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POLS90026

InternaonalPolicalEconomy

Semester2,2013

Seminar1:

IntroduconWhatisIPE?

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Introducons

Coordinators:

JikonLai:jikon.lai@unimelb.edu.au

AndrewWalter:andrew.walter@unimelb.edu.au

SeminarAssistant

JonathanSchultz:schultzj@unimelb.edu.au

(ContactJonathaninthefirstinstanceinregardtogeneralinforma5on,absences,assignments,andotherques5ons)

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Resourcesandcommunicaon

LearningManagementSystem(LMS):www.lms.unimelb.edu.au

Subjectguide,assessmentdetails,linkstoreadings,announcements

PleasecheckLMSregularlyPleasealsocheckyouremailregularly

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Assessment

Briefingpaper:500words,due4:30p.m.,oneweekaerrelevantseminar(10%)

Essay:2,000words,due3pm,Monday,7October2013(40%)

Choosefromthelistprovided

Mustbeonadifferenttopictobriefingpaper Exam:threehours,threequesons(50%)

WillbeduringExaminaonWeekPleasereadthedetailsintheSubjectGuideinregardtomarking

criteria,submissionprocedures,plagiarismpolicy,latepenal5es,

extensionrequests,etc

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Seminars

Youshoulda]endone2hourseminarperweek(theoneforwhichyouareregistered)

Seminarswillbeinteracve:amixofshortlectures,groupexercises,casestudies,discussion

Emphasisonacve&peerlearning Itisessenalthatyoucompleteatleasttherequiredreadings

eachweekinadvanceoftheseminar

Youmusta]endatleast75%ofseminarstopass Explainallabsences(toJonathan)&providedocumentaon

whereapplicable

Lecturecaptureisabackup,notasubstutefora]endance

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OutlineofSeminarTopics

1. Introducon:WhatisIPE?2. TheCrisisofMullateralEconomicGovernanceintheInter-warperiod3. TheBre]onWoodsSystem&theReconstruconoftheInternaonal

PolicalEconomy

4. GATTandtheGlobalTradeSystem5. ThePost-Bre]onWoodsMonetarySystem:CrisisandFragmentaon6. TheWTOandtheContemporaryGlobalTradeSystem7. GlobalisaonandNaonalPolicies8. GlobalFinancialCrises:CausesandConsequences9. RegionalEconomicGovernance10.Non-TeachingPeriod(beginning30September)11.ThePolicsofNaturalResourcesandEnergy12.ContemporaryChallengesforGlobalEconomicGovernance13.RolePlay:NegoangGlobalEconomicGovernance

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Week13:internaonaleconomic

negoaon

Negoaonwillcommenceatthebeginningofclassinweek13Teamsmustformbyendofweek5TeamleadersmustnofyJonathanofteamcomposion&countrybyendofweek6Objecvestobeannouncedweek8Preparenegoaonstrategiesbyendofweek12

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Classdiscussion

Isstudyingthepolicsoftheglobaleconomyessenalforunderstanding

internaonalrelaons?

Whyorwhynot?

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Theglobalpolicaleconomyin

crisis

Thepost-1990newworldorder Itstheeconomy,stupid Triumphofmarketliberalism,globalisaon PeripheralcrisesweakenedchallengestoUS/Western

dominance

Muchmorefragilethanitfirstappeared Globaleconomy,pluralistpolics Financialfragilityinthecore

RiseofChina&otherBRICs

Legimacydilemmasinmajorinternaonalinstuons,newemergingbalanceofpower?

IPEcouldbeseenasthemostessenalareaofIR

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Whywasthisnotalways

accepted?

Mutualneglect:IR&internaonaleconomics IRsfocusonhighpolics(post-WWI,ColdWar)Mathemacizaonvs.unquanfiablevariablesinIR

Stabilityofcapitalisteconomiesunlearly70s

Whatchanged?Realworldevents:Changingsecurityenvironment(dtente)

Growingeconomicconflict&instabilityin1970s

Economicinterdependencevs.naonalautonomyUSrelavedecline(anoldstory.)

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EarlyIPE(late60s,70s)

OriginsinIR(Strange,Gilpin,Krasner),withhelpfromafeweconomists(Kindleberger,Cohen) Frustraonwithapolicismofmucheconomics Perspecves:mercanlism,liberalism,Marxism

Focusonsystem-levelquesons Whatproducesglobaleconomicstability/openness? hegemonyastandardanswer

Problems Ina]enontodomescfactors&variaon Methodology:wereperspecvestestable? Economicsenvyamongyoungerscholars Statesvs.Markets dichotemyproblemacallmodern

capitalismisstastinsomesense

i d i b

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Economicoutcomesdrivenby

regulaon(e.g.immigraon)

Source: ILO database, 2010.

Yearly equivalent wage, first-level teacher (US$), 2005

0

10,000

20,000

30,000

40,000

50,000

60,000

Bahrain

CostaRica

Cuba

Cyprus

Finland

Korea

Portugal

Moldova

Romania

ThailandUK

Zambia

US$

peryear

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Newraonalistapproaches

Differentvariees Neo-realism:raonalist,system-focused(e.g.Gowa) Domescinterests(e.g.Frieden,Rogowski) Domescraonalistinstuonalism(e.g.Milner)

Sharedposivistassumpons&goals Wanttestableproposionstodevelopbroadorconngent

generalizaons

Problems Method&data-driven? Stast&raonalist

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Ideas-BasedApproaches

Interestsarentgiven/uncontested,butshapedbyideasassocialfacts

Twomainvariees Gramscians(Cox,Gill):ideasserve&reinforcematerial

power

Construcvists(Ruggie,Katzenstein):ideas/beliefsallowactorstounderstandtheirworld&theireconomicinterests,&thusshapepolicyoutcomes

Problems: Peopleknowwhattheydo;theyfrequentlyknowwhytheydowhattheydo;butwhattheydontknowiswhat

whattheydodoes(Foucault)

Behaviouralpsychologistsevendoubtthefirsttwo Tesng &falsificaondifficult(&suspectforsome)

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The rise of China: simple economic

facts

-10

-5

0

5

10

15

20

China Japan United States

0%

10%

20%

30%

40%

50%

60%

70%

80%

JapanChina

Japan, China: GDP relativeto US GDP (current US$)

Annual real GDP % growth,1980-2017E

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But what does it mean?

How should we understand theimplications of Chinas rise for the

global economy & internationalrelations?

A t tl th d l i l

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Atransatlancmethodological

divide?

AmericanSchoolConvenonalsocialscienceOntology:State-centricEpistemology:explanaon;problem-solving,hypothesis-tesng;mid-rangetheory

BrishSchoolEclecc,interdisciplinary,normave,lessscienceOntology:PluralistEpistemology:understanding,crique,historicism

Caricatures?Risksanendlessmethoddebate?

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Conclusion:whatisIPE?

Notaboutdiscoveringbesteconomicpolicies

Policaleconomyfocusesonexplainingeconomic&policaloutcomes

Broadconsensusthatinterests,instuons&ideasallma]er Buthowtoassesstherelaveimportanceofmaterial&

ideaonalfactors?

Risingcomplexity,searchforparsimonioustheoryelusive Areturntosystemic&normavequesonsneeded?

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