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Master 2020/2021

Global Political Economy and Interaction between Business and Politics

Type: Elective course (Master of International Business)
Area of studies: Management
Delivered by: Магистерская программа "Международный бизнес", направление подготовки "Менеджмент"
When: 1 year, 4 module
Mode of studies: offline
Open to: students of one campus
Instructors: Maxim Bratersky
Master’s programme: International Business
Language: English
ECTS credits: 4

Course Syllabus

Abstract

After several years of having international security dominating the political discourse, international political economy has returned with vengeance. This course will introduce students to the broad questions motivating the academic field of international political economy: Whose interests are served by the liberalization of trade and finance? What impact can multilateral organizations like the World Bank, International Monetary Fund and World Trade Organization have on the economic policies of member states and the functioning of the global economy? What determines the policies or rules promoted by these organizations? What motivates foreign aid policies? What is “globalization”? How can we assess its impacts on different countries and populations?
Learning Objectives

Learning Objectives

  • provide a general introduction to central issues treated by IPE
  • survey existing interpretations of social, political and economic developments in the world with a focus on Russia’s interests and participation
  • examine these developments within the framework of the contemporary literature in international political economy
Expected Learning Outcomes

Expected Learning Outcomes

  • know and understand historical and theoretical issues at the forefront of the discipline of international political economy, together with familiarity with appropriate bibliographical sources; the epistemological and methodological principles in their application to the study of IPE;
  • know and understand key ontological, theoretical, and methodological problems of IPE
  • know current challenges to international order, cooperation, identity, social formations, and global issues, and possible strategies to address them
  • understand the changing role of the state in the context of globalization and regional integration and the implications for international peace and security
  • know how to carry out an independent research project and write in a scholarly manner demonstrating familiarity with academic conventions deal with complex issues both systematically and creatively, make sound judgments in the absence of complete data, and communicate their conclusions clearly;
  • have advanced knowledge of International Relations and politics as approached in a different academic environment and from a different intellectual tradition
Course Contents

Course Contents

  • International Political Economy
    IPE theory and method Major Concepts of IPE Liberalism Economic Nationalism Critical Theories
  • Research Agenda of IPE: 1970 – 2010. IPE in Russia
    The legacy: Adam Smith, John Stuart Mill, Karl Marx; The Interwar divergence: Professionalisation; micro-economics vs politics of war and peace; The Post-War II incipient debate: • The 1970s: The emergence of IPE as a distinct field of study The Study of the EC and other regions: Integration theory, ne-functionalism (Mitrany, Haas) -how to account for such high levels of cooperation , voluntary agreements and role of non-state actors -transnational communities, identity formation, communication (Deutsch) The end of US led global growth: economy is political collapse of BW; OPEC: the politics of economic choices -The NIEO: the politics of the global economic order -GATT, Japan and the new protectionism: the political economy of trade -Détente and Trade • Economic Interdependence and transnational relations : Disaggregating “the state” (not a unified rational actors): Pluralism and bureaucratic politics (Dahl) Ties across borders not controlled by the state MNEs (Vernon; Cooper) Cost and benefit of interdepence for state autonomy (Keohane and Nye) Defense of state-centred paradigm (Gilpin and Krasner) Hegemonic Stability: Power and liberalism English school of IPE (Susan Strange) • The 1980s-2000s: IPE takes central stage The coming of age of Multinational Corporations FDI- Enters globalisation Explosion of financial sphere; the rise of trade in services The Reagan revolution on the neo-liberal ideology The advent of structural conditionality; WTO round The deepening of economic integration: state policies and regulations in question The new liberal challenge: Regime theory and neo-liberal institutionalism role of ideas and shared understandings, expectations analogies from economic theory (transaction costs; market failure); game theory (Axelrod; Oye)
  • International Trade. Political regulation of International Trade. Russia’s Accession to WTO
    International Trade and its Effects; The economics of trade; Comparative Advantage; The Heckscher-Ohlin model The economics of trade protection Tariffs and quotas Domestic pressures – societal or institutional International political or economic factors International economics International politics and institutions Protection vs. trade liberalization Trade and domestic income distribution International institutions, unilateralism, and regionalism Trade-related measures toward the environment, social and labor policy Trade-related policies, i.e. exchange rates
  • World Financial System. Origins of International Currencies and International Financial Systems. Imbalances accumulating in the Current International Financial System
    Monetary systems Base or standard The operation of an international monetary system The gold standard Floating rates The political economy of exchange rate policy The regime Explaining exchange rate outcomes The collapse of the classical liberal order The decline of the United Kingdom World War I as a turning point Reconstruction of the international economic system The Rise of Bretton Woods and a new liberal order Explaining the new order: four perspectives
  • Prospect for the Reform of International Financial Institutions. Russia’s interests in the International Financial System
    Political Responses to Financial Crises: Rescues v. Bailouts, Letting it Burn, Regulation, etc. How can governments prevent financial crises? How should governments respond to financial crises? How are the World Bank and IMF controlled? What should they be doing today? How should they be reformed? What is the best way to accomplish that reform? Are international institutions infringing on state sovereignty?
  • Globalization, Regionalization. Criticism of Globalization
    Globalization and its discontents Globalization and income distribution Globalization, global problems, and global management Globalization and national sovereignty The crisis Origins of the crisis Course and effects of the crisis International Trade and the Developing Countries The typical economic growth path and its trade policy implications Import substituting industrialization (ISI) Policies and Effects Export-oriented Industrialization (EOI) The turn toward EOI and “globalization” Explaining the policies and the changes
  • Growth, Inequality, Development, Aid, Debt and Development
    Why are there poor countries? Three perspectives What should be done? Marxism vs Modernization Theory Economic Determinism vs. Politics Geographic Determinism vs Politics
  • Political Management of International Investment: Keeping the Gates of Domestic Financial Market
    Political Management of the Export of Capital Political Influence on International Financial and Trade Institutions Political Aspects of Currency Regimes Foreign Aid
  • Trade and Economic Sanctions: their efficiency in the Modern World. Economic War
    Sanctions and general policies A tool in political arsenal Forms of sanctions History of sanctions Legitimacy of sanctions Political objectives of sanctions Limitations on sanctions Ethics of sanctions Effectiveness of sanctions
  • Multinational Corporations and the Internationalization of Production. Political and Market Strategy of the Company. Policy of Social Responsibility
    Multinational Corporations and the Internationalization of Production Defining foreign direct investment The causes of FDI The OLI approach: ownership, location, internalization The political economy of FDI Domestic societal factors Domestic institutional factors International economic factors International political factors Stages in the political economy of MNC-LDC relations
  • Globalization and Current Problems in International Political Economy
    Inequality Globalization and Environment New approaches to Globalization National Policy Autonomy
  • Russia’s interests in the world political-economic system
    Russia’s trade interests Russia’s interests in reforming the world financial order Russia’s regional interests in forming the local markets
  • Concluding Seminar: The Future of the World Political, Economic and Financial Order
  • Research Project
Assessment Elements

Assessment Elements

  • non-blocking Lecture online attendance
  • non-blocking Essay
  • non-blocking Lecture online attendance
  • non-blocking Essay
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.7 * Essay + 0.3 * Lecture online attendance
Bibliography

Bibliography

Recommended Core Bibliography

  • Aliber, R. Z., & Kindleberger, C. P. (2015). Manias, Panics, and Crashes : A History of Financial Crises, Seventh Edition (Vol. Seventh edition). New York, NY: Palgrave Macmillan. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1651857
  • Barry Eichengreen. (1987). Hegemonic Stability Theories of the International Monetary System. NBER Working Papers. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.nbr.nberwo.2193
  • Benjamin J. Cohen. (2008). Introduction to International Political Economy: An Intellectual History. Introductory Chapters. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.h.pup.chapts.8665.1
  • Eichengreen, B. (2002). Financial Crises and What to Do About Them. Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.oxp.obooks.9780199257447
  • Gore, C. (2000). The Rise and Fall of the Washington Consensus as a Paradigm for Developing Countries. World Development, (5), 789. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.wdevel.v28y2000i5p789.804
  • Krasner, S. D. (2001). SOVEREIGNTY. Foreign Policy, (122), 20. https://doi.org/10.2307/3183223
  • Michael D. Bordo. (2008). An Historical Perspective on the Crisis of 2007-2008. NBER Working Papers. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.nbr.nberwo.14569
  • Stanley Fischer. (1999). On the Need for an International Lender of Last Resort. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.7CB5A397

Recommended Additional Bibliography

  • International Political Economy : Perspectives on Global Power and Wealth Frieden, Jeffry A.; Lake, David A. Routledge 2002 ISBN: ISBN number:9780415222792, ISBN number:9780203518588