International Political Economy
List the different periods of globalization
First globalization 1870-1913 Deglobalization 1929-1945 Reglobalization 1945-1993 Hyperglobalization 1993-2010 ---> Hyperglobalization might be a way to distringuish it from the first globalization
What have we learned in the course?
It is often thought of as a subfield of IR In this course we have defined it broadly, not simply to incorporate work derived from International Relations scholarship of the past four decades (IPE is often thought of as a subfield of IR), but also to consider the deeper intellectual legacy of political economists stretching back to the eighteenth century. We have thought in broad terms about how to approach the field of IPE ('upper case IPE') and consider various 'optics' through which the subject matter ('lower case ipe') can be viewed and from which quite distinctive sub-types of IPE can emerge. The history of global political orders The course is designed to give a historical, theoretical and thematic backdrop to aid understanding of current affairs. We examine ideas from both economic theory and political science/international relations and note that such ideas (e.g. liberalism, economic nationalism) are themselves forces at work within the global political economy as well as tools for understanding and explanation.
Why does the debate about different 'schools' of IPE matter?
It matters because what we see depend on which theoretical approaches/lenses we use American, British and other forms of IPE
Explain the consumption changed through society
Huge rise in purchasing power since 1950s in the West Household disposable income rises... - Increase in two-earner households (demographic change) - Increase in wages faster than inflation - Shift to more-skilled labour in developed economies
Main argument in Natascha van der Zwan 'Making sense of financialization'
Since the early 2000s, scholars from a variety of disciplines have used the concept of financialization to describe a host of structural changes in the advanced political economies. Studies of financialization interrogate how an increasingly autonomous realm of global finance has altered the underlying logics of the industrial economy and the inner workings of democratic society Three approaches will be discussed: the emergence of a new regime of accumulation, the ascendency of the shareholder value orientation and the financialization of everyday life. It is argued that a deeper understanding of financialization will lead to a better understanding of organized interests, the politics of the welfare state, and processes of institutional change.
How does the evolution of IPE as a discipline relate to empirical change in the world economy?
Slet
Explain the security structure
So long as the possibility of ciolent conflict threatens personal security, he who offers others protection against that threat is able to exercise power in other non-security matters like the distribution of food or the administration of justice. The greater the perceived threat to security, the higher price will be willingly paid and the greater risk accepted that the same defence force that gives protection will itself offer another kind of threat to those it claims to protect.
Susan Strange
States and Marktets
Matthew Watson
The Market
Which two main categories does Cox split theory into?
Problem-solving and critical.
Explain Cox's definition of problem-solving theory as a category
Puzzle solving within the terms set by a particular perspective; non-historical or a-historical; 'assumption of fixity'; conservative The aim is to puzzle solve within the the parametre set by the theoretical perspective
Why did the Bretton Woods system collapse? Did it collapse completely?
Today: - Some currencies like the Chinese is stil locked to the USD, but we are back at every-country-on-themselves. - The market will find equlibrium - Chang: too much focus on inflation rates
Session 9
Trade Wars
Development Goals - why poverty reduction?
Western-centric
Globalisation - why liberalisation?
Western-centric
What is Steffen et al's arguement?
we need to be awar that it is not linear and if we don't pay special attention to the risk of the econolical ripping point it might be too late Addressing these questions requires a deep integration of knowledge from biogeophysical Earth System science with that from the social sciences and humanities on the development and functioning of human societies:
What is the main point from Cynthia Enloe Bananas, Beaches and Bases: Making Feminist Sense of International Politics
'it is always worth asking: "where are the women?" Answering this question reveals the dependence of most political and economic systems not just on women, but on certain kinds of relations between women and men'
Is there a general lesson learned from the rise of China?
' ... power transitions are not just about the choices, actions and preferences of those that are rising; what happens in and to the existing (or declining) predominant powers is important too' (Breslin 2018: 70)
How does Krippner define financialization?
'I define financialization as a pattern of accumulation in which profits accrue primarily through financial channels rather than through trade and commodity production.' => A particular regime of (capital) accumulation
Name Abdelal et al - four paths of constructivism
1) Meaning 2) Cognition 3) Uncertainty 4) Subjectivity A way of identifying the different kinds of constructivism emergine in the litteratur They all occupy different methodilogical and epestimological traditions - emerges out of different fields
Name the three variations of realist IPE
1) Neorealism 2) Hegemonic stability theory 3) Gilpin's approach
Watson: Why should students care about Adam Smith?
1) Now you have been told who he was - can you really find this Smith in his own works? - you can't. Textbooks present him differently. 2) Look for the way Smith produced a record of his own time. He was acting with changes happening in his time. Opposite to economists today trying to distance themselves form it 3) Writing on how the relationship between social structures of accumultation national and international - so IPE. So he was actually a chronicallar of his days and the political economy at the time. This is not included in the text books.
What is consumption?
1) Purchasing decisions made by consumers for goods and services 2) Important dimension of aggregate demand Aggregated command is what runs the economy
How has consumption changed?
1) Society 2) Technology
Name the three main impulses of IPE and the environment
1) The environment is an IPE issue 2) The environment offers an important alternative IPE 'optic' 3) The environment in crisis undermines and transcends extant intellectual fields like IPE So: 1) We need to have climate change on the course and analyse it seriously 2) No we need to change the core course - put climate at the center of the course and arrange everything around it 3) We need to rip up social sciences and rethink the way we produce knowledge The three impulses get more and more radical
When was teh Bretton Woods system?
1944-1971 End period is discussed. Either 1971 (Nixon-shock). Others point to the oil crisis Named by the place of its origin
Ha-Joon Chang
23 Things they don't tell you about capitalism
List the development of the liberal international economic order
The C19 liberal international economic order Power politics: Hegemonic stability theory = Britain as hegemon Dominant ideas: Polanyi on the self-regulating market = Economic liberalism Domestic politics: The "double movement" = Compliance Institutions: The Gold Standard Stable monetary order --- 1914-1944? Breakdown of liberal international economic order Power politics: Hegemonic stability theory = No hegemon Dominant ideas: Polanyi on the self-regulating market = Economic nationalism Domestic politics: The "double movement" = Deep and varied protective counter-movements Institutions: The Gold Standard = Institutional vacuum/failure of policy imagination --- Bretton Woods (1944-1971)? A new (embedded) liberal international economic order Power politics: Hegemonic stability theory = US as a hegemon Dominant ideas: Polanyi on the self-regulating market = "Embedded liberalism" Domestic politics: The "double movement" = Policy autonomy/compliance/democratic capitalism Institutions: Fixed exchange rate = Rule-bound solution to 'impossible trinity' --- Late C20/early C21 globalization. Globalised liberal international economic order Power politics: Hegemonic stability theory US as a hegemon Dominant ideas: Polanyi on the self-regulating market Neoliberalism Domestic politics: The "double movement" Internationalised state functions, domestic depol-iticisation Institutions: Global economic governance IMF, World Bank, WTO
Explain Polanyi's the 'self-regulating' market
The Great Transformation examines the social and political changes that took place in England during the rise of the market economy. ... Karl Polanyi narrates the historical development of the market society in The Great Transformation. An economic market system capable of directing the whole of economic life, without outside help or interference, is called self-regulating. ... Self-regulating markets require competitive markets for labor, land and money. THE STATE (!) devises laws and regulations for their development and maintenance. - Argues that the nature of the liberal system is actually what constitutes its own downfall and instability - There is something inherently unfair in the system - The subordination of all other social factors to the one of the market. The market becomes the centre of which you develop the society - the benchmarkt for which you meassure the value of human affairs. --->What happens when the self- regulating market takes over (in the end of the nineteenth century) Or the 'disembedding' of the market from society ... ---> ... where 'embeddedness' describes the extent to which economic activity is constrained by non-economic institutions.
Explain 10) The US does not have the highest living standard in the world - what they don't tell you
The average US citizen does have greater command over goods and services than his counterpart in any other country. However, given the country's high inequality, this average is less accurate in representing how people live than the averages forother coutnries with a more equal income distribution. Higher inequality is also behind the poorer health indicators and worse crime statistics of the US. Moreover, the same dollar buyes more things in the US than in most other rich countries mainly because it has cheaper services than in orther comparable countries, thanks to higher immigration and poorer employment conditions. Furthermore, Americans workd considerable longer than Europeans. Per hour worked, their command over goods and services is smaller than that of several Euroepan countries.
How do Marxists deal with the concept of 'globalization'? How would a Marxist account differ from standard IPE narratives of globalization?
The bourgeoisie cannot exist without constantly revolutionising the instruments of production, and thereby the relations of production, and with them the whole relations of society. The need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe. It must nestle everywhere, settle everywhere, establish connections everywhere. The bourgeoisie has through its exploitation of the world market given a cosmopolitan character to production and consumption in every country.
Explain 9) We do not live in a post-industrial age - what they don't tell you
The fall in the share of manufacturing in tolat output in the rich countries is NOT largely due to the fall in (relative) demand for manufactured goods, as many people think. Nor is it due mainly to the rise of manufactured exports from China and other developing ocuntries, although that has had big impacts on some sectors. It is instead the falling relative prices of the manufactured goods due to faster growth in productivity in the manufacturing sector that is the main driver of the de-industrialization process. Thus while the citizens of the rich countries may be libing in post-industrial societies in terms of ther employment, the importance of manufacturing in terms of production in those economies has not been diminished to the extent that we can declasre a post-industrial age. developing countries' limited scope for productivity growth makes services a poor engine of growth. The low tradability of services means that a more service based economy will have a lower ability to export. Lower ecport earnings means a weaker ability to buy advanced technologies from abroad, which in turn leads to a slower growth.
Explain the story of the first American multinational corporation I.M. Singer and Company
The first American multinational corporation was I. M. Singer and Company (later changed to Singer Manufacturing Company), whose name became synonymous with the sewing machine. Established in 1851, Singer relied at first on independent foreign agents to sell its machines in Europe, even transferring to a French entrepreneur, Charles Callebaut, the rights to its French patent. Having successfully developed its own sales force and branches in the United States, however, and unhappy with the lack of control over these agents, some of whom even sold competing machines, the company decided to rely on its own salaried sales force and branch offices to market its product. By 1879 Singer was selling more machines abroad than at home and had branches in such distant places as India, Australia, South Africa, and New Zealand. In response to Europe's demand for its machines, moreover, it opened its first foreign factory in Glasgow, Scotland, in 1867. In 1883 it built a new modern plant outside Glasgow, where it consolidated the operations of the original factory and two others that had grown alongside it. It also built much smaller plants in Canada and Austria. By the end of the century other American corporations, including Westinghouse, General Electric, Western Electric, Eastman Kodak, and Standard Oil, often following Singer's experience abroad, had also opened plants or refineries in Europe.
Explain 1) There is no such thing as a free market - what they don't tell you
The free market doesn't exist. Every market has some rules and boundaries that restrict freedom of choice. A market looks free only because we so unconditionally accept its underlying restrictions that we fail to see them. How "free" a market is cannot be objectively defined. It is a political definition. There are restrictions on: What can be trades Wo can participate in markets Conditions of trade Price regulations There are a huge range of restrictions on what can be traded - eg bans on narcotic drugs, human organs, electoral votes, government jobs and legal decisions. There are also restrictions on who can participate in markets. Child labor regulation now bans the entry of children into the labour market. Licences are required for professions etc. Conditions of trade are specified too. Eg one can demand a full refund for a product one don't like, even if it isn't faulty Price regulations. - rent controls, minimum wages etc So, when free-market economists say that a certain regulation should not be introduced because it would restrict the "freedom" of a certain market, they are merely expressing a political opinion that they reject the rights that are to be defended by the proposed law. Their ideological cloak is to pretend that their politics is not really political, but rather is an objective economic truth, while other people's politics IS political. However, they are as politically motivated as their opponents.
Session 2b
The inter-war crisis of the world economy
Explain Watson's Market Concept Mk2: The market as an analytical concept
The introduction of the classic demand-and-supply diagram that continues to underpin how the foundations of economic theory are taught today. Abstract reflection rather than observable real-life practices. Does not recognize the fact that market institutions always reflect the prevailing political balance of power. - the equations themselves require that all economic agents are well behaved and act solely on the basis of the cues that they take from price signals. They cannot be motivated by power or greed or even the wish to retire one day significantly wealthier than the life they wer born into.
What does Strange say about the relationship between IPE and structural power?
The judgement of outcomes, as of goals, is a subjective matter. Theories of internatioanl political eocnomy are rooted in personal preferences, prejudices and experice. -> all projected form the power structures within which the theories are made
Explain 19) Despite the fall of communism, we are still living in planned economies - what they tell you
The limits of economic planning have been resoundingly demonstrated by the fall of communism. In complex modern economies, planning is neither possible nor desirable. Only decentralized decisions through the market mechanism, based on individuals and firms being always on the lookout for a profitable opportunity, are capable of sustaining a complex modern evonomy. We should do away with the delusion that we can plan anything in this complex and ever-changing world. The less planning there is, the better.
Explain the role of history in IPE
The many uses of historical analysis Why this history? Why this periodization? Absences, silences? Is the history of IPE cyclical? ... or about lesson-drawing? Or both? The story of the rise and fall and rise and ? of open/liberal/global international economic orders (next slide) Are these the right questions to be asking (cf the very different frames of references of feminist and (some) critical IPE or if we take, say, ecology or development as our point of departure)? Even if we accept that the Euro-Atlantic area is the historic heartland of ipe, what factors made this so?
How does the rise of China challenge the liberal internaitonal economic order, according to Breslin?
The nature of China's economic rise has provided an important challenge to the dominancen of neoliberal ideas and practices. By becoming an important economic partner for other developing economis, China creates a space for elites in the developing world to make choices, diminishing their dependence on traditional economic partners, and thus undermining the ability of more established global actors to impose their liberal ideational and policy preferences. The result might not be a Chinese-led world order, but one in which there are significant, specific and deliberate Chinese challenges to the status quo in some policy domains, and significant consequences of China's rise that might undermine the force of liberal argumetns and preferences in other issue areas.
Explain 7) Free-market policies rarely make poor countries rich - what they tell don't you
The performance of developing coutnries in the period of state-led development was superior to what they have achieved during the subsequent period of market-oriented reform. Moreover, it is also NOT true that almost all rich countries have become rich through free-market policies. With only a few exceptions, all of today's rich countries including Britain and the US - the supposed homes of free trade and free market - have become rich through the combinations of protectionism, subsidies and other policies that today they advise the developing countries not to adopt. Since the 1980s, in addition to rising inequality, most developing countries have experienced a significant deceleration in economic growth. During the 200s, there was a pick-up in the growth of the developing world, but this was largely due to the rapid growth of China and India - two giants that, while liberalixing, did NOT embrace neo-liberal policies.
Explain the finance structure
The power to create credit implies the power to allow or to deny other people the possibility of spending today and paying back tomorrow, the power to let them exercise purchasing power an thus influence markets for production, and also the power to manage or mismanage the currency in which credit is denominated, thus affecting rates of exchange with credit denominated in other currencies. Thus, the financial structure really has two inseparable aspects. 1) It comprises not just the structures of the political economy through which credit is created but also 2) the monetary system or systems which determine the relative values of the different moneys in which credit is denominated. A financial structure, therefore, can be defined as the sum of all the arrangements governning the availability of credit plus all the factors determining the terms on which currencies are exchanged for one another. What is invested in an advanced economy is not money but credit, and that credit can be created. It does not have to be accumulated. Therefore, whoever can so gain the confidence of others in their ability to create credit will control a capitalist economy. There would have been non of the economic growth the world has seen in the past four or five decades if we had had to wait for profits to be accumulated. They could ONLY have been financed through the creation of credit.
Explain 22) Financial markets need to become less, not more, efficient - what they don't tell you
The problem with financial markets today is that they are too efficient. As seen in the 2009 global crisis, these new financial assets have made the overall economy, as well as the financial system itself, much more unstable. Liquitity: Suppose that you want to sell half of your factory but that no one will buy half a building and half a production line. - here it is good that you can issue shares and sell half your shares. In other words, the financial sector helps companies to expand and diversify through its ability to turn illiquid assets such as buildings and machines into liquid assets such as loans and shares. However, in the short run, this also creates economic instability, as liquid capital sloshed around the world at very short notice and in "irrational" ways, as we have seen. More importantly, in the long run, it leads to weak productivity growth, because long-term incestments are cut down to satisfy impatient capital. The result has been that, despite enormous progress in "financial deepening", growth has actually slowed down in recent years. A financial system perfectly synchronized with the real economy would be useless. The whole point of finance is that it can move faster than the real economy. Hwoever, if the financial sector moves too fast, it can derail the real economy.
Watson: Has the developments within the field of economics constrained how other fields look at the field of economics?
The profesionalism of economics and moves to more abstract forms of looking at economy. Has rather been an oppurtunity for other fields -> now they have room to study the actual economic and not abstract logics. It is talking and thinking of the everyday itsef. As if they gifted us a terrain fo doing our own thinking What hasn't changed is that in publiv life it is still belived that who can talk about the economy are economists - Often also in public life people from businesses and not academics. And pwople from business often talked about "the Market". - As a substitute of a person - We can't blame the academics for that^ - Primarily a political thing to treat it as "the Market"
Main argument in Jem Bendell, 'Deep Adaptation: a map for navigating the climate tragedy'
The purpose of this conceptual paper is to provide readers with an opportunity to reassess their work and life in the face of an inevitable nearterm social collapse due to climate change. The approach of the paper is to analyse recent studies on climate change and its implications for our ecosystems, economies and societies, as provided by academic journals and publications direct from research institutes. That synthesis leads to a conclusion there will be a near-term collapse in society with serious ramifications for the lives of readers. The paper reviews some of the reasons why collapse-denial may exist, in particular, in the professions of sustainability research and practice, therefore leading to these arguments having been absent from these fields until now. The paper offers a new meta-framing of the implications for research, organisational practice, personal development and public policy, called the Deep Adaptation Agenda. Its key aspects of resilience, relinquishment and restorations are explained. This agenda does not seek to build on existing scholarship on "climate adaptation" as it is premised on the view that social collapse is now inevitable. The author believes this is one of the first papers in the sustainability management field to conclude that climate-induced societal collapse is now inevitable in the near term and therefore to invite scholars to explore the implications.
Explain 22) Financial markets need to become less, not more, efficient - what they tell you
The rapid development of the financial markets has enabled ud to allocate and reallocate resources swiftly. This is why the US, the UK, Ireland and some other cpaitalist economies that have liberalized and opened up their financial markets have done so well in the last three decades. Liberal financial markets give an economy the ability to respond quickly to changing opportunities, thereby allowing it to grow faster. True, som of the excesses of the recent period have given finance a bad name, not least in the above-mentioned countries. However we should not rush into restraining financial markets simply because of this once-in-a-century financial cirsis that no one could have predicted, however big it may be, as the efficiency of its financial market is the key to a nationa's prosperity
Explain 8) Capital has a nationality - what they tell you
The real hero og globalization has been the ttransnational corporation. In this age of such nation-less capital, nationalistic policies towards foreign cpaital are at best ineffective and at worst counterproductive. If a country's government discriminated against them, transnational corporations will not invest in that country. The intention may be to help the nationale conomy by promoting national firms, but such policies actually harm it by preventing the most efficient firms from establishing themselves in the coutnry.
Explain 4) The washing machine has changed the world more than the internet has - what they tell you
The recent revolution in communications technologies, represented by the internet, has fundamentally changed the way in which the world works. It has led to the "death of distance": In the "borderless world" thus created, old onventions about national economic interests and the role of national governments are invalid. This technological revolution defines the age we live in. Unless countries (or companies or, for that matter, individuals) change at corresponding speed, they will be wiped out. We - as individuals, firms or nationa - will have to becoe ever more flexible, which requires greater liberalization of markets.
Explain the connection between consumption and financialization
The rise of consumption emeerged by creating depth -> made possible by credit Consumption is good for an economy - but not if fueled by dept Governments going into dept was a bad thing where people going into dept was a matter of stimulating consumption - individuals exposed much more for finanzialization You end up with a situation where assest-based wellfare
Explain the connection between everyday life and financialization
The rise of debt-fuelled consumption and the emergence of cheap credit The privatisation of debt - Note Clarke's I-PEEL case study: expansion of private borrowing at the same time as articulation of the case against government borrowing. Heightened exposure of individuals to financial risk - connection of individual and household lives to the international financial system - Expectation that individuals become entrepreneurial 'investor subjects' 'By actively managing risk, the investing individual can adequately prepare for a future that is never secure and always rife with uncertainty. As a result, life itself becomes an asset to be managed' (van der Zwan 2014: 112-113, emphasis added) Access to credit becomes - (a) a means to support living standards, displacing e.g. collective bargaining, incomes policies., welfare transfers (state-backed guarantees) - (b) associated with the rise of 'asset-based' welfare (e.g. accumulation of asset wealth in the property market instead of e.g. in public or employee pension funds) The growing importance of the 'credit relation', replacing the 'wage relation' (Krippner)
Main argument from Mark Blyth "Torn Between Two Lovers? Caught in the Middle of British and American IPE,"
The transatlantic divide '... back in 2006 I asked four Americans and four British scholars (out of 16 global contributions) to write about what IPE looks like from their place in the world, based upon the not unreasonable assumption that where one sits in the world may shape how one thinks about it. When I asked the Americans to do this ... three of them responded with pieces that detailed a particular perspective that had its roots in US IR theory (realism, rationalism and constructivism) while the other one did an overview of the field that took all three positions into account. In contrast, when I asked the British scholars to do the same ... I received a genealogy of the field, a critique of the notion of empiricism, a discussion of power-knowledge and a theory of globalisation ... None of the British contributions had anything to do with "IR theory", while none of the US contributions thought of IPE in terms other than it.' At the same time, note the problems of overemphasising (reifying) the transatlantic divide (cf Blyth 2009) Implies that the institutional context in which knowledge (about IPE) is produced matters for the type of knowledge (about IPE) that is produced
Explain Polanyi and hist "double movement"
The two logics: a) The rise of the 'self-regulating market'', leads to b) Counter movement to protect society against the market - Polanyi is not only logic of market against logic of democracy, but rather logic of social protection of which democracy is one kind - Social movement: want to embed markets into social goals. Making the market work on behalf of social puposes. - Two different reactions to the social disintegration resulting from the liberal market and especially the gold standard: social democracy and fascism. ---> Fascism: protect society by sacrifizing human freedom ---> Polanyi goes into explaining how the gold standard system enabled fascism.
How can we think about thoeries in IPE?
Theory = Stylised depictions of reality The building blocks of analysis. - Explanation and Understanding Ways of "reading" ipe - Making the complex legible Variables/factors in the world of ipe that we study - Ideas matter; theory effects; institutionalization Economic nationalism is a theory as well. With consequences that shape the domestic and civil sphere as we
What are the basic claims of Marxism in relation to political economy? How do Marxists understand the interplay of economics and politics?
Theory of social reality => Historical specificity of social relations Marx's Critique of liberal political economy → rejection of the idea that capitalism = default human condition => Suspicion of timeless laws of human nature as basis for political economy => Rational utility maximising individual of liberal economics is a historically specific ideological projection Theory of history History described via a sequence of modes of production o Own internal laws o Own forces of production o Own relations of production o Own forms of domination o Shifts within modes of production? History as the particular modes of production - where capitalism is the latest Centrality of class relations and class struggle A theory of the state? ...
Watson: Why are politicians talking themselves down?
There are two stand-out reasons for that: 1) the ideology of neoliberalism, 2) De politicization One is a matter of ideology, the other og governing practice. Ideology: Postwar period - the so-called era of Keynesianism, in which governments would routinely overrule pure pricing signals to ensure that there was sufficient demand in the economy to lead to the full utilization of all available resources. For the last forty years, the accepted political wisdom has been different. This is the so-called era of neoliberalism, in which pure pricing signals are believed ot be much bettern than government intervention at steering the economyy towards the desired destination. Governing practice: Politicians have developed an array of tactics through which they can externalize responsibility for policy decisions. If politicians can successfully sustain the image that, even as elected official, they were not directly responsible for introducing a particular measure, then they hope that they can avoid blame if the repercussions of that measure impact engatively on society as a whole = depoliticization
Was Strange good at theorizing?
There have been a lot of critique about her capacity as a theorist She doesn't look at epistemology - so it is not necesary a theory She is more ontologist revlotion - change what the field should be about - so a focus on how things are She is more interested in finding different ways of understanding it "as it is" - so no clear methology. Perhaps if she was alive today she would belong more to the critical theorists She was interested in telling stories and what was going on - and not interested in talking theory as anything else than a way to deliver what was going on
To what extent is globalization driven by technology?
There is always a gap between the level of technology and the lecel of globalization exploiting that technology -> different governmental decisions etc. Intermediate the degree to which technology is used.
What were the key elements of the Bretton Woods system?
There were fixed exchange rates to stimulate international trade - and then also created internaitonal systems to monitor it - IMF and World Bank to monitor and overview it Two important feature of the gold standard: 1) the "value" of currencies was fixed.. it did not change, and 2) nations agreed to limit the amount of currency they would issue to the amount of gold they held in reserve to back up that currency. The implication of this is that a nation could not "print money... that is, they could not spend above their reserve levels. In addition, it meant that the exchange rates could not adjust to differences in trade levels - because each rate was based on a county's unchanging "par" value'. IMF is created to assist countries with short term lequidity problems - a way of injecting cash in the international system in ways that follow the international principles. - a clear idea about it is not enough to have a fixed exchange rate, but also about creating a global network Political key elements: the establishment of USA as a clear hegemon - Every currency was anchord to the US Dollar which was anchord to gold - thus effectively making the US the hegemon. Social key elements: the idea of having a capitalism with a human focus on avoiding unemployment etc. Economic side: the flow of capital across boarders shoud be something that states should be able to control. 'controls on trade and finance flows allowed governments to pursue domestic policy goals, most notably full employment, without seriously violating international rules. They could tailor their fiscal and monetary policies to domestic needs, take welfare-state initiatives and still meet the objectives and obligations embodied in the post-war institutions, including the commitment to liberalize their trade and payments' Peter B. Kenen and Barry Eichengreen in P.B. Kenen (ed)
Main argument in Schwartz and Seabrooke?
This special issue argues that residential housing and housing finance systems have important causal consequences for political behavior, social stability, the structure of welfare states, and macro-economic outcomes. The articles examine specific instances across a range of countries. This introduction has broader aims. First, it shows that housing finance systems are not politically neutral. We argue that the kind of housing people occupy and the property rights surrounding housing can constitute political subjectivities and objective preferences not only about the level of public spending, but also the level and nature of inflation and taxation. Second, like the varieties of capitalism literature, we show that housing finance systems also have important complementarities with the larger economy. But we diverge from the varieties literature, suggesting that 'varieties of residential capitalism' are not explained by domestic institutional complementarities alone. Rather, what we refer to as financially repressed and financially liberal systems are globally interdependent. While welfare and taxation systems show high degrees of path dependence, transnational trends in the deregulation of housing finance have altered incentives and preferences for financial institutions, home owners, and would-be home owners. Finally, the introduction offers some speculation about how pocketbooks will drive politics as the global housing busts tightens mortgage belts around the waists of average Organization for Economic Cooperation and Development home owners.
Explain Cox' relational triangle model of change and continuity in IPE
Two triangles (the first one most popular) A) Types of force that interact within historical structures: Within any given historical structure we need to understand the interaction between three types of force: 1) Material capabilities: What is possible to do given your existing matieral circumstances. 2) Ideas: Ideas we hold in common. Intersubjective meanings. Collective images (ideologies) 3) Institutions: The means by which particular orders are stabilised and perpetrated B) Spheres of activity: The specific types of forces leads to certain spheres of activity 1) Forms of state: the relation between those who govern and those who are being governed. Specfic in the time and place 2) Social forces: the produciton relations create social life -> how you understand the production and power relations in society 3) World orders: Configurations of forces defining possibilities of war/peace.
Why have we read Ha-Joon Chang in this course?
Two types of people tends to take this course: Students who have and haven't studies economics before - This book is good for both groups Paradox: in some ways it goes way beyond the point that economics texxts take you. In part because the purpose of the book is to demystify somes of the things that are widely held to be selfevedintly true The book supplements very well the things we have talked about throughout the course It questions the optic through which we understand the lower case ipe Mainstream economics shouldn't have the monopoly to talk about the economic system Chang was schooled in neo-liberal economics. In a sense he knows the field - but through his work he has also seen its limitations - His role: to demystify economics but also to challenge it
Explain 14) US managers are over-priced - what they don't tell you
US managers are over-priced in more than one sense: First, they are over-priced compared to their predecessors. Second, US managers are also over-priced compared to their counterparts in other rich countries. American managers are not only over-priced but also overly protected in the sense that they do not get punished for poor performance, but awarded for good. All this is not purely dictated by market forces. The managerial class in the US has gained such economic, political and ideological power that it has been able to manipulate the forced that determine tis pay. Finally, when things go wrong on a large scale, as in the 2008 financial crisis, taxpayers are forced to bail out the failed companies, while the managers who created the failure get off almost scot-free.
Main argument from Susan Strange, 'International Economics and International Politics: A Case of Mutual Neglect'
Unequal pace of change in the international political system and in the international economic system, Instead of developing as a modern study of international political economy, the gulf between international economics and international politics to grow wider and deeper and more unbridgeable than ever.
Explain 6) Greater macroeconomic stability has NOT made the world economy more stable - what they tell you
Until the 1970s, inflation was the economy's public enemy number one. Many countries suffered from disastrous hyperinflation experiences. Even when it did not reach a hyperinflationary agnitude, the economic instability that comes from high and fluctuating inflation discouraged investment and thus qrowth. Fortunately, the dragon of inflation has been slain since the 1990s, thanks to much tougher attitudes towards government budget deficits and the increasing introduction of polocally independent central banks that are free to focus single-mindedly on inflation control. Given that economic stbaility is necessary for long-term investment and thus growth, the aming og the beast called inflation has laid the basis for grater long-term prosperity.
Explain Watson's Market Concept Mk 1: the market as a descriptive concept
Used words alone and lacked an obvious accompanying mathematical structure. Smith's market concept. This is the market literally as a marketplace, with people going about their business and trying to secure a livelihood. Smith had a notion of equality that involved the right to be secured from harm. This was a radical concepttions for his day, especially if we consider the terms on which the fledging factory labour force was being contracted at the time Distinction between natural prices and market prices: By natural price he meant the price at which both parties would be happy to enter the exchange as either buyer or seller. It is, instead, a symmetry of treatment, where everyone acts in relation to people on the other side of the market how they hope other people would act towards them were the roles to be reversed. In other words, it represents a situation in which all harms have been removed from the act of exchange. Everyone is consequently able to realize neither no more nor no less than what they believe they are selling is worht,. Smith never thought that the true natural price would actually prevail in real life. Unlike when using the market concept of the neoclassical economists, that believe the natural price will prevail. Smith worried that market prices might always be at a level higher than the natural price when products are on sale and at a level lower thna the natural price when labour is on sale = recognizes the fact that market institutions always reflect the prevailing political balance of power.
Consider how 'everyday IPE' has big impacts on economic policy-making
We are all 'consumers' in the housing market, either directly engaged in it, enslaved by it or denied access to it. The point is that we as individuals also are 'consumer' in and interacting with the global economy - here in housing ownership/housing finance - but also as creditcar users, supermarket consumers. The 'everyday IPE' covers both finance, trade, production and climate, and the seminar opens up for a much broader discussion of consumption in IPE.
Explain Moms for houses
We are now in a different capital moment. We no longer have capitalist making money by making peopl work. We have capitalists who make money by investing in houses and finance and thus making money by not making people work. - Marx: the worst thing in capitalism is not to be at work. The occupation of empty appartments in Oakland - outside of Berkeley Investin of the people with capital are currently in housing Eventhough we have empty houses and people are willing to by them, capitalism can't work it out Suddenly even though you go to work, the conditions around social reproduction are so stressed right now. They highlight the gendered and racial problem with this. Today racism, sexism and capitalism work together to make it impossible to live. - Relations of who is expected to do the work of social reproduction as well as who earns wages or not. There is a group who can't be offered work or work to a price that makes it possible to enter the housing market
Main argument in Will Steffen, Johan Rockström, Katherine Richardson, Timothy M. Lenton, et al, 'Trajectories of the Earth System in the Anthropocene'
We explore the risk that self-reinforcing feedbacks could push the Earth System toward a planetary threshold that, if crossed, could prevent stabilization of the climate at intermediate temperature rises and cause continued warming on a "Hothouse Earth" pathway even as human emissions are reduced. Crossing the threshold would lead to a much higher global average temperature than any interglacial in the past 1.2 million years and to sea levels significantly higher than at any time in the Holocene. We examine the evidence that such a threshold might exist and where it might be. If the threshold is crossed, the resulting trajectory would likely cause serious disruptions to ecosystems, society, and economies. Collective human action is required to steer the Earth System away from a potential threshold and stabilize it in a habitable interglacial-like state. Such action entails stewardship of the entire Earth System—biosphere, climate, and societies—and could include decarbonization of the global economy, enhancement of biosphere carbon sinks, behavioral changes, technological innovations, new governance arrangements, and transformed social values.
What did Marx say about "economic men" and their accumulated behaviour?
We have gotten into a contemporary political economy (thinking of among other David Riccardo) They are missing that the individual they are studying are a product of the society within which they express What they were writing about was a type of economic behaviour that was coherent to the market capitalism -> Marx: other type of market relocation would have made people act otherways. There are other ways to organize human life. Sissel: The lesson we learn from that: - We need to be aware if we are misusing concepts of the past in order to justify something in the present -> we need to be aware of the context of concepts - Eg Smith and the 'invisible hand' - has become the foundation of a whole school of thought, but wasn't something that he himself dwell as much on.
Explain 13) Making rich people richer doesn't make the rest of us richer - what they tell you
We have to create wealth before we can share it out. Like it or not, it is the rich people who are going to invest and create jobs. The rich are vital to both spotting market opportunities and exploiting them. In many countries, the politics of envy and populist policies of the past have put restrictions on wealth creation by imposing high taxes on the rich. This has to stop. It may sound harsh, but in the long run poor people can become richer only by making the rich even richer. When you give the rich a bigger slice of the pie, the slices of the others may become smaller in the short run, but the poor will enjoy bigger slices in absolute terms in the long run, because the pie will get bigger
Explain 16) We are not smart enough to leave things to the market - what they tell you
We should leave markets alone, because, essentially, market participants know what they are doing - that is, they are rantional. Since individuals (and firms as collections of individuals who share the same interests) have their own best intersts in mind and since they know their own circumstances best, attempts by outsiders, especially the government, to restrict the freedom of their actions can only produce inferior results. It is presumptuous of any government to prevent market agents form doing things they find profitable or to force them to do things they do not want to do, when it possesses inferior information
Explain Friedrick Hayek's main points from the video we saw in class
We want to make descisions that are good for millions of individuals. The only way to truly know what they want is TRUE price signals. Signals tell us about facts which no one now concrete in their totality It is these signals from the free market which alone has made the wealth increase possible
How are houses financed?
What access is there to mortgage credit within a system? This includes access to first-time home owner grants and subsidies, the determination of fixed or variable interest rates, the deposit requirements for a loan, whether the contractual terms favor the creditor or debtor, the role of non-bank financial intermediaries, and the extent of mortgage securitization.
Explain Abdelal et al's paths of constructivism: Meaning
What is the appropriate for me to do in this situation? Weberian roots - how the material is given meaning What is a legitimate policy choice? Problem/solution sets
How is housing treated within the national welfare regime for tax purposes?
What taxes are paid, or tax breaks given, on housing-related matters? Whether systems favor mortgage interest deductibility, property taxes, taxes on capital gains from housing sales, state subsidies for rental payments, or tax breaks for investors in social housing will all effect the national economy.
Explain the Washington consensus
What was considered the most appropriate way to develop an economy from 1980s -> Neoliberal thought - Fiscal discipline - Pro-growth public expenditure (not subsidies) - Broaden tax base, low/modest marginal rates - Market determined interest rates - Competitive exchange rates - Trade liberalization - Liberalization of inward FDI - Privatization of state enterprises - Deregulation - Legally enforceable property rights
Explain 23) Good economic policy does not require good economists - what they tell you
Whatever the theoretical justifications may be for government intervention, the success or otherwise of government policies depends in large part on the competence of those who design and execute them. Expecially, albeit not exclusively, in developing countries, governmetn officials are not very well trained in eocnomics, which they need to be if they are to implement good economic policies. Those officials should recognize their limits and should refrain from implementing "difficult" policies, such as selective industrial policy, and stick to less-demanding free-market policies, which minimize the role of the government. THus seen, free-market policies are doubly good, because not only are they the best policies but they are also the lightest in their demands for bureaucratic capabilities.
Explain Abdelal et al's paths of constructivism: Cognition
Which assumptions do I take for granted when I act? Psychology/sociology roots Scripts, maps, frames, narratives shared across groups ... ... Provide taken-for-granted assumptions that ... ... Stabilise and organise interaction
Explain Horner and Hulme argument with domestic inequality
While some overall convergence between the Global North and the Global South ... There has been a significant increase in within-country inequality across the GN and the GS. -> Horner and Hulme (2020) - increasingly complex geography of development ... Where is development? - Across the globe there is a developing inequality - so where development is is a much more complex question
Explain the production structure
Who decides what shall be produced, by whom, by what means and with what combination of land labour, capital and technology and how each shall be rewarded is as fundamental a question in political economy as who decides the means of defence against insecurity As Cox and a great many readical and left-wing writers have demonstrated, the mode of production is the basis of calss power over other classes. The class in a position to decide or to change the mode of production can use its structural power over prodcution to concolidate and defend its structural pwoer over production to consolidate and defend its social and political power, establishing constitutions, setting up political institutions and laying down legal and administrative processes and precedents that make i hard for others to challenge or upset.
What does Widmaier say about Rodrik's trinity/trilemma (Capital mobility, Monetary autonomy, Fixed exchange rate)?
Widmaier: you can actually have all three - and there are historical examples of it So: It is not the material constraints that the trilemma suggest that made it encreasingly difficult for states to maintain monetary autonomy in periods of capital mobility. In fact the idea that states are doomed is actually something that is presentented by neoliberal economists.
Explain the different views on the Golden Standard people had
Willingness to accept 'automatic' deflation required 'a politically inert population where the lower classes were shut out of decision-making' (O'Brien and Williams, p. 80) Elites favoured GS because it rectified balance of payments disequilibria and enhanced government credibility while increasing trade volumes... Working classes hostile to GS because they bore deflationary costs of adjustment (real wage declines, unemployment etc) ' ... you can only really run a system like this, where domestic wages and prices do most of the adjusting to external prices, if you are not a democracy ... it was under the Gold Standard that labor across the world, both industrial and agricultural, started to combine together in unions, political parties and social movements to demand protection from the vagaries of the market and the policies of their own governments' (Mark Blyth Austerity: The History of a Dangerous Idea, Oxford University Press, 2013, p. 147)
Explain 4) The washing machine has changed the world more than the internet has - what they don't tell you
With economic development, people (or rather the labour services they offer) become more expensive in relative terms than "things". As a result, in rich countries, domestic service has become a luxury good that only the rich can afford, whereas it is still cheap enough to be consumed even by lower-middle-class people in developing countries
How can we explain an international economic order
With non-political variables and political variables Non-political variables facilitate enabling conditions. - Markets, technologies However it is the political variable that determine the ordering principles, governance and production constituting the global economy. - Power politics, Dominant ideas, Institutions, Domestic politics
Does globalization necessarily invalidate a realist approach to ipe, or perhaps make a realist IPE impossible?
You can argue either or Corona showed how much national legislation actually mattered Gilpin's apporach: - Rather than thinking of states in the system, it might be helpful to think of "national system of political economy" - Because the political life first an foremost sets in the system of national legislation, but second power is also situated within different types economic relations. - The security imperative from realists is very much at play but in the same time those relations are changing in the same way as globalazation has - so the states have become much more competitive as well - 'National systems of political economy' - The role of security and power politics in setting the context for economic activity ---> e.g. Cold War - imperative of security cooperation = stimulus to economic cooperation under US leadership (another take on embedded liberalism?) - Globalization → international economic competition - State-centrism: ---> The security imperative and relations among dominant powers are foremost (explain the rise of 'trading states') ---> 'the interests and policies of states are determined by the governing elite, the pressures of powerful groups within a national society, and the nature of the "national system of political economy"' (2001: 18) - Nb - other powerful actors (e.g. MNCs) and domestic processes
Explain Rodrick's trilemma
You can only have two of the following three: 1) Integrated national economies / globalization 2) Mass politics /democracy 3) Nation state / national control Then: Integrated national economies + Mass politics = Global federalism Mass politics + Nation state = Bretton Woods compromise Nation state + Integrated national economies = Golden Straitjacket
Explain Crouch's triangular dilemma
You can only serve the interest of two of the three: market, state and corporation e.g. state + corporation versus market Or state + market versus corporation. We can think about contemporary political economy as a triangular dilemma where the state, the market and the corporation can create aliances with eachtohter
What does Ruggie mean when he characterises the BWS as "embedded liberalism"?
You can see embedded liberalism as a compromise between free trade and social protectionism Mainstream scholars such as John Ruggie tend to see embedded liberalism as a compromise between the desire to retain as many as possible of the advantages from the previous era's free market system while also allowing states to have the autonomy to pursue interventionist and welfare based domestic policies Embedded liberalism: on a domestic scale - how do nations do this trade off - Polanie: Liberalism in general - how is social priorities embedded in that
Toward three understandings of 'globalization'?
"Deglobalization" - argues the reversal of economic globalization is structural, not cyclical, resulting from rising economic nationalism, the popular revolt against globalization, and intensifying geo-economic rivalry. "Slowbalisation" - argues the recent deceleration in the pace of economic globalization is cyclical, not structural. (Remember the Economist) "Progressive Globalisation", "A Third Way" or 'A Better Way' globalization - argues globalization is transforming into something qualitatively different, and better. (The social/regulatory/internationalist version of liberalism, critics wants something completely different)
How are different national political economies shaping the everyday of housing, and how does transnational finance impact the national models of housing?
"Home equity and social equity are often at odds" "Housing finance systems are not politically neutral" 1. "Housing financial systems — what we refer to as 'varieties of residential capitalism' — are important for national economic systems and stability and order within the international political economy" 2. "Housing market financial systems are much more connected to macroeconomic outcomes than to what is being produced: housing finance systems mattered for the distribution of global growth in the past two decades." 3. "Housing finance systems have ballot box consequences: among other things, affecting "voters' preferences for the level of public spending, taxation, and interest rates. The institutional structure ... has important political consequences paralleling those of welfare institutions"
Explain why Rodrik might say that we are going back to the original compromise
"Ironically, the hyperglobalists used the very success of the Bretton Woods system to legitimize their own project to displce it. If the shallow Bretton Woods arrangements had done so much to lift world trade, investment, and living standards, they argued, imagine what deeper integration could achieve. But in the process of constructing the new regime, the central lesson of the old one was forgotten. Globalization became the end, national economies the means. Economists and policymakers came to view every conceivable feature of domestic economies through the lens of global markets. Domestic regulations were either hidden trade barrierers, to be negotiated away through trade agreements, or potential sources of trade competitiveness. The confidence of financial markets became the paramount measure of the success or failure of monetary and fiscal policy." Should a compromise should be reforged? What compromise is possible?
What does Arundel conclude?
"The message here is not that the issues of unequal wealth accumulation are limited to housing equity, nor that solutions to inequality arise from tackling only problems within the housing system. Rather, housing dynamics are inextricably linked to essential underlying dilemmas of increasingly precarious and polarized labour markets, welfare state retrenchment and mortgage sector transformations. Within these contexts, the notion of housing equity accumulation as a broadly equalizing economic force is something that defies the growing reality of how housing markets have recently developed across many advanced economies. In the face of the increasing financialization of housing, declining access to homeownership for many, rising housing values and a concentration of the housing stock among wealthier market insiders, the practice of accessing shelter becomes a highly financialized decision wherein the circulation of capital may increasingly resemble a divergence into a class renters and a class of "rentiers".
What does Cox say about critical theory?
"Theory is always for someone and for some purpose. All theories have a perspective. Perspectives derive from a position in time and space. The world is seen from a standpoint definable in terms of nation or social class, of dominance or subordination, of rising or declining power, of a sense of immobility or of present crisis of past experience, and of hopes and expectations for the future... The more sophisticated a theory is, the more it reflects upon and transcens its own perspective; but the initial perspective is always contained within a theory and is relevant to its own explication. There is accordingly, no such thing as a theory in itself, divorced from a standpoint in time and space." Cox 1981, p. 128
Explain 13) Making rich people richer doesn't make the rest of us richer - what they don't tell you
"trickle-down economics" Pro-rich policies have failed to accelerate growth in the last three decades. - So the pie doesn't get bigger. Upward redistribution of income does not lead to accelerated growth the problem is that concentrating income in the hands of the supposed investor, be it the capitalist class or Stalin's central planning authority, does not lead to higher growth if the investor fails to invest more. Trickle down does not happen if left to the market. We need the electric pump of the welfare state to make the water at the top trickle down in anay significant quantity There are many reasons to believe that downward income redistribution can help growth, id done in the right way at the right time, as poorer people tend to spend a higher proportion of their incomes.
What did Crouch have to say on the question: Why has neoliberalism seemingly survived the recent crisis in the way that Keynesianism didn't survive the crisis of the 1970s?
'Keynesianism's crisis led to its collapse rather than to adjustments being made to it, not because there was something fundamentally wrong with its ideas, but because the classes in whose interests it primarily operated, the manual workers of western industrial society, were in historical decline and losing their social power. In contrast, the forces that gain most from neoliberalism - global corporations, particularly in the financial sector - maintain their importance more or less unchallenged' Crouch, 2011, p. 1.
Explain Keohane's main arguement about liberalism
'Liberalism makes the positive argument that an open international political economy, with rules and institutions based on state sovereignty, provides incentives for international cooperation and may even affect the internal constitutions of states in ways that promote peace. It also makes the normative assertion that such a reliance on economic exchange and international institutions has better effects than the major politically-tested alternatives' (Keohane 1990: 166-167)
Explain the IPEEL-resource "Housework"
'One of the most important theoretical contributions of feminist political economy has been to define activities like housework and care work as socially necessary labour ... labour that is essential to the reproduction of life itself and is therefore something that cannot simply "drop out" of the economy' Sedef Arat-Koç 'Housework' (I-PEEL)
What did we broadly discuss about de-globalisation of production?
'Production' is the broad theme, 'de-globalization of production' is the 'hot topic' Close relationship of production to other central themes of IPE ... The centrality of the multi-national corporation (MNC) MNCs = 'the most public face of globalization' (Thun 2020) - In both home and host countries ... - Distinctive types of politics (e.g. the social implications of 'outsourcing'; the politics of attracting foreign direct investment /FDI)) - It is both about where the companies produce and where there plants are and consumption is MNCs and the changing geography of production - The way production organzie has a huge impact on social implications etc. Also, the changing organisation of production - Cf Strange on the centrality of the 'production structure' (chapter 4). - Central Marxist concepts such as 'mode of production' (e.g. capitalism) and regimes of accumulation within capitalism (e.g. Fordism -> Post-Fordism) From globalization of production to de-globalization of production - Meaning and implications - Novelty?
What does Marx say about the State?
'The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie' (Marx and Engels, 1848) The capitalist state
How does Cox define historical structures?
'persistent social practices, made by collective human activity, and transformed through collective human activity' Robert W. Cox Production, Power and World Order, Columbia University Press, 1987, p. 4
What are the arguments for using historical analysis to study the contemporary ipe?
- Positing long-run causes of present effects - Observing cyclical patterning of over time - Identifying recurrent patterns of cause and effect - (Therefore ...) Theory development/generalisation, prediction, but ... Putting events into their context -> e.g. why the rise of free trade ideas in the C19? Recognising the historical specificity (as opposed to the universality) of certain phenomena -> e.g. homo economicus an expression of capitalist relations of production rather than a central facet of human nature
Explain the IPEEL-resource "textbook"
... 'In its abstract form, Ricardo's concept of comparative advantage erases the actual historical conditions under which English cloth was being traded for Portuguese wine at the time. A treaty had been in place since 1703 to regulate the terms of that trade. Yet far from providing equal access to the supposedly mutual benefits of free trade, the English had exploited Portuguese requests for military protection to keep all of the benefits from the treaty for themselves. Portugal struggled throughout the eighteenth century to pay off the deficit on its wine/cloth trade with England. It balanced the books by agreeing to a massive diversion to London of the gold being newly mined in its Brazilian colony. This in turn entailed a transfer of existing slave labour from its sugar plantations to its gold mines and an influx of new slave labour through the mass transportation of displaced African people. The trade between English cloth and Portuguese wine therefore represented only the third leg of the merchant ships' overall three-legged passage. The second was to bring South American gold to Europe so that it could act as the makeweight in the trade between Portuguese wine and English cloth. The first was to traffic people between Portugal's African and South American colonies to work the gold mines.' Matthew Watson 'Textbook', blogpost I-PEEL
Financialization is a concept that describes important changes to how capitalism functions and these changes, in turn, are said to have profound effects on the everyday economic and social lives of individuals across the world - why so?
... Chang's 'Thing 22' on the operation of financial markets is also relevant to this session
to which extent is 'globalization' either irreversible or perhaps on the wane?
... In that regard, the debate about rising powers (particularly China) becomes interesting and important. What kind of global political economic order is in the making? Can it continue to be a liberal order, and if not what does this tell us about some of the standard ways in which IPE seeks to make sense of the world.
Name the drivers of change in global economic order, and considering whether the study of the nineteenth and early twentieth centuries offer generalizable lessons for students of IPE
... It's worth noting that many of the standard positions taken in IPE rest upon distinctive understandings of this period. It also shows how the study of international orders is closely connected to discussions about peace and conflict in the international system
what is the discourse of neoliberalism, what is it used to justify and how does it relate to the history of economic liberal thought and practice?
... Thinking about how the term 'neoliberalism' is used in popular discourse is a helpful step to understanding its analytical usefulness.
How does Ruggie explain the emergence and persistence of world economic orders?
.... This links to an important discussion - later theorized by economists - on the compatibility of international economic openness and domestic policy autonomy.
Which four main activities can globalization be associated to?
1 Production 2 Trade 3 Finance 4 Consumption Governance comes into play across all these four Globalizational production brings into play many other actors than states ---> States ---> Giant (transnational) corporations ---> Financial market actors ---> Internaitonal economic instiutions ---> Civil society actors
Name Strange's four negative assumptions on what is NOT theory
1) A grat deal of social theory is really no more than description, often using new terms and words to describe known phenomena, or to narrate old stories without attempting theoretical explanatioon 2) Some os-called theory in internatioanl studies merely rearranges and describes known facts categories or in new taxanomies. 3) Simplifying devices or concepts borrowed from other social sciences or fields of knowledge have often had thier pedagogic uses in teaching, for getting across to students or readers a certain aspect of indicidual social behaviours. - E.g. Supply/demand of prissonors dilemma which non by themselves explin the paradoxes or puzzles of the international system 4) The development of quantative techniques applied to international studies has not advanced theory
List Ha-Joon Chang's 8 principles
1) Capitalism is the wors economic system except for all the others. - My criticism is of free-market capitalism, and not all kinds of capitalism 2) We should build our new economic system on the recognition that human rationality is severely limited 3) We should build a system that brings out the best, rather than worst, in people 4) We should stop believing that people are always paid what they "deserve" 5) We need to take "Making things" more seriously. The post-industrial knowledge economy is a myth. The manufacturing sector remains vital. 6) We need to strike a better balance between finance and "real" activities 7) Government needs to become bigger and more active 8) The world economic system needs to "unfairly" favour developing coutnries
Which sources of evidence of financialization defines as specific regime accumulation does Krippner find in the US?
1) Growing importance of portfolio income (interest payments, dividends, capital gains on investments) - Portfolio income: income gained by profits by the circulaiton of money - For Freedman this is cool - cause the only job companies have are to create value for stock holders etc. - only responsibility. - This detach profit making form anyother material process or making 2) Growing importance of the financial sector as a source of accumulation for the economy as a whole - Financial sector: accumualation regime - where does profits come from Financialisation periods are associated with - Rising socio-economic inequality - Heightened systemic risk - Higher levels of political conflict
How is Trade and issue ind the middle between the four domains of IPE?
1) Production: GVCs FDI 2)Trade: Domestic politics, Governance, Power Politics 3) Finance: Currency manipulation, Trade costs 4) Consumption: Everyday IPE Between all these four is "Fair Trade"
Name Kirshner's three foundations of realist political economy
1) The state 2) The pursuit of national interest 3) Systemic anarchy as the defining condition of world politics
Name Strange's three positive assumptions on what IS theory
1) Theory must seek to explain some aspect of the international system that is not easily explained by common sense. It must serve to explain a puzzle or a paradox where there is som easpect of the behaviour of individuals, groups or social institutions for which a simple explanation is not apparent. 2) Theory need not necessarily apsire to predict or to prescribe. This is where socials cience differs from natural science. Natural science can aspire to predict 3) Theory should be scientific only in the sense that the theorist respects the scientific virtues of rationality and impartiality and apsires to the systematic formulaiton of explanatory propositions.
List Ha-Joon Chang's 23 things
1) There is no such thing as a free market 2) Companies should NOT be run in the interest of their owners 3) Most people in rich countries are paid more than they should be 4) The washing machine has changed the world more than the internet has 5) Assume the worst about people and you get the worst 6) Greater macroeconomic stability has NOT made the world economy more stable 7) Free-market policies rarely make poor countries rich 8) Capital has a nationality 9) We do not live in a post-industrial age 10) The US does not have the highest living standard in the world 11) Africa is not destined for underdevelopment 12) Governments can pick winners 13) Making rich people richer doesn't make the rest of us richer 14) US managers are over-priced 15) People in poor countries are more entrepreneurial than people in rich countries 16) We are not smart enough to leave things to the market 17) More education in itself is not going to make a country richer 18) What is good for General Motors is not necessarily good for the United States 19) Despite the fall of communism, we are still living in planned economies 20) Equality of opportunity may not be fair 21) Big government makes people more open to change 22) Financial markets need to become less, not more, efficient 23) Good economic policy does not require good economists
Explain Helleiner's varieties of economic nationalism
1. Macroeconomic Activists - National prosperity through national economic management (Attwood) - Compatibility with liberal economic order? = No 2. Autarchic economic nationalists - Interventionist state, planned economy, protection (Fichte) - Compatibility with liberal economic order? = No 3. Listians - National development/national power as focus of economic policy (List) - Compatibility with liberal economic order? = Maybe 4. Liberal economic nationalists (a)Free trade/Gold standard as tools of national domination (b)FT/GS as sources of national consolidation - Compatibility with liberal economic order? = Yes
Describe the changing structures and organisation of production
1.0: Late 18th - early 19th Century: Mechanization Production Structure: Industrial cities. Steam engine and mechanical production Driver: Substitution 2.0: Late 19th - mid 20th Century: Mass Production Production Structure: Industrial regions. Electricity and division of labor Driver: Economies of scale 3.0: Second half of 20th Century: Automation Production Structure: Global production networkd. Electronics and information technologies Driver: Input costs 4.0: Early 21th Century: Robotization Production Structure: Global value chains. Cyper-physical systems Driver: Added value ^Different ways production has undertaken and different geographical spaces production has undertaken. The kinds of technologies associated with each phase Drives: the motivation that leads from the transofrmation from one phase to another
Explain the optic The environment offers an important alternative IPE 'optic'
= so we can reevaluate how we approach the world - Need to consider the ecological impact of human economic activity à -Consider implications for (a) the basic question of IPE; (b) the central processes of IPE - e.g. production and consumption; (c) historical periodisation of ipe - There are different ways of reading lower case ipe - the world that is out there - Depending on the lenses we see different structures - E.g. We can say a lot of things about the coffee-example about capitalism, trade, international trade etc -> without necessarily mentioning ecology
Explain the optic The environment is an IPE issue
= we can solve it within the framework of known IPE - Global governance dilemma - Collective action problem - Global environmental regime as a central case study - How to address environmental dilemmas? State power or 'climate capitalism'? - How to operationalise 'sustainable development' - Placement within main theories? Eg do we need more state power or can the market do the job = "climate capitalism" - Divern lays out in the beginning of his chapter - how market liberalism can save the day
Name some critiques of Arundel
A financial asset that is considered more difficult to quickly or fully capitalize Too much supremacy on owner occupation and that rental tenures can provide a suitable alternative means of dwelling
What kind of world order was the Bretton Woods conference trying to create?
A liberal world order - but a different one than the one that existed before A world order dominated by the global North The creation of the core Norther capitalis states and system - A liberalism created on behalf of the global North Created under the WWII - a period where the countries were on a war-economy and where a lot of the citizens' lives had been destroyed - So it is both a liberal order - but it is also contextual
How does Watson define the market?
A market is a shorthand expression for the process by which households' decisions about consumption of alternative goods, firms' decisions about what and how to produce, and workers' decisions about how much and for whom to work are all reconciled by the adjustment of prices' Begg, Fischer and Dornbusch Economics (cited in Watson 2018: 6) The contrasts he draws with the marekt concepts by economists and the ideological claim The market has a kind of personality with the ability to decide things - eg "the markets are nervous for x and x decision" - so an idea of the market as an agent and a central component of how we organize social life and place judgement.
Whose system was the Bretton Woods?
A regime that governs the system of the economies in the North => a Northern Atlantic phenomenon
Explain 17) More education in itself is not going to make a country richer - what they tell you
A well-educated workforce is absolutely necessary for economic development. The best proof of this is the contrast between the economic successes of the East Asian countries, with their famously high educational achievements, and the economic stagnation of Sub-Sahara African countries, which have some of the lowest educational records in the world. Moreover, with the rise of the so-called "knowledge economy", in which knwoledge has become the main source of wealth, education, especially higher education, has become the absolute key of prosperity.
Explain the connction between the origins of IPE and academic knowledge prodction
Academic knowledge production = a social process Power dynamics: silencing and exclusion (of What? Who? How?) Academic knowledge is partly constitutive of the world it describes The problem of conventional IPE as 'first world' knowledge - Is there a space for e.g. non-Western IPE?
What does Strange think is the different between IPE and the politics of international economic relations?
Accuses the economists for being over-quantifying and political scientists for shying away to understand what international economic relations is even about - Now we have IPE-field. But other than those, the others still act in the exact same way. - Economist have a certain epistemologist and ontologist with which they know they can answer with their models - Politics foucses on big power questions - but seldom the important questions of e.g. Multilateral corporations etc. All these points are still very relevant to day
Explain 5) Assume the worst about people and you get the worst - what they tell you
Adam Smith famously said: "It is not from the benecolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interst". The market beautifully harnesses the energy of selfish individuals thinking only of themselves (an, at most, their families) to produce social harmony. Communis, failed because it denied this human instinct and rant the economy assuming everyone to be selfless, or at least largely altruistic. We have to assume the worst about peole (that is, they only think about themselves), if we are to construc at durable economic system.
Explain 7) Free-market policies rarely make poor countries rich - what they tell you
After their independence from colonial rule, developing countries tried to develop their economies through state intervention, sometimes even explicityly adopting socialism. They tried to develop industries such as steel and automobiles, which were beyond their capabilities, artificially by using measures such as trade protectionism, a ban on foreign direct investment, industrial subsidies, and even state ownership of banks and industrial enterprises. At an emotional level this was understandable, given that their former colonial masters were all capitalist countries pursuing free-market policies. However, this strategy produced at best stagnation and at worst disaster. Growth was anaemic (if not negative) and the protected industries failed to "grow up". Thankfully, most of these countries have come to their senses since the 1980s and come to adopt free-market policies. When you think about it, this was the right thing to do from the beginning. All of today's rich countries, with the exception of Japan (and possibly Korea, although there is debate on that), have become rich through free-market policies, especially through free trade with the rest of the world. And developing countries that have more fully embraced such policies have done better in the recent period.
What is the role of the state for the market?
Although we need the state not to interfere with the market, we need the state to create and protect the market in the first place There is a tendency within liberal economic to think of the market as something that should reach outside the state A lot of the early liberal economists were actually theorizing how to supranational institutions for securing liberal markets with no risk of democratic interference etc.
Is power is not in the hands of political authority and not with markets, or economic authorities, then who exactly wields power?
Answer: Structural power. She shifts the discussion from the type of actors that can make decisions, and hence, supposedly wield power, to a ssphere of structures, where power is by definition not an asset that can be brandished, used, exercised or exerted.
Explain Arrighi's arguments about power and finance within IPE
Arrighi: financial dominance often endures even after trading advantages have faded - Financial expansion (at the expense of the productive economy) is historically associated with periods of declining hegemony Arrgihi: marxist world system theory. If you look at periods of hegemony one of the clear definition of what i s a global hegemon is financial dominace - so state power Tension between financial and productive economy = often a sign of a decline of a hegemon
Explain 18) What is good for General Motors is not necessarily good for the United States - what they tell you
At the heart of the capitalist system is the corporate sector. This is where things are produced, jobs created and new technologies invented. Without a vibrant corporate sector, there is no economic dynamism. What is good for business, therefore, is good for the national economy Especially given the increasing internaitonal compitition in a globalizing world, countries that make opening and running businesses difficult or make firms do unwanted things will lose investment and jobs, eventually falling behind. Government need to give the maximum degree of freedom to business.
Explain constructivist IPE
Basic premise: interests are not materially given Interests emerge through interaction or via the power of ideas The importance of norms Focus on collective (or shared) meanings (intersubjectivities) ... We have the interests we have because we understand them to be so - not because they are objectively there
Why is the period of the rise and fall of the Bretton Woods system important?
Because it led to the establishment of many institutions of global economic governance - some of which persist today, some of which don't. Establishing why some institutions and initiatives 'worked' and some didn't provides an interesting insight into the role of international co-operation in the global economy, and the extent to which economic forces are governable.
What is the main differences and likelyhoods between constructivism and critical theory?
Both address 'silences' in conventional scholarship ... CON: Ideas, norms etc matter CT: There is power structures in those CT: the concealed normative purposes of standard academic knowledge/how conventional academic knowledge is constitutive of the world it analyses - Critical theorist: the thing they identified as been concealed - no matter how much it seems tio be neutral, valuefree, and scientific - it is all written by the underlying normativity - which lies under all aspects in the social world - Think about how knowledge contribute to the way we look at the world - they contest the idea that you can look at the world objectivly. And the knowledge we produce about the world also affects it. CON: 'collectively held ideas shape the social, economic and and political world in which we live' (Abdelal et al 2010: 2) - Constructivist: Ideas matter - especially ideas that are held collectively.
Watson: On which parametres has the market concept changed throughout?
Both methodologically and ontologically Methodologically: it has gone from a non-mathematical to a mathematical concept, but also very different mathematical goals has separated the partial equilibrium model from the general equilibrium model Ontologically, the shidt has been from the less to the more abstract
What does Elias and Roberts say about Feminist IPE meets 'Everyday' IPE
Broadening of the sites and spaces of IPE Widening and deepening of capitalist market relations - intrusion into all spheres of social life Gender is central to understanding the terms of which individuals & households are enmeshed in capitalist social relations The everyday as the site of reproduction and resistance
Ruggie: How to balance the good of international economic openness against the good of domestic policy autonomy?
Cannot explain the form and content and rise and fall of an international order with reference to distribution of power only (cf Kindleberger and realists) Need to understand the role of legitimate 'social purpose' (power may predict the form of the international order, but not its content - p. 382) The task of the postwar institutional reconstruction was ... to devise a framework which could safeguard and even aid the quest for domestic stability without ... triggering the mutually destructive external consequences that had plagued the interwar period. This was the essence of the embedded liberalism compromise: unlike the economic nationalism of the thirties, it would be multilateral in character; unlike the liberalism of the gold standard and free trade, it would be predicated upon domestic interventionism (Ruggie (1982: 393) The "impossible trinity"
Briefly explain the contributions from the authors
Chang's concluding chapter from 23 Things ('How to Rebuild the World Economy') is interesting because of the relative lack of concern for the environment amongst economists. Dauverge provides a standard textbook introduction to the IPE of the environment. Stevenson links capitalism with the need to take environmental sustainability seriously. Steffen et al plot the trajectory of hothouse earth over 2°C temperature rise. Bendell sets out a map for navigating the climate tragedy with 'deep adaptation'.
Explain the IPEEL-ressource "coffee"
Classical example - There is an asymmetry between the countries producing coffee and the countries consuming An asymmetry of development - Relation between production and consumption -> trade - However he is not buying directly from her but via third parties - Most coffee is in fact roasted in the consumption market - The surplus generated by the consumption boom is not sent back to the producers - So something has happened in the chain This is where fair trade for instance try to make sure that a fair share of profits go back to the producers
Explain Veblen and the idea of 'conspicuous consumption'
Consumption is not only about needs it is also about status - because of the Veblen effect - Consumption for the purpose of displaying wealth and acquiring social status - Classical economics suggests that individuals will seek to spend the minimum to maximise utility, and homo economicus is purely self regarding ... - ... whereas Veblen (1899) sought to explain why some individuals would gain from excessive expenditure, and shows importance of how consumers take account of the opinions of others when they consume ... - The importance of status or 'cultural capital' Two motives : 1) 'Invidious comparison': Consumption by a member of a higher class to distinguish themselves from member of a lower class 2) 'Pecuniary emulation': Consumption by a member of a lower class with the hope that they will appear to be of a higher class
How and why were policy makers compelled to create a new international monetary order in the 1940s?
Core question
How are the 15 identified tipping cascades altering the global political economy?
Core question
How significant are multi-national corporations (MNCs) in the global economy?
Core question
Is the international economy globalising or de.globalising?
Core question
To what extent is 'globalization' a central and useful concept for students of IPE?
Core question
What are the primary inequality consequences of housing, and what policies could mitigate these?
Core question
Explain Human development
Development = about more than economic growth (people, not the economy). Expansion of range of development metrics, including effects of growth on e.g. poverty, inequality, gender relations, environment etc. E.g. the UN development goals. With the milinial goals, the main focus was on features that were not present in the "underdeveloped" parts of the world, where the sustainable development goals focusses on features of development necessary in all parts of the world
Explain Neo-statism/developmental state
Development = achievement of rapid growth through the active and strategic government of markets by the state. Beijing consensus?
Explain Modernisation
Development = both end goal of capitalism + liberal democracy and the sequential process of achieving that end Competition-optimistic theory. Competition will lead to economic growth and development thereby leading to welfare, povertyreduction, democracy and human rights.
How would you make sense of van Bergeijk's finding that 'In the 1930s, autocratic rule and dictatorship are associated with stronger deglobalisation; in the 2000s, democracy is associated with stronger deglobalisation.' (2018: 62)?
Different periods of globalizaiton between these periods
Explain the role of theory in IPE
Different theories provide different 'readings' of IPE - Explanatory/analytical - Normative Theories are also forces within the world that we study - e.g. liberalism and economic nationalism are not simply two rival detached readings of the world The 'politics' of theory in IPE - e.g. why is Adam Smith read as he is? - e.g. Why is Ricardo's theory of comparative advantage (1817) still the dominant way of thinking about international trade? - Are IPE essentially IR questions with a bit of 'E' thrown in?
How should we think about the concept of 'power' in relation to IPE?
Different ways Strange: Relational or structural Soft power >< hard power Relative or absolut
Dominant ideas: Is it possible to identify a dominant strand of economic thinking that shaped the pattern of nineteenth century international economic relations?
Economic liberalism Polanyi on the self-regulating market Remember: - Dominant ideologies often serve the dominant class at the given time - When we talk about an open liberal economy - who's economy are we talking about? - When we look historically at the emergence of this order, what becomes clear is that the countries benefiting was the empires. - The most important question to ask when talking about ideologies is to ask who benefits from them - Economic liberalism as the dominant strand of economic thinking
What is Ha-Joon Chang's main point from his presentation?
Economics is 95% non-complicated and common sense - just made difficult The best way to proof something is to repeat it all the time. - this is how it came to this. Many economists are not even interested in the real world. If you are really smart you do very abstract mathematics modelling. - a strange academic culture. - When you say these things people refuse to listen to you. How do we change the circustances? -> economic citizenship. People have to demand change. But we have been brain washed by the free market economists that people think that everything hapening has to happen. - People who want to defend the system all say it is because of technologies or China etc. - and do not admit that it is political. Eg when the telegram was invented the world was much more globalized than in the 70s - so it is a political choice
What did Watson say about the metha-mathematics?
Economists have by time developed a theoretical framwork of understanding the market that has become very fare away from the real world experience of it. - gradual disconnect bewteen the market concept and the real life market - how did that happen? The field of metha-mathematics - studies the field of what is accepted as the truth in mathematics. Over time we have moved from one true-sense to another. Today all you need to be right is to have no inherently logic flaw in what you put together = inpregnable laws of the market There are different types of mathematics in economics. We have moved from a "if, then" construction to a "since, then" construction "if then": if we make all these assumptions then we can logically show that a condition of general equilibrium exists "since, therefore": since we have shown that a position of a general equilibrium can exist, therefore we need to move politicaly to a position where we do xx A misappropriation of the findings to apel af politicla agenda that what initially meant for that
In what way was the 'liberalism' of the Bretton Woods period different from that of the nineteenth century?
Embedded
Is finance global? / The 'spatiality' of finance?
End of geography' arguments: - in principle possible to move any amount of money anywhere, instantaneously - finance is almost uncapturable by conventional state formations. No geographical constraints World cities' arguments - Only a few cities have the capacity to act as hubs for the financial system - Concentrated real estate and labour ... - there are certain locations in the world where finance gathers, that is cituated in legislation.
Explain 15) People in poor countries are more entrepreneurial than people in rich countries - what they tell you
Entrepreneurship is at the heart of economic dynamism. Unless there are entrepreneurs who seek out new money-making opportunities by generating new products and meeting unmet demands, the economy cannot develop. Indeed, one of the reasons behind the lack of economic dynamism in a range of countries, from France to all those states in the developing world, is the lack of entrepreneurship. Unless all those people who aimlessly loiter around in poor countries change their attitudes and actively seek out profit-making opportunities, their countries are not going to develop.
What does Watson say on inequality?
Equality is one of those concepts that it seems to be difficult to argue against. And yet still inequality appears to have thrived recently in a way that is turning the clock back to the nineteenth century. IT is more a feature of everyday life today pretty much throughout the world than it has been at any time in liing memory. It is less critiqued, less challenged, less mobilized against. The ever more widespead use of political rhetoric of "the market" as an all-seeing and all-knowing thing is one reason why. The political theologians will point out that their misfortune is down to their own inadequacies and not in any way to "the market". "The market"; after all, treats everybody equally and also does the best for the wole of society. In this way, the responsibility for the spiralling inequality of outcomes is displaced into the realm of perosnal failings.
What does ROWAN ARUNDEL argue?
Equity Inequity: Housing Wealth Inequality, Inter and Intra-generational Divergences, and the Rise of Private Landlordism Housing property in the dynamics of wealth inequalities: "Simply speaking, housing equity can be considered as one component of the economic portfolio of households, which includes income stream, other financial savings and further capital wealth, such as stock investments and business holdings - net of total debts" "In advanced homeownership societies, owning property has been a widespread achievement, albeit most notably during certain cohort periods, and thus for many households acts - or is perceived to - as an essential vehicle for storing and accumulating household wealth"
Why is financialization change IPE?
Finance has now redefined patterns of authority in international political economy. Regulation has moved from the state to a network of transnational specialized agencies. Finance has also become inextricably interwoven with financial crisis - it is difficult to consider one without the other.
What lessons have we learned from the Bretton Woods period?
Further evidence that international economic orders are 'political constructions' that can vary dramatically over time. Theories have real-world consequences
How did GS operated as a mechanism for adjustment in international trade by bringing states' exports and imports into balance?
GS operated as a mechanism for adjustment in international trade by bringing states' exports and imports into balance ... The only way within the rules to bring the trade balance back into the equilibrium is by deflations, so the gold standard implies and accept of deflation - This requires a working class with no influence - The elite favours the gold standard - enhances the credibilities of governments abroad and trade volumes encrease - However, those on the receiving end of the deflations policies (the working class) are effectively very hostile toward the GS. Because they suffer real wage decline, unemployment, public service. The gold standard and the generation of elite and lower class therefore in effect becomes the stimulus for collective political action. And it really becomes a problem when the working class got the vote -> problem for GS that in a democracy, people won't favor the policies necessary for the market
Name the three broad themes of feminist IPE found by Bedford and Rai (2010)
Gendered regimes of capitalist production and consumption Gendered systems of exchange Gendered struggles for emancipation and equality
Explain 23) Good economic policy does not require good economists - what they don't tell you
Good economists are NOT required to run good economic policies. free-market economics has resulted in: lower economic growth, greater ecoonomic instability, increased inequality 2008 global financial crisis.
Name the three empirical foci of feminist IPE found by Bedford and Rai (2010)
Governance - Gender mainstreaming (a contradiction?) - Modes of domination (surveillance of welfare, immigration regimes) Social reproduction and work (institutionalised through gendered labour, discourse and organisation of everyday life) - SR = biological reproduction + unpaid domestic production + reproduction of culture and identity Intimacy and the household - Heteronornative framings of the economy and everyday life
Explain 12) Governments can pick winners - what they don't tell you
Governments can pick winners, sometimes spectacularly well. Moreover, decisions that are good for individual firms may not be good for the national economy as a whole. Therefore, the government picking winners against market signals can improve national economic performance, especially if it is done in close (but not too close) collaboration with the private sector. After all, private sector firms try to pick winners all the time, by betting on uncertain technologies and entering activities that others think are hopeless, and often fail. Indeed, in exactly the same way that even those governments that have the best track records at picking winners do not pick winners all the time, even the most successful firms do not make the right decisions all the time
Explain Gramsci and the reconceptualisation of hegemony
Gramsci's problem: Why has there not been an overthrow of capitalism in the most advanced capitalist states? -->... or how is class rule maintained in capitalist society? Two ways: 1) Coercion 2) Hegemony: - Not brute domination - Intellectual and moral leadership - Cognitive dominance via the dispersion of capitalist ideas ... - ... which come to be regarded as common- sensical/normal - Class rule via consent 2) Hegemony => Strategic implications - counter-hegemony
Briefly consider what (if anything) feminism offers to IPE as a field of study.
Group 4 Offers a critical form of analyzing, a new perspective - an enabler for other theory, class, socioeconomic, globalsouth, anticolonial, queer, - emphasises which other voices are not heard? Group 2 - How gender relations determine economic relations and how capitalism is determined by those gender relations. - The perspective can be applied to different historical moments - It's a tool that analyses the world and try to change it. It's not a political agenda but it identifies power relations. It looks for social change. - Create new concepts and new research objects. It uses multiple disciplines to create new concepts. It combines race, class and gender (intersectionality) Group 3 We should look on the society from a female perspective instead from a "masculine" perspective. - Looking on politics from the domestic sphere to a larger extent. - Looking at the actor level to higher degree. - Looking at who exercises power - Put light of things that are normally invisible - Good way to use tools to understand who the minorities/majorities are. - It can contribute to put less focus on less materialistic perspective in political economy, fields that are not normally calculate. - Contributes as a subfield of a critical theory. Group 1 Another optic of how ipe works - providing a gendered focus on different issues relevant to the field of ipe (trade, production, consumption) Enloe - where are the women? Provide on greater intersectionality and challenges liberalism (and neoliberalism) A critical perspective that questions supports and basic assumptions within dominant theoretical perspectives
Isn't Hayek's price signal system unjust in the way we only reward in economic terms and unproportionate to peroples merits?
He admits this, but says that it can't be just.The system deciding what is best for the majority of people cannot take into account the merits of specific indiciduals Irrespective of what merit is behind it or not, we need to make people do what is best for the rest. The pricing signals will tell us what people have to do - and that has nothing to do with their personal merits or needs
Name two hugely influential explanatory frameworks for understanding international economic orders
Hegemonic stability theory (first articulated by Kindleberger - see also session) and Polanyi's 'double movement'.
What are the primary inequality consequences of housing, and what policies could mitigate these?
Housing opens up a discussion related to ownership, credit access and welfare redistribution. Raises questions as: 1) What is housing in any given society, how do people think about it, and who owns it? 2) How are houses financed? 3) How is housing treated within the national welfare regime for tax purposes?
Main argument from Eric Helleiner 'Economic Nationalism as a Challenge to Neoliberalism? Lessons from the Nineteenth Century'
I show how the history of economic nationalism in the 19th century provides strong support for two important but potentially controversial arguments made in recent literature about the nature of economic nationalism: (1) that this ideology is most properly defined by its nationalist content (rather than as a variant of realism or as an ideology of protectionism), and (2) that it can be associated with a wide range of policy projects, including the endorsement of liberal economic policies. With these two points established through historical analysis, I conclude that economic nationalism should be seen still to be a powerful ideology in the current period, but that its relationship to the policy goals of economic liberals is an ambiguous one, just as it was in the 19th century.
What is the difference betwen IPE and GPE?
IPE: Internationa Political Economy. The field of study that examines the interaction of economic and political phenomena across state borders GPE: Global Political Economy. Reffering to the environment from the last quater of the 20th century until today. This is an era where states, sorporations and citizens struggle to order their environment in a world characterized by intesified globalization.
Explain relaism and liberalism's role in developing American IPE
IR liberals (such as Keohane) have been crucial to the development of American IPE. The first class will think about the strengths of IR-variant liberal IPE arguments in the context of particular cases and in relation to realist IPE. Realists themselves can claim to have developed (at least a version of) hegemonic stability theory, and as such we will revisit the question of its utility to IPE.
Name the three principal approaches that are often said to sit at the heart of International Political Economy.
IR realism, IR liberalism, IR marxism A standard textbook way of presenting this material would be to identify IR realism, IR liberalism and Marxism as three competing discourses of IPE. That's partly true, but it could be argued (a) that standard IR theories on the one hand and Marxism on the other are quite distinct intellectual projects, (b) that we learn more from thinking about the distinctive IR 'capture' of IPE as its subfield, and (c) that Marxism is a complex and variegated tradition with several strands of IPE analysis in play
Name different aspects of trade that is important for IPE
Identity, age and resistance: To consider who we are when we consume Housing finance: To relate consumption to finance Introduce comparative political economy of housing Relate to inequality debate in IPE
Why is power important for IPE?
If political science is the study of power, then IPE becomes the study of power through/because of/despite off/etc economy. Different understandings of power. Two biggest ones: Relational Power and Structural Power Strange: Structural power Dahl: Relational power: 'A has power over B to the extent that he can get B to do something that B would not otherwise do'
What is Bernard Levin main arguement about the market?
If the world is constituted by a lot of individuals with different motivation, the only way we can know them is to see them play out in the market.
What did the Bretton Woods system achieve?
If you look at the incidents of banking crisis going back, what we notice is that there is one period where there is low incidents of international banking crises - namely the short period of the Bretton Woods Sysstem => a period of remarkable international economic stability - In a sense it is the variable that describes this stability There is a coincidence of the BWS with the high-point o "democratic capitalism" - A puzzle about wether the BWS is the thing that can explain this development and peace in the world (?!)
A brief history of trade
Imperal trade: - 'Early trade was a primitive exercise' - Imperialist trade: finished goods-raw materials, slaves - State owned traders (East India Company), - But Mercantilism dominated. Nation-building projects. 20th Century: - Erosion of protectionism (British Reform Act 1832, German Zollverein 1870) - 1st wave globalisation disrupted yb WW1, protectionism, (1930s) - The post-war 'free trade' 'compromise' (1947, GATT) - 1994: WTO established - 2003: China into the WTO 21st century: - 2007: Financial crisis - 2003/9- Bilateralism starts (2013: TTIP, TTP, ends in 2016) - 2018: the trade wars - 2019: the WTO crisis - 2020 Covid-19 pandemic
How would a Marxist tell the story of the rise and fall of the nineteenth century liberal economic order? How would it be distinctive from the standard IPE narratives and theories that we have looked at so far?
Imperialism as the source of inter-state conflict that culminated in WW1 'Globalization' associated with the logic of capitalism ... Transnationalisation of economic systems and relations of production ... ... But does it represent a reconfiguration of political power, rendering the nation-state more or less obsolete? (Hardt and Negri 2000) Does the nation-state (and nation-state system) still help the reproduction of the capitalist mode of production? Was the nation-state (and the international states system) a pre-modern artifact that has survived into the age of capitalism? (Teschke 2003)
What does Helleiner's (2002) argue about economic nationalism?
Importance of nationalist ideology - not a variant of realism or protectionist ideology ← distinct 'ontology' of EN: national community rather than the liberal individual as the key unit of the economy - Communitarian rather than cosmopolitan? - Different 'referent' objects: LIB - 'the market'; EN - 'the nation' - The most important policies are the once protecting the community - which might be liberal policies and which might not → EN can be associated with a wide array of policies oVarieties of economic nationalism Liberals concerned with 'the mere exchangeable value of things, without taking into consideration the mental and political, the present and future interests, and the productive powers of the nation' (List, cited in Helleiner, 2002: 311)
What are the political consequences of the financialisation of everyday life?
Individualizing and risk-taking -> effecting life. Collective action problems when people are not in the same situation Mindsets of investers, borrowers etc One of the things associated with an economy that is financialized is that in the pursued of everyday needs we are less soladaristic and more individualistic - we are taking on the role of being our own entreprneurs. We are being encouraged to become financial market actors ourselves - and encourage to rely less on social contracts as the welfare state. Under these cercumstances we rely more on our own political access. - It is hard when talking about this to distinguish the financialization from e.g. The neoliberalist ideologiy - It is a relationship between the evolvement of financialization and the neoliberal idea "financial individuals" we normalize risk and instability/uncertainty - the system as a whole internalize risk. We leverage agianst instability in life by .. - Finance: a world of risk takers who hege against uncertainty
Explain 6) Greater macroeconomic stability has NOT made the world economy more stable - what they don't tell you
Inflation has become a bogeyman that has been used to justify policies that have mainly benefited the holders of financial assets, at the cost of long-term stability, economic growth and human happiness.
Session 5a
International relations theories and IPE
Session 1a
Introduction to the course: the field of IPE
Is de-globalziation a cyclical process?
Is de-globalziation a cyclical process? - Whether the de-globalizaiton we saw in the 30s is the same as we now? Is it comparable? What does de-globalization look like? Maybe the de-globalizaiton is very different bewteen the different periods The question is alway "how does de-globalization look like?" - Bergeijk: Trade as a proxy but also capital flow. - O'Sullivan: moving from a single-model to a regionalisation of three 1)Us, 2)China, 3)EU
Strange: What is the study of international political economy?
It concerns the social, political and eocnomic arrangements affecting the global systems of production, exchange and distribution, and the mix of values reflected therein. It is impossible to study political economy and especially international politicla eocnomy without giving close attention to the role of power in economic life. Each society or system we analyze reflects a different mix in the proportional weight given to wealth, order, justice, and freedom. What decides the anture of the mis is, fundamentally, a question of power
Main argument fromThomas Piketty Capital in the Twenty-First Century
It focuses on wealth and income inequality in Europe and the United States since the 18th century. When the rate of return on capital (r) is greater than the rate of economic growth (g) over the long term, the result is concentration of wealth => This unequal distribution of wealth causes social and economic instability. Piketty proposes a global system of progressive wealth taxes to help reduce inequality and avoid the vast majority of wealth coming under the control of a tiny minority. Inequality is not an accident, but rather a feature of capitalism, and can only be reversed through state interventionism. The power of this economic class is increasing, threatening to create an oligarchy. Without tax adjustment, Piketty predicts a world of low economic growth and extreme inequality.
Has economic financialisation been enabled politically?
It has. How the financial crisis show how it has been politically There is an idealogical drifts which ahs favoured outcomes associated whith the outcomes of question 1 There has been taken specific legislative meassures that has enabled acceleration of financializing processes witht the economic realm - 1933 legislation which seperated investment banking from retail banking, which meant you had two different tyoes of banks. = the moment to create cercumstances Polanyi idea that the states creates the market -> the state enabled politically the financialization - Markets are made possible by poliical interventions - evidence is the fact that when the markets get into trouble, the state is the once supporting. - However deep IPE question of what role political agency play? And what role does ideas play as presented as normal and natural?
How are MNCs powerful?
MNCs can make policies through lobbying, negotiating with countries, påvirke science-focus. So in that way MNCs can enjoy large relative gains compared to other companies. The possibility for investment in a country puts pressure on the domestic political responsibility - Locational power - where to place production - Rule power - the way to produce = Relational power. Bargaining power associated with the threat of exist - Politics of foreign investments is also the politics of disinvestment - If states will compete on these investment they will structure taxes in a favourable way for the MNCs
Discribe The Transatlantic Divide: Why are American and British IPE so different?
Main authors: Cohen-text and Blyth American: - The dominent version of IPE in the world - Very close to conventional social science. - Analysis is based on the twin principles of positivism and empiricism (=objective obsercation and systematic testing). British: - Alternative version of IPE. - Scholars link more often with other academic disciplines, byond ainstream economics and political science; - A deeper interest in normative issues. - Less focus on scientific method and more on the agenda
Explain 20) Equality of opportunity may not be fair - what they tell you
Many people get upset by inequality. When you reward people the same way regardless of their efforts and achievements, the more talented and the harder-working lose the inventive to perform. This is equality of outcome. It's a bad idea, as proven by the fall of communism The equality we seek should be the equality of opportunity. People should be given equal opportunities. However, it is equally unjust and inefficient to introduce affirmative action and begin to admit studetns of lower quality simply because they are black or from a deprived background. In trying to equalize outcomes, we not only misallocate talents but also penalize those who have the best talent and makre the greates efforts.
Is there a tension between a a liberal international economic order on the one hand and democracy on the other?
Market and democracy = two conflicting logics - Democracy: logic of representation and collective action - Liberal market: logic of liberal order, and working against collective action since this is seen as distortion in the makret. Polani: the grat transformation: Liberal economic order excludes huge parts of the society - An economic order based upon the self-regulating market has huge social effects It is a recurring tension - The lesson from the nineteenth century: when you have a liberal order with a great impact domestically then the democracy will push back - as we see with Trump = a sociatal kick back agianst economic internationalism The neoliberal order makes the role of the states mainly about goods and trade and compition between the states - and less about supplying welfare and the like In a democracy you can vote against things - but it is not as streight forward as that - Cause it need a huge social movement and mobilization - This is hard because the market ideology itself is increadably powerful. The idology of the market is persuacive and powerful in such a ways that it obscures the democratic order. - In a sense both democracy and the market are idologies.
What is Stigliz' main argument about the market?
Markets left to much by themselves don't produce the necessary innovation, research etc. Government is not just needed in order to ensure the security for the market, but also to regulate and to providing much more as for instance technological support and other research that companies exploit Suggests that economic theory is an important component of the world that we study when we study IPE Watson, Stigliz and Marx: Critique of the pure market
Explain 1) There is no such thing as a free market - what they tell you
Markets need to be free. When the government interferes to dictate what market participants can or cannot do, resources cannot flow to their most efficient use. If people cannot do the things they find most profitable, they lose the incentive to invest and innovate. Thus, if the government puts a cap on house rents, landlords lose the incentive to maintain their properties or build new ones. People must be left "free to choose", as the tile of free-market visionary Milton Freidman's famous book goes
State the difference between merchantalism and economic nationalism
Mercantilism - zero sum WEALTH & POWER Economic nationalism - (potentially) positive sum DEVELOPMENT
Explain the logic in the Classical understanding
Monetary understandings: Expectations are "efficient" reflections of short-run and long-run wage, price, or currency trends Culture/interests: Hobbesian Enmity: Constitute interests in unqualified self-help, as any multilateral assistance risks rewarding inefficient state or societal agents Policy behaviours: Self-Help/Mercantilism: Short- and long-run market efficiency eliminates need for long-run guidelines or short-run cooperative interventions
Explain the logic in the Keynesian understandings
Monetary understandings: Wage, price and currency expectations shape monetary trends in self-fulfilling fashion Culture/interests: Keynesian Friendship: Constitute insterests in ongoing cooperation to stabilize expectations and prevent market failures Policy behaviours: Maintain Ongoing Guidelines: States and societal agents cooperate in maintaining wage, price, and currency guidelines
Why has neoliberalism seemingly survived the recent crisis in the way that Keynesianism didn't survive the crisis of the 1970s?
Neoliberalism is one of the ways in which we can talk - The form globalization has taken the last 30 years is perhaps a form that has been taken by neoliberal thoughts Why neoliberalism has survived the financial crisis in a way that Keynesianism didnøt - In particular the Chicago School effectively rethink the market -> leads to a situation where giant coorperations are allowed to evolve - Leads to situation where less effective domestic governance is påvirket by the giant coorporations The way in which the idea of the market infuses everything Neoliberal capitalism: core aim to take politics out of economy
Can the concept of 'economic nationalism' help us to understand the historical periods that we have looked at in this course so far?
Nineteenth century: Classical liberal period. EN as the opposite of 'proper' state behaviour. - Economic nationalism can take many forms - Great Britten had a period where they had the hegemony of world capitalism which was nationalist - they benefitted a lot on the trade - Paradox: to what extent does a liberal international economic order require a state that is doing things of large economic nationalist reasons -> suggest that the two liberalisms aren't exclusive - Can there be a coincidence between nationalist wants and open liberal order The inter-war period: EN bound up with the legitimation of war economies. EN visible in rhetoric and policy after the great depression - the archetype of (protectionist) EN. No hegemonic stability as source of EN, or because of EN?) The Bretton Woods era: Attempt to establish liberal order with expectation that domestic social and economic purpose prevail (allowance of EN?). Decolonisation - key source of EN. Clear hegemonic structure (US interests?). 'Collapse' of BW because of EN? - Focus on nation state and rebuilding that through economic principles The era of globalization Weakening of domestic autonomy. Golden straitjacket. Culture/identity under threat - a stimulus for EN? EN ruled out as a developmental pathway by the 'Washington consensus' ... until the rise of China (via EN?). Beijing consensus? - Even though this might be the most globalist/liberal period the dominant discourse is still nationalist - A world that appears to made in a vision of a borderless world. - Pure liberals find boarders problematic for two reasons: 1) different legislation therefor difficult for free trade and movement, 2) the idea of national democracy and its capacity to interfere with the market
What does Raworth argue in terms of fetishizing growth?
OBS ikke på pensum - men forfatter til en af figurerne Raworth: the way we think about economy has fetischized the idea of growth for the growth's sake
Explain 9) We do not live in a post-industrial age - what they tell you
Our economy has been fundamentally transformed during the last few decades. Especially in the rich countries, manufacturing industry once the driving force of capitalism, is not important any more. With the natural tendency for the (relative) demand for services to rise with proserity and with the rise of high-productivity knowledge-based services (such as banking and management consulting), manu facturing industries have gone into declinge in all rich countries. These countries have entered the "post-industrial" age, where most people work in services and most outputs are services. the devline of manufacturing is not only something natural that we needn't worry about but something that we should really celebrate. With the rise of knowledge-based services, it may be better even for some developing countries to skip those doomed manufacturing activities altogether and leapfrog straight to a service-based post-industrial economy
Who is critical of Cox' definition and why?
Paul Cammack 'It is ironic that self-professed critical theorists have lapped up this so obviously spurious formulation so uncritically. What is presented as a contrast between two approaches to theory turns out to be a contrast between two political orientations - support for and opposition to the status quo respectively. It is constructed on the basis that supporters of the status quo cannot reason about their broader circumstances, or question any element of the institutional order they support. In this Manichean world view, to be a supporter of the prevailing order precludes reflecting on that order as a whole and the social and power relations and institutions involved in it and how they came about; or recognising that some challenging changes are taking place, and adapting in order to protect core interests ... For on any sober analysis, it is the 'problem-solvers', or the supporters of global capitalism as a project, who have been the more reflective, the more willing to question existing institutions and power relations, the more capable of taking a holistic view, the more willing to embrace and promote change, the more able to articulate and advance a normative choice in favour of an alternative order within the limits of the possible, and therefore the more able to devise and implement a strategic programme through which it can be pursued.' Paul Cammack 'RIP IPE', Papers in the Politics of Global Competitiveness, No. 7, May 2007, pp. 5, 9-10
Explain 16) We are not smart enough to leave things to the market - what they don't tell you
People do not necessarily know what they are doing - "bounded rationality". The world is very complex and our ability to deal with it is severely limited. Therefore, we need to, and usually do, deliberately restrict our freedom of choice in order to reduce the complexity of problems we have to face. Often government regulation works, especially in complex areas like the moderne financial market, not because the government has superior knowledge but because it restricts choices and thus the complexity of the problems at hand, thereby reducing the possibility that things may go wrong. Many regulations work NOT because the government necessarily knows better than the regulated but because they limit the complexity of the activities, which enables the regulated to make better decisions
Is the double movement an inevitable process? Can the concept be enlisted as a central plank of a general theroy of ipe?
Perhaps what he gives us a vocabulary which allows us to look at a particular period and look at that moment in relations to where it stands -> a framing device rather than a theory We should be looking for the moments of time where there is this tention. - In this way he debunks the neo liberal myth In the periods of market dominance it supresses all other social values in the society at the moment
To what extent and why is 'development' a contested concept in scholarly and policy discourse?
Politically you can see it in the way the development goals change - Firt the millenial goals and now sustainable - with the latest the North has also been included as an area where there is need for development We often think that the West itself developed through this open-market ideas and because of that we try to export that to the rest of the world. - But as Ha Joon Chang says, a lot of the Western countries themselves actually didn't developed thorugh an open-economy market - Ha Joon Chang: development is almost never through exposure to free markets, but very often about state power that strategically develop an economic capacity before you open things up
Give examples of the questions we can answer with political variables
Power politics How (if at all) did the configuration of state power in the nineteenth century influence the pattern of international economic relations? Dominant ideas Is it possible to identify a dominant strand of economic thinking that shaped the pattern of nineteenth century international economic relations? Institutions Which institutions (or the lack of institutions) enabled the specific order? Domestic politics How did domestic politics effect the development?
What is the premise of trade?
Premise: trade does produce gains, but liberal trade theory does not address the distribution of these gains. 'the politics of trade' may obstruct efficient and fair distribution of these gains.
Power politics: How (if at all) did the configuration of state power in the nineteenth century influence the pattern of international economic relations?
Presence of a hegemon Hegemonic stability theory Different theories: Hegemonic stability theory - A liberal open economic order is only possible if you have a hegemonic state overseeing that system. - An open system only possible with a single dominant power - Starting with "World in depression"-book by Kindleberger Self-regulating market North South theory / world system - Capitalist economies services a particular hierarchy -> so capitalism services the Northern core countries - So the perifiral states find themselves situated in the hierarchy to benifit the cores states developing capitalism in the nineteenth century The internal configuration of countries: - How the different tensions inside countries have participated in creating the world order. Eg pressures from elites - It is the bourgeois class that forces the states and the global into a capitalist market
What are IPE's four main thematic areas?
Production, trade, finance, consumption
Main argument in Rory Horner and David Hulme, 'From international to global development: new geographies of 21st century development'
Recent claims of 21st century global convergence and the 'rise of the South' suggest a profound and ongoing redrawing of the global map of development and inequality. This article synthesizes shifting geographies of development across economic, social and environmental dimensions, and considers their implications for the 'where' of development. Some convergence in aggregate development indicators for the global North and South during this century challenge, now more than ever, the North-South binary underlying international development. Yet convergence claims do not adequately capture change in a world where development inequalities are profound. Betweencountry inequalities remain vast, while within-country inequalities are growing in many cases. Particular attention is given here to exploring the implications of such shifting geographies, and what those mean for the spatial nomenclature and reference of development. This article concludes by arguing for the need, now more than ever, to go beyond international development considered as rich North/poor South, and to move towards a more holistic global development — where the global South remains a key, although not exclusive, focus.
Define realism in International Relations
Relational conception of power Focus on the distribution of power - states as central agents of world politics - anarchy as a defining condition of international politics - states are rational and self-interested - principal state goals are security and survival - acquisition of power is the most rational way to achieve these goals - implies separation of domestic politics and foreign policy - inevitability of conflict/improbability of cooperation - in classical realism, much of this seems to rest on a pessimistic view of human nature
Explain hegemonic stability theory - Krasner
Relative gains - Turning HST to a realist argument - Here Krasner comes into play (working from a realist position) - Krasner says that hegemons create liberal order because they correlate with hegemons' interests - Hegemons accur because of relaist distribution of power. Hegemons then decide themselve if they want to create a liberal order or not. Eg UK in the nineteenths century and US after 1945 - Krasner is informed by a relative gains logic
Explain the theory "manufacturing as the (historical) engine of growth/development"
Relatively easy to absorb technology from abroad to generate high productivity manufacturing jobs Manufacturing jobs relatively unskilled, thus easy to shift agricultural labour into industrial production Domestic does not limit production, which can expand through exports (export led growth) Patterns of industrialisation -> deindustrialisation (implies industrialisation somewhere else)
Is globalization incompatible with democratic politics? If so, why? If not, why not?
Rodrik: When you take the nation state, democracy, and globalization into account, then you can only have two of the three So not necessarily incompatible, but in some ways Maybe ^this only goes for certain types of globalizaiton - for instance you can't have hyperglobalizaiton and nation state, but maybe imbedded (Ruggie) globalization can and would be a more preferable type of globalization
Explain 2) Companies should NOT be run in the interest of their owners - what they tell don't you
Shareholders often care the least about the long-term future of the company (unless they are so big that they cannot really sell their shares without seriously disrupting the business). Consequently, shareholders prefer corporate strategies that maximize short-term profits, usually at the cost of long-term investments. Running the company for the shareholders often reduces its long-term growth potential. Limited liability means that investors in the company will lose only what they have invested (their "shares"), should it go bank-rup. Limited liability, is what has made modern capitalism possible. During the late nineteenth and early twentieth centuries limited liability hugely accelerated capital accumulation and tecnological progress. 1980: invention of the principle of shareholder value maximization. Professional managers should be rewarded according to the amount they can give to shareholders. In order to achieve this, first profits need to be maximized by ruthless cutting costs - wage bills, investments, inventories, middle-level maangers, and so on. In order to encourage managers to behave in this way, the proportion of their compensation packages that stock options account for needs to be increased, so that they identify more with the interests of the shareholders
How to measure de-globalization? (The de-globalization of what?)
van Bergeijk (2018) - econometric model focussed on ratio of imports to gross (domestic) product But also capital flows (bank lending, portfolio investment, mergers and acquisitions, FDI, remittances, portfolio investment) and social and political forms of integration (tourism, migration, cultural exchange, treaties, IO membership etc)
Is it possible to describe the challenge of 'climate emergency' and the proposed solution of 'sustainable development' in terms of political economy dilemmas?
Can we frame it as a political economy dilemma or is its scale too complex or massive to be trivilized ot be talked about in classic politics framework term? We can talk about it in a historical sense. So if IPE is about the rise and fall of liberal order we could use the periods and include perspectives of climate. - Eg how did x period effect the climate Prison dilemma to frame som eof the problems. But at the same time it can't explain all parts of the dilemma
Session 13
Climate Emergency
Session 4b
Economic liberalism
Session 4a
Economic nationalism
What is equity lending
Equity lending (friværdi) - a whole new type of lending. So as soon as you own a house, you have access to a whole other type of finance It is easier to borrow in you morgage in Anglosaxian countries - Quite harder in DK with Realkredit
What does Hobson and Seabrooke (2007) argue?
Everyday IPE (EIPE) Contrasted with (mainstream) 'regulatory' IPE (RIPE) RIPE = top-down, about powermakers EIPE = bottom-up, powertakers This book talsk about everyday IPE bootom up. - Everyone can trade - but it is only collectively that we can change - We often individually feel traped and that we can't afford what we want "...acts by those who are subordinate within a broader power relationship but, whether through negotiation, resistance or non-resistance, either incrementally or suddenly, shape constitute and transform the political and economic environment around and beyond them' (Hobson and Seabrooke, 2007: 15-16)."
Name six different starting points/optics for thinking about IPE
states, markets, capitlism, gender, ecology, and development they don't simply correspond to distinct theoretical positions in relation to IPE. Rather, they also reflect very different ways of thinking about what IPE is, where and how we should look for it, and who are the key actors, processes and significant empirical sites in (lower case) ipe. Susan Strange prolouge and chapter 1
How does McGrew define globalization?
the widening, deepening and speeding up of worldwide interconnectedness'
Explain 18) What is good for General Motors is not necessarily good for the United States - what they tell don't you
Allowing firms the maximum degree of freedom may not even be good for the firms themselves, let alone the national economy. In fact, not all regulations are bad for business. Sometines, it is in the long-run interest of the business sector to restrict the freedom of individual firms so that they do not destroy the common pool of resources that all of them need, such as natural resources or the labour force.
What assumptions about world order do realists and liberals share and to what extent to they promulgate views of the world ipe shared by policy practitioners?
Anarchy Self-interest
What motivates you to study IPE?
Berkeley - I studies Gender and Capitalism. An anti-capitalism/marxist course with foucs on gender and minorities. I found it very very interesting - not necesarily the anti-capitalist part (here I am more like Chang, I believe), but just being critical and reflective ot the system. The first time a course really took serciously the critical approaches and not only taught it as a perspective
Session 6a
Constructivism and critical IPE
Are MNCs genuinely MULTI-national?
Chang - no
What is CPE of housing?
Comparative political economy of Housing
Explain Contemporary trade problems
Concerns about free trade': - Infant industry arguments - National Security arguments - Strategic trade arguments - Cultural protection arguments - Environmental arguments - Inequality arguments
Session 14
Conclusions and Exam Preparation
Session 12
Convergence in Developing and Emerging Economies
Explain neorealism
Cooperations is fragile because of: - Lack of trust - Logic of relative gains: A and B cooperate, both benefit, but A gains more than B; so A has gained an advantage over B. B should cease cooperation
Is economic nationalism incompatible with economic liberalism?
Core question
How does the recent period of globalization compare with the so-called 'golden age' discussed in week two?
Core question Hyberglobalisation
How did domestic politics relate to the international economy?
Core questions
Why did IPE emerge as a distinctive, self-identifying field of study in the 1970s?
Demand-side failure: The world is changing rapidly and we need some tools to address it - Oil crisis and its following financial crisis - Bretton Woods System Supply-side failure: Existing subfield/disciplines failed at explaining the changes in the world - Dysfunctionality in the existing theory functions OBS this doesn't mean that there is only IPE from 1970s and onwards - there are a lot of scholars theorizing IPE-like questions worth of studying as well - e.g. Adam Smith and Karl Marx
To which extend is "globalization" "governable"?
Depend on which perspective we see it from. From neoliberalism: No - the market will govern it. De-politicazation Form embedded liberalism and what we learned from BW - yes
Why do scholars disagree about these questions?
Depends on what they find to be the core of IPE and what we should study. Different theoretical approaches don't necessarily share the same basic assumptions - Also methodological debates between rational choice and the use of statistical methods and constructivist methods.
Name the three different market concepts Watson distinguishes between
Descriptive, analytical and formalist
What does it mean to say that (a) the economy and (b) everyday life have become 'financialised'?
Econonomy: when the majority of profit starts to be finance - when the profit returns from finance Everday life: the logic of finance and assuming risk has become a part of people's lives - Logic of finances colonize every part of everyday life
What (if anything) do constructivists add to the IPE conversation? Put another way, in what ways can constructivists claim to add value to the study of ipe?
Forces us to be critical. Can also be used in many ways and combine it with other theories
Which role does domestic politics play in IR liberalism?
Formation of state preferences Two (or multi-) level 'games' The relationship between liberal international order and democratic politics? ...
Explain generally trade in IPE
Free trade = central norm of an open liberal economic order Contested by Power politics, domestic politics, transnationalisation and societal counter-reactions (resistence and economic populism) Increasing volumes of trade = one of the major indices of globalisation Governance of trade - institutionalised multilaterally (WTO), regionally (RTAs) and bilateral (FTAs) Current turmoil: What is happening, right now?
What does Ha-Joon Chang mainly criticise?
Free-market ideology + active economic citizenship Without or active economic citizenship, we will always be the victims of people who have greater ability to make decisions, who tell us that things happen because they have to and therefore that there is nothing we can do to alter them, however unpleasant and unjust they may appear.
What does the Chicago School argue about corporations' social responsibility
Friedman and the Chicago School argued that the only sociale responsibility a company has is to use its resources to increase its profits. - Corporattions are successful when accumulating value - So OK to monopoly = against liberal market theory earlier. - Crouch trilimma: leads to states ensuring facilities for corporations against the market. That intellectual shift (neoliberalism) has served as an idealogical justification for the kinds of policies that have facilitated the rise of MNCs
Session 3b
Globalization, de-globalization and the rise of China
Explain th Polanyi understanding of the consequences of the Golden Standard
Gold Standard as the basis of a self-regulating global economic order => Requires domestic deflationary adjustments to restore GS equilibrium => Negative effects - unemployment, real wage decreases etc - felt by domestic social groups => Mobilisation of social protection sentiment => Either a) Socialist movements, trade unions, or b) Renewed nationalism If a) Socialist movements, trade unions, then => GS incompatible with democracy? If b) Renewed nationalism, then either: 1) Protectionsism => Breakdown of lib order, or 2) Imperialism => Rivalry/war
You have been asked to redesign the syllabus for this course to take full account of feminist insights. What does your new syllabus look like?
Men tend to write about men and for men We should flip theory and history, so we have theory first then history -> because the way that we talk about history is valued We need to try to recover the female knowledge that didn't have the space to exist historically in the way that the male did You have to look beyond conventional academic texts to find them Group 3: - Have theories before history - so that you can apply a feminist perspective when thinking about history. - Have a feminist approach to all of the perspectives and to have a critical standpoint on those theories were there are no feminist scholars. - Getting rid of some of the men. - Authors from the global south. - Focus on human rights - Different stanch of feminism - More critical theory Group 4 Broad guiding principles: - Regionally based sessions/classes to help see theoretical perspectives from a non-western point of view. Each session could entail different theoretical perspectives from - Session 3: add "Slavery", "gender-issues in production", What to take away: - Less emphasis on the perspectives that are expected to be "known stuff" for students of a master-level class on IR. (or at least equal emphasis, i.e. focus on the many theories that are non-western-centric) - Find replacement texts for the critical texts on the syllabus: there must be critical texts from non-western parts of the world, which question some of the same issues, e.g. Group 2 - Incorporate the question of Where are the women? In every session. Where is race relations and class relations? - Ask the question: Can any given situation change if the gender roles change? - How the historical context affect the reality of women? - Add feminism and intersectionality to the historical weeks. We will add some more post-colonial readings and take out some of the Eurocentric texts. Be more balance and more readings with gender and power. - The Theory part of the class we want to add more feminist perspectives especially in the Marxism session and the liberal session. - The second part of the syllabus is more about adding gender perspectives to each hot topic. Group 1: - Introduction to theories in the beginning of the course so it could be applied to the history of ipe and IPE e.g. the discussion of 'where are the women?' when discussing the dominant theories - ("Who Cooked Adam Smith's Dinner?") - Women in production and consumption etc. - Continued focus on making the personal political in the themes throughout the course, and the relations of capitalist productions - Focus on topics that clearly intersect on these issues e.g. migration - Greater diversity in the curriculum in terms of minority/female/non-Global North perspectives and analyses of the global political economy reflexivity is important, but contrast in the curriculum could provide avenues for discussion that are not available at the moment - Alternative studies that focus on women outside of the Global North as there are many perspectives e.g. the economic dominant role of women in South-East Asia, the Singaporean Women role in its economy, the mixed gender identities in Pacific islands, where gender role is not very divided. - Remove from curriculum: a class on IPE feminist theory
Why might such convergence be less plausible now for developing countries than was the case historically?
Historically there has been as catch up/convergence - e.g. Germany or Japan after WWII - all very quickly - but is that so now (meaning the 21st century)? The international rules are now already set up and influenced by the already developed countries - and shaped in a way that benifits them Different forms of development - eg climate change has made a need for different paths Perhaps convergence should be defined regionally - China does account for a lot of the optimistic data Rodrik text - the productivity has been high in the developed part in the world - however he argues that in time this growth will not continue and we have to see a spill-over from the production part of the economy to others but that isn't happening right now -> could be one arguement - Historically - for instance Germany - you experience convergence if you succesfully mange to transition low-productivity economies into high-productivity - so the value added by human labor is higher = industrialization - But to what extend is all developmental pathways anchored in this? - is all linked to industrialization?
Who do we often associate critical theory with?
In IPE, 'CT' often associated with Cox and the neo-Gramscian school that he inspired
Why do structures matter to the way we think about power?
In IR we ask questions about structure and agents - She is thought of as structuralist, but all Strange's solutions was agency Her critique was that there was different structures giving different forms of power from which they originate. In order to take power from hand, you need authority - there are different ways to see where power lies. Her concern: there was very little legislation and regulation of e.g. Financial markets with little check = Authority allowing for the market to gain financial power She understood the structures but the response was to give more space for agency (unlike Marxists beliving that the whole structure has to change) So pragmatically way of looking at the way the world is and how agents can change it
Explain the Gold Standard
In order to achieve exchange rate stability you fix the value of your currency in relaiton to gold. ---> E.g. In 18xx the US fixed the value of gold to xx punds. ---> So you fix you currency to gold and say that you are willing to exchange it for gold - You also let gold cross boarders - Currencies are also able to change value relative to eachother, but their value fixed to gold cannot change.
What was the idea behind the Gold Standard?
In order to have a functioning open liberal international economy, there are different kinds of activities, that are needed, and that needs to be assured by institutions - Exchange rate certainty - Capital movement. - Functioning internaitonl system of credit (key role of the City of London) So there has to be an institutional design to enable these things to happen If none of these things are ensured, then people won't trade across boarders. This is what the gold standard was all about
Main argument in Wesley W. Widmaier, 'The Social Construction of the "Impossible Trinity": The Intersubjective Bases of Monetary Cooperation'
In this article I offer a constructivist theory of international monetary relations in order to explain this shift, contrasting the effects of Keynesian and Neoclassical understandings on interests in cooperation. I argue that postwar Keynesian understand- ings, which cast monetary power as based in the authority to stabilize expectations, led states to perceive common interests in maintaining decentralized-but-legitimate guidelines. I then argue that more recent Neoclassical views, which cast monetary power as a function of capabilities, have justified reduced mutual assistance and greater recourse to austerity. From this vantage point, Neoclassical under- standings, rather than any material constraints, impede the cooperation necessary to reconcile the impossible trinity of capital mobility, full employment, and monetary stability.
Are there any downsides/dangers of taking a historical perspective?
The danger of relying on data about the past as a guide to the present and the future -> Complacent assumptions about historical patterns (the problem of induction) versus 'black swans' Understanding the real relations of power and domination behind abstract concepts -> the question of whose history? -> Back to optics
What did Keynes say about capital mobility?
Keynes: deeply worried on the role that finance would play and which consequences it would have for the domestic economy "Freedom of capital movements...assumes that it is right and desirable to have an equalization of interest rates in all parts of the world. It assumes, that is to say that if the rate of interest that promotes full-employment in Great Britain is lower than the appropriate rate in Australia, there is no reason why this should not be allowed to lead to a situation in which the whole of British savings are invested in Australia, subject only to different estimations of risk, until the equilibrium rate in Australia has been brought down to the British rate. In my view the whole management of the domestic economy depends upon being free to have the appropriate interest rate without reference to the rates prevailing in the rest of the world. Capital controls is a corollary to this."
Session 5b
Marxism and IPE
What is the nature of the tension between the market and democracy? Why does this matter for IPE?
Market: individual choices => price signals as the guiding principle Democracy: election => citizens/nations social wants as guiding principle However, there has been a narrative of complementary: - But if you look at the actual history of the market and democracy there is a much greater lack of complementarity
What does Rodrick say about whether globalization incompatible with democratic politics?
Markets and governments are complements, not substitutes (so no laissez-faire hyperglobalization) Capitalist stability and prosperity can be achieved in many different ways (so no institutional convergence) Markets require public institutions of regulation and governance Different societies will have different preferences on how this should be done Rodrick's trilemma
Session 7
Mid-term
Explain Watson's Market Concept Mk3: the market as a formalist concept
Mk2 and Mk3 continue to exist side-by-side, but with the Mk3 version largely reserved for real theoretical specialists in the field. Emerged in the middle of the twentieth century. The difference between MK2-Mk3 is the move from partial equilibrium system to a general equilibrium system. Within a partial equilibrium system the object of interst is one market for a single product. This does not take into account, however, there can be spillover effects between markets, that need to be taken into account if a more holistic understanding of market-clearing dynamics is to be developed. This is the objective of the move from a partial equilibrium to a general equilibrium frame of reference. The MK3 exists as a logical possibility within theorists' self-made abstract world but only in that form.
Drawing on Nicola Philips' chapter in Global Political Economy, how can we roughly describe the traditions of development theory?
Modernisation Underdevelopment Neoliberalism Neo-statism/Developmental state Human development
Explain 8) Capital has a nationality - what they don't tell you
Most transnational companies in fact remain national companies with international operations, rather than genuinely nation-less companies. When they have to shut down factories or cut jobs, they usually do it last at home for various political and, more importantly, economic reasons. This means that the home country appropriated the bulk of the benefits from a transnational corporation. Companies are often supported with public money, directly and indirectly. -There is an unspoken understanding that companies do have some moral obligations to their home countries because of these historical debts. By far the most important reason for home-country bias is economic - the fact that the core capabilities of a company cannot be easily taken across the border. - Most machines may be moved abroad easily, but it is much more costly to move skilled workers or managers. It is even more difficult to transplant organisational routines or business networks on to another country.
What does O'Sullivan (2019) argue about de-globalization?
Move to a multipolar world dominated by three regional clusters around Europe, China, US ... Each with distinctive approaches to economic policy, liberty, welfare, technology, society De-globalization aa regionalization
How has consumption changed? - link to Finance
Much greater possibilities for financing purchasing - Evolution of debt financing - Normalisation of borrowing - Finanzialisation, booming industry Reliance on debt financing to fuel national growth - US - remortgaging - Industry: Disincentive to restrict credit However .... - National differences Tighter regulation (EU, Basel framework)
Explain the Beijing consensus
New consensus? Allows you to state-lead the way you want the economy to develop - National autonomy ('globalization in own terms') - Innovation and experimentation - Interventionist policy toolkit - Use of state owned enterprises - Export-led growth - Departure from standard metrics for measuring economic success - Limited political liberalism
Strange: Has the US lost structural power?
No. They may have changed their mind aout how to use it, but they have not lost it. Nor, taking the four structures of power together, are they likely to do so in the foreseeable future.
Strange: Where is structural power to be found?
Not in a single structure, but in four separate distinguishable but related stractures.
What do you understand by the term "double movement" as used by Polanyi?
On the one hand there was a markatization of the market of labor and the other hand you had people fighting for exactly this You have a process of a commodification of labor and land and there is a sociatal movement against that So the first movement towards a self-regulating market and the second movement as a counter-reaction
Explain the breakdown of liberal international economic order - from 1914-1944 - that lead to the Bretton Woods
Power politics: No hegemon Hegemonic stability theory Dominant ideas: Polanyi on the self-regulating market Economic nationalism Institutions: Institutional vacuum/failure of policy imagination The Gold Standard Domestic politics: The "double movement" Deep and varied protectice counter-movements Bretton Woods was a clear attempt to "fix" a lot of this
Explain Ruggie's "impossible trinity"
Open economies were faced by an impossible trilemma. Only possible to have two of the following three policy options at any one time: - Fixed exchange rates - Free capital movement (to invest in other currency) - Independent monetary policy (domestic policy autonomy) Example - in historical order: Free capital movement + independent monetary policy = floating exchangerates Fix exchange rates + free capital movement = Gold standard Independent monetary policy + fixed exchange rates = Bretton Woods
What does Strange say about power, markets, and authority?
Power determines the relationship between authority and market. Markets cannot play a dominant role in the way in which a political economy functions unless allowed to do so by whoever wields power and possesses authority Strange believes that power does not shift between states and markets. Rather, power determines the relationship between the two.
Explain Cox's definition of critical theory as a category
Reflective on process of theorising and does not take for granted existing institutions / ideas; historical change; possibilities for change theory that reflects on the prices of theorixing itself - doesnt work with deterministic - is transperently placed within space and time
What are the main differences between liberal and realist understandings of international cooperation and why does this matter for IPE?
Relative and absolute gains
Explain 5) Assume the worst about people and you get the worst - what they don't tell you
Self-interest is a most powerful trait in most human beings. However, it's not our only drive. The world works as it does only because people are not the totally self-seeking agents that free-market economics believes them to be. We need to design an economic system that, while acknowleding that people are often selfish, exploits other human motives to the full and gets the best out of people. The likelihood is that, if we assume the worst about people, we will get the worst out of them. E.g. the need for the Human Relations School that emerged in the 1930s, which highlighted the need for good communications with, and among workers = emphasise the complexity of human motivation and suggest ways to bring the best out of workers. If we assume the worst about people, we will get the worst out of them.
Why are economics and international political economy relatively uninterested in the climate emergency?
Short term focus. Market failure
Session 8
The De-globalization of Production
Which institution was important for the rise of the liberal international economic order
The Gold Standard
Session 11
The IPE of Housing
Session 10
The Politics of Financialization
Strange: What makes up a society?
The different porportions in which they combine the different basic values: wealth, security, freedom of choice, justice Once you have a society, you have arrangement mad which provide some wealth, some security, some element of freedom of choice for the mebers or groups of them, and some element of justice. These basic calues are like how a cook can take flour, eggs, milk and fat and make different kinds of cakes, pancakes, buscuits or cookis by comining them in different ways and different proportions.
How does Watson imagine a "dethingification" of "the Market"?
The first step in this regard is to reinstate the actual decision-makers who go missing form the analysis when decision-making is instead said to rest with "the market" itself. Agency certainly takes place in economic contexts that are bounded by market institutions, and such agency will always be deeply political in its underlying orienttion.
What is a global value chian?
The sequence of activities that lead to the production of a good or service - The puzzle for firms of how to reconcile the integration of trade with the fragmentation of production - Different models/network types - Key questions (cf Thun): How to govern a GVC? Where to locate the various parts of a GVC
Can we still see economic patriotism operating in a globalized world?
Yes Trump Europe The fall of TTIP Perhaps even more after corona
Session 1b
Ways of seeing IPE: four themes and six optics
What does Watson mean with the "thingification" of "the Market"
"The market" has been turned in political speech into a thing that thinks and acts for itself. A discourse that justifies, and perhaps even mandates, the existence of multiple economic harms. A move froom the market concept understood theoretically to "the market" understood ideologically
What is 'the market' from an economic liberal perspective, and why is the market so central to both the analysis and the normative worldview of economic liberals?
"The market": an ordering principle based on efficiency and mutual benefits - and it guides decision making both in economics but also in the social way A ways of allocating ressources in a way that is efficient and in the long term also mutual beneficial The selfregulating market has taking away the legitimacy from the state as a allocater - it is only the market that can allocate ressources best -> so the market has become the valuecreator -> it is not just about distributing ressources but also creating values from them. Nationalism: State is the best way to secure the wealth and well-being of the nation. Liberalism: the market is the way where the individual relations best play out - Its is also a normative claim - that we prioritize the individual over all
How can we define a liberal internaitonal economic order?
- Open markets - Free trade - Stable international payments - (Comparisons with post-WW2 version of liberal economic order)
Explain the consumption changed through technology
- From physical, face-to-face transactions to e-commerce - Pace of change = very rapid, facilitated by technological advance - Globalization = compression of space Sissel: So technology has both changed the mode of production but also the mode of consumption
How has consumption changed? - the life course
- How we consume and borrow is strongly connected to our age - Depending on where we are in our lives, we consume, borrow, etc differently - We are supposed to borrow when we are young, because we have a lifelong income - 30 year loans However, it seems like to be the opposite today. it seems like the older generation borrows more, the younger generation borrows less. The older generation borrows more and the younger generation borrows less (NB the graph is from the US) Discussed in class: - Young peopple experience that they are rejected by the banks. Whereas their parrents are the once who have enough money to value for a loan. - So the parrents can actually afford to have multiple houses and invest and distribute, whereas the young people can't So parents borrow at old age on behalf of their childen - Job insecurity - High prices
In what ways is finance powerful?
- It is hard to imagine how to be human without finance We depend on access to credit - Those who have the capacity to finance projects an businesses also have the power to decide which projects are prioritized and not Global Souht: finace is a powerful tools - Western countries have used to maintain their power in the system. IMF-policies - tool to perpertrade power Financial actors also influence politics - Eg the massive bail-outs after the financial crisis
What did we talk about trade?
- The origins of trade - Fits with other IPE themes - The political relationships involved in trade (individuals/states/companies/markets) - The role of trade governance and the current WTO crisis - Are we seeing globalization, slowbalization or regionalization - Contemporary problems of trade
Why do we buy what we buy?
1) Economics: price elasticity 2) Manipulation of consumption: (Advertising)
Which diverse views are there on IPE?
1) What is the ipe that IPE studies? - Continuities? (e.g. international economy, capitliasm etc.) - Changes? (e.g. globalization, transnational relaitons) 2) What kind of intellectual project is IPE? - Established disciplinary toolkits (theories methods etc)? (= A subfield of IR?) - Innovation (new subfield, novel theories etc)?
What does Clift and Woll say about economic patriotism
= 'Economic choices which seek to discriminate in favour of particular social groups, firms or sectors understood by the decision-makers as insiders because of their territorial status.' Reflecting (after Crouch) the 'dilemma of neoliberal democracy' ... EP is about the prioritisation of a territorial referent object, but not necessarily 'the nation'
Explain the optic The environment in crisis undermines and transcends extant intellectual fields like IPE
= The crisis questions the ways in which we organize knowledge - The recognition that we live in the Anthropocene, and that Earth faces a series of tipping points à - Implies radical reimagination and repurposing of knowledge production ... - Especially in fields (Econ?) that struggle to conceptualise/recognise the scale of the challenge Antroposcene: We are no longer living in a situation where the environment is just a background scene - it is something we are changing through out actions
What does Watson (2017) say on the illiberal processes at the heart of liberal IPE reasoning
A central economic concept comparative economic theory was formulated at a time when the actual real world relations that the abstract example that Ricardo used was far more complicated than the sterilized model would note. There was a lot of illiberal means to liberal ends Those illiberal means are systematically overlooked. the historical detail that allowed his numerical example to resonate way back in 1817 gives rise to a much more complex story of decidedly illiberal means to ostensibly liberal ends. The normative foundations of liberal IPE, at least insofar as they are currently taught through the field's textbooks, require that these illiberal means are systematically overlooked in favour of a sanitised version of historical events that do not deserve such sympathetic treatment. The European embrace of commercial society in the eighteenth century cannot simply be divorced from the contemporaneous European embrace of the imperial economy
How can we read the 1914-1944 period through an 'IPE' lens
A change of order from an economic liberal order to a national order. Or a period of interregnum - a period without a stable hegemon - a period of uncertainty where there is no kind of settled agreements of how to organize the economy If we accept the liberal order as the norm, then this period is abnorm. - But it might be just the other way around? We might regard the liberal order as something true from the advantage point from advanced capitalist country - but it might not be so for e.g. Parts of Africa Marxist: Might also not be about periods of liberal order, but different orders within capitalism. So this might be a crisis in capitalism - essential thing for capitalism.
How did Watson position himself against Strange's States and Markets?
A market is not an actor - does not act upon us. Thats what he tries to bring into the discussions of the market in IPE Strange: relation between states and markets - false because markets don't have a will of their own like states. He is not sure that IPE has a definition of the market at all. He believes that states and markets could be identical to each other - both act upon authroity. Just has different names. They are the place in which authroity in a political sense is exercied at a certain time. So market = how political authroity is exercised on the global economy - There isn't any remarkable different in the IPE conception of the market and the state. The IPE conception of the market and the state are just receptense of political power. - That is a problem conceptualy - as if the history of markets and states are a pendulam between those two. But we can have both and lack both
Explain the theory growth without export-led industrialisation? (A new normal?)
A puzzle relating especially to sub-Saharan African and S. and SE Asian economies over past two decades Traditional explanations for underdevelopment (climate, poor governance, legacy of colonial institutions designed to extract wealth rather then generate it etc) 15 year growth spurt explained globalization, technology and longer/more complex supply chains But not accompanied by (a) significant shifts into manufacturing employment and (b) development of deeper economic infrastructure. Some evidence (Rodrik) of movement from low productivity agriculture into high productivity services ... But growth effects stifled once domestic demand met (no basis for export led growth)
Talk about the revolutionary aspect of Marx
A revolutionary project ... '[Marx's critique of capitalism] has a practical objective in mind - helping the exploited under capitalism to constitute themselves into a revolutionary political subject' (Callinicos 2016: 52) '[T]he economy is not the realm where techniques and tastes interact to produce an optimal outcome, but a domain of antagonism, domination and conflict' (Callinicos 2016: 53)
What is/explains current economic nationalist sentiment?
A societal reaction to global economic restructuring/the self-regulating market - Polanyi/double movement? A crisis of hegemony - Kindleberger/hege-monic (in)stability
How would you define IPE?
A subfield of IR, which is itself a subfield of political science? IR meets economics? Or a broader multi-disciplinary canvass? Think about these questions in relation to your two 'core subject' components: IPE and Concepts in IR
Explain 21) Big government makes people more open to change - what they don't tell you
A well-designed welfare state can actually encourage people to take chances witht heir jobs and be more, not less, open to changes. This is one reason why there is less demand for trade protectionism in Europe than in the US. Europeans know that, even if their industries shut down due to foreign competition, they will be able to protect their living standards (through unemployment benefits) and get re-trained for another job /with governmetn subsidies), whereas Americans know that losing their current jobs may mean a huge fall in their living standards and may even be the end of their productive lives. This is why the Euorpean countries with the biggest welfare states, such as Swede, Norway and Finland were able to grow faster than, or at least as fast as, the US, even during the post-1990 "American Renaissance": Insofar as it gives workers second chances, we can say that the welfare state is like a bankruptcy law for them. In the same way that bankruptcy laws encourage risk-taking by entrepreneurs, the welfare state encourages workers to be more open to change (and the resulting risks) in their attitudes. Because they know that there is going to be a second chance, people can be bolder in their initial career choices and more open to changing jobs later in their careers.
Explain hegemonic stability theory - Gilpin
Adds a perspective with MNC also projecting hegemonic status And adds that not all hegemonic states do are necesarrily good for their national business. Example US: outrun their national industries during their economic phase while at the same time housing the largest MNCs in the world - ... but the actions of a hegemon may run against some national commercial interests - Some (apparent) non-state phenomena (e.g. MNCs) are projections of hegemonic power Gilpin recognize that not all things that a hegemon does will necesarely do good for all national business - it might be so that being a hegemon an pursuing own interests will do bad for the national companies Gilpin pushes us to think about how we think about the state He is also very prepared to bring in a range of other important actors - eg multinaitonal actors - and see them as a projection of hegemonic power So hegemonic stability is a lot more variated than it first appears
What can generally be said about feminist economists?
Advances feminist inquiry into economic issues affecting the lives of children, women, and men Examines the relationship between gender and power in the economy and the construction and legitimization of economic knowledge Extends feminist theoretical, historical, and methodological contributions to economics and the economy Offers feminist insights into the underlying constructs of the economics discipline and into the historical, political, and cultural context of economic knowledge Procides a feminist rethinking of theory and policy in diverse fields, including those not directly related to gender Stimulates discussions among diverse scholars worldwide and from a broad spectrum of intellectual traditions, welcoming cross-disciplinary and corss-country perspectives, especially from countries in the South
Explain 11) Africa is not destined for underdevelopment - what the don't tell you
Africa has NOT always been stagnatn. In the 1960s and 70s it actually posted a decent growth performance. Moreover, all the structural handicaps that are supposed to hold back Africa have been present in most of today's rich countries - poor climate (arctic and tropical), landlockedness, abundant natural resources, ethninc divisions, poor institutions and bad culture. The real cause of African stagnation in the last three decades is free-market policies that the continent has been compeeled to implement during the period. So, the so-called structural factors are really scapegoats wheeled out by free-market economists. Seeing their facoured policies failing to produce good outcomes, they had to find other explanations for Africa's stagnation. Unlike history or geography policies can be changed. Africa is not destined for underdevelopment.
Explain 11) Africa is not destined for underdevelopment - what the tell you
Africa is destined for udnerdevelopment. It has a poor climate, which leads to serious tropical disease problems. it has lousy geography, with many of its countries landlocked and surrounded by countries whose small markets offer limited export opportunities and whose violent conflicts spill into neighbouring countries. It has too many natural resources, which make its people lazy, corrupt and conflict-prone. African nations are ethnically divided, which renders them difficult to manage and more likely to expereince violent condlict. They have poor-quality institutions that do not protect investors well. Their culture is bad - people do not work hard, they do not save and they cannot cooperate with each other. All these structural handicaps explain why, unlike other regions of the world, the continent has failed to grow even after it has implemented significant market liberalization sinve the 1980s. There is no other way forward for Africa than being propped up by foreign aid.
Explain Watson's Market Concept as explained in the textbooks
Almostt without exception, the analytical market concept is what the beginning student is first asked to lean. The demand-an-supply model provides economics students with the language giving them rhetorical power, both within economics and beyond. Watson's approach in this book is the exact opposite of that of these path-breaking textbook writers. It is to open up the discussion about the market concept rather than to close it down; it is about restoring the historical account of the origins of vaious market concepts rather than suppessing it.
What have we generally found interesetning when talking about development and why is it interesting to IPE?
An alternative way of thinking of IPE - can produce different knowledge about ipe Development is a concept that makes the world global in the sense that by thinking about development we probably have to acknowledge thant eventhough we are empirically interested in the developed part of the world - to fully understand the ipe of the global North, we need to also understand the ipe of the global South Whose ipe/IPE? - Who are we interested in and who benifits from it If the main question of IPE has been the rise, amintenance and decline of liberal international economic orders or the like, then we tend to assume that the structures of the economy should be viewed through the lenses of capitalism and global North. - But by definition, this order also needs to interact with other orders in the world - Parts of the world not included in building these orders, are still implicated by them Exploring the meaning(s) of 'development' and its status as a concept in IPE 'Development' and this course - An alternative 'optic' for thinking about ipe/doing IPE - The central concern of the 'Global South' group in the mid-term? - A reminder that the ipe doesn't just consist of the developed/OECD world of the 'Global North' - And thus that the field of IPE should be truly global even when it focuses on core/Northern/developed economies - Whose ipe/IPE? ... How have understandings of development changed and why? Are developing economies catching up with developed economies?
What are the main theoretical tenets of realist International Relations scholarship?
Anarchy as the principle of the internaitonal system States that try to maximize their security - they do that by maximizing power relative to ohers System of self help Gilpin: somebody who works with a realist starting point, but tries to understand the period that is very strong for liberal using a rational lense - and said that we need to look at other actors than only states States are still in control - they can just pull out of institutions when they don't want to. In that view you can say that realism can explain globalism, cause in that period of time states intentions just alligned. The globalization period is long, but it also look like it is coming to an end. - States are beginning to see, that relative gains are starting to kick in
Explain hegemonic stability theory - Kindleberger
Answers the question: If realists and neorealists are right, why then do we find periods in the history of the global economy where liberalism seems to prevail? Kindleberger - absolute gains (so tend to have a liberalism approach): A state power can provide economic order - so the Hegemon provides 'collective good' of liberalism = absolute gains For Kindleberger the collective good is liberalism - that is what to desire He would normativly favor Kindleberger is informed by an absolute gains logic - but it needs to be ensured by a hegemon
Main argument from Shaun Breslin 'Global Reordering and China's Rise: Adoption, Adaptation and Reform'
As a result, we might expect there to be relatively fertile ground for the promotion of an alternative set of norms and policy initiatives that challenge existing dominant paradigms; and to some extent that has been the case. This is especially true for those looking for an economic alternative (or perhaps more often, supplement) to dealing with Europe, North America, and the existing international financial institutions. It is also true for those who want to be left to organise their own political systems as they see fit, free from outside influence and interference
What is the liberal view of the state and politics? Why do we have the state?
Basic. It is there to make sure that the market function - not more than that. Ensure "the God given rights" that Locke talked about, Ensure basic liberal rights The state is the creator and defender of the market If you take Locke as a starting point: We need states to protect basic human rights: life, liberaty and property There are certian things that the state exist to uphold. Basic eed of life, ensure internal and external security, uphold private property, In Locke's political theory government exists to protect fundamental rights to 'life, liberty and property' Implies that the state should enforce property rights, ensure respect for contracts, provide rules for the operation of a market order (through the rule of law). (Whose liberalism?) The tension between liberals emphasising (a) market freedom and property rights (→ real inequalities?) and (b) generalised and inclusive systems of rights, incl. political rights (→ equality)
Explain 21) Big government makes people more open to change - what they tell you
Big government is bad for the economy. The welfare state has emerged because of the desire by the poor to have an easier life by making the rich pay for the costs of adjustments that are constantly demanded by market forces. When the rich are taxed to pay for unemployment insurance, healthcare and other welfare measures for the poor, this not only makes the poor lazy and deprives the rich of an incentive to create wealth, it also makes the economy less dynamic. With the protection of the welfare state, people do not feel the need to adjust to new market realities, thereby delaying the changes in their professions and working patterns that are needed for dynamic economic adjustments. We don't even have to invoke the failures of the communist economies. Just look at the lack of dynamism in Europe with its bloated welfare state, compared ot the vitality of the US
What is economic nationalism?
Both a tendency in economic policy ad discourse, but also an important tradition in economic thinking Juxtaposed to economic liberalism Claim: perhaps ipe foes through phases of economic liberalism and nationalism - Is that a valid juxtaposition? Economic nationalism is often refered to in contrast to other things, however there is a tradition of economic nationalist thoughy
Analyse teh Bretton Woods system by using the political variables
Bretton Woods 1944-1971: Power politics: Hegemonic stability theory US leadership Dominant ideas: Polanyi on the self-regulating market "Embedded liberalism" Domestic politics: The "double movement" Policy autonomy/compliance/democratic capitalism Institutions: Fixed exchange regime Rule-bound solution to impossible trinity
Describe Gramsci and his main argument
Capitalism has maintained itself because of hegemony. Therefore the way to overthrow capitalism does not become by violent overthrowing the state bu through developing your own intellectual and moral claims which contest the dominant capitalist ideas => shows the role that theory has to play
Explain different authros contributions
Chang ('Thing 3') and Philips provide general introductions of the issue of economic development in IPE. The reviews by The Economist and Rodrik question the influential convergence thesis, while the Horner and Hulme special issue provides empirical analysis of global development.
What financial activities were linked to the post-2008 crisis? Is finance inherently destructive?
Chang - make finance less efficient
What implications does a focus on the environment have for IPE as a scholarly field/how we think about the ipe?
Climate change changes the perspective of the entire growth-imperative that has been underlying the entire smalle case ipe and the entire scholarship - If true, we have to rethink almost every concepts tuch upon so far - Solution: internaitonal corporation and more regulation of the market Time horizons - thinking long term and not short term - The temporality horizon of climate change does not match the ones in political practices - Requires long run perspectives - which politics doesn't necesarily allow Sustainability needs to become a meassure
What can we, as students of IPE, learn from the decline of Britain as an international power?
Core question
What does neoliberalism share with classical liberalism and how is it different?
Core question
What forms of state and international institutional order are compatible with neoliberal principles?
Core question
What is realist IPE? How does it differ from realism in IR? Is it an IR version of economic nationalism?
Core question
What relevance does hegemonic stability theory have to the modern economy? Is the presence of a hegemon a necessary condition of an open liberal international economic order?
Core question
What traces of the nineteenth century economic order can we still see in the global economy today?
Core question
A mixture of international politics and international economics. Is there more to IPE (as a field of study) than this formulation?
Core question 'INTERNATIONAL Political Economy analysis is concerned with the interaction of political and economic processes ON A GLOBAL SCALE: the distribution of power and wealth between different groups and individuals, and the processes that create, sustain and transform these relationships over time.' But there are various different diffinitions on IPE. For instance also "The study of power and wealth in the international system" or "The study of open economy politics" or "The study of global capitalism" Economy = social constructed system = political => So the study of social systems and which political thought, practices, ideal etc. lies behind it. Political = power. => So also tracing the power generated by the economy The political system of economy is international in the sense that economy to day (and since slavery and industrialism) is a big web across the world. - One cannot understand the economy without keeping looking at appropriation etc. IPE emerged as a subfield from IR. But economy has always been political
Does the emergence of Chinese power in the global political economy suggest that we are entering a new phase of (post-liberal) hegemony?
Core question A challenge to or integration within the liberal international order? - Both carry implications for the distribution of power globally, especially in relation to US hegemony Institutional innovation - E.g. AIIB - system conforming - Pursuit of Chinese interests and values within existing framework? - A different type of multilateralism? The consequences of Chinese financial power (investments and financial interactions undertaken by the state or Chinese commercial actors) - Strengthening position of Chinese state enterprises as key actors in the global economy - Reorientation of global economic geography around Chinese trade and investment priorities - Chinese model of state capitalism as a developmental model for emulation - an alternative to the 'Washington consensus
How important has Strange been for the field of IPE?
Credited her for being the women single-handedly creating the field of IPE - Normally IR is the whit in an egg and IPE the yoke - Strange said it to be the exact other way around "Who benifits" - he main foucs Ontologist revlotion - change what the field should be about - so a focus on how things areShe is more interested in finding different ways of understanding it "as it is" - so no clear methology. Perhaps if she was alive today she would belong more to the critical theorists
Is embedded liberalism useful as a more general concept for IPE?
Criticism: He is perhap more characterizing a prizice moment in time. - however can we use it in other contexts? It is still useful because the tension between the domestic and the economy is ever present
Explain 10) The US does not have the highest living standard in the world - what they tell you
Despite its recent economic problems, the US still enjoys the highest standard of living in the world. At market exchange rates, there are several countries that have a higher per capita income than the US. However, if we consider the fact that the same dollar can buy more goods and services in the US than in other rich countries, the US turns out to have the highest living standard in the world, barring the mini-city-state of Luxembourg. This is why other countries seek to emulate the US, illustrating the superiority of the free-market system, which the US most closely (if not perfectly) represents
Explain neoliberalism
Development = achievement of human freedom through the market. Development associated with establishment of institutional props of the free market (e.g. property rights) and opening of economies (cf 'Washington Consensus')
Does it make sense to think about development in terms of (a) economic variables and (b) country to country comparisons? What alternatives can you think of?
Does it make sense to view the world through economic metrics and country-to-country comparison? Economic variables make sense to a limited extend. Other variables could be health, living conditions, etc If you look at economic variables, you also need to be aware of which parts you look like. For instance GDP/capita scores US high, but there is such a great inequality. Or Saudi Arabia which scores very high on GDP/capita. We should be thinking on a range of non-economic variables. However, it is also hard not to look at economics - to isolate non-economic variable risks factoring out the economic perspectives.
What is Polanyi often used to explain?
Domestic politics "The double movement" Compliance Polanyi is often used to (a) explain the rise and fall of the C19 order (b) Identify key features of the post-1945 order [session 3(a)] and (c) understand central aspects of current ipe. Polanyi is not a marxist, but recognize that there are cycles of crises of market orders For a liberal order to exist, you need a domestic order that allows this - Polanyi helps us think about domestic compliance and when this is sustainable Domestic compliance is more difficult than domestic politics are democratic
To what extent does the rise and fall of international economic orders follow an identifiably cyclical pattern?
Double movement - so cyclical between the two However because of the non-political variable "technology" that facilitates global orders. The period with glboalization and rising liberal order can be characterised as hypoerglobalization.
Strange: What is the problem between the field of economics and the field of political studies?
Each discipline tends to take the other for granted. Markets are studied in economics on the assumption that they are not going to be disrupted by war, revolution or other civil disorders. Government and the panaoply of law and the adminsitraiton of justice are taken for granted. Politics assumes that the economy will continue to function reasonably smoothly - whether it is a command eocnomy run according to the decisions of an army of bureaucrats or a market eocnomy reflecting the multiple decisions taken by prudent and profit-maximizing producers and canny consumers.
Explain Helleiner's distinction between economic liberalism and economic nationalism
Economic liberalism: Laissez-faire cosmopolianism 1) Individuals (Producers, consumers) make up 2) THE MARKET which through equilibrium, welfare maximisation make up 3) Humanity Referent object: Market Economic nationalism: Communitarian-ism 1) Indivuals (Citizens, members of the nation) make up 2) THE NATION which thorugh optimising the national interest make up 3) Humanity Referent object: Nation
What are the major theoretical schisms in IPE?
Economic nationalism Economic liberalism Marxism Constructivism Critical IPE Feminist IPE
Watson: Why is it a problem that economists tend to believe they have monopoly of being the once knowing something about the economy?
Economics have developed clever models that don't enage with the one thing they should talk about - the economy, the market - they don't talk about. If we look at what they di/are interested in are processes of decision making. Not the study of how we navigate the economy in everyday life - but the essens of economy decision making. - so an ideal type removed from the practical use It has become only about choice-puzzles - adn not how we navigate empirical everyday economic practices.
Session 6b
Feminist IPE
Explain the expression "the personal is political"
Feminist scholars tries to dismantle and question the standard liberal understanding of the division of public and private as seperate activities. There is a part of politics in the private sphere and vice versa This division is false: the personal is political
Explain Strange's arguments about power and finance within IPE
Finance is one of the key-elements of a structure of lower case ipe. Finance as a structural problem Had an intepication on the way the circulation of financial products where necessary to understand how the world worked Financialization like casino - however with ifnance we are in it whether we want it or not Strange: financial dominance is one source of structural power - Along with Security, Production and Knowledge structures - 'Casino capitalism' - The great difference between an ordinary casino which you can go into or stay away from, and the global casino of high finance, is that in the latter all of us are involuntarily engaged in the day's play' (Susan Strange Casino Capitalism, Blackwell, 1986: 2)
When is her States and Markets written?
First published in 1988 Second edition in 1994 tates and Markets was written during a period that saw thr apparent decline of the state and the rise of markets in the form of global capitalism. It was a time when many governments and politicians appeared to compete with one another by offerent "business firendly" policies. As Margaret Thatcher explained, there is no alternative.
Explain the institutional set-up of the Bretton Woods
Fixed (pegged) exchange rate regime: US dollar = reserve currency fixed to gold; all other currencies committed to +/- 1% band of parity to US dollar Most internaitonal tranactions denominated in USD A rule based international system that does not prevent domestic regulation intervening in the domestic economy Differences between the gold standard and the Bretton Woods system are as follows: - Bretton woods is a system under which the currencies are pegged with dollar whereas under the gold standard the currencies are pegged to gold. - The gold standard is a floating exchange rate system, whereas, the Bretton woods system was different because it was a fixed exchange rate system. Similarities between the gold standard and the Bretton Woods system are as follows: Both the exchange rate systems were maintained and supported by major global powers across the world. Both the systems worked for the achievement of common objectives such as a stable exchange rate system, promote trade at the international level, and others
Are less developed economies destined to catch up with developed economies?
General economic theories would perhaps see countries as destined to catch up, but they take the power dynamics for granted - both soft and hard power - An advert for doing political economy Perhaps now where more and more states starts to do interventionist economies, it might start to happen again We don't yet know whether COVID in the future will be looked upon as a critical juncture - might create some policy recommendations allowing for states to engage actively in their economies to govern markets in a way familiar with Japanese and German economies in the 19s
Explain 12) Governments can pick winners - what they tell you
Governments do not have the necessary information and expertise to make informed business decisions and "pick winners" through industrial policy. If anything, government decision-makers are likely to pick some spectacular losers, given that they are motivated by power rather than profit and that they do not have to bear the financial consequences of their decisions. Especially if government tries to go against market logic and promote industries that go beyond a country's given resources and competences, teh results are disastrous, as proven by the "white elephant" projects that litter deceloping countries.
Explain 19) Despite the fall of communism, we are still living in planned economies - what they don't tell you
Governmetns in capitalist economies practise planning too, albeit on a more limited basis than under communist central planning. More importantly, modern capitalist economies are made up of large, hierarchical corporations that plan their activities in grat detail, even across national borders. Therefore, the questions is not whether you plan or not. It is about planning the right things at the right levels. Without markets we will end up with the inefficiencies of the Soviet system. However, thinking that we can live by the market alone is like believing that we can live by eating only salt, because salt is vital for our survival.
Watson: Will economists read this book?
Hope they might find things interesting in it. But they won't look at it as something written from them but as something written from outside their field He doesn't try to call them out or dismiss their work - but to make them think about how their own subject field has developed. Challenging the linear idea of knowledge development in their field (in the past we did it bad, then we learned to do it better, and now we do it really good)
What does Schwartz and Seabrooke discuss about CPE of housing?
Housing finance systems are not politically neutral The financial crisis came from housing - and from inventing value that wasn't there Discuss whether housing should be public or private How a housing market is in a country affects it taxation, public spending etc. 'housing finance systems can connect people to global capital flows and interest rates in a more direct way than tax systems, public debt or employment, But the degree of commodificaton and stratification this connection produces varies by the level of owner occupancy and the structure of housing finance markets ... Housing creates immediate and different partisan and policy effects over tax resistance, preferences for cash in hand over social services, orientations towards inflation and partisan preferences for the party that best protects property or property values regardless of which party that happens to be ' (Schwartz and Seabrooke, 2008, pp. 242-3)
What is housing in any given society, how do people think about it, and who owns it?
Housing may be understood as a consumption good, as a social right, or as an investment vehicle. Ownership may be understood as private, public, communal, cooperative, or familial. Tracing how commodified housing systems are provides some insight into these dynamics.
Explain the rise and and fall of the WTO
ITO (agreed 1948, not ratified by US congress - supposed to be the third element of Bretton Woods system) Instead GATT 1947 (a club regime, no IO, consensus norm, one-state-one-vote) Principles: Non-discrimination and most favoured nation principle (Article i and iii): exceptions: negotiated terms, development 'protections', anti-dumping/subsidies, general exceptions (security, protections against threats, incl. certain environmental/food safety), agriculture, energy excepted. Kennedy Round (1967): tariff reductions; Tokyo round (1979): NTBs; Uruguay round (1986-93): services, investment and TRIPs, establishment of WTO; WTO established (1994) - Expanded issue coverage, new sectors (services, IPRs) stronger enforcement (appellate body), formal IO Seattle meeting (1999) protests & failure to establish consensus Doha round (2001 -): impasse and deadlock The financial crisis (2008) The bilateral turn (2011 -) US retreat and trade wars 2016 The current WTO crisis
Explain Abdelal et al's paths of constructivism: Uncertainty
If I don't have constructions of stability via governing ideas, instituions, and norm, I am uncertain how I should act in the world, because peopler are agents with unclear insterests. Roots in Keynes and Knight The world is not unambiguously material and populated by agents with clear interests Uncertainty - past is an unrelaible guide to future possibilities Requires construction of stability via governing ideas, institutions, norms
Explain 3) Most people in rich countries are paid more than they should be - what they tell you
In a market economy, people are reqarded according to their productivity. Blleding-heart liberals may find it difficult to accept that a Swede gets paod fifty tomes what an Indian gets paid for the same job, but that is a reflection of their relative productivities. Attempts to reduce these differences artificially - for example, by introducing minimum wage legislation in India - lead only to unjust and inefficient rewarding of individual taletns and efforts. Only a free labour market can reward people efficiently and justly
What is the distinction between upper case IPE and lower case ipe?
In this course we have worked with the distinction found in Cohen 2008: IPE (upper case) - the intellectual academic field that studies ipe ipe (lower case) - the real world of international political economy that we study
Isn't Hayek's signal system selfish in the sense that it only values benifits? Where is the alturism?
It is not there. Both alturism and solidarity are strong instincts hqich guided man in the small group we were serving = known other persons = when his efforts were directed to the needs of familiar people. We have grown as rich as we are because we ahve replaced this by a system where we no longer work for the known needs og know people but where our effort is completely guided by price signals. We will benifit our fellow man most if we are guided solely by the striving for gain
Is mainstream IPE = liberal IPE?
It might be fair to say that liberalism in terms of IPE is the mainstream type eohane = one of the founding fathers of liberalism. Argues strongly for an institutional liberalism as well There is a main discourse of focus areas - which spills over in the analytical tool kit - which spills over in the results we find - The analytical tool kit by eg Keohane is also very normative The dominant current of 'American IPE'? - recall week 1 discussions 'Open Economy Politics'/the International Organization (IO) school Articulated by key proponents such as Keohane (1990) (see Cohen 2008 and O'Brien & Williams 2016) Commensurate with the norms of mainstream US political science (nb 'KKV') A powerful analytical toolkit, plus ... A perspective that informs and justifies the normative and institutional landscape of the present global order? (cf Keohane 1990)
What is structural power?
It reflects actors' ability, whether they wished it or not, to shape evvents directly and indirectly. Markets and authroity exert structural power in what they do, but equally in what they decide not to do. There are different contexts in which structurla power operates and a hirarchy among these structures. The most important of these spheres, Stange believes, are the security, production, finance and knowledge structures. Secondary important structures are transport, trade, energhy, and welfare Markets are integreated, politics affects economic, economics affects politics, and structural power has this uncanny ability to travel between different contexts.
Explain the graph showing countries share og global GDP through time
It shows how development is something we need to think of in a deeply historical perspective When we have talked about IPE in this course, we ahve tended to look at the development from around 19th cetnury and forward => which is the story about the development of a specfic region of the world - the global North - And more recently the rise of China
Describe the two scenarios from the mid-term
JOE is 62 years old. He lives in Dayton, Ohio, the city where he was born and grew up. He worked at General Motors' Island Plant in Dayton for over 30 years until the plant, which manufactured automotive parts, shut in 2008. GM's plant in Dayton first opened in 1921. Indeed Joe's father, a former GI, had worked in the GM plant since the end of World War II and Joe's son had also been employed on the assembly line. Neither Joe nor his son could find employment with GM after 2008. Joe had worked his way up at GM from the assembly line and was a skilled technician, earning an annual salary of $42,000 when the plant closed. He eventually got a job at the local Walmart, where he now works as an order filler earning a basic annual salary of $38,000. The average annual salary in the US is currently $56,000. A lifelong Democrat, Joe voted for Donald Trump in 2016. If he votes this year, Joe will probably cast his ballot for Trump again BOPHA is 22 years old. She was born in a provincial village about two hours from Phnom Penh (Cambodia's capital city). Her extended family still lives in the village, but for two years she has been working in a garment factory on the outskirts of Phnom Penh making clothes for H&M. Bopha was barely educated beyond primary level, but hopes that her salary can help to pay the school fees for her nephews and nieces back home. She typically works a 10-hour day, six days per week and earns between $190 and $220 per month, depending on overtime. She rents a one room apartment, about 30 minutes walk from the factory, for about $30 per month. Various international bodies regard the appropriate living wage in Cambodia to be somewhere between $400 and $480 per month. International observers did not consider the 2018 Cambodian election to be competitive. Bopha, like most who voted, cast her ballot for the ruling Cambodian People's Party.
Name the three main understandings found by Widmaier
Keynesian Understandings: Neoclassical "Keynesian" Understandings: Classical Understandings: For all three logics differ in monetary understandings, culture/interests, and policy behaviours
Is it possible to make sense of the rise of China using the standard conceptual toolkit of IPE?
Kindelberg: power politics, dominant ideas, domestic politics, institutions Rodrik trilemma - maybe because democracy is not a value, they succeed in combining national control and globalization
Explain different variables in IPE
Kindleberger Political variables -Power politics -Dominant ideas -Institutions -Domestic politics 'Non-political' variables -Markets -Technology
Explain the knowledge structure
Knowledge is power an whoever is able to develop or acquire and to deny the access of others to a kind of knowledge respected and sought by others; and whoever can control the channels by which it is communicated to those given access to it, will exercise a very special kind of structural power. Today the knowledge most sought after knowledge for the acquisition of relational power and to reinforce other kinds of structural power (i.e. in security matters, in production and in finance) is technology. Technology = open doors to both relational and structural power.
Explain Arundels underlying drivers for housing inequality
Labor market driver + housing market drivers + state drivers => Intermediary processes => HOUSING WEALTH POLIRAZATION Labor market driver: 1) Increasing polarization 2) Employment insecurity Housing market drivers: 1) Rising house prices 2) Volatility & heterogeneity 3) Mortgage reorientation State drivers: 1) Policies favouring housing and labour market insiders Intermediary processes: 1) Declining homeownership access 2) Rising housing values for market insiders 3) Concentration of stock and landlordism "Taken together, these underlying drivers have promoted significant trends in growing housing wealth inequality through processes of reduced access onto the homeownership market for many, especially young first-time-buyers, continued rising property values of market insiders and a concentration of the housing stock. While these processes have tended to be most pronounced in Anglo-Saxon liberal contexts, the literature points to common trajectories across many countries"
To what extent is it accurate to associate the rise to prominence of MNCs with the declining power of states in the international system?
Liberal perspective: the market should be allocating goods - so it is natural that MNCs gain power Realist perspective: MNC can be seen as an extention of national interest. Eventhough they have broken down production chains, they still have headquarters and pay taxes in specific countries. So the MNC can be seen as a national project.
Explain the contexts of Bretton Woods - the big picture
Liberalism: - The eclipse of mercantilism as economic theory/raison d'etat (from C18) - Liberal trade reforms/policy shifts (1848 Repeal of the Corn Laws; web of trade agreements (Cobden-Chevalier Treaty, UK-France 1860), Zollverein customs union from 1830s) - Gold Standard - globalised in the 1870s 'Globalisation': - Late C19/early C20 - global division of labour; Ricardian specialisation (liberal) - Rapid growth of imperial trade until 1914 (non-liberal?) Lessons of inter-war collapse: - Rebooting the Gold Standard doesn't work - political costs of high unemployment - The complex interplay of crisis-protectionism-war - The dangers of freely mobile capital - Outright policy errors: Smoot-Hawley Act (1930) - Failure of hegemony Key intellectual and policy tools: - Reciprocal Trade Agreements Act (1934) introduces non-discriminatory 'most favoured nation' principle (see session 8); basis for negotiation by US of bliateral trade deals - Keynes's General Theory (1936); New Deal economic policy (1933-36) - justifies the role of the state in economic management - Atlantic Charter (1941) - the end of the UK's imperial trade system; replaced by liberal internationalism
Do societies always react against the rise of the 'self-regulating market'?
Maybe not now with "the Market" ideology and the thingification => depoliticazation
What is a global wealth chain?
Means to maximise revenue through the avoidance of accountability (tax, regulation legislation) "In the wake of high-profile examples of tax avoidance by firms like Google, Apple and Starbucks, critics have charged that much of the profitability of these firms is related to their management of Global Wealth Chains, rather than solely their management of global production processes through Global Value Chains "(Sharman 2017: 32)
What are the two main theories in classical trade history
Mercantilism vs Liberalism
Explain the logic in the Neoclassical "Keynesian" understandings
Monetary understandings: Expectations are lagged reflections of fundamentals, unstable in short run, accurate in long run Culture/interests: Lockean Rivalry: Constitute interests in short-run cooperation, but market efficiency in the long run eliminates need for permanent guidelines Policy behaviours: Intermittent Activism: State agents act to counter short-run monetary shocks and disturbances
Equality of opportunity may not be fair - what they don't tell you
Of course, individuals should be reqarded for better perfomance, but the question is whether they are actually competing under the same conditions as their competitors. If a child does not perform well in school because he is hungry and cannot concentrate in class, it cannot be said that the child does not do well because he is inherently less capable. Fair competition can be achieved only when the child is given enough food - at home through family income support and at school through a free school meals programme. Unless there is some equality of outcome (i.e. the income of all the parents are above a certain minimum threshold, allowing their children not to go hungry), equal opportunities (i.e. free schooling) are not truly meaningful.
Name different strands of IPE work claiming to be Marxist
Note that there are several strands of work in IPE (and cognate fields) - claiming inspiration from Marxism, for example (not exhaustive): 1) Marxist theories of imperialism 2) Neo-Gramscian IPE (see Talani 2016) 3) Dependency theory (Gunder Frank) 4) World systems theory (Wallerstein) 5) Regulation theory/Regulation School (Aglietta è Jessop) --- One mode of production, many modes of regulation --- Accumulation regimes - state form - hegemonic projects 6) 'Open Marxism' (cf Burnham on the supplementary list)
To what extent can the breakdown of liberal economic order in the first half of the twentieth century be attributed to failings or deficiencies in the domains of power politics and institutions?
Power politics Institutions
Explain 15) People in poor countries are more entrepreneurial than people in rich countries - what they dont' tell you
People who live in poor countries have to be very entrepreneurial even just to survive. What makes the poor countries poor is not the absence of entrepreneurial energy at the personal level, but the absence of productive technologies and developed social orgnaizations, especially modern firms. What really makes the rich countries rich is their ability to channel the individual entrepreneurial energy into collective entrepreneurship. Unless we reject the myth of heroic individual entrepreneurs and help them build institutions and organizations of collective entrepreneurship, we will never see the poor countries grow out of poverty on a sustainable basis.
qHow, if at all, can IPE theories that we have studied on this course shed light on these dilemmas?
Perhaps more the themes of IPE For instance when studying climate change we have to look at our modes of production and production as such- over production and over consumption IPE can explain this and how compitition make people produce cheaper and sell for more
What is phanton FDI?
Phantom FDI: the movement of money across boarders which isnøt connected to any porductive activity and largely connected to MNC's avoiding taxes - We see a rise in this during the years the distinction between Global Value Chains and Global Wealth Chains
What does a liberal international economic order need?
Pre-WW2: 1) A dominant (hegemonic) State: UK 2) A permissive security structure: Balance of power 3) Facilitating institutions: Gold Standard 4) Domestic compliance: Gold Standard 5) Dominant ideas: Liberalism 6)Norms: Free trade End-WW2: Missing all six After WW2: A dominant (hegemonic) State: US A permissive security structure: Cold War Facilitating institutions: Fixed exchange rate regime; BW institutions (esp IMF, IBRD) Domestic compliance: Embedded liberalism Dominant ideas: Liberalism/Keynesianism Norms: Maximise trade, but preserve capitalist order
Which binaries are especially important in feminist IR scholarship?
Private >< Public Non-politics >< Politics Private life >< Public life Household/domestic care >< World of work/the economy Consumption >< wealth - Gendered division of labour between the public and the private - To what extent does the maintenance of the public sphere rely upon relations of domination in the private sphere? - Relationship to (forms of) capitalism? - How we think about the economy and gendered practices within markets
Name Keohane's three types of liberalism
Republic liberalism: - Kantian idea - Emanuel Kant - A variant of modern peace theory - The root to peace and prosperity is to have state of similar types - Peace/prosperity where states are of a certain constitutional type Commercial liberalism: - Peace and prosperity are to be expected where the volume of trade and exchange is more likely - International economic exchange promotes peace/prosperity Regulatory liberalism: - Peace and prosperity occurs where you have a network of institutions that stabilise the international exchange - Institutions, rules, norms, law to stabilise exchange and provide conditions for peace/prosperity
Explain the history of financialization
Restrictions on the movement of capital across borders (capital controls) - orthodoxy in 1944; heresy by the mid 1990s Fundamental to 'embedded liberalism' (session 3b) - IMF Articles of Agreement (1945) - EEC Treaty - Treaty of Rome (1957) - OECD Code of Liberalization of Capital Movements (1961) Capital controls responsible for low number of banking crises, 1945-70? (implies lowering of systemic risk) From 1960s ... - Rise of Eurodollars ($ deposits held and traded outside US) - Rise of mobile/speculative capital - Growth of international financial markets - Collapse of Bretton Woods Removal of capital controls (73-74: US, Canada, Germany; Switzerland; 79 - UK) 1988 European Council Directive, obliges EC member-states to remove restrictions on capital mobility 1989 amendment to OECD code - members should liberalise capital movement By 1990s - informal encouragement from the IMF
Name the four sources of structural power
Security, production, finance, and knowledge structures Thus, structural power lies with those in a position to exercise control over people's security, especially from violence. It lies also with those able to decide and control the manner or mode of production of goods and services for survival. Thridly, it lies - at least in all advanced economies - with those able to control the supply and distribution of cridit. Fourthely and lastly, structural power can be exercised by those who possess knowledge, who can wholly or partially limit or dicde the terms of access to it.
Explain 2) Companies should NOT be run in the interest of their owners - what they tell you
Shareholders own companies. Therefore, companies should be run in their interests. It is not simply a moral argument. THe shareholders are not guaranteed any fixed pauments, unlike the employees (who have fixed wages), the suppliers (who are paid specific prices), the lending banks (who get paod fixed interest rates), and other involved in the business. Shareholders' incomes vart according to the company's performance, giving them the gratest incentive to ensure the company performs well. If the company goes bankrupt, the shareholders lose everything, whereas other "stakeholders" get at least something. THus, shareholders bear the risk that others involved in the company do not, incentivizing them to maximize comany performance. When you run a company for the shareholders, its profut (what is left after making all fixed payments) is macimized, which also maximized its social contribution
Explain 14) US managers are over-priced - what they tell you
Somepeople are paid a lot more than others. Especially in the US; companies pay their top managers what some people ocnsider to be obscene amounts Given that the pool of talent is limited, you simply have to pay large sums of money if you are to attract the best talents. However unjust these levels of compensation may appear, we should not engage in acts of envy and spite and try to artificially suppress them. Such attempts would be simply counterproductive.
How do liberals conceptualise international relations?
States as primary actors - but start the analysis by looking at individuals and how they make collective actions - eg through the states, but also through other intstitutions The state is itself a sollution of collection action The logic of collective action Absolut gains + plus sum logic Interdependens Reducing transaction cost There is possibility for progress -idea of development. - Unlike realism and zerosum-game
Can states control markets?
States do have important instruments of control: - Quotas - Subsidies - Currency - Administrative regulations - Voluntary export restraints Perhaps a lot more agency here than in other areas of IPE? "States do not trade, firms do" (Strange). Trade is between private actors. - But to gain power in trade, you need power from the authority. So in that regard, states can control the amount of agency they give the market. Importance of production, technology, transport, finance, and market regulations (approvals, certification)
Describe briefly the different contributions of Susan Strange. Matthew Watson, and Ha-Joon Chang
Strange's States and Markets (especially the prologue and the opening chapter) follow through the logic of her seminal 1970 piece on the required reading, while setting up a very distinctive way of looking at IPE in terms of four types of 'structural power'. Meanwhile Watson (especially in the introduction and chapter 2) helps us to think deeply about a core concept that much IPE pays scant attention to: the market, while Chang asks some deep questions about whether Economics (and standard ways of thinking about the economy) are fit for purpose when it comes to studying the dynamics of economic systems.
To what extent is is valid to say that the nineteenth century economic order was made possible by the existence of the Atlantic slave trade from the sixteenth century?
Strong evidence that European economies most engaged in the slave trade grew fastest (direction of causation?) Revenues from the slave trade were the stimulus for the British industrial revolution Derenoncourt (2018) finds a very significant casual impact of slave voyages on the urban population of cities involved in the slave trade ... The story at the centre of IPE's core question = a Euro-Atlantic story and continues to be so. However: What happens if we tell the story from a different perspective ...
How does critical IPE differs from conventional IPE?
Talani (2017): critical IPE differs from conventional IPE in terms of: 1) Substantive focus (e.g. the transnational) 2) Epistemology 3) Methodology
In which ways is the US as threat to the WTO?
Targeting the WTO itself: 1) the blocked reappointment of WTO appellate body members; 2) lack consensus of new WTO General Director (not that unusual, however) Trade wars, the unilateral turn in US trade politics: 1) the national security exceptions of section 232 imposition of tariffs on steel and aluminum, and 2) the section 301 investigations on measures to readdress the alleged Chinese 'technology theft' (next)
What are the key drivers of globalization according to Anthony McGrew?
Technics - technological change & social organization Economics - markets and capitalism Politics - ideas, interests, agency & institutions
Watson: Why is it important to look at the history of the market concept?
That it allows us to think more clearly about alternatives. It helps us to understand how there has always been contestation over the best way of constructing a market concept that serves the purpose economists expect of it. Of course, that purpose is also a matter of contestation. All concepts have a history and social science concepts in particular have a history that is linked to the specific circumstances in which tehy wer first devleoped. However, there is a popular view within economics that good theory will always drive out bad theory and that what is left standing will always, by definition, be the best possible theory
What is common for all four structural powers?
That the possessor is able to change the range of choices open to others, without apparently putting pressure directly on them to take one decision or to make one choice rather than others. Such power is less "visible". The range op options open to the otehrs will be extended by giving them opportunities they would not otherwise have had. And it may be restricted by imposing costs or risks upon them larger than they would otherwise have faced, thus making it less easy to make some choices while making it more easy to make others.
What is one of the more recent key debates of IPE
The "Transatlantic Divide" Cohen Whether there are a distinctive American and British (or perhaps "ortodox" and "heterodox") approaches to the subject matter of IPE
Why did the BW system 'collapse'?
The Nixon Shock 15 August 1971 Problem of liquidity: The Bretton Woods system collapsed when the U.S. could no longer guarantee gold redemption for the dollar. Over time many nations had devalued their currency relative to the dollar. This eroded the U.S. trade position because U.S. goods became relatively more expensive in foreign markets while foreign goods were less expensive in the U.S. . This was exacerbated by deficit spending in the U.S. on the VietNam war and the "War on Poverty" during the 1960's which expanded the U.S. money supply and caused inflation. (Note: because it was a dollar based system, the U.S. could not "devalue"... it was the only currency that was completely fixed - unless the system was redesigned with completely new pegs to the dollar.... which did not happen.). Eventually there were too many dollars held by non-U.S. entities and the U.S. gold reserves had diminished (see slide #15). In 1971 the U.S. broke the dollar peg to gold and stopped gold redemption. Problem of adjustment: - growing disequilibrium between surplus (most of Europe) and deficit (US/UK) states Problem of speculation: - Convertibilty/Euromarkets → mobile speculative capital - Thus liquidity needed to address currency crises as well as foster econ. growth Ideological shift → neoliberalism (politics), neoclassical synthesis (Economics) → technical and normative questioning BW's 'embedded liberalism':
Can globalization be controlled or managed politically?
There is a asymmetri in how to control globalization politically -> the ability to make coalitions etc. Often whenyou talk about managing globalization you mean to limit it - but that's not always the case. - Perhaps good globalizations need good governance. - So a good market needs governments.
Give some examples of market practices
The discourse self-regulating market as the most efficient/effective/moral source of aggregate welfare gains and economic development. Global governance/international institutions as devices to create, set rules for and (perhaps) contain the logic of the self-regulating market. 'Comparative advantage' - the basis of modern international trade theory and the doctrine of free trade (and its institutionalisation) The Chicago's School's revised understanding of the market to allow (a) the giant corporation and (b) the 'disembedding' of the corporation from social purpose (b) the idea of 'shareholder value' Policy regimes that actively aim to realise forms of homo economicus - e.g. the creation of investor subjects under conditions of financialisation ^The idea of the market and how it is expressed The way the Chicago School has done economic thinking has allowed monopolism today which is totallly against classic economical thought
Main argument from Ellora Derenoncourt 'Atlantic slavery's impact on European and British economic development'
The economics literature on Atlantic slavery attests to its negative long-run impact on development outcomes in Africa and the Americas. What was slavery's impact on Europe? In this paper, I test the hypothesis that slavery contributed to modern economic growth in Europe using data on European participation in the Atlantic slave trade. I estimate a panel fixed effects model and show that the number of slaving voyages is positively associated with European city growth from 1600-1850. A 10% increase in slaving voyages is associated with a 1.2% increase in port city population. Using a newly created dataset on British port-level trade, I show that for the UK, this effect is distinct from that of general overseas trade, which also increased during this period.
What are the most important developments historically emableing financialization?
The emergence of prudential regulation to manage risk/promote financial stability (see Porter 2005) Emergence of regulation though international organisations, plus ... ... the emergence of transnational networks of highly specialised expert professionals ------ Embedded liberalism: drift to limit capital controls. It was necessary to follow the logic of Keynes which was to ensure that domestic policies were possible to accomblish Bretten Woods era seems to be responsible for the low amount of banking crises in the period -> capital mobility After Bretton Woods and the 70s - the policy was to remove capital control Is now an institutional policy in all organizations (EU, WTO, etc) Countries shoul dboth open to international trade but also capital flow
How would you explain the growth of economic nationalist sentiment in the US (and more broadly) in recent years?
The financial crisis - rise of unemployment - Produced a moment of possibility Double movement - the society reacted to the consequences of the crisis The rise of China - a rival Nationalism - not as a specific economic programme but more an idea of getting the naiton together
Name the two main periods in the history of world economy
The first (in the nineteenth century) is a period in which a genuinely global (perhaps 'globalised') economy is usually taken to have emerged. It focuses particularly on the role of Britain in facilitating this new global order and details the ways in which the legacies of this period are still significant. Secondly,the policies of this period ended in the great depression and the broader context of inter- war crisis.
Explain the theory the 'middle income trap'?
The likelihood of slowdown once rapid growth to middle income status achieved Growth through cheap labour, technology catch-up, reallocation of labour and capital from low to high productivity sectors à raises wages and living standards But this factor accumulation dries up and new sources of growth are elusive -> Unable to compete with either low wage countries dominating mature industries or high income countries that dominate innovative high tech industries
What does Watson mean with depoliticization?
The logic of economic globalization is typically represented merely as the logic of "the market" scaled up to the world as a whole = a strategy of depoliticization Depoliticization is a process through which the claim is made that the policy is no longer susceptible to the rigours of democratic political debate, because there is an automatic pilot in operation that can produce the policy solution more effectively than the constant give-and-take of politics can ever hope to do
How does Watson define the concept of the market?
The market concept refers to a utopia, a wouldn't-it-be-lovely-if-life-was-really-like-that state of affairs in which we were free to concentrate on matters of pure economic efficiency because we can rule out by definition the possibility of one person's actions causing harm to osmeone else. The market concept has experienced significant refinement over the years at the hands of economists. None of these conceptual meanings, however, sustains the image of "the market" as a bodily presence that is capable of ensuring that its interest is successfully acted upon
Explain Abdelal et al's paths of constructivism: Subjectivity
The meaning I am added by the discourse informs me of my choice. Roots in poststructualism The importance of discursive structures/regimes of truth Agents' role as subjects constituted by position within particular discourses How are truths mobilised and deployed?
What is the place of democratic politics in IR liberals' depiction of liberal international economic order? Is democracy a premise of such a system? Or at outcome? Or a constraint? Or a threat?
The question of democracy and the persistency of it in this system is not straight forward
Session 3a
The rise and fall of the Bretton Woods system
think of an example (other than the one used by Widmaier 2004 - we will come to that) to show how constructivist insights could be used to understand an aspect of ipe that we have studied so far.
The universal claim of free trade being in favor for all - free trade is presented to us in a way that it seems like an objective economic law - but you can argue that what happens is not an abjective economic law - free trade is a set of pratices and are persuasive and collectively held by actors across context. So free trade can be seen as an ideological claim Slavery. Shows how norms and contexts are very important
Explain 3) Most people in rich countries are paid more than they should be - what they don't tell you
The wage gaps between rich and poor countries exist not mainly because of differences in individual productivity but mainly because of immigration control. If there were free migration, most workers in rich countries would be replaced by workers from poor countries. In other words, wages are largely politically determined. So the poor countries are not poor because of their poor people (they can out-compete their counterparts). They are poor because of their rich people, who can't out-compete their counterparts. The rich countries rich people have high productivities because of the historically inherited collective institutions. They live in economies that have better tecnologies, better organized firms, better institutions and better physical infrastructure - all things that are in large part products of collective actions taken over generations. Example Swedish driver Sven is paid fifty times more than the Indian driver Ram - is that really because Sven is fifty times more productive than Ram? - No, the main reason that Sven is paid fifty times more than Rams is protectionism - Swedish workers are protected from competition from the workers of India and other poor countries through immigration control.
Session 2a
The world economy in the 19th century
Main argument in Rowan Arundel 'Equity Inequity: Housing Wealth Inequality, Inter and Intra- generational Divergences, and the Rise of Private Landlordism'
There is much evidence of rising inequalities across advanced economies. This paper argues for the special position of housing equity in inequality dynamics while challenging a persistent "ideology of mass homeownership" as a widespread and equalizing mechanism of asset accumulation. Contemporary dynamics of diminished homeownership access contrast to the continued attractiveness of real estate among those with capital and recent growths in private landlordism. The research presents an explorative examination of the housing wealth dimension of inequality through the British case and assesses empirically the dimensions of: equity concentration, inter and intra-generational divergences, and the role of private landlordism. The research points to the starkly concentrated nature of housing equity and significant trends towards increasing disparities, with especially disadvantaged prospects among younger cohorts. The recent emergence of a substantial secondary rental-property market presents a further key dimension of wealth concentration. The research underscores the fundamental inequality of housing equity and brings into question rooted ideologies of housing-asset-based economic security in an era of individualized welfare responsibility
What does Marx say about capitalism and time?
There is nothing natural or timeless about capitalism. Capitalism is the structure in the time of which we live right now A lot of Marx's work is about this moment in time where the structure changed into capitalism
Explain 17) More education in itself is not going to make a country richer - what they don't tell you
There is remarkably little evidence showing that more education leads to greater national prosperity. Much of the knowledge gained in education is actually not relevant for productivity enhancement, even though it enables people to lead a more fulfilling and independent life. While poor countries should expand education in order to prepare their youngsters for a more meaningful life, when it comes to the question of productivity increase, these countries need to look beyond the education of individuals and pay more attention to building the right institutions and organizations for productivity growth. Education is valuable, but its main value is not in raising productivity. Also, the knowledge economy is nothing new. We have always lived in one in the sense that it has always been a country's command over knowledge (or lack of it) that made it rich (or poor).
What lessons did the policy makers at BW draw from the previous period?
They embedded the liberalism within the nationa state and gave the nation state more agency in protecting their working class and the possibility to protect them from unemployment So there was a wish to integrate the world even more - which had been good - but in the same time a need to protect the social need in the nationa states -> so embedded liberalism Paradox: the mechanisms by which trade mechanisms were made possible actually gave rise to a system where you idd not end up with a system of free trade but rather nationalist protectionism -> so therefore BWS had to overcome the opening of the world economy agains without creating a system where the local citizens are being hurt to much. - The solution: try to find ways to expand and open the global economy in ways that allow countries to organize and manage their domesstic economies in ways that are able to create legitimazy by for instance the working class - Wanted to avoid societies caracterized by high unemployment and so on In the period up until there was a vacuum/lack of international institutions - so in order to avoid further world wars there was a need for international institutions.
Name the three families of liberal economy
Three main familiies of liberal economy: national liberalism and liberal economy liberalism, but also international relations liberalism
Main argument in Rory Horner and David Hulme, 'Global development, converging divergence and development studies: A rejoinder'
Through this Debate, we have sought to challenge the particular geography which is embedded in what we consider as international development. We believe all parts of the world face major 'development' challenges. Some may make a case for zeroing in on the classic issues, approaches and geography of development. While not discounting long-established focuses, we believe that there are opportunities for breaking down some of the silos that can separate a more classic focus of development studies on the global South from other issues of social justice in the North, or from global societal development, such as climate change and redistribution. Many of these challenges are interconnected in various ways, while many people engaged in development research and practice care about, and are engaged in various forms of practice and activism on, such issues. Our viewpoint seeks to contribute towards global development fitted to the 21st century.
Explain the connenction between Politics and financialization
Traditionally - the democratic state is a form of insurance against financial markets Under financialisation - the state enables the expansion, increased power and legitimation of the financial industry Deregulation Although for Krippner (2005 and interview) - financialisation is an unintended consequence of governments seeking to avoid crises and political conflict in the context of falling growth rates etc 'Policymakers understood one thing very well: turning the taps on credit offered a politically palatable means of soothing social tensions that began to fester in the mid to late 1960s' (Krippner 2017, interview at paragraph 31) Nevertheless - financialisation periods are associated with - Rising socio-economic inequality - Heightened systemic risk - Higher levels of political conflict
Name the secondary important structures
Transport, trade, energy and welfare Once we understand the four fundamental sources of structural power, we see that structures like trade, aid, energy or international transport systems, are actually secondary structures. They are shaped by the four basic structures of security, production, finance and knowledge. The common feature of secondary structures is firstly that, although they are frameworks wihtin which choices are made on the basis of value preferences, they are also secondary to the four primary structures of security, production, finance and knowledge, which play a large part in shaping the secondary structures. In each of these secondary structures the authority of the state - or of some states - plays an extra-territorial role
Main argument from Sara Wallace Goodman and Thomas Pepinsky 'The Exclusionary Foundations of Embedded Liberalism'
Under embedded liberalism, free trade, multinational investment, and liberal immigration policies enabled factors of production to flow across national borders. Analyses since Ruggie (1982) have focused on trade in goods and capital, implicitly assuming that labor represented just another factor of production. We argue that much as capital controls were essential components of the embedded liberal compromise, so too were restrictions on the democratic rights of labor migrants. Generous welfare programs in labor receiving countries thrived alongside accommodative immigration policies, but this arrangement was only tenable if migrants were politically or socially excluded in their destination countries. Embedded liberalism abroad rested on exclusionary political foundations at home. In bringing together the IPE literature on the "Globalization trilemma" with the comparative politics of citizenship and membership exclusion, we provide a novel account of how embedded liberalism actually worked, with implications for current debates about the fate of the liberal order in a time of populist resurgence.
Explain underdevelopmetn
Underdevelopment = a structural condition reflecting power asymmetries between global 'North' and 'South'. Core-periphery structure = central to capital accumulation When under-developed countries are met with compitition, they will be out-run. They won't stand a chance and the small amount of industry they have will close - accumulating yet more market power to the core. The only thing left of value in the countries are human and ressources which they can trade with cheaply. This leads to lower income, health issues, educational level - which leads to poverty and make them dependent.
Explain Kindleberger's "hegemonic stability"
We can only have liberal economic international order with the presence of a global hegemon ensuring and vautching this order. Kindleberger: in order for there to be a liberal international order of open markets, free trade, stable payments, globalization, you need a single, hegemonic, dominant state that is open - you have to pratice it yourself. What a hegemonic state needs to do in order to stabilize an international economic system? - Maintain an open market for imports - Provide counter-cyclical lending - Provide exchange rate stability (see session 2b on the Gold Standard) - Ensure coordination of macroeconomic policy - Act as lender of last resort 'These functions, I believe, must be organized and carried out by a single country that assumes responsibility for the system. If this is done, and especially if the country serves as a lender of last resort in financial crisis, the economic system is ordinarily capable ... of making adjustments to fairly serious dislocations by means of the market mechanism' (Kindleberger, 1986 [1973]: 289) - What was missing in the 1920's was something that was present in the nineteenth century = hegemonic stability - It is precisely because we lacked an economic hegemon that we experienced the huge economic collaps - ultimately leading to WWII - Kindleberger: in order for there to be a liberal international order of open markets, free trade, stable payments, globalization, you need a single, hegemonic, dominant state that is open - you have to pratice it yourself. - This is a power politics explanation - however by one who sees the value in the liberal market.
How does it add vale to IPE to think about history in terms of changing production structures?
You could argue that rather than looking at periods, it wiuld be better to look at production strucutres - a better way to sequence the story we are telling. Interesting which politics the different productions structures produce - 3-4: domestic politics less and less possible - The transition from 1-2: the rise of mass-politics. The creation of labor movements and welfare state created a distinctive understanding of domestic politics
Explain why the amount of household spending in percent of GDP for Denmark is lower than e.g. UK
We looked at this graph in class. Danish households don't consume as much as e.g. UK. Why? - Mainly because of taxes -> in DK we don't have to save up to education and health care, so that is not going out from our household budget.
Strange: How should we approach an analysis=
You should look for the key bargains in any situation, and the decide which might, and which probably will not, be liable to change, altering the range of choices for all or some of those concerned. The basic bargain to look for first is often a tacit one, that between authority and the market.
What is the Bretton Woods System?
a monetary system in which the exchange rate of major currencies retained nearly the same value with respect to the US dollar
On what grounds is it possible to argue that we are currently witnessing a 'de-globalization' of production?
globalization is hard to take back - path dependency - In the end binary between countries trying to make restrictions and som eocmpanies that are hard to control Can we actually disinvent the infrastructure that made globalization in the first place? - De-globalization doesn't mean nationalization - we are not going back in our shell - but something else. Here Solivan argues that this is regionalism