Winecoff_Y376_Fall2014

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Fall 2014 / M & W 1:00pm - 2:15pm / Wylie Hall 005

Political Science 376: International

Political Economy

William Kindred Winecoff

Indiana University at BloomingtonOffice: Woodburn 403

Hours: M & W 2:30-4 oba

[email protected]

course description

No truly free market has ever existed or ever can exist. Production, in-

vestment, and exchange in the world economy is governed by politics, the

process of determining how a societys resources are distributed. Thisprocess of rule-setting occurs at the subnational, national, and interna-

tional levels and political power exists within and across each level. As

these rules benefit some groups and harm others, bargaining occurs both

within and between governments. Private sector agents such as firms,

workers, farmers, and advocacy organizations both influence this pro-

cess and respond to it. International political economy (IPE) is the subfield

of political science that studies this system.

Our broad objective is to apply central analytical tools that IPE schol-

ars have developed to better understand how the interaction between pol-

itics and markets drives outcomes in the global economic system. We will

focus our study on three interlocking systems: the global trading subsys-

tem, the global financial subsystem, and the global development subsys-

tem. We will consider how the global political economy has changed over

time, and consider what future changes may be possible. In so doing, we

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will emphasize three forces that shape the politics of the global economy

hierarchies, institutions, and interconnectedness and consider how in-terests, ideas, and history influence each of them.

The basic structure of the course is as follows. First, we will explore

the politics of the global trading system, including comparative and histor-

ical developments related to trade openness, labor rights, environmental

standards, and the influence of the World Trade Organization. We then

examine the ways in which the international monetary and financial sub-

system has developed to facilitate trade and investment, and which peri-

odically triggers economic instability and crisis. We will discuss the role

of central banks in the global financial system, the changing role and ori-

entation of the International Monetary Fund, and efforts to regulate the

global financial system. Finally, we turn to the politics of economic de-velopment, including such topics as foreign aid, immigration, inequality,

structural adjustment, and the role of the World Bank.

requirements

Students are expected to attend all lectures having read the assigned ma-

terial in advance. This class requires approximately 100 pages of reading

per week, and it is essential that you keep up. I will not take attendance

but may periodically quiz the class on material from the days readings.

Quiz grades will be combined with the exam grades for that section of the

course. There will be three examinations that will draw from the readings

and lectures. These will primarily be multiple choice but there may be an

additional essay component.

In addition, there will be weekly writing assignments that will only be

available to those that attend class. (I.e., unlike everything else the ques-

tions will not be posted on the course website.) The intention of these

assignments is to reward those that attend class regularly, and to force

you to reflect upon course materials as a means of preparing you in ad-

vance for the exams. Answers to these questions will be short generally

1-2 paragraphs and will answer a prompt that responds to that weeks

readings and/or lectures. These will be graded as Excellent (2 points),Acceptable (1 point), or Not Acceptable (0 points) and the lowest score

will be dropped for each student. They are due one week from the time

they are given and late contributions will not be accepted. For example, if

a question is given at Wednesdays lecture they are due by the following


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Wednesday at 1:00 p.m. Responses mustbe entered into the appropriate

spaced in the Assignments tab on the course website. If you have trou-ble with this it is your responsibility to seek assistance from me or David

Ruigh, the Associate Instructor ([email protected]).

The overall course grade breaks down as follows:

Midterm 1: 25%.

Midterm 2: 25%.

Final Exam: 30%

Responses 20%.

In my experience, students who attend class, do the readings, andcome to office hours when they are confused do well in my classes. Stu-

dents who do not do these things often suffer.

grading policy

I will not accept late papers or give make-up examinations except in the

case of a documented medical emergency. Grade appeals must be made

in writing, with an explanation of why additional points are deserved, no

sooner than one week after a graded assignment is returned to allow

for appropriate reflection and no later than two weeks after a graded

assignment is returned.

current events

We will spend the beginning of each class session discussing current events

related to the course. Its a very interesting time to be studying the pol-

itics of the global economy, so theres plenty to talk about. In order for

this to be worthwhile, you need to know whats going on. So pick a rep-

utable news source I dont care which one and follow along. If youd

like recommendations let me know.

academic honesty

The Indiana University Code of Student Rights, Responsibilities, and Con-

ductdefines academic misconduct [as]:


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any activity that tends to undermine the academic integrity of

the institution . . . Academic misconduct may involve human,hard-copy, or electronic resources . . . Academic misconduct

includes, but is not limited to . . . cheating, fabrication, pla-

giarism, interference, violation of course rules, and facilitating

academic misconduct. (II. G.1-6).

More here:

http://teaching.iub.edu/policies_misconduct.php?nav=policies.

And here:

http://www.iu.edu/~code/index.shtml.

Please note that if you are unsure whether some conduct is a violation

of the Code, it is fine to ask. There is no penalty involved with seeking aclarification on policies, or advice on how to stay within them, and I am

happy to help. The goal of these policies is to help you, not hurt you. That

said, I take violation of these rules very seriously and will take appropriate

action if I find that you are not living up to them.

disability

If any student will require assistance or academic accommodations for a

disability, please contact me after class, during my office hours, or by indi-

vidual appointment. You must have established your eligibility for disabil-

ity support services through the Office of Disability Services for Students

in Wells Library W302, 812-855-7578.

student privacy

It is expected that the privacy of the class will be respected. Personal in-

formation disclosed in course should not be repeated or discussed outside

of the course, especially with students not enrolled in the course.

technology policy

The use of laptops and tablets is permitted for class-related activities (i.e.

note-taking) only. The use of cellphones is not permitted at all. Note: its

pretty obvious (to me) when youre text messaging, instant messaging, or

otherwise using technology for purposes unrelated to the course. This is
http://teaching.iub.edu/policies_misconduct.php?nav=policieshttp://teaching.iub.edu/policies_misconduct.php?nav=policieshttp://teaching.iub.edu/policies_misconduct.php?nav=policieshttp://teaching.iub.edu/policies_misconduct.php?nav=policieshttp://www.iu.edu/~code/index.shtmlhttp://www.iu.edu/~code/index.shtmlhttp://teaching.iub.edu/policies_misconduct.php?nav=policies


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disrupting to your classmates, and to me. I reserve the right to deduct

points from your final grade if I observe you failing to observe by theserules.

extra help

Do not hesitate to come to my office during office hours or by appointment

to discuss course materials, examination results, paper projects, or any

aspect of the course. I will post to the course website several articles

that provide good advice for writing research papers in political science.

You also may want to consider the tutoring services offered by Indiana

University, in particular the reading and writing tutoring (which is free).

Information is available at:

http://studentaffairs.iub.edu/academic-resources-and-support/.

readings and schedule

There are two required books:

Thomas Oatley. International Political Economy. Longman, 5th edition, 2011.

Jeffry A. Frieden. Global Capitalism: Its Fall and Rise in the Twentieth Century.

W.W. Norton and Company, New York, NY and London, 2006.

All other readings will be provided on the course website.

i: introduction (aug. 25)

No readings.

ii: a crash course in pre-war economic history (aug. 27)

Frieden, chs.: Prologue, 1, 5, 8. Foreword and Preface not required but are short

and recommended. Other non-assigned chapters might be interesting for

some of you, and I encourage reading them, but are also not required.

iii: (sept. 1)

No Class - Labor Day.
http://studentaffairs.iub.edu/academic-resources-and-support/http://studentaffairs.iub.edu/academic-resources-and-support/


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iv: all the kings horses and all the kings men? (sept. 3)

Frieden, ch.: 9.

Benn Steil. Red white. Foreign Affairs, 92(2), 2013.

v: the economic case for trade (sept. 8)

Oatley, ch.: 3.

Daniel W. Drezner. The outsourcing bogeyman. Foreign Affairs, May/June, 2004.

vi: the domestic politics of trade (sept. 10)

Oatley, chs.: 4-5.

vii: the international politics of trade (sept. 15)

Helen V. Milner. The political economy of international trade. Annual Review of

Political Science, 2:91114, 1999.

William H. Cooper. The future of u.s. trade policy: An analysis of issues and

options for the 112th congress. Congressional Research Service Report

for Congress, 7(5700), 2011.

viii: the world trade organization (sept. 17)

Oatley, ch.: 2.

Randy Schnepf. Brazils wto case against the u.s. cotton program. Congressional

Research Service Report for Congress, 7(5700), 2010.

ix: the doha round (sept. 22)

David S. Christy. round and round we go... World Policy Journal, Summer:1927,

2008.

Paul Blustein. The nine-day misadventure of the most favored nations. Brookings

Global Economy and Development, 2008.

Surupa Gupta and Sumit Ganguly. Modi bets the farm. Foreign Affairs, August12, 2014.


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x: fair trade, labor rights, & mncs (sept. 24)

Oatley, chs.: 9.

Paul Krugman. In praise of cheap labor. Slate, March 21, March 21 1997.

Sarah Bauerle Danzman and W. Kindred Winecoff. The strange politics of u.s.-eu

free trade. The National Interest, February 14, 2013.

xi: (sept. 29)

Exam One.

xii: the pre-wwii monetary system (oct. 1)

Frieden, ch.: 12.

Charles Kindleberger. The World in Depression, 1929-1939. University of Cali-

fornia Press, Berkeley, CA, 1973.

xiii: politics of the unholy trinity (oct. 6)

Frieden, pp. 459-464.

Oatley, pp. 255-257.

Oatley, chs.: 12-13.

xiv: bretton woods (oct. 8)Frieden, ch.: 15.

G. John Ikenberry. The political origins of bretton woods. In Michael D. Bordo and

Barry Eichengreen, editors, A Retrospective on the Bretton Woods System:

Lessons for International Monetary Reform, pages 155198. University of

Chicago Press, 1993.

xv: bretton woods ii (oct. 13)

Michael P. Dooley, David Folkerts-Landau, and Peter Garber. The revived bret-

ton woods system: The effects of periphery intervention and reserve man-

agement on interest rates and exchange rates in center countries. NBERWorking Paper No. 10332, 2004.

Michael P. Dooley, David Folkerts-Landau, and Peter M. Garber. Bretton woods ii

still defines the international monetary system. NBER Working Paper No.

14731, 2009.


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xvi: the (im)balance of payments (oct. 15)

Lorenzo Bini Smaghi. The triffin dilemma revisited. Speech by Lorenzo Bini

Smaghi, Member of the Executive Board of the ECB, at the Conference on

the International Monetary System: sustainability and reform proposals,

marking the 100th anniversary of Robert Triffin (1911-1993), at the Triffin

International Foundation, Brussels, 3 October 2011., 2011.

Ben S. Bernanke, Carol Bertaut, Laurie Pounder DeMarco, and Steven Kamin. In-

ternational capital flows and the returns to safe assets in the united states,

2003-2007. Board of Governors of the Federal Reserve System Interna-

tional Finance Discussion Papers Number 1014, February 2011.

xvii: the international monetary fund (oct. 20)

Paul Blustein. A flop and a debacle: Inside the imfs global rebalancing acts.

Center for International Governance Innovation Papers No. 4, 2012.

xviii: developing world crises (oct. 22)

Oatley, chs.: 14-15.

Joseph Stiglitz. The insider: What i learned at the world economic crisis. The

New Republic, 222(16/17), 2000.

Kenneth Rogoff. An open letter to joe stiglitz, July 2 2002.

Kenneth Rogoff. The imf strikes back. Foreign Policy, January 2003.

xix: the global financial crisis (oct. 27)

Maurice Obstfeld and Kenneth Rogoff. Global Imbalances and the Financial Cri-

sis: Products of Common Causes. Proceedings of the Federal Reserve Bank

of San Francisco, October:131172, 2009.

Daniel W. Drezner. The irony of global economic governance: The system worked.

World Politics, 66(1):123164, 2014.

xx: the eurozone crisis (oct. 29)

Fernanda Nechio. Long-run impact of the crisis in europe: Reforms and austeritymeasures. Federal Reserve Bank of San Francisco Economic Letter, March

7 2011.

Vivien A. Schmidt. The european unions eurozone crisis and what (not) to do

about it. Brown Journal of World Affairs, 17(1):199213, 2010.


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Mark Blyth. The austerity delusion: why a bad idea won over the west. Foreign

Affairs, 92(3), 2013.

xxi: (nov. 3)

Exam Two.

xxii: the problem of poverty (nov. 5)

William Easterly. The failure of economic development. Challenge, 45(1):88103,

2002.

Jeffrey D. Sachs. The development challenge. Foreign Affairs, 84(2):7890, 2005.

Abhijit Banerjee and Esther Duflo. More than 1 billion people are hungry in theworld. Foreign Policy, May/June, 2011.

xxiii: economics or politics? (nov. 10)

Antonio DAgata and Guiseppe Freni. The structure of growth models: A compar-

ative survey. Working Paper, 2012.

Jeffrey D. Sachs. Government, geography, and growth. Foreign Affairs, Septem-

ber/October, 2012.

xxiv: political economies of development (nov. 12)

David N. Balaam and Bradford Dillman. Introduction to International Political

Economy. Longman, 2010.

Daron Acemoglu and James Robinson. Response to jeffrey sachs. Blog post:

http://whynationsfail.com/blog/2012/11/21/response-to-jeffrey-sachs.html, Novem-

ber 21 2012.

xxv: import-substitution industrialization (nov. 17)

Oatley, ch.: 6.

Frieden, ch.: 13.

xxvi: export-oriented industrialization (nov. 19)

Oatley, ch.:7


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Frieden, ch.: 18

James Fallows. How the world works. The Atlantic, December 1993.

xxvii: (nov. 24)

No Class - Thanksgiving Break.

xxviii: (nov. 26)

No Class - Thanksgiving Break.

xxix: uneven development & the world bank (dec. 1)Frieden, ch.: 19.

Robert Zoellick. Why we still need the world bank. Foreign Affairs, March/April,

2012.

xxx: rising china (dec. 3)

Arvind Subramanian. The inevitable superpower. Foreign Affairs, 90(5):6678,

2011.

Michael Pettis. A brief history of chinas growth model. Blog post, 2013.

Scott Kennedy. The myth of the beijing consensus. Journal of Contemporary

China, 19:461477, 2010.

xxxi: the politics of inequality (dec. 8)

Branko Milanovic. The return of patrimonial capitalism: A review of thomas

pikettys capital in the twenty-first century. Journal of Economic Literature,

52(2):519534, 2014.

James K. Galbraith. Kapital for the twenty-first century? Dissent, (Spring), 2014.

xxxii: wrap-up and review (dec. 10)

xxxiii: fin. (dec. 19)

Final Exam - 12:30 - 2:30.

Documents

Winecoff_Y376_Fall2014