LECTURER Aleksander Surdeja
TITLE OF COURSE Towards International Public Policy: Links between Domestic and Foreign Public Policy Issues and Rational of IPP

Introduction

The course "Towards International Public Policy" which I taught in the Cracow University of Economics in Spring 2001 belongs to the group of courses from the discipline of International Political Economy.

This course offers a supplementary training to the students of economics and management in the Cracow University of Economics.

The course has introduced students to the study of international public policy issues in their economic and political dimensions. Special attention has been devoted to the problems of global governance and the institutional set-up indispensable for the delivery of international public goods. At the end of the course students should get a grasp of the importance of political and institutional arrangements for stable and durable international economic relations.

Objectives of the course

The course was designed to explore the fruitfulness of a notion of international public good when applied to the analysis of various economic and not strictly economic issue areas. The theory of international public goods was not only studied to help identify areas of potential co-operation between states, governments and international non-governmental actors, but also to understand why it is so difficult to initiate international co-operation and sustain it over longer periods.

Learning Outcomes

At the completion of the course students have been able to understand the dynamics of international public policies, to gather the information for an analysis of a given international public policy issue and to write a policy issue document or to create a web site devoted to a given international policy issue.

Course Detail

Lecture Synopsis

Week 1

Introduction: The Sketch of a Theory of International Public Goods

The lecture discusses the usefulness and limits of the economic approach to international politics. In brief, students learn criteria indispensable for the identification of international public goods (IPGs) and analyse mechanisms, which disturb or facilitate co-operation of international actors in provision of IPGs.

Week 2

Main Actors and Mechanisms of International Co-operation

The lecture introduces to students main typologies of actors in international political and economic life and it discusses the causes of the change in their relative importance. Students also get familiar with the basic mechanisms of international co-operation from spontaneous mutual adjustments, via negotiated multilateral agreements to hegemony and unilateral impositions.

Week 3

Globalisation and International Regulatory Co-operation

The lecture analyses the links between international co-operation and domestic regulatory regimes. The aim is to show that with the increasing intensity of international economic co-operation domestic regulatory regimes become crucial for its practical success. On the example of the parable of teleshopping students learn for example how international electronic commerce is dependent upon domestic regulations of telecommunication, health and safety standards or parcel delivery.

Week 4

Managing Global Financial Instability

The lecture discusses the causes of global financial instability and its consequences for international economic co-operation and the economic development of less advanced countries. Students also learn about the advantages and disadvantages of possible solutions to this problem: from external monitoring of domestic macroeconomic polices of individual countries to the creation of global lender of last resort.

 

Week 5

Managing International Health Problems

With this lecture begins a series of meetings devoted to specific issues which can be included to the list of international public goods (and bads).

This lecture focuses on explaining why public health even in distant countries has become a matter of concern for other countries and what various international initiatives try to achieve in order to reduce the exposure of international society to public health risks generated by the intensification of international economic exchanges and travels.

Week 6

International Co-operation in Regulating Pharmaceutical Markets

The lecture discusses potential and actual conflicts stemming from regulations of international trade in pharmaceuticals.

These regulations should balance the protection of investors in research in pharmaceuticals (international patent law) with the need to assure safety of patients and speed in reaching new markets. Recent disputes over the costs of drugs to cure HIV patients illustrate the core of these problems.

Week 7

Cultural Heritage as Public Good

The lecture introduces the economic analysis (i.e., cost benefit analysis) of culture and cultural monuments. Students get insights into the role of economic justifications in decisions to support restoration works in places dispersed around the world and included in the list of world cultural monuments.

Week 8

Managing Global Cyberspace

Although the development of the Internet is chiefly a matter of activities of private firms and individuals, the emergence of "global cyberspace" calls for the analysis of the public role in broadening access to Internet and regulating its use.

The lecture discuss major international initiatives in these area and mechanisms used to achieve public goals.

Week 9

International Co-operation in Crime Prevention

An increasing economic openness and acceleration of movements of funds, goods and people create larger room for international criminal activities like arms and drugs trafficking.

The lecture discusses problems posed by international crime and forms of international co-operation to counter them.

Week 10

International Co-operation in Preventing Money Laundering

The creation of global financial markets makes it more difficult the control of sources of funds in circulation and hence the control of their legitimacy.

Since money laundering is an international public bad, the lecture analyses the forms and problems related to international co-operation to counter it.

Week 11

International Co-operation in Preventing Corruption

Corruption becomes a serious obstacle to economic development in many countries in the World since it serves the corrupt elites of these countries and harms societies at large.

The lecture shows students how various international organisations try to build into their programs anti-corruption checks and what various countries do to limit corrupt behaviour by multinational corporations.

Week 12

Economic Openness: How Nations Can Take Advantage of It?

Not denying the validity of theoretical case in favour of free trade the lecture discusses practical problems in freeing markets and stabilising international economic co-operation.

Students discuss cases of international conflicts over trade issues and analyse policy mechanisms helping to prevent (or solve) such problems.

 

Week 13

Policies and Institutions for Delivery of Global Public Goods

The lecture discusses the need for a new institutional framework to enhance and stabilise international economic co-operation. Students are involved in discussing how regionalism complements (and/or) substitutes globalisation in different parts of the world. In addition students should be able to analyse relative merits of various institutional solutions to the problems raised by economic globalisation.

Week 14

Global Governance: Towards a World of Positive Sum Games – seminar with students debate

Since a group of students prepared a web site on a chosen global public policy problem, students present their product and this serves as a basis for discussion concerning, among others, the following questions:

  • how do we identify a global public policy issue?
  • what dimensions are indispensable for a global public policy analysis?
  • what mechanisms could we use to encourage international co-operations?
  • how is a given global public policy implemented in practice?
  • how do we evaluate the success (or failure) of such a policy?

 

Student Assessment

Students were assessed on a basis of a set of the following criteria:

  • active class participation (since all students got a copy of the reader they were asked to read the assigned readings before each lecture, students were involved in discussion when it was logically necessary, in addition each class started by a 10-15 minutes period during which students could ask language and terminology clarification questions);
  • a final written examination wirh a set of (5 to 7) problem questions, or;
  • presenting a web site of their own on a given global public policy problem.

Reading list

  1. Introduction: The Sketch of a Theory of International Public Goods

Required Reading:

  • Inge Kaul, Isabelle Grunberg and Marc A. Stern, Defining Global Public Goods, in Global Public Policy (ed. Inge Kaul, Isabelle Grunberg and Marc A. Stern), Oxford UP 1999, p. 2-19.
  • Aleksander Surdej, Taking Advantage of Economic Openness, in Emergo, Spring 2000.

Additional reading:

  • Joseph E. Stiglitz, International financial institutions and the provision of international public goods, in EIB Paper, vol. 3 n. 2/1998, p.117-132.

2. Main Actors and Mechanisms of International Co-operation

Required reading:

  • Lisa L. Martin,The Political Economy of International Cooperation in Global Public Policy (ed. Inge Kaul, Isabelle Grunberg and Marc A. Stern), Oxford UP 1999, p. 51-65.

Additional reading:

  • Peter F. Drucker, The post-capitalist world, in The Public Interest, n. 109, Fall 1992, p. 89-100.
  • Gunther G. Schulze and Heinrich W. Urpsrung, Globalisation of the Economy and the Nation State, in The World Economy, May 1999, p. 295-350.
  • Wolfgang H. Reinicke,The Other World Wide Web: Global Public Policy Networks, in Foreign Policy, Winter 1999-2000, p.44-57.

 

3. Globalisation and International Regulatory Co-operation

Required reading:

  • Roger G. Noll, Internationalising Regulatory Reform, in Pietro S. Nivola (ed.)Comparative Disadvantages?, Brookings Institution Press, Washington 1997, p.319-356.

Additional reading:

  • G. Majone, (1996) The European Commission as regulator, in G. Majone, (ed.)Regulating Europe, Routledge.
  • V. Tanzi,(1999).Is there a Need for a World Tax Organization? In Assaf Razin & Efrain Sadka (ed.)The Economics of Globalization, Cambridge UP.

4. Managing Global Financial Instability

Required reading:

  • Charles Wyplosz,International Financial Instability in Global Public Policy (ed. Inge Kaul, Isabelle Grunberg and Marc A. Stern), Oxford UP 1999, p. 152-189.

Additional reading:

  • K. Rogoff (1999) International Institutions for Reducing Global Financial Instability, in Journal of Economic Perspective, vol. 13, nr 4, Fall 1999, pages: 21-42.
  • Summers, Lawrence H.Reflections on Managing Global Integration, in Journal of Economic Perspectives, vol. 13, nr 2, Spring 1999, p.3-18.

5. Managing International Health Problems

Required reading:

  • Lincoln C. Chen, Tim G. Evans and Richard A. Cash, Health as a Global Public Good, in Global Public Policy (ed. Inge Kaul, Isabelle Grunberg and Marc A. Stern), Oxford UP 1999, p. 284-305.

Additional reading:

  • Mark W. Zacher, Global Epidemiological Surveillance: International Cooperation to Monitor Infectious Diseases, in Global Public Policy (ed. Inge Kaul, Isabelle Grunberg and Marc A. Stern), Oxford UP 1999, p. 266-283.

6. International Co-operation in Regulating Pharmaceutical Markets

Required reading:

  • John Braithwaite and Peter Drahos, Global Business Regulations, Cambridge UP 2000, p.360-398.

7. Cultural Heritage as Public Good

Required reading:

  • Global Public Policy (ed. Inge Kaul, Isabelle Grunberg and Marc A. Stern), Oxford UP 1999, p. 240-263.

8. Managing Global Cyberspace

Required reading:

  • Debora L. Spar, The Public Face of Cyberspace, in Global Public Policy (ed. Inge Kaul, Isabelle Grunberg and Marc A. Stern), Oxford UP 1999, p. 344-363.

Additional reading:

Arvind Panagariya,E-Commerce, WTO and Developing Countries, in The World Economy, 8/2000.

9. International Co-operation in Crime Prevention

Required reading:

  • Bruggeman, Willy, EUROPOL - A European FBI in the Making? Mimeo.

10. International Co-operation in Preventing Money Laundering

Required Reading:

  • Reinicke, Wolfgand H.(1998)Global Public Policy, Brooking Institution Press, chapter 5: Global Crime and Public Policy: The Case of Money Laundering, p. 135-172.

11. International Co-operation in Preventing Corruption

Required reading:

  • Ackerman, Susan R., Coruption and Government, Cambridge UP, 1999, p. 177-197.

12. Economic Openness: How Nations Can Take Advantage of It?

Required reading:

  • Dani Rodrik, Has Globalisation Gone too Far?, Institute for International Economics, Washington 1997, p. 69-85.
  • Dani Rodrik, The New Global Economy and Developing Countries: Making Openness Work, Overseas Development Council, Washington 1999, p. 24-41; 135-151.

13. Policies and Institutions for Delivery of Global Public Goods

Required reading:

  • Global Public Policy (ed. Inge Kaul, Isabelle Grunberg and Marc A. Stern), Oxford UP 1999, p. 450-507.

14. Global Governance: Towards a World of Positive Sum Games – debate with students

Required reading:

  • Dani Rodrik, How Far Will International Economic Integration Go? In Journal of Economic Perspectives, vol. 14, n. 1, Winter 2000, pages 177-186.
  • William D. Coleman, "Keeping the Shotgun Behind the Door," in Hollingsworth, Streeck, Schmitter (eds) Governing Capitalist Economies (New York, Oxford UP, 1994).
  • Geoffry Underhill, "Keeping Governments out of Politics: transnational securities markets, regulatory cooperation, and political legitimacy," in Review of International Studies, vol. 25, 1995, pp. 251-278.

Literature

Textbooks (can be consulted for all sessions)

George T. Crane and Abla Amawi, The Theoretical Evolution of International Political Economy, (New York: Oxford UP, 1991),

Jeffrey Frieden and David Lake (eds), International Political Economy. Perspectives on Global Power and Wealth. (New York: Routledge, 1995).

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 (Boulder: Lynne Rienner, 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.

Recommended additional reading and bibliography

  • Accountable Governance in the Era of Globalisation: the WTO, NAFTA and International Harmonisation, in www.harmonizationalert.org
  • Ansell Christopher K.and Steven Weber,Organizing International Politics: Sovereignty and Open Systems, in International Political Science Review, January 1999.
  • Bhagwati, Jagdish and Robert E. Hudec,Fair Trade and Harmonization: Prerequisites for Free Trade, vol. 1 and 2, MIT Press 1996.
  • Bordo, Michael D., Barry Eichengreen and Douglas A. Irwin, Is Globalisation Today Really Different Than a Hundred Years Ago?, NBER Working Paper 7195 (June 1999); http://www.nber.org/papers/w7195/
  • Brown Drusilla, K.,(2000)International Labour Standards in the World Trade Organization and the International Labor Organization, in Federal Reserve Bank of St. Louis Review, n.4/2000.
  • Cusimano Maryann K., Beyond Sovereignty: Issues for Global Agenda, Boston: Bedford, 1999.
  • Dunn William,Public Policy Analysis, Prentice Hall 1994.
  • Eichengreen, B., Toward a New International Financial Architecture: A Practical Post-Asia Agenda, Institute for International Economics, Washington DC, 1999.
  • Frey, D. Public Choice and International Organizations in Dennis C.Mueller (ed.), Perspectives on Public Choice, Cambridge University Press, 1997.
  • Henderson David,The Changing Fortunes of Economic Liberalism: Yesterday, Today and Tomorrow, London, Institute of Economic Affairs, 1998, pp. 129.
  • Held David, Anthony McGrew, David Goldblatt, Jonathan Perraton, Global Transformations. Politics, Economics and Culture, Polity Press, UK, 1999.
  • Hirst Paul, Thompson Graham,Globalization in Question; 2nd edition, 1999.
  • Krugman Paul, Pop Internationalism, Cambridge Mass. MIT Press, 1996.
  • Lewis, Howard and J. David Richardson,Why Global Integration Matters Most!, Washington DC: Institute for International Economics, 2000.
  • Majone Giandomenico, Evidence, arguments and persuasion in the Policy Process, Yale UP, 1988.
  • Odel, John S.,Case Study Methods in International Political Economy, in International Studies Perspectives, n.2/2001, p.161-176.
  • Open Markets Matter: The Benefits of Trade and Investment Liberalization, Paris OECD, 1998.
  • Reinicke Wolfgang H.,Global Public Policy: Governing without Government?, Brrokings Institution Press, Washington 1998.
  • Reinicke Wolfgang H., The Other World Wide Web: Global Public Policy Networks, in Foreign Policy, Winter 1999-2000
  • Scharpf Fritz, Governing in Europe, Oxford University Press 1999.
  • Soltan K., Elkin S.L.,The Constitution of Good Societies; 1996.
  • Stiglitz Joseph,Beyond the Washington Consensus, WIDER Helsinki, 1998.
  • Strange Susan, The Retreat of the Nation State, Blackwell 1996.
  • World Bank,Trade Blocs and Beyond: Political Dreams and Practical Decisions, Washington DC: World Bank, 2000.

Useful Internet Sites

International Forum on Globalisation - www.ifg.org.

The Internet page of Prof. Paul Krugman - www.mit.edu/krugman/www/

Global Public Policy Networks – www.globalpublicpolicy.net

Sources related to the United Nations – www.library.yale.edu/un/

European Society of Regulatory Affairs – www.esra.org

World Institute for Development Economics Research (WIDER) – www.wider.unu.edu

Global Development Network – www.gdnet.org

Other sources can be found on the web page of the Katedra Studiów Europejskich AE (www.ae.krakow.pl/~ekse/inne/

Teaching Methodology

During the course the instructor used a variety of teaching methods: from classical lectures (with the use of transparencies), through multimedia presentations to case discussions. The comprehension of materials was controlled by questions and problems assigned for home research.

Number of participating students

The ideal number of students is between 15 and 20. 27 students participated in the course.

Additional remarks about the course

The course suits both the needs of students of political science (thanks to its focus on economic approach to international politics) and students of economics and business (thanks to the attention paid to institutional and political factors behind apparently purely economic matters).

The risk of the course stems from the fact that a broad scope of problems analysed gives students only an abstract framework for understanding similarities and differences across various arenas of international politics.