999) “International Political Economy: Conflict    and Cooperation in the Global System, McGraw-Hill: NY, Chapter 10.

 

Singh, A and A Zammit (1995) “Employment and Unemployment, North and South” in Managing the Global Economy J. Michie and J Grieve Smith (eds) Oxford University Press

 

Wood, A. (1994) “North - South Trade Employment and Inequality - Changing Fortunes in a Skill-Driven World” chapter 1.  Oxford University Press

 

 

3.          International Monetary System 1948 - 2000; international currency flows and      the role of international institutions

 

Bird, Graham (1995) “IMF Lending to Developing Countries, Issues and Evidence” chapter 1, Routledge

 

Kahler, M (1991) “Politics and International Debt: Explaining the Crisis” in International Political Economy - A Reader”  K. Stiles and T. Akaha (eds).  Harper Collins

 

Lairson T. & Skidmore, D (1997) “International Political Economy: The Struggle for Power and Wealth, Harcourt Brace: NY, Chapter 12..

 

 

Williamson J and C. Milner The World Economy - A textbook in International Economics chapters 18, 19.  Harvester Wheatsheaf 1991

 

Krugman, P. “The Myth of Asia’s Miracle”, Foreign Affairs Vol. 73 No. 3, 1995

 

Riedel, J “Capital Market Integration in Developing Asia” The World Economy 20 (1) 1997

           

  1. The Political Economy of Post Communist States

 

Lairson T. & Skidmore, D (1997) “International Political Economy: The Struggle for Power and Wealth, Harcourt Brace: NY, Chapter 14.

 

Balaam, D. & Veseth M. (2001), “Introduction to International Political Economy”, Prentice Hall: New Jersey, Chapter 14.

 

Freiden J., & Lake, D (2000),” International Political Economy: Perspectives on Global Wealth and Power”, St Martins Press: Boston, Part vi.

 

Anslund, A., (1995) “How Russia became a market economy”, Washington D.C: Brookings Institution

 

Spero, J and Hart, J (1997), “ The Politics of International Economic Relations”, St. Martins Press, NY Part one, Chapter 10.

 

 

Collin S. & Rodrick, D (1991) “Eastern Europe and the Soviet Union in the World Economy”, Washington: Institute for International Economics.

 

 

            5.  International Trade and growth

 

Cohen, B (1991) “The Political Economy of International Trade” in International Political Economy - A Reader”  K. Stiles and T. Akaha (eds).  Harper Collins,

 

Freiden J., & Lake, D (2000),” International Political Economy: Perspectives on Global Wealth and Power”, St Martins Press: Boston, Part V.

 

Jepma, C.J, H. Jager and E. Kamphuis “Introduction to International Economics” .Chapter 3, 7, 10 Addison Wesley Longman 1996.

 

Bhagwati, J “Protectionism” MIT 1988

 

Krugman, P “Technology’s Revenge” in Pop Internationalism, MIT Press, 1997

 

Krugman, P. “Is Free Trade Passe ?” in International Economics and International Economic Policy: A Reader”.  Edited by P. King.  Mc Graw Hill, 1990

 

Hart, J and A Prakash “Strategic Trade and Investment Policies: Implications for the study of International Political Economy” The World Economy 20(4) 1997

 

 

6.         Globalization and FDI

 

Spero, J and Hart, J (1997), “ The Politics of International Economic Relations”, St. Martins Press, NY Part one, Chapter 10.

 

Lairson T. & Skidmore, D (1997) “International Political Economy: The Struggle for Power and Wealth, Harcourt Brace: NY, Chapter 5

 

Haggard S. (1995) “ Developing Nations and the Politics of Global Integration”, Washington DC: Brookings.

 

Jones, B. (1995) “ Globalisation and Interdependence in the International Political Economy, London: Pinter.

 

Pearson, F. and  Payaslian S (1999) “International Political Economy: Conflict    and Cooperation in the Global System, McGraw-Hill: NY, Chapter 10.

 

 

7.         Political Economy of the Asia-Pacific Region

 

Guest speaker.  Professor Linda Low, Singapore

             (May, 2002)

           

             References to be supplied

 

 

8.         Multinational Corporations and the changing nature of international

             production

 

Spero, J and Hart, J (1997), “ The Politics of International Economic Relations”, St. Martins Press, NY Part one, Chapter 10.

 

Grunberg L (1996), “ The IPE of Multinational Corporations” in Balaam, D. & Veseth M. (2001), “Introduction to International Political Economy”, Prentice Hall: New Jersey,.

 

Lairson T. & Skidmore, D (1997) “International Political Economy: The Struggle for Power and Wealth, Harcourt Brace: NY, Chapter 11

 

Jepma, C.J, H. Jager and E. Kamphuis (1996) “Introduction to International Economics” .Chapter 5 Addison Wesley Longman

 

Kudrle, R (1991) “The Several Faces of the Multinational Corporation: Political reaction and Policy Response” in International Political Economy - A Reader  K. Stiles and T. Akaha (eds).  Harper Collins

 

Kozul-Wright, (1995) R “Transnational Corporations and the Nation State” in Managing the Global Economy J. Michie and J Grieve Smith (eds) Oxford University Press

 

Buckley and Casson (1998) “ Models of the Multinational Enterprise” Journal of International Business Studies 29(1)

 

Cantwell, J. (1995) “The globalisation of technology: what remains of the product life cycle model?  Cambridge Journal of Economics 19(1)

 

 

9.         Economic and Monetary Union - issues that lie ahead           

Guest Speaker: Professor Bernadette Andreosso

 

Wihlborg, C (1994) “EMU - Economic Substance of Political Symbolism?” The World Economy 17(5), September

 

Slavatore, D. (1998) “Europe’s Structural and Competitiveness Problems and the Euro”  The World Economy (21 (2) March

 

Neary, JP and R. Thom (1997) “Pounds Punts and Euros - in search of an optimal currency area” IBAR

 

(Additional References will be supplied by Professor Andreosso)

 

 

10. The Future of the International Political Economy

 

Pearson, F. and  Payaslian S (1999) “International Political Economy: Conflict    and Cooperation in the Global System, McGraw-Hill: NY, Chapter 10.

 

Lairson T. & Skidmore, D (1997) “International Political Economy: The Struggle for Power and Wealth, Harcourt Brace: NY, Chapter 15.

 

Balaam, D. & Veseth M. (2001), “Introduction to International Political Economy”, Prentice Hall: New Jersey, Chapter 20.

 

Freiden J., & Lake, D (2000),” International Political Economy: Perspectives on Global Wealth and Power”, St Martins Press: Boston, Part VII.

 

 

 

Essay Titles

 

Please choose one from the following:

 

1. Outline and discuss the factors that lay behind Asia’s 1997 currency crisis explaining why this led to calls for an overhaul of the International Monetary Fund.

 

2.   " The creation of EMU is far more then just the outcome of economic considerations, just as the evolution of the EU itself must be regarded primarily as a political development "

H. Schlesinger (1996)

Discuss.

 

3.  In commenting upon the forces that are shaping the future of the global economy, Ohmae (1995, p. 16) concludes “what this combination of forces makes clear is that the nation state has become an unnatural - even a dysfunctional - organisational unit for thinking about economic activity…”

Outline and discuss what you believe to be the forces shaping the future global economy

highlighting  whether and to what degree you agree with Ohmae’s suggested redundancy of

the nation state in your analysis.

 

4. Outline and discuss the main forces shaping the political economy of the Asia-Pacific region highlighting the roles played by China and Japan in this process.

 

5. Compare and contrast the economic and political reforms in Russia and in Eastern Europe. Evaluate the factors that have made Eastern Europe’s reforms more successful at this point, than those in Russia.

 

6.The development dilemma has two distinct elements: the growing gap between rich and poor nations (North and South) and the increasing differences among less developed countries themselves (LDC’s).  Discuss.

 

7.The South’s dependence upon the North for finance, trade and technology has provided Northern policymakers and bankers with the leverage needed to impose their own solutions to the debt crisis. Discuss.

 

8.  Discuss the view that the growing importance of global markets and MNC’s alter the role of the state in home and host countries.

 

 

Presentation Topics

Forces Shaping the World Economy  (week 3, 24th Feb)

 

  1. The major issues, in the last decade, that illustrate the close relationships between politics and economics.

 

  1. The IPE approach that offers the most compelling explanation of overall global dynamics.

 

  1. The IPE approach which offers the most useful policy suggestions for addressing current problems.

 

 North/South Issues  (week 4, 3rd March)

 

  1. How can the relative gap between the richest and poorest countries be narrowed?

 

  1. The most effective means of measuring the gap between the richest and poorest countries.

 

  1.  The main reasons for the growing disparity in wealth between North and South.

 

 

The Debt Crisis (week 7. 24th March)

 

 

           

  1. The Role of the IMF and the Debt Crisis.

 

  1. The  (economic and social) pros and cons of “writing off” the debt of highly indebted countries in the developing world.

 

 

  1.  An Analysis of the Varying Approaches to Solving the Debt Crisis.

 

 

International Trade (week 8, 31st March)

 

               

 

  1. Import Substitution versus Export Led Growth Strategies for Industrial Growth in Third World Countries.

 

  1. Import Substitution versus Export Led Growth Strategies for Industrial Growth in Advanced Industrial Countries.

 

  1.  A Critical Examination of the Role of the WTO.

 

 

Globalisation (week 9, 7th April)

 

  1. An Evaluation of the Consequences of Globalisation of Production for Advanced Industrial economies

 

  1. An Evaluation of the Consequences of the Globalisation of Production for Developing Countries.

 

  1.   An Evaluation of the Consequences of Financial Globalisation for developing and developed nations.

 

Transition Economies (week 10, April 14th)

 

  1. The Pros and Cons of Slow versus Fast Transition from a Centrally Planned to a Market Economy.

 

  1. An analysis of the Steps to be Taken by the Formerly Centrally Planned Economies in order to Liberalise their Trade.

 

  1. An evaluation of the consequences for governments, consumers, producers and other economic agents in the move from a centrally planned to a market economy in the short run and in the long run.

 

  1.  An economic comparison of the relative performance of Eastern Europe and the Former Soviet Union with respect to their experience of transition to a market economy.

 

 

 Multinational Companies (week 12, April, 28th)

 

 

  1. An  Evaluation of  the Impact of MNC’s on their Host Countries in advanced industrial    economies.

 

  1. An evaluation of the Impact of MNC’s on Host countries in less developed economies.

 

  1. An Evaluation of the Location Decisions of MNC’s

 

  1. The impact of government regulations and controls on MNC activity in host economies.

 

 

 

Economic and Monetary Union (week 13)

 

  1. The Economic conditions necessary for nations to join together to form a monetary union.

 

  1. The impact of the EMU on the Global economy.

 

 

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