THE POLITICAL ECONOMY OF NATIONALISM
CEU, Economics Department





Lecturer: Prof.  Ugo Pagano
Course: 2 credit
 

Nationalism is a political doctrine according to which political communities should coincide
with ethnic groups. Nation-states have characterised the emergence of the modern capitalist
economies and the development of markets but many of their traditional economic powers
cannot survive in a "global" economy.

Aim of the Course

The purpose of this course is to consider the following questions:

- What has been the nature of the relation between the emergence of Nation States and the
development of markets?

- Which public goods do Nation States provide? Are there alternative institutions that can
provide them?

- How can rational choosers be some times so nationalistic? Can standard economic theory
explain nationalism? Does evolutionary economics give a better explanation of nationalism?
Are phenomena like Nationalism telling us something on human nature that is fundamentally
different from Homo Oeconomicus?

- Are "global" markets really decreasing the degree of cultural and institutional diversity? Do
nationalism and nation-states have a future? Are the National Economies increasingly
standardized by Global Rights such as those concerning Intellectual Property or the different
Nations may even increase their economic diversity on the basis of the principle of "Comparative
Institutional Advantage"?
 
 

Course Outline:

1) Market economies, nation-states and the principles of the division of labour.

2) Positional goods, public goods, rent-seeking: explanations of the size of nations.

3) Agrarian societies, industrial societies and the emergence of nationalism.

4) Cultural standardisation and social protection.

5) Rational choice vs. emotions: evolutionary biology and the economic assumptions on human
nature.

6) Evolutionary economic theories and nationalism

7) Globalisation: crisis of the nation-states and attenuation nationalistic feelings?

8) Globalization fostering economic diversity: the theory of comparative institutional advantage.

9) WTO and TRIPS: towards a new model of capitalist accumulation?
 
 

References:

Anderson B. (1991) Imagined Communities. Verso, London. pp. 1-7 and 141-154.

Battistini A., Pagano U. (2004) Fertilization Systems and the Evolution of Human Capabilities.
CEU Working paper no. 8.

Bowles S., Choi J. (2004) The co-evolution of love and hate. In Van Parijs P. Ed. Cultural Diversity
versus Economic Solidarity. De boeck, Brussels.

Bowles S., Pagano U. (2003) Economic Integration, Cultural Standardisation and the Politics
of Social Insurance. Quaderni del Dipartmento di Economia Politica N. 408 Università di Siena,
Siena. Forthcoming in Bardhan P. et al. Globalization and inequality. Princeton, University Press.

Camerer C., Loewenstein G., Prelec D. (2005)Neuroeconomics: How Science can Inform
Economics. Journal of Economic Literature pp. 9-65.

Cooter R. D. (2000) The Strategic Constitution. (Chapter 5 and 6). Princeton University Press,
Princeton.

Evans, D. (2001) Emotion. The Science of Sentiment. (Chapter 2) Oxford University Press,Oxford

Gellner E. : The Coming of Nationalism, and its Interpretation. in S. Bowles, M. Franzini and
U. Pagano (eds): The Politics and Economics of Power, (1999)  Routledge, London

Hardt, M. and Negri, A. (2000): Empire, Harvard University Press, Cambridge, Mass. pp. xi-21.

Held, D. and McGrew, A. ; The Great Globalization Debate: An Introduction , in D. Held and
A. McGrew (eds): The Global Transformations Reader (2000), Polity Press, Cambridge

Huntington, S.P. (1996): The Clash of Civilizations? The Debate, Foreign Affairs, New York
pp. 1-25.

La Ferrara E. (2004) Solidarity in Heterogeneous Communities. In Van Parijs P. Ed. Cultural
Diversity versus Economic Solidarity. De boeck, Brussels.

Maynard-Smith, J.(1982), Evolution and the Theory of games, Cambridge University Press
(pp. 1-27).

Maynard Smith J., Szathmary E. (1995) The Major Transitions in Evolution. Freeman, Oxford
and New York.

Pagano U. (1991) Property Rights, Asset Specificity, and the Division of Labour under
Alternative Capitalist Relations. Cambridge Journal of Economics. Vol. 15 No 3. Reprinted
in G. Hodgson (1993) The Economics of Institutions Edward Elgar, Cheltenham

Pagano U. (1995) Can Economics Explain Nationalism? in A. Breton, G. Galeotti, P. Salmon
and R. Wintrobe (eds.) Nationalism and Rationality, Cambridge University Press, Cambridge.

Pagano U. (1999) Is Power an Economic Good? Notes on Social Scarcity and the Economics
of Positional Goods. In Bowles S., Franzini M., Pagano U. (1999) The Politics and the Economics
of Power. Routledge, London.

Pagano, U. (2000)  Bounded Rationality, Institutionalism and the Diversity of Economic Institutions,
in F. Louca and M. Perlman (eds) Is Economics an Evolutionary Science? , Edward Elgar,
Cheltenham, U.K.

Pagano U. (2001) The Origin of Organizational Species. In Nicita A., Pagano U. The Evolution of
Economic Diversity. Routledge, London and New York.

Pagano U. (2003) Nationalism, Development and Integration: the Political Economy of Ernest
Gellner. Cambridge Journal of Economics V. 27 N. 5 pp.623-646.

Pagano U. (2004) Cultural Diversity, European Integration and the Welfare State. In Van Parijs P.
Ed. Cultural Diversity versus Economic Solidarity. De boeck, Brussels.

Rodnik, D.  Has Globalization Gone Too Far?  in  D. Held and A. McGrew (eds): The Global
Transformations Reader (2000), Polity Press, Cambridge

Scotchmer Suzanne (2005) Innnovation Incentives and IPR. Forthcoming MIT press.

Smith, A. Towards a Global Culture?  in  D. Held and A. McGrew (eds): The Global Transformations
Reader (2000), Polity Press, Cambridge

Wintrobe R. (1995) Some Economics of Ethnic Capital Formation and Conflict. In A. Breton,
G. Galeotti, P. Salmon and R. Wintrobe (eds.) Nationalism and Rationality, Cambridge University
Press, Cambridge.