GFCP 525 Politics of Economic Reform, Spring 2000 Office:
257 Cabell Hall
Instructor: John Echeverri-Gent Office hours: Thur 10-12 Noon
E-Mail: Jee8p@virginia.edu Phone
924-3968
A wave of economic change has swept across countries ranging from
Argentina to Zimbabwe over the last two decades. The unfolding of these changes has been structured and in turn
has shaped the politics of the countries in which they have occurred. The objective of this course will be to
explore the possibility of developing an analytical framework for understanding
the politics of economic reform. The
issues and perspectives about which we will read are relevant for understanding
economic reform in virtually all countries, and indeed, the readings in the
course will address politics in Latin America, Southern Europe, Post-communist
societies, the Middle East and Asia.
However, course readings are organized by analytic issues rather than
geographical areas. My objective in structuring the course in this way is to
highlight causal mechanisms and consider the persuasiveness of alternative
explanations for their operation. The
ultimate objective of the course is to expose students to analytical frameworks
that they can apply to countries of their interest. In the process, we will learn a lot about a broad range of
countries, but the course gives priority to theoretical issues rather than
empirical cases.
I have organized the course this year with the idea that graduate
students will be its primary constituency.
The readings are challenging in both their sophistication and their
quantity. Students will have to make a
major commitment of time and energy to the course to do well. I will evaluate students in three ways:
1. Expression of your questions and opinions
plays an important role in making class a stimulating experience for
everyone. I will also ask students to
prepare for most classes by writing brief - two page maximum - essays on key
issues of the class readings. I will
also require students to make one verbal presentation that combines the
readings with their outside interests.
Each of these elements will count for 10 % of your grade. Total class participation -- class discussions,
brief papers, and presentation - will count for 30 percent of the final grade.
2. A take-home, open book, midterm essay exam
will account for 30 percent. Midterms will
be distributed at the end of class on March 1. They are due at the beginning of class on March 22.
3. Students will be required either to take a
take-home, open book final essay exam or write a final research paper. The exam will be passed out at the end of
class on April 28. The exam and all
research papers are due no later than 12:00 Noon May 8. I strongly encourage students to write the
final exam rather than do the research project since class readings are so
heavy. Those students wishing to write
a research paper can do so only with the instructor=s approval.
All materials not available for purchase will
be available to you through Clemons system for electronic reserves. The following books are available for
purchase at Newcomb Hall bookstore:
Nancy Birdsall, Carol Graham, and Richard H. Sabot (eds.) Beyond
TradeOffs: Market Reform and Equitable Growth in
Latin American. Washington:
InterAmerican Development Bank/Brookings, 1998.
Carles Boix. Political
Parties, Growth and Equality.
Cambridge: Cambridge University Press, 1998.
Gary Burtless, et al. Globaphobia. Washington, DC: Brookings, 1998.
Richard Falk. Predatory
Globalization. Polity Press, 1999.
Andrew Hurrell and Ngaire Woods (eds.) Inequality, Globalization,
and World Politics. Oxford: Oxford
University Press, 1999.
Robert Keohane and Helen Milner (eds.) Internationalization
and Domestic Politics. Cambridge:
Cambridge University Press, 1996.
Nicholas P. Lardy. China=s Unfinished Revolution.
Washington, DC: Brookings, 1998.
Nora Lustig. Mexico: The
Remaking of an Economy. Washington,
DC: Brookings, 1998.
ASSIGNMENTS
I. Globalization, the New Economic Geography
and Pressures for Reform
1)
January 19 Introduction
No assignment.
I. The Contours of Globalization
2) February 2
World Bank.
Entering the 21st Century: World Development Report 1999/2000. Oxford University Press, 1999 pp. 51-85.
Human Development Report 1999.
Oxford University Press, 1999, pp. 1-13.
UNCTAD.
World Investment Report 1998: Trends and Determinants. New York: United Nations, 1998 pp. xvii-xxxi.
Gary Burtless, et al. Globaphobia. Washington, DC: Brookings, 1998.
Frances Stewart and Albert Berry, AGlobalization, Liberalization, and
Inequality: Expectations and Experience,@ in
Andrew Hurrell and Ngaire Woods (eds.) Inequality,
Globalization, and World Politics.
Oxford: Oxford University Press, 1999, pp. 150-86.
II. Globalization and Domestic Politics:
Causal Mechanisms
3) February 9
Barbara Stallings, "International
Influence on Economic Policy: Debt, Stabilization, and Structural Reform,"
in Stephan Haggard and Robert Kaufman (eds.) The Politics of Economic
Adjustment Princeton, Princeton University Press, 1992 pp. 41-88.
A. Markets
1. Capital
Leslie Elliott Armijo, AMixed Blessing: Foreign Capital Flows and
Democracy in Emerging Markets,@ in Financial Globalization and Democracy in Emerging Markets. Edited by Leslie Elliott Armijo. New York: St. Martins, pp. 17-50.
2. Trade
Robert O. Keohane and Helen V. Milner (eds) Internationalization
and Domestic Politics. Cambridge:
Cambridge University Press, 1996 pp. 3-206; 243-258.
4)
February 16
B. Regimes
Andrew Hurrell and Ngaire Woods (eds.) Inequality,
Globalization, and World Politics.
Oxford: Oxford University Press,
1999, pp. 8-149.
Tony Porter, The Transnational Agenda for
Financial Regulation,@ in Financial
Globalization and Democracy in Emerging Markets. Edited by Leslie Elliott Armijo.
New York: St. Martins, pp.
91-114.
John Echeverri-Gent, AFinancial Globalization, Liberal Norms, and
the Ambiguities of Democracy,@ in Financial Globalization and Democracy in Emerging Markets. Edited by Leslie Elliott Armijo. New York: St. Martins, pp. 207-32.
C. Linkage
Peter M. Haas, AIntroduction: epistemic communities and international policy
coordination,@ International Organization 46:1 (Winter 1992) pp. 1-35.
Akhil Gupta and James Ferguson, ABeyond Culture: Space, Identity, and the
Politics of Difference,@ Cultural Anthropology 7:1 pp. 6-23.
Frederick Cooper and Randall Packard, AIntroduction,@ in Development Knowledge
and the Social Sciences. Edited by Frederick Cooper and Randall Packard. Pp. 1-41.
5.
February 23
D. Leverage
Miles Kahler, "External Influence,
Conditionality, and the Politics of Adjustment," in Stephan Haggard and
Robert R. Kaufman (eds.) The Politics
of Economic Adjustment (Princeton: Princeton University Press, 1992) pp.
89-136.
Martha Finnemore, ARedefining Development: The World Bank as an
Arbiter of Development Norms,@ in Development Knowledge and the Social Sciences. Edited by Frederick Cooper and Randall
Packard. Pp. 203-227.
E. Geography
1. Theory: Unbundling Territory and
Sovereignty
John Gerard Ruggie, A Territoriality and beyond: problematizing
modernity in international relations,@ International Organization. 47:1 (Winter 1993) 139 - 174.
2. Globalization and Regionalism
Edward Mansfield and Helen V. Milner, AThe New Wave of Regionalism,@ International Organization 53:3
(Summer 1999) pp. 589-627.
3. The Reorganization of Production into
Global Commodity Chains
Gary Gerreffi, AGlobal Production systems and Third World Development,@ in Barbara Stallings (ed.) Global Change,
Regional Response Cambridge:
Cambridge U.P. 1996, pp. 100-42.
4.Multinationals and the New Geography
Richard Kozul-Wright and Robert Rowthorn,
"Spoilt for choice? Multinational Corporations and the Geography of International
Production,@ Oxford Review of Economic Policy 14:2
(1998) pp. 74-92.
5. Centralizing in localities: Global
Financial Centers
Saskia Sassen, AGlobal Financial Centers,@ Foreign Affairs 78:1
(January 1999).
6. The Logic of Clustering
H. Schmitz and K. Nadvi, AClustering and Industrialization: Introduction,@ World Development 27:9 (September
1999) pp. 1503-1515.
Bell, M. and Abu, M. AKnowledge Systems and Technological Dynamism in Industrial Clusters in
Developing Countries,@ World
Development. 27:9 (September 1999)
pp. 1715-1734.
6.
March 1
F.. Crises
Miles Kahler (ed.) Capital Flows and
Financial Crises. Ithaca: Cornell
University Press, 1998, pp. 1-68; 128-57.
Charmers Johnson, AEconomic crisis in East Asia: The clash of
capitalism,@ Cambridge Journal of Economics 22:6 (November
1998) pp. 653-662.
Lance Taylor, ACapital market crises: liberalization, fixed exchange rates and
market-driven destablisation,@ Cambridge Journal of Economics 22:6 (November 1998) pp. 663-76.
J.A. Kregel, ADerivatives and global capital flows: applications to Asia,@ Cambridge Journal of Economics 22:6 (November
1998) pp. 677-92.
Robert Wade, AFrom >miracle= to >cronyism=: explaining the Great Asian Slump,@ Cambridge Journal of Economics 22:6 (November 1998) pp. 693-706.
K.S. Jomo, AMalaysian debacle: show fault?@ Cambridge Journal of Economics 22:6 (November 1998) pp. 707-22.
Ha-Joon Change, Hong-Jae Park and Chul Byue
Yoo, AInterpreting the Korean crisis: financial
liberalistation, industrial policy and corporate governance,@ Cambridge Journal of Economics 22:6
(November 1998) pp. 735-46.
Gabriel Palma, AThree and a half cycles of >mania, panic and [asymmetric] crash=: East Asia and Latin America compared,@ Cambridge Journal of Economics 22:6 (November 1998) pp. 789-808.
*** Midterms will distributed at the end of class.
They are due at the beginning of class on March 22.
7. March 8
G.
Global Civil Society
Richard Falk. Predatory Globalization.
Polity Press, 1999.
March 15 Spring Break, Enjoy!!!
8. March 22
III.
Neo Liberalism and its Critics
A. Neo-liberal Consensus
Anne O. Krueger, Economic Policy Reform in
Developing Countries (London: Blackwell, 1993) pp. 1-57.
Mancur Olson, The Rise and Decline of
Nations (New Haven: Yale, 1982) pp. 17-74.
John Williamson, AWhat Washington Means by Policy Reform,@ in John Williamson (ed.) Latin American
Adjustment: How Much Has Happened?
Washington, D.C.: Institute for International Economics, 1990 pp. 7-38.
Thomas Biersteker, AThe Triumph of Liberal Ideas in the Developing
World,@ in Stallings pp. 174-96.
B. Critiques of the Neo-Liberal Perspective
Mrinal Datta-Chaudhri, AMarket Failure and Government Failure,@ Journal of Economic Perspectives 4:3
(1990) pp. 25-39.
Merely S. Grindle, "The New Political
Economy: Positive Economics and Negative Politics," in Gerald M. Meir
(ed.) Politics and Policy Making in Developing Countries (San Francisco: IS, 1991) pp. 41-68.
Karen Ariz. Chaudhry, "The Myths of the
Market and the Common History of Late Developers," Politics and Society21
(September 1993) pp. 245-74.
Peter Evans, AThe Eclipse of the State?
Reflections of Stateness in an Era of Globalization,@ World Politics 50 (October 1977) pp.
62-87.
Dani Rodrik, AThe >paradoxes of the successful state,@ European Economic Review 41 (1997)
pp. 411-442.
IV. Domestic Mechanisms of Economic Reform
9. March 29
Reforms and Social Equity
A. Inequality, Stasis, and Reform
Nancy Birdsall, Carol Graham, and Richard H.
Sabot (eds.) Beyond TradeOffs: Market Reform and Equitable Growth in Latin American. Washington:
InterAmerican Development Bank/Brookings, 1998.
10. April 5
B. Political Parties and Reform
Carles Boix. Political Parties Growth and
Equality. Cambridge: Cambridge
University Press, 1998.
11. April 12
C. Party
Systems
Stephan Haggard and Robert R. Kaufman, The
Political Economy of Democratic Transitions Princeton University Press, 1995,
pp. 7-15, 151-182.
D. Interest Groups and Reform Coalitions
James E. Alt, Jeffry Frieden, Michael J.
Gilligan, Dani Rodrik, and Ronald Rogowski, AThe Political Economy of International Trade,@ Comparative Political Studies 29:6
(December 1996) pp. 689-717.
Ben Ross Schneider and Sylvia Maxfield, ABusiness, the State and Economic Performance
in Developing Countries,@ in Sylvia Maxfield and Ben Ross
Schneider (eds.) Business and the State in Developing Countries. Ithaca: Cornell University Press, 1997, pp. 3-35.
Steve Levitsky and Lucan A. Way, ABetween a Shock and a Hard Place,@ Comparative Politics (January 1998)
pp. 171-92.
Oona A. Hathaway, APositive Feedback: The Impact of Trade Liberalization
on Industry Demands for Protection,@ International Organization 52:3 (Summer 1998) pp. 575-612.
Hector E. Schamis, ADistributional Coalitions and the Politics of
Economic Reform in Latin America,@ World Politics 51:2 (1999): 236-68.
Joel S. Hellman, AWinners Take All: The Politics of Partial
Reform in Postcommunist Transitions,@ World Politics 50 (January 1998) pp. 203-34.
Dani Rodrik, AThe Rush to Free Trade in the Developing World: Why So late? Why Now?
Will It Last,@ in
Stephan Haggard and Steven B. Webb (eds.) Voting for Reform. Oxford University Press, 1995, pp. 61-88.
12. April 19
E. Elections
Susan C. Stokes, AIntroduction: Public Opinion and Market
Reforms: The Limits of Economic Voting,@ Comparative Political Studies 29:5 (October 1996) pp. 499-519.
Alberto Alesina, APolitical Models of Macroeconomic Policy and
Fiscal Reforms,@ in Stephan Haggard and Steven B. Webb (eds.) Voting for Reform. Oxford University Press, 1995, pp. 37-60.
F. Institutions
Steven K. Vogel. freer markets, more rules. Ithaca: Cornell U.P., 1996.
Pp. 1-42.
Robert R. Kaufman, AApproaches to the Study of State Reform in
Latin American and Postsocialist Countries,@ Comparative Politics 31:3 (April 1999) pp. 357-75
J. Rogers Hollingsworth and Robert Boyer, ACoordination of Economic Actors and Social
Systems of Production,@ in Contemporary
Capitalism: The Embeddedness of Institutions. Cambridge: University Press, 1997, pp. 1-47.
G. Reform Strategies: Big Bang vs. Gradual
approaches to Reform
Leszek Balcerowicz, "Poland," in
John Williamson, The Political Economy of Policy Reform. Washington D.C.: Institute for International
Economics, 1994, pp. 153-177.
Peter Murrell, AWhat is Shock Therapy? What Did
it Do in Poland and Russia,@ Post-Soviet Affairs 9:2
(1993) pp. 111-140.
Luiz Carlos Bresser Pereira, Jose Maria
Maravall and Adam Przeworski, AEconomic Reforms in New Democracies: A Social Democratic Approach,@ in William C. Smith et al. (eds.) Latin American Political Economic in
an Age of Neo-Liberal Reform. New Brunswick, NJ: Transaction, 1994, pp.
181-212.
13. April 26
V. Politics of Reform in Mexico
Nora Lustig.
Mexico: The Remaking of an Economy. Washington, DC: Brookings, 1998.
*** Final questions will be handed out at the
end of class, they will be due at 12:00 Noon on Monday May 8.
14. May 3
VI. China
Nicholas P. Lardy. China=s Unfinished Revolution. Washington, DC: Brookings, 1998.