IPE 1

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IPE 1

• Gilpin, Keohane, Scott, Frankel, Wolf and Waltz

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Gilpin The Nature of Political Economy

• Politics and Economics
• Economics creation and distribution of wealth
• Politics power
• In the real world, wealth and power are
  ultimately joined (Gilpin in AJ, 270).
• Distribution is a political issue.
• every economic system rests on a particular
  political order (Gilpin in AJ, 279).

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Keohane Hegemony in the World Political Economy

• Basic definition?
• Pax Britannica
• Pax Americana
• Hegemonic Stability Theory as Realism
• Marxian though and HST

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Scott The Great Divide in the Global Village

• Globalization
• Increased incomes
• Increased gap in the rich and the poor
• Why?
• Rich countries put up barriers to immigration and
  agricultural imports.
• Poor countries have a hard time attracting
  investment due to internal instability.
• A good example of what Gilpin was taking about in
  terms of distribution and politics.

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Scott The Great Divide in the Global Village

• Problems in Poorer States
• The Great Divide Internal class divisions in
  developing states
• Getting Institutions Right
• The Need to Play Catch-Up

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Frankel Globalization of the Economy

• Two Major Forces in Globalization
• Private sector decreased costs in
  transportation and communication
• Public sector reduced policy barriers to trade
  and investment
• Technology
• By 1900 railroad, steamship, telegraph and
  refrigeration
• From 1930-1990 the cost of shipping a ton of
  goods fell from 95.00 to 29.00
• A three minute phone call from NY to London fell
  from 244.65 to 3.32 (all in 1990 dollars)

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Frankel Globalization of the Economy

• Factors Which Influence Trade
• Distance
• Other Geography
• Landlocked?
• Adjacent or not?
• Language
• Colonial links
• Military Factors
• Free Trade areas
• Political links
• Common Country
• Currencies

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Wolf Will Globalization Survive?

• Ours is not the first age of globalization
  (Wolf in AJ, 325).
• 1870-1913 (and then two World Wars, with a Great
  Depression in between)
• Again transportation and communication
• 19th Century Railway, steamship, refrigerator,
  telegraph (first transatlantic cable in 1866)
• 20th Century container ship, giant tanker,
  airliner, radio, televisions, transcontinental
  telephony, satellites, computers, the Internet

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Wolf Will Globalization Survive?

• Globalizations Record (see 328)
• Increased global wealth
• Reductions in extreme poverty
• Threats to Globalization
• Protectionist Interests
• Collectivist Ideas
• Economic Instability
• International Rivalry
• Resource Insufficiency

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Waltz Globalization and Governance

• Notes that this is not the first time that we
  have seen a integrating global economy.
• Focuses on the issues of
• Trade and capital flows
• Mobility of labor
• Mutual military dependence
• A key question what is the state of the state
  in the context of the current period of
  globalization?

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Waltz Globalization and Governance

• Globalization is the fad of the 1990s and
  globalization is made in America (Waltz in AJ,
  336).
• The electronic herd.
• The golden straightjacket
• The message to all governments is clear
  Conform or suffer (337).

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Some Questions from Waltz

• How far has globalization proceeded?
• Notes that there are regions that are currently
  left out
• States globalization is not global, but mainly
  limited to northern latitudes (337)
• How does the current interdependence compare with
  previous times?
• Beyond money markets, are any other markets truly
  global?

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Waltz

• States have to conform to the ways of the more
  successful among them or pay a stiff price for
  not doing so (338).
• The message of globalizers is that economic and
  technological forces impose near uniformity of
  political and economic forms on states. They do
  so because the herd is attracted only to
  countries with reliable, stable, and open
  governmentsthat is, to liberal democratic ones
  (339).

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Waltz

• Competitive systems select for success (341).
• State adapt they also protect themselves (339).

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Waltz

• The many commentators who exaggerate the
  closeness of interdependence and even more so
  those who write of globalization, think in unit
  terms rather than in systemic terms (343).
• States are differentiated from one another not
  by function but primarily by capability (343).

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Waltz

• With the end of bipolarity, the distribution of
  capabilities across states has become extremely
  lopsided. Rather than elevating economic forces
  and depressing political ones, the inequalities
  of international politics enhance the political
  role of one country. Politics, as usual,
  prevails over economic (344).