POLITICS 240
INTERNATIONAL POLITICAL ECONOMY
Spring 2004

Vincent Ferraro
103 Skinner
Ext. 2669
vferraro@mtholyoke.edu


Purpose of the Course

This course introduces some of the fundamental relationships between politics and economics, on both the domestic and international levels. Its purpose is not to assert either the primacy of economics or politics, but rather to show how these two aspects of human behavior are mutually dependent and how, over time, economics and politics generally support each other in a coherent social system. Moreover, the course will show how, on the international level, political decisions intervene on all economic decisions and economic constraints shape political possibilities.

Course Format

The course will follow a mixed format. Generally speaking, discussions will be the principal method of discourse. On some days, however, lectures will be introduced to illustrate certain fundamental points. All students are expected to participate in a simulation of the WTO meeting in Cancun, Mexico. Each student will be assigned a particular ministerial position in specific countries and regions and will endeavor to persuade all participants to adopt her country's resolution on one of the key debates at the meeting.

Procedural Issues

All readings are found on the Internet. The easiest way to access these documents is to call up this file at http://www.mtholyoke.edu/acad/intrel/ipe/240s04.htm and then click on all the readings highlighted in blue. You can then print out these documents. If you wish to review a number of different documents related to the study of international relations, you can go to my home page.

There will be a take-home mid-term handed out on 3 March and will be due in class on 10 March. The exam will be an open-book, open-discussion exam with a choice of questions to answer. The mid-term will count for 50% of the final grade.

The other 50% of the grade will be based on both the preparation and participation in a simulation of the Fifth Ministerial Conference of the World Trade Organization held in Cancun, Mexico from 10-14 September 2004. Each student will play an assigned role in the simulation and will be expected to represent as accurately as possible the position of her region. Additionally, each student will have the option to either write a policy paper (5-7 pages) recommending the adoption of her region's proposals or to deliver a speech of no longer than 5 minutes to the class recommending a specific policy.

My office hours are: Monday, 7-9 p.m. and Tuesday 2-3:30. Other times by appointment.

Readings

28 January: Introduction

2 January: The Meeting at Cancun

Jagdish Bhagwati, "Don't Cry for Cancún," Foreign Affairs, January/February 2004

7-9 February: The Historical Development of The Global Economy

Angus Maddison, The World Economy: A Millennial Perspective (Paris: OECD, 2001), Chapter 1, "Introduction and Summary," pp. 17-25

The Transition from Mercantilism

Lecture notes on mercantilism

Capitalism as an Ideal Type

Excerpts from Milton Friedman, Capitalism and Freedom (Chicago: University of Chicago Press, 1962), Chapter 1, "The Relation Between Economic Freedom and Political Freedom," pp. 7-17.

The Presumed Universality of Economic Growth

W.W. Rostow, The Stages of Economic Growth: A Non-Communist Manifesto (Cambridge: Cambridge University Press, 1960), Chapter 2, "The Five Stages of Growth--A Summary," pp. 4-16

9-11 February: The Critiques of Capitalism

Statement of the Levellers (1649)

Charles Dickens, Hard Times, Chapter 2

Chartism: The People's Petition, 1838

For Background on Chartism, click here.

The Communist Manifesto, 1848

For Background on the Manifesto, click here.

16 February: The Political Economy of Capitalism: Hegemonic Stability

Lecture Notes: The Theory of Hegemonic Stability

Andrew Gamble, "Hegemony and Decline: Britain and the United States," in Two Hegemonies: Britain 1846-1914 and the United States 1941-2001 edited by Patrick Karl O'Brien and Armand Clesse (Aldershot: Ashgate Publishing, Ltd., 2002), pp. 127-140

Robert Gilpin, "The Rise of American Hegemony," in Two Hegemonies: Britain 1846-1914 and the United States 1941-2001 edited by Patrick Karl O'Brien and Armand Clesse (Aldershot: Ashgate Publishing, Ltd., 2002), pp. 165-182

18 February: The Political Economy of Capitalism: Dependency Theory

John Gallagher and Ronald Robinson, "The Imperialism of Free Trade," The Economic History Review, Second series, Vol. VI, no. 1 (1953)

Vincent Ferraro, "Dependency Theory: An Introduction," July 1996

23 February -3 March: The Globalization Debate

World Bank, "What is Globalization?" April 2000

"The Capitalist Threat" by George Soros Atlantic Monthly, Volume 279, No. 2, February 1997

David Rothkopf, "In Praise of Cultural Imperialism?" Foreign Policy, Number 107, Summer 1997, pp. 38-53

Jacques Attali, "The Crash of Western Civilization: The Limits of the Market and Democracy," Foreign Policy, Number 107, Summer 1997, pp. 54-64

Larry Rohter, "Bolivia's Poor Proclaim Abiding Distrust of Globalization," New York Times, 17 October 2003

Bob Herbert, "Education Is No Protection," New York Times, 26 January 2004

Louis Uchitelle, "A Missing Statistic: U.S. Jobs That Went Overseas," New York Times, 5 October 2003

Steve Lohr, "Jobs Lost Abroad: Host of New Causes for an Old Problem," New York Times, 15 February 2004

Mid-term Handed Out

Issues in International Political Economy

8-10 March: Trade: The Steel Tariffs

Charles Schumer and Paul Craig Roberts, "Second Thoughts on Free Trade," New York Times, 6 January 2004

USTR Briefing on Steel, Press Briefing by U.S. Trade Representative Robert Zoellick, The James S. Brady Briefing Room, Washington, DC, 5 March 2002

US, Report Submitted to the United States Congress Pursuant to Section 203 (B) (1) of the Trade Act of 1974, as amended

Jeff Madrick, "Looking Beyond Free Trade," New York Times, 12 June 2003

Steven Greenhouse, "As Factory Jobs Disappear, Workers Have Few Options," New York Times, 13 September 2003

James Kynge in Beijing and Richard McGregor in Shanghai, "China reacts with defiance to US criticism," Financial Times, 16 September 2003

Joseph Kahn, "Chinese Girls' Toil Brings Pain, Not Riches," New York Times, 2 October 2003

Mid-Term Due in Class

22-24 March: Stable Exchange Rates and the Debt Crisis

IMF and World Bank Staffs, "100 Percent Debt Cancellation? A Response from the IMF and the World Bank," July 2001

Vincent Ferraro and Melissa Rosser, "Global Debt and Third World Development," in World Security: Challenges for a New Century, edited by Michael Klare and Daniel Thomas (New York: St. Martin's Press, 1994), pp. 332-355

Soren Ambrose, "Multilateral Debt: The Unbearable Burden," Foreign Policy in Focus, Volume 6, Number 37, November 2001

29-31 March: Economics and National Security

U.S. Congress, Senate, Committee on Foreign Relations, Subcommittee on Multinational Corporations, "Multinational Oil Corporations and U.S. Foreign Policy," 93rd Cong., 2nd sess., 1975, pp. 33-74

James A. Paul, "Oil in Iraq: the heart of the Crisis," Global Policy Forum, December, 2002

The Brookings Institution, "How Much Oil Does Iraq Have?" Iraq Memo #16, May 12, 2003 by Gal Luft, Co-Director, Institute for the Analysis of Global Security (IAGS)

'Energy, Diplomacy and National Security' TESTIMONY AS DELIVERED BY FRANK J. GAFFNEY, JR. President, The Center for Security Policy BEFORE THE HOUSE INTERNATIONAL RELATIONS COMMITTEE, 20 June 2002 Washington, D.C.

"Another Motive for Iraq War: Stabilizing Oil Market," Hartford Courant, 12 August 2003

5-7 April : Global Poverty

New York Times, Editorial, "Harvesting Poverty: The Unkept Promise," 30 December 2003

Elizabeth Becker, "Looming Battle Over Cotton Subsidies," New York Times, 24 January 2004

Vincent Ferraro, "Globalizing Weakness: Is Global Poverty a Threat to the Interests of States?" Woodrow Wilson International Center for Scholars, Environmental Change and Security, 8 August 2003

Peter S. Heller, Deputy Director, Fiscal Affairs Department, International Monetary Fund, "Wealth Creation and Social Justice: an IMF Perspective," Speaking Notes Prepared for World Council of Churches — World Bank — IMF Meeting, Geneva, February 13-14, 2003

Saritha Rai, "Indians Fearing Repercussions of U.S. Technology Outsourcing," New York Times, 9 February 2004

12 April: Opening Session: The WTO

14 April: Africa and Central and South America

19 April: China and East Asia

21 April: European Union and Middle East

26 April: South Asia and Southeast Asia

28 April: United States

3 May: Final Session