Managing World Economic Change International Political Economy

by Isaak, Robert A.

• ISBN13: 9780130117755
• ISBN10: 0130117757
• Edition: 3rd
• Format: Paperback
• Copyright: 1999-09-10
• Publisher: Pearson

Summary

This book discusses the principles behind the politics of managing the global economic changes since World War II. Historical principles, key concepts and persistent trends are set in a context of adapting to global change without losing cultural identity. It discusses how the economic shifts in business cycles and global capital flows have had an impact upon the world economy and demonstrates the importance of "globalization" as a long-term process which has sped up, of late. The fast-forwarded process has shaped many international organizations and institutions in their scramble to catch up in this environment of change. Concepts for Monitoring Change. The Global Environment. Domestic Sources of National Economic Behavior. Cycles, Trends, Conclusions. For anyone interested in an in-depth discussion of global trends and politics.

Table of Contents

Preface	xi
Part I Concepts for Managing Change
Introduction	1	(15)
Politics versus Economics or Liberalism versus Postliberalism	4	(3)
The Moral Dilemma of Liberalism: The Thick, the Thin, and the Virtual	7	(1)
Globalization versus Community Identity	8	(3)
Tiers	10	(1)
Managing Change, Entrepreneurial Risk, and Social Consequences	11	(1)
How This Book Works	12	(1)
Questions for Thought	13	(1)
Notes	14	(2)
Theories	16	(20)
Collective Learning and the Maintenance Model	17	(5)
Creative Destruction and Global Economic Development	22	(1)
Hegemonic Stability and Ideology	23	(3)
Economic Nationalism, Liberalism, and Marxism	26	(2)
Rational Choice and Oligopolies	28	(1)
Oligopolies and Neomercantilism	29	(2)
The Changing Nature of Insecurity	31	(1)
Questions for Thought	32	(1)
Notes	33	(3)
Part II The Global Environment
The World Monetary System	36	(37)
Origins	37	(18)
The Bretton Woods System	38	(3)
The IMF	41	(2)
The Decline of Bretton Woods	43	(1)
From Gold to Floating	44	(2)
The Rise of OPEC: The Second Redistribution	46	(2)
The Debt Trap: The Third Redistribution	48	(2)
The European Monetary System and the Euro	50	(5)
Interpretations	55	(5)
Balance-of-Payments Adjustments	55	(1)
Classical Economic Liberalism	56	(1)
Structuralism	57	(1)
Marxism	57	(1)
Monetarism	58	(1)
Neorealism	59	(1)
Implications	60	(10)
Managing the Crash of 1987	63	(2)
The Asian Crisis of 1997	65	(4)
Single-Key-Currency Anchors versus G-3 Collective Learning	69	(1)
Questions for Thought	70	(1)
Notes	70	(3)
The World Trade System	73	(35)
Orgins	74	(11)
From Mercantilism to Classical Liberalism	76	(1)
The Politics of Comparative Advantage, or Anglo-Saxon Ideology Applied	77	(2)
The Heckscher-Ohlin-Samuelson (HOS) Theorem	79	(1)
From GATT to the WTO	80	(3)
The Uruguay Round and U.S. Assertiveness	83	(2)
The Birth of the WTO	85	(1)
Interpretations	85	(18)
Neoclassical Theory	86	(2)
Structuralism	88	(3)
UNCTAD	91	(2)
The Earth Summit, Kyoto, and Sustainable Development	93	(2)
Trade Blocs: The EU, OPEC, NAFTA, and APEC	95	(5)
NAFTA, MERCOSUR, APEC: The New Blocs on the Block	100	(3)
Implications	103	(1)
Questions for Thought	104	(1)
Notes	105	(3)
Multinational Corporations	108	(14)
Origins	109	(11)
The Emergence of U.S. versus Japanese Multinational Corporations	110	(1)
Individuals Go Abroad: Entrepreneurship Multinationalized	110	(2)
Zaibatsu and Sogoshosha: How Japanese Maintenpreneurial Multinationals Emerged	112	(2)
From ``Soft Power'' to Types of Collective Learning	114	(1)
Adaptive versus Learning Organizations	115	(1)
From Virtual to World-Class Organizations	116	(2)
Joint Ventures or Strategic Alliances	118	(2)
Interpretations	120	(1)
Questions for Thought	120	(1)
Notes	121	(1)
The North-South System	122	(33)
Origins	124	(16)
The World Bank	125	(2)
Organizational ``Modeling'': Regional Development Banks	127	(1)
McNamara's Basic-Human-Needs Orientation	128	(1)
Wolfensohn's World Bank Strategy	129	(1)
From OPEC to the New International Economic Order	130	(2)
The Lome Strategy: A Model for North-South Economic Ties?	132	(2)
UNCTAD and UNIDO: Trade and Industrial Pressure Groups	134	(1)
The Debt Crisis	135	(1)
The Mexican Case, the Debt Trap, and the Cover of Privatization	136	(4)
Interpretations	140	(8)
Foreign Aid: Partial Solution, Drug, or Panacea?	141	(2)
Marxism and Dependency Theory	143	(2)
The World-System Perspective	145	(1)
The Rational Choice Perspective	146	(1)
The Environmental Perspective	147	(1)
Implications	148	(2)
Questions for Thought	150	(1)
Notes	150	(5)
Multinational Strategy, Direct Investment, and Technology	155	(24)
Origins	155	(16)
Strategic Behavior	155	(4)
Structures and Dependence	159	(2)
Direct Investment: Oligopoly and the Law of Uneven Development	161	(2)
Host Country versus Home Multinational Bargaining Power	163	(1)
The Product Cycle and Technology Transfer	164	(2)
Corporate Strategy	166	(5)
Implications	171	(4)
Big-Business Buffers and Small-Business Flexibility	172	(2)
Centralization and Decentralization	174	(1)
Questions for Thought	175	(1)
Notes	176	(3)
Part III Domestic Sources of National Economic Behavior
Life Chances, Class, Education, and Culture	179	(21)
Origins	181	(4)
Social Class and Educational Level	182	(3)
Interpretations	185	(7)
The Gentleman versus the Craftsman or Tradesman	185	(1)
The Two Cultures and Educational Consequences	186	(2)
Equality and Efficiency? The Swedish Model	188	(3)
Collective Learning as Unlearning in Kenya	191	(1)
Implications	192	(4)
The Collective Work Ethic and a Sense of Calling	193	(2)
Values and Culture	195	(1)
Questions for Thought	196	(1)
Notes	197	(3)
State Strategies and Stages of Development	200	(29)
Origins	202	(3)
Modernization and Purposive Rationality	202	(3)
Interpretations	205	(16)
Neoclassical versus Transformational Schools	205	(1)
Capitalist Incentives and Economic Growth	206	(5)
Dual Economies and Engines of Creative Destruction	211	(1)
Virtuous versus Vicious Circles and Learning by Doing	212	(2)
Neocoporatism	214	(1)
Commodity Producer Cartels: The Case of OPEC	215	(6)
Implications	221	(4)
State Spending as a Measure of Political Economy Constitutions	223	(2)
Questions for Thought	225	(1)
Notes	226	(3)
Industrial Policy, ``Economic Miracles,'' and the Environment	229	(60)
Origins	230	(3)
Industrial Policy as a Key to Competitiveness	233	(16)
Japanese Targeting	233	(2)
German Concentration and Follow-Through	235	(2)
German Unification: Bust or Bonanza?	237	(5)
The Industrial Policy Dilemma of the United States	242	(4)
The ``Limelight Effect'' of U.S. Economic Dynamism and the Backlash	246	(3)
``Economic Miracles'' and Their Opportunity Costs	249	(8)
Identifying ``Economic Miracles''	249	(2)
External Factors	251	(1)
Internal Factors	252	(1)
Collective Learning and the Logic of Perception	253	(2)
Steps toward ``Economic Miracles''	255	(1)
Opportunity Costs and Sustainable Development	256	(1)
Questions for Thought	257	(1)
Notes	258	(5)
Post-Socialist Transitions
Origins	263	(5)
The Stalinist Model: Collective Learning through Shortages	264	(2)
Post-Stalinist Economic Growth and Strategies	266	(1)
COCOM and Technology Transfer	267	(1)
Interpretations	268	(13)
Perestroika, the Democratization of Russia, and the ``Virtual Economy''	268	(3)
East Bloc Revolution	271	(1)
Liberalization and Privatization in Poland	272	(3)
China: From Economic Reforms to Potential Superpower?	275	(3)
Capitalist Reform minus Democracy Equals Raised Expectations and Rebellion	278	(3)
Implications	281	(3)
Learning Principles: Positive Transparency and Agency	281	(3)
Questions for Thought	284	(1)
Notes	284	(5)
Part IV Cycles, Trends, and Conclusions
Business Cycles and Capital Flows	289	(18)
Origins	290	(8)
Short-Term, Intermediate, and Long-Term Business Cycles	290	(4)
The Politics of Business Cycles	294	(2)
Global Patterns of Capital Flow	296	(2)
Interpretations and Implications	298	(6)
The Learning Contagion of Stock Market and Financial Mergers	298	(2)
Moral Hazard versus the Hazard of Being Moral	300	(4)
Questions for Thought	304	(1)
Notes	305	(2)
Globalization and Resistance	307	(19)
Defining the Situation	308	(3)
The Maintenance Thesis: Managing Economic Risk	311	(2)
Speed Limits and Information Overload: Acceleration versus Retardation	313	(2)
Collective Learning and Cultural Resistance	315	(2)
The Parameters of International Political Economy	317	(1)
Closure versus Ambivalent Belief Systems	318	(2)
Models and Modeling	320	(2)
Strategies, Cycles, and Principles	322	(3)
Notes	325	(1)
Glossary	326	(12)
Selected Bibliography	338	(7)
Index	345