Introduction to International Political Economy



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Introduction to International Political Economy Fall 2008 Monday-Wednesday, 3:30-4:45 Buchanan Hall 1910 Department of Political Science Global and International Studies Political Science 186 Global Studies 123 Professor Benjamin J. Cohen Teaching Assistants: 3812 Ellison Hall Heather Arnold (hlarnold@umail.ucsb.edu) Tel: 893-8763 Gina Gattari (gattari@umail.ucsb.edu) Email: bjcohen@polsci.ucsb.edu Karen Pitakdumrongkit (kaewkamol@ umail.ucsb.edu) Office hours: Wednesday, 1:00-3:00 Description The focus of this course is on the politics of international economic relations. Alternative analytical and theoretical perspectives will be examined for their value in helping to understand and evaluate the historical development and current operation of the world economy. Books, etc. The following textbook is required for this course and is available for purchase at the bookstore: David N. Balaam and Michael Veseth, Introduction to International Political Economy, fourth edition (2008). [Hereafter referred to as BV.] In addition to the textbook, additional readings are assigned from other sources. All of these additional materials are included in a course packet available from Associated Students Publications Service, UCSB University Center (phone: 893-4471). Selections from the course packet are marked in this syllabus with an asterisk (*). The additional readings are also available from the reserve desk at the UCSB library. All readings are required.

Course requirements/grades Students are expected to attend all lectures (Monday and Wednesday, 3:30-4:45) as well as one discussion section each week. You will also be required to write two short papers and to take a comprehensive three-hour final examination. Each paper will be worth 20 percent of a student s final grade; the final examination will be worth 40 percent. The remaining 20 percent will depend on attendance and participation in class sections. Each paper will be a maximum of five (5) double-spaced pages in length. The first paper will be due on October 20; the second, on November 12. The topics of the two papers will be as follows: Paper no. 1 (due October 20): A Central Theoretical Issue of International Political Economy, and What Theory and History Have to Say About It. In this paper, you will be expected to identify and discuss one central theoretical issue in the specialized field of inquiry known as International Political Economy. The choice of issue is up to you; examples of possible topics will be offered in class. You will be expected to answer the following questions: (1) What is the issue the core question to be answered? (2) What answers are offered by the different theoretical perspectives of IPE? (3) What can we learn about the issue from the study of international economic history? The aim of the paper is to integrate your understanding of abstract theory and historical fact: to suggest what theory and history each have to say about the other, and what both have to say about the study of International Political Economy today. Paper no. 2 (due November 12): An Urgent Problem Facing the International Political Economy Today, and Some Thoughts About its Origins and Possible Solution. In this paper, you will be expected to choose some contemporary problem in international economic relations and evaluate alternative policy solutions. The choice of problem is also up to you. The focus of the paper should be on the comparative effectiveness and feasibility of alternative possible policies, and should address the following questions: (1) What is the problem, what are its origins, and why is it important? (2) What solutions might be proposed, and what are their strengths and weaknesses? (3) Is any one policy solution clearly superior as a way to solve the problem, or does the problem require a combination of solutions? The aim of the paper is comparative analysis, not mere description. That means that you must try to do three things: (a) identify the key issues involved in the problem you choose to discuss; (b) identify and evaluate alternative possible solutions; and (c) make a case for your own preferred policy choice. In making a case, it is not enough simply to state your opinion; you must also say, to the extent possible, why what you believe is better than any other choice available. In other words, you must compare and contrast relevant possibilities, weighing and evaluating the strengths and weaknesses of each as best you can.

The final examination will include both short-answer/identification questions and one essay question. The examination will encompass all the material covered in the readings for this course. The final examination is scheduled for Saturday, December 13, 12:00-3:00 pm. Course Procedures Although the bulk of class time on Mondays and Wednesdays will be taken up with formal lectures, questions will be encouraged. Students should feel free to ask for clarification or elaboration of any aspect of any of the material covered in the general lectures. Students should also feel free to offer their own opinions or comments regarding the views expressed by the instructor. In addition, an effort will be made to integrate current events into the content of the course by beginning each session with a brief discussion of any new or developing issues in international political economy. Students are encouraged to keep abreast of relevant developments by reading some major newspaper on a regular basis and/or by watching or listening to daily news broadcasts on television or radio. One question on the final examination will be based on these class discussions. An outline of topics to be covered in the formal lectures is available on the instructor s home page (http://www.polsci.ucsb.edu/faculty/cohen). Discussion sections will be structured to explore in greater detail the material covered in the lectures as well as in the readings. Students will be expected to participate actively in discussion and to do all the reading for each week. As indicated, 20 percent of your final grade will depend on attendance and participation in these sections.

Readings September 29: Introduction -- Conceptual and Analytical Issues BV, ch. 1. *R. Gilpin, Global Political Economy (2001), ch. 4. *P. Hirst and G. Thompson, Globalization in Question (second edition, 1999), pp. 7-13. October 1: Alternative Perspectives on Political Economy BV, chs. 2-4. October 6: Alternative Perspectives on Globalization *R.O. Keohane and J.S. Nye, Power and Interdependence (3rd ed., 2001), pp. 228-248. *M.R. Brawley, The Politics of Globalization (2003), ch. 2. October 8: International Economic History -- Nineteenth Century *T.D. Lairson and D. Skidmore, International Political Economy (third edition, 2003), pp. 43-57. *R. O Brien and M. Williams, Global Political Economy (second edition, 2007), ch. 3. October 13: International Economic History -- Interwar Period *T.D. Lairson and D. Skidmore, International Political Economy (third edition, 2003), pp. 57-64. *C.P. Kindleberger, The World in Depression (1973), chs. 1, 14. October 15: International Economic History -- Postwar Period *R. O Brien and M. Williams, Global Political Economy (second edition, 2007), pp. 115-133. *T.H. Cohn, Global Political Economy (fourth edition, 2008), ch. 2. October 20, 22, 27: International Trade BV, ch. 6. *M. Krauss, How Nations Grow Rich (1997), ch. 3. *D. Rodrik, Has Globalization Gone Too Far? (1997), chs. 1, 5. *S.J. Evenett, Getting Over Those Doha Blues (www.voxeu.org, 1 August 2008). *J. Francois, Doha Round Failure: This is the Way the Round Ends... (www.voxeu.org, 1 August 2008).

October 29, November 3, 5: Money and Finance BV, chs. 7-8. *D. Salvatore, Problems and Reforms of the International Monetary System, in Fratianni, Savona, and Kirton, eds., Governing Global Finance (2002), ch. 6. *B. Eichengreen, Global Imbalances and the Lessons of Bretton Woods (2007), ch. 1. *B.J. Cohen, Toward a Leaderless Currency System (forthcoming). *R.M. Kimmitt, Public Footprints in Private Markets:: Sovereign Wealth Funds and the World Economy, Foreign Affairs (January 2008), 119-130. November 10: Regionalism *T.H. Cohn, Global Political Economy (fourth edition, 2008), ch. 9. November 12, 17: Economic Development BV, ch. 15. *J.E. Stiglitz, Globalization and Its Discontents (2002), ch. 1. *J. Bhagwati, In Defense of Globalization (2004), ch. 5. November 19: The Environment BV, ch. 20. November 24: Energy *J.E. Spero and J.A. Hart, The Politics of International Economic Relations (sixth edition, 2003), ch. 9. November 26: Thanksgiving tomorrow no class December 1: The Multinational Corporation BV, ch. 17. December 3: Prospects for the Future BV, ch. 21. *R.Gilpin, Global Political Economy (2001), ch. 15. * The New Titans: A Survey of the World Economy, The Economist, 16 Sept 2006. December 13: Final examination