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INTERNATIONAL POLITICAL ECONOMY Instructor: Cornelia Woll Academic year 2017/2018: Common core curriculum – Spring semester

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Session n°1. Introduction: What is the International Political Economy? This session will present the great underlying questions of the class, present the field of international political economy and discuss its theoretical paradigms. We will also distinguish different types of intellectual traditions that will accompany us throughout the semester.

Required readings • Oatley, Thomas. 2011. “International Political Economy.” In International Political

Economy: International Edition. 5th ed. Harlow: Pearson, 1-20. • Watson, Matthew. 2014. “The Historical Roots of Theoretical Traditions in Global Political

Economy.” In Global Political Economy, ed. John Ravenhill. Oxford: Oxford University Press, 25–50. read p. 30-47

Part I: The Path to the Current Global Economy

Session n°2. The Invention of the Economy Today’s markets function as if they were self-evident, but every piece of economic action is socially constructed and has evolved over time. We will discuss insights from economic anthropology and history about the origins of economic rationalities, the fundamental elements in functioning markets and the evolution of economic thought over time that make our current economic system possible.

Required readings • Polanyi, Karl. 1971. “The Economy as Instituted Process.” In Trade & Market in the Early

Empires, eds. Karl Polanyi, Conrad M. Arensberg, and Harry W. Pearson. Chicago: Henry Regnery Company, 243–70.

Recommended readings • Bourdieu, Pierre. 2005. The Social Structures of the Economy. Cambridge: Polity Press. • Desrosières, Alain. 2002. The Politics of Large Numbers. A History of Statistical

Reasoning. Cambridge: Harvard University Press. • Fontaine, Laurence. 2014. The Moral Economy: Poverty, Credit, and Trust in Early Modern

Europe. Cambridge: Cambridge University Press. • Marx, Karl. [1867] 1992. “Chapter 3: Money, or the Circulation of Commodities.” In Capital:

Volume 1: A Critique of Political Economy, London: Penguin Classics, 188–246. • Thompson, E. P. 1963. The Making of the English Working Class. London ; New York:

Penguin Books.

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• Weber, Max. [1905] 2002. The Protestant Ethic and the Spirit of Capitalism: And Other Writings. London: Penguin Classic.

Session n°3. The History of the World Economy and the Post-War Order The historical roots of the global economy go back for many centuries. We seek to understand the differential developments of separate parts of the world and how they began exchanging with one another. We will see how war and economic collapse were linked and how social thinkers propose to understand these extreme challenges, by connecting the understanding of modern capitalism, social cohesion and democratic order. We will also discuss how the extreme experiences fashioned the institutions governing the global economy in the post-war period.

Required reading • Polanyi, Karl. [1944] 2001. “The Self-Regulating Market and the Fictitious Commodities:

Labor, Land, and Money.” In The Great Transformation: The Political and Economic Origins of Our Time, Boston: Beacon Press, 71–80.

OR

• Braudel, Fernand. 1977. Afterthoughts on Material Civilization and Capitalism. Baltimore: The Johns Hopkins University Press, 79-117.

Recommended reading • Adorno, Theodor W., and Max Horkheimer. [1944] 1997. Dialectic of Enlightenment.

London: Verso Books. • Friedman, Milton, and Anna Jacobson Schwartz. 1965. The Great Contraction, 1929-1933.

Princeton: Princeton University Press. • Galbraith, John Kenneth. 1997. The Great Crash, 1929. New York: Houghton Mifflin

Harcourt. • Keynes, John Maynard. [1936] 2007. The General Theory Of Employment, Interest, And

Money. New York: Palgrave Macmillian. • Kindleberger, Charles Poor. 1986. The World in Depression, 1929-1939. Berkley:

University of California Press. • Mann, Michael. 2012. The Sources of Social Power: Volume 3, Global Empires and

Revolution, 1890-1945. New York: Cambridge University Press. • Polanyi, Karl. [1944] 2001. The Great Transformation : The Political and Economic Origins

of Our Time. Boston: Beacon Press.

Part II: International Economic Integration

Session n°4. Money The international monetary system provides for the integration of national economies. Understanding the Bretton Woods regime and its erosion in the 1970s allows us understanding the politics of integrated financial markets. We will discuss power relations in the monetary system and the current challenges in the Eurozone against the backdrop of the historical evolution at the global level.

Required readings • Helleiner, Eric. 2014. Forgotten Foundations of Bretton Woods: International Development

and the Making of the Postwar Order. Ithaca: Cornell University Press, 1-28.

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• Maurer, Bill. 2006. “The Anthropology of Money.” Annual Review of Anthropology 35(1): 15–36.

Recommended readings • Abdelal, Rawi. 2009. Capital Rules: The Construction of Global Finance. Cambridge:

Harvard University Press. • Block, Fred. 1977. The Origins of International Economic Disorder: A Study of United

States International Monetary Policy from World War II to the Present. Berkley: University of California Press.

• Cohen, Benjamin J. 2006. The Future of Money. Princeton: Princeton University Press. • Eichengreen, Barry. 2008. Globalizing Capital: A History of the International Monetary

System. 2th ed. Princeton: Princeton University Press. • Flandreau, Marc. 2004. The Glitter of Gold: France, Bimetallism, and the Emergence of the

International Gold Standard, 1848-1873. Oxford: Oxford University Press. • Helleiner, Eric. 2002. The Making of National Money: Territorial Currencies in Historical

Perspective. Ithaca: Cornell University Press. • Helleiner, Eric. 2014. Forgotten Foundations of Bretton Woods: International Development

and the Making of the Postwar Order. Ithaca: Cornell University Press. • Strange, Susan. 1998. Strange Money. When Markets Outgrow Governments. Ann Arbor:

Michigan University Press.

Session n°5. Trade Trade politics would not be possible without international institutions structuring exchanges. We will review the global trade regime governed today by the World Trade Organization and discuss the logics of integration and protectionism from a domestic and international perspective.

Required readings • Milner, Helen V. 2012. “International Trade.” In Handbook of International Relations, eds.

Walter Carlsnaes, Thomas Risse, and Beth A. Simmons. Los Angeles: Sage, 720–45.

Recommended readings • Bhagwati, Jagdish. 2007. In Defense of Globalization. New York: Oxford University Press. • Chang, Ha-Joon. 2002. Kicking Away the Ladder: Development Strategy in Historical

Perspective. London: Anthem Press. • Cowen, Deborah. 2014. The Deadly Life of Logistics: Mapping Violence in Global Trade.

Minneapolis: University Of Minnesota Press. • Dür, Andreas. 2010. Protection for Exporters: Power and Discrimination in Transatlantic

Trade Relations, 1930–2010. Ithaca: Cornell University Press. • Friedman, Thomas L. 2005. The World Is Flat: A Brief History of the Twenty-First Century.

New York: Farrar, Straus and Giroux. • Manger, Mark S. 2009. Investing in Protection. The Politics of Preferential Trade

Agreements between North and South. New York: Cambridge University Press. • Mansfield, Edward D., and Helen V. Milner. 2012. Votes, Vetoes, and the Political

Economy of International Trade Agreements. Princeton: Princeton University Press. • Narlikar, Amrita. 2010. New Powers: How to Become One and How to Manage Them.

London: Hurst. • Rogowski, Ronald. 1990. Commerce and Coalitions: How Trade Affects Domestic Political

Alignments. Princeton: Princeton University Press.

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• Woll, Cornelia. 2008. Firm Interests: How Governments Shape Business Lobbying on Global Trade. Ithaca: Cornell University Press.

Session n°6. Production Firms today have unprecedented possibilities to organize their production across boundaries. We study the evolution of production regimes and the progressive relocation and integration across different jurisdictions. The global value chains that have resulted from the rescaling of production go hand in hand with increasing flows of foreign direct investments. We will try to understand both dynamics. This leads us to a discussion about the role of different regions in global production, with a specific focus on Asia.

Required readings • Gereffi, Gary, John Humphrey, and Timothy Sturgeon. 2005. “The Governance of Global

Value Chains.” Review of International Political Economy 12(1): 78–104. • Whitford, Josh, and Cuz Potter. 2007. “Regional Economies, Open Networks and the

Spatial Fragmentation of Production.” Socio-Economic Review 5(3): 497–526.

Recommended readings • Amable, Bruno. 2003. The Diversity of Modern Capitalism. Oxford: Oxford University

Press. • Arrighi, Giovanni. 2009. Adam Smith in Beijing: Lineages of the 21st Century. London:

Verso Books. • Berger, Suzanne. 2005. How We Compete: What Companies Around the World Are Doing

to Make It in Today’s Global Economy. New York: Random House, Inc. • Boyer, Robert, and Yves Saillard. 2001. Regulation Theory: The State of the Art. London:

Routledge. • Harvey, David. 1989. “Part II - The Political-Economic Transformation of Late Twentieth-

Century Capitalism.” In The Condition of Postmodernity: An Enquiry into the Origins of Cultural Change, Oxford: Wiley-Blackwell.

• Jessop, Bob, and Ngai-Ling Sum. 2006. “Part 1 - On the Regulation Approach.” In Beyond the Regulation Approach: Putting Capitalist Economies in Their Place, Cheltenham: Edward Elgar Publishing, 13–122.

• Piore, Michael J., and Charles F. Sabel. 1986. The Second Industrial Divide: Possibilities For Prosperity. New York: Basic Books.

• Sassen, Saskia. 2001. The Global City: New York, London, Tokyo. Princeton: Princeton University Press.

• Tiberghien, Yves. 2007. Entrepreneurial States: Reforming Corporate Governance in France, Japan, and Korea. Ithaca: Cornell University Press.

Mid-term essays due: Sunday 18 March 2018 at 23:55 PM

Session n°7. Development The global economy develops unevenly, creating centers and peripheries, which are linked in complex ways. We try to understand the relationships between different regions and the political attempts to manage economic development across the decades, focusing on the rise and fall of the Washington consensus as well as the changing geographic order created by emerging economies such as China and India.

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Required readings • Philips, Nicola. 2014. “Globalization and Development.” In Global Political Economy, ed.

John Ravenhill. New York: Oxford University Press, 344–71. • Rodrik, Dani. 2007a. “Fifty Years of Growth (and Lack Thereof): An Interpretation.” In One

Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton: Princeton University Press, 13–55.

• Rodrik. 2007b. “Growth Diagnostics.” In One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton: Princeton University Press, 56–84.

Recommended readings • Acemoglu, Daron, and James Robinson. 2012. Why Nations Fail: The Origins of Power,

Prosperity, and Poverty. New York: Crown Business. • Banerjee, Abhijit, and Esther Duflo. 2011. Poor Economics: A Radical Rethinking of the

Way to Fight Global Poverty. New York: PublicAffairs. • Chibber, Vivek. 2006. Locked in Place: State-Building and Industrialization in India.

Princeton: Princeton University Press. • Collier, Paul. 2007. The Bottom Billion: Why the Poorest Countries Are Failing and What

Can Be Done About It. New York: Oxford University Press. • Diamond, Jared. 1997. Guns, Germs & Steel - The Fates of Human Societies. New York:

W. W. Norton & Co. • Evans, Peter. 1995. Embedded Autonomy: States and Industrial Transformation.

Princeton: Princeton University Press. • Harvey, David. 2005. A Brief History of Neoliberalism. Oxford: Oxford University Press. • Jerven, Morten. 2013. Poor Numbers: How We Are Misled by African Development

Statistics and What to Do about It. Ithaca: Cornell University Press. • Sachs, Jeffrey. 2005. The End of Poverty: Economic Possibilities for Our Time. New York:

Penguin Books. • Soto, Hernando De. 2003. The Mystery of Capital: Why Capitalism Triumphs in the West

and Fails Everywhere Else. New York: Basic Books. • Wallerstein, Immanuel. 2004. World-Systems Analysis: An Introduction. Durham: Duke

University Press.

Session n°8. Finance The financial system channels investments for the real economy and provides for access to credit for businesses, governments and consumers. Its growing size, interconnectedness and sophistication have had significant effects on the role and capacities of the state. We will discuss financial and banking crises throughout history, the political responses to stabilize finance and the impact of financialization on various spheres of everyday life.

Required readings • Krippner, Greta R. 2005. “The Financialization of the American Economy.” Socio-Economic

Review 3(2): 173–208. • Funke, Manuel, Moritz Schularick and Christoph Trebesch. 2015. "Going to Extremes:

Politics after Financial Crises, 1870-2014," CEPR Discussion Paper Series, No. 10884, October.

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Recommended Readings • Carruthers, Bruce G. 1996. City of Capital: Politics and Markets in the English Financial

Revolution. Princeton: Princeton University Press. • Krippner, Greta R. 2011. Capitalizing on Crisis: The Political Origins of the Rise of Finance,

Cambridge: Harvard University Press. • Laurence, Henry. 2001. Money Rules: The New Politics of Finance in Britain and Japan.

Ithaca: Cornell University Press. • MacKenzie, Donald. 2006. An Engine, Not a Camera - How Financial Models Shape

Markets. Bellingham: MIT Press. • Minsky, Hyman. [1986] 2008. Stabilizing an Unstable Economy. New York: McGraw-Hill. • Rajan, Raghuram G. 2011. Fault Lines: How Hidden Fractures Still Threaten the World

Economy. Princeton: Princeton University Press. • Taleb, Nassim Nicholas. 2008. The Black Swan: The Impact of the Highly Improbable.

London: Penguin Books. • Tett, Gillian. 2009. Fool’s Gold: Hoe Unrestrained Greed Corrupted Dream Shattered

Global Markets and Unleashed a Catastrophe. London: Abacus. • Walter, Andrew. 2008. Governing Finance: East Asia’s Adoption of International

Standards. Ithaca: Cornell University Press. • Woll, Cornelia. 2014. The Power of Inaction: Bank Bailouts in Comparison. Ithaca: Cornell

University Press. • Zhang, Xiaoke. 2011. The Political Economy of Capital Market Reforms in Southeast Asia.

London: Palgrave Macmillian.

Session n°9. Public Debt Public debt is tightly linked to the emergence of the modern and democratic state. Through the issuance of debt, states are nowadays also inextricably connected to the global financial and economic system. Growing public indebtedness in advanced countries over the last decades, the developing countries’ debt crises of the 1980s and the recent public debt crisis in Europe have strongly transformed state capacities and perceptions of the state and public debt as well. We will discuss the role of politics in public debt and public debt crises and its consequences on the political economies and political decision making around the globe.

Required readings • Streeck, Wolfgang. 2013. “The Politics of Public Debt. Neoliberalism, Capitalist

Development, and the Restructuring of the State.” MPIfG Discussion Paper 13/7: 1-24.

Recommended Readings • Graeber, David. 2012. Debt: The First 5,000 Years. New York: Melville House. • Reinhart, Carmen M., and Kenneth S. Rogoff. 2009. This Time Is Different: Eight Centuries

of Financial Folly. Princeton: Princeton University Press. • Tomz, Michael. 2007. Reputation and International Cooperation: Sovereign Debt across

Three Centuries. Princeton: Princeton University Press. • Singer, David Andrew. 2007. Regulating Capital: Setting Standards for the International

Financial System. Ithaca: Cornell University Press. • Turner, Adair. 2015. Between Debt and the Devil. Money, Credit, and Fixing Global

Finance. Princeton: Princeton University Press.

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• Frieden, Jeffry A. 1992. Debt, Development, and Democracy: Modern Political Economy and Latin America, 1965-1985. Princeton: Princeton University Press.

• Stasavage, David. 2008. Public Debt and the Birth of the Democratic State. France and Great Britain, 1688-1789. Cambridge: Cambridge University Press.

• Benczes, István [ed.] 2014. Deficit and Debt in Transition. The Political Economy of Public Finances in Central and Eastern Europe. Budapest: Central European University Press.

• Devlin, Robert. [1990] 2014. Debt and Crisis in Latin America. The Supply Side of the Story. Princeton: Princeton University Press.

• Sandbu, Martin. 2015. Europe’s Orphan. The Future of the Euro and the Politics of Debt. Princeton: Princeton University Press.

• Lienau, Odette. 2014. Rethinking Sovereign Debt. Politics, Reputation, and Legitimacy in Modern Finance. Cambridge: Harvard University Press.

• Dyson, Kenneth. 2014. States, Debt, and Power. “Saints” and “Sinners” in European History and Integration. Oxford: Oxford University Press.

• Aggarwal, Vinod K. 1996. Debt Games. Strategic Interaction in International Debt Rescheduling. Cambridge: Cambridge University Press.

• Eichengreen, Barry & Lindert, Peter H. 1992. The International Debt Crisis in Historical Perspective. Cambridge: MIT Press.

• Kopits, George. 2013. Restoring Public Debt Sustainability. The Role of Independent Fiscal Institutions. Oxford: Oxford University Press.

Part III. The Effect of Globalization

Session n°10. National Politics Integrated markets provide an inextricable challenge to governments, which are no longer able to control all aspects of the socio-economic development. This shrinking autonomy was highlighted during the recent crisis and poses considerable problems to the functioning of representative democracy. We will discuss the effect of economic integration on national politics in a comparative perspective.

Required readings • Cerny, Philip G. 1997. “Paradoxes of the Competition State: The Dynamics of Political

Globalization.” Government and Opposition 32(2): 251–74. • Streeck, Wolfgang. 2011. “The Crises of Democratic Capitalism.” New Left Review (71): 5–

29.

Recommended readings • Dahl, Robert. 1998. On Democracy. New Haven: Yale University Press. • Friedman, Thomas L. 2012. The Lexus and the Olive Tree: Understanding Globalization.

New York: Picador. • Hay, Colin, and Daniel Wincott. 2012. The Political Economy of European Welfare

Capitalism. Basingstoke: Palgrave Macmillian. • Jessop, Bob. 2002. The Future of the Capitalist State. Cambridge: Polity Press. • Mosley, Layna. 2003. Global Capital and National Government. Cambridge: Cambridge

University Press.

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• Ohmae, Kenichi. 1995. The End of the Nation State: The Rise of Regional Economies. New York: Free Press.

• Rosanvallon, Pierre. 2000. The New Social Question: Rethinking the Welfare State. Princeton: Princeton University Press.

• Streeck, Wolfgang. 2014. Buying Time: The Delayed Crisis of Democratic Capitalism. London: Verso Books.

Session n°11. Inequality One of the most directly challenged aspects of domestic politics are traditional welfare states and social protection implemented as part of the post-war social democratic compromise. By discussing the tension between domestic welfare states and international markets, we focus on economic equality within and across countries. Furthermore, linking the functioning of the economy to other social dimensions, we also consider gender and racial inequalities.

Required readings • Alvaredo, Facundo, Anthony B Atkinson, Thomas Piketty, and Emmanuel Saez. 2013.

“The Top 1 Percent in International and Historical Perspective.” Journal of Economic Perspectives 27(3): 3–20.

• Boltanski, Luc, and Eve Chiapello. 2005. “The New Spirit of Capitalism.” International Journal of Politics, Culture, and Society 18(3-4): 161–88.

Recommended readings • Brenner, Neil. 2004. New State Spaces: Urban Governance and the Rescaling of

Statehood. Oxford ; New York: Oxford University Press. • Calhoun, Craig, Georgi Derluguian. 2011. Business as Usual : The Roots of the Global

Financial Meltdown, New York: New York University Press. • Fraser, Nancy. 2013. Fortunes of Feminism: From State-Managed Capitalism to Neoliberal

Crisis. London: Verso Books. • Hacker, Jacob S., and Paul Pierson. 2011. Winner-Take-All Politics: How Washington

Made the Rich Richer--and Turned Its Back on the Middle Class. New York: Simon & Schuster.

• Piketty, Thomas. 2014. Capital in the Twenty-First Century. Cambridge: Harvard University Press.

• Sassen, Saskia. 2014. Expulsions: Brutality and Complexity in the Global Economy. Cambridge: Belknap Press.

• Stainback, Kevin, and Donald Tomaskovic-Devey. 2012. Documenting Desegregation: Racial and Gender Segregation in Private-Sector Employment since the Civil Rights Act. New York: Russell Sage Foundation.

• True, Jacqui. 2012. The Political Economy of Violence against Women. New York: Oxford University Press.

• Wacquant, Loïc. 2009. Punishing the Poor: The Neoliberal Government of Social Insecurity. Durham: Duke University Press.

• Waring, Marilyn, and Gloria Steinem. 1999. Counting for Nothing: What Men Value and What Women Are Worth. Toronto: University of Toronto Press.

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Session n°12. Nature Economic growth, production and consumption transform the earth’s environment. We will discuss both the challenges and the transnational responses that have been developed to deal globally with the politics of nature. Analyzing the emergence of global environmental institutions and the stakes of sustainable development allows returning once more to inequalities across regions and within countries.

Required readings • Fraser, Nancy. 2014. “Can Society Be Commodities All the Way down? Post-Polanyian

Reflections on Capitalist Crisis.” Economy and Society 43(4): 541–58. • Newell, Peter. 2012a. “Globalization and Environment: Capitalism, Ecology and Power.” In

Globalization and the Environment: Capitalism, Ecology, and Power, Cambridge: Polity Press, 1–16.

• Newell. 2012b. “The Political Ecology of Globalization.” In Globalization and the Environment: Capitalism, Ecology, and Power, Cambridge: Polity Press, 17–33.

• Recommended readings • Clapp, Jennifer, and Peter Dauvergne. 2011. Paths to a Green World. The Political

Economy of the Global Environment. Cambridge: MIT Press. • Giddens, Anthony. 2006. The Politics of Climate Change. Cambridge: Polity Press. • Hamilton, Clive. 2004. Growth Fetish. Adelaide: Griffin Press. • Hay, Colin, and Anthony Payne, eds. 2015. Civic Capitalism. Cambridge: Polity Press. • Klein, Naomi. 2014. This Changes Everything: Capitalism Vs. the Climate. London:

Penguin Books. • Mitchell, Timothy. 2013. Carbon Democracy: Political Power in the Age of Oil. London:

Verso Books. • Newell, Peter, and Matthew Paterson. 2010. Climate Capitalism. Global Warming and the

Transformation of the Global Economy. Cambridge: Cambridge University Press. • Nixon, Rob. 2013. Slow Violence and the Environmentalism of the Poor. Cambridge:

Harvard University Press. • Ostrom, Elinor. 1990. Governing the Commons: The Evolution of Institutions for Collective

Action. Cambridge: Cambridge University Press. • Sachs, Jeffrey. 2009. Common Wealth: Economics for a Crowded Planet. London:

Penguin Books. • Stiglitz, Joseph. 2010. Mismeasuring Our Lives: Why GDP Doesn’t Add Up. New York: The

New Press. • Yergin, Daniel. 1991. The Prize: The Epic Quest for Oil, Money, and Power. New York:

Simon & Schuster.

Online final exam to be taken during exam week: please check the schedule

READINGS

Required and recommended readings are indicated for each session. In addition, the following references are recommended for students seeking to get a general overview.

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General introduction: • Broome, Andre. 2014. Issues and Actors in the Global Political Economy. London:

Palgrave Macmillian. • Clift, Ben. 2014. Comparative Political Economy: States, Markets and Global Capitalism.

London: Palgrave Macmillian. • Moschella, Manuela, and Catherine Weaver. 2013. Handbook of Global Economic

Governance: Players, Power and Paradgims. London: Routledge. • Oatley, Thomas. 2011. International Political Economy: International Edition. 5th ed.

Harlow: Pearson. • O’Brian, Robert, and Marc Williams. 2013. Global Political Economy: Evolution and

Dynamics. 4th ed. New York: Palgrave Macmillian. • Ravenhill, John. 2014. Global Political Economy. 4th ed. Oxford: Oxford University Press.

An intellectual history of the field: • Blyth, Mark. 2010. Routledge Handbook of International Political Economy (IPE): IPE as a

Global Conversation. London: Routledge. • Cohen, Benjamin J. 2014. Advanced Introduction to International Political Economy.

Cheltenham: Edwards Elgar.