January 18

I. Introduction and Welcome
II.  Administrative Tasks
III. Review of assignments, requirements and exams
IV. Themes of the course include:
        1. Clear idea of what globalization is and is not.
        2. Relationship between markets and politics
        3. How the "global economy" is impacting national economies vice versa.
        4. What are the consequences of global of the economy on workers, firms, and states.

January 20

I.  Common themes and questions raised by readings.
II. Conventional view of globalization:  "hyper-globalization" (Veseth) or "globalized economy" (Hirst and Thompson)
        1. Demise of post-war consensus
        2. New relationship between firms and states
        3.  New type of firms
        4. Implications include:  geography no longer matters; nation states no longer matter; and national cultures disappear.
III. Veseth's understanding of globalization and its impact
        1.  Finds that global resource pools are growing in size but that they remain national
        2. Geography, nation state and culture still matter.
        3. Even though "hyper-globalization" is wrong it still matters
                    a. Used to sell private policies
                    b.  Used to sell public policies
                    c.  Increase state power
                    d. Can support or destroy democracy, and is used by political entrepreneurs.

January 25 & 27
I. Review and summary of Veseth
II.  Why is globalization viewed as a "Necessary Myth" by Hirst and Thompson?
        1. What is the myth?
        2.Why is it dangerous?
        3. What's missing?
III. America's role in the international economy prior to 1970
IV. What happens after 1970 to America's role in the international economy after 1970
V. What is the difference between internationalization and globalization?
    1. Features of internationalization
    2. Features of globalization
VI. The concepts are not mutually exclusive.

January 31
I. How to think about globalization
        1. Review of two models:  Hyper-globalization and the Skeptics
        2. A third model of globalization focuses on how states and societies are transformed by global interconnectedness.
        3.  To view the chart that compares all three models, click here.
II. Comparing the three approaches
        1.  How do they conceive of globalization?
        2. What are the causes they cite to?
        3.  What is the impact of globalization?
        4.  What's is the future likely to be?
III. Transformational perspective (Held et al.)
    1. Globalization defined.
    2. Four measures for globalization
                    a. Extensity
                    b.  Intensity
                    c. Velocity
                    d. Overall impact
    3.  How do we study the impact of globalization?  How does it change things?
                    a. Decisional
                    b. Institutional
                    c. Distributional
                    d.Structural

February 2 (Held et al.)
I. Other terms and definitions
    1. Government
    2. State
    3. Regime
    4. Nation
II. Historical development of the Nation state.
III. Historical forms of globalization.
IV. Present state of globalization.

February 8 & 10 Lecture

I. Review of last weak; within developing countries nation states development differently.

II. Three different views on the state and globalization
1. Held
2. Evans
3. Cerny

III. Development of global inter-connectedness
1. Treaty of Westphalia the foundation for state autonomy.
2. Industrial Revolution until the 2nd World War
3. 2nd World War to the present
i. Emergence of global politics
ii. Challenges to traditional distinction between domestic/international
iii. Nation-State must share power with non-state actors
iv. Formation of an international regime
v. Communication/Infrastructure increase velocity of inter-connectedness.

IV. Evan's view -  Is the State being Eclipsed?
1. What is the relationship between global markets and states?
2. New Political Economy  - De-linking of economic actors with the political environment. Strong states=strong profits.
3. What factors likely to eclipse the state?

V.  Global vs. State finance (Cerny)
1. Historical account of the relationship between states and financial markets similar to Evans and Held.
2. How have states traditionally used financial markets for policy purposes.
i.  Housing and the savings and loan system.
3. International markets and technology lead states to adapt in important ways that gives financial markets even greater control and leverage at the expense of the state.
i. Dis-intermediation (the transfer of funds by investors from low-paying depository institutions to direct investment in final lending and other intermediaries.
ii. Securitization - the deconcentration of risk from a single group of investors to a much larger group.  Packaging, valuation of loans and then their bulk sale to many investors. Lots more things for foreign investors to buy, makes oversight more difficult.
iii. Greater price sensitivity across borders.  Leads to forced deregulation.

4. States may still be important but the limits of re-regulation - and any meaningful recuperation of state autonomy are growing daily.

February 15 & 17
Engaging Global Markets
I. Theory of Comparative Advantage - Why Tiger Woods should not be making his own clubs?
1. What is the theory?
2. What are the assumptions?
3. Fits with the 19th century but not the 20th.

II. Burtless et al. argue that the strategies need to be focused on keeping markets open. - the classical argument.

III. Michael Porter and others seek to develop strategies for firms not nations for achieving and maintaining competitive advantages.
 

March 2 & 4

I. Neo-classical model of the economy
a. Assumptions on which NCE is based
b. Two principals that flow from the assumptions
c. Several other critiques

II. An alternative view of states and markets focuses on institutions
a. What are institutions?
b. Certain types of institutions are particularly important for understanding variations in states and market.
c. Go over table of questions
d. Example of Germany and the UK and how an institutionalist approach help makes sense of their differences.  Factors that make firms competitive.

III. Impact of globalization on capitalist diversity
a. Different "institutionalist" countries seemed to dominate until the 1990s.
b. New pressures
c. What factors give an advantage or disadvantage to Anglo-American model.
 

March 7
United Kingdom

I. The Industrial Revolution
1. Britain benefits from being first.
 2. What are the important features of this societal change?
i. specialization
ii. deskilling
iii. class system
iv. move from rural to urban

II. The Legacy of the Industrial Revolution and its impact on British State and State capacity.
1. Up to the early 1900s
i. Export-based economy
ii. Mutual dependence between societal actors and the state, i.e., aggressive imperialism along with more public participation in governance.
iii. Liberal public philosophy/ Laissez-faire economics
iv. Strong financial sector

2. Industrial Crisis
i. What happened?
ii. Lack of institutional resources to respond effectively to crisis
iii. Continued commitment to a strong currency
iv. Lack a coherent state policy

3. Post-war consensus between conservatives and labour party 1945-early 1960s
i. Keynesian Management
ii. Welfare State Light
iii. Only moderate growth

4. Break-down of the post-war consensus; 1960s-1980s
i. Failure of Keynesian policies
ii. Incomes policy fails
iii. The failure of the Neddies

III. The Thatcher Years - Conservative Capitalism
1. Why the British state was particularly powerful in carrying out the changes.
    a. Note the differences between US and British system
2. What types of policies are associated with C.C.?
    a. Lower taxes
    b. Less government
3.  Why did or did it not work?
    a.  Outcomes
    b. Assumptions on which CC is based are inconsistant with reality
        -Individuals
        -Society

March 9
I.  The United States' Economy
Terms: Vertical Integration; Horizontal integration; Sherman Anti-Trust Act of 1980; Clayton Anti-trust Act of 1914; trade deficit; backward integration and forward integration.

II. Historic Developments of US Capitalism - Some strong similarities with Britain.
 1. Liberal culture.  Strong belief in markets and individual liberty.
2. Produced largely standardized production.
3. Highly successful in exploiting new markets.

III. Dis-similarities

1. In the US, markets were developed long before the state.  Under develop public capacity.
-Partly a result of a culture resistant to state intervention.
 -Lack of state capacity (very little history)
 -Geography
 -Diffuse power; little policy coherance
2. No real aristocracy (land-owning elite) and a lack of a sharp class distinction.
3. Materialist culture
 

March 14
On board: MITI, amakudari, corporatism w/o labor, enterprise unions,
industrial policy, sunset industries, tariffs, non-tariff barriers
I. History
A) Meiji Restoration and the Revolution from Above (1868-1912)
B) Taisho Democracy and its Failure (1912-1925)
C) Post WWII
II. The civil service and keiretsu
A) Labor-management relations
IV. The Iron Triangle
V. The development state
VI. Results: huge growth, technological advancement, corruption, anticonsumerism, foreign resentment

March 16 France
I. Three major themes of French Politics
II. Historical Context
    1. State building and democracy (1789 to 1944)
    2. Post-war Settlement - "30 glorious years"
III. Institutions of French Capitalism
IV. State
V. Markets
VI. Firms
VII.  Finance/Banks
 

March 26  Germany
I.  Historical Overview
 a) Domestic cleavages, international pressures
 b) Second Reich, 1870-1918
 a) Unification
 b) Revolution from above
 c) The early welfare state

II. The German Model
1. State
2. Markets
3. Firms
4. Economic Culture
5. Industrial Relations
6. Publically enabling associations

III.. How did they shape economic policies?

IV. Challenges to the German model
1. Natural limitations
2. Globalization
3. German unification