IPE-Fall 2021 Course Syllabus

COURSE SYLLABUS
International Political Economy
2021-2022
Professor : IŞIK ÖZEL
Email : iozel@clio.uc3m.es
Office : 18.02.C.04
Office hours : Mondays 15:30-17:00 (online & by appointment)
Time & location of Lectures/ Magistrales
Group 45 Tuesdays 10:45-12:15 @ 9.1.17
Groups 18 & 58 Tuesdays 12:30-14:00 @ 10.2.11
Group 68 Tuesdays 16:15-17:45 @ 6.1.01

Course description

We will be carrying out this course all together in extraordinary times, which is a
challenge for both students and professors. Let’s try to collaborate and communicate
as fluidly as possible for a productive, pleasant and-most importantly- healthy semester!
Please wear your masks when you are in class, take all necessary precautions for not to
hazard your own and/or others’ health and obey the measures announced by the
university (https://www.uc3m.es/covid19/inicio) and health authorities.

This course aims to introduce students to major theoretical and empirical issues in the
field of international political economy (IPE). It focuses on several issue areas in IPE such
as international trade, international monetary system, economic development and
international production networks (multinational corporations). The course will be
constituted of three parts whose detailed contents are explained under the Course
Schedule below.

Part I briefly covers major theoretical perspectives in IPE and their application on
empirical issues. It provides a brief historical background on the emergence of
increasing integration and institutionalized interdependence across nations, surveying
the institutional set-up of international monetary relations. It, then, goes over the
politics of international trade, discussing the varying roles of the interest groups and
distributional issues, along with those of international and regional organizations,
shaping trade policies and politics around those. Discussing the nature of current trade
disputes/ “trade wars”, it surveys the multilateral trade regime supervised by the World

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Trade Organization (WTO). It goes through broad contestations of the current trade
regime in the context of prevalent geopolitical tensions.

Part II discusses the North-South divide, economic development and its challenges. It
surveys the major development strategies adopted by developing countries since the
1950s, with varying levels of success. It explores the phenomenon of emerging countries
in the international economy, with a particular focus on China. It studies different forms
of state-market relations and liberalization, reflecting on “the Washington Consensus,”
and “the Beijing Consensus.” Finally, it lays out the ongoing challenges faced and posed
by the major developing countries in the context of fierce competition in global markets.

Part III focuses on recent processes of economic integration, their diverse consequences
and contestations. It examines the globalized production networks, addressing the
expansion of multinational corporations along with controversies about them. Reflecting
on the ongoing challenges of globalization exemplified by the re-emergence of
populism, economic nationalism and “Trump-ism” (even after the end of Trump’s
presidency), it discusses the impact of these prevalent challenges on global integration.
Finally, it elaborates on the ongoing COVID-19 pandemic and its probable ramifications
for the future of the global economy.

Course Requirements
Students are expected to be active participants in this course. Therefore, it is essential
that you come to class prepared to discuss the readings for each meeting. Additional
(short) readings may be assigned over the course of the semester contingent upon the
proceeding of classes. It is highly recommended to keep up-to-date about ongoing
events and developments in global economy. Checking web-sources (some of which are
listed on the last page of this syllabus) along with the respective sections of major
journals and newspapers (international and national alike--such as the Financial Times,
the Economist, New York Times, etc.) will help you go over IPE-related news and
commentaries.

Grading
Continuous evaluation will make up 50 % of your final grade, while 50 % will be based
on the final exam. To pass the class, you will need to get a minimum grade of 5 (out of
10) in the final exam.

Make-up Policy and other regulations

 First and foremost, you have to wear your masks (with good quality please!) at
all times when you are in classrooms.
 There will be no make-up for the exams, unless the student provides a doctor’s
report with the contact information of the respective hospital/ health unit.
 It is strictly banned to use mobile phones during (presencial) class time.

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 Last, but not the least, plagiarism is ethically wrong and will not be tolerated in
any format.

Readings
A list of the required and recommended readings for this course is provided under the
Course Schedule below. The reading materials will be available at Aula Global website,
except for the textbook.
o Textbook
 Oatley, T. (2014) International Political Economy, Interests and Institutions in the
Global Economy, 5th edition, New York: Pearson Longman.

o Additional/ Recommended readings

 Balaam D. and Dillman, B. (2013) Introduction to International Political Economy,

6th edition. New Jersey: Pearson.
 Barton, J.H. et al. (2008) The Evolution of the Trade Regime: Politics, Law, and
Economics of the GATT and the WTO, Princeton, N.J.: Princeton University Press.
 Cohn, T.H. and Hira, A. (2021) Global Political Economy Theory and Practice,
Routledge, 8th edition.
 Krugman, P.R. and M. Obstfeld (2003) International Economics: Theory and
Policy, Boston: Pearson, 6th edition.
 Mansfield, E. D. and H. V. Milner (2012) Votes, Vetoes, and the Political Economy
of International Trade Agreements, Princeton, N.J.: Princeton University Press.
 Odell, J. (ed.) (2006) Negotiating Trade, Developing Countries and the Trade
Negotiation Process. Cambridge University Press.
 Ravenhill J. (ed.) (2016) Global Political Economy, Oxford: Oxford University Press.
 Roberts, J.T., A.B. Hite, and N. (2015) The Globalization and Development Reader,
Perspectives on Development and Global Change, Wiley Blackwell, 2nd edition.
 Rodrik, D. (2008) One Economics, Many Recipes: Globalization, Institutions, and
Economic Growth, Princeton, N.J.: Princeton University Press.
 Rodrik, D. (1997) Has Globalization Gone Too Far? Washington, D.C.: Institute of
International Economics.

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COURSE SCHEDULE
Part I: Theoretical perspectives, postwar cooperation
and the international trade regime

Week 1: September 7
Introduction to the Course
o Studying IPE at tumultuous times: COVID-19 and its impact
What is IPE? Why do we study it?
o Major issue areas, trends and controversies
o Leading theoretical approaches
Liberal International Order, its rise and contestations

Required readings
 Oatley, Chapter 1.

Recommended
 Frieden (2007) Global Capitalism, Chapters 1-4.

Week 2: September 14
Postwar international economy & institutionalized cooperation
o Political underpinnings of interdependence & its consequences
o Emergence of an international trade regime
Required readings
 United Nations Monetary and Financial Conference at Bretton Woods. Summary of
Agreements. July 22, 1944.
 Capling, A. and S. Tromme (2017) “The Evolution of the Global Trade Regime,” in
Ravenhill, J. (ed.) Global Political Economy.

Recommended
 Barton et al. (2008), Chapter 1.
 Frieden (2007) Global Capitalism, Chapters 8-9, 11-12.

Week 3: September 21
The evolution of the trade regime from the GATT to the WTO
o Design and the operation of the WTO
The politics of a quasi-judicial trade regime: “Legalization” and its diverse consequences
o Dispute settlement mechanisms: rules and practice
Required readings
 Oatley, Chapters 2-3.

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Recommended
 Barton et al. (2008) Chapters 2-3.
 Goldstein, J. and L. Martin (2000) “Legalization, Trade Liberalization, and Domestic
Politics.” International Organization 54 (3): 603-32.
 Odell, J. ed. (2006) Negotiating Trade, Developing Countries and the Trade
Negotiation Process. Cambridge: Cambridge University Press.

Week 4: September 28

Challenges, controversies and contestations about the international trade regime

o The Doha Round
o North-South conflict: Overt and disguised protectionism
COVID-19 in the midst of ‘trade wars’: The end of the multilateral trade regime?

Required readings
 Oxfam (2002) “Rigged Rules and Double Standards: Trade, Globalization, and the Fight
against Poverty.” Oxfam Trade Report.
 Davis, C. (2006) “Do WTO Rules Create a Level Playing Field for Developing Countries?
Lessons from Peru and Vietnam,” in Odell (ed.) Negotiating Trade, Cambridge U. Press.

Recommended
o Barton et al. (2008), Chapters 6-7.
o Oxfam (2003) “Running into the Sand: Why Failure at the Cancun Trade Talks
Threatens the World’s Poorest People.” Oxfam Briefing Paper 53.

Week 5: October 5
Political economy of trade: How are the trade policy preferences shaped?
o Society-centered approaches and their pitfalls
o State-centered approach and its pitfalls
Trade theories vs. actual preferences and policies

Required readings
 Oatley, Chapters 4-5.
Recommended
 Hiscox, M.J. (2004) “The Domestic Sources of Foreign Economic Policies” in Ravenhill
J. (ed) Global Political Economy, Oxford University Press, pp.50-84.
 Hainmueller, J. and M.J. Hiscox (2006) “Learning to Love Globalization: The Effects of
Education on Individual Attitudes towards International Trade,” International
Organization, 60 (2): 469-498.
 Krugman and Obstfeld (2003) International Economics, pp.186-217.

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Week 6: October 12—NO CLASS

Part II: The North-South divide and economic development

Week 7: October 19
Explaining the developmental gap: North-South and other divides
o Development strategies and their link to trade policies
 Import-substituting industrialization
Required readings
 Cohn and Hira (2020), Chapter 11 (“International Development”).
Recommended
 Balaam and Dillman (2013), Chapter 11.
 Özel, I. (2011) “Economic Development,” G.T. Kurian (ed.) The Encyclopedia of
Political Science, Washington D.C.: CQ Press, Vol. 2, pp. 416-420.

Week 8: October 26
Varying development strategies and respective outcomes
o Export-oriented industrialization
Market liberalization
o Politics and agents of “neoliberalism” and “post-neoliberalism”

Required readings
 Oatley, Chapters 6-7.
Recommended
 Williamson, J. (2004) “A Short History of the Washington Consensus”.
 Baab, S. (2012) “The Washington Consensus as Transnational Policy Paradigm:
Its Origins, Trajectory and Likely Successor,” the Globalization and Development Reader.
 Oatley, Chapters 14-15.

Week 9: November 2
China: Can a recent globalizer become a hegemon?
The appeal and challenges of the “Chinese model”
o “The Beijing Consensus,” the revival of “the state” and its challenges.

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Required readings
 Breslin, S. (2011) “The ‘China model’ and the global crisis: from Friedrich List to a
Chinese mode of governance?” International Affairs, 87(6): 1323-1343.

Recommended
 Ramo, J. C. (2004) “The Beijing Consensus,” London: Foreign Policy Centre.
 Layne, C. (2018), “The US-Chinese Power Shift and the End of the Pax Americana,”
International Affairs 94(1).
 Jiang, Y. (2011) “Rethinking the Beijing Consensus: How China Responds to Crises.”
The Pacific Review 24 (3): 337-356.
 Glaser, C. (2011) “Will China’s Rise Lead to War?” Foreign Affairs 90 (2): 80-91.
 Subramanian, A. (2011) “The Inevitable Superpower: Why China’s Dominance is a
Sure Thing,” Foreign Affairs.
 Chen Weiss, J. and Wallace, J.L. (2021) “Domestic Politics, China's Rise, and the
Future of the Liberal International Order”, International Organization 75,pp.635–64.

Week 10: November 9

Rise of the emerging markets and their global integration

o New claims to power and challenges to multilateral institutions
o Varieties of capacity and resilience
Required readings
 Kose, A. and F.Ohnsorge (2020), “Emerging and Developing Economies Ten Years After
the Global Recession,” World Bank Group, Policy Research Working Paper, No.9148
 Sharma, R. (2021) ‘The Resurgence of the Rest: Can emerging markets find new paths to
growth?, Foreign Affairs, May/ June 2021.
Recommended
 Zakaria, F.(2009) Post-American World and the Rise of the Rest, Penguin.
 McNally, C.A. (2012) “Sino-Capitalism: China’s Reemergence and the International
Political Economy” World Politics 64 (4): 741 -776.
 Balaam and Dillman (2013), Chapter 13.
 Berliner, J. (2010) ‘The Rise of the Rest: How new economic powers are reshaping
the globe’, NDN White Papers.
 Narlikar, A. and R. Kumar. 2012. “From Pax Americana to Pax Mosaica? Bargaining
over a New Economic Order,” Political Quarterly, 83 (2): 384-394.

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Part III: Intensifying global integration amidst its discontents

Week 11: November 16

Multinational corporations and foreign direct investment (FDI)
 Evolution, strategies and impact of FDI flows
Current dynamics and politics of FDI
 COVID-19 and its impact on investment flows
 Geostrategic nature of the FDI: ‘chip crisis’

Required readings
 Oatley, Chapters 8-9.
Recommended
 Hay, C. (2017) “Globalization and its Impact on States,” in Ravenhill (ed), Global
Political Economy.
 Tse, E. (2015) China's Disruptors: How Alibaba, Xiaomi, Tencent, and other
companies are changing the rules of business, Penguin Books.

Week 12: November 23

Ongoing debates, controversies and contestations in IPE
o Globalization: woes and differential impact on different groups
o Populism and economic nationalism and populism: Is Trump-ism all gone?
o Technological change, gig/precariat economy.
COVID-19 pandemic, its economic impact
Required readings
 Rodrik, D. (2018) “Populism and the economics of globalization”, Journal of International
Business Policy.
 Hall, P. and R. Taylor (2020) “Pandemic deepens social and political cleavages”, Social
Policy, June 2020.
 Broz, J.L., Frieden, F. and S. Weymouth (2021) “Populism in Place: The Economic
Geography of the Globalization Backlash,” International Organization 75, pp. 464–94.

Recommended
 Margalit, Y. (2012) “Lost in Globalization: International economic integration and
the sources of popular discontent” International Studies Quarterly, 56: 484-500.
 Gidron, N. and P.A. Hall (2020) Populism as a problem of social integration,”
Comparative Political Studies, 53(7): 1027–1059.
 Rodrik, D. (2010) The Globalization Paradox: Democracy and the Future of the World
Economy.
 Oatley, Chapter 16.
 OECD (2015) “In It Together: Why Less Inequality Benefits All,” PP. TBA.
 Milanovic, B. (2013) “Global Income Inequality in Numbers: in History and Now,”
Global Policy, 4(2), 198–208.

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 Flaherty, T.M. and R. Rogowski (2021) “Rising Inequality as a Threat to the Liberal
International Order,” International Organization 75, pp. 495-523.

Week 13: November 30

Post-pandemic global economy: supply chains, digitalization, deglobalization.
o Backlashes of globalization
Challenges and contestations to the liberal international order: End of an era?
Review of the course

Required readings
 Mansfield, E.D. and N. Rudra (2021) “Embedded Liberalism in the Digital Era,”
International Organization 75, pp. 558-85.
 Solís, M. (2020), “The post COVID-19 world: Economic nationalism triumphant?,”
Brookings Institute, 2020/07/10.

Recommended
 Gertz, G. (2020) “How to de-globalize?,” Foreign Policy, 24/7/2020.
 Seric, A. and D. Winkler (2020) “COVID-19 could spur automation and reverse
globalization,” UNIDO, April 2020.
 Lake, D.A., Martin, L.L., & T.Risse (2021) “Challenges to the Liberal Order: Reflections
on International Organization”, International Organization 75, pp. 225-257.
 Fontaine, R. (2020) “ Globalization Will Look Very Different After the Coronavirus
Pandemic”, Foreign Policy, 17/4/2020.
 “How the Economy will look after the Coronavirus Pandemic,” Foreign Policy,
15/4/2020.
 Ikenberry, G. J. (2018), “The End of Liberal International Order?” International
Affairs 94(1): 7-23.
 Stokes, D. (2018), “Trump, American Hegemony and the Future of the Liberal
International Order,” International Affairs 94 (1): 133-150.

Week 14: December 7-NO CLASS

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Links to Documents/ Data
International organizations:
www.un.org
www.undp.org
www.wto.org
www.imf.org
www.worldbank.org
www.worldbank.org/research/bios/pkeefer.htm
(on political institutions)
Debate on International Trade
Cato Institute
Consuming Industries Trade Action Coalition
World Economic Forum
Economic Policy Institute
Global Exchange
World Social Forum
utip.gov.utexas.edu/ (on inequality)
- Surveys:
PEW Global Attitudes Project
International Economics Study Center
Institute for International Economics
Economist Survey of Globalisation
Economist Survey of World Trade
US ITC Dataweb
Trade Agreements, Disputes & WTO
World Trade Organization
WTO: Settling Disputes
WTO: The Doha Agenda
Harvard’s Global Trade Negotiations
Regionalization
European Union
Asian Pacific Economic Cooperation
WTO: Regional Agreements
ASEAN: http://asean.org/
MERCOSUR: http://www.mercosur.int/
Course Syllabus
Multinational Corporations
UNCTAD World Investment Directory
OECD Foreign Direct Investment
Statistics
US Direct Investment Abroad
Foreign Direct Investment in the US
ILO: Corporate Codes of Conduct
Amnesty: Responsibilities for
Corporations
Corporate Register
Trade and Labor Standards
OXFAM
https://www.oxfamintermon.org/
Business and Human Rights Resource
Centre
Fair Trade Labelling Organizations
International
Ethical Trade Initiative
Clean Clothes Campaign
Social Accountability International
ILO: International Labour Standards
ILO: Data on National Labour Laws by
Country
WTO Labour Standards
Worker Rights Consortium
Trade and the Environment
UN Environmental Program
Environmental Treaties
WTO: Trade and Environment
WTO: Environmental Disputes
Global Reporting Initiative
Development
WTO Trade and Development
WTO Doha Agenda
STWR: Share the World’s Resources
UNCTAD Trade and Development
World Bank Development Reports
Harvard's Center for International
Development
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