Political Science 342 Spring, 2013 Dr. Cohen POLITICS AND THE ECONOMY This course explores the relationships between politics and economic life in the contemporary world. In particular, it will focus on the various interactions between market capitalism and the world of political action and public policy, and approach these interactions at three different levels: - The different theoretical traditions in classical and contemporary political economy, which focus on the nature of modern capitalism and the ways it shapes modern politics - Comparative Political Economy, which studies the different ways in which political economies are structured on the national level. Here we will focus on the political economy of the US and of China. - International Political Economy, which studies the ways in which global patterns of economic and political power shape the political and economic fates of states and citizens. Here the discussion will center around the debate over “globalization”. In the process, we will try to gain an understanding of the many ways in which our political life is shaped by market capitalism, the ways the market itself is shaped by political action, and the difficult choices these relationships pose for us in an increasingly interconnected and interdependent world. In particular, the discussions will center round the troubled relationships between capitalism and democracy, two of the defining values in contemporary political life. From the emergence of capitalism and the modern state until the early 20th century, the study of the relationships between politics and economic life was well known under the rubric of “Political Economy.” The separation of the disciplines of political science and economics (and the other social sciences), however, led to decades of neglect of this kind of study. In recent years, though, there has been a resurgence of interest in political economy, and the topic is now the focus of work in all of the social sciences. In this course, we will draw upon the work of scholars in a number of fields to try to put together a picture of the relationships between politics and economic life in the modern world and the choices and challenges they force us to confront. As you will see, almost every issue in the study of “political economy” is the subject of fierce debate, even the meaning of the term itself. This course is organized around my own positions in these debates, which will become clear as we go along. But the aim this semester is not to provide answers so much as to stimulate thought and discussions about the very important issues raised in this field of study and debate. READINGS: The following books are required reading for the course and are available for purchase in the College bookstore: James A. Caporaso and David P. Levine, Theories of Political Economy. (Cambridge) Marc A. Eisner, The American Political Economy. (Routledge) Doug Guthrie, China and Globalization. (Routledge) Dani Rodrik, The Globalization Paradox. (W.W.Norton) Additional readings may be included over the semester, and will be posted on MyWestminster and/or passed out in class. COURSE OUTLINE: The course readings and discussions are organized around three general sections. First, we will review the major classical and modern perspectives and debates on political economy. These range from broad discussions of the nature of capitalism to analysis of the relationships between the state and the economy in the contemporary world. Second, we explore the field of comparative political economy. This area of study focuses on the different ways in which states and economies are organized in different countries. Our focus here will be on the US and China, two very different political economies but the ones which will have the most impact on the evolution of capitalism and democracy over the coming decades. Third, we will explore the field of international political economy, with a focus on the debates over the nature and impact of globalization. As will become evident, the issue of globalization runs throughout the course, and the last sections will bring us back to the fundamental questions raised at the beginning of the course. (More generally, these sections are not self-enclosed – key themes and debates which are the focus of one section will nevertheless be discussed and developed in others.) NOTE: I hope to stay as close this schedule as possible, but it is flexible. We can spend more or less time on any given topic or reading, depending on interests and the class discussion, and may take detours in which extra readings are used to explore a particular topic in more depth. We have extra time at the end of the semester to catch up if we need to. A) The Major Theories and Frameworks of Political Economy. This section introduces the main frameworks and approaches to understanding the nature of capitalism and its relationship to politics and democracy. It has two sub-sections: we first explore the classical theories and debates regarding capitalism, and then turn to contemporary frameworks for understanding the relationships between the state and economy in contemporary political economy. 1. Capitalism: The Classic Debates. January 15 – Course Introduction: Politics, Economics, and Capitalism. Reading: Caporaso and Levine, Introduction and Chapter 1. January 17 – Classical Political Economy: Smith and Ricardo. Reading: Caporaso and Levine, Chapter 2 January 22 – No Class (Monday Classes Meet). January 24 – Marxian Political Economy. Reading: Caporaso and Levine, Chapter 3 January 29 – Neo-Classical Political Economy…and “Economics”. Reading: Caproaso and Levine, Chapter 4. January 31 – Keynesianism. Reading: Caporaso and Levine, Chapter 5. 2. Debates on State and Economy in Contemporary Capitalism. February 5 – The Economic Analysis of Politics. Reading: Caporaso and Levine, Chapter 6. February 7 – NO CLASS – Professor At United Nations. February 12 – Power and the State…a Political Economy. Reading: Caporaso and Levine, Chapter 7. FIRST EXAM – Thursday, February 14. B) Comparative Political Economy. In this section, we look in detail at the different forms of relationship between the state and the economy in contemporary societies. The focus is on the domestic sources and development of distinctive forms of political economy in societies that are nevertheless capitalist in their general features. Here, our focus will be on the US and China. Clearly these are very different states and societies, but their development and relationships will be central to the evolution of capitalism in the coming decades. Along the way, we will encounter additional approaches to the study of contemporary political economy – institutionalism and economic sociology – and begin the discussion of globalization and the global financial crisis. 1. The American Political Economy. February 19 – Institutional Political Economy and US Capitalism. Reading: Eisner, Chapters 1 and 2. February 21 – Progressivism and the New Deal Regime. Reading: Eisner, Chapters 3-5. February 26 – Neoliberalism and the Crisis of Keynesianism. Reading: Eisner, Chapters 6-8. February 28 – Globalization and the Financial Crisis. Reading: Eisner, Chapters, Chapters 9-11. SPRING BREAK – March 4-10. 2. The Chinese Political Economy. March 12 – Economic Sociology and the Chinese Context. Reading: Guthrie, Chapters 1 and 2. March 14 – Transformation of Chinese Society and Economy. Reading: Guthrie, Chapters 3-4. March 19 – New Challenges for the Chinese Political Economy. Reading: Guthrie, Chapters 5-6. March 21 – The Future of Democracy in China. Reading: Guthrie, Chapter 7. March 26 – China and/in the Global Political Economy. Reading: Guthrie, Chapter 8. March 28 – No Class (Monday Classes Meet). SECOND EXAM – Tuesday, April 2. C) International Political Economy. In this section, we explore the development of global patterns of production, investment, and finance, the ways in which states have both encouraged and tried to control these trends, and the impact of the increasing interlinking of economies and states on the possibilities for democracy in the coming decades. In the past two decades, these trends have been analyzed under the rubric of “globalization.” Despite the limits of this term, our discussion will use this as a starting point. In the end, we will come back to the broad debates on the nature of capitalism, with which we begin the course. April 4 – Globalization: History and Debates. Reading: Rodrik, Introduction and Chapters 1 and 2. April 9 – Globalization and the Debate over Trade. Reading: Rodrik, Chapters 3-4. April 11 – Globalization and the World of Finance. Reading: Rodrik, Chapters 5-6. April 16 – Globalization and “Development”. Reading: Rodrik, Chapters 7-9. April 18 – Globalization, Capitalism, and Democracy. Reading: Rodrik, Chapters 10-12. RESEARCH PAPERS DUE – Thursday, April 18. PAPER PRESENTATIONS – April 23-May 2. ASSIGNMENTS: Your grade for this course will be based on your grades on the following assignments: 1) A short answer/essay exam, which will cover the material on the classic and contemporary theoretical debates over capitalism and politics (section “A” of the syllabus). This exam will be given in class on Thursday, February 14, and your grade on this exam will count for 20% of your total grade in the course. 2) A short answer/essay exam, which will cover the material on the comparative political economy of the US and China (section “B” of the syllabus). This exam will be given in class on Tuesday, April 2, and your grade on this exam will count for 20% of your total grade in the course. 3) A research paper, about 15 pages in length, in which you explore and analyze a contemporary policy-oriented question – i.e. the financial crisis, the fracking controversy, climate change (or other environmental challenges), the future of trade, US-China relationships, etc. – in a way that employs the tools of political economy that we discuss. Your approach can be empirical, normative, or both. I will provide more guidance on these topics early in the semester, and work with you as you develop your paper.