Introduction to International Political Economy

by Balaam, David N.; Veseth, Michael

• ISBN13: 9780130183491
• ISBN10: 0130183490
• Edition: 2nd
• Format: Paperback
• Copyright: 2001-01-01
• Publisher: Taylor & Francis

Summary

This comprehensive introduction to international political economy clearly shows how politics and economics come together in today's global environment. It demonstrates how an understanding of IPE can help make sense of global news, business investments, and government policies—by presenting the theories, institutions, and relationships found in IPE in simple ways that retain the complexity of the world issues and intellectual problems addressed. Chapter titles include Wealth and Power: Mercantilism and Economic Nationalism; “Laissez-Faire, Laissez-Passer:” The Liberal IPE Perspective; Marx, Lenin, and the Structuralist Perspective; International Trade; The International Monetary System; The Global Security Structure; Japan and the Developmental State; The IPE of OPEC and Oil; The IPE of Food and Hunger; and The Environment: the Green Side of IPE. A fundamental look at international relations, global events, and our everyday lives,—for anyone who wants to become a better citizen, and a more knowledgeable individual in the process.

Table of Contents

Preface	xv
Part I Perspectives on International Political Economy	1	(106)
What Is International Political Economy?	3	(22)
Overview	3	(2)
IPE in Theory and in Practice	5	(3)
The IPE Approach to International Issues	8	(3)
Box: Multidimensional Information Arbitrage	11	(1)
Fundamental Elements of IPE	12	(1)
Wealth and Power: The Tension Between States and Markets	13	(2)
The Dynamic Nature of State-Market Interaction	15	(1)
Dimensions of International Political Economy	16	(5)
IPE in the Borderless World	21	(1)
Discussion Questions	22	(1)
Internet Links	22	(1)
Suggested Readings	23	(1)
Notes	23	(2)
Wealth and Power: Mercantilism and Economic Nationalism	25	(20)
Overview	25	(1)
Mercantilism as History, Philosophy, and State Policy	26	(2)
Mercantilism and Realism: Complementary Perspectives	28	(1)
Economic Nationalism	29	(2)
The Rise of Neomercantilism	31	(3)
Box: Military versus Economic Security	34	(2)
Japan: Benign or Malevolent Mercantilist?	36	(1)
Box: Banana Wars	37	(2)
Mercantilism as Economic Management: Statism	39	(1)
Globalization and Defensive Mercantilism	39	(1)
Box: Industrial Espionage	40	(1)
Conclusion	41	(1)
Discussion Questions	42	(1)
Internet Links	42	(1)
Suggested Readings	42	(1)
Notes	43	(2)
``Laissez-Faire, Laissez-Passer'': The Liberal IPE Perspective	45	(22)
Overview	45	(3)
Roots of the Liberal Perspective	48	(1)
More Than Just Greed: The Politics of Liberalism	49	(1)
The Liberal View of International Relations	50	(2)
Box: Britain's Corn Laws	52	(1)
J. S. Mill and the Evolution of the Liberal Perspective	53	(1)
The War, Depression, and Mr. Keynes	54	(2)
The Keynesian Compromise	56	(1)
The Liberal View of Hegemony	57	(1)
Box: Three Perspectives on Hegemony	58	(2)
Conservatism: The Resurgence of Classical Liberalism	60	(2)
Reagan, Thatcher, and the Neoconservatives	62	(1)
Liberalism Today	63	(1)
Discussion Questions	64	(1)
Internet Links	65	(1)
Suggested Readings	65	(1)
Notes	65	(2)
Marx, Lenin, and the Structuralist Perspective	67	(20)
Overview	67	(3)
Marx and History	70	(1)
Marx and Class Struggle	71	(1)
Marx and the Crisis of Capitalism	72	(1)
Marx and Structuralism	73	(1)
Box: Marx and Culture.	74	(2)
Lenin and Imperialism	76	(1)
Lenin and International Capitalism	77	(1)
Other Aspects of the Structuralist Perspective	78	(1)
Modern World System Theory	79	(2)
Dependency Theory	81	(1)
Structuralism in Perspective	82	(1)
Box: Structuralism Today: The Manic Logic of Global Capitalism	83	(2)
Discussion Questions	85	(1)
Internet Links	85	(1)
Suggested Readings	85	(1)
Notes	85	(2)
Critical Perspectives on International Political Economy	87	(20)
Overview	87	(2)
The Rational Choice Critique	89	(4)
Box: Rent-Seeking in Mexico	93	(1)
The Green Critique of IPE	94	(3)
Box: Thinking Global and Acting Local on the Ganges River	97	(1)
The Feminist Critique	98	(2)
Box: Women and Development: Unexpected Consequences	100	(1)
Postmodernism and IPE	101	(3)
Conclusions	104	(1)
Box: The Post-Modern State and the World Order	104	(1)
Discussion Questions	105	(1)
Internet Links	105	(1)
Suggested Readings	105	(1)
Notes	106	(1)
Part II IPE Structures: Production, Finance, Security, and Knowledge	107	(122)
International Trade	110	(23)
Overview	110	(2)
Three Perspectives on International Trade	112	(3)
Box: The Vocabulary of International Trade Policy	115	(1)
GATT and the Liberal Postwar Trade Structure	116	(1)
Mercantilist Policies in a Liberal Trade System	117	(2)
The Uruguay Round and the WTO	119	(3)
North-South Trade Issues	122	(2)
Regional Trade Blocs	124	(1)
Trade as a Foreign Policy Tool	125	(1)
Box: Cuba, Vietnam, and China: The Shifting Use of Trade Sanctions	126	(4)
Conclusion: The Future of International Trade	130	(1)
Discussion Questions	131	(1)
Internet Links	131	(1)
Suggested Readings	131	(1)
Notes	132	(1)
The International Monetary System	133	(24)
Overview	133	(2)
A Student's Guide to Foreign Exchange	135	(1)
The FX Ticket: A Currency's Value Depends on What it Can Buy	136	(4)
The Effects of FX Changes	140	(2)
Box: Crisis in the CFA Franc Zone	142	(2)
Exchange Rate Instability	144	(2)
Introduction to the International Monetary System	146	(1)
The Bretton Woods System	147	(2)
The Lessons of Bretton Woods	149	(1)
Floating Exchange Rates and the Unholy Trinity	150	(3)
The Age of Extremes	153	(1)
Discussion Questions	154	(1)
Internet Links	154	(1)
Suggested Readings	154	(1)
Notes	155	(2)
Debt: The Political Economy of International Finance	157	(25)
Overview	157	(2)
The Nature and Significance of Finance	159	(1)
The Vocabulary of International Finance	160	(3)
How International Payments Balance	163	(1)
Box: Anatomy of a Balance of Payments Crisis	164	(2)
The Global Financial Structure	166	(3)
The Impact of Global Finance on IPE	169	(1)
The LDC Debt Crisis	170	(2)
Box: The Prisoners' Dilemma	172	(1)
Creating Cooperation: The Brady Plan	173	(2)
Bubbles: The Crises of Global Finance17	175	(4)
States and Markets in Global Finance	179	(1)
Discussion Questions	179	(1)
Internet Links	179	(1)
Suggested Readings	180	(1)
Notes	180	(2)
The Global Security Structure	182	(26)
Overview	182	(2)
Images of the Changing Security Structure	184	(1)
The Cold War	184	(2)
Toward a Post-Cold War Security Structure	186	(3)
Box: The Persian Gulf War	189	(6)
Box: UN Peacekeeping Functions	195	(4)
Box: Banning Land Mines	199	(4)
Conclusion: Images of the Global Security Structure	203	(2)
Discussion Questions	205	(1)
Internet Links	205	(1)
Suggested Readings	205	(1)
Notes	205	(3)
Knowledge and Technology: The Basis of Wealth and Power	208	(21)
Professor Ross Singleton
Overview	208	(2)
The International Knowledge Structure	210	(2)
The Nature and Impact of Technological Innovation	212	(1)
The IPE of Technology and Intellectual Property Rights (IPRs)	213	(1)
Three Perspectives on Intellectual Property Rights	214	(2)
U.S. Efforts to Protect Intellectual Property Rights	216	(3)
Cooperation and Conflict Among Industrialized Countries	219	(1)
Box: Patenting Life---The International Harmonization of Biotechnology Protection	220	(1)
North-South Conflicts over Intellectual Property Rights	221	(2)
Box: Asian Developing Countries---Tigers or Copycats?	223	(1)
Conclusion	224	(1)
Discussion Questions	225	(1)
Internet Links	225	(1)
Suggested Readings	225	(1)
Notes	225	(4)
Part III State-Market Tensions Today	229	(90)
The European Union: The Economics and Politics of Integration	231	(23)
Overview	231	(2)
The Logic of Economic Integration	233	(2)
Sovereignty at Risk: The Politics of Integration	235	(1)
The Birth of the European Economic Community	236	(3)
Box: The Common Agricultural Policy	239	(1)
Broader and Deeper: The EC, 1973-1993	240	(3)
The Development of Political Institutions	243	(2)
The 1990s Euro, Europe, Europa?	245	(2)
Political Union or Monetary Union?	247	(1)
The Political Economy of the Euro	248	(1)
Euro-Optimists and Euro-Pessimists	249	(1)
Box: Integration and Disintegration	250	(1)
Discussion Questions	251	(1)
Internet Links	252	(1)
Suggested Readings	252	(1)
Notes	253	(1)
Democracy and Markets: The IPE of NAFTA	254	(18)
Professor David J. Sousa
Overview	254	(2)
What Is NAFTA?	256	(2)
``From the Yukon to the Yucatan'': The Core of the Deal	258	(2)
Supplemental Agreements on the Environment and Labor	260	(2)
Markets, Democracy, and Protectionism	262	(1)
Democracy and Markets	263	(1)
Democcracy, Markets, and NAFTA	264	(2)
Conclusion: Democracy, NAFTA, and the Future of U.S. Trade Policy	266	(2)
Box: After NAFTA	268	(2)
Discussion Questions	270	(1)
Internet Links	270	(1)
Suggested Readings	270	(1)
Notes	271	(1)
Japan and the Developmental State	272	(23)
Overview	272	(1)
Patterns of Continuity and Change in Japanese History	273	(1)
History: From Isolationist to Imperialist	274	(2)
Multiple Explanations of Japan's Economic Success	276	(2)
Mercantilism Meets Capitalism: The Developmental State	278	(1)
Box: Japanese Industrial Policy	279	(1)
How Japan Won the Cold War	280	(2)
Winning the Cold War but Losing the Peace	282	(2)
The Bubble Economy	284	(2)
Box: Japan's Economic Dilemma	286	(2)
The Political Bubble	288	(3)
Three Perspectives on Japan's Future	291	(1)
Conclusion	292	(1)
Discussion Questions	292	(1)
Internet Links	293	(1)
Suggested Readings	293	(1)
Notes	293	(2)
States and Markets in Transition	295	(24)
Professor Patrick H. O'Neil
Overview	295	(2)
States and Markets in Transition	297	(1)
Communism and the Classical Socialist System	298	(1)
The Politics of Classical Socialism	299	(2)
The Economics of Classical Socialism	301	(3)
The Problems of Transition	304	(1)
The Politics of Transition	305	(2)
The Economics of Transition	307	(2)
Case Study: Varieties of Economic Transformation in Eastern Europe	309	(2)
Case Study: Economic and Political Reform in Russia	311	(3)
Case Study: China's Transition to Market Socialism	314	(2)
States and Markets in Transition: Tensions, Issues, and Lessons	316	(1)
Discussion Questions	317	(1)
Internet Links	317	(1)
Suggested Readings	317	(1)
Notes	318	(1)
Part IV IPE North and South	319	(68)
The Two Faces of Development	320	(26)
Professor Sunil Kukreja
Overview	320	(2)
The Two Faces of Economic Development	322	(3)
The North-South Debate	325	(1)
Changing the System: UNCTAD and the NIEO	326	(2)
The Liberal Model and Economic Development	328	(1)
Dependency: Development or Underdevelopment?	329	(2)
Box: Ujamaa: An Experiment in Self-Reliance	331	(1)
The Neoliberal Consensus on Development	332	(1)
The Newly Industrializing Countries	333	(7)
Losing Ground: The African Predicament	340	(2)
Box: Women and Development in LDCs	342	(1)
Conclusion	343	(1)
Discussion Questions	343	(1)
Internet Links	344	(1)
Suggested Readings	344	(1)
Notes	344	(2)
The IPE of Multinational Corporations	346	(23)
Professor Leon Grunberg
Overview	346	(1)
The Nature of Multinational Corporations	347	(1)
Where Do They Come from and Where Do They Go?	348	(2)
Why Do Firms Invest Abroad?	350	(3)
The Impact of Multinational Corporations	353	(1)
The Positive View	353	(2)
The Negative View	355	(5)
The Impact of MNCs: Summing Up	360	(1)
Box: Wooing Multinational Corporations---The Case of Mercedes-Benz	360	(1)
Bargaining Relations Between MNCs and Governments and Workers	361	(2)
Box: When Countries Have the Upper Hand: Boeing and China	363	(2)
Conclusion	365	(1)
Discussion Questions	366	(1)
Internet Links	366	(1)
Suggested Readings	366	(1)
Notes	367	(2)
The IPE of OPEC and Oil	369	(18)
Overview	369	(2)
OPEC and the Politics and Economics of Oil	371	(1)
The Oil Crises of the 1970s	372	(2)
Reactions to the OPEC Oil Crises	374	(1)
Oil and OPEC in the 1980s	375	(2)
Oil and the Gulf War of 1990	377	(1)
OPEC's Obituary?	377	(3)
Exaggerated Rumors	380	(3)
Conclusion	383	(1)
Discussion Questions	384	(1)
Internet Links	384	(1)
Suggested Readings	384	(1)
Notes	385	(2)
Part V Global Problems	387	(68)
The International Political Economy of Food and Hunger	388	(24)
Overview	388	(2)
Lifeboat Ethics	390	(1)
Lifeboat Ethics Critiqued	391	(3)
The World Food Crisis	394	(1)
Hunger Amongst Plenty	395	(1)
Box: The IPE of Famine in Somalia	396	(1)
An IPE of Food and Hunger	397	(2)
Box: Amartya Sen and the Causes of Famines	399	(1)
The Mercantilist Perspective	400	(2)
The Liberal Perspective	402	(3)
The Structuralist Perspective	405	(2)
Conclusion	407	(1)
Discussion Questions	408	(1)
Internet Links	409	(1)
Suggested Readings	409	(1)
Notes	409	(3)
The Environment: The Green Side of IPE	412	(25)
Overview	412	(2)
Outlining the Problem: The Environment as a Communal Good	414	(1)
The Global Scope of Problems	415	(3)
The Proliferation of Actors	418	(1)
Box: UNEP: Solution or Problem?	419	(1)
Linkages to Other Issues	420	(1)
Case Study: The Greenhouse Effect	421	(3)
Cast Study: Deforestation	424	(3)
Case Study: Ocean Nuclear Waste Dumping	427	(1)
Solutions: A Green IPE?	428	(5)
Conclusion	433	(1)
Discussion Questions	433	(1)
Internet Links	434	(1)
Suggested Readings	434	(1)
Notes	435	(2)
Conclusion: Where Do We Go from Here?	437	(18)
Overview	437	(1)
The IPE Approach: Some Concluding Thoughts	438	(3)
IPE Today: Four Fundamental Tensions	441	(7)
The Future? Four Scenarios	448	(2)
Box: Mad Money	450	(2)
Conclusion: Days of Futures Past	452	(1)
Discussion Questions	453	(1)
Internet Links	453	(1)
Suggested Readings	453	(1)
Notes	454	(1)
Glossary	455	(18)
Index	473