Global Political Economy

by Cohn, Theodore H.

• ISBN13: 9780205075836
• ISBN10: 0205075835
• Edition: 6th
• Format: Paperback
• Copyright: 2011-02-15
• Publisher: Routledge

Summary

Praised for its authoritative coverage, Global Political Economyplaces the study of IPE in its broadest theoretical context. #xA0; This text not only helps students understand the fundamentals of how the global economy works but also encourages them to use theory to more fully grasp the connections between key issue areas like trade and development. Written by a leading IPE scholar, Global Political Economyequally emphasizes theory and practice to provide a framework for analyzing current events and long-term developments in the global economy.

Author Biography

Theodore H. Cohn is Professor Emeritus of Political Science at Simon Fraser University.

Table of Contents

Preface	p. x
Acronyms and Abbreviations	p. xvii
Introduction and Overview	p. 1
Introduction	p. 2
What is International Political Economy?	p. 3
The IPE Theoretical Perspectives	p. 5
Purposes and Themes of This Book	p. 6
Globalization	p. 6
North-North Relations	p. 8
North-South Relations	p. 10
Focus of this Book	p. 12
Questions	p. 14
Key Terms	p. 14
Further Reading	p. 14
Notes	p. 15
Managing the Global Economy Since World War II: The Institutional Framework	p. 18
Global Economic Relations Before World War II	p. 19
The Mercantilist Period	p. 19
The Industrial Revolution and British Hegemony	p. 20
The Decline of British Hegemony and World War I	p. 20
The Interwar Period	p. 21
The Institutional Framework Before World War II	p. 22
The Functions of the IMF, World Bank, and GATT	p. 22
The KIEOs and the United Nations	p. 23
The Postwar Economic Institutions and Changing North-South Relations	p. 26
The IMF, World Bank, and WTO	p. 27
The OECD	p. 30
The G10,G5,G7,G8, and G20	p. 31
Postwar Economic Institutions and the South	p. 33
Postwar Economic Institutions and the Centrally Planned Economies	p. 39
Nonstate Actors	p. 42
The 2008 Global Financial Crisis: A Turning Point?	p. 44
Questions	p. 45
Key Terms	p. 46
Further Reading	p. 46
Notes	p. 47
Theoretical Perspectives	p. 52
The Realist Perspective	p. 56
Basic Tenets of the Realist Perspective	p. 57
The Role of the Individual, the State, and Societal Groups	p. 57
The Nature and Purpose of International Economic Relations	p. 57
The Relationship Between Politics and Economics	p. 58
The Causes and Effects of Globalization	p. 58
The Mercantilists	p. 59
Realism and the Industrial Revolution	p. 59
Realism in the Interwar Period	p. 60
Realism After World War II	p. 61
The Revival of Realist IPE	p. 61
Hegemonic Stability Theory and U.S. Hegemony	p. 62
What Is Hegemony?	p. 63
What Are the Strategies and Motives of Hegemonic States?	p. 63
Is Hegemony Necessary and/or Sufficient to Produce an Open, Stable Economic System?	p. 65
What Is the Status of U.S. Hegemony?	p. 66
Realism and North-South Relations	p. 69
Critique of the Realist Perspective	p. 70
Questions	p. 71
Key Terms	p. 71
Further Reading	p. 71
Notes	p. 72
The Liberal Perspective	p. 77
Basic Tenets of the Liberal Perspective	p. 77
The Role of the Individual, the State, and Societal Groups	p. 78
The Nature and Purpose of International Economic Relations	p. 78
The Relationship Between Politics and Economics	p. 79
The Causes and Effects of Globalization	p. 79
Orthodox Liberalism	p. 80
The Influence of John Maynard Keynes	p. 81
Liberalism in the Postwar Period	p. 82
A Return to Orthodox Liberalism	p. 82
Liberalism and Institutions	p. 84
Interdependence Theory	p. 84
The Liberal Approach to Cooperation	p. 85
Regime Theory	p. 87
Liberalism, Global Governance, and Regimes	p. 89
Liberalism and Domestic-International Interactions	p. 90
Liberalism and North-South Relations	p. 92
Orthodox Liberals and North-South Relations	p. 93
Interventionist Liberals and North-South Relations	p. 94
Critique of the Liberal Perspective	p. 95
Questions	p. 96
Key Terms	p. 97
Further Reading	p. 97
Notes	p. 98
Critical Perspectives	p. 103
Basic Tenets of Historical Materialism	p. 103
The Role of the Individual, the State, and Societal Groups	p. 103
The Nature and Purpose of International Economic Relations	p. 104
The Relationship Between Politics and Economics	p. 104
The Causes and Effects of Globalization	p. 105
Early Forms of Historical Materialism	p. 106
Karl Marx and IPE	p. 106
Marxist Studies of Imperialism	p. 106
Dependency Theory	p. 108
Whither the Historical Materialist Perspective?	p. 110
World-Systems Theory	p. 110
Neo-Gramscian Analysis	p. 112
Constructivism	p. 114
Feminism	p. 116
Environmentalism	p. 119
Critique of the Critical Perspectives	p. 122
Questions	p. 123
Key Terms	p. 124
Further Reading	p. 124
Notes	p. 125
The Issue Areas	p. 131
International Monetary Relations	p. 132
The Balance of Payments	p. 133
Government Response to a Balance-of-Payments Deficit	p. 135
Adjustment Measures	p. 136
Financing	p. 137
Adjustment, Financing, and the Theoretical Perspectives	p. 139
The Functions and Valuation of Money	p. 139
International Monetary Relations Before Bretton Woods	p. 140
The Classical Gold Standard (1870s to 1914)	p. 140
The Interwar Period (1918-1944)	p. 140
The Formation of the Bretton Woods Monetary Regime	p. 141
The International Monetary Fund	p. 142
The Functioning of the Bretton Woods Monetary Regime	p. 144
The Central Role of the U.S. Dollar	p. 144
A Shift Toward Multilateralism	p. 146
The Demise of the Bretton Woods Monetary Regime	p. 148
The Regime of Floating (or Flexible) Exchange Rates	p. 149
The Plaza-Louvre Accords	p. 151
Alternatives to the Current Monetary Regime	p. 151
European Monetary Relations	p. 152
What Is the Future of the U.S. Dollar as the Key Currency?	p. 155
The Dollar Versus the Euro	p. 155
Countries with Large Foreign Reserves and the Future of the Dollar	p. 157
Sovereign Wealth Funds	p. 159
Considering IPE Theory and Practice	p. 160
Questions	p. 161
Key Terms	p. 162
Further Reading	p. 162
Notes	p. 163
Global Trade Relations	p. 168
Trade Theory	p. 169
Global Trade Relations Before World War II	p. 173
GATT and the Postwar Global Trade Regime	p. 174
Principles of the Global Trade Regime	p. 175
Trade Liberalization	p. 175
Nondiscrimination	p. 177
Reciprocity	p. 178
Safeguards	p. 180
Development	p. 181
Formation of the WTO	p. 182
The WTO and the Global Trade Regime	p. 184
The South and Global Trade Issues	p. 186
1940s to Early 1960s: Limited LDC Involvement	p. 186
1960s to Early 1970s: Growing Pressures for Special Treatment	p. 186
1970s to 1980: Increased North-South Confrontation	p. 187
1980s to 1995: More LDC Participation in GATT	p. 188
1995 to the Present: LDC Disillusionment with the Uruguay Round and Demands in the Doha Round	p. 189
The Transition Economies and Global Trade Relations	p. 190
Eastern Europe and the GATT/WTO	p. 191
China	p. 192
Russia	p. 195
Civil Society and Global Trade Relations	p. 196
Trade and the Environment	p. 197
Considering IPE Theory and Practice	p. 199
Questions	p. 201
Key Terms	p. 202
Further Reading	p. 202
Notes	p. 203
Regionalism and the Global Trade Regime	p. 209
Regionalism and the IPE Theoretical Perspectives	p. 210
Regionalism and Globalization	p. 212
A Historical Overview of RTAs	p. 213
The First Wave of Regionalism	p. 213
The Second Wave of Regionalism	p. 214
Explanations for the Rise of Regional Integration	p. 214
Realist Explanations	p. 214
Liberal Explanations	p. 215
Historical Materialist Explanations	p. 216
The GATT/WTO and RTAs	p. 217
Trade Diversion	p. 217
Trade Creation	p. 218
GATT Article 24 and RTAs	p. 218
The Effectiveness of GATT Article 24	p. 219
Special Treatment for LDCs	p. 220
The European Union	p. 222
The Deepening of European Integration	p. 223
The Widening of European Integration	p. 225
Theoretical Perspectives and the EU	p. 227
The North American Free Trade Agreement	p. 229
The Formation of NAFTA	p. 229
NAFTA as a Free Trade Agreement	p. 230
The IPE Theoretical Perspectives and NAFTA	p. 232
Mercosur	p. 234
East Asian Regionalism	p. 236
Considering IPE Theory and Practice	p. 239
Questions	p. 241
Key Terms	p. 242
Further Reading	p. 242
Notes	p. 243
Multinational Corporations and Global Production	p. 249
Definitions and Terminology	p. 250
Why Do Firms Become MNCs?	p. 251
The Historical Development of FDI	p. 253
The Pre-World War II Period	p. 253
The Mid-1940s to Mid-1980s	p. 254
The 1980s to the Present	p. 257
MNC-Host Country Relations: Determinants and Effects of FDI	p. 261
Host Country Policies Toward MNCs	p. 263
The South	p. 264
The North	p. 266
MNC-Home Country Relations	p. 268
Home Country Policies Toward MNCs	p. 269
The Effects of MNCs on Labor Groups in Home Countries	p. 271
Competitiveness and Home Country-MNC Relations	p. 272
A Regime for FDI: What Is to Be Regulated?	p. 274
Bilateral Investment Treaties	p. 276
United Nations	p. 277
Regional Approaches: The EU and NAFTA	p. 278
The GATT/WTO to the OECD and Back to the WTO	p. 280
Private Actors	p. 282
Considering IPE Theory and Practice	p. 283
Questions	p. 285
Key Terms	p. 285
Further Reading	p. 286
Notes	p. 286
International Development	p. 294
IPE Perspectives and North-South Relations	p. 296
Official Development Assistance	p. 297
The World Bank Group	p. 301
LDC Development Strategies	p. 307
Import Substitution Industrialization	p. 307
Socialist Development Strategies	p. 309
Export-Led Growth	p. 311
IPE Perspectives and the East Asian Experience	p. 313
The Asian Financial Crisis	p. 314
The Revival of Orthodox Liberalism	p. 317
Structural Adjustment and Theoretical Perspectives	p. 318
Structural Adjustment and Questions About Orthodox Liberalism	p. 319
Structural Adjustment and Sub-Saharan Africa	p. 319
Structural Adjustment and LDC Women	p. 320
Another Shift in Development Strategy?	p. 322
The Late 1980s to 1994	p. 322
1995 to the Present	p. 325
Considering IPE Theory and Practice	p. 327
Questions	p. 330
Key Terms	p. 330
Further Reading	p. 331
Notes	p. 331
Foreign Debt and Financial Crises	p. 339
What Is a Debt Crisis?	p. 339
The Origins of the 1980s Debt Crisis	p. 341
Unexpected Changes in the Global Economy	p. 341
Irresponsible Behavior of Lenders	p. 342
Irresponsible Behavior of Borrowers	p. 342
The South's Dependence on the North	p. 344
The Foreign Debt Regime	p. 346
The IMF, the World Bank, and Transition Economies	p. 348
The Paris and London Clubs	p. 351
Strategies to Deal with the 1980s Debt Crisis	p. 353
Emergency Measures and Involuntary Lending: 1982-1985	p. 353
The Baker Plan: 1986-1988	p. 354
The Brady Plan: 1989-1997	p. 356
Initiatives for the Poorest LDCs	p. 358
Assessing the Effectiveness of the Debt Strategies	p. 359
Transition Economies and Foreign Debt	p. 360
The IMF, the World Bank, and the Debt Crisis	p. 362
The 1990s Asian Financial Crisis	p. 364
The 2008 Global Financial Crisis	p. 367
Considering IPE Theory and Practice	p. 371
Questions	p. 372
Key Terms	p. 373
Further Reading	p. 373
Notes	p. 374
Concluding Comments	p. 381
Current Trends in the Global Political Economy	p. 382
Globalization	p. 382
Globalization and Triadization	p. 383
Globalization and the State	p. 384
Globalization, Inequality, and Poverty	p. 386
Globalization and Democracy	p. 388
Globalization and Civil Society	p. 389
Globalization and ôNewer Issuesö: The Environment, International Migration, and Illegal Activity	p. 390
North-North Relations	p. 393
The Current State of U.S. Hegemony	p. 393
Is There a Candidate to Replace the United States as Global Hegemon?	p. 394
The Role of International Institutions	p. 397
North-South Relations	p. 400
Changing Concepts of Development	p. 400
Is There a ôBestö Development Strategy?	p. 402
A Final Word on IPE Theory and Practice	p. 404
Notes	p. 405
Glossary	p. 409
Index	p. 419
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