INTRODUCTION TO INTERNATIONAL POLITICAL ECONOMY (IPE)
Anna Leander
Fall 1995
Department of Political Science
CENTRAL EUROPEAN UNIVERSITY


Course Description

International Political Economy began to develop as an academic discipline in the early 1980s. Since then it has developed rapidly (in the Anglo-American academia). IPE is above all a reaction to the incapacity of conventional international relations theory (and economics) to deal adequately with the increasing importance of economic relations, the growing significance of non-state actors, and the related changes in what states can control and influence both domestically and internationally. It is essentially a discipline which attempts to make "globalisation" part of both the theoretical debates and applied studies.

The introductory course will concentrate on the study of globalisation as the core of the discipline. It will begin with a theoretical section which explains the origin of the subject, introduces the key approaches to the subject, and clarifies the choice of focus of the course (IPE is a very diverse and "eclectic" field which it would be impossible to cover completely). The bulk of time will then be spent on how different IPE theories look at and explain "globalisation," what implications they draw for individual states, and how they have founded their claims. A concluding session will raise the fundamental question of how the different theories attribute responsibility and (relatedly) how they see possibilities of different countries to influence the evolution.

The course will reflect the mixture of theory and applied studies characteristic of the subject. It correspondingly has two aims: The first is to give the students a concrete understanding of globalisation, i.e. a comprehension of the international economy, its institutions, how they affect states as well as the livelihood of citizens within them. The second is to provide students with the theoretical background necessary for orienting themselves within the academic international political economy debates as well as for seeing the origin and context of political arguments on the subject.

Course Requirements

(i) Seminar Participation (30%): Students will be expected to hand in a summary and comments on the required reading (marked with * below and reproduced in the reader) at each session.
(ii) Seminar Work (40%): In the seminar students will make a presentation (15%), act as discussant for at least one other presentation (5 %), a comparative book review ( 15 %), and make a briefing (5 %) .
(iii) Seminar Paper (30%): A seminar paper should allow students to look closer at one topic they chose.
(iv) Students are obviously invited to take an independent interest in the subject and refer to articles and themes they have found interesting in the course of their own reading.


Course Outline and Readings


Weekly units will consist of one seminar and one lecture except for the first two weeks.

General Readings

Textbooks (can be consulted for all sessions)
Jeffrey Frieden and David Lake (eds), International Political Economy
Steven Gill and David Law, The Global Political Economy (Hemel Hempstead; Harvester-Wheatsheaf, 1988).
Robert Gilpin, The Political Economy of International Relations (Princeton: Princeton UP, 1987).
Susan Strange, States and Markets (London: Pinter 1994, second edition).
Richard Stubbs and Geoffry Underhill (eds), Political Economy and the Changing Global Order (London: Macmillan, 1994).
Robert Tooze and Craig Murphy (eds), The New International Political Economy (London: Macmillan, 1991).

Journals and Newspapers (to be followed regularly)
International Organization; Review of International Political Economy; World Development; World Politics.
The Economist; The Financial Times; Le Monde Diplomatique.

I. Theoretical Origins and Approaches of IPE

Weeks 1-3. Origin and Definition of IPE:
Thursday, 21.9.1995: General Introduction
Thursday: 28.9.1995

Lecture: The Birth of IPE: Sovereignty at Bay and Marxism.
Readings:
*Peter F. Drucker, "The Changed World Economy," Foreign Affairs (Spring 1986), pp.768-791.
Peter F. Drucker, The New Realities (Oxford: Heinemann Professional Publishing, 1989).
Susan Strange, "International Economics and International Relations: A Case of Mutual Neglect," International Affairs, (April, 1970).
Martin Carnoy, Manuel Castells, Steven Cohen, and Fernando Cardoso, The New Global Economy in the Information Age: Reflections on Our Changing World (Penn State UP, 1993).

Monday: 2.10.1995
Lecture: (Re)Integrating Economics in Social Sciences:
Readings:
* Richard Swedberg & Ulf Himmelstrand & Göran Brulin, "The Paradigm of Economic Sociology. Premises and Promises," Theory and Society, vol. 16 (1987), pp. 169-213.
Fred Bloch & Margaret Somers, "Beyond the Economistic Fallacy. The Holistic Social Science of Karl Polanyi," . in Theda Skocpol, ed., Vision and Methodology in Historical Sociology (Cambridge: Cambridge University Press, 1984), pp. 47-84.
Mark Granovetter, "Economic Institutions as Social Constructions: A Framework for Analysis," Acta Sociologica, no. 35 (1992), pp. 3-11.
Mark Granovetter & Richard Swedberg, "Introduction", in their The Sociology of Economic Life (Boulder, C.O.: Westview Press, 1992), pp. 1-28.
Karl Polanyi, The Great Transformation: The Political and Economic Origins of Our Time (Boston: Beacon Paperback, 1957, 1st. edition 1944), chapters 4, 5, 19-21.
Fred Bergsten, Robert Keohane, and Joseph Nye, "International Politics and International Economics: A Framework for Analysis." International Organization (Winter, 1975).
James A. Caporaso and David P. Levine, Theories of Political Economy (Cambridge: Cambridge University Press, 1992), Introduction.
James Caporaso, "Dependence, Dependency, and Power in the Global System: A Structural and Behavioral Analysis," International Organization, vol. 32 (1978).
Robert Keohane and Joseph Nye, Power and Interdependence: World Politics in Transition (Boston: Little, Brown, 1977)
Robert O. Keohane and Joseph Nye, "Power and Interdependence Revisited," International Organization, vol. 41, no.4, (Spring 1987).

Thursday, 5.10.1995
Lecture: The Debate over Definitions: Comparative Political Economy. Politics of International Economic Relations. and International Political Economy.
Readings:
*Susan Strange, States and Markets, pp. 1-42.
Introductory sections of the textbooks cited above.
Martin Staniland, What is International Political Economy (New Have: Yale UP, 1985), pp. 99-148.

II. IPE as the Study of Globalisation: Theory and Practice

Weeks 4-5. The Global Environment and Regimes
Monday, 9.10.1995
Lecture: The Global Environment Illustrating the Problem of National Economic Policies: Fisheries Industries. and Energy.
Readings:
*Stubbs and Underhill, chap. 16.
Andrew Hurrell and Benedict Kingsbury (eds), The International Politics of the Environment. (Oxford: Clarendon Press, 1992) .
Frances Cairncross (1991) Costing the Earth (London: Business Books).
Ian Rowlands and Malory Greene (eds), Global Environmental Change and International Relations. (London: Macmillan, 1992).
Adam Swift, Global Political Ecology: The Crisis in Economy and Government (London: Penguin, 1993).

Thursday, 12.10.1995
Seminar: Is the attempt to introduce global environmental regulations a new form of exclusion, acting to the disadvantage of economically weaker countries?
Readings:
*David Pearce and Jeremy J. Warford, World Without End: Economics, Environment and Sustainable Development (Oxford UP, 1993).
Nazli Choucri, (ed.) Global Accord: Environmental Challenges and International Responses (London: MIT Press, 1993) .
Ida Koppen, "Free Trade Versus Environment," Catching Tuna Fish and Dolphins in Gatt Backwaters in Morgan, Lorentzen, Leander and Guzzini (eds) New Diplomacy in the Post-Cold War World (London: Macmillan, 1993), pp. 213-223.
World Commission on Environment and Development, Our Common Future (Oxford UP, 1987).
Caroline Thomas (ed.) Rio: Unravelling the Consequences (Ilford: Frank Cass, 1994).
Oran Young, "Political Leadership and Regime Formation: On the Development of Institutions in International Society." International Organization, vol. 45. no. 3, (Summer 1991), pp. 281-308.
Oran Young and Gail Osherenko, Polar Politics: Creating International Environmental Regimes (London: Cornell UP, 1993), chap 1 and 7.
Possible Briefings:
The Rio Conference
Key International Environmental Agreements (on the seabed, the use of space)
Green Peace (the organisation and main actions)
Facts and development of one selected issue (e.g. the use of nuclear energy in eastern europe; seal hunting in Namibia; fishing in Mexico; or the use of the rain forest in Brazil).

Monday, 16.10.1995
Lecture: Regime Theory: One View of International Order
Readings:
*Robert O. Keohane, After Hegemony. Cooperation and Discord in the World Political Economy (Princeton: Princeton UP, 1984), pp. 65-109.
Stephen Krasner, "Structural Causes and Regime Consequences: Regimes as Intervening Variables," International Organization, vol. 36, no. 2, (Spring 1982), pp. 185-205.
Stephen Krasner, "Regimes and the Limits of Realism: Regimes as Autonomous Variables," International Organization, vol. 36, no. 2, (Spring 1982), pp. 490-517.
Stephen Haggard and Beth Simmons, "Theories of International Regimes," International Organization vol. 41, no. 3 (summer 1987), pp. 490-517.
Helen Milner, "International Theories of Cooperation Among Nations: Strengths and Weaknesses, World Politics vol. 44, no. 3 (April, 1992), pp. 466-96.
Barry Buzan, "From International System to International Society: Structural Realism and Regime Theory meet the English School," International Organization vol. 47, no.3 (1993).
Volker Rittberger & P Mayer (eds), Regime Theory in International Relations (Oxford: Oxford UP, 1993).
Beate Kohler-Koch (ed.), Regime in den internationalen Beziehungen (Baden Baden: Nomos Verlagsg., 1989).

Thursday, 19.10.1995
Seminar: Do weaker countries make a difference for the development of international regimes?
Discuss with reference to the establishment of the South as an international actor.
Readings:
*Stephen Krasner, Structural Conflict. The Third World Against Global Liberalism (Berkeley: University of California Press, 1985), pp. 3-31.
Jagdish Bhagwati, "Introduction," in Jagdish Bhagwati and John Ruggie (eds), Power Passions and Purpose (MIT Press, 1989), pp. 1-17.
Stephen Haggard, "The Newly Industrializing Countries in the International System," World Politics, vol. 38, no. 2 (January 1986).
Robert L. Rothstein, "Epitaph for a Monument to a Failed Protest? A North-South Retrospective," International Organization, vol. 42, no. 4 (1988), pp. 725-747.
Sophie Mappa (ed.) Ambitions et Illusions de la Cooperation Nord-Sud: Lome IV (Paris: L'Harmattan, 1990).
Susan Strange, "Cave! Hic Dragones: A Critique of Regime Analysis," International Organization, vol. 36, no. 2 (1982), pp. 479-496
Robert L. Rothstein, Global Bargaining.
Possible Briefings:
The UN development organisations
The UN declarations on N-S issues
The non-aligned movement The group of 77
The Brandt Report

Weeks 6-7. The Global Financial System and Hegemonic Stability Theory
Monday, 23.10.1995
Lecture: The Rise and Fall of The Bretton Woods System.
Readings:
*Gilpin, The Political Economy of International Relations, pp. 118-170.
Andrew Walter, World Power and World Money (Harvester-Wheatsheaf, 1993).
Loukas Tsoukalis (ed.), The Political Economy of International Money (London: SAGE, 1985).
Ton Notermans, "The Abdication from National Policy Autonomy: Why the Macroeconomic Policy Regime Has Become so Unfavourable to Labor," Politics and Society, vol. 21, no. 2 (June 1993), pp. 133-167.
Susan Strange, Casino Capitalism (Oxford: Basil and Blackwell, 1986).
Timothy J. Sinclair, "Between State and Market: Hegemony and Institutions of Collective Action under Conditions of International Capital Mobility," Policy Science vol 27, no.4 (1994), pp. 447466.
Eric Helleiner, "Why Have States Been More Willing to Liberalize Capital Controls the Trade Barriers? Policy Science vol. 27, no.4 (1994), pp. 299-318.

Thursday, 26.10.1995
Seminar: Discuss the Implications of International Financial Instability for Indebted Countries.
Readings:
*Susan George (1988) A Fate worse than Debt (London: Penguin), chap.
David Felix, "International Capital Mobility and Third World Development: Compatible Marriage or Troubled Relationship," Policy Science vol. 27 (1994), pp. 365-394.
Cheryl Payer, Lent and Lost. Foreign Credit and Third World Development (London and New Jersey: Zed Books, 1991).
Irving S. Friedman, "Private Bank Conditionality: Comparison with the IMF and the World Bank," in John Williamson, ed., IMF Conditionality (Washington DC: Institute for International Economics, pp. 109-124.
Michael Webb, "International Economic Structures, Government Interests and International Coordination of Macro-Economic Adjustment Policies, International Organization vol. 45, no. 4 (Autumn, 1991).
Phillip Cerny, Finance and World Politics (Cheltenham: Edward Elgar, 1993).
Possible Briefings:
New Financial Instruments
The IMF
The World Bank
The International Debt of Central and Eastern Europe
The London and Paris Groups

Monday, 30.10.1995
Lecture: The Theory of Hegemonic Stability
Readings:
*Robert O. Keohane, "The Theory of hegemonic Stability and Changes in International Economic Regimes, 1967-1977," in Ole Holsti, Randolph Siverson, and Alexander George (eds), Change in the International System (Boulder: Westview Press, 1980), pp. 131-162).
Duncan Snidal, "The Limits of Hegemonic Stability Theory, " International Organisation vol.47, no.4 (1984).
Charles Kindleberger, "Dominance and Leadership in the International Economy. Exploitation, Public Goods and Free Riders." International Studies Quarterly vol 25, no. 2, pp. 242.253.
Isabelle Grunberg, "Exploring the Myth of Hegemonic Stability, " International Organization, vol 44, no. 4 (Autumn, 1990).
Michael C. Webb & Stephen D. Krasner, "Hegemonic Stability Theory: An Empirical Assessment," Review of International Studies, vol. 15, no. 2 (1989), pp. 183-198.

Thursday, 2.11.1995
Seminar: Does the US have a Special Responsibility for Establishing New Rules for International Finance After the End of Bretton Woods?
Readings:
*David Calleo and Susan Strange, "Money and World Politics," in Susan Strange (ed.) Paths to International Political Economy (London: Frances Pinter: 1984), pp. 91-126.
Geoffry Underhill, "Markets Beyond Politics? The State and the Internationalisation of Finance, European Journal of Political Research vol. 19 (March 1991), pp. 197-225.
Robert Keohane, After Hegemony. Cooperation and Discord in the World Political Economy (Princeton: Princeton UP, 1984), chap.
Joseph Nye, "Soft Power," Foreign Policy, no.80 (Fall 1990), pp. 153-171.
Joseph Nye, Bound to Lead: The Changing Nature of American Power, chap.??
Susan Strange, "The Persistent Myth of Lost Hegemony," International Organization vol 41 (1987).
Bruce Russett, "The Mysterious Case of Lost Hegemony or Is Mark Twain Really Dead," International Organisation vol 39 (1985).
Arthur Stein, "The Hegemon's Dilemma: Britain, the United States and the International Economic Order, International Organization vol. 38, no. 2 (1984).
Louis W. Pauly, "National Financial Structures, Capital Mobility, and International Economic Rules: The Normative Consequences of East Asian, European, and American Distinctiveness, Policy Science vol. 27 (1994), pp. 343-363.
Richard Dale, The Regulation of International Banking.

Weeks 8-9. Multilateralism and International Trade
Monday, 6.11.1995

Lecture: The Growth of International Trade
Readings:
John G. Ruggie, "International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order," International Organization, vol. 36, no. 2 (Spring 1986).
John G. Ruggie, "Embedded Liberalism Revisited: Institutions and Progress in International Economic Relations," in Emanuel Adler and Beverly Crawford (eds), Progress in Postwar International Relations (New York: Cambridge UP, 1991), pp. 202-234.

Thursday, 9.11.1995
Seminar: How did "Embedded Liberalism" help/hinder developing countries?
Readings:
*Diana Tussie, "Trading in Fear? US Hegemony and the Open World Economy in Perspective," in Murphy and Tooze.
Richard Glover and Diane Tussie (eds), The Developing Countries and World Trade (Boulder: Lynne Rienner, 1993).
Jill Hills, "A Global Industrial Policy: US Hegemony and Gatt, " Review of International Political Economy, vol 1, no. 2 (summer 1994).
Albert Fishlow, "Latin American Failure Against the Backdrop of Asian Success," Annals of the American Academy of Political and Social Science, no. 505 (September 1989), pp. 116128.
Lars Annell & B. Nygren, The Developing Countries and the World Economic Order.
Possible Briefings:
GATT/WTO,
The Preferential agreements of the EU, The EU Trade Policy
The NAFTA, The ASEAN, The South West African Trading Union
Redirection of trade in former COMECON

Monday, 13.11.1995

Lecture: The Changing Nature of International Trade and Protection
Readings:
*Stubbs and Underhill, chap. 13, 15 and 27.
Richard Pomfret, Unequal Trade: the Economies of Discriminatory International Trade Policies. (1988).
Geoffrey Underhill, "Negotiating Financial Openness," in Phillip Cerny (ed.) Finance and World Politics (Edward Elgar, 1993).
Helen Milner, Resisting Protectionism: Global Industries and the Politics of International Trade (Princeton: Princeton UP, 1988).
Mark Casson, Multinationals and World Trade. Vertical Integration and the Division of Labour in World Industries (London: Allen & Unwin, 1987).
Daniel C. Esty, Greening the GAZ: Trade, Environment and the Future (Wahington, DC: Institute for International Economics, 1994).
Robert Repetto, Trade and Sustainable Development (Geneva: UNEP, 1994).

Thursday, 16.11.1995

Seminar: What does the Changing Nature of Trade Entail for "Strategic Trade Policies"?
Readings:
*Paul Krugman, Strategic Trade Policy, chap.
Ronald Dore, "Rethinking Free Trade," in Morgan, Lorentzen, Leander and Guzzini (eds) New Diplomacy in the Post-Cold War World (London: Macmillan, 1993), pp. 148-157.
Paul Krugman, "Competitiveness: A Dangerous Obsession, " Foreign Affairs, vol. 73, no. 2, (1994), pp. 28-44. (and the discussion in the following issues).
Richard Rosecrance, The Rise of the Trading State.
J.Clegg Multinational Enterprise and World Competition.

Weeks 9-10. The French School of Regulation and the Internationalisation of Production
Monday, 20.11.1995
Lecture: The Growth of Multinational Production
Readings:
*P. Hertner & G. Jones, Multinationals; Theory and History (Florence: The European University Institute Press, 1986), chapter by John Dunning.
John H. Dunning, Explaining International Production.
Vernon, Sovereignty at Bay, chap. on product cycle and on the conflict of sovereignties
Lynn Mytelka (ed.) Strategic Partnerships. States, Firms and International Competition (Rutherford et al.: Fairleigh Dickinson UP, 1991).
Pierre Grou, The Financial Structure of Multinational Capitalism (New Hampshire et al.: 1986).
Charles P. Oman, "New Forms of Investment in Developing Countries., " in Theodore H. Moran, ed., Investing in Development: New Roles for Private Capital? (New Brunswick, N.J.: Transaction Books, 1986), pp. 131-149.

Thursday, 23.11.1995
Seminar: Is it useful to aim at the establishment of a "national" production?
Readings:
*John M. Stopford & Susan, with John Henley Strange, Rival States, Rival Firms. Competition for World Market Shares (Cambridge et al.: Cambridge University Press, 1991).
Peter B. Evans, Dependent Development. The Alliance of Capital, State, and Local Capital in Brazil (Princeton: Princeton University Press, 1979).
Sanjaya Lall, "Technological Capabilities and Industrialization," World Development, vol. 20, no. 2 (1992), pp. 165-186.
Carl J. Dahlman & Bruce Ross-Larson & Larry E. Westphal, "Managing Technological Development. Lessons from Newly Industrializing Countries," World Development, vol. 15, no. 6 (1987), pp. 359-388.
Possible Briefings:
Key International Conventions on the Regulation of Foreign Investments
The nationalisations in the oil-industry
New Forms of Foreign Direct Investments
Direction and Type of International Investment Flows
The structure of one multinational firm (any one firm)

Monday, 27.11.1995
Lecture: The place of the regulation school in explanations of international production
Readings:
*Bob Jessop, "Regulation Theories in Retrospect and Prospect," Economy and Society col l9, no.2 (1990), pp. 153-216.
Alain Lipietz, Mirages and Miracles. The Crisis of Global Fordism (London: Verso, 1987).
Giovanni Dosi and Christopher Freeman, Richard Nelson, Gerald Silverberg, Luc Soete, eds Technical Change and Economic Theory (London and New York: Pinter Publisher, 1988).

Thursday, 30.11.1995
Seminar: Does the (alleged) passage to Post-Fordism entail increased inclusion or increased exclusion in international production for "late industrialisers"?
Readings:
*Raphael Kaplinsky, "TNCs in the Third World: Stability or Discontinuity, " Millennium, vol. 20, no. 2 (1991), pp. 257-268.
Hubert Schmitz, Flexible Specialization - A New Paradigm of Small-Scale Industrialization ? (Brighton, University of Sussex: Institute of Development Studies: Discussion Paper 261, May 1989).
Further articles on post fordism

Week 11. International Discourses and the Construction of Options
Monday, 4.12.1995
Lecture: Discourses and changing international orders
Readings:
*Albert O. Hirschman, "Policymaking and Policy Analysis in Latin America - A Return Journey," A in Hirschman (ed.), Essays in Trespassing: Economies to Polities and Beyond (Cambridge: Cambridge University Press, 1984, 1st. edition 1981), pp. 142-166.
Emanuel Adler, "Ideological Guerillas the Quest for Technological Autonomy: Brazil's Domestic Computer Industry," International Organization, vol. 40, (1986).
Stephen Gill (ed.) Gramsci, Historical Materialism and International Relations (Cambridge: Cambridge UP, 1993), chap ?.
Robert Cox, "Gramsci, Hegemony, and International Relations: an Essay in Method, " Millennium vol. 12 (1983), pp. 162-175.
Bill Warren, Imperialism: Pioneer of Capitalism (London: New Left Books, 1980), pp.?
Steven Lukes, Power: A Radical View (London: Macmillan, 1974).
Alexander Wendt, "Anarchy is What States Make of It: the Social Construction of Power Politics," International Organization, vol. 44. no. 4 (autumn 1990), pp. 431478.
Bertrand Badie, L'Etat Importe. Essaie sur l'Occidentalisation de l'Ordre Politique (Paris: 1992).
Bertrand Badie & Maire-Claude, Le Retournement du Monde. Sociologie de la Scene Internationale (Paris: Presses de la Fondations Nationale des Sciences Politiques & Dalloz, 1992), pp. ?

Thursday, 7.12.1995
Seminar: Do you agree with the claim that the "Washington Consensus" does and should shape the understanding of economic policy options?
Readings:
*John Williamson, "The Washington Consensus, "Democracy and the Washington Consensus, " World Development, vol 21, no. 8, pp. 1329-1336.
The Special issue on the East Asian NICs, World Development vol. 22, no. 4 (1994).
Miles Khaler, "Orthodoxy and Its Alternatives: Explaining Approaches to Stabilization and Adjustment," in Joan M. Nelson, ed., Economic Crisis and Policy Choice. The Politics of Adjustment in the Third World (Princeton: Princeton University Press, 1990), pp. 33-62.
Atul Kohli, "The Political Economy of Development Strategies: Comparative Perspectives on the Role of the State," Comparative Politics, vol. 19, no. 2 (January 1987), pp. 233-246.
Michael Shafer, Deadly Paradigms (Princeton: Princeton UP, 1987).
Katryn Sikkink, Ideas and Institutions: Developmentalism in Brazil and Argentina (Ithaca: Cornell UP, 1991).

Week 12. Concluding Sessions
Monday, 11.12.1995 and Thursday, 14.12.1995
Debate on how different theories attribute responsibility for the evolution and change of the international economic order.



CRC-Curriculum Resource Center
CEU Budapest, Hungary
Modified: July, 1996

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