International Political Economy

Transcription

1 International Political Economy Interests and Institutions in the Global Economy Fourth Edition Thomas Oatley University of North Carolina Chapel Hill B Longman New York San Francisco Boston London Toronto Sydney Tokyo Singapore Madrid Mexico City Munich Paris Cape Town Hong Kong Montreal

2 Detailed Contents Preface ix CHAPTER 1 International Political Economy 1 What Is International Political Economy? 2 Studying International Political Economy 7 Traditional Schools of International Political Economy 7 Interests and Institutions in International Political Economy 12 The Global Economy in Historical Context 14 The Organization of the Book 19 CHAPTER 2 The World Trade Organization and the World Trade System 21 What Is the World Trade Organization? 22 A Closer Look: The Doha Round 26 Power and Interests in the World Trade System 28 Hegemonic Power and the Creation of the Postwar Trade System 28 Hegemonic Decline and the World Trade System 31 The Evolving World Trade Organization: New Directions, New Challenges 33 The Greatest Challenge? Regional Trade Arrangements and the World Trade Organization 38 Policy Analysis and Debate: The United States and Free-Trade Agreements 41 CHAPTER 3 The Political Economy of International Trade Cooperation 46 The Economic Case for Trade 47 The Gains from Trade in Partial Equilibrium 48 The Gains from Trade in General Equilibrium 53 Note: Each chapter ends with a conclusion, key terms, web links, and suggestions for further reading.

3 Detailed Contents The Politics of Trade Cooperation 59 A Closer Look: Distributive Bargaining and the Geneva Mini-Ministerial 63 The World Trade Organization and Trade Cooperation 65 CHAPTER 4 A Society-Centered Approach to Trade Politics 71 Trade Policy Preferences 72 Factor Incomes and Class Conflict 72 Policy Analysis and Debate: Trade Adjustment 75 Sector Incomes and Industry Conflict 76 Organizing Interests: The Collective Action Problem and Trade Policy Demands 80 Political Institutions and Interests in American Trade Politics 82 A Closer Look: The Politics of American Agricultural Policy 85 CHAPTER 5 A State-Centered Approach to Trade Politics 94 States and Industrial Policy 95 The Infant-Industry Case for Protection 96 A Closer Look: Criticism of the Infant-Industry Case for Protection 98 State Strength: The Political Foundation of Industrial Policy 100 Industrial Policy in High-Technology Industries 102 Strategic-Trade Theory 102 Strategic Rivalry in Semiconductors and Commercial Aircraft 106 Policy Analysis and Debate: Government Support of High-Technology Industries 107 CHAPTER 6 Trade and Development I: Import Substitution Industrialization 114 Domestic Interests, International Pressures, and Protectionist Coalitions 115 The Structuralist Critique: Markets, Trade, and Economic Development 121 Market Imperfections in Developing Countries 121 Market Imperfections in the International Economy 123 Domestic and International Elements of Trade and Development Strategies 124 Import Substitution Industrialization 125 A Closer Look: Import Substitution Industrialization in Brazil 129 Reforming the International Trade System 131 Policy Analysis and Debate: The Millennium Development Goals 134

4 vi Detailed Contents CHAPTER 7 Trade and Development II: Economic Reform 137 Emerging Problems with Import Substitution Industrialization The East Asian Model 141 Structural Adjustment and the Politics of Reform 149 A Closer Look: Economic Reform in China 155 Developing Countries and the World Trade Organization 157 Policy Analysis and Debate: The Global Food Crisis and the Doha Round CHAPTER 8 Multinational Corporations in the Global Economy 164 Multinational Corporations in the Global Economy 165 Economic Explanations for Multinational Corporations 174 Locational Advantages 174 Market Imperfections 177 Locational Advantages, Market Imperfections, and Multinational Corporations 180 Multinational Corporations and Host Countries 182 A Closer Look: Redistributing Venezuelan Oil Profits 185 CHAPTER 9 The Politics of Multinational Corporations 189 Regulating Multinational Corporations 190 Regulating Multinational Corporations in the Developing World 190 Regulating Multinational Corporations in the Advanced Industrialized Countries 194 A Closer Look: Sovereign Wealth Funds 195 Bargaining with Multinational Corporations 198 A Closer Look: Luring the German Luxury Car Producers to the U.S. South 202 The International Regulation of Multinational Corporations Policy Analysis and Debate: The Race to the Bottom CHAPTER 10 The International Monetary System 214 The Economics of the International Monetary System Exchange-Rate Systems 215 Balance of Payments 217 Balance-of-Payments Adjustment 219 A Closer Look: The Classical Gold Standard 220 The Rise and Fall of the Bretton Woods System 224 Creating the Bretton Woods System

5 Detailed Contents vii Implementing Bretton Woods: From Dollar Shortage to Dollar Glut 228 The End of Bretton Woods: Crises and Collapse 231 Policy Analysis and Debate: Who Should Adjust? 233 CHAPTER 11 Contemporary International Monetary Arrangements 237 International Financial Integration 238 A Closer Look: The Unholy Trinity 241 Life under Floating Exchange Rates 242 Managing Exchange Rates in a World of Mobile Capital 247 Exchange-Rate Cooperation in the European Union 247 Exchange-Rate Cooperation in the Group of Policy Analysis and Debate: A Cooperative Solution to the U.S. Financial Crisis? 253 Speculative Attacks and the Prospect for Exchange-Rate Reform 255 CHAPTER 12 A Society-Centered Approach to Monetary and Exchange- Rate Policies 260 Electoral Politics, the Keynesian Revolution, and the Trade-Off between Domestic Autonomy and Exchange-Rate Stability 261 Society-Based Models of Monetary and Exchange-Rate Politics 266 A Closer Look: Exchange-Rate Arrangements in the Organisation for Economic Co 7 operation and Development 267 The Electoral Model of Monetary and Exchange-Rate Politics 268 The Partisan Model of Monetary and Exchange-Rate Politics 271 The Sectoral Model of Monetary and Exchange-Rate Politics 274 Policy Analysis and Debate: A Strong Dollar or a Weak Dollar? 278 CHAPTER 13 A State-Centered Approach to Monetary and Exchange-Rate Policies 283 Monetary Policy and Unemployment 284 A Closer Look: The Natural Rate of Unemployment in the United States and the European Union 285 The Time-Consistency Problem 293 Commitment Mechanisms 294 Policy Analysis and Debate: Central-Bank Independence and Democracy 297 Independent Central Banks and Exchange Rates 301

6 viii Detailed Contents CHAPTER 14 Developing Countries and International Finance I: The Latin American Debt Crisis 306 Foreign Capital and Economic Development 307 Capital Flows in the Early Postwar Period 311 A Closer Look: The World Bank 3 1 3' Commercial Bank Lending and the Origins of the Latin American Debt Crisis 315 Managing the Debt Crisis 320 The Debt Regime 320 A Closer Look: The International Monetary Fund 321 The Sources of Bargaining Power 324 Policy Analysis and Debate: International Monetary Fund Conditionality 325 The Domestic Politics of Economic Reform 327 CHAPTER 15 Developing Countries and International Finance II: A Decade of Crises 332 The Asian Financial Crisis 333 Reforming the Crisis Management Regime 342 A Closer Look: Crisis in Argentina 343 Policy Analysis and Debate: Is the International Monetary Fund Still Relevant? 346 The Heavily Indebted Poor Countries 348 CHAPTER 16 Globalization: Consequences and Controversies 356 The Globalizing World Economy 357 Globalization and Income: Rising Poverty, Widening Inequality? 361 Globalization and "Sweatshops" 365 Policy Analysis and Debate: Labor Standards in the World Trade Organization 371 Trade and the Environment 372 A Closer Look: Environmental Disputes in the World Trade Organization 375 Glossary 381 References 393 Index 406