European Governance, Global Governance Introduction to International Political Economy

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European Governance, Global GovernanceIntroducti
on to International Political Economy

• Kalypso Nicolaidis
• Vincent Wright Chair, Sciences Po (2005)
• Oxford University

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European Governance gt Global governanceOur
EU-topia?

• The EU as an actor in its own right economic
  giant? Political actor? What kind of power
• The EU as a possible model of integration
• between states in the rest of the world
• At the global level
• Discourse/reality
• neo-colonial vs post-colonial?

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International Political Economy Questions

• How to govern a world which is multipolar
  economically and unipolar militarily? (eg can we
  live with the US?)
• Can an international system which is a product of
  US hegemony, and more broadly of western
  hegemony, be made to serve the interests of
  developing countries? (eg whose interests?!)
• Are regionalism and multilateralism contradictory
  or complementary? (eg. Is the EU hypocritical?)

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Questions (cd)

• Should trade be used as an instrument to change
  domestic governance arrangements, including for
  instance human and labor rights? (eg is this not
  economic imperialism?)
• What is the score-sheet of global governance
  through public-private partnerships? (should we
  like Bill Gates Global fund?)
• Has globalisation gone too far? (eg. A nos pavés!)

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Questions (cd)

• Check out the website making poverty history!
• In what ways is the year 2005 - the year of
  development- likely to make a difference ?
• How can trade be used to combat global poverty?

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Questions (cd)

• Yahoo 1, 2, 3 Can state sovereignty survive the
  era of the internet?
• Can the WTO, IMF and World Bank really be made
  more democratic? !
• alter-globalization good questionsgood
  solutions?

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International Political Economy Definitions
Yesterday John Stuart Mill Political Economy
teaches a nation how to become rich The Wealth
of Nations Today David Lake IPE is the study
of the interplay of economics and politics in the
world arena Economy system of producing,
distributing and using wealth Politics set of
institutions/rules governing social and economic
interactions
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IPE - definitions

• Robert Gilpin IPE is the study of the
  Problems and Questions arising from the Parallel
  Existence and Dynamic Interaction of State and
  Market.
• Both Separation politics (states) and
  economics (markets) and mutual influence
• -gt IS THIS ASSUMPTION FRUITFUL?
• The IPE as fundamental tension between state
  power, competing ideas and transnational economic
  exchange.

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Liberalism IPE cooperative Limits markets
as political institutions Marxism IPE
conflictual Limits modes of accomodation
Realism IPE conflictual Limits Prism of the
state Institutionalism IPE cooperative
Limits socio-economic order of the CW
IPE theories and their limits
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International Political Economy Some History

• 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
• Cold War Security at the Core -- Economics at
  the margin International Economic Rules as given
• Understanding the collapse of interwar (ec) order
• Politics of IOs Analysis of the UN and
  desillusion
• - post WWII trend towards policy analysis and
  methodological emphasis behavioralism

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Some History (cd)
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) -gt how to account for such high
levels of cooperation , voluntary agreements and
role of non-state actors -gt transnational
communities, identity formation, communication
(Deutsch) -gt The fallacy of pessimistic
induction 2) The end of US led global growth
economy is political -gt collapse of BW OPEC
the politics of economic choices -gt The NIEO
the politics of the global economic order -gt
GATT, Japan and the new protectionism the
political economy of trade -gt Détente and the
political function of low politics
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Some History

• The 1970s (cd)
• 3) Economic Interdependence and transnational
  relations
• Disaggregating the state (not a unified
  rational actors) -gt 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)
• 4) Realists address the challenge
• Defense of state-centred paradigm (Gilpin and
  Krasner)
• Hegemonic Stability Power and liberalism
• English school of IPE (Susan Strange)
• SUM IPE through the lenses of liberalism vs
  realism

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Some History (cd)

• The 1980s IPE takes central stage
• -gt The coming of age of Multinational
  Corporations
• FDI- Enters globalisation
• -gt Explosion of financial sphere the rise of
  trade in services
• -gt The Reagan revolution on the neo-liberal
  ideology
• -gt The advent of structural conditionality WTO
  round
• -gt The deepening of economic integration state
  policies and regulations in question
• 2) The new liberal challenge Regime theory and
  neo-liberal institutionalism
• -gt role of ideas and shared understandings,
  expectations
• - gt analogies from economic theory (transaction
  costs market failure) game theory as a euristic
  (Axelrod Oye)
• -gt Anarchy yes/absence of rules no commitments
  and reciprocity
• -gt Rationalist explanations of institutions
  (Keohane)

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Some History (cd)

• The 1990s PCW meets WWW
• The end of the CW Economics trumps security
• change in the character of American leadership
  (contested) - the use of sanctions as a
  political tool The rise of regionalism
• 2) Globalization and its critics
• - NGOs and two level games
• Technological change and IPE (communication
  studies)
• from state-dominated to market dominated world
  economy?
• Growing linkages between issue areas (trade and
  aid environment trade and health labor human
  rights)
• IPE and international law
• 3) IPE meets political theory
• a) The Global Justice agenda
• b) the Global democracy and legitimacy agenda
• c) From politics of interests to the politics of
  identity

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IPE themes

• conflict/cooperation replaces war and peace
• International institutions are norms not places
• domestic politics/comparative politics matter

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IPE Framing horizontal questions

• WHY? What is the driving force in the global
  economy?
• In this case?
• Market competition - Collective search for
  efficiency
• national ambitions and interstate rivalries
• technology OR Ideas and values
• WHO? Who adjusts?
• Importer/ exporters
• My constituency / your constituency
• Low skill labor in the North/in the South
• EU / candidate countries
• FOR WHOM? In Whose Interest? Great power
  Collective those in need

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International Political Economy Caveat emptor
(Ce que je crois)-gt An actor-centred good
story-gt liberal assumptions opportunity to cut
deals positive sum game shared stake in a
stable international economic order governance
issues-gt realist assumptions state centric but
not always relative gains-gt outside liberal
framework issues of global justice, issues of
identity and norms-gt Structure and agency-gt
Role of narratives Europe as a model