International Political Economy: An Introduction

The Research Forum: Self-taught Course Series
Copyright (C) 2008 Raouf Tajvidi

Following the lecture series on Reading Das Kapital and Marxism & its Variants in 2007-2008 at The Research Forum, there emerged an interest in the role of socio-economic factors in the analysis of domestic politics and international relations. This course is therefore designed to address that interest. The cost of the 6 books recommended on this course is approximately £75.00.

As all self-taught courses, there are three crucial requirements for the successful completion of this programme: genuine interest in the topic, commitment to learning and patiently and systematically following the teaching programme. Participants are reminded that the objective of the course is not the speed with which they complete the programme but how much they enjoy doing it. Ideally you are required to spend 12 hours a week on the course. However, since this is a self-taught course you are required to define your own pace as far as the learning objectives are concerned. What is important is that you do not move to the next task, section or chapter unless you have fully understood the terms, concepts and theories tackled under your existing brief and until you are fully satisfied with your progress.

Before you start the course, you need to read Nigel Warburton, Philosophy: The Essential Study Guide (London & New York: Routledge, 2008). £9.99. This is essentially a study guide for students of philosophy, but it is also a valuable contribution to study skills and critical thinking for all interested in learning. The approach of the book is what the Research Forum has always sought to promote in relation to learning, so it is a must. It is less than 100 pages and enjoyable to read.

Course Aims:

The aim of this course is to introduce the participants to the academic discipline of International Political Economy (IPE). The objective is to provide the students with a foundation in IPE, including key concepts, theories and basic economic history. The course concentrates on four distinct issue areas: the international trade system, the international monetary system, multinational corporations (MNCs) and economic development.

Learning and Teaching Strategy:

The learning strategy is based on one main text that structures the learning process, and several supplementary books that provide a deeper understanding of the topic and prepare the participants for Part II and III of the International Political Economy series at the Research Forum. Participants are also required to write an essay of 1000-1500 words as a summary of each chapter before moving to the next one.

Main Text:

It is highly recommended that participants take their time in reading this book. Some chapters are easier than others, but you need to master them all:

Thomas Oatley, International Political Economy: Interests and Institutions in the Global Economy (New York & London: Longman/Pearson, 2006). £29.44.

The main text recommends relevant and further reading at the end of each chapter. It is important that if you have access to a library, you borrow the books of your interest from the list and at least skim through them in order to familiarise yourself with the main argument and structure of the book. Ideally, you should read three articles or book chapters every week.

To reinforce the appreciation of the points and issues raised by the main text, the following two books make an accessible and enjoyable read alongside the main text:

Ralph Pettman, Understanding International Political Economy (Boulder & London: Lynne Rienner Publishers, 1996). £15.94.

John Kay, The Truth About Markets (London: Penguin, 2004). £7.25.

Finally, since a thorough appreciation of IPE requires a specialised knowledge of economics at some stage in the process, you need to start your training as soon as possible. I therefore recommend the following books in the order they appear:

Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998). Only second hand copies available, prices vary.

John Kenneth Galbraith, A History of Economics: The Past as the Present (London: Penguin, 1991). £8.99

Teaching Programme

Session 1: International Political Economy.

It is important that you follow these steps in order:

1. Read chapter 1 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapter I from John Kay, The Truth About Markets (London: Penguin, 2004) and chapter I from Ralph Pettman, Understanding International Political Economy (Boulder & London: Lynne Rienner Publishers, 1996).

Session 2: The WTO and the World Trade System.

It is important that you follow these steps in order:

1. Read chapter 2 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapter II from John Kay, The Truth About Markets (London: Penguin, 2004) and chapters II & IV from Ralph Pettman, Understanding International Political Economy (Boulder & London: Lynne Rienner Publishers, 1996).

Session 3: The Political Economy of International Trade Cooperation.

It is important that you follow these steps in order:

1. Read chapter 3 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapter III from John Kay, The Truth About Markets (London: Penguin, 2004) and chapter V from Ralph Pettman, Understanding International Political Economy (Boulder & London: Lynne Rienner Publishers, 1996).

Session 4: A Society-Centred Approach to the Politics of Trade.

It is important that you follow these steps in order:

1. Read chapter 4 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapter IV from John Kay, The Truth About Markets (London: Penguin, 2004).

Session 5: A State-Centred Approach to Trade Politics.

It is important that you follow these steps in order:

1. Read chapter 5 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapter V from John Kay, The Truth About Markets (London: Penguin, 2004) and chapter VII from Ralph Pettman, Understanding International Political Economy (Boulder & London: Lynne Rienner Publishers, 1996).

Session 6: Trade and Development I: Import Substitution Industrialisation.

It is important that you follow these steps in order:

1. Read chapter 6 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapter VI from John Kay, The Truth About Markets (London: Penguin, 2004) and chapter VIII from Ralph Pettman, Understanding International Political Economy (Boulder & London: Lynne Rienner Publishers, 1996).

Session 7: Trade and Development II: Economic Reform.

It is important that you follow these steps in order:

1. Read chapter 7 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapter IX from Ralph Pettman, Understanding International Political Economy (Boulder & London: Lynne Rienner Publishers, 1996) and chapters 1-3 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Session 8: Multinational Corporations in the Global Economy.

It is important that you follow these steps in order:

1. Read chapter 8 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapters 4 & 5 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Session 9: The Politics of Multinational Corporations.

It is important that you follow these steps in order:

1. Read chapter 9 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapters 6 & 7 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Session 10: The International Monetary System.

It is important that you follow these steps in order:

1. Read chapter 10 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapter VI from Ralph Pettman, Understanding International Political Economy (Boulder & London: Lynne Rienner Publishers, 1996).

Session 11: Contemporary International Monetary Arrangements.

It is important that you follow these steps in order:

1. Read chapter 11 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapters 8 & 9 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Session 12: A Society-Centred Approach to Monetary and Exchange-Rate
Policies.

It is important that you follow these steps in order:

1. Read chapter 12 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapters 10 & 11 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Session 13: A State-Centred Approach to Monetary and Exchange-Rate Policies

It is important that you follow these steps in order:

1. Read chapter 13 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapters 12 & 13 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Session 14: Developing Countries and International Finance:
The Latin American Debt Crisis.

It is important that you follow these steps in order:

1. Read chapter 14 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapters 14 & 15 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Session 15: Developing Countries and International Finance: A Decade of Crises.

It is important that you follow these steps in order:

1. Read chapter 15 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapters 16 & 17 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Session 16: Globalisation: Consequences and Controversies.

It is important that you follow these steps in order:

1. Read chapter 16 from Thomas Oatley’s International Political Economy.
2. Go through the Key Terms at the end of the chapter: Do you remember what they were? If not, re-read the relevant sections. Make sure you have a clear understanding of them before moving on.
3. Spend an hour or two exploring the Web Links and Suggestions for Further Reading recommended at the end of the chapter.
4. Summarise the chapter in essay format. The main questions to answer are: what was the main argument of the chapter? What were the key concepts and theories examined? In what ways the chapter has contributed to my thinking of international political economy?
5. Now read chapters 18 & 19 from Rober Heilbroner and Lester Thurow, Economics Explained (New York: Simon and Schuster, 1998).

Congratulation! Now that you have completed the course successfully and hopefully developed a keener interest in international political economy, you need to make sure you read John Kenneth Galbraith, A History of Economics: The Past as the Present (London: Penguin, 1991).

Further Reading:

Theodore H. Cohen, Global Political Economy: Theory and Practice (New York & London: Longman/Pearson, 3rd edition, 2005).
Spyros Economides and Peter Wilson, The Economic Factor in International Relations: A Brief Introduction (London & New York: I B Tauris, 2001).
Robert Gilpin, The Challenge of Global Capitalism: The World Economy in the 21st Century (Princeton & Oxford: Princeton University Press, 2000)
Milton Friedman, Capitalism and Freedom (Chicago & London: Chicago University Press, 2002).
F. A. Hayek, The Road to Serfdom (Chicago & London: Chicago University Press, 1994).
David Harvey, A Brief History of Neoliberalism (Oxford: OUP, 2005).
Hirst, P. and G. Thompson, Globalization in Question: the International Economy and the Possibilities of Governance (Cambridge: Polity Press, 1996).
Alfredo Saad-Filho and Deborah Johnston, eds., Neoliberalism: A Critical Reader (London: Pluto Press, 2005).
Schwartz, Herman, States versus Markets (London, Macmillan, 1994).
Adam Smith, The Wealth of Nations Books I-III (London: Penguin, 1987).
John Stopford and Susan Strange, Rival States, Rival Firms: Competition for World Market Shares (Cambridge: CUP, 1998).
Strange, Susan, State and Markets (London: Pinter, 1988).

Journals and Periodicals:

Review of International Political Economy, International Organisation, Harvard Business Review, New Political Economy, Economy and Society, World Politics, World Development, the Economist and the Financial Times.

Websites:

http://www.imf.org/
http://www.worldbank.org/
http://www.oecd.org/
www.wsws.org/
http://www.ft.com/
http://www.neweconomics.org/