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UNIVERSITY OF OXFORD

Department of Politics and International Relations

Optional Subject for M.Phil. in International Relations:

International and European Political Economy

Michaelmas Term 2002

Course Provider: Dr Kalypso Nicolaïdis, St Antony’s College (Kalypso.Nicolaidis@sant.ox.ac.uk) website: http//users.ox.ac.uk/~ssfc0041

Course assistant: Angus Thomson (Thomson.Angus@bcg.com)

Time and Place: Fridays 10-1pm, European Studies Center, St Antony’s College(70 Woodstock road)

Course Aims

The course aims to introduce graduate students to aspects of the interaction betweenstates, societies, firms and markets at the international level, with a focus on theEuropean and Transatlantic context. It also covers the most recent controversies in thefield around the theme of globalization and global governance. It does not coverdirectly the IPE of developing countries, although many of the sessions include astrong North-South dimension. It is intended to develop at an advanced level ideasintroduced in the core M.Phil. courses on international relations theory andinternational history. No background in international economics is required.

Rubric

The interrelationship between the world economy and the international politicalsystem, including the principal theories regarding international political economy.The course seeks to integrate readings and discussions on theory and methodologyand analysis of contemporary issues in IPE. Topics will include: the reconstruction ofthe international economy after 1945; the role of the US in the post-war period andtheories of hegemonic stability; the politics of international trade and the evolution ofthe GATT/WTO system; the development of regional economic arrangements and therelationship between regionalism, multilateralism and globalization in the worldeconomy; the political economy of the European Single Market; current issues intransatlantic economic relations; the reformulation of IPE under globalization; and themain schools of thought on global economic governance.

The detail of weekly reading and questions is listed below. If there are additionaltopics that individual students wish to cover, they should consult Dr Nicolaïdis.

Organization of Teaching

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The course will be taught in a small tutorial group. During each weekly 3-hour session,there will be a 30-45 minute lecture on the topic(s) followed by group discussion. Eachstudent should come to class with an outline of a response to each of the week’questions. In addition to discussion within the group, there will be follow-up tutorialson students’ individual work. Each student taking the M.Phil. option is expected toproduce 2 papers on topics of choice covered during term (the length is not critical butaround 2500/3000 words is a rough norm). Students will be able to post their paper anddiscussions around it on the course website (on Dr Nicolaidis’ website). The websitewill be used to post materials, questions and (optionally) essays.

Readings

Students are expected to cover all of the required readings for each week. A packet ofweek 1’s readings will be available on October 10th from Dr. Nicolaïdis’ office.Packets of readings for each subsequent week will be distributed in class. Thosewriting on one of the topics for a week will also be expected to have a command ofthe arguments in the recommended readings.

Developing some familiarity with major journals in the field is also highlyrecommended. Students are also expected to keep up during term with the FinancialTimes, The Economist and with important websites such as:

o Europa (http://europa.eu.int/index-en.htm)o the OECD website (http: www.oecd.org)o the WTO website (http: www.wto.org)

Major journals in the field include: International Organization; International Affairs(London); World Politics; The World Economy; International Studies Quarterly; TheJournal of World Trade; The Journal of Common Market Studies; The Journal ofEuropean Public Policy; American Political Science Review; Review of InternationalPolitical Economy; Journal of Economic Perspectives; World Development.

Robert Gilpin’s new Global Political Economy (2001) will be a core text, withchapters assigned in almost every week. We suggest that you purchase a copy.

Course Outline:

Week 1. 1. General Introduction to International Political Economy

2. The Construction of the Post-1945 International Economic Order:Theories of hegemonic stability, regime formation, and regime

maintenance.

Case: The General Agreement on Tariffs and Trade

Week 2. Market Integration through Politics and the Courts

Case: The European Single Market

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Week 3. Tensions in the World Economic System: Regionalism, and the politicsof trade linkages

Case: The North American Free Trade Agreement

Week 4. The Interplay between Ideas, Interests and Institutions

Case: The World Trade Organization and related IOs

Week 5. Domestic Politics Approaches to IPE

Case: Transatlantic Economic Relations

Week 6. Globalization and the Reformulation of the IPE Agenda.

Case: The Internet

Week 7. Inequalities of Power and Wealth : Conditionality and Redistribution

Cases: IMF/World Bank lending, USAID, EU structural funds, Lomeconvention and EU enlargement

Week 8. Future Directions in IPE: A Global Governance Agenda for the NewMillennium?

Cases: Three Declarations: Doha - UN Millennium – Johannesburg

1. Introduction AND The Construction of the Post-1945 InternationalEconomic Order:

Case: The GATT

Part I: Introduction

We will start this class with an introductory lecture on IPE as a field of enquiry, itsgoals and scope, and its relations to political science, international relations andeconomics. This will be followed by a class discussion. Please come prepared withquestions or comments on what you see at the major theoretical perspectives on theacademic study of international political economy in the last three decades.

Required Readings:

Gilpin, Robert (2001), Global Political Economy, chapters 1 & 4. Skim chapters 2 &3 for background.

Lawton, Thomas; Rosenau, James; and Verdun, Amy, “Introduction: Looking Beyondthe Confines,” in Lawton, Rosenau, and Verdun (eds.), Strange Power: Shaping theParameters of International Relations and IPE (2000).

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Woods, Ngaire, “International Political Economy in an Age of Globalization,” in JohnBayliss and Steve Smith, The Globalization of World Politics (2001).

Krugman, Paul and Obstfeld, Maurice, International Economics: Theory and Policy(1999 or any edition since 1985) pp.1-9.

Katzenstein, Keohane and Krasner, ‘International Organization and the State of WorldPolitics’, International Organization, Autumn 1998

Part II: The Construction of the Post-1945 International Economic Order

Questions

a) How useful is hegemonic stability theory in explaining the nature ofthe post-45 international economic order? How does it compete withalternative explanatory paradigms, including Ruggie’s concept of‘embedded liberalism'?

b) To what extent was regime theory developed to supplant or supplementhegemonic stability theory? Under what condition is which approach mostrelevant?

Required Readings

Skim this reading for the basics on HST:

Krasner, Steve, 'State Power and the Structure of International Trade’ in Frieden andLake, eds, International Political Economy, (2000)

Then read:

Lake, David, 'British an American Hegemony Compared: Lessons for the Current Eraof Decline', in Frieden and Lake, eds, International Political Economy

Gilpin, Robert, Global Political Economy, chapter 9.

Ikenberry, John, ‘A World Economy Restored: Expert Consensus and the Anglo-American Postwar Settlement’, IO, Winter 1992.

Keohane, Robert, After Hegemony (1984), chs. 8 and 9.

Ruggie, J.G., ‘International Regimes, Transactions and Change: EmbeddedLiberalism in the Postwar Economic Order’, IO 1982 (vol. 36.2 and vol. 35.4 ) and S.Krasner (ed.), International Regimes (1983), pp. 195-232.

Strange, Susan, ‘Persistent Myths of Lasting Hegemony’, IO, 1987.

Recommended readings

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Eichengreen, Barry, ‘Hegemonic Stability Theories in the International MonetarySystem’ in Frieden and Lake, eds, International Political Economy

Finlayson, Jack, and Mark Zacher, ‘The GATT and the regulation of trade barriers:regime dynamics and functions,’ in S. Krasner (ed.), International Regimes (1983),pp. 273-314.

Lairs and Skimmer, International Political Economy: The Struggle for Power andWealth (1993), pp. 61-95, ‘The Political Economy of American Hegemony’.

Babai, Don, ‘The GATT,’ in Joel Krieger (ed.), Oxford Companion of World Politics(1993), pp. 342-348.

Jackson, John H., World Trade and the Law of the GATT, ch. 1-2 (1969).

Walter, A., World Power and World Money (1993), chs. 1-3, 6-7.

Gardner, R., Sterling-Dollar Diplomacy in Current Perspective (1980).

Frieden, Jeffry, ‘Sectoral Conflict and US Foreign Economic Policy, 1914-1940’, IOWinter 1988.

Culbert, Jay, ‘Wartime Anglo-American Talks and the Making of the GATT’, TheWorld Economy 10 (4), 1987.

Van Dormael, A., Bretton Woods (1978).

Nau, H., The Myth of America’s Decline, part II and III (1990).

Dam, Kenneth, The GATT (1970).

Diebold, W., The End of ITO (Princeton Essays, 1952).

Krugman, Paul, and Obstfeld, Maurice, International Economics, ch.19 (4th edn.,1994).

Bretton Woods Commission, Bretton Woods: Looking to the Future (1994).

Gowa, J., Closing the Gold Window (1983).

Calleo, David, The Imperious Economy (1982).

Triffin, R., Gold and the Dollar Crisis (1961).

Gilbert, M., The Quest for World Monetary Order (1980).

Solomon, R., The International Monetary System, 1945-81 (1982).

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Week 2. Market integration through Politics and the Courts

Case: The European Single Market as the paradigm case

Questions:

a) What are the different biases (or ‘prefered factors’) of alternative theoriesEuropean integration? How do they relate to IR and IPE theories in general?

b) What where the different phases towards the completion of the EuropeanSingle Market? What actors or forces were the driving force behind each ofthese phases? Specifically: why do authors disagree over the causal factorsthat led to the Single European Act and the implementation of the ‘Europe1992’ project? How much influence did supranational leadership andentrepreneurship have on the final outcome? What was the role ofmultinational business? How much can simply be explained throughintergovernmental bargaining? Is this confirmation of neo-functionalistpredictions? How would we know?

c) What are the problems associated with applying the principle of mutualrecognition in the European Union?

Required Reading:

For this session students should familiarize themselves (to the extent possible!) withthe relevant portions of The Treaties Establishing the European Communities, 1987and Treaty on European Union (also known as the Maastricht Treaty). The treaties areavailable online at http://ue.eu.int/amsterdam/en/traiteco/en/main.htm.

Also, do visit the EU site (http://europa.eu.int/), in particular on the single market.

For a very general introduction to the EU you may want to read: William Wallace,The Transformation of Western Europe (Royal Institute of International Affairs,1990) OR William Wallace, Regional Integration, Brookings, 1994

Analyzing the Single Market

Tsoukalis, Loukas, The New European Economy Revisited (2nd edn., 1997), skim pp.33-40 , read 61-78

Moravcsik, The Choice for Europe, pp 314-378. For a detailed story of “Europe1992”

Egan, Michelle, Constructing a European Market, OUP, 2001 (chapters 1-6; toydirective and conclusion)

Nicolaïdis, Kalypso, ‘Mutual Recognition of Regulatory Regimes: Some Lessons andProspects’, Regulatory Reform and International Market Openness (Paris OECDPublications, 1996). Repr. as part of the Jean Monnet Paper Series, Harvard LawSchool, 1997. Skip pp. 13-19.

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Majone, Giandomenico, “ The Rise of Statutory Regulation in Europe,” and “ TheEuropean Commission as Regulator,” Regulating Europe (1996), pp. 47-82. Skim

Nicolaïdis, Kalypso and Michelle Egan “Regional Policy Externality and MarketGovernance: Why Recognize Foreign Standards?” w/, in Journal Of European PublicPolicy, August 2001 [read EU part up to p463]:

Theory

Mattli, The Logic of Regional Integration, p19-40

Weiler, “Journey to an Unknown Destination: A Retrospective and Prospective of theEuropean Court of Justice in the Arena of Political Integration” in Journal ofCommon Market Studies, Vol 31, n4, Dec 1993. OR Weiler, Joseph, ‘TheTransformation of Europe’ in Yale Law Journal, 100/8, 2403-83.

Keohane, Robert, and Stanley Hoffmann, ‘Institutional Change in Europe in the1980s’, in The New European Community, ch. 1.

Pollack, “International Relations Theory and European Integration” JCMS, June 2001

Laffan et al, Europe’s Experimental Union, Ch 4

Kenneth Armstrong and Simon Bulmer, The Governance of the Single EuropeanMarket (1998), pp. 13-89 and 276-318; (read chapters on case studies according toyour particular interest).

Recommended readings

Mayes, The Evolution of the Single Market, Elgar 1997

Pierson, Paul, ‘The Path to European Integration: A Historical- InstitutionalistAnalysis’ in Sandholtz and Stone Sweet, European Integration and SupranationalGovernance (1998)

Pelkman, Jacques, European Integration, chs. 5-10 –This is for more detailedeconomic analysis.

Moravcsik, Andrew, ‘Preference and Power in the European Community: A LiberalIntergovernmentalist Approach’, in Simon Bulmer and Andrew Scott (eds.),Economic and Political Integration in Europe (1995), pp. 29-80.

Stone Sweet, and Sandholtz, ‘Integration, Supranational Governance, and theInstitutionalization of the European Polity’ in Sandholtz and Stone Sweet, EuropeanIntegration and Supranational Governance (1998).

Nicolaïdis, Kalypso and Raymond Vernon, ‘Competition Policy and Trade Policy inthe European Community,’ in Edward Graham (ed.), Competition Policy in aChanging World Economy (1997).

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Ross, Georges, Jacques Delors and European Integration (1995), pp. 16-50 and 227-247.

Dinan, Desmond, Ever Closer Union? (1994), pp. 39-64, 199-201, 206-227, 325-333.

Stevens, Christopher, ‘EU Policy for the Banana Market: The External Impact ofInternal Policies,’ in Wallace and Wallace (eds.), Policy-Making, pp. 325-351.

Duff, Andrew, ‘The Main Reforms,’ Maastricht and Beyond, Andrew Duff et al.(eds.), pp. 36-52.

Moravcsik, Andrew, ‘Negotiating the Single European Act,’ in Keohane and Hoffman(eds.), The New European Community, ch. 2.

Moravcsik, Andrew, The Choice for Europe: Social Purpose and State Power fromMessina to Maastricht (1998), ch. 3, pp. 159-237.

Wallace, Helen, and Alasdair Young, ‘The Single Market: A New Approach toPolicy,’ in Wallace and Wallace (eds.), Policy-Making, pp. 125-155.

Haas, Ernst B., ‘Technocracy, Pluralism and the New Europe,’ in Joseph S. Nye (ed.),International Regionalism: A Reader (1968), pp.149-166. [Also can be found asStephen R. Graubard (ed.), A New Europe? (1964), pp. 62-8.

Muttimer, D., ‘1992 and the Political Integration of Europe: Neo-FunctionalismReconsidered.’

Sandholtz, W., and J. Zysman, ‘1992: Recasting the European Bargain,’ in A.Bressand, ‘Futures for Economic Integration,’ in O’Neill (ed.), Politics, pp. 283-287,300-306, 311-314.

Smith, Dale, and Jürgen Wanke, ‘1992: Who Wins? Who Loses?’ in Alan W. Cafrunyand Glenda G. Rosenthal (eds.), The State of the European Community II: TheMaastricht Debates and Beyond (1993), pp. 353-372.

Allen, David, ‘Competition Policy: Policing the Single Market,’ in Wallace andWallace (eds.), Policy-Making, pp.157-183.

“The Case for Co-operating” The Economist, August 24, 2002, p. 64.

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3. Tensions in the World Economic System: The Role of Regionalism and thepolitics of trade linkages (eg human rights, environment and labor standards)

Case: The North American Free Trade Agreement

Questions:

a) What is/was the case for NAFTA? The case against? How and by whom was the case for and against made at the time? And how has it evolved?

b) What is the rationale for designing “trade and...” agreements such asthat included in NAFTA? More generally: How should wesystematically think about ‘trade and…’ issues’? When shouldenvironmental, labour or other such domestic standards be consideredlegitimate national regulations and when should they be treated asprotectionist devices? What did the GATT have to say on these issues?

c) What are the sources and implications of the tension betweenregionalism and multilateralism? Under what conditions are thesecomplementary or contradictory?

Required Readings

1. General on Regionalism and multilateralism

Gilpin, Robert, Global Political Economy, chapter 13.

Fawcett, Louise, and Andrew Hurrell (eds.), Regionalism in World Politics (OUP,1995), introduction, conclusion, chs 2, 3, 4 (SKIM rest of the book).

Mattli, Walter, The Logic of Regional Integration, p. 41-67 and p. 139-188.

Tovias, Alfred, “Regional Blocks and International Relations: Economic Groupingsor Political Hegemons?” in Lawton et al, Strange Power

Ruggie, Multilateralism: The Anatomy of an Institution,’ in Ruggie, MultilateralismMatters, (1993), OR more detailed in International Organization, Summer 1992.

2. NAFTA introduction

Cameron, M. and Tomlin, B. (2001). The Making of NAFTA: How the Deal was Donechapters 1, 3 and conclusion.

Hoebing, Weintraub & Baer, NAFTA & Sovereignty, chapters 5 & 6.

3. NAFTA & Labor

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Diamond, Stephen, “Labor Rights in the Global Economy: A Case Study of the NorthAmerican Free Trade Agreement,” in Compa, Lance and Diamond, Stephen (eds.),Human Rights and International Trade (University of Pennsylvania Press, 1996)

Adams, Roy and Singh, Parbudyal, “Early Experience with NAFTA_s Labor SideAccord,” Comparative Labor Law Journal 18:1

Summers, Clyde, “NAFTA’s Labor Side Agreement and International LaborStandards,” Journal of Small and Emerging Business Law (1999)

4. Beyond NAFTA: “Trade and …”

Bhagwati, Jagdish and Hudec, Robert, Fair Trade and Harmonization (MIT Press,1996), chapter 1.

Abbott, Frederick, “ The North American Integration Regime and its Implications forthe World Trading System,” in Weiler, J.H., The EU, The WTO, and the NAFTA,chapter 6.

Langille, B. (1997). “Eight ways to think about International Labour Standards.”Journal of World Trade 31, No. 4: 27-53.

van Liemt, Gijsbert, “International Trade and Workers’ Rights: More than aconditional? (1999).

Howse, R. and D. Regan (2000). “The Product/Process Distinction-- An Illusory Basisfor Disciplining Unilateralism in Trade Policy.” WTO Paper 3/9/00.

Recommended readings

NAFTA effect on labor conditions and gender issues

The North American Agreement on Labor Cooperation: Linking Labor Standards andRights to Trade Agreements: A Conference, 12(5) American University. Journal ofInternational Law and Policy, 815 (1997)iJoshua Brones, Paying the Price for NAFTA: NAFTA_s Effect on Women andChildren Laborers in Mexico, UCLA Women_s Law Journal

Ethan Kapstein, Trade Liberalization and the Politics of Trade Adjustment Assistance,137 International Labour Review, 501 516 (1998)

Paul Decker and Walter Corson, International Trade and WorkerDisplacement: Evaluation of the Trade Adjustment Assistance Program, 1995Industrial and Labor Relations Review

Elvia R Arriola, Voices from the Barbed Wires of Despair: Women in theMaquiladoras, Latina Critical Theory and Gender at the US-Mexico Border,

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49(3) DePaul Law Review (2000), 729

Nicole L Grimm, The North American Agreement on Labor Cooperation andthe Effects on Women Working in Mexican Maquiladoras, 48 AmericanUniversity Law Review 179 (1998)

Reka S Koerner, Pregnancy Discrimination in Mexico: Has MexicoComplied with the North American Agreement on Labor Cooperation?, 4(2)Texas Forum on Civil Liberties and Civil Rights (1999), 235

M. Desler and Peter J. Balint, The New Politics of American Trade: Trade, Labor andthe Environment (1999), chapters on NAFTA

Nicholas A. Stiglani, “Labor Diplomacy: A Revitalized Aspect of U.S. Foreign Policyin the Era of Globalization,” International Studies Perspectives 1, 177 (2000)

Mehmet, O., E. Mendes, et al. (1999). Towards a Fair Global Labour Market:Avoiding a New Slave Trade.

Environment

Frona M Powell, The North American Commission for EnvironmentalCooperation_s San Pedro Report: A Case Study and Analysis of the CECProcess, 6(3) The Environmental Lawyer (2000),

Esty, Daniel, Greening the GATT or Gatting the Greens? (1994), chs. 2, 5, 8 and 9.

Runge, Freer Trade, Protected Environment, Balancing Trade Liberalization andEnvironmental Interests, Council on Foreign Relations, 1993, pp.1-33.

Carolyn L. Deere and Daniel C. Esty , GREENING THE AMERICAS: NAFTA sLessons for Hemispheric Trade , MIT Press, September 2002

General:

Cameron, M. and R. Grinspun, Eds. (1993). The Political Economy of American FreeTrade, Selected chapters

Feddersen, C. T. (1998) “Focussing on Substantive Law in International EconomicRelations: The Public Morals of GATT's Article XX(a) and 'Conventional' Rules ofInterpretation.” Global Trade 75: 112-121Institution Project on Integrating the WorldEconomy, 1994. Chs 1, 2, 3.

Bhagwati, J., ‘Regionalism and Multilateralism’, in Ross Garnaut and Peter Drysdale(eds.), Asia Pacific Regionalism: Readings in International Economic Relations(1994).

Vogel, Trading Up, Consumer and Environmental Regulation in a Global Economy,Harvard University Press, 1995

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Martin, ‘The Rational State Choice of Multilateralism’ in Ruggie, MultilateralismMatters (1993), OR more detailed in International Organization, Summer 1992.

Bhagwati and Hudec, Fair Trade and Harmonization, MIT Press, 1996, volume 2,Chapter 3 on environment, chapters 4 and 5 on Labour standards, chapter 7 oncompetition law

Bhagwati and Hudec, Fair Trade and Harmonization, MIT Press, 1996, volume 1,chapters 1, 2, 3 (general), 4 (environment), 5 (labor), 10 an 12 (race to the bottom).

Sykes, Alan O., Product Standards for International Integrated Goods Market(Brookings, 1995). Chs. 4 and 5 and comments.

Trachtman, Joel, ‘Trade and…Problems, Cost-Benefit Analysis and Subsidiarity’ inEuropean Journal of International Law 9, 1998.

Beddoes, Zanny Minton, “From EMU to AMU?: The Case for Regional Currencies,”Foreign Affairs 78, no. 4 (July/August 1999)

Hausmann, Ricardo, “Should There Be Five Currencies or One Hundred and Five?”Foreign Policy, no. 116 (Fall 1999)

Sachs, Jeffrey and Larrain, Felipe, “Why Dollarization Is More Straitjacket ThanSalvation,” Foreign Policy, no. 116 (Fall 1999)

Ohmae, Kenichi The End of the Nation State: The Rise of Regional Economies(1995).

Hoebing et al. (eds.), NAFTA and Sovereignty: Trade-offs for Canada, Mexico andthe United States (CSIS, 1996).

Lawrence, ‘Regionalism, Multilateralism and Deeper Integration,’ Brookings

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4. The Interplay between Ideas, Interests, and Institutions

Case: The World Trade Organization and related IOs

Questions

Please address these questions keeping in mind the interplay between ideas, interestsand institutions in explaining outcomes.

a) What were the developments, material and ideological, which led tothe launching of the Uruguay Round? Why were traditional GATT rules notadapted to the areas of services and intellectual property? How would youexplain the main characteristics of these new regimes and their redistributiveimplications?

b) What led to the creation of WTO? Who were the winners and losers inthis development?

c) On what grounds has the legitimacy of the WTO been questioned inthe last few years? And how could it be enhanced?

d) Inter-organization cooperation and competition: To what extent andhow does the WTO interact with other international organisations (WIPO,WHO, ITU, UNCTAD, ILO, Montreal Protocol)?

Required readings

General

Gilpin, Robert, Global Political Economy, chapter 8.

Background on GATT and World Trade System

The two best and most comprehensive overviews (try to skim both entirely, and readmore carefully the selected sections):

1) Trebilcock, Michael, and Robert Howse, The Regulation of InternationalTrade (1999). Read p1- 39

2) Hoekman, B. and M. Kostecki (2001). The Political Economy of the WorldTrading System., read p 1-46

John Jackson, The World Trading System, chapters 8 and 9. Introduction to GATTprinciples from the father of the field.

Uruguay Round and creation of WTO

For two short overviews:Schott, The Uruguay Round: An Assessment, Institute for International Economics,1994.

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Low, Patrick, Trading Free: The GATT and US Trade Policy, 1993. A good history ofthe Uruguay Round from an insider and a Concluding Chapter on the US andGATT/WTO.

Two pieces on the services negotiations in the Uruguay round, emphasizing learning(first) and the role of epistemic communities(second):

1) Nicolaidis, "Learning While Negotiating: How Services Got on theUruguay Round Agenda." in Nicolaïdis and Bressand, eds,Strategic Trends inServices - An Inquiry into the Global Services Economy, Harper and Row,New York, 1989

2) Drake and Nicolaidis, ‘Ideas, Interests and Institutionalization: ‘Trade inServices and the Uruguay Round,’ International Organization, Winter 1992,vol. 46, n1, pp. 37-100.

For details on agreements on institutions and specific areas:

Trebilcock, Michael, and Robert Howse, The Regulation of International Trade(1995).: Read 11 (services), 13 (intellectual property rights), 14 (trade and developingcountries), and 19 (Conclusion). I also recommend readings chapters on movement ofpeople, TRIPS and dispute resolution

Hoekman, B. and M. Kostecki (2001). The Political Economy of the World TradingSystem., read p 46-144 (institutions) and chapter 8 (TRIPS)

Vincent Cable, “The New Trade Agenda: Universal Rules Amid Cultural Diversity”International Affairs (Royal Institute of International Affairs 1944-), Vol. 72, No. 2,New Currents in Trade Policy Thinking. (Apr., 1996), pp. 227-246.

WTO from the Uruguay Round to Seattle: critical assessments

Compare and contrast: Economist articles on Seattle (Dec 4th and 11th 1999) andFOCUS newsletter, January 2000

Howse “From Politics to Technocracy – and Back Again: The Fate of the MultilateralTrade System” AJIL, Jan 2002

Howse and Nicolaidis “Legitimacy and Global Governance: Why a Constitution forthe WTO is a step too far?” in Roger Porter, Pierre Sauve, Arvind Subramanian andAmerico Zampetti, eds, Equity, Efficiency and Legitimacy: The Multilateral System atthe Millenium, Washington DC: Brookings Institution Press, 2001

Jose E. Alvarez, The WTO as Linkage Machine (in Symposium: The Boundaries ofthe WTO) American Journal of International Law, Vol. 96, No. 1. (Jan., 2002), pp.146-158

Steve Charnovitz, Triangulating the World Trade Organization (in Symposium: TheBoundaries of the WTO) American Journal of International Law, Vol. 96, No. 1.(Jan., 2002), pp. 28-55

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SKIM: Jeffrey J. Schott, ed, The WTO after Seattle, IIE, 2000

Highly recommended readings available on the Web (with a copy available at thecenter):

Eric Stein, International Integration and Democracy: No Love at First SightAmerican Journal of International Law, Vol. 95, No. 3. (Jul., 2001), pp. 489-534.Read specifically on WTO and WHO

Laird, Sam, Dolphins, Turtles, Mad Cows and Butterflies – A Look at the MultilateralTrading System in the 21st Century, Credit Research Paper, 00/16

WEB Sam Laird, The WTO agenda and developing countries, Nottingham : Centrefor Research in Economic Development and International Trade, University ofNottingham, 2000

The WTO and civil society / Jan Aart Scholte, Robert O'Brien and Marc Williams,Coventry : University of Warwick, 1998

Hannes L. Schloemann, Stefan Ohlhoff, "Constitutionalization" and DisputeSettlement in the WTO: National Security as an Issue of Competence AmericanJournal of International Law, Vol. 93, No. 2. (Apr., 1999), pp. 424-451. Readespecially if you are interested in the Helms-Burton Act

John H. Jackson, Afterword: The Linkage Problem-Comments on Five Texts (inSymposium: The Boundaries of the WTO)American Journal of International Law, Vol. 96, No. 1. (Jan., 2002), pp. 118-125

Jagdish Bhagwati, Afterword: The Question of Linkage (in Symposium: TheBoundaries of the WTO) American Journal of International Law, Vol. 96, No. 1.(Jan., 2002), pp. 126-134.

Howe and Nicolaidis "Enhancing WTO Legitimacy: Constitutionalization or GlobalSubsidiarity?" in Marco Verweij and Tim Josling (eds), Deliberately DemocratizingMultilateral Organization, special issue of Governance (2003).

Howse, “How to Begin to Think About the Democratic Deficit in the WTO?” 2002draft

Howse “Human Rights and the WTO: Whose Rights? What Humanity?”, 2002, draft

Intereconomics, The WTO and the Rights of Individuals

Abbott and Snidal “Why States Act Through Formal International Organisations”,Journal of Conflict Resolution, 42/1, feb 98

Kyle Bagwell and Petros Mavoidis, “It’s a Question of Market Access” AJIL, 2002jan.

Recommended readings

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Theory/ General

Martin and Simons, ‘International Institutions’, in International Organization (1998).

Odell, John, Negotiating the World Economic System, 2001

Kahler, International Institutions and the Political Economy of Integration, IIE 95,pp. 117-134.

Adler and Haas, ‘Conclusion: Epistemic Communities, World Order, and the Creationof a reflective Research Program,’ IO, Winter 1992.

Sebenius, ‘Challenging conventional explanations of international cooperation:negotiation analysis and the case of epistemic communities,’ InternationalOrganization, Vol. 46, 1, Winter 1992.

Nicolaïdis, Kalypso, “Regulatory Cooperation and Managed Mutual Recognition:Developing a Strategic Model,” in George Bermann et al, eds, TransatlanticRegulatory Cooperation, Oxford University Press, 2001

Uruguay Round and Beyond

ON THE WEB: GATT Secretariat, The Final Act of the Uruguay Round: A Summary,International Trade Forum, January 1994.

President Clinton, Letter to Congress on Trade Agreements Resulting From theUruguay Round, December 1993.

Croome, John, Reshaping the World Trading System, A History of the Uruguay Round(WTO, 1995), skim for a detailed history

Hoekman, B.M., ‘New Issues in the Uruguay Round and Beyond’, The EconomicJournal, November 1993.

Bhagwati, Jagwish, The World Trading System at Risk (1991).

The WTO and civil society : a critique / Rorden Wilkinson, Manchester : Departmentof Government, University of Manchester, 2000.

Cowhey, Peter, and Jonathan Aronson, Managing the World Economy (1993), chs. 4,8, 9, 10.

Kenen, Peter (ed.), Managing the World Economy (1994), chs. 3, 9 and 10.

Graham, Edward, and David Richardson (ed.), Competition Policy in a ChangingWorld Economy, (1997), chs. 1 and 17 (overview of the issues and recommendations).

Kuttner, Robert, The End of Laissez-Faire: National Purpose and the GlobalEconomy After the Cold War (1991), ch. 1.

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Nicolaidis, Kalypso, ‘International Trade in Information-Based Services: Beyond theUruguay Round,’ in William Drake (ed.), The New Information Economy (1995).

Nicolaidis, Kalypso, ‘Non-Discriminatory Mutual Recognition: An Oxymoron in theNew WTO Lexicon?’ in Petros Mavroidis and Patrick Blatter (eds.), NonDiscrimination in the WTO: Past and Present, Journal of World Trade (University ofMichigan Press, World Trade Forum series, 1999).

Nicolaidis, K and Joel P. Trachtman. “From Policed Regulation to ManagedRecognition: Mapping the Boundary in GATS,” in, Pierre Sauve and Robert M. Stern,eds., Services 2000: New Directions in Services Trade Liberalization, WashingtonD.C.: Brookings Institution Press, 2000Jackson, in Kenen (ed.), Managing the WorldEconomy, IIE, 1995, ch. 3, pp. 131-171.

Tickner, Ann, Gender in International Relations: Feminist Perspectives on AchievingGlobal Security (1992), ch. 3: Three Models of Man: Gendered Perspectives onEconomic Security’, pp. 67-96.

Richardson, Neil, ‘International Trade as a Force for Peace,’ in Charles Kegley (ed.),Controversies in International Relations Theory (1995), pp. 281-294.

Cobb, Joe, ‘A guide to the New GATT Agreement,’ Backgrounder (May 1994).

Nguyen, T., C. Perroni and R. Wigle, ‘An Evaluation of the Draft Final Act of theUruguay Round’, The Economic Journal, November 1993.

Feketekuty, Geza, The New Trade Agenda, Group of Thirty, Occasional Paper 40, pp.1-36.

Graham and Richardson, Global Competition Policy, IIE, 1997, chs. 1, 8, 17

Ludlow, Peter, ‘The Future of the International Trading System,’ in Brad Roberts(ed.), US Foreign Policy After the Cold War (MIT, 1993)

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5. Domestic Politics Approaches to IPE:

Case: Transatlantic Economic Relations Questions

Questions:

a) How do the internal characteristics of the US and the EU affect their role inthe global economy?

b) What factors – domestic/systemic- on both sides explain the evolution oftransatlantic economic relations and in particular trade conflicts related toprotectionist legislation or different standards for food, products or services?Are domestic level explanations the most fruitful in this particular case, whyor why not?

c) More specifically: What are the relative strengths and weaknesses ofPutnam’s two level game approach vs domestic structure approaches to IPE ?

Required readings:

Theory

Gilpin, Robert, Global Political Economy, chapter 7.

Putnam, R., ‘Diplomacy and Domestic Politics: the Logic of Two-Level Games’, IO42, 3, 1988. Reproduced in Double-Edged Diplomacy.

Moravcsik, Andrew ‘Integrating International and Domestic Theories of InternationalBargaining,’ in Evans, Peter B, Harold K. Jacobson, and Robert D Putnam (eds.),Double-Edged Diplomacy: International Bargaining and Domestic Politics (1993),pp. 3-42. Read other chapters.

Milner, Interests, Institutions and Information (1997), p1-66

Gourevitch, ‘The Second Image Reversed’, IO 32 (4), 1978.

Keohane and Milner, Internationalization and World Politics (1996) chs. 1-3; Milnerand Simmons, IO special issue , 1999.

Garret, in International Organization, Autumn 1998 or Garrett Partisan Politics inthe Global Economy 1998

Ikenberry, Lake and Mastanduno, IO 42 Winter 1988.

Edward D. Mansfield, Marc L. Busch, The Political Economy of Nontariff Barriers: ACross-National Analysis, International Organization, Vol. 49, No. 4. (Autumn, 1995),pp. 723-749

US and EU

Read parts on MRAs from Week 2 : Nicolaidis, 1997 and Nicolaidis and Egan, 2001.

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Stefaan Smis et al, “The EU-US Compromise on the Helms-Burton and D’AmatoAct” AJIL 93/1, jan 99

Michael Smith, Stephen Woolcock, “Learning to Cooperate: The ClintonAdministration and the European Union (in Setting an Agenda)” , InternationalAffairs (Royal Institute of International Affairs 1944-), Vol. 70, No. 3. (Jul., 1994),pp. 459-476.

Michael Bailey, David W. Brady, “Heterogeneity and Representation: The Senate andFree Trade,” American Journal of Political Science, Vol. 42, No. 2. (Apr., 1998), pp.524-544

Vernon, Spar and Tobin, Iron Triangles and Revolving Doors (1991), pp.1-18.

VanGrasstek, ‘Is the Fast Track Really Necessary’, in Journal of World Trade, April97.

Nicolaidis and Meunier, "Revisiting Trade Competence in the European Union:Amsterdam, Nice, and Beyond", in Madeleine O. Hosli, Adrian van Deemen andMika Widgren (eds.), Institutional Challenges in the European Union, London/NewYork: Routledge 2002

Hindley, ‘New Institutions for Transatlantic Trade?’ in International Affairs, 75,1,1999

Meta-narratives

Nicolaïdis, Kalypso, and Robert Howse, “’This is my Utopia’ : Narrative as Power”

with Robert Howse, in Journal Of Common Market Studies, Special Anniversaryissue, 2003 and Comments by John Peterson

Kagan, “Power and Weakness” reproduced in Prospect as “American Power andEuropean Weakness”, Sept 2002

Recommended readings

Johnson, ‘Article 113 Committee’, Chatham House Papers, 1998.

Berman, ‘Regulatory Cooperation Between the European Commission and USadministrative Agencies’, The Administrative Law Journal of the AmericanUniversity, Vol. 9-4, Winter 1996.

Meunier and Nicolaidis, “Who Speaks for Europe? The Delegation of TradeAuthority in the European Union,” Journal of Common Market Studies, vol 37, n3,September 1999, pp477-501 ; to be reprinted in Madeleine Holsti, ed. 2000

Polanyi, The Great Transformation.

Rogowski, Ronald, Commerce and Coalitions.

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Katzenstein, Small States and World Markets (1985).

Nicolaidis, Kalypso, ‘Minimizing Agency Costs in Two-Level Games: Lessons fromthe Trade Authority Controversies in the United States and the European Union’ inRobert Mnookin and Larry Susskind, Negotiating on Behalf of Others (1999).

Keohane, Robert, ‘Reciprocity in International Relations’, InternationalOrganization, Winter 1986.

Putnam, R., and Bayne, N., Hanging Together (1987).

Kreuger, Anne, The Political Economy of American Trade Policy (1996).

Nicolaidis, Kalypso, and J. Schmidt, ‘Exploring a New Paradigm for TradeDiplomacy: Managed Mutual recognition between the United States and the EuropeanUnion,’ in Proceedings of the European Union Community Association, WorldConference, Office of Publications of the European Community, Brussels, 1997.

Frieden, J., ‘Invested Interests: the Politics of National Economic Policies in a Worldof Global Finance’, IO 45, 4, August 1991.

Kaplan, Edward, American Trade Policy 1923-1995 (1996).

Thurow, Lester, Head to Head: The Coming Economic Battle Among Japan, Europeand America, (1993), ch. 8, pp. 245-258.

6. Globalization and the Reformulation of the IPE Agenda

Case: The Internet

Questions:

a) Are the current trends in the international political economy labelled‘globalization’ of a qualitatively different character from previous increasesin interdependence?

b) What are the alternative views on the effect of globalization on thenation-state? How are we to redefine the boundaries and forms of

sovereignty in the globalization era?

c) What are the challenges associated with the global governance of theinternet?

Required Readings:

Gilpin, Global Political Economy, chapters 5 and 6.

Lawton, Rosenau and Verdun, eds, Strange Power, chapters 4, 5, 7, and 11.

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Clark, Ian Globalization and International Relations Theory, Oxford University Press,1999

Kierzkowski, Europe and Globalization

Geoffey Hart, Globalization and Governance Routledge, 1999

Ruggie, ‘Territoriality and Beyond: Problematizing Modernity in InternationalRelations,’ IO, 46, (Winter 1993). Reproduced as ch. 7 in Ruggie Constructing theWorld Polity (1998).

Hirst, P. and G. Thompson (1997). Globalization in Question : the InternationalEconomy and the Possibilities of Governance

Scholte, J. A. (2000). Globalization: A Critical Introduction

Scholte, J. A., A. M. Goetz, et al. (2000). Contesting Global Governance:Multilateral Economic Institutions and Global Social Movements

Recommended Readings

Nye, Understanding International Conflicts, ‘Power and Interdependence in theInformation Age’, pp.197-204.

Lawrence, Brossard and Ito, A Vision for the World Economy, Openness, Diversityand Cohesion, IIE, 1996, esp. chs. 4 and 5.

Pieterse, Global Futures-Shaping Globalization, Zed Books, 2000

Foreign Policy, Globalization: The Debate, Special Issue, Summer 1997, esp. articlesby Rodrick, Attali, Moisy and Kobrin.

Rothschild, Emma, ‘Globalization and the Return of History’, Foreign Policy,Summer 1999, p. 106.

Soros, ‘Capitalism’s Last Chance’ in Foreign Policy, Winter 1998-99, p.55.

Sachs, ‘International Economics: Unlocking the Mysteries of Globalization,’ ForeignPolicy, Spring 1998, p. 97.

Recommended Readings

Strange, Susan, ‘The State of the State’ in The Retreat of the State, the Diffusion ofPower in the World Economy (1996).

Gilpin, Robert, The Political Economy of International Relations (1987), pp. 364-408,‘The politics of international trade.’

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Gelber, Sovereignty through Interdependence, Kluwer Law, esp. introduction andconclusion.

Boyer and Drache, State and Markets: The Limits of Globalization (1996),introduction and ch. 7.

Bretton Woods Commission, Bretton Woods: Looking to the Future (1994).

Kenen, P., Managing Exchange Rates (RIIA, 1988).

Destler, I.M. and Henning, C.R., Dollar Politics (IIE, 1989).

Cooper, R., Can Nations Agree? (1989).

Ostry, Sylvia, Governments and Corporations in a Shrinking World (1990).

O’Brien, R., Global Financial Integration: The End of Geography (1991).

Reich, R., The Work of Nations (1991).

Cowhey and Aronson, Managing the World Economy (1993).

US Congress, Office of Technology Assessment, Competing Economies: America,Europe and the Pacific Rim (Oct. 1991).

Graham, E. and Krugman, P., Foreign Direct Investment in the United States (IIE,2nd edn., 1991).

Humbert, Marc (ed.), The Impact of Globalization on Europe’s Industries (1993).

Womack, James et al., The Machine that Changed the World (MIT, 1990).

Ohmae, Kenichi, The Borderless World (1991).

OECD, Globalization of Industrial Activities (1992).

OECD, Technology and the Economy: The Key Relationships (1992); StrategicIndustries in a Global Economy (1991).

Strange, S. and Stopford, J., Rival States, Rival Firms (1991).

Kapstein, E.B., ‘Supervising International Banks: Origins and Implications of theBasle Accord’, Princeton Essays in International Finance, 185, Dec. 1991.

Martin, Lisa L., Coercive Cooperation: Explaining Multilateral Economic Sanctions(1991).

Dobson, W., Economic Policy Coordination (1991).

Gilpin, Robert, Global Political Economy, chapter 13.

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Week 7: Inequalities of Power and Wealth : Conditionality andRedistribution

Cases: IMF/World Bank lending, USAID, EU structural funds,Lome convention and EU enlargement

Questions:

a) What are the most important (domestic, external) determinants ofinequalities across countries? Has globalization increased or decreasedinequalities in the world over time? Discuss both the evidence and theunderlying theories

b) To what extent do institutions of global governance, reflect, magnify orconversely mitigate international inequalities in wealth and power? Discusswith regards to the use of conditionality and redistribution mechanisms in theWorld Bank, IMF, USAID, EU.

c) What are the different faces of the anti-globalization movement?

Required Readings:

Gilpin, Robert, Global Political Economy, chapters 10 & 12.

Held and Mc Grew, Globalization and Anti-Globalization

Stiglitz, Globalization and Its Discontents

Bamyeh, Mohammed, The Ends of Globalization

Equity in International Relations: A Third World PerspectiveCedric GrantInternational Affairs (Royal Institute of International Affairs 1944-),Vol. 71, No. 3, Ethics, the Environment and the ChangingInternational Order. (Jul., 1995), pp. 567-587.Stable URL: http://links.jstor.org/sici?sici=0020-5850%28199507%2971%3A3%3C567%3AEIIRAT%3E2.0.CO%3B2-4Citation / Abstract | Page of First Match | Print | Download

121.Ethics, the Environment and the Changing International OrderHenry ShueInternational Affairs (Royal Institute of International Affairs 1944-),Vol. 71, No. 3, Ethics, the Environment and the ChangingInternational Order. (Jul., 1995), pp. 453-461.

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Nicolaidis “Order and Justice Beyond the Nation-State: Europe’s CompetingParadigms” with Justine Lacroix, in Rosemary Foot, John Gaddis and Andrew Hurrell(eds), Order and Justice in International Relations (Oxford: OUP, 2003).

“GATT”, in Rosemary Foot, John Gaddis and Andrew Hurrell ( eds), Order andJustice in International Relations (Oxford: OUP, 2003).Nicoladis, "Fostering Social Inclusion in Central and Eastern Europe: The Role ofEU Accession Conditionality" w/ Heather Grabbe, World Bank Working Paper 39,2000

Susan Marks @ Big Brother is Bleeping us @ see Alvarez week 4Stephan Haggard, Marc Levy and Andrew Moravcsik, Nicolaidis "Integrating theTwo Halves of Europe: Theories of Interests, Bargaining and Institutions," with inRobert Keohane, Stanley Hoffmann and Joseph Nye, eds., After the Cold-War: StateStrategies and International Institutions in Europe, 1989-1991, Cambridge: HarvardUniversity Press, June 1993

Stephen Haggard and Sylvia Maxfield, “The Political Economy of FinancialInternationalization in the Developing World,” International Organization, 50: 1,1996, pp. 35-68.

Rodrik, Dani “Why is there Multilateral Lending?,” CEPR Discussion Paper, no.1207, available at Queen Elizabeth House

Bird Graham, “The International Monetary Fund and Developing Countries: AReview of the Evidence and Policy Options,” International Organization, 50, 3, pp.477-512.

Jacques Polack, “The Changing Nature of IMF Conditionality,” OECD WorkingPaper, available at Queen Elizabeth House

Krugman and Obstfeld, “Trade Policy in Developing Countries,” in theirInternational Economics

Services and E-Commerce

Drake, and K. Nicolaidis, ‘Global Electronic Commerce and the General Agreementon Trade in Services: The "Millennium Round" and Beyond,’ with William J. Drakein, Pierre Sauve and Robert M. Stern (eds.), Services 2000: New Directions inServices Trade Liberalization (Brookings Institution Press, 1999).

Sauve, ‘Introduction’ in , Pierre Sauve and Robert M. Stern (eds.), Services 2000:New Directions in Services Trade Liberalization (Brookings Institution Press, 1999).

Recommended Readings:

Nelson, Joan, ed., Economic Crisis and Policy Choice: The Politics of Adjustment inthe Third World (1990)

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Blustein, Paul, The Chastening: Inside the Crisis that Rocked the Global FinancialSystem and Humbled the IMF, New York, 2001. (more narrative than academic, but agreat, revealing read)

Rodrik, Dani, King Kong Meets Godzilla: the World Bank and the East AsianMiracle, 1994.

Anna Leander, “Strange Looks on Developing Countries,” in Lawton, et al, StrangePower.

Nicolaidis, " Eastern European Trade in the Aftermath of 1989: Did InternationalInstitutions Matter?" in Robert Keohane, Stanley Hoffmann and Joseph Nye, eds.,After the Cold-War: State Strategies and International Institutions in Europe, 1989-1991, Cambridge: Harvard University Press, June 1993

8. Future Directions in IPE: A Global Governance Agenda for the NewMillennium?

Cases: Three Declarations: Doha - UN Millennium - Johannesburg

This will be a relatively open session where we will discuss how current issues in theinternational political economy are affecting IPE as a field of study. As a way offraming the issue we will look at three “declaratory” strategies (cases above) and whatthey imply

Questions:

a) What are the broad principles reflected in the Doha - UN Millennium –Johannesburg Declarations? What are the mechanisms for theirimplementation? How would we assess their effectiveness?

b) What are the factors that are likely to shape the global economic governancein the next decade?

c) What are the alternative paradigms for global economic governance?

Required readings:

-Texts of the three declarationsBalancing Trade and the EnvironmentDuncan BrackInternational Affairs (Royal Institute of International Affairs 1944-), Vol. 71,No. 3, Ethics, the Environment and the Changing International Order. (Jul.,1995), pp. 497-514Eco-FundamentalismDeepak LalInternational Affairs (Royal Institute of International Affairs 1944-), Vol. 71,No. 3, Ethics, the Environment and the Changing International Order. (Jul.,1995), pp. 515-528

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World Health Organization : World Trade Organization, WTO agreements & publichealth : a joint study by the WHO and the WTO Secretariat, Geneva, 2002

Morgan et al. (eds.), New Diplomacy in the Post-Cold War Era, p. 213 (trade andenvironment).

Nicolaïdis, Kalypso, and Robert Howse, The Federal Vision: Legitimacy and Levelsof Governance in the US and the EU, Oxford University Press, 2001

International Labor Organization, Defending Values, Promoting Change: SocialJustice in a Global Economy (1994), pp. 54-63.

Sengenberger, Werner, Labour Standards in the International Economy: Challengesand Perspectives (1992), pp. 11-24.

Borrus, Michael, Steve Weber and John Zysman, ‘Mercantilism and Global Security’,The National Interest, Fall 1992.

Robert Reich, The Work of Nations: Preparing Ourselves for the 21st CenturyCapitalism (1991), pp. 243-317.

15 October 2002