ILLIBERAL CAPITALISM/Comparative

ILLIBERAL CAPITALISM/Comparative Economic Systems Winter Semester, 2020/ from 8 January to 4 April/, Advanced MA Level Lecturer: Univ.Prof.László CSABA/IR Department While most economic and political science texts in general and the ruling varieties of capitalism/VoC/ paradigm in particular pre-suppose the rule of market with slight modifications stemming from couleur locale, reality is different. Despite increasing globalization and financial integration most real world economies are illiberal, politically and economically alike. In this PhD course of comparative political economy, open to motivated MA students, we address why globalization has not lead to unification along US/UK lines, as postulated by most of the IR literature. We first address how economic systems evolve, then go through a series of case studies presenting the east Asian, Latin American, African and east European brands. Finally we ask why the trend towards illiberal capitalism survives and how it impacts the multilateral trading and financial system. Background in economics is a plus, but by no means a precondition, for taking this class. Based on individual processing of course material oral and written presentation is required. The course is composed of lectures and seminars. There is no direct overlap between the two except for the topic, thus attendance in both lectures and seminars is needed. In case of emergency prior consent of the lecturer is required/via email/. All assigned mateials are available in CEU Library either in print or online form, thus do NOT use preliminary working paper or manuscript versions of the same! REFERENCE VOLUMES AND READINGS These volumes provide an overall outlook on various broad aspects of the subject matter. They elaborate in great detail concepts, issues, background and specifics of both conceptual and historic nature, offer powerful narratives. They explain how individual schools of thought differ, what was already known prior to the global financial crisis of 2008-09, and what is new in the emerging new cult of illiberal economic options in the post-crisis world. This stands in stark contrast to the tendencies of the 1979-2008 period, from Margaret Thatcher to George W.Bush, that of sweeping liberalization and unfettered globalization.

The fundamental question to be addressed if and to what degree it is a trend and/or normative claim for the future of the global economy, and if yes, under what conditions. MONGA,C. – LIN,J.eds/2019/: Oxford Handbook of Structural Transformation.Oxford- New York: Oxford University Press. ROSEFIELDE, S./2013/: Asian Economic Systems.Singapore: World Scientific. ACEMOGLU, D. – ROBINSON, J.A./2012/: Why Nations Fail: the Origins of Power, Prosperity and Poverty. New York: Crown Publishers. STIGLITZ,J.E./2019: People, Power and Profits:Progressive Capitalism for the Age of Discontent.London: Allen Lane. GRADING The final grade is composed of several items. Midterm and final quiz must not be missed, these account for 25 pc each. Seminar presentation 20 pc, active and regular participation in class 10 pc, book review 20 pc, to be completed in conformity with CEU academic and ethical standards/for MA students this is optional/. You can choose either from recommended readings, or one of your own preferences, approved in advance by the instructor. Submission deadline is 3 Friday, 18 hrs at latest, online.

COURSE OUTLINE AND READINGS In a research university we no longer use textbooks. Instead, individual processing of course material is expected. Required readings as well as lecture material form the backbone of examination. Recommended readings broaden the perspective, complement the major claims with country experiences and/or dissenting interpretations. Furthermore seminar presentations are to be made from these. If the latter are books, typicqally one chapter must be presented, but you may opt for going through the book and present the major argument.

1. HOW DOES REAL WORLD CAPITALISM DIFFER FROM THE TEXTBOOK MODEL OF THE MARKET AND WHY SHOULD ANYONE CARE?/ 8 January Required: CSABA, L./2016/: Economic systems: constraints and driving forces. IN: HÁMORI ,B. – ROSTA, M. eds: Constraints and Driving Forces in Economic Systems. Newcastle-upon-Tyne/UK: Cambridge Scholars Publishing, pp 1-11. KORNAI, J./2016/: The sytem paradigm revisited: Clarifications and additions in the light of experiences in the post-socialist region. Acta Oeconomica, vol.66.,no.4.pp547-596. Recommended: FARKAS, B./2016/ : Models of Capitalism in the EU: Post-Crisis Perspectives. Houndmills-New York: Palgrave MacMIllan/take one chapter for presentation!/ RODRIK, D./2015/: Economics Rules: Why Economics Works, When It Fails and How to Tell the Difference. Oxford- New York: Oxford University Press./take concluding chapter for presentation!/ SOCCORO, M.et al./2014/: Corporate institutions in Asian markets: financial conditions, financial development and financial constraints. World Development, vol.57/May/, pp63 78.

2. THE DEVELOPMENTAL STATE: AN ALTERNATIVE TO CAPITALIST TRIUMPHALISM WHICH WORKS/week of 13 January Required: WILLIAMS,M/2014/.: Introduction. IN: WILLIAMS, M.ed: The End of the Developmental State? London- New York: Routledge,pp1-29. Recommended: CHUN,S.H./2018/: The Economic Development of South Korea. London: Routledge. HUANG,F. – YEUNG,H./2018/: Institutions and Economic Growth in Asia. London: Routledge/take the chapters on Hong Kong or Malaysia for seminar presentation/. LIM, L./2016/: Singapore’s Economic Development: Retrospection and Reflections. New Jersey: World Scientific/take the editorial intro for presentation!/.

COHEN-SETTON, J.et al eds/2018/: Sustaining Economic Growth in Asia.New York: Columbia University Press/take one chapter for presentation!/.

3. THE CHINESE ECONOMIC MIRACLE AND ITS FLIPSIDE/week of 20 January Reqired: KWONG,C.C.L./2019/: The Chinese Economy and its Challenges. London: Routledge, chapters 8 and 9. YI,F,-GAO, ZH.-ZHANG, H.H/2018/: What leads to official corruption in China? Post-Communist Economies, vol.30.no.3., pp273-289.

Recommended: PIKETTY,TH et al/2019/: Capital accumulation, private property and rising inequality in China. American Economic Review, vol.109.no.7.,pp2464-96. ZENG,K.ed./2019/: Handbook of the International Political Economy of China.Cheltenham/UK: E.Elgar/take one chapter for seminar presentation!/. DU,J./2018/: The Political Economy of Contemporary China: an Institutional Analysis of Market and State.London: Routledge/take concluding chaptetr for presentation!/ CHEUNG,G./2018/: China in the Global Political Economy.Cheltenham: Edward Elgar/take concluding chapter for presentation!/. NAUGHTON, B./2017/: Is China socialist? Journal of Economic Perspectives, vol.31.no.1, pp3-24.

4. JAPAN: FROM MODEL CHILD TO THE SICK MAN OF ASIA/week of 27 January Required: KIMURA, F./2012/: Japan’s model of development: relevant and non-relevant elements for developing economies. IN: FOSU,A.ed: Development Success: Historical Accounts from More Advanced Countries. Oxfor-N.Y. : Oxford University Press, pp149- 170.

Recommended: MURPHY,R.T./2017/: Japan and the Shackles of the Past. Oxford-New York: Oxford University Press/take one chapter for presentation/. CHO,D.- ITO,T.- MASON,A.eds/2018/: Economic Stagnation in Japan: Causes and Remedies of Japanization. Cheltenham/UK: E.Elgar/take the chapter on japanization or on financial intermediation for seminar presentation!/. PARK,G. – KATADA,S./2018/: Taming Japan’s Deflation.Ithaca: Cornell University Press. PRESTOWICZ,C./2019/: Japan Restored.Tuttle Publishing.

5. INDIA: FROM PLAN TO MARKET AND BACK?/week of 3 February Reqired: GOYAL, A./2015/: Introduction. IN: GOYAL,A.ed: A Concise Handbook of the Indian Economy in the 21st Century. Oxford-New York: Oxford University Press. Recommended: /n.a./2019/: Quarter of a Century of Liberalization in India.Oxford – New York: Oxford University Press/take any one chapter for presentation!/. RAVALLION, M./2016/: The Economics of Poverty. History, Measurement and Policy. Oxford-New York: Oxford University Press/take any one chapter for presentation!/. JOSHI,V./2017/: India’s Long Road. Oxford-New York: Oxford University Press/take one chapter for presentation/.

6.MIDTERM QUIZ/10 February,Monday/no-show triggers automatic fail of the class/

7. THE AFRICAN GROWTH REVIVAL: THE BENEFIT OF BACKWARDNESS/12 February Required: DIAO,X.et al/2017/: The changing structure of Africa’s economies. World Bank Economic Review, vol.31.no.2.,pp. 385-411. Recommended: HESHMATI,A.ed./2018/: Determinants of Economic Growth in Africa. London:Palgrave/take one chapter for seminar presentation! GOLUB,S.et al./2018/: Can Africa compete with China in manufacturing?World Economy, vol.41.no.6.,pp1508-1528. MIJIJAWA,A.G./2017/: Does FDI promote exports? Evidence from African countries. World Economy, vol.40.no.9.,pp1934-1957. OTCHERE,I.et. al.,/2016/: FDI and financial market development in Africa. The World Development, vol.39.no.5.,pp 651-678.

8. THE ARAB SPRING: FROM AUTOCRACY TO AUTOCRACY/week of 17 February Required: GHANEM, H./2016/: The Arab Spring Five Years later: Toward Greater Inclusiveness, vols I and II. Washington,D.C. : The Brookings Institution Press/take Introduction to vol 1 for course reading, the rest is recommended/.

Recommended: DIWAN,I. Et al eds/2019/: Crony capitalism in the Middle East: Business and Politics from Liberalization to the Arab Spring. Oxford- New York: Oxford University Press. ALJATY,M.- ANCHOR,J./2018/: Transition economies in the Middle East:the Syrian experience. Post-Communist Economies, vol.30.no.3.,pp382-394.

COMMANDER,S./2017/: Accounting for failure to reform in the Arab world. Economics of Transition, vol.25.no.2.,pp 351-373. KURAN,T./2018/: Islam and economic performance: historical and contemporary links. Journal of Economic Literature, vol.56.no.4.,pp1292- 1359. SZMOLKA,I.ed.,/2017/: Political Change in the MENA: after the Arab Spring. Edinburgh: Edinburgh University Press./take one chapter for presentation!/

9. LATIN AMERICA: RECOVERING FROM LOST DECADES?/week of 24 February Required: STALLINGS,B./2016/: Innovation, inclusion and institutions: east Asian lesons for Latin America? IN: FOXLEX,A. – STALLINGS,B.eds: Innovation and Inclusion in Latin America: Strategies to Avoid the Midle Income Trap.London: Palgrave, pp1-32/available via SpringerLink

Recommended: AMMAN,E. ET.AL, eds,/2018/: The Oxford Handbook of the Brazilian Economy.Oxford-New York: Oxford University Press. DORRAS,M- DODSON,M./2018/: The Populist Bargain: Oil and Populism in Venezuela and Iran. London: Routledge. CRUCES,G.et al./2017/: Growth, Employment and Poverty in Latin America.Oxford-New York: Oxford University Press/take chapter 4 for presentation!/- electronic resource. BASTOS,P.P.Z./2018/: Brazil under Globalization.London: Routledge, chapters 6-9.

10. RUSSIAN CAPITALISM: FROM COMMUNISM TO WILD EAST/week of 2 March Required: ELLMAN,M./2015/: Russia’s current economic system: from delusion to glasnost. Comparative Economic Studies, vol.57.no.4., pp 693- 710.

Recommended: OXENSTIERNA, S.ed.,/2017/: The Challenges for Russia’s Politicized Economic System.London: Routledge/take one chapter for presentation!/ YAVLINSKII,G./2019/: The Putin System. N.Y.: Columbia University Press. CHAROKOPOS,M.-DAGOUMAS,A./2018/: State capitalism in time:Russian national gas at the service of foreign policy. Europe-Asia Studies, vol.70.no.3.,pp441-461. KOSALS,L. –IZYUMOV,A. – KEMELGOR,B./2018/: From plan to market and back: the organizational transformation of the Russian defense industry. Europe-Asia Studies, vol.70.no.9.,pp1450-1471. ASLUND,A./2019/: Russia’s Crony Capitalism.New Haven- London: Yale University Press,pp 180-254.

11. CENTRAL AND EASTERN EUROPE: THE SHUTTLE MOVES EASTWARD?/week of 9 March Required : PAPI,L.et al/2018/: CE and SEE countries’ convergence: a look at the past and considerations for the future. Comparative Economic Studies, vol.60.no.2.,pp271-290.

Recommended: MATSIYEVSKY,Yu./2018/: Revolution without régime change:the evidence from post-Euromaidan Ukraine. Communist and Post- Communist Studies, vol.51.no.4.,pp349-359. SZANYI, M./2016/: The reversal of the privatization logic in CEE transition economies. Acta Oeconomica, vol.66.no.1., pp33-56. ROLAND,G./2018/: The evolution of post-communist systems. Economics of Transition and Institutional Change, vol.26.no.4.,pp 589-614.

11.ILLIBERALISM AND GLOBALIZATION: STRANGE BEDFELLOWS/week of 16 March Required: OZAWA,T./2019/: The flying geese theory: re-assessed and re- formulated in a new structuralist perspective. IN: MONGA,C.- LIN,J.eds: The Oxford Handbook of Structural Transformation.Oxford-new York: Oxford University Press, pp109-126. BIRD,G.et al./2012/: Is there a Beijing Consensus on international macroeconomic policy? World Development, vol.40., no.10.,pp193-1943.

Recommended: POTRAFKE,N./2019/: The globalization – welfare state nexus: evidence from Asia. World Economy, vol.42.no.3.,pp959-974. HOPEWELL,K./2017/: The BRICS – merely a fable? International Affairs/Chatam House, vol.93.no.6/online. SIMON, H./2014/: Hidden champions: the vanguard of globalia. IN: KOLODKO, G.W.ed: Management and Economic Policy for Development. New York: Nova Science, pp32-52. MILLS,G.et al/2019/: Democracy Works: Turning Politics to Africa’s Advantage.London: Hurst and Co.

12. ILLIBERALISM AND MULTILATERALISM IN THE TRUMP ERA/ 23 March,Monday Required: BALDWIN,R./2016/: The WTO and the future of multilateralism. Journal of Economic Perspectives, vol.30., no.1., pp95-116. REINHART,C. – TREBESCH, Ch./2016/: The IMF: 70 years of reinvention. Journal of Economic Perspectives, vol.30.no.1., pp3-28.

Recommended: RAVALLION ,M./2016/: The World Bank: why it is still needed and still disappoints. Journal of Economic Perspectives, vol.30.no.1., pp77-94.

TTIP: Political and Economic Rationale and Implications/round table, all contributions/. Intereconomics,vol.50.no.6/2016/, pp 312-342. DOMBROWSKI,P. – REICH,S./2017/: Does Donald Trump have a grand staregy? International Affairs, vol.93.no.5.pp 1013-1037.

13. FINAL QUIZ: 25 March, 2020, Wednesday/no-show triggers automatic fail!

Notes: all assignments, including appeals and add-on works, must be done by end of the semester, 6 April, 2020, Monday. Consultations by appointment or before/after class. My office is at Monument Building, Nádor 9, Faculty tower 604. Courses are scheduled for Monday and Wednesday 11-12.40, venue TBC.Please do not bring food and drink to class, switch off your mobiles and use laptops for taking notes only. Budapest, 15 July, 2019.