Political Science 341-0 International
Political Economy
Sum up Schweller - maxwell's demon and the golden apply: global discord in the new
millennium correct answers Talks about global public goods - only hegemonies can do
this; talks about declining hegemon and circumstances where this can happen
Global public good correct answers Preventing pandemics, averting asteroid strikes,
securing loose nukes - non excludable and nonrivalrous so everyone better off; often
under provided or not provided at all because not excluded (problem of collective
rationality) - state structure anarchy so no taxation, no system to get
contributions/enforcement; only powerful hegemons can do this - provide global public
goods for free and have net benefit for them and everyone
Hegemonic wars and 3 essential political tasks that restore international order correct
answers Creation and crowning of new hegemons - usher in periods of peace;
concentrate power in hands of one dominant state (hegemon alone can create
international order, legitimacy, willingness); destroy old order; make it clear who has
power and who does not (bargaining)
What hegemons do correct answers International leadership for provision of global
public goods and international regimes (global governance structures) in various issue-
areas like trade, monetary, security, technology, energy; acts like state but free of
charge; lets others take advantage of it - so smaller states benefit more
Declining hegemon - 3 reasons correct answers Can no longer deliver goods by own
efforts alone; no longer wants to do it as competitors rise; some or all rising powers no
longer view what hegemon supplies as public goods/legit; becomes more narrowly self-
interested
Notion of impossibility of collective action correct answers False - secondary powers
willing participate provided they benefit and have some power to have impact; minimum
number of states that will benefit from cooperation despite noncooperation of others;
benefits of cooperation for cooperating states begin to outweigh the costs
Does declining hegemony mean end of international order? correct answers No - small
group of large countries that share common interest can cooperate to provide them
Sum up Keohane - international institutions: can interdependence work? correct
answers Importance of international institutions; talks about when successful, when not,
how evolved over time, how can resolve collective action problems; democratic deficit
with them and how overcome
,International institutions correct answers Rules that govern elements of world politics
and organizations that help implement those rules
History of international institutions 1919-1989 correct answers Rejection of league -
negotiations on ad hoc basis; only with UN and strong US support did they really come
to be important; yet UN paralyzed because no enforcement power and UNSC vetoes;
still NATO, GATT, IMF very important; 70s oil crises led policymakers in US to want to
come up with international institutions o regulate these issues (founded IEA 1974; IMF);
80s broke with legalism (law can be effective regardless of politics) for realism (state
power and competing interests) - reducing transaction costs
Uncertainty and credibility correct answers Preferences of states amount to private
information - respond to uncertainty by being less willing to enter into agreements;
promote negotiation with transparency - international institutions can do that
History 1989-1995 correct answers 3 shortcomings (insignificant since stats wield only
real power, weakness of UN - but policies emerging different from what powerful
brokers wanted; anarchy - but prefer relative gains only when two major players (arms
races, monopolies), most multilateral; cooperation not harmonious and emerges out of
discord - but bargaining problems could produce obstacles to achieving joint gains)
Impact of end of Cold War correct answers International politics during it were
materialistic - national interests shaped by economics; but then self-determination and
values since 80s, beliefs of actors important for outcomes (how think about
expectations, differentiated information, other side)
Democratic deficit correct answers Composed of elites, not directly responsible to
individuals; says NGOs could help fix this, make it less closed door; transnational
society and incorporate into decision making
Sum up Chang - kicking away the ladder: infant industry promotion in historical
perspective correct answers Talks about how developed countries are hypocrites (did
protectionist policies when catching-up, unfair to say these policies are bad now when
the good policies of free trade and laissez-faire harmful to developing countries)
Official history of capitalism correct answers Britain - from 18th switched to free trade,
new liberal world economic border; WWI - trade barriers put up, US Smoot-Hawley
1930; but then WWII and GATT talks liberalization made progress, interventionist
policies abandoned in 80s with neoliberalism; yet economic growth stagnating and
failing in developing countries
Scope of intervention before WWI correct answers Limited - limited budgetary policy
because balanced budget; limited monetary policy because no central bank and had
gold standard; limited command over investment resources
,Britain and catching-up correct answers Activist policies to promote infant industries;
1721 walpole PM, aggressive ITT policies, export subsidies, protection for infant
industries; moved to free trade with repeal of corn laws in 1846
US and protectionism correct answers Most ardent user of infant industry promotion;
1816-end of WWII one of highest average tariff rates
Productivity gap today correct answers Then 2 or 4 to 1; now 50 or 60 to 1 - need
protectionist policies to make up this gap
Sum up Blustein - misadventures of the most favored nations correct answers Talks
about history of GATT and WTO; Zoellick and Lamy; 2003 negotiations and Imboden,
G-20
Structure of WTO correct answers No powerful bureaucracy like IMF and World Bank;
General Council primary decision-making body; secretariat some influence over key
decisions but mostly member-driven organization; each country one vote - power evenly
distributed; favored nation treatment (treat everyone the same - no discrimination
against country's goods)
History of WTO correct answers After Depression - mitigate egg war between US and
Canada, reaper damage, multilateral institution to open markets and limit ability to
restrict imports in future; tariffs lowered and bound (never raise above certain levels);
most favored nation (MFN) treatment, national treatment (treat imported and locally
produced goods equally at least after foreign goods entered market); GATT then WTO
but GATT no teeth - country found in violation could refuse recognize ruling; WTO came
out of Uruguay Round - lower trade barriers, expand into agriculture, services,
intellectual property protection, modernize international trade rules
How to join WTO correct answers Negotiate bilaterally with any WTO member that
wishes to obtain some changes in prospective new member's trade regime and all
changes that are agreed are extended to entire membership in accord with MFN
principle
China joining WTO correct answers US demanding top-to-bottom makeover of chins
economy; still stat enterprise with cradle to grave, bureaucratic banking system, heavy
government interference and party officials; but freed themselves from threat of
unilateral action against exports; most quotas and license requirements eliminated;
average tariffs cut; allow foreign firms in
Zoellick and Lamy correct answers Critical relationship; lamy wanted limited opening of
european agricultural markets, push singapore issues (expand jurisdiction into areas of
investment, competition policy, government procurement and trade facilitation), wanted
to include environment issues; US did not want that - wanted barriers in agriculture to
come down
, 2003 negotiations correct answers US-EU plan for cotton; africa resisted - cotton prices
down, wanted reductions in farm subsidies US and EU wanted, cuts in amber box
subsidies (encourage farmers overproduce, biggest impact), caps on green box
(payments for conservation), eliminate blue box (blocking US plan categorize payments
program); whole thing failed - breakdown over singapore issue (criticized US for doing
that on purpose so no breakdown on cottom and not take blame)
Sum up Davis - Why adjudicate? enforcing trade rules in WTO correct answers Smaller
countries disadvantage - less money, expertise, legal costs high, smaller market size;
but advantages to them - forces both sides make consistent argument based on existing
law, cannot issue threats, adds leverage; Advisory Centre on WTO law for legal
assistance, membership fee; compares Peru (in WTO) and Vietnam (not in WTO - only
bilateral agreement; did not get what wanted); Peru challenged European food labeling -
unfair based on Technical Barriers to Trade (TBT) agreement (technical regulations
should not have effect of creating unnecessary obstacles to international trade and
encourages members to use international standards as basis for regulations), fishermen
and sardines; got help from advisory centre - huge impact, also help of third parties
including US; peru won
Markets correct answers Allocatively efficient but amoral; more efficient at allocating
scarce goods and resources than any other form of social organization; but amoral -
don't make value or social judgements; this logic conflicts with logic of the state; price
signals don't make choices about whether something is socially valuable or not
State logic correct answers Socially purposive logic of allocation; value-conscious
Political economy is result of correct answers Tension between states and markets
Coordination of supply/demand graph correct answers New price/quantity equilibriums
result without central planner giving people directives
Von Hayek - market v states correct answers Decentralized price mechanisms bring
solution and ensures knowledge of the particular circumstances of time and place will
be promptly used; price signal operating freely as coordinating device and as
mechanism through which information coordinated in decentralized fashion
States v markets (Gosplan) correct answers SU, command economy; highly complex
economy; decentralized markets compared to this more efficient mechanism
State-market interaction at the international level involves multiple sovereignties
in___environment correct answers Anarchical (no world state)
3 complicates with international part of IPE correct answers Cross-border spillovers
(pursue different social purposes - not contained in borders (COVID as example);
chinese government using unsubsidized exchange rate affects similar industries in US;
real reasons for cooperation and coordination at international level, creates conflicts);
