31696 - Politics of the World Economy

Learning outcomes

This graduate course provides the student with key elements to intepret and understand the interaction between political and economic processes at the international level. At the end of the course the student will have acquired an advanced knowledge of the main themes and issues at stake in global political-economic relations (development, trade and security issues, financial crises and the management of power asymmetries in the international system, global governance issues). She/He will also have developed abilities to understand and critically assess the main causal links, interest constellations and power relationships that are at the core of most political-economy processes at the international level.

Course contents

The first part of the course covers the most relevant theoretical approaches to the study of IPE. In addition to the three orthodox approaches (Mercantilism, Liberalism, Marxism), the course will  focus on the role of domestic and international political determinants in the explanations of different economic outcomes, as well as on the complex relation between security and economic interdependence.

The second part of the course will be devoted to the study of international monetary, trade and financial systems. Against their historical and institutional backgrounds, classes will cover, respectively, the role of international insitutions in systemic crises and in managing power asymmetries, main development issues in North-South relations and the debate on globalization.

Preparation will be assessed based on an oral exam on the readings that are indicated below. Students who choose to not attend classess shall add to such material the reading of John Ravenhill's (ed), Global Political Economy, Oxford University Press, Oxford 2008.

Additional non-required readings on covered topics may be indicated during the course.

First Part

1. Introduction to the study of International political economy

-J. Frieden e R. Lake, "Introduction", in J. Frieden and D. Lake, International Political Economy, London and New York, Routledge, 1995, pp.1-15;

Cohen, B.J., International Political Economy, Princeton University Press, Princeton & Oxford, 2008, Introduction and Chapters 1-2.

- R. Rogowski, “Political Cleavages and Changing Exposure to Trade”, American Political Science Review, 81, 4, 1987, pp. 1121-1137;

-S. Strange, “States, Firms, and Diplomacy”, International Affairs, 68, 1, 1992, pp.1-15;

 

2. The Mercantilist Tradition

- D. Irwin, Against The Tide: An Intellectual History of Free Trade, Princeton University Press, Princeton, NJ, 1996, pp.116-137 (The Infant Industry Argument);

- A.O. Hirschman, National Power and The Structure of Foreign Trade, Berkeley, University of California Press, 1945, trad. it. Potenza nazionale e commercio estero, Bologna, Il Mulino, 1987, pp. 63-74 e pp. 75-124;

- T. Moran, “Grand Strategy: The Pursuit of Power and the Pursuit of Plenty”, International Organization, 50, Inverno 1996, pp.175-205;

-R. Findlay e K. H. O'Rourke, ‘World Trade 1650-1780: The Age of Mercantilism', in Power and Plenty, Oxford and Princeton, Princeton University Press, 2008, Capitolo 5, solo pp. 227-294 e 304-310 (pagine scelte)

 

3. The Liberal Tradition 

- I. Kant, Per la pace perpetua, [1795], traduzione di Roberto Bordiga, prefazione di Salvatore Veca, Milano, Feltrinelli, 2002, 8° edizione, pp.53-68 (Primo, Secondo e Terzo Articolo);

- D. Irwin, Against The Tide: An Intellectual History of Free Trade, op. cit., pp.75-86 (Adam Smith's Case for Free Trade), e pp.87-98 (Free trade in classical economics);

-R. Keohane, After Hegemony, Princeton, Princeton University Press, 1984, pp.49-64, pp. 85-109 e pp.243-259;

-J. R. Oneal, e B. Russett, “The Kantian Peace: The Pacific Benefits of Democracy, Interdependence, and International Organizations, 1885-1992”, World Politics, 52, 1, 1999, 22, pp. 1-36;

 

4. Security and economic interdependence (I). Systemic change: Hegemonic Stability Theory and its critics

-S. Krasner, “State Power and the Structure of International Trade”, World Politics, 28, 3, 1976, pp. 317-347;

-C. Kindleberger, “Dominance and Leadership in The World Economy: Exploitation, Public Goods, and Free Riders”, International Studies Quarterly, 25, 1981, pp.242-254;

-J. Conybeare, “Public Goods, Prisoners' Dilemma and The International Political Economy”, International Studies Quarterly, 28, 1984, pp.5-22;

- D. Snidal, “The Limits of Hegemonic Stability Theory”, International Organization, 39, 1985, pp.579-614;

 

5. Security and economic interdependence (II). Balance of power Theories: Relative gains, alliances and trade policies

- J. M. Grieco, “Anarchy and the limits of cooperation: a realist critique to the newest liberal institutionalism”, International Organization, 43, 2, Estate 1988, pp.485-507;

- J. Gowa, e E.D. Mansfield, “Power Politics And International Trade”, American Political Science Review, 87, No.2, June 1993, pp.408-420;

- E. D. Mansfield e R. Bronson, “The Political Economy of Major-Power Trade Flows”, in Edward D. Mansfield, and Helen V. Milner, (eds.), The political economy of regionalism, Columbia University Press, New York, 1997, pp.188-208;

 

6. Domestic determinants: preferences and institutions

- D. Putnam, “Diplomacy and Domestic Politics: The Logic of Two Level Games”, International Organization, 42, 3, Estate 1988, pp.427-460;

-A. Moravcsik, “Taking Preferences Seriously: A Liberal Theory of International Politics”, International Organization, 51, 4, Autunno 1997, pp.513-553;

-M. Olson e M. McGuire, “The economics of autocracy and majority rule: the invisible hand and the use of force”, Journal of Economic Literature, 34, Marzo 1996, pp.72-96;

- E.D. Mansfield, H.V. Milner e  P.B. Rosendorff,  “Free to Trade: Democracies, Autocracies and International Trade”, Americal Political Science Review, 94, 2000, pp.305-321;

 

Second Part

 

7. The International Monetary System

-J. Ruggie, "International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order", International Organization, 36, 2, Primavera 1982, pp.379-415;

-B. Cohen, “The Triad and The Unholy Trinity: Problems of International Monetary Cooperation”, J. Frieden and D.Lake, eds., 1995, op.cit., pp.255-266;

-M. Obstfeld, “The Global Capital Market: Benefactor or Menace?”, Journal of Economic Perspectives, 12, 4, Autunno 1998, pp.9-30;

-G. Biglaiser e K. DeRouen Jr., “Sovereign Bond Ratings and Neoliberalism in Latin America”, International Studies Quarterly, 51, 2007, pp.121-138.

 

8. The International Trade System

-R. Findlay e K. H. O'Rourke, ‘Reglobalization: The Late Twentieth Century in Historical Perspective', in Power and Plenty, Oxford and Princeton, Princeton University Press, 2008, Capitolo 9, pp.473-526.

-J.Barton, J.Goldstein, T.E. Josling e R.H. Steinberg, The Evolution of the Trade Regime, Princeton University Press, Princeton, 2006, Chapters 2 and 5.

-C. Secchi, “The political economy of the Uruguay Round: Groups, Strategies, Interests and Results”, in R. Faini and E. Grilli, (eds.), Multilateralism and Regionalism after the Uruguay Round, New York, St. Martin's Press, 1997, pp.61-111;

 - J. Whalley, “Why Do Countries Seek Regional Trade Agreements?”, in Jeffrey Frankel, (ed.), The regionalization of the world economy, University of Chicago Press, Chicago, 1998, pp.63-87;

 

9. The political economy of North-South relations 

-B. Hoekman e A. Mattoo, Development, Trade and the WTO: A Handbook, World Bank Publication, 2002, Washington, DC, Cap. VII (The Trading System and Developing Countries), solo pp.483-508.

Disponibile anche on line alla pagina http://publications.worldbank.org/catalog/content-download?revision_id=1526187

- J. Grieco e J. Ikenberrry, State Power and World Markets, W. W. Norton, New York & London, 2003, pp.244-287.

- C. Burnside, e D. Dollar, “Aid, Policies and Growth”, American Economic Review, 90:4, 2000, September, pp.847-868.

-Easterly, W. , The White Man's Burden, Oxford University Press, Oxford & New York, 2006, pp.33-49 ‘The Legend of the Big Push', e pp.99-138, ‘Planners and Gangsters'.

 

10. Global financial crises and the role of international institutions

- R.O. Keohane, “International Institutions: Can Interdependence Work?”, Foreign Policy, 110, Primavera 1998, pp.82-96;

- J.J. Mearsheimer, “The False Promise of International Institutions”, International Security, 19, 3, 1995, pp.5-49;

-M. Feldstein, “Refocusing the IMF”, Foreign Affairs, Marzo/Aprile 1998, pp. 20-33;

-S. Fischer, “The IMF and the Asian Crisis”, pp.1-17, 1998, disponibile on line al sito web del Fondo Monetario Internazionale, www.imf.org/external/np/speeches/1998/032098.htm;

- E.Jones, “They Have No Idea...Decision-making and Policy Change in the Global Financial Crisis”, LEQS Paper 04/2009.

- B. Eichengreen, “Not a New Bretton Woods but a New Bretton Woods Process”, in B.Eichengreen and R.Baldwin (eds), What G20 leaders must do to stabilize the our economy and the financial system, voxEU.org publication, CEPR, 2009, pp.25-27.

 

11. The debate on globalization

-R.O. Keohane e J. S. Nye, “Globalization: What's New? What's Not? (And So What ?)”, Foreign Policy, 118, pp.104-119, 2000;

-R. Findlay e K. H. O'Rourke, ‘Globalization at the Dawn of the Twenty-First Century', in Power and Plenty, Oxford and Princeton, Princeton University Press, 2008, Capitolo 10, pp.527-546.

-M. Zürn, “From Interdependence to Globalization”, in Walter Carlsnaes, Thomas Risse e Beth A. Simmons, Handbook of International Relations, Sage, London, 2002, pp. 235-254;

-D. Rodrik, Has Globalization Gone Too Far?, Institute of International Economics, Washington, 1997, pp.1-10 e pp.69-85;

-J.E. Stiglitz, Globalization and its discontents, W.W. Norton, New York, 2002, pp. 214-252.

-Baumol, W.J., Litan, R.E. e C.J. Schramm, Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity, pp. 60-92 e 272-276.

 

 

 

Readings/Bibliography

 

Teaching methods

Classes will be taught in two modules, with the help of visual tools (ppt).

Assessment methods

NB: on 9/06/2010 e 29/06/2010 the exam will consist of a written test (1 hour).

For those who have attended classes during the past Fall term (2009-2010): students will have to answer 2 open questions, with 2 short essays. The two questions will be chosen by each student out of a group of 5. The questions are similar to those asked in previous oral examinations, and are based 1. On the course contents, as indicated in the Programma above 2. On class discussions.

For those who have not attended classes during the past Fall term (2009-2010): will have to answer 2 open questions, with 2 short essays. The two questions will be chosen by each student out of a group of 5. The questions are similar to those asked in previous oral examinations, and are based 1. On the course contents, as indicated in the Programma above 2. On John Ravenhill's handbook.

When preferred, non-native speakers will be allowed to answer in English.

Teaching tools

Projector, OHP, PC.

Office hours

See the website of Eugenia Baroncelli