Professor Danny Unger                                                                                         POLS 684

Tuesdays, 6:30-9:10, DuSable 464                                                                         Fall 2009

Office Hours: T, W, Th 2-3                                                                                     7537042




International Political Economy



This is a graduate level introductory course. It offers a selective overview of theories and topics in international political economy, helping students understand the domestic and international politics of foreign economic policymaking. No specific background is necessary in order to benefit from exposure to the material covered in this course. A solid understanding of basic concepts in political science and international relations, of course, would be helpful. Some students will be cowed by the use of concepts from the field of economics and the occasional appearance of numbers, tables and graphs. Such students may want to consider picking up an introductory (undergraduate) text in international political economy to complement the assigned readings. All students not already doing so might want to follow international political and economic news by reading The Financial Times or The Economist.


All students are expected to participate in class discussions.


During our first meeting on August 25th we will decide on an alternative meeting time for the scheduled class on September 8th.




Jeffrey A. Frieden, Global Capitalism, Its Fall and Rise in the 20th Century (New York: W.W. Norton, 2006)

Paul Blustein, The Chastening (New York: Public Affairs, 2003)

John Ravenhill, Global Political Economy, 2nd edition (Oxford University Press, 2008)


Course Requirements:


General participation                                                                                                   30

Discussion papers and role as seminar leader                                                             30

-How useful are the key concepts presented in the readings? How are the concepts related to other concepts in the field? What policy or theoretical implications are suggested by the approach used in the reading? Does the reading help identify fruitful areas for future research?

In-class final exam                                                                                                      40

Schedule of Meetings and Readings



August 25th: Introduction to some key concepts and assignment of presentations


September 1st: Ordering the International Political Economy (125)


-David Held, et al. eds. Global Transformations chapter 1 (pp.32-86)

-John Gerard Ruggie, “International Regimes, transactions, and change: embedded liberalism in the postwar economic order,” International Organization, 36:2, Spring 1982, pp.195-231

-Jeffrey A. Frieden, Global Capitalism, Its Fall and Rise in the 20th Century (New York: W.W. Norton, 2006) 253-300

            Recommended readings:

            -Joseph Grieco and G. John Ikenberry, State Power and World Markets: the            International Political Economy (New York: WW Norton, 2003) pp.1-18

-Charles E. Lindblom, Politics and Markets (New York: Basic Books) pp.170-88

-Peter Singer, One World, The Ethics of Globalization (Yale University Press, 2002) pp.106-49

-Andrew Martin, “Labour, the Keynesian Welfare State, and the Changing International Political Economy,” in Richard Stubbs and G.R.D. Underhill, eds. Political Economy and the Changing Global Order (New York: St. Martin’s Press, 1994) pp. 60-74

            -Kevin H. O’Rourke and Jeffrey G. Williamson, “Transport Revolutions and          Common Market Integration,” and “Lessons from History,” Globalization and           History: The Evolution of a Nineteenth Century Atlantic Economy (MIT Press,            1999) pp.29-55, 269-87

            -John A. Hall, International Orders (Polity Press, 1996) chapter two (pp.33-66)


September 8th: Some Recent Historical Context for Today’s Global Capitalism (150)

            Class meeting to be re-scheduled


-Jeffrey A. Frieden, Global Capitalism, pp.13-27, 56-123, 173-250

            *chapter 4, pp.80-104

                        *chapter 5, pp.105-23

                        *chapter 9, pp.195-228

                        *chapter 10, pp.229-50


September 15th: Perspectives on IPE: Liberty, Equality, and National Status (45)


-Alexander Hamilton, “Report on Manufactures” in Crane and Amawi, eds. International Political Economy (Oxford: 1997) pp.37-47

            -Friedrich List, “Political and Cosmopolitical Economy,” in Crane and Amawi,      eds. International Political Economy (Oxford: 1997) pp.48-54

-Adam Smith, “Of the Principle of the Commercial or Mercantile System,” in Crane and Amawi, eds. International Political Economy (Oxford: 1997) pp.58-64

-Adam Smith, “Of Restraints Upon the Importation from Foreign Countries of Such Goods as Can Be Produced at Home,” in Crane and Amawi, eds. International Political Economy (Oxford: 1997) pp.65-71

            -David Ricardo, “On Foreign Trade,” in Crane and Amawi, eds. International        Political Economy (Oxford: 1997) pp.72-82

            -Karl Marx and Friedrich Engels, “Manifesto of the Communist Party,” in Crane   and Amawi, eds. International Political Economy (Oxford: 1997) pp.86-89


September 22nd: Domestic Politics and International Trade (90)


-Michael J. Hiscox, “The Domestic Sources of Foreign Economic Policies,” and Gilbert R. Winham, “The Evolution of the Global Trade Regime,” in Ravenhill, pp.95-133 and 137-69

-Mancur Olson, The Rise and Decline of Nations, pp.17-35

            Recommended readings:     

-Joseph Grieco and G. John Ikenberry, State Power and World Markets: the            International Political Economy (New York: WW Norton, 2003) pp.19-56

            -Kishore Gawande and Bernard Hoekman, “Lobbying and Agricultural Trade        Policy in the United States,” International Organization 60:3, pp.527-61

            -Richard Rosecrance, The Rise of the Trading State, pp.22-43

-Joan Edelman Spero and Jeffrey A. Hart, “International Trade and Domestic        Politics,” The Politics of International Economic Relations, 6th edition (Belmont,        CA: Thomson/Wadsworth, 2003) pp.66-116

            -Marc L. Busch, Trade Warriors: States, Firms, and Strategic Policy in High          Technology Competition (N.Y.: Cambridge University Press, 1999) Ch.1-2     -Edward D. Mansfield, Helen V. Milner, and B. Peter Rosendorff, “Free to Trade:   Democracies, Autocracies, and International Trade,” American Political Science             Review 94:2, June 2000, pp.305-21

            -Helen V. Milner and Benjamin Judkins, “Partisanship, Trade Policy, and   Globalization: Is There a Left-Right Divide on Trade Policy?” International            Studies Quarterly 48, 2004, pp.95-119

-Kerry A. Chase, “Economic Interests and Regional Trading Arrangements: The    Case of NAFTA,” International Organization 57, Winter 2003, pp.137-74

*-Joanne Gowa and Edward D. Mansfield, “Power Politics and International         Trade,” American Political Science Review 87:2, June 1993, pp.408-420

            *-Kanishka Jayasuriya, “Embedded Mercantilism and Open Regionalism: The        Crisis of a Regional Political Project,” Third World Quarterly 24:2, 2003

-I.M. Destler, American Trade Politics (Washington, D.C.: Institute for International Economics, 1992) pp.3-9, 173-196

-Helen V. Milner, “Resisting the Protectionist Temptation: Industry and the           Making of Trade Policy in France and the United States during the 1970s,”       International Organization 41, Autumn 1987, pp.639-65

-Geoffrey Garrett and Peter Lange, “Internationalization, Institutions, and             Political Change,” International Organization 49:4, 1995, pp.627-55


September 29th: The United States and Hegemonic Stability Theory (85)


-Vinod K. Aggarwal and Cedric Dupont, “Collaboration and C-Ordination in the Global Political Economy,” in Ravenhill, pp.67-92

*-Stephen D. Krasner, “State Power and the Structure of International Trade,” World Politics, 28, April 1976, pp.317-47

-Judith L. Goldstein, Douglas Rivers and Michael Tomz, “Institutions in International Relations: Understanding the Effects of the GATT and the WTO on World Trade,” International Organization, 61:1, January 2007, 37-67

Recommended readings:

-C.P. Kindleberger, “The Rise of Free Trade in Western Europe,” Journal of           Economic History 35:1, March 1975, pp.20-55

*-Stephan Haggard, “The Institutional Foundations of Hegemony: Explaining the             Reciprocal Trade Agreements Act of 1934,” International Organization 42:1,             Winter 1988, pp.91-119

-David Leyton-Brown, “The Political Economy of North American Free Trade,” in Richard Stubbs and G.R.D. Underhill, eds. Political Economy and the Changing Global Order (New York: St. Martin’s Press, 1994) pp.352-65

-Pierre Martin, “The Politics of International Structural Change: Aggressive Unilateralism in American Trade Policy,” in Richard Stubbs and G.R.D. Underhill, eds. Political Economy and the Changing Global Order (New York: St. Martin’s Press, 1994) pp. 439-52

-Bernard Hoekman and Michael Kostecki, The Political Economy of the World Trading System: from GATT to WTO, 2nd edition (N.Y.: Oxford University Press, 2001) pp.1-142


October 6th: Global finance and international monetary institutions (105)


-Eric Helleiner, “The Evolution of the International Monetary and Financial System,” and Louis W. Pauly, “The Political Economy of Global Financial Crises,” in Ravenhill, pp.213-39 and 241-69

-William W. Grimes, Currency and Contest in East Asia (Cornell University Press, 2009) pp.10-35
-Andrew Walter, Governing Finance (Cornell University Press, 2008) 8-28
Recommended readings:

-Charles R. Morris, The Two Trillion Dollar Meltdown (Public Affairs, 2008) 1-35

*-William Bernhard, J. Lawrence Broz, William Roberts Clark, “The Political Economy of Monetary Institutions,” International Organization 56:4, 2002, pp.693-723

-Gilpin, Global Political Economy, chapters nine and ten, pp.234-77

*-Held et al. Global Transformations, chapter four, pp.189-235

-Joseph Grieco and G. John Ikenberry, “The Economics of International Money and Finance,” State Power and World Markets: the International Political Economy (New York: WW Norton, 2003) pp.57-91

-Benjamin Cohen, “Phoenix Risen. The Resurrection of Global Finance,” World Politics 48, January 1996, pp.268-96

-Eric Helleiner, States and the Reemergence of Global Finance: From Bretton Woods to the 1990s (Ithaca: Cornell University Press, 1994) pp.1-17, 21-50, 146-68, 195-209

-John B. Goodman and Louis W. Pauly, “The Obsolescence of Capital Controls? Economic Management in an Age of Global Markets,” World Politics 46:1, October 1993, pp.50-82

-Jonathan Kirshner, “Money is Politics,” Review of International Political Economy, 10:4, 2003

-George E. Shambaugh, “The Power of Money: Global Capital and the Policy Choices in Developing Countries,” American Journal of Political Science, 48:2, pp.281-95

            -Andrew Walter, “Understanding Financial Globalization in International Political             Economy,” in Nicola Phillips, ed. Globalizing IPE, pp.141-64

-Mark Thatcher, “Varieties of Capitalism in an Internationalized World,” Comparative Political Studies 37:7, September 2004, pp.751-80

-Scott J. Basinger and Mark Hallerberg, “Remodeling the Competition for Capital: How Domestic Politics Erases the Race to the Bottom,” American Political Science Review 98:2, May 2004, pp.261-76

            -Erica R. Gould, “Money Talks: Supplementary Financiers and International          Monetary Fund Conditionality,” International Organization 57, Summer 2003,        pp.551-86

            -Randall Stone, “The Political Economy of IMF Lending in Africa,” American      Political Science Review 98:4, pp.577-91


October 13th: Financial crises (175)


            - Paul Blustein, The Chastening (New York: Public Affairs, 2003) 1-174


October 20th: Developing countries and foreign direct investment (60)


-Pedro-Pablo Kuczynski and John Williamson, After the Washington Consensus (Washington, D.C.: Institute for International Economics, 2003) 1-19

-Frieden, Global Capitalism

            *chapter 13, pp.301-20

            *chapter 18, pp.413-34

Recommended readings:

            -Gilpin, Global Political Economy, chapters 11-12, pp.278-340

                        *chapter 12, pp.305-40

*-William Easterly, “To Help the Poor,” and “Solow’s Surprise: Investment is Not the Key to Growth,” in Easterly, The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the Tropics (MIT Press, 2001) pp.5-15, 47-69

            -Joseph Grieco and G. John Ikenberry, “Developing Nations and the World           Economy,” State Power and World Markets: the International Political Economy       (New York: WW Norton, 2003) pp.258-83

            *-Robin Broad, John Cavanagh, Walden Bello, “Development: The Market is not Enough,” in Jeffrey A. Frieden and David A. Lake eds. International Political         Economy: Perspectives on Global Power and Wealth, 3rd edition (N.Y.: St.        Martin’s Press, 2000) pp.392-403

            -Quan Li and Adam Resnick, “Reversal of Fortunes: Democratic Institutions and Foreign Direct Investment Inflows to Developing Countries,” International       Organization 57, Winter 2003, pp.175-211

            -Jeffrey A. Frieden, Debt, Development and Democracy: Modern Political             Economy and Latin America, 1965-1985 (Princeton University Press, 1991) pp.3-         


            -Andrew MacIntryre, “Institutions and Investors: The Politics of the Economic      Crisis in Southeast Asia,” International Organization 55:1, Winter 2001, pp.81-           122

            -Jeffrey Sachs, “The IMF and the Asian Flu,” American Prospect, March-April      1998

            -William Easterly, “What did Structural Adjustment Adjust? The Association of    Policies and Growth with Repeated IMF and World Bank Adjustment Loans,”           Journal of Development Economics 76, 2005, pp.1-22

            -Gabriella R. Montinola, “Who Recovers First? Banking Crises Resolution in         Developing Countries,” Comparative Political Studies, 36:5, June 2003, pp.541-       74

            -Marc L. Busch and Eric Reinhardt, “Developing Countries and the GATT/WTO Dispute Settlement,” Journal of World Trade 37:4, 2003, pp.719-35

*-Held et al. Global Transformations, chapter five, pp.236-82


October 27th: Varieties of capitalism (125)


-Frieden, Global Capitalism, 392-456

                        *chapter 19, pp.435-56

-Peter A. Hall and David Soskice eds. Varieties of Capitalism: The Institutional Foundations of Comparative Advantage(N.Y.: Oxford University Press, 2001) pp.1-68

            Recommended readings:

            *-Held et al., Global Transformations, chapter six

-Mark Beeson and Stephen Bell, “Structures, Institutions and Agency in the          Models of Capitalism Debate,” in Nicola Phillips, ed. Globalizing IPE, pp.116-40

-Carles Boix and Alicia Adsera, “Trade, Democracy and the Size of the Public Sector: the Political Underpinnings of Openness,” International Organization 56:2, 2002, pp.229-62

-Sarah M. Brooks, “Social Protection and Economic Integration: The Politics of Pension Reform in an Era of Capital Mobility,” Comparative Political Studies 35:5, June 2002, pp.491-523

            -Dennis Quinn, “Capital Account Liberalization and Financial Globalization,          1890-1999: A Synoptic View,” International Journal of Finance and Economics      8, 2003, pp.189-204

            -Kenneth F. Sheve, “Public Inflation Aversion and the Political Economy of          Macroeconomic Policymaking,” International Organization 58:1, pp.1-34

            -Beth A. Simmons and Zachary Elkins, “The Globalization of Liberalization:          Policy Diffusion in the International Political Economy,” American Political            Science Review 98:1, pp.171-89

-Ian Goldin and Kenneth Reinart, Globalization for Development (World Bank and Palgrave Macmillan, 2006) chapter six (pp.151-      92)

            -Jeffrey Williamson, The Political Economy of World Mass Migration:        Comparing Two Global Centuries (Washington: AEI Press, 2005)



November 3rd: Regional Economic Integration (85)


            -Edward D. Mansfield and Helen V. Milner, “The New Wave of Regionalism,”

            International Organization 53:3, Summer 1999, pp.589-626

            -Richard E. Baldwin, “The Causes of Regionalism,” World Economy 20:7,             November 1997, pp.865-88

            -John Ravenhill, “Regionalism,” in Ravenhill, pp.172-206

Recommended readings:

-Gilpin, Global Political Economy, chapter 13, pp.341-61

            -Joseph Grieco and G. John Ikenberry, State Power and World Markets: the            International Political Economy (New York: WW Norton, 2003) pp.149-58

            -Andrew Moravscik, The Choice for Europe: Social Purpose and State Power        from Messina to Maastricht, chapter one


November 10th: Globalization I (90)


-Anthony McGrew, “The Logics of Economic Globalization,” and Colin H. Hay, “Globalization’s Impact on States,” and Eric Thun, “The Globalization of Production,” in Ravenhill, pp. 277-311, 314-44, 346-70

            Recommended readings:

*-Gilpin, Global Political Economy, chapter 14, pp.362-76

            -Held et al., Global Transformations, chapters three, seven, pp.149-88, 327-75

                        *chapter 7, pp.327-75

*-Dani Rodrik, “Sense and Nonsense in the Globalization Debate,” in Jeffry A. Frieden and David A. Lake, eds. International Political Economy, 4th edition (NY: Bedford/St. Martin’s, 2000) pp.461-70

-David Andrew Singer, “Capital Rules: the Domestic Politics of International        Regulatory Harmonization,” International Organization 58:3, 2004, pp.531-65

            -Barbara Hogenboom, “Cooperation and Discord: NGOs and the NAFTA,” in       Non-State Actors in International Relations, eds. Bas Arts, Math Noortmann, Bob          Reinalda (Aldershot, England: Ashgate, 2001) pp.177-93


November 17th: Globalization II (120)


-Robert Hunter Wade, “Globalization, Growth, Poverty, Inequality, Resentment, and Imperialism,” and Caroline Thomas, “Globalization and Development in the South,” and Peter D. Dauvergne, “Globalization and the Environment,” in Ravenhill, pp.373-407, 410-44, 448-75

-Peter Evans, “Is an Alternative Globalization Possible?” Politics and Society 36:2, June 2008, 271-305

Recommended readings:

*-Held et al. Global Transformations, chapter eight, pp.376-413

*-Michael M. Weinstein and Steve Charnovitz, “The Greening of the WTO,” in Thomas Oatley, ed. The Global Economy, Contemporary Debates (Pearson Longman, 2005)

-Jeffrey Frankel and Andrew Rose, “Is Trade Good or Bad for the Environment? Sorting out the Causality,” Review of Economics and Statistics 87:1, pp.85-91

-David Vogel, “The Hare and the Tortoise Revisited: The New Politics of Consumer and Environmental Regulation in Europe,” British Journal of Political Science 33:4, October 2003, pp.557-80

-David S. Evans, “Who Owns Ideas? The War over Global Intellectual Property,” Foreign Affairs 81:6, 2002, pp.160-66

-Philip G. Cerny, “Globalization and the Changing Logic of Collective Action,” International Organization 49:4, 1995, pp.595-625

-Macartan Humphries, “Natural Resources, Conflict, and Conflict Resolution,” Journal of Conflict Resolution 49:4, 2005

            *-Held et al., “Conclusion: The Shape of Contemporary Globalization,” in Global Transformations, pp.414-52

            *-Gilpin, Global Political Economy, chapter 15, pp.377-402

            *-Stephen J. Kobrin, “Back to the Future. Neomedievalsim and the postmodern     digitized world economy,” in Aseem Prakash and Jeffrey A. Hart, eds.   Globalization and Governance (Routledge, 1999) pp.165-87


November 24th: Where Are We Going?

            Readings: to be determined


December 1st: Where Are We Going?

            Readings: to be determined


December 8th: Final exam, 6-7:50