Western Michigan University
School of Public Affairs and Administration
PADM6180, Political and Economic Environment of Public Administration
Fall 2015
(Thursdays, 6:00 to 9:00 pm; LCC University Center, Lansing)
Udaya R. Waglé, Ph.D.
School of Public Affairs and Administration
Western Michigan University
226 East Walwood Hall
1903 W Michigan Ave
Kalamazoo, MI 49008
Phone: (269) 387-8934; Fax: (269) 387-8935
Email: udaya.wagle@wmich.edu; Homepage: http://homepages.wmich.edu/~uwagle
Background
The concept of political economy is central to almost every operational or policy problem arising
across all levels and forms of government. Every problem facing government agencies involves
economic analysis, using concepts, tools, and techniques developed in the field of economics,
and yet the decisions involve political processes and their execution occurs in political settings
and contexts. Politics in this sense provides the setting or battlefield in which economically
driven problem analyses and outcomes are executed. It is in fact this marriage between politics
and economics that governs how public administrators and policymakers are situated, how
administrative or policy decisions are made, who is impacted, and how such impact is assessed.
Students of public administration and policy need to be equipped with a good grasp of theories,
frameworks, and approaches that undergird how administrative or policy problems are
conceptualized and addressed and how individuals, the private market, and other sociopolitical
institutions interact with the government.
Catalogued Course Description
This course examines the interplay of political and economic forces that impact roles and
capacities of public administrators in the governmental and non-profit sectors. The course also
reviews trends in the global economic system affecting the roles of public-serving organizations
in the economy in regulating, stimulating, and mitigating the social and political impacts of the
private economy. Covered topics may include: the administrative politics of interest group
influence and agency constituency building; the politics of bureaucratic accountability,
performance, and legislative control; interactions between citizens and bureaucracy; bureaucratic
ethics; the economic roles of government and the non-profit sector in the global economy; and
ties between the administration of public-serving organizations and economic institutions and
1|Page
processes. Students are encouraged to obtain a fundamental knowledge of basic economic
concepts prior to taking the course.
Course Objectives
While the concept of political economy is quite broad touching on human nature and the
evolution of societies, this course focuses on theories, frameworks, and approaches that are
relevant to framing and analyzing problems in the field of public administration and policy. This
course exposes students to the fundamental concepts of political economy that condition the
environment faced by public administrators. The specific learning objectives include:
1. To explain the fundamental interactions among individuals, the private market, and
sociopolitical institutions;
1.1 To evaluate the relevance of politics including freedom, security, order, fairness, and
democracy to the economy;
1.2 To evaluate the influence of the market and other economic institutions on the
political systems and governance;
1.3 1.3 To evaluate the influence of sociopolitical institutions and the bureaucracy in
regulating, stimulating, and mitigating the adverse impacts of the private economy;
2. To identify the potential conflict, contradiction, and ambiguity in the concepts of political
economy;
3. To compare and contrast political economies of the market, collective problems,
regulation, corporations, labor, redistribution, economic crises, and globalization;
4. To demonstrate knowledge and skills needed for critical thinking, analysis, and
communication of the broader political and economic environment facing public
administrators.
Course Delivery Method
This course is offered in a face to face format. Classes are structured as discussion sessions
where students' active engagement plays a vital role. Discussions are used to stimulate
inquisitiveness and active learning. Active participation is at the center of course activities here
requiring students to not only participate in class discussions but more importantly initiate
discussions of their own in which other students join in and express their informed opinions.
Typical classes begin with general discussions on the assigned readings, followed by an
interactive lecture and then by group discussions on some assigned topics. These discussions will
allow students an opportunity to hone their understanding and provide their developing
perspectives and ask meaningful questions. It must be noted that students are required to
complete the assigned readings prior to the session in which they are discussed.
This course may also utilize the e-Learning facility to facilitate interaction. Discussion on
specific topics may also be held online where students will be expected to post thoughtful
comments to spark further ideas and perspectives. Some of the course materials and learning aids
2|Page
will be posted online for convenient access as will be other materials related to assignments.
Course Materials
The following two required textbooks can be bought from the WMU Bookstore at the Bernhard
Center or University Bookstore in Kalamazoo or the LCC Bookstore for courses offered in
Lansing.
Eisner, Marc. (2014). American Political Economy: Institutional Evolution of Market and State.
New York: Routledge. [ISBN 0415708210]
Sachs, Jeffrey. (2011). The Price of Civilization: Reawakening American Virtue and Prosperity.
New York: Random House. [ISBN 0812980462]
A set of readings listed below will be either in the form of e-Reserve or to be accessed
electronically from the Waldo Library. In the reading list to follow, each of the readings assigned
a code of LRE is included in the e-Reserve whereas rest of the readings can be accessed from the
Waldo Library website or other electronic sources as described in the first class.
Assignments and Grading
Given the theoretical and applied nature of the contents, this course includes both traditional and
non-traditional assignments. Assignments include three review papers, one midterm exam, and
one group project.
1. Review of Readings (20%): There will be three separate opportunities for students to
exemplify a good grasp of the reading materials assigned for the week. This will involve
three-page written reports based on the readings from any three sessions as signed up in
the first class. For this exercise, students will choose one session each from Parts B, C,
and D (other than the session with the topic selected for Group Project; this part of the
sign up will take place once the groups have been formed and have selected their topics
for research). The intent in this exercise is not to regurgitate the course material that you
read in order to prepare for the class but more importantly to apply the understanding from
readings to specific practical issues. (More specific expectations will be handed out in the
first class.)
2. Midterm Exam on Theories of Political Economy (40%): This exam due in the 9th class
covers materials from Parts A, B, and C.
3. Group Project on the Application of Political Economy (15% on written paper; 5% on
presentation): Students will have an opportunity to demonstrate a deeper understanding of
political economy and its application to contemporary issues covered in the course. I will
provide more detailed instructions and expectations for this group project (with three to
four members each) but the paper will discuss the problem, survey the relevant literature,
3|Page
conduct the needed analysis, and draw meaningful conclusions. This assignment, the
written report (not exceeding 15 pages) of which is due at the beginning of the final class,
will also have an oral component. This oral component will take the form of a group
presentation in the last class, where you will also have an opportunity to clarify issues and
get feedback from other students.
4. Participation (20%): Albeit not a formal assignment, participation is a centerpiece in this
course. Counted toward this are the magnitude and quality of your participation in general
discussion, assigned in class and group activities, and online discussions (if applicable).
I will use the following guidelines (all in percentage terms) to determine your letter grade for the
course. As you can see from the percentage distributions, grading is not taken lightly and earning
grades such as A and BA will indicate superior mastery of all course activities and assignments.
A ≥ 94; 94 > BA ≥ 88; 88 > B ≥ 82; 82 > CB ≥ 76; 76 > C ≥ 70; 70 > DC ≥ 64; 64 > D ≥ 58; D >
E (Fail)
Note for All Written Assignments
I will provide more detailed information on the assignments with expectations and instructions
when appropriate. But some general rules apply to each of these—as far as written assignments
go. All written papers need to be typed on 8 ½ X 11 pages with at least one inch margin on all
four sides. Use double space throughout with 12-point size in Times New Roman. References or
bibliographic entries are to be properly formatted using the APA style. I encourage you to
consult the appropriate style manuals.
Each assignment needs to be submitted to eLearning Dropbox prior to the assigned class or by
the specified due dates and times. Delayed submissions are subject to reduction of grade by one
or more categories. I will not accept assignments submitted longer than seven days after the due
date.
Policies on Student Behavior and Conduct
Disruptive behaviors can seriously affect student learning and therefore will not be tolerated.
Behaviors that show disregard of the class participants and take the attention of students away
from the class will impede class activities regardless of whether they involve individuals or
groups. They can be in the form of inappropriate verbal or written language or in the form of
behavioral or gestural expressions; they can occur in dealing with fellow students or the
instructor; and they can occur in or outside of the classroom. While I do not expect these
behaviors to take place in this graduate class with serious learners, I will take seriously if and
when they occur and report to the Office of Student Conduct.
4|Page
Academic Honesty
You are responsible for making yourself aware of and understanding the policies and procedures
in the Undergraduate and Graduate Catalogs that pertain to Academic Honesty. These policies
include cheating, fabrication, falsification and forgery, multiple submission, plagiarism,
complicity and computer misuse. [The policies can be found at http://catalog.wmich.edu under
Academic Policies, Student Rights and Responsibilities.] If there is reason to believe you have
been involved in academic dishonesty, you will be referred to the Office of Student Conduct.
You will be given the opportunity to review the charge(s). If you believe you are not responsible,
you will have the opportunity for a hearing. You should consult with your instructor if you are
uncertain about an issue of academic honesty prior to the submission of an assignment or test.
Special Needs
I would like to fully honor WMU policies regarding special accommodations for those with
learning disability or such other concerns. Anyone with these concerns should contact me at the
first meeting with appropriate documentation(s).
5|Page
Course Modules and Readings
A: Background
1. Political Economy and Public Administration (9/10)
Eisner. (2014). Ch. 1; pp. 3-16.
Sachs. (2011). Chs. 1, 12, and 13; pp.3-10 and 237-263.
B: Approaches to Political Economy
2. Classical and Neoclassical Approaches (9/17)
Caporaso, James & Levine, David. (1992). Theories of Political Economy. New York:
Cambridge University Press. Chs. 2 and 4; pp. 33-54 and 79-99. (LRE)
Eisner. (2014). Ch. 7; pp. 123-143.
Finlayson, Alan, Lyson, Thomas, Pleasant, Andrew, Schafft, Kai, & Torres, Robert. (2005). The
“Invisible Hand”: Neoclassical Economics and the Ordering of Society. Critical Sociology,
31(4), 515-536.
Friedman, Milton. (1962). Capitalism and Freedom. Chicago, IL: Chicago University Press. Chs.
Introduction, 2, and 3; pp. 1-36. (LRE)
3. Marxist or Socialist Critiques of Capitalism (9/24)
Caporaso, James & Levine, David. (1992). Theories of Political Economy. New York:
Cambridge University Press. Ch. 3; pp. 55-78. (LRE)
Lavigne, Marie. (1997). The Political Economy of Socialism: What Is Left? Europe-Asia
Studies, 49(3), 479-86.
Polanyi, Karl. (1944). The Great Transformation. Chs. 5 and 6; pp. 56-76. (LRE)
Saad-Filho, Alfredo. (2002). The Value of Marx: Political Economy for Contemporary
Capitalism. Chs. 3 and 4; pp. 35-53. (OA: http://politicaleconomy.ie/wp-content/uploads/
2012/10/Value-of-Marx.pdf)
6|Page
4. Keynesianism and Managed Capitalism (10/01)
Caporaso, James & Levine, David. (1992). Theories of Political Economy. New York:
Cambridge University Press. Ch. 5; pp. 100-125. (LRE)
Dequech, David. (2012). Post-Keynesianism, Heterodoxy, and Mainstream Economics. Review
of Political Economy, 24(2), 353-68.
Eisner. (2014). Ch. 6; 104-122.
Sachs. (2011). Chs. 3 and 8; pp. 27-46 and 133-158.
Skidelsky, Robert. (2011). The Relevance of Keynes. Cambridge Journal of Economics, 35(1),
1–13.
C: The Role of Institutions and Bureaucracy
5. Political Institutions and Their Influence (10/08)
De Fugueiredo, Rui, Jacobi, Tonja, & Weingast, Barry. (2006). The New Separation-of-Powers
Approach to American Politics. In B. Weingast & D. Wittman (Eds.), The Oxford Handbook
of Political Economy (pp. 199-222). New York: Oxford University Press. (LRE)
Eisner. (2014). Ch. 2; pp. 17-39.
Ivesren, Torben. (2006). Capitalism and Democracy. In B. Weingast & D. Wittman (Eds.), The
Oxford Handbook of Political Economy (pp. 601-623). New York: Oxford University Press.
(LRE)
North, Douglas. (1990). Institutions, Institutional Change, and Economic Performance. New
York: Cambridge University Press. Chs. 12 and 13; pp. 107-130. (LRE)
Robertson, David. (2012). Federalism and the Making of America. New York: Routledge. Ch. 3;
pp. 36-53. (LRE)
Sachs. (2011) Chs. 5 and 7; pp. 67-84 and 105-131.
6. The State and Regulatory Regime (10/15)
Eisner. (2014). Chs. 3-5; pp. 43-103.
Harris, Richard & Milkis, Sidney. (1996). The Politics of Regulatory Change (2nd edition). New
York: Oxford University Press. Ch. 1; pp. 3-21. (LRE)
7|Page
Sachs. (2011). Ch. 4; pp. 47-65.
Wren, Anne. (2006).Comparative Perspectives on the Role of the State on the Economy. In B.
Weingast & D. Wittman (Eds.), The Oxford Handbook of Political Economy (pp. 642-655).
New York: Oxford University Press. (LRE)
7. Working Break for Group Projects: No Class Meeting (10/22)
8. Bureaucratic Politics (10/29)
Courpasson, David & Clegg, Stewart. (2006). Dissolving the Iron Cages? Tocqueville, Michels,
Bureaucracy and the Perpetuation of Elite Power. Organization, 13(3), 319-343.
Ellison, Brian. (2006). Bureaucratic Politics as Agency Competition: A Comparative
Perspective. International Journal of Public Administration, 29(13), 1259-1283.
Huber, John & Shipan, Charles. (2006). Politics, Delegation, and Bureaucracy. In B. Weingast &
D. Wittman (Eds.), The Oxford Handbook of Political Economy (pp. 256-272). New York:
Oxford University Press. (LRE)
Hupe, Peter & Hill, Michael. (2007). Street-Level Bureaucracy and Public Accountability.
Public Administration, 85(2), 279-299
Pierre, Jon. (2011). Stealth Economy? Economic Theory and the Politics of Administrative
Reform. Administration & Society, 43(6), 672-692.
Balla, S.J. (2015). Political Control, Bureaucratic Discretion, and Public Commenting on Agency
Regulations. Public Administration, 93(2), 524-38.
D: Contemporary Issues
9. International Systems and Globalization (11/05)
Buzan, Barry. (2011). A World Order Without Superpowers: Decentred Globalism (The
Inaugural Kenneth N. Waltz Annual Lecture). International Relations, 25(1), 3–25.
Eichengreen, Barry & Leblang, David. (2008). Democracy and Globalization. Economics &
Politics, 20(3), 289-334.
Eisner. (2014). Ch. 9; pp. 170-187.
8|Page
Grant, Ruth & Keohane, Robert. (2005). Accountability and Abuses of Power in World Politics.
American Political Science Review, 99(1), 29-43.
Meyer, John, Boli, John, Thomas, George, Ramirez, Francisco. (1997). World Society and the
Nation State. American Journal of Sociology, 103 (1), 144-181.
Sachs. (2011). Ch. 6; pp. 67-84.
10. Welfare State and Redistribution (11/12)
Bartels, Larry. (2008). Unequal Democracy: The Political Economy of the NEW Gilded Age.
New York: Russell Sage Foundation. Chs. 1 and 5; pp. 1-28 and 127-161. (LRE)
Eisner. (2014) Ch. 8; pp. 147-169.
Krugman, Paul. (2014). On Inequality Denial. New York Times, June 2.
Sachs. (2011). Chs. 9 and 10; pp. 161-183 and 185-208.
Stiglitz, Joseph. (2014). Inequality Is Not Inevitable. New York Times, June 27.
Wagle, Udaya. (2013). The Heterogeneity Link of the Welfare State and Redistribution: Ethnic
Heterogeneity, Welfare State Policies, Poverty and Inequality in High Income Countries. New
York: Springer. Chs. 3 and 4; pp. 45-102.
11. Labor Relations and Unionism (11/19)
Bartels, Larry. (2008). Unequal Democracy: The Political Economy of the NEW Gilded Age.
New York: Russell Sage Foundation. Ch. 8; pp. 223-251. (LRE)
Brandl, Bernd & Traxler, Franz. (2011). Labour Relations, Economic Governance and the Crisis:
Turning the Tide Again? Labor History, 52(1), 1-22.
Givan, Rebecca & Hipp, Lena. (2012). Public Perceptions of Union Efficacy: A Twenty-Four
Country Study. Labor Studies Journal, 37(1), 7-32.
Keefe, Jeffrey. (2012). Are Public Employees Overpaid? Labor Studies Journal, 37(1), 104-126.
New York Times. (2014). Raising the Minimum Wage, City by City. New York Times, Oct. 12
(editorial).
Western, Bruce. (1995). A Comparative Study of Working-Class Disorganization: Union
Decline in Eighteen Advanced Capitalist Countries. American Sociological Review, 60(2),
9|Page
179-201.
12. National Debt and the Size of Government and Student Group Presentations (12/03)
Bergh, Andreas & Henrekson, Magnus. (2011). Government Size and Growth: A Survey and
Interpretation of the Evidence. Journal of Economic Surveys, 25(5), 872 -897.
Blendon, Robert & Benson, John. (2011). Partisan Conflicts Among the Public on the Economy
and Budget Deficit in 2011. Challenge, 54(5), 5–17.
Clemmitt, Marcia. (2013). Government Spending. CQ Researcher, 23(25), 597-620.
Eisner. (2014). Chs. 10-11; pp. 189-220.
Krugman, Paul. (1996). A Country Is Not a Company. Harvard Business Review, JanuaryFebruary, 40-51.
Krugman, Paul. (2012). That Terrible Trillion. New York Times, Dec 17.
Sachs. (2011). Chs. 2 and 11; pp. 67-84.
10 | P a g e