DRAFT SYLLABUS The syllabus is also posted on our iLearn course page. Any changes will be posted on iLearn and announced in class. The syllabus is also posted on our iLearn course page. Any changes will be posted on iLearn and announced in class. International Political Economy IR 312 Spring 2009 Tues. & Thurs. 12:20-2:00pm Thornton Hall 327 Kathleen McAfee 4 units Prerequisites IR 308, ENG 214, & upper division standing or instructor’s permission Office hours HSS 381 most Tuesdays & Thursdays 2:15-3:45 and by appointment: kmcafee@sfsu.edu Graduate Teaching Assistants: Maya Fallaha maya6785@gmail.com Melanie Foreman melanief7@gmail.com REQUIRED TEXTS: (SFSU bookstore.) Robert O’Brien & Marc Williams 2007 Global Political Economy 2nd edition Palgrave/MacMillan (± $37 new) 978-0230006690 supplement to main textbook: Dollars & Sense Collective 2007 Real World Globalization 9th edition Dollars & Sense Books (±$21 new) 1-878585-44-4 WEEK 1 1. Jan. 27 Overview of course themes, logistics, & expectations Lecture: What is political economy? Why is IPE controversial? Course topics, requirements, grading; students’ questions READING O&W part of Ch 1 Understanding the global political economy pp 11 –26 Video: S Bradshaw (dir) Life: The Story So Far 24 min SFSU AV#10151 2. Jan. 29 The rise of capitalism: globalization phase I READING BEFORE CLASS: O&W Ch 2 Forging a world economy pp 43 –76 Lecture & discussion: The world from 1300 – 1800; Origins & dynamics of capitalism; Empires & their consequences ASSIGNMENT 0: 150-200 word mini-biography + your questions and anything else you’d like to request or mention about the class topic. Post on iLearn BEFORE midnight Saturday, but it’s better not to wait until Saturday to do it. This assignment IS required but will not be letter-graded. WEEK 2 3. Feb. 3 The emergence of a global economy: globalization phase II READ BEFORE CLASS: O&W Ch 3 Industrial revolution, pax Britannia and imperialism pp77 – 105 Lecture & discussion: Industrial revolution; transition from feudalism to mercantilism to free trade; colonies & the world economy 4. Feb. 5 Economic history & ideology in the 20th century: the case for neoliberalism READING RWG Ed 9 Article 5: A MacEwan 2000 ‘Free markets, economic development, and international commerce’ Video: The Commanding Heights Chapters 1 -8 You can view the entire video series at The Commanding Heights Chapters 1 -8 You can view the entire video series at http://www.pbs.org/wgbh/commandingheights/hi/story/ch_menu.html You can read or download the full transcripts http://www.pbs.org/wgbh/commandingheights/hi/story/tr_menu.html ASSIGNMENT 1: Submit on iLearn by midnight Saturday your 400-500-word summary of this week’s main ideas, guided by these questions: Some scholars say that today’s ‘globalization’ isn’t something new, but only the 3rd phase of cycles of globalization that began about 1492 If the current phase of globalization (since 1945 & especially in the past 25 years) is Globalization Phase III, 1. Summarize the processes & results of “globalization Phase I” (European conquest & colonization 16th – early 19th centuries) and 2. Summarize the processes & results of “globalization Phase II” (British empire, scramble for Africa: mid-19th C – early 20th C/ World War I) WEEK 3 5. Feb. 10 The 20TH century 1: world wars & depression; the 1945-1970s ‘golden age’ READ BEFORE CLASS: O&W Ch 4 World wars & the post-1945 order pp 106-127 Lecture & discussion: J.M Keynes, Bretton Woods; US hegemony & the ‘3 worlds’; the developmental state 6. Feb. 12 The 20TH century 2: 1970s-early 2000s: end of the golden age; globalization phase III READ BEFORE CLASS: O&W Ch 4 World wars & the post-1945 order pp 130-133 (conclusion) Lecture & discussion: Stagflation & the rise of neoliberalism; global markets & the competition state WEEK 4 7. Feb. 17 Global expansion of trade; governments & trade Lecture & discussion: Overview of economic trends post WWII; comparative advantage; free trade and protectionism (global governance & multilateral institutions will be addressed in more detail during Week 13) READ BEFORE CLASS: O&W Ch 5 International trade pp 137-173 CPE Brief ‘Free Trade and Comparative Advantage’ iLearn RECOMMENDED: RWG EDITION 9 20 ‘ABCs of the global economy’ pp 99-108 AND 21 ‘ABCs of free trade’ pp 109-117 Lecture & discussion: The market world; methodological individualism; classical . neoclassical economics, efficiency, externalities 8. Feb. 19 Political economy theory I: market-centered theory READ BEFORE CLASS: R Miller 2006 ‘Neoclassical economics & the market model’ pp 1 -13 iLearn A Smith 1776 short excerpt from The Wealth of Nations (1999) pp 117ff iLearn C Tilly 1989 ‘Shaking the invisible hand’ in pp 90-92 in Real Word Micro Dollars & Sense iLearn RESOURCES: M Friedman 1962 “The relation between economic freedom & political freedom’ pp 7-21 Capitalism & Freedom University of Chicago Press iLearn M Friedman 1962 “The relation between economic freedom & political freedom’ pp 7-21 Capitalism & Freedom University of Chicago Press iLearn ASSIGNMENT 2: 400-500 words (= about two 12-pt double-spaced pages) Post on iLearn BEFORE MIDNIGHT SATURDAY ANSWER 2 OF THESE 3 QUESTIONS ABOUT THE MARKET MODEL 1. Describe a few of the assumptions about human nature that market-oriented theorists tend to share, and describe 2 or 3 reasons why or situations in which these assumptions might not be reliable bases for predicting economic choices or behaviors. 2. Describe several of the implications for economic policy that are endorsed by most advocates of market-centered economic theories Illustrate with 2 examples of where, when, & how such policies have been applied. Choose one example from pre-WWII (1939-44) & one from between WWII & the present. 3. List some of the conditions that need to be met in order for the market’s “invisible hand” to guide economic outcomes in the ways that are predicted by market-oriented economic theories, and Give 2 examples of reasons why or situations in which these assumptions may not be valid or applicable to modern capitalist economies. WEEK 5 9. Feb. 24 The changing contours of the global economy READ BEFORE CLASS: P Dicken Global Shift Ed. 5, Ch 2 ‘The changing global economic map’ Especially read the charts, maps, & tables iLearn RESOURCES: ETC Group 2005 Oligopoly Inc. Concentration in Corporate Power Communiqué 91 iLearn Lecture & discussion with slides: Who makes what, how, & for whom? Who imports what, exports what, & to where? QUIZ on data in Dicken 10. Feb. 26 Neoliberalism: policies, critiques, resistances [If SFSU teach-in is scheduled for this day film may be postponed.] Video: Florian Opitz: The Big Sellout 95 min. WEEK 6 11. Mar. 3 Rise of TNCs; transnational production; structural changes in the global economy READ BEFORE CLASS: O&W part of Ch 6 Transnational Production pp 174-207, especially the beginning (pp 174-179), the section starting on p180 about the pros and cons of TNCs, and pp 195-200 about "reevaluating the benefits of FDI". RECOMMENDED: Any or all articles in RWG Section 2 Lecture & discussion: From Fordism to flexible production; TNCs; commodity chains; the changing economic roles of governments Video: Barrat & Alpert Geraldo Off Line 23 minutes SFSU AV#10152 12. Mar. 5 The global division of labor READ BEFORE CLASS: part of O&W Ch 8 Global division of labour especially pp 240-256 part of O&W Ch 8 Global division of labour especially pp 240-256 Lecture & discussion: The decline of the state? The World Bank, IMF, structural adjustment; The UN & its agencies ASSIGNMENT 3: Foreign investment; the new international division of labor a) Explain the difference between foreign direct investment (FDI) and foreign portfolio investment. b) Mention two reasons why some analysts argue the FDI will promote development & two reasons why others question the benefits of FDI to low-income countries. c) As a result of the globalization of production how has the international division of labor among countries, especially the role of formerly colonized countries, changed over the past 60 years? d) What is the role of the 4 ‘Asian tigers’ in this new international division of labor? WEEK 7 13. Mar. 10 Political economy theory II: Society-centered theory READ BEFORE CLASS :K Marx & F Engels 1848 Manifesto of the Communist Party Part I ‘Bourgeois & Proletarians’ can be found at http://www.anu.edu.au/polsci/marx/classics/manifesto.html and other sites iLearn LISTENING: P Gaspar 2006 MP3: KPFA 5 23 06 Against the Grain http://www.kpfa.org/archives/index.php?arch=14245 iLearn RESOURCES: R Miller ‘Classical Marxism and the capitalist mode of production’ iLearn M Berman 1982/88 ‘The melting vision & its dialectic’ pp 90 – 98 in All That Is Solid Melts Into Air Penguin iLearn Lecture & discussion: Theories of the social world: from classical . neo-Marxist 14. Mar. 12 Comparing market- & society-centered models of human nature, economy & social change READ BEFORE CLASS: R Pollin 2006 ‘What’s wrong with neoliberalism: the Marx, Keynes, & Polanyi problems’ iLearn in Real World Macro Dollars & Sense pp 106 – 109 Lecture & discussion: Limits and challenges to market-centered theories of political economy ASSIGNMENT 4: In 400 – 500 words, summarize some of the core ideas in Marx’s theory of political economy with regard to the following issues: 1. How did European society in the mid-19th century differ from Europe in the past or other ‘traditional’ pre-industrial societies. In other words, what were the effects on society of capitalist agriculture & capitalist industrialization were already appearing by 1848 (the date of the Communist Manifesto). 2. How did Marx view human nature and/or human motivations differently than Smith & other late-18th C -mid-19th C liberals? 3. What, in your view, is the most important point about which Marx’s ideas and the liberal, “market model” of classical & neoclassical economics do not agree. 4. Mention one point on which Marxists and advocates of the “market model” are in agreement. WEEK 8 15. Mar. 17 Mid-term review 16. Mar. 19 Mid-term exam SPRING BREAK ING BREAK WEEK 9 17. Mar. 31 The global financial system I READ BEFORE CLASS: O&W Ch 7 The global financial system pp 208-227 (OK to skip regional currencies) and pp 231-238 Lecture & discussion: Capital movements; global financial regulation & the global financial architecture QUIZ on the financial system 18. Apr. 2 The global financial system II READ BEFORE CLASS: Robert Wade ‘Burst Bubble, Frayed Model’ iLearn RWG Article 13 A MacEwan ‘What causes exchange rate fluctuations?’ 73-75 RWG Article 16 Ellen Frank ‘Where Do U.S. Dollars Go When the United States runs a Trade Deficit?’ pp 81 – 82 RWG Ed. 9 Article 18 J Miller ‘Dollar Anxiety: Real Reasons to Worry’ pp 85 -92 OPTIONAL NEW MATERIAL TBA iLearn CHECK I-LEARN FOR OTHER SHORT READINGS ASSIGNMENT 5: GLOBAL FINANCIAL SYSTEM: 1. Briefly summarize, in two or three sentences each, what O&W call “the 3 major developments” in the global financial system since end of WWII: a. The move from fixed to floating exchange rates b. Financial innovation [speed, new instruments, deregulation] c. Debt crises in the 1980s, financial crises since then [& continuing...] 2. Discuss in a few ¶s any one of the 3 following topics. You’ll need to make reference to a, b, or c above (or all 3) to explain the topic: i The debt crises facing Mexico in the 1980s-1990s: causes, responses, consequences ii The 1997-99 financial melt-down in E & SE Asia: causes, responses, consequences iii Current US-China trade relations & currency disputes: causes, responses, consequences WEEK 10 19. Apr. 7 TBA film or guest speaker 20. Apr. 9 TNCS, development, and US policy: the case of Indonesia Discussion of mid-term results Video: John Pilger: The New Rulers of the World 53 min. WEEK 11 21. Apr. 14 The global ‘North’ & ‘South’; the effects of trade and FDI on development READ BEFORE CLASS: O&W Ch 10 Economic development pp 292-331 pp 292-331 VIEW BEFORE CLASS: UNDP Animation: http://www.gapminder.org/downloads/presentations/human-development-trends-2005.html RESOURCES: Peet & Hartwick 1999 ‘Dependency theory’ & ‘World systems theory’ pp 107-115 Theories of Development iLearn Lecture & discussion: Developmental states, import-substitution industrialization; FDI; underdevelopment/ dependency theories 22. Apr. 16 Global governance I – States and multilateral institutions: Bretton Woods (IMF & World Bank), U.N. READ BEFORE CLASS: O&W Ch 12 Ideas p372-mid p376, pp 378-81; O&W Ch 13 Governing the GPE pp 385-top p396, mid p 400-top p 405; Review p316-top p321 Lecture & discussion: The decline of the state? The World Bank, IMF, structural adjustment; The UN & its agencies ASSIGNMENT 6: Development -O’Brien & Williams identify 2 main debates in development policy and scholarship: • is the failure of most countries to achieve “development” best explained by internal or external causes? • in pursuing “development”, which should be primary: the state or the market? (a) What sorts of internal causes of ‘underdevelopment’ have been used explain thwarted development? (b) What sorts of external or structural causes may explain blocked development & growing inequality? (c) What factors and policies help to explain why S. Korea and Taiwan succeed in changing their position in the international division of labor? (d) Why do you think the majority of would-be developing countries have failed to replicate the successes of countries such as S. Korea and Taiwan in the NIDL? (e) Based on your opinion on this, would you look for solutions more toward the global market or the developmental state &/or regional development & trade alliances? Possible video: Walker Whose Agenda Is It Anyway? 23 min WEEK 12 23. Apr. 21 Global Governance II – The World Trade Organization REVIEW: O&W Ch 5 International trade pp 153-168 READ BEFORE CLASS: WTO (no date) ‘The WTO in brief’ http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm 8 pp iLearn RWG Ed. 9 Article 24 T Wise 2003 ‘World Trade Talks Collapse’ pp 134-138 &/or newer articles about the recent WTO talks collapse iLearn Lecture & discussion: The WTO and its critics 24. Apr. 23 TBA film or guest speaker WEEK 13 25. Apr. 28 Political economy of the global environment READ BEFORE CLASS: Jared Diamond ‘What's Your Consumption Factor?’ NY Times opinion editorial Jan 2, 2008 iLearn J B Foster 1999 Ch 6 ‘The vulnerable planet’ pp 108 – 124 in The Vulnerable Planet Monthly Review iLearn Video: The Story of Stuff 20 minutes The Story of Stuff 20 minutes Lecture & discussion: Is the global economy ecologically sustainable? Ecological debt, environmental rights; global regulation 26. Apr. 30 Environmental governance READ BEFORE CLASS: O&W Ch 11 Global environmental change pp 332-362. Read section starting p 339-343, & pp 345-351, & bottom p 359-mid p 361. RECOMMENDED: K McAfee 2003 ‘Whose Planet Are We Saving?’ http://www.kmcafee.com/whose_planet.php iLearn Video: The Ecological Footprint 30 minutes Lecture & discussion: Environmental treaties, green markets & other responses; techno-centric, eco-centric & eco-social approaches ASSIGNMENT 7: ENVIRONMENT: Post your own 400-500 word summary of the 4 ecological and the 4 counter-ecological principles described by Foster. WEEK 14 27. May 5 Global trade in primary commodities: the case of coffee Video: Black Gold Mark & Nick Francis Speak It Films 2007 Followed by class discussion Fair trade info: http://www.blackgoldmovie.com/ http://www.altereco-usa.com http://www.transfairusa.org http://www.oromiacoffeeunion.org 28. May 7 Civil society, social movements, NGOs; the World Social Forum READING: Reports from World Social Forum 2007 in Nairobi iLearn Lecture & discussion: Civil society, social movements, non-government organizations GUEST SPEAKER TBA WEEK 15 29. May 12 READING: Beyond the Washington consensus? Emanuel Wallerstein 2008: The Demise of Neoliberal Globalization RESOURCES: Kwa: 2007 Rethinking the Global Trade System Skim the document but concentrate on chapters 5 & 6 iLearn J E Stiglitz 2002 ‘Globalism’s discontents’ from Lechner & Boli The Globalization Reader pp 200 – 207 iLearn D Froning 2000 ‘The Benefits of Free Trade’ Heritage Foundation iLearn R Broad & J Cavanagh ‘The death of the Washington consensus?’ 1.9 56 -59 Backlash iLearn Any and all articles from RWG Ed. 9 Chapter 9 on ALTERNATIVES Class discussion or activity: TBA Video: Another World is Possible 24 min. deo: Another World is Possible 24 min. 30. May 14 Review for final exam; discussion & questions ASSIGNMENT 8: Post your own view: Is another world desirable? necessary? possible? How can we get there? or how can we stay here? 400-500 words by Sat. 11:55 pm. FINAL EXAM: Thursday, May 21 10:45 -1:15 GRADING: You can earn a total of 1,000 points. Here’s how: Assignments: = up to 300 points (up to 50 points each for the best 6 of 8 required and graded assignments) There are 9 assignments. The first (Assignment 0) is CR/NC. The other 8 will be graded: There are 4 before the mid-term exam and 4 after the mid-term. You should do all 9 to improve your comprehension. This also increases your chance of earning close to 300 points because your lowest 1-2 grades may be dropped. If you submit fewer than 3 graded assignments before the mid-term &/or fewer than 3 graded assignments after the mid-term 40 points will be deducted for each missing assignment Midterm exam = up to 200 points Final exam = up to 300 points Attendance = up to 100 points Student who miss more than two classes without documented excuses will lose attendance points. Participation: taking part in discussions and/or iLearn forums and doing well on quizzes = up to 100 points COURSE LOGISTICS AND TIPS: The syllabus is subject to change with notice. We plan to stick to the weekly topics schedule unless there’s a compelling reason to change it. We may substitute materials for some of the supplementary readings on iLearn if we find really good, new items. If we do, you will be informed. You can always check iLearn to be sure you’re following the latest syllabus or to download an extra copy. Graduate Teaching Assistants: We are fortunate to have very bright and qualified TAs this term. They will provide feedback on your assignments and do part of the grading, lead pre-exam review sessions, and answer questions out of class. Please respect their time constraints when requesting help, but DO take advantage of their availability. They are here to help you. iLearn is your source for the additional required & optional readings. You can read them online or –better– print the readings for yourself to highlight or underline. ILearn staff can advise you. ILearn allows you & the instructors to keep track of your progress & maintain a record of your grades. Assignments: You should complete 4 assignments before the mid-term and 4 after the mid-term. Your lowest 2 grades will be dropped. If you submit fewer than 3 + 3 assignments, 40 points may be deducted for each one missing – an easy way to fail. (See explanation of grading above). Late assignments cannot be accepted except in cases of documented emergencies. This is to be fair to the instructor, TAs, & your fellow students. To give you flexibility they are due on iLearn by Saturday midnight, but that doesn’t mean you should wait until Saturday to do them! Assignments (not exams) are handled digitally (iLearn). You must upload your written work on iLearn. That’s how we read and grade your work and make comments for you. Preferred formats are .rtf or MSWord. You can use .pdf or plain text formats if you must. Avoid .wpd or .wps formats. Quizzes: There may be two or more quizzes during the semester on the assigned reading for any particular day. Some may be pop quizzes. Reading: You really do have to do it to do understand the lectures, pass pop quizzes, do well on assignments and exams, and get a decent grade. You won’t need to read every page of the all chapters in O’Brien & Williams. The required chapters and pages are specified in the syllabus. Taking notes and listing new terms and concepts will help you stay awake and remember the material. Bring your textbook to class, especially the class sessions when we will be discussing a textbook chapter, as indicated on the syllabus. Real World Globalization is a supplementary text with short, punchy articles by the Dollars and Sense magazine Editorial Collective. The assigned articles and others in the book can help give an overview of what’s a stake in the debates about IPE before you read O’Brien & Williams chapters. The on-line articles by the Center for Popular Economics (some are in the syllabus) is another good source of easier-to-digest information. Videos: They are interesting and they’re not just for fun. They deal with issues and concepts that may appear on the exams. Participation is important. You can’t get an A unless you attend regularly. Speak up in discussions! If you have trouble doing this, before you come to class, plan at least one think to say even if it’s just a question. If you’re still shy, speak to the instructor and/or the TA. We’ll help you. Every class has students who like to talk and feel at ease doing so. If you’re one of them, great! But keep your points brief and give others a chance. Office hours are for your benefit. If work or class schedule conflicts prevent you from coming at the stated times, the instructor or a TA can usually make an appointment with you at a mutually convenient time and place. Send one of us an email with IR312 in the subject line. E-mail: Schedule changes and other announcements will be sent to the address you use when you enroll. If you use a different email address, be sure to have your SFSU email forwarded to that address and check it regularly. The instructor or TA will try to answer your e-mailed questions. If you use more than one address, it’s hard for us to keep track of how to reach you. Whenever you write to us, put IR312 in the subject line of your message. Students with disabilities who need reasonable accommodations are encouraged to contact the instructor. The Disability Programs & Resource Center facilitates the accommodations process. The DPRC, in SSB 110, can be reached by telephone at 338-2724 (voice/TTY) or by e-mail at dprc@sfsu.edu. Plagiarism will result at least in failure of the assignment and possibly failure of the class or expulsion from the university. You should review what constitutes plagiarism: see http://online.sfsu.edu/~rone/StudentHelp/Plagiarism.html and http://www.indiana.edu/~wts/pamphlets/plagiarism.shtml.