POLITICAL SCIENCE 138E THE VARIETIES OF CAPITALISM: THE POLITICAL-ECONOMIC SYSTEMS OF THE WORLD

Spring 2017 GSIs: Anustubh Agnihotri Prof. Steven Vogel [email protected] Office Hours Tuesdays 12:45-2:30 Konrad Posch [email protected] [email protected] 768 Barrows Hall (642-4658)

COURSE DESCRIPTION This course examines the interaction between politics and markets, both in theory and in practice, linking classic works on political economy (Smith, Marx, List, Polanyi) with current policy debates. It emphasizes the ways in which markets are embedded in social and political institutions. We study how markets are structured in a wide range of different national settings, looking at both history and contemporary issues. We review some of the most influential works from four disciplines: Sociology, Economics, History, and Political Science. Topics include: 1) the history of industrialization, 2) the varieties of capitalism in contemporary industrialized countries, 3) the emerging economies of Latin America and East Asia, 4) the problems of development, and 5) the transition from central planning to a market economy in Eastern Europe and China. We conclude the course with a review of current issues in the global economy.

PREREQUISITES Some background in economics, such as an introductory course, strongly recommended.

COURSE REQUIREMENTS Midterm 10% of course grade Class participation 10% bCourses postings 10% Press review paper (due 3/24) 20% Comparative analysis paper (due 4/21) 20% Final exam 30%

READING ASSIGNMENTS Books for purchase (also available on reserve at Moffitt Library): Barma and Vogel, eds., The Political Economy Reader (2008) David Landes, The Wealth and Poverty of Nations (1999) Steven Vogel, Japan Remodeled (2006) Harold Wilensky, American Political Economy in Global Perspective (2012)

All of the other readings are in the Course Reader (available at Copy Central on Bancroft and on reserve), and some are also available on the bCourses site. PART I: CONTENDING PERSPECTIVES ON POLITICAL ECONOMY

Course Introduction (1/17)

Smith (1/19) Barma and Vogel, 1-40, 87-89, 107-116 [Introduction, Smith, M. Friedman].

Marx (1/24) Barma and Vogel, 41-62 [Marx and Engels]. Leo Panitch, “Thoroughly Modern Marx,” Foreign Policy (May/June 2009), 140-45.

List (1/26) Barma and Vogel, 63-86 [List]. Adam Davidson, “Trump’s Muse on U.S. Trade With China,” The New Yorker, October 12, 2016.

Polanyi (1/31) Barma and Vogel, 117-51 [Polanyi].

The New Institutional Economics (2/2) Douglass North, Structure and Change in Economic History (1981), 3-32. Barma and Vogel, 171-83 [North]. Recommended: Barma and Vogel, 185-94 [Williamson].

Sociological Perspectives (2/7) Barma and Vogel, 153-70 [Fligstein].

Hirschman (2/9) Albert Hirschman, Rival Views of Market Society (1986), 77-141.

Lindblom I: Systems of Control (2/14) Charles Lindblom, Politics and Markets (1977), 3-13, 144-57, 170-88, 201-21.

Lindblom II: Markets and Democracy (2/16) Milton Friedman, Capitalism & Freedom (1962), 7-21.

PART II: THE INDUSTRIALIZED COUNTRIES

MIDTERM (2/21)

British Industrialization (2/23) Barma and Vogel, 195-98. Eric Hobsbawm, Industry and Empire (1968), 1-39. Landes, 186-230. Late Development (2/28) Barma and Vogel, 199-228 [Rostow, Gerschenkron]. Landes, 256-75.

The Varieties of Capitalism I: The Role of the State (3/2) Wilensky, 3-14, 42-55. John Zysman, Governments, Markets and Growth (1983), 285-99. Robert Kuttner, “The Copenhagen Consensus,” Foreign Affairs (March/ April 2008), 78-94. Hacker and Pierson, “Making America Great Again: The Case for the Mixed Economy,” Foreign Affairs (May/June 2016), 69-90.

The Varieties of Capitalism II: Micro-Institutions (3/7 and 3/9) Barma and Vogel, 239-42, 289-326 [Hall and Soskice]. Vogel, 1-21, 51-77, 143-56, 205-24.

Regulation and Deregulation (3/14) Barma and Vogel, 329-54 [Seldon, Vogel]. View “Commanding Heights” (1995), Episode One, Chapters 14-16. View Elizabeth Warren, “Reigniting Competition in the American Economy,” Keynote Remarks at New America’s Open Markets Event, June 29, 2016.

Finance and the Financial Crisis (3/16 and 3/21) John McMillan, Reinventing the Bazaar (2002), 167-81. Wilensky, 135-48. Johnson and Kwak, 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown (2010), 3-13, 120-52. Peter Wallison, “Dissent from the Majority Report of the Financial Crisis Inquiry Commission” (2011), 1-8. View “Inside Job” (2010). View David Harvey animation on the Crises of Capitalism.

PART III: THE DILEMMAS OF DEVELOPMENT

Theories of Dependency (3/23) Peter Evans, Dependent Development (1979), 14-34. Andre Gunder Frank, "The Development of Underdevelopment," in Cockroft, Frank, and Johnson, eds., Dependence and Underdevelopment (1972), 3-17. Ben Ross Schneider, “Contrasting Capitalisms: Latin America in Comparative Perspective,” in Santiso and Dayton-Johnson, eds., The Oxford Handbook of Latin American Political Economy (2012), 381-402.

Latin America and East Asia (4/4) Peter Evans, Embedded Autonomy (1995), 43-73. Dani Rodrick, One Economics Many Recipes (2007), 13-35. Gurcharan Das, “The India Model,” Foreign Affairs (July/August 2006), 2–16. Development Strategies ( 4/6 and 4/11) Barma and Vogel, 425-82 [Lal, Chaudhry, De Soto]. Dani Rodrick, One Economics Many Recipes (2007), 153-69. The World Bank, World Development Report 2002: Building Institutions for Markets (2002), 3-27. Thandika Mkandawire, “Can Africa Turn From Recovery to Development?,” Current History (May 2014), 171-77.

What is Development? (4/13) Amartya Sen, Development as Freedom (1999), 3-53. E. F. Schumacher, Small is Beautiful (1973), 40-62, 163-70. View “Who’s Counting? Marilyn Waring on Sex, Lies, and Global Economics” (1995).

PART IV: POST-COMMUNIST TRANSITION

Eastern Europe (4/18) Barma and Vogel, 355-98 [Sachs, Stiglitz]. “Special Report: Russia,” Economist, October 22, 2016, 1-8.

China (4/20) Barma and Vogel, 399-423 [Guthrie]. Ghemawat and Hout, “Can China’s Companies Conquer the World? The Overlooked Importance of Corporate Power,” Foreign Affairs (March/ April 2016), 86-98.

PART V: PROSPECTS FOR THE FUTURE

Globalization (4/25) Barma and Vogel, 483-86, 497-504, 525-34 [T. Friedman, Strange]. Wilensky, 88-135, 148-151. View “Commanding Heights” (1995), Episode Three, Chapters 5-6, 8.

The Information Revolution (4/27) Barma and Vogel, 487-97, 505-23 [T. Friedman, Newman and Zysman].

NO CLASS on 5/2.

Course Review (5/4) Attendance optional. KEEPING UP WITH THE NEWS

In addition to the assigned readings for each week, you must keep up with current events by reading at least one quality newspaper and one news magazine on a regular basis. You will tap this reading for class discussion, bCourses memos, and the paper assignments. Recommended newspapers include the New York Times, the Financial Times, or the Wall Street Journal. Recommended magazines include the Economist, Fortune, the American Interest, the American Prospect, the Atlantic, the National Review, the New Republic, or the Nation. You may choose foreign-language journals as well. You are strongly encouraged to subscribe to the print edition of one newspaper and one news magazine, but you may also fulfill this assignment by checking Internet news sources regularly. You may also be asked to read news articles on bCourses from time to time. bCOURSES READING MEMOS

Write a one-paragraph memo (150 words maximum) on the readings (and/or assigned video) for the day and post it under the appropriate topic heading under Discussions on the bCourses site by 8 p.m. the evening before the relevant class. We will discuss some of the memos in class. Post your first memo by 2/1, and at least one memo every five class sessions until you have completed all five. You are encouraged to stay well ahead of this schedule and to complete this assignment early in the semester. See the bCourses site under Files for instructions on the early posting incentive program. The memos may take a variety of forms: 1) Critique one or more of the readings, 2) Relate the readings to a recent news story or news commentary, 3) Write your own question on the readings and answer it, 4) Propose a topic for discussion that relates to the readings, 5) Answer one of the study questions. Feel free to exercise your creativity with this assignment. Do not summarize – you may assume that your classmates have done the readings. And do not answer the study questions more than twice during the semester. bCOURSES FREE DISCUSSION MEMOS

You are also encouraged to post Free Discussion Memos (under Discussions) on the bCourses site. There are no restrictions on the length of these postings: very short or very long is fine. You may write about anything relevant to the course. For example: review a book or a movie, report on a public lecture on campus, discuss a news article or opinion column, or debate policy issues. You might think of this as an online conversation, so you are also encouraged to respond to other students’ postings. Free discussion memos do not count toward the quota of five reading memos, but they do constitute one form of class participation. PRESS REVIEW PAPER (Due as a Word or PDF document via bCourses by 4 PM on 3/24)

Write a 1500-word (about 5 pages) paper reviewing press coverage of a news story during the period of this course, January-March 2017. You may review one newspaper or news magazine’s coverage of a story, or compare two or more sources’ coverage. Is the coverage accurate and insightful? Is it biased? Do the reporters have a good understanding of politics and economics? How could the reporters improve the coverage? Make sure to analyze and critique the coverage, incorporate course readings and material from lectures into your analysis, and cite multiple examples from specific news clips.

COMPARATIVE PAPER (Due as a Word or PDF document via bCourses by 4 PM on 4/21)

Write a 1500-word (about 5 pages) paper comparing and contrasting some aspect of the political-economic systems of two countries. Rather than surveying everything, focus on a specific institution or set of institutions: for example, the labor relations system, the financial system, interfirm networks, the corporate governance system, the welfare system, or the regulatory system. Feel free to focus quite narrowly on one specific element of these systems: for example, wage bargaining, securities regulation, corporate board structure, unemployment insurance, or telecommunications regulation. In the essay, describe the similarities and differences between the two countries and then outline two or more ways you might explain the differences. For example, you might explain the differences on the basis of history, institutions, ideas, interests, or some combination of these factors. See the Zysman reading for ideas. Present two or more possible explanations, and demonstrate how these explanations build on course readings or other course materials. You are not expected to prove your case with thorough evidence, but you may want to suggest what sort of evidence would help you reach a more definitive conclusion. This is not meant to be a full-fledged research paper. You should base your paper primarily on course readings plus news clips from this semester. Depending on the topic, however, you may need to supplement this with some research.

Note: You are strongly encouraged to discuss your paper topics with your GSI and/ or the instructor well in advance of the due dates.