Bachelor
2020/2021
International Political Economy
Type:
Compulsory course (HSE University and Kyung Hee University Double Degree Programme in Economics and Politics in Asia)
Area of studies:
Foreign Regional Studies
Delivered by:
Faculty of World Economy and International Affairs
When:
2 year, 1, 2 module
Mode of studies:
offline
Instructors:
Konstantin Korneev
Language:
English
ECTS credits:
4
Contact hours:
60
Course Syllabus
Abstract
IPE is a field that explores the interaction between domestic and international factors as well as political and economic forces that shape/change international relations. The topics include IPE theoretical perspectives, international trade theories and regimes, global monetary/financial regimes, cross-border investment and production, international development, and various globalization issues. Some of important contemporary IPE issues will be discussed during the class with mandatory/voluntary student presentation.
Learning Objectives
- Understand the key topics, concepts, and issues of IPE
- Differentiate various theoretical perspectives of IPE
- Understand global/regional trade regimes and related IPE issues
- Examine the international monetary and financial relations and the mechanism of global financial crisis
- Explore the debates over globalization and its impacts
- Institutional theory and its significance for international political
Expected Learning Outcomes
- Understanding the subject of the course “International political economy”, its significance for the interpretation the processes that form the landscape of intergovernmental/business/non-profitable mechanisms in historical view and modern realities.
- Work with habit-reversal training on such issues of international political economy as ideological systems, domestic and foreign policy, international cooperation (principles, goals, and possible means), monetary policy, global trade, financial crisis, civilizational factors. Ability to apply multidisciplinary approach to the research tasks at the intersection of humanitarian and exact sciences.
- Knowledge of postulates and scientific methods of most common socio-economic theories: Marxist, (neo) Liberal, (neo) Classical, Civilizational, Institutional etc. Developing of own vision towards the problems of international political economy which are under consideration within current educational course.
- Well-developed skill of participation in discussion on the issues of international political economy discipline with the attraction of certain evidence base and scientific methods, for instance – analysis, review, and evaluation.
- Provision of analytical, communication and consulting support for different players which are divided into groups of interest: state administration, political parties, public associations, local self-government organs, etc.
- Collection and initial analysis of data, relying on a wide range of sources and employing up-to-date data processing methods and communication technologies; creation and implementation of group projects for the purpose of deeper understanding the course’s relevance.
- Preparation of analytical presentations, reports and notes, as well as research papers and information materials based on the results of research activities such as political analysis of international organizations’ charters, state laws and regulations, government programs and plans.
- Ability to make short-term forecast of the world’s economic development taking into account probability of global financial crisis, geopolitical tension, role of international organizations and value of core macroeconomic indicators (gross domestic product, unemployment rate, institutional factors).
Course Contents
- What is IPE?What were the principal factors that determined the severity of the recession of 2008-9? How did the gold standard operate automatically to bring the payments position of countries into equilibrium? Levels of analysis, 4 approaches of IPE (domestic/international, political/economic) Lecture plan: - Course organization - What is IPE? Levels of analysis 4 approaches of IPE (domestic/international, political/economic) Three IPE Ideologies (theories, theoretical perspectives) - Four Perspectives of IR - A Brief History of World Economy 17C-18C (Pre-1914) Inter-War Period (1914-1945): Economic chaos Post-1945: Bretton Woods System Collapse of Bretton Woods System Global Financial Crisis (2008)
- Theoretical Perspectives of IPEWhich theoretical perspective is more compelling in explaining recent IPE phenomena? Explain core differences between IPE schools and their views in the 20th century. Realism (Economic Nationalism), Liberalism, and Marxism Lecture plan: - Three Ideologies of IPE Gilpin / Cohn Realism: economic nationalism Liberalism: three variants Marxism: other leftist theories New Institutionalism (Coase/North) - Realist (Economic Nationalist) Perspective The Mercantilist Realism and the Industrial Revolution The Revival of Realist IPE (Gilpin) Hegemonic Stability Theory - Liberalist Perspective Basic Tenets of the Liberal Perspective Orthodox Liberalism The Influence of John Maynard Keynes (1883-1946) Keynesian Liberalism in the Postwar Period A Return of Orthodox Liberalism Liberalism and Institutions (Liberal Institutionalism) Regime Theory - Marxist Perspective Karl Marx: (1818-1883) Historical materialism Vladimir Ilyich Lenin (1870-1924) Imperialism Dependency theory World System theory (Wallerstein) - Institutionalist Perspective Ronald Cause: (1910-2013) The role of property rights in the political economy Douglass North (1920-2015) The role of institutional changes in economic structure Path dependence effect The importance of transaction costs for developing economies Student debate 1: Ideologies of IPE (Realism vs. Liberalism) What will be the future of Global Economy? Which perspective offers a better prediction?
- International collaboration and coordination (I)Why does globalization increase the pressure for international collaboration? How to mitigate the consequences of global contradictions for local economies? IR debates over Prisoners’ dilemma(realist vs. institutionalist); how can/cannot states overcome intrinsic problems of international cooperation? Lecture plan: - Globalization - The Need for International Cooperation - Game Theoretic Approach The Prisoners’ Dilemma The Stag Hunt Battle of the Sexes - Solutions for Cooperation - The Formation of Institutions - Institutional Design
- International collaboration and coordination (II)Can enforcement really be carried out in international political economy? Which IPE mechanisms are effective for regional cooperation? Applying game models (such as Prisoners’ dilemma, Battle of Sexes, Chicken, Deadlock) to the analysis of real world IPE issues (e.g. trade war b/w the US and China) Lecture plan: - Solutions for Cooperation - The Formation of Institutions - Institutional Design Student debate 2:International collaboration and coordination (Can IIs overcome cooperation problems?)
- Domestic Politics and IPE (I)If the economic case for trade liberalization is so strong, why is it that governments continue to impose barriers to trade and are engaged so frequently in trade disputes? What is the role of IPE in forming countries’ domestic politics? Economic/political theories of domestic preferences, collective action problems Lecture plan: - Introduction - Foreign Economic Policy Issues Trade, Immigration, Foreign Investment, Exchange Rates - Economic Factors (economic interests, preferences)
- Domestic Politics and IPE (II)What types of electoral and policymaking institutions tend to mitigate the effects of lobbying by protectionist groups when it comes to the determination of trade policy? Are electoral systems based on proportional representation likely to generate less protection than plurality systems? The effects of political institutions on foreign economic policy, two level games Lecture plan: - Political Factor (the effect of domestic politics institutions) –preference aggregation, representation (delegation, implementation) Types of Political Systems, Electoral rules, Legislatures and Policy-making Rules, Bureaucratic Agencies - Complications to Analysis Information and Ideas, Policy and Issue Linkages, International Bargaining Student debate 3: Rogowski, Commerce and Coalition (Factor model vs. Specific factors model) How can we apply Rogowski’ model to current trade war?
- International Trade theory and Global Trade regimesWhat are the basic components of the international trade regime? Give examples. What was the role of the developing countries in the Uruguay Round negotiation? Why was it historically significant? Historical developments from GATT to the WTO, Institutional features of the WTOand its dispute settlement system Agenda: - Historical Developments of Global Trading System - What Is WTO (World Trade Organization)? What Has Changed from GATT to WTO? - WTO Dispute Settlement System: Can Rule Control Power? Student debate 4: The future of WTO (Optimistic vs. Pessimistic)
- Midterm Exam
- Regionalism and Regional Trade regimesHow does the pattern of recent RTAs differ from that of the 1960s and 1970s? Why might companies lobby for liberalization at the regional rather than the global level? Types and developments of regionalism (European integration); Comparison between European model and other regional models Lecture plan: - Introduction: Definition/Type - Why Regionalism? Economic/Political reasons - History of Regionalism - Regionalism and Multilateralism (WTO) - IR theories and Regionalism Student debate 5: East Asian Regionalism (TPP vs. RCEP) Critical evaluation on various ideas over East Asian Regionalism, such as TPP, RCEP, CJK FTA, etc.
- International Monetary and Financial Regimes (I)Is a hegemonic leader necessary for a stable international monetary and financial system to exist? How did these regimes influence the world economy development in retrospect? Historical changes of monetary regime from gold standard to Bretton Woods system to the post-BW system Lecture plan: - Introduction: What is IMS? Key Concepts - Historical Changes of IMS: International Gold Standard (1870-1914) The Interwar Period (1914-1944) Bretton Woods Monetary System (1945-1971) Nixon Shock (1971) and the Collapse of BW system (1973) Post BW system (1973-) - Unholy Trinity (Impossibility theorem) - Global imbalance and 21C global monetary order (or disorder)
- International Monetary and Financial Regimes (II)Will the SDR ever become the dominant reserve currency in the world? What would be the costs and benefits? What is the role of trade balance for evaluating the intensity of international cooperation? Lecture plan: - Unholy Trinity (Impossibility theorem) - Global imbalance and 21C global monetary order (or disorder) Student debate6: Unholy Trinity (Capital Mobility vs. Fixed Exchange Rate vs. Monetary Policy) Why can’t three elements hold together at the same time? Which combination should be adopted?
- Global Financial Crisis (I)What causes financial crises, and why do some quickly spread around the world? How durable are current political constraints on multilateralizing and formalizing better instruments for managing and resolving financial crises? Cause and effects of financial crisis, comparison between 1980s Latin American Debt Crisis, 1997/8 East Asian Financial Crisis, and 2008 Global Financial Crisis Lecture plan: - Introduction - National Politics and International Markets - Variety of Financial Crises - Cases of Global Financial Crisis - Crisis Prevention - Crisis Management and Resolution
- Global Financial Crisis (II)Compare 1980 Latin American Crisis, 1997/8 East Asian Financial Crisis, and 2008 Global Financial Crisis. What do you thing about conceptions of cyclical nature of economic crises? 2008 Global Financial Crisis and European Fiscal Crisis Lecture plan: The Causes and Effects of 1980 Latin American Crisis The Causes and Effects of 1997/8 East Asian Financial Crisis The Causes and Effects of 2008 Global Financial Crisis. Student debate 7: 2008 Global Financial Crisis (cause of crisis: China vs. US) What is the cause of the 2008 Crisis? Moral hazard, global imbalance, etc.
- Key issues of Globalization (I)Will the nation State survive or demise in the future? How can international economic institutions foster or hinder the globalization processes? Globalization of production and investment, Global Value Chain Lecture plan: - Globalization - Globalization Debates Sovereignty at bay Race to the bottom - Modeling the world economic development The most common types and methods of modeling Adaptation of models to changes in global markets and the value of expert opinion
- Key issues of Globalization (II)What are the advantages and disadvantages of the various ways of examining the extent of inequality within and between countries? Why do any countries of one region achieve impressive results in economic development while others lag behind for decades? Globalization and Inequality and wrapping up Lecture plan: Varieties of Capitalism Global civil society Global Value Chain
- Final Exam
Assessment Elements
- Research work 2Changed for the second module
- Quize 1Changed for the second module
- Research work 1Changed for the second module
- Debate 1Changed for the second module
- Attendance and class participationChanged for the second module
- Midterm exam
- Presentation 1Changed for the second module
- Presentation 2Changed for the second module
- Quiz 2Changed for the second module
- Debate 2Changed for the second module
- Debate 3Changed for the second module
- Debate 4Changed for the second module
- Final examPlatform - Zoom
Interim Assessment
- Interim assessment (1 module)0.2 * Attendance and class participation + 0.05 * Debate 1 + 0.05 * Debate 2 + 0.05 * Debate 3 + 0.05 * Debate 4 + 0.3 * Midterm exam + 0.05 * Presentation 1 + 0.05 * Presentation 2 + 0.05 * Quiz 2 + 0.05 * Quize 1 + 0.05 * Research work 1 + 0.05 * Research work 2
- Interim assessment (2 module)0.1 * Attendance and class participation + 0.05 * Debate 1 + 0.05 * Debate 2 + 0.05 * Debate 3 + 0.05 * Debate 4 + 0.4 * Final exam + 0.05 * Presentation 1 + 0.05 * Presentation 2 + 0.05 * Quiz 2 + 0.05 * Quize 1 + 0.05 * Research work 1 + 0.05 * Research work 2
Bibliography
Recommended Core Bibliography
- Altman, R. C. (2009). The Great Crash, 2008: A Geopolitical Setback for the West. Foreign Affairs, 88(1), 2.
- Frieden, J. A., & Lake, D. A. (2000). International Political Economy : Perspectives on Global Power and Wealth (Vol. 4th ed). London: Routledge. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=83119
- Gilpin, R. (DE-588)119214512, (DE-627)080012914, (DE-576)21166524X, aut. (1987). The political economy of international relations Robert Gilpin.
- Global political economy ed. by John Ravenhill. (2011).
- Koremenos, B., Lipson, C., & Snidal, D. (2004). The Rational Design of International Institutions. Cambridge University Press.
- McGlinchey, S. (2017). International Relations. E-International Relations.
- Niall Ferguson, & Moritz Schularick. (2007). “Chimerica” and the Global Asset Market Boom. International Finance, 3, 215.
Recommended Additional Bibliography
- Aslanbeigui, N., & Oakes, G. (2015). On Coaseana: Critique of a Political Economy.
- Hiscox, M. J. (2001). Class Versus Industry Cleavages: Inter-Industry Factor Mobility and the Politics of Trade. https://doi.org/10.1162/002081801551405
- Jackson, J. H. (DE-588)124404073, (DE-576)161553621. (1998). The world trade organization : constitution and jurisprudence / John H. Jackson. Royal Inst. of International Affairs.
- Theodore H. Cohn. (2016). Global Political Economy : Theory and Practice: Vol. Seventh edition. Routledge.
- Weingast, B. R., & Wittman, D. (2008). The Oxford Handbook of Political Economy. Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.oxp.obooks.9780199548477