Topics in Political Economy: Issues of Economic and Political Development. Müşerref Yetim Summer Course Description
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1 Topics in Political Economy: Issues of Economic and Political Development POL-GA (DAFT) Müşerref Yetim Summer Room xxx Office and phone number: 19 West 4 th St, Room Office Hours: Th 17:00 18:00 pm Course Description This course is designed to introduce graduate students to the core concepts, processes, theories, and issues economic and political development. The focus will be on divergent theoretical approaches to political economy of development and their empirical applications while studying different regions experiences of development. Our objective is to gain an understanding of the problems of economic and political development. The following critical questions will guide us throughout the course: Is the general theoretical framework that is used to study issues in developed countries relevant for developing countries? In other words, are political economy models developed for understanding development just intellectual curiosities? Is it futile to attempt to separate the economic issues of development from the political issues of regime type such as democracy and dictatorships and political development? Why do some states fail and others succeed? Why do some nations remain poor while others prosper and expand? Why is it so difficult to choose institutions that facilitate long-term economic performance? How do we get the institutions right? What do authoritarian governments maximize? How do we get the right institutions that provide order, prevent violence, and make credible commitments possible? What role do institutions play in facilitating order and stability and thus political and economic development? What are the challenges and opportunities presented by changes in the rules and regulations of major international institutions, such as the International Monetary Fund, the World Bank, and World Trade Organization? The course is divided into four parts. Part I provides an overview of definitional, conceptual, theoretical issues and an introduction to structural change in history. Following a chronological order from Modernization Theory to Neo-Institutional Approaches, Part II introduces theoretical approaches to the problem of development. Part III extends the debate to the role of past and present institutions on development. We will discuss the role of domestic institutions, more specifically the nature of the state and markets; the legacy of the colonial past with the remnants of cronyism and patronage, patrimonial tendencies, and lack of transparency; the impact of regime types and interests on development; the impact of natural resource endowments and primary resource dependence on both political and economic development; and lastly institutional failure and the problems of getting the right institutions, i.e., the institutions that promote economic and political development. The role of international institutions in conjunction with the impact of globalization on development is discussed in Part IV. Key topics include but are not limited to the following: late development, path dependence, the role of domestic and international institutions, development strategies, the rule of law, property rights, governance, transactions costs, the problem of social cost, the problem of institutional choice and its role on economic and political development, the role of democratic and authoritarian institutions in economic performance. Course Requirements This course will follow a seminar format. Requirements for this course are: 1) to attend all class meetings; 2) to participate actively in the class discussions; 3) to do all of the assigned reading for each
2 week before the class and post at least two discussion questions by 12 PM on the day of the class; 4) to give three 10 to 15-minute oral presentations accompanied by a class handout (on the selection of assigned readings and should be submitted by noon on the day of class); 5) to write an original 15-page research paper focusing either on the theoretical and conceptual issues covered in the course or on the application of these theories and concepts to one or more case studies that fit students own research interests; 6) to submit and present a research paper proposal describing your topic for my approval no later than July 17, 2011; 7) and to give a 10-minute oral presentation of your research paper on August 7 and 9, The final research paper is due on August 7, 2011, 4:00 PM. Research Paper and Presentation (60%) Oral presentations with handouts (10% each) Class Participation (10%) Grading Criteria Readings There are several books and many articles required for this course. Most of the articles are available online at JSTOR, ProQuest, Lexis-Nexis, other electronic databases. Bates, Robert H When Things Fell Apart: State Failure in Late-Century Africa. New York: Cambridge University Press. North, Douglass. C., John J.Wallis, and Barry Weingast Violence and Social Order: A Conceptual Framework for Interpreting Recorded Human History. Cambridge: Cambridge University Press. Lee, Yong-Shik Reclaiming Development in the World Trading System. New York: Cambridge University Press Topics and Readings I. Introduction Class 1 (July 3): Introduction and sign-ups for presentations North, Douglass C The Structure and Change in Economic History. New York: W. W. Norton. Class 2 (July 5): What is Political Economy? What is Development? Evans, Peter and John D. Stephens Studying Development Since the Sixties: The Emergence of a New Comparative Political Economy. Theory and Society 17: Keefer, Phillip What Does Political Economy Tell Us About Economic Development and Vice Versa? Annual Review of Political Science 7: Deutsch, Karl. W Social Mobilization and Political Development. American Political Science Review 55 (3): Lipset, Seymour Some Social Requisites of Democracy: Economic Development and Political Legitimacy. American Political Science Review 53 (1): Weingast, Barry Self-Enforcing Constitutions: With an Application to Democratic Stability in America s First Century. Working Paper, Hoover Institution, Stanford University.
3 Diamond, Larry Commentary on Seymour Lipset s Some Social Requisites of Democracy: Economic Development and Political Legitimacy. American Political Science Review 100 (2): Rostow, W. W. The Five Stages of Growth. Coase, Ronald H The New Institutional Economics. American Economic Review 88 (2): Coase, Ronald H The Problem of Social Cost. Journal of Law and Economics 3: North, Douglass C. and Barry R. Weingast Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in 17th Century England. Journal of Economic History 49: Fearon, James D Self-Enforcing Democracy. UC Berkeley: Institute of Governmental Studies. Retrieved from: II. Theoretical Approaches to Development Class 3 (July 10): Modernization Theory and its Challengers Dependency Theory, World System Theory, and Modes of production Przeworski, Adam, and Fernando Limongi Modernization: Theories and Facts. World Politic 49 (2), Valenzuela, J. Samuel and Arturo Valenzuela Modernization and Dependency: Alternative Perspectives in the Study of Latin American Underdevelopment. Comparative Politics Henfrey, Colin Dependency, Modes of Production, and the Class Analysis of Latin America. Latin American Perspectives 8(3/4): Wibbels, Erik Dependency Revisited: International Markets, Business Cycles, and Social Spending in the Developing World. International Organization 60 (2): Evans, Peter Predatory, Developmental, and other Apparatuses: A Comparative Political Economy Perspective on the Third World State. Sociological Forum 4: Laclau, Ernesto Feudalism and Capitalism in Latin America. New Left Review I/67, May-June 1971: Schumpeter, Joseph The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Taylor, John G From Modernization to Modes of Production: A Critique of the Sociologies of Development and Underdevelopment. London: Palgrave Macmillan. Wallerstein, Immanuel The Capitalist World Economy. Cambridge University Press. pp Class 4 (July 12): Economic History, Growth, and Development North, Douglass. C., John J. Wallis, and Barry Weingast Violence and Social Order: A Conceptual Framework for Interpreting Recorded Human History. Cambridge: Cambridge University Press. Bates, Robert H Prosperity and Violence: The Political Economy of Development. Norton. Posner, D Institutions and Ethnic Politics in Africa. Cambridge: Cambridge University Press.
4 Olson, Mancur Big Bills Left on the Sidewalk: Why some Nations are Rich and Others Poor. The Journal of Economic Perspectives 10 (2): Class 5 (July 17): Institutional Legacies Research paper proposals are due III. The Role of Institutions and Development Banerjee, Abhijit and Lakshmi Iyer History, Institutions and Economic Performance: The Legacy of Colonial Land Tenure Systems in India. American Economic Review 95: Kuran. Timur Why the Middle East is Economically Underdeveloped: Historical Mechanisms of Institutional Stagnation. Journal of Economic Perspectives 18 (3): Acemoglu, Daron and James A. Robinson Economic Backwardness in Political Perspective. American Political Science Review 100 (1): Grier, Robin M Colonial Legacies and Economic Growth. Public Choice 98: Acemoglu, Daron, Simon Johson, and James A. Robinson The Colonial Origins of Comparative Development: An Empirical Investigation. American Economic Review 91: Bernhard, Michael, Christopher Reenock, Timothy Nordstorm The Legacy of Western Colonialism on Democratic Survival. International Studies Quarterly 48 (1): Athow, Brian and Robert Blanton Colonial Style and Colonial Legacies: Trade Pattern in French and British Africa. Journal of Third World Studies 19 (2): Haber, Steven. Development Strategy or Endogenous Process? Industrialization of Latin America. Working paper. Class 6 (July 19): Democratic versus Authoritarian Institutions, Interests, and Development Przeworski, A. and F. Limongi Political Regimes and Economic Growth. Journal of Economic Perspectives 7 (3): Acemoglu, D. and J. Robinson, Why did the West Extend the Franchise? Democracy, Inequality and Growth in Historical Perspective. Quarterly Journal of Economics 115: Acemoglu, Daron and James Robinson Persistence of Power, Elites and Institutions. Quarterly Journal of Economics 115: Mancur Olson Dictatorship, Democracy, and Development. American Political Science Review 87 (3): Robinson, James A Economic Development and Democracy. Annual Review of Political Science 9: Bellin, Eva Contingent Democrats: Industrialists, Labor and Democratization in Late-Developing Countries. World Politics 52: Kurtz, Marcus The Dilemmas of Democracy in the Open Economy. Lessons from Latin America. World Politics 56 (2): Bratton, Michael, and Nicholas Van de Walle Neopatrimonial Regimes and Political Transitions in Africa. World Politics 46 (4): Schultz, Kenneth A. and Barry Weingast The Democratic Advantage: The Institutional Sources of State Power in International Competition. International Organization 57: 3 42.
5 Weingast, Barry R Political Foundations of Democracy and the Rule of Law. American Political Science Review 91: Keech, William R Economic Politics: the Cost of Democracy. New York: Cambridge University Press. Bruce Bueno de Mequite, et. al The Logic of Political Survival. Cambridge: MIT Press. Stasavage, David Public Debt and the Birth of the Democratic State: France and Great Britain New York: Cambridge University Press. Class 7 (July 24): Natural Resource Endowments and Development Easterly, William and Ross Levine Tropics, Germs and Crops: How Endowments Influence Economic Development. Journal of Monetary Economics 50(1): Luong, Pauline J. Erika Weinthal Rethinking the Resource Curse: Ownership Structure, Institutional Capacity, and Domestic Constraints. Annual Review of Political Science 9: Sachs, Jeffrey D. and Andrew Warner The Curse of Natural Resources. European Economic Review 45 (4): Ross, Michael The Political Economy of the Resource Curse. World Politics 51 (2): Herb, Michael No Representation Without Taxation? Comparative Politics Haber, Steven and Victor Menaldo. Do Natural Resources Fuel Authoritarianism? A Reappraisal of the Resource Course. Working paper. Henry, Clement M Algeria s Agonies: Oil Rent Effects in a Bunker State. Journal of North African Studies 9 (2): Ross, Michael Does Oil Hinder Democracy? World Politics 53 (4): Class 8 (July 26): Institutional Failures and Getting the right Institutions Bates, Robert H When Things Fell Apart: State Failure in Late-Century Africa. Cambridge University Press. Easterly, William Institutions: Top Down or Bottom Up? American Economic Review 98(2): Rodrik, Dani Second-Best Institutions. American Economic Review 98 (2): Kasara, Kimuli Tax Me If You Can: Ethnic Geography, Democracy, and Taxation. American Political Science Review 101 (1): Rodrik, Dani, Arvind Subramanian and Francesco Trebbi Institutions Rule: the Primacy of Institutions over Geography and Integration in Economic Development. Journal of Economic Growth 9: Easterly, William Elusive Quest for Growth: Economists Adventures and Misadventures in the Tropics. Cambridge: MIT Press. Rodrik, Dani Getting Interventions Right: How South Korea and Taiwan Grew Rich. Economic Policy 10 (20): Arrighi, Giovanni The African Crisis: World Systemic and Regional Aspects. New Left Review 15 (2002): Romer, Paul The Origins of Endogenous Growth. Journal of Economic History 8 (1): 3 22.
6 IV. The Role of International Institutions and Development Class 9 (July 31): Trade and Development Lee, Yong-Shik Reclaiming Development in the World Trading System. New York: Cambridge University Press. Milner, Helen V. and Keiko Kubota Why the Move to Free Trade? Democracy and Trade Policy in the Developing Countries. International Organization 59 (1): Rodrik, Dani Trading in Illusion. Foreign Policy 23 March/April: 54. Busch, Mark L. and Eric Reinhardt Developing Countries and GATT/WTO Dispute Settlement. Journal of World Trade 37 (4): Rogowski, Ronald Political Cleavages and Changing Exposure to Trade. American Political Science Review 81 (4): Wade, Robert Hunter Is Globalization Reducing Poverty and Inequality? World Development 32 (4): Class 10 (August 2): International Finance and Development Stone, Randall W The Political Economy of IMF Lending in Africa. American Political Science Review 98 (4): Wade, Robert Choking the South: World Finance and Underdevelopment. New Left Review 38 (March-April). Nooruddin, Irfan and Joel W. Simmons The Politics of Hard Choices: IMF Programs and Government Spending. International Organization 60 (4): Jensen, Nathan M Democratic Governance and Multinational Corporations: Political Regimes and Inflows of Foreign Direct Investment. International Organization 57 (3): Li, Quan and Adam Resnick Reversal of Fortunes: Democratic Institutions and Foreign Direct Investment Inflows to Developing Countries. International Organization 57 (1): Kosack, Stephen and Jennifer Tobin. Funding Self-Sustaining Development: The Role of Aid, FDI and Government in Economic Success. International Organization 60 (1): Cohen, Benjamin J Phoenix Risen: The Resurrection of Global Finance. World Politics 48 (2): Haggard, Stephan and Sylvia Maxfield The Political Economy of Internationalization in the Developing World. International Organization 50 (1): Riddell, Roger Does Foreign Aid Really Work? New York: Oxford University Press. Bhagwati, J In Defense of Globalization With a New Afterword. Oxford: Oxford University Press. Stiglitz, Joseph Making Globalization Work. New York, NY: W.W. Norton & Company. Classes 11 and 12 (August 7 and 9): Research Paper Presentations
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