Exam Guide (Elaborations from all readings and lectures 17/20) International Political Economy 2023/2024 (4023477ENR)
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Course
International Political Economy (4023477ENR)
Institution
Vrije Universiteit Brussel (VUB)
Exam questions and responses for all given essay questions for Professor Musliu's International Political Economy course.
The notes include a deep analysis of all information we learned about the question topic, an argumentative stance including evidence and counter-points, multiple options for...
IPE Exam Questions
Questions:
1. What is haute finance and what are its political and financial relevance in 19th-century Europe?
a. Short
b. WAS ON EXAM JANUARY 2023
2. Discussing the disparities in socio-economic development between Sonora (US) and Sonora
(Mexico), Acemoglu and Robinson argue that the role of institutions is conducive to a
higher/lower level of socio-economic development. Explain their argument and engage with a
reading (critique) of their argument.
a. Long
b. WAS ON EXAM JANUARY 2023
3. Several economists have made the distinction between extractive institutions and inclusive
institutions to explain different systems in political and economic systems. In your view, what are
the limits of thinking about development and political-economiFc systems in terms of extractive
vs. inclusive institutions?
a. Short
4. In The Great Transformations, Karl Polanyi makes an argument about “the myth of the free
market”. How does he explain the free market and what is the argument behind it [the free
market, the self-regulated market] being a myth?
a. Short
5. The Communist Manifesto by Marx and Engels has retained its status as a landmark reading in
international political economy. What did the two fail to anticipate when it comes to the redoing
of the world order and what would you say are the blind spots in their argument?
a. Short
b. WAS ON EXAM JANUARY 2023
6. What are the key institutions of the welfare state/social policy?
a. Short
7. The paradigm of greed has been used to explain the co-constitutive relation between natural
resources and warfare. In your analysis, explain what the advantages and disadvantages of the
greed paradigm in understanding the political economy of warfare.
a. Short/long
8. What are the merits and the limitations of the thesis of Collier and Hoeffler on grief and
grievances debate (circa 1990s)?
a. Short
9. In “Knowing Capitalism”, Nigel Thrift makes a three-layered argument about “the difficulty to
see capitalism”. Pick one of the three arguments and explain the nature of capitalism and the
(im)possibility of knowing it.
a. Short
10. Diamonds in Angola have traditionally shaped the country’s security, political and economic
relations. Discuss the political economy of this resource abundance and/or resource curse.
a. Long
11. Dani Rodrik talks about three waves of capitalism and the impact each wave has had in
demarcating the borders of the global economy. Briefly discuss these three waves and explain
what Capitalism 3.0 would look like.
a. Short or long
, 12. Looking at the varieties of capitalism, Ernesto Gallo makes the case for authoritarian
neoliberalism and illustrates it in the case of Hungary, Italy and Kazakhstan. Take one of these
case studies and explain the merits and limits of authoritarian neoliberalism.
a. Long
b. WAS ON EXAM JANUARY 2023
13. Many have argued that despite criticism, capitalism (as an economic and political system, among
others) has proven to be a very resilient system. Referring back to the Bretton Woods
Agreements, discuss whether 1) capitalism is a resilient system; and 2) what institutional
(welfare state), political (democracy, so that people can feel they influence it) and economic
(raised overall conditions) factors contribute to such resilience.
a. Short or long
14. What are the three different ways of conceiving gender in the political economy of wartime
gender violence?
a. Short
15. The European Green Deal is the most ambitious environmental, economic and political project of
the EU. Yet, for many, the European Green Deal is not considered an equitable transition system.
Discuss why is that the case.
a. Long
b. Okay
16. The European Green Deal has been confronted by the political and economic impacts of COVID-
19 as well as Russia’s war against Ukraine. Discuss the nexus between politics and
environmental economics of the European Green Deal in relation to Russia.
a. Long
17. Identify the different welfare regimes and discuss their main differences.
a. Long
18. The restructuring of the economic architecture of countries outside the EU is quintessentially
related with the notion of Europeanization and modernization. Discuss the political economy of
homonationalism and queer politics in the South Caucasus.
a. Long
19. “Fit for 55” is a hallmark program of the European Green Deal crosscutting a number of
political, financial and economic policies. Discuss the political and economic implications of one
of the following programs of Fit for 55: 1) Carbon Border Adjustment Mechanism (CBAM); 2)
Waste shipment.
a. Short
20. What are the main principles of Everyday Political Economy and how does it differ from
traditional approaches to reading political economy?
a. Short or long
This exam is quite conceptual and places high importance on the strength and organisation of one’s
argument. For this reason, there are no absolutely correct answers. As such, these notes provide a
thorough analysis of relevant information from the relevant readings, as well as some outside
reflections.
Key:
Blue sections are important pieces of the question that need to directly be addressed.
Grey sections are less relevant background information, that should be known for deeper
understanding, but not likely written on the exam.
,Orange sections are speculative considerations and/or potential faults in the argument presented.
Engaging with these should help one strengthen their own understanding.
1. What is haute finance and what are its political and financial relevance in 19th-century Europe?
(WEEK 1)
Readings: Polanyi; slides
· HF is the unofficial, amphibious connection and alignment of economic and political interests
that effectively orchestrated the peace of Europe in the interests of the Great Powers. It was a sui
generis institution, both permanent and elastic, that closely connected governments and central
banks. Embodied by the Rothschild family who specialised in trading and exchanging currencies,
they globally integrated access to financial markets. The Rothschilds and those like them
provided the same services the IMF provides today: stabilized major currencies and provided
loans to governments, at a great profit to themselves. The profits is what made HF so powerful as
all over the world growing economies wanted access to economic opportunities.
· HF was relevant politically in that being connected to HF determined political power by securing
a place on the global stage, and connecting states in a way that served mutual peace. The financial
relevance is obvious, in that only those were connected to the global economic system through
the use of the gold standard and HF had strong opportunities for trade and investment. HF was
sort of like being in the “in crowd” of the 19th century.
· HF was not born as an institution for the maintenance of peace, but as the Great Powers saw a
need for political peace amongst allies for the functioning of the international economy, it became
a strong method to ensure it. The influence that HF exerted on the Powers was consistently
favourable to European peace. Loans, and the renewal of loans, hinged upon credit, and credit
upon good behaviour. In turn, political goals held great strength when they were enforced with
the timely pull of a thread in the international monetary system. Thus, following political norms
defined by the Great Powers determined a state’s economic opportunities for investment and
growth which was strictly enforced through HF. In the 19th century, HF displayed the co-
constitutive relationship between economics and politics.
·
o haute finance was the given link between the political and the economic organization
of international life.
o It was a sui generis institution
Functioned as main link between political and economic organisation of the
world
Supplied international peace
Permanent and elastic
Independent but closely connected with governments and central banks
Aligned with diplomatic aims
Political aims still superseded profits
o E.g. French and German transactions were limited
o Organisational structure:
International center
Half-dozen national centers in banks and stock exchanges
Foreign investment in industry, public utilities, banks, long-term public and
private corporation loans
Influenced semi-colonial regions as well (Near East and North Africa)
, · Christianity left money-lending and finance to Jewish people as they could not do it themselves
o E.g.: Rothschild family from at least mid-1500s.
Specialised in trading currencies and exchanging coins
A Rothschild worked for a German (Wilhelm) and when Napoleon invaded
Germany-area, the Rothschilds moved to London and transferred their wealth
there. They then loaned money to the British government, essentially funding
British support to Germany against France – an example of how money was used
for political aims
Rothschild brothers dispersed over Europe, but coordinated policies
i.e. global reach and global integration
Became nobility due to their influence and success
o Provided same services the IMF provides today: stabilized major currencies and
provided loans to governments, at a great profit
o Rothschilds embodied HF and internationalism
Business would be impaired if a general war between Great Powers began, thus
had interests in stopping it
Did not stop them from profiting from war
Had no objection to short or localized wars
· From slides:
o “The field of IPE studies the interaction of markets (transactions involving goods,
services, money and labour) and systems and structures of power (conventionally
states, but also international organizations, political parties, social movements) and
emphasizes the role that material interests, institutions, ideas, norms, practices, and social
conventions play in shaping these interactions. A central theme informing the course is
that politics and economics, rather than being two separate disciplines and processes,
they are co-constitutive and constantly (re)produce one another.”
Thus, HF is the original thinkers of IPE
It is in and affected by everything, everyone, and everywhere
Decentralised, global
· Post Holy Alliance
o Concert of Europe: to maintain peace amidst a balance of powers alongside changing
social and economic progress [and then League of Nations]
Peace was not total
Only if peace was possible to attain without sacrifice – especially if the
costs were independence, sovereignty, glory, or the future aspirations of
the Powers
Proxy wars, small-scale interventions, temporary violence was fine as it
does not disrupt the economic system
Only wanted to avoid total war amidst Great Powers
o The international economic system needed peace in order to
function, the balance of power was made to serve it
o E.g. Bismarck fostered idea of common peace with other Powers
to protect own German power
Required HF
“Undisclosed powerful social instrumentality at work in the new setting, which
could play the role of dynasties and episcopacies under the old, and make the
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