INTRODUCTION TO GLOBAL POLITICAL ECONOMY

Economics 102: PAGS I

 

 

J. Diskin                                                                                                            Spring 2003

Bolling Center 331                                                                                            email: jond

Office Hours:  M 2:30-3:30, T 10-12, W & F 2:30-3:30, and by appt.              Phone: 1427

 

 

 

This course will provide you with an introduction to the issues, history, perspectives, and analytical methods in the field of Global Political Economy [GPE].    Put less abstractly, we will try to create a conceptual landscape of the global political economy, to grasp some big trends and processes and movements related to it.  This is a “big picture” course that serves as an introduction to the fields of economics and Peace and Global Studies [PAGS]. 

Global Political Economy encompasses political, economic, and cultural issues. I think its important for us all, including Economics and PAGS students, to be familiar with both mainstream and radical approaches to economics and we will do so throughout the course.. The course will proceed in several stages because there are several different kinds of languages or discourses we need to become familiar with.  In the first part of the course we will gain some historical background on the development and elements in the global economy and the theoretical perspectives used to makes sense of things. Here we will learn to think of capitalism as a class system and to examine the assumptions of different theories of political economy.  In the second part we will encounter more traditional economic concepts, models, and empirical evidence.  Here we will learn to use terms such as the balance of payments and comparative advantage and study the discourse of traditional economic analysis.  The third part of the course builds on the first two as we turn to a critical assessment of the spread of global capitalist relationships. In other words, the course will move from more abstract and broad themes to consideration of more concrete issues.

 

What this course requires of you:

As with any course, you need to attend class regularly and do the reading before coming to class. This makes for better discussion and comprehension.  In addition, you need to plan ahead for any conflicts you may have with exams and paper dates. If you have a conflict, bring it to my attention right away.  Unless an emergency arises, I will not allow extensions or changes in exam/paper dates later without penalty.

I also want to make clear that you should be an active learner. For some this comes easily, for others it doesn’t.  But I simply cannot know how everyone is doing all the time so you should let me know if you are not following readings or in class presentations.  I will always be glad to meet with you outside of class.

If you have a documented learning disability I will be glad to make all reasonable accommodations. You must let me know, however, early in the semester and have the customary documentation from Student Support Services.

 

 

 

Main Texts:

Introduction to International Political Economy, 2nd Ed., D.V. Balaam, M. Veseth, Prentice Hall, 2001. [IPE]

Globalization and its Discontents, G. Stiglitz, Norton, 2002. [GID]

There are additional readings that are either available as weblinks or as reserve readings in Lilly Library and in the Social Science office.  Reserves are designated as: **

 

 

 

Grading and Assignments:

The assignments for this course consist of three exams during the semester, occasional short writing assignments and homework exercises and a final exam.  The assignments will count toward your final grade as follows:

 

Three exams:                55%     [two best = 20% each, the other = 15%]

Short assignments:        10%

Final:                            30%     NOTE: Final Exam is Thursday May 8 at 8am.

Participation:                 5%

 

 

Two Notes:

1) You may write a final paper on a topic of your choosing by special arrangement.

2) You may skip the final if you wish. If you do, the three exams will be valued at 80% of your grade (30% for two best, 20% for the other) and the short assignments for 15% plus 5% participation.

 

 

 

COURSE SYLLABUS

 

 

PART I: INTRODUCTION, HISTORY, & THEORY

 

Friday, January 17th

Class Handouts:

N. Kristoff, “Let them Sweat”, June 2002, New York Times. Sweat

B. Bearak, “Lives Held Cheap in Bangladesh Sweatshops”, April 2001, New York Times. Lives

 

One Page Response/Analysis of Sweatshop articles due on Tues, January 21 in class.

 

 

 

A)  History and Theories of Capitalism

Mercantilism                                                                                                                      January 21

** E.K. Hunt, Chap. 2 “The Transition to Early Capital­ism". From Property and Prophets, pp. 11-24.

IPE, Chapters 1 and 2 .

 

Classical Liberalism:                                                                                              January 24 and 27.

** E.K. Hunt, Chapters 3 and 4. pp. 27-49.

IPE, Chapter 3

** A. Smith, The Wealth of Nations, pp. 3-6, and 10-17. http://www.socsci.mcmaster.ca/~econ/ugcm/3ll3/smith/wealth/wealbk01 This website links you to Smith’s text.  Read from the beginning through Chapter 2.

 

** M. Friedman, Capitalism and Freedom, pp. 1-22.

 

Radical and Critical Perspectives:                                                                               January 31 Feb 4. 

IPE, Chapter 4

** Marx and Engels, “The Communist Manifesto, pp.473-483.

http://csf.colorado.edu/psn/marx/Archive/1848-CM/cm1.txt  This website links you to the Communist Manifesto.  Read the entire section “Bourgeoisie and Proletarian”

** Wolff and Resnick, Economics: Marxian vs. Neoclassical. pp. 141-163.

 

IPE, Chapter 5.

 

 

B) Basic Economic Concepts and Institutions.                                                         Feb 7 and 11.

Lecture on Post World War II Capitalism

** Economics of Social Issues. pp. 2-23.

** Krugman, “The Babysitting Coop”, http://www.slate.com/Dismal/98‑08‑13/Dismal.asp

** “The ABCs of the Global Economy”, Real World Globalization.

** “The ABCs of Free-Trade Agreements”, Real World Globalization.

IPE. Chapter 7, pp. 147-150.

 

  First Exam Review Questions

NOTE: I will be out of town from Feb 18 through the 24th.  This will entail missing one class.

 

 

 

 

First Exam in Class on Friday Feb 14th.

 

 

 

PART II: ECONOMIC INSTITUTIONS AND LINKAGES:

 

Video: The Commanding Heights: Bretton Woods                                                 Feb 18

 

Mid-Term Break                                                                                                       Feb 21.

 

A)  International Trade: The Flow of Goods and Services.                                Feb 25 – March 7.

            1) Comparative Advantage: Comparative Advantage handout

Gains from Trade Example

** Economics of Social Issues, Chapter 6 “The Economics of International Trade”, pp. 239-247; and pp. 261-268.

            IPE, Chapter 6.

 

            2) The Geography of Trade:

            ** Dicken, Global Shift, Chapter 2, pp. 24-42.

 

            3) A Critique and Defense of Free Trade:

** H. Daly, “The Perils of Free Trade”, Scientific American, 1993. http://www.law.ufl.edu/cgr/envirotrade_seminar/Herman.htm

Jagdish Bhagwati Interviewed in Challenge, 44:1 [Click PDF format and retrieve document to open] http://gessler.ingentaselect.com/vl=36167153/cl=39/nw=1/rpsv/cgi-bin/cgi?ini=ebsco&body=linker&reqidx=0577-5132(20010101)44:1L.6;1-&lkey=198744049&rkey=836212981

** “The Relative Impact of Trade Liberalization on Developing Countries”, M. Weisbrot, D. Baker 

 June 11, 2002

Relative Impact Article

 

COMPARATIVE ADVANTAGE HOMEWORK: DUE TUESDAY MARCH 11

            4) Trade in the News:

**Kristoff, “Farm Subsidies that Kill”, July, 2002, New York Times. http://www.earlham.edu/~jond/farm.htm

** J. Kahn, “Bush Moves Against Steel Imports”, June 2001, New York Times. Bush Moves

** “Sugar Rules Defy Free-Trade Logic”, New York Times Sugar Rules

** A DePalma, “Judge Issues Split Decision in NAFTA Case”, June 2001, New York Times.

 

VIDEO: Moyers on Nafta’s Chapter 11 –                                                                            March 7.

 

Homework on Trade Due:  March 7

 

 

B. Debt and Investment: The Flow of Money.                                                         March 11, 14

IPE, Chapters 7 and 8.                                                                        

** Dicken, Chapter 2, pp. 42-68.

** “Argentine unions call for strike to protest IMF austerity plan”

Jubiless 2000 on Debt. http://www.jubileeusa.org/jubilee.cgi?path=/learn_more/beginners_guide

 

 

SPRING BREAK WEEK OF MARCH 17.

 

 

 

Second Exam on Trade, Debt and Investment Friday March 28.

 

 

 

C. Women and Labor in the Global Economy.                                                         April 1 and 4.

 

** C. Enloe, "Women in Banana Republics", pp. 133-150, and

pp. 160-169, “Making Women's Labor Cheap.”

** A. Hoschild, “The Global Nanny Chain”, The American Prospect, January 3, 2000

http://www.prospect.org/print-friendly/print/V11/4/hochschild-a.html  Link to A. Hoschild’s article.

 

P. Krugman, “In Praise of Cheap Labor”  http://web.mit.edu/krugman/www/smokey.html

** S. Dillon, “Profits Raise Pressures on U.S.‑Owned Factories in Mexican Border Zone

The New York Times, Sunday, February 15, 2001

** G. Thompson, “Chasing Mexico's Dream Into Squalor”, New York Times, February 11, 2001

Corn Imports and Workers in Mexico.

** “Factory Closes. Jobs Go South. Familiar Story, With a Twist”, A. DePalma, New York Times, Oct 2002.

 

 

 

PART III. Globalization and Its Discontents:                                              April 7 and 14. 

** “A Short History of neo-liberalism: twenty years of elite economics and emerging opportunities for structural change”, S. George

IPE, Chapter 15

Globalization and its Discontents, J. Stiglitz. , Chapters 1-3, pp. 3-88.                      

 

“Capital and Revenge: the IMF and Ethiopia”  Robert Hunter Wade, Challenge, 44:5

http://gessler.ingentaselect.com/vl=147563/cl=22/nw=1/rpsv/cgi-bin/cgi?ini=ebsco&body=linker&reqidx=0577-5132(20010901)44:5L.67;1-&lkey=858864385&rkey=352999370 Click on PDF format to view document.

 

GID, Chapter 4, “The East Asian Crisis”                                                                       April 18

GID, Chapter 5, “Who Lost Russia?”                                                                           April 22

**As Poland Endures Hard Times, Capitalism Comes Under Attack, June 12, 2002, I. Fisher

 

GID, Chapters 6-9, pp. 166-252.                                                                                 April 25

K. Rogoff, “The IMF Strikes Back”, Foreign Policy, Jan/Feb 2003.  http://www.foreignpolicy.com/issue_janfeb_2003/rogoff.html

 

 

Video: Privatizing Water – Moyer’s on Cochabamba

 

“World Bank Group Fact Sheets: Assessing Globalization”, parts 1-4.               April 29, May 2

http://www.worldbank.org/html/extdr/pb/globalization/paper1.htm

A. Sen, “Globalization” reader, American Prospect. http://www.prospect.org/print-friendly/print/V13/1/sen-a.html

M. Weisbrot, “Globalization” reader, American Prospect. http://www.prospect.org/print-friendly/print/V13/1/weisbrot-m.html

** “Why Reform of the WTO is NOT the Agenda”, By Walden Bello

 

 

 

 

Third Exam or Paper on Stiglitz due on Friday  April 25.