PUAF 699Y: Globalization of Trade, Development and Competitiveness
Student Version 090111
Fall Semester 2011
1207 VMH
Thursdays: 9:15 – 11:45 a.m.
Instructor:
Amb. Susan Schwab
Support staff: Carroll Linkins
Matthew Southerland (GA)
tel:
301-405-6347 (office)
410-280-5259 (home)
Email/bb:
sschwab@umd.edu
office:
4105 Van Munching Hall
School of Public Policy
tel:
301-405-6330
Email:
clinkins@umd.edu
Email:
southerlandm@gmail.com
Office hours: By appointment; email ahead. Usually Thursday afternoons; other days or
evenings as necessary.
I.
Introduction
“Globalization is a process of interaction and integration among the people,
companies, and governments of different nations, a process driven by
international trade and investment and aided by information technology.
This process has effects on the environment, on culture, on political systems,
on economic development and prosperity, and on human physical well-being
in societies around the world.
Globalization is not new, though….” The Levin Institute.
This seminar is designed to address many of the contemporary debates and questions
surrounding globalization, with particular focus on economic development, international trade
and competitiveness. Among the issues to be explored:
1





Competitiveness and the economic/commercial challenges in the global economy;
implications for trade policy, business, and the multilateral trading system.
Development and the impact of globalization on the world’s poor; the role of the
emerging economies, particularly China and India; and other growth economies.
Governance of multinational economic institutions in a multipolar world; the G-20 and
the WTO, IMF, the World Bank, and others.
The impact of technology – particularly information technology – on trends in
globalization, including on trade, competitiveness and development.
Implications of global integration on issues of interest to individual students, such as
cyber-security, global supply chains, pandemics, immigration and food security.
Emphasis will be on the issues, challenges and policy choices faced by institutions –
governments, businesses, NGOs, multinationals, etc. – and the leaders and policymakers who
lead and/or challenge them, in the context of a globalized world. While often grounded in U.S.
policy perspectives and choices, there will also be heavy emphasis on other G-20 nations,
emerging and developing economies, including LDCs.
The class has no formal prerequisites, but it assumes at minimum basic micro- and macroeconomics. The farther along a student is with the MSPP core and ISEP/IDev requirements, the
more he or she is likely to get out of this class.
The Economist will be required reading for each class and students will begin each class by
discussing recent articles and events relevant to the course. Students are expected to stay current
with policy issues and developments during the semester through publications like The Financial
Times and The Wall Street Journal, and are encouraged to bring in timely articles they consider
relevant to the class. Examples of anticipated Fall 2011 developments include:
II.

Congressional consideration of U.S. Free Trade Agreements with Colombia, Panama and
South Korea (September?)

G-20 Summit hosted by President Sarkozy in Cannes, France (November 3-4)

2011 APEC Summit hosted by President Obama in Honolulu (November 10-12)
Course Requirements
Significant reading. (See III)
Class Participation: Students are expected to come to class having read all assigned
readings and should use class discussions to show they have both read and thought about the
2
readings. Fellow students – not just the professor – should be the beneficiaries of student
engagement in class. At the start of each class, students will share with their colleagues, articles
and events from the previous week, as well as recommended readings from the syllabus.
To promote student engagement in class activities, the professor reserves the right to ban
the use of laptops and other personal computing devices during the class.
Written Assignments. There will be three relatively short written assignments, including
one in lieu of a final exam. Two will be memo-style papers, each absolutely no longer than
1500-1600 words in length (5-6 pages double spaced; use 12 point type). One paper will be the
outline of an oral presentation that will also be given out to fellow students. All will be judged
both on content and on writing.
Student Debate and Presentations. Students will be making formal presentations to their
colleagues on at least two occasions, once as individuals and once in small teams in the form of a
debate. These presentations will be relatively brief with additional time for questions/responses.
Students may be asked to judge each other’s presentations.
Key terms and concepts. Students are encouraged over the course of the semester to
track key terms and concepts related to globalization. These will be discussed during class, and
students are expected to be able to articulate their meaning. The professor reserves the right to
make the definition of such key terms and concepts the subject of a quiz during the course of the
semester.
Guest speakers. We look forward to welcoming Frank Vargo, Vice President for
International Economic Affairs at the National Association of Manufacturers (NAM) and at least
one other guest speaker this semester.
University Policies. Attached to this syllabus and available on ELMS are several brief
paragraphs on University policies, required by the University to be included in all syllabi on the
following topics: Academic Integrity and the Honor Pledge, Students with Disabilities,
Attendance Policies, Inclement Weather, and Course Evaluation information. Please make sure
you have reviewed this material.
Grading. Final grades will be computed as follows:
Class Participation (reading comprehension; thoughtful contributions)
Small group debates
First memo
Individual presentation plus topic/presentation outline
Final Memo/Take Home Exam
3
25%
10%
20%
20%
25%
III.
Readings
Required Books/Publications:
Ian Bremmer, The End of the Free Market: Who Wins the War Between States and
Corporations? Portfolio, 2010.
Paul Collier, The Bottom Billion, Oxford University Press, 2007
Edward Gresser, Freedom From Want: American Liberalism and the Global Economy,
Soft Skull Press, 2007.
Michael Spence, The Next Convergence: The Future of Economic Growth in a
Multispeed World, Farrar, Straus and Giroux, 2011
Fareed Zakaria, The Post-American World, Norton, 2009 or The Post-American World:
Release 2.0, Norton, 2011.
The Economist: You will be expected to identify, read and discuss several articles from
this magazine each week pertaining to globalization. A student rate subscription is highly
recommended, but it is also available through McKeldin Library, CISSM Library or on
newsstands. (The weekly edition appears on line each Thursday and in print shortly
thereafter.) You will NOT be able to come into class and read the article on line during
class, however.
May be purchased; available on Netflix; or through McKeldin Library:
PBS video: “The Commanding Heights: The Battle for the World Economy,” (David
Ogden Stiers, narrator). View all six - one hour episodes of the PBS documentary based
on the book by Daniel Yergin and Joseph Stanislaw, 2002.
One half of the class will each read one of the following (allocation TBD, so do not
purchase your copy until decisions are made):
Johan Norberg, In Defense of Global Capitalism, Cato Institute, 2003
Dani Rodrik, The Globalization Paradox, Norton, 2011.
Recommended Reading:
Pietra Rivoli, Travels of a T-Shirt in the Global Economy, 2nd Edition, Wiley, 2009.
4
Other Readings:
The Financial Times, The Wall Street Journal, New York Times and other authoritative
publications and websites: You are encouraged to review these publications regularly for
articles relevant to globalization issues being addressed by the class. These publications
are available in the MSPP student lounge, in McKeldin Library, by subscription and/or
on line.
ELMS Reserve The readings listed in the syllabus, other than the required
reading/books noted above, will be available on ELMS.umd.edu under the link for the
Syllabus, select “Course Tools” then “Course Reserves.” Check your email and the
syllabus every Sunday night to see if the reading assignment for the coming
Thursday class has been updated with any additional articles that may have
appeared during the week.
IV.
Weekly Topics and Reading/Writing Assignments
September 1: Introduction to the Course. Why Should We Care About Globalization?.
What is this course about?
What is “globalization” and how does it differ from internationalization?
Why focus on trade, competitiveness and development?
How best to factor in the role of technology? What about institutions of governance?
A walk through the syllabus (incl. book assignments).
Course expectations and requirements.
Student interests and value added.
Research tools and issues.
Professorial idiosyncrasies….
Recommended reading (most of these will be required reading in later classes):
World Economic Forum: The Global Competitiveness Index 2010-2011. Pages 1- 45.
http://www3.weforum.org/docs/WEF_GCR_Highlights_2010-11.pdf
http://www.economist.com/blogs/dailychart/2011/01/us_equivalents
https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html
http://data.worldbank.org/region/WLD
5
http://www.imf.org/external/pubs/ft/weo/2011/update/02/index.htm
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita
September 8:
Globalization: Governments and Markets
Assignment:

Be prepared to discuss how one would go about updating Commanding Heights to reflect
events since 2002. What issues, events, developments would need to be addressed? What
key questions answered?
Required reading/viewing;
PBS video: “The Commanding Heights: The Battle for the World Economy,” (David
Ogden Stiers, narrator). View all six - one hour episodes of the PBS documentary based
on the book by Daniel Yergin and Joseph Stanislaw, 2002. View all six hours.
Explore and familiarize yourself with various databases that compare country GDP, GDP
per capita growth rates, and other economic and development indicators, such as:
https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html
http://data.worldbank.org/region/WLD
http://www.imf.org/external/pubs/ft/weo/2011/update/02/index.htm
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita
The Economist
September 15:
Governments and Markets, cont.
Assignment prep:

Divide into debate teams. Identify debate questions.

Teams to develop with instructor the format to debate and then summarize the main
points of each book for September 22 debate on Globalization & Markets vs. Government
Intervention.
6
Required reading (half of the class will be assigned one of the following books):
Johan Norberg, In Defense of Global Capitalism, Cato Institute, 2003. (read approx. 2/3)
Dani Rodrik, The Globalization Paradox, Norton, 2011. (read approx. 2/3)
The Economist.
September 22:
Governments and Markets, cont.
Assignment:

Teams to present, discuss and debate their respective books and the relative merits of
Globalization & Markets vs. Government Intervention.
Required reading:
Johan Norberg, In Defense of Global Capitalism, Cato Institute, 2003. (Conclude.)
Dani Rodrik, The Globalization Paradox, Norton, 2011. (Conclude.)
The Economist.
September 29:
U.S. Trade Policy and the Global Trading System
Assignment prep:

Discuss trade and development memo assignment due October 20.
Required reading:
Douglas A. Irwin, Free Trade Under Fire, 3rd Edition, Princeton University Press, 2009.
Introduction, Chapters 1 and 2 (pages 1 – 69). On Reserve.
Edward Gresser, Freedom from Want: American Liberalism and the Global Economy,
Part I (Pages 1 – 110).
The Economist
7
Recommended reading:
Charles Schumer and Paul Craig Roberts, “Second Thoughts on Free Trade,” New York
Times, 6 January 2001 [http://www.nytimes.com/2004/01/06/opinion/second-thoughtson-free-trade.html?scp=1&sq=second%20thoughts%20on%20free%20trade&st=cse]
AND Michael Kinsley, “Free Trade, But…..”
Frederic Bastiat, ‘The Candlemakers Petition’ from Sophismes Économiques (1845),
http://bastiat.org/en/petition.html
October 6:
Trade Policy and Global Supply Chains
Assignment:

Attend CISSM Forum from 12:15 pm-1:30 pm. Speaker: Frank Vargo, Vice
President, International Economic Affairs, National Association of Manufacturers.
Required reading:
Edward Gresser, Freedom from Want: American Liberalism and the Global Economy,
Part II (Pages 115 – 212).
“Globalized Supply Chains and U.S. Policy,” Dick K. Nanto, Specialist in Industry and
Trade. January 27, 2010. Congressional Research Service Report 7-5700 R40167.
http://assets.opencrs.com/rpts/R40167_20100127.pdf
Greg Linden, Jason Dedrick and Kenneth L. Kraemer, “Innovation and Job Creation in a
Global Economy: The Case of Apple’s iPod.” PCIC: Personal Computing Industry
Center, UC Irvine Paul Merage School of Business. January 2009.
http://www.industrystudies.pitt.edu/chicago09/docs/Dedrick%202.2.pdf
Recommended reading:
Kenneth Scheve and Matthew Slaughter, ‘A New Deal for Globalization’ in Foreign
Affairs (July/Aug 2007).
Susan Schwab, ‘After Doha: Why the Negotiations are Doomed and What We Should Do
About It’ in Foreign Affairs (May/June 2011).
8
Figure 2.3: PTAs [Preferential Trade Agreements] Notified to the GATT/WTO and in
Force, by Year of Entry into Force, 1959 -2009 from Rohini Acharya, Jo-Ann Crawford,
Maryla Maliszewska, and Christelle Renard, “Landscape,” in Jean-Piere Chauffour and
Jean-Christophe Maur, Eds, Preferential Trade Agreement Policies for Development: A
Handbook, The World Bank, 2011.
October 13: Development and Poverty Alleviation in a Globalized World
Required reading:
Paul Collier, The Bottom Billion, Oxford University Press, 2007. Pages 1 – 156.
Copenhagen Consensus 2008. Read PDF paper entitled: Copenhagen Consensus 2008
Results. Available on Reserve or as the “Download pdf” link at the bottom of the web
page entitled “Outcome – The Experts”.
http://www.copenhagenconsensus.com/Projects/Copenhagen%20Consensus%202008/Ou
tcome.aspx
The Economist.
October 20:
Development and Poverty Alleviation, Cont.
Assignment:

Memo due with proposed redesign/modification of U.S. GSP program to better target the
Bottom Billion.
Assignment prep:

Note October 27 “Assignment prep” deadline. Please warn instructor if we need to set
aside class time to discuss.
Required reading:
Paul Collier, The Bottom Billion, Oxford University Press, 2007. Pages 157 – 195.
Learn about various U.S. (and other) government trade preference, trade capacity
building and targeted foreign assistance programs. At minimum, review official web
sites:
http://www.mcc.gov/pages/about (Millennium Challenge Corporation; USG)
9
http://www.ustr.gov/trade-topics/trade-development/preference-programs (U.S.
trade preference programs; USTR)
http://www.ustr.gov/trade-topics/trade-development/preferenceprograms/generalized-system-preference-gsp (The Generalized System of
Preferences Program; USTR)
http://www.ustr.gov/trade-topics/trade-development/preference-programs/africangrowth-and-opportunity-act-agoa (The Africa Growth and Opportunity Act;
USTR)
http://tcb.eads.usaidallnet.gov/ (trade capacity building data; USAID)
http://www.wto.org/english/tratop_e/devel_e/d2legl_e.htm
(key WTO legal provisions re: special rights of developing countries)
http://ec.europa.eu/trade/wider-agenda/development/generalised-system-ofpreferences (potential revisions to EU preference program)
The Economist.
October 27:
Geopolitics and “The Rise of the Rest”
Assignment prep:

Deadline for submission of your proposed individual globalization topic and a very brief
description of how you intend to present it to colleagues for maximum impact in a
minimal amount of time: 5 minute oral “elevator speech”; 1-2 page outline and 1-2
charts/tables or power point slides, if desired. Examples of topics: information
technology and autocratic regimes, global health/pandemics, movement of people,
resource issues, food security, proliferation of WMD, cyber-security, costs/benefits of
globalization to LDCs and how to address them, etc.

In each case, the final oral/written presentation should at minimum articulate (1) the
issue, (2) challenges and opportunities; policy options and their relative merits; as
appropriate, (3) evidence, data or sources that reinforce your assertions and conclusions,
(4) any substantive, institutional and/or process recommendations/conclusions.

Presentation date is November 17. Assume that your topic and approach are fine unless
you hear otherwise from the instructor on or before November 3.
10
Required Reading:
Fareed Zakaria, The Post-American World, Norton, 2009 or The Post-American World:
Release 2.0, Norton, 2011. Pages xi – 166 (2009 edition); xi – 183 (2011 edition)
The Economist.
November 3:
Geopolitics and Global Governance
Required reading:
Fareed Zakaria, The Post-American World, Norton, 2009 or The Post-American World:
Release 2.0, Norton, 2011. Conclude.
Kishore Mahbubani, “A Rudderless World,” The New York Times, August 18, 2011.
The Economist.
Recommended reading:
Joseph S. Nye, Jr., “The Benefits of Soft Power,” Working Knowledge for Business
Leaders, Harvard Business School, 8/2/2004. http://hbswk.hbs.edu/archive/4290.html
November 10:
Economic Growth in a Multispeed World
Required reading:
Michael Spence, The Next Convergence: The Future of Economic Growth in a
Multispeed World, Farrar, Straus and Giroux, 2011. Pages xi – 173.
Additional required reading on G-20 Summit TBD.
The Economist.
November 17:
Growth in a Multispeed World, Cont.
Assignment:

Individual globalization topics presentations.
11

Submit/distribute outlines and tables/charts or power points, as appropriate.
Required reading:
Michael Spence, The Next Convergence: The Future of Economic Growth in a Multispeed
World, Farrar, Straus and Giroux, 2011. Conclude – but no need to read pages 174 – 184.
Additional required reading on APEC 2012 Summit TBD.
The Economist.
November 24:
Thanksgiving
December 1:
Impacting Competitive Advantage: State Capitalism, SOEs, SWFs,
Cyber, Indigenous Innovation, etc. etc.
Assignment:

Familiarize yourself with the indices listed in the required reading section below that are
related to development and competitiveness (including their subcomponents). Be
prepared to discuss in class the scores on various scales for a few countries that interest
you.
Required reading:
Ian Bremmer, The End of the Free Market: Who Wins the War Between States and
Corporations? Portfolio, 2010. Pages 1 – 147.
World Economic Forum: The Global Competitiveness Index 2010-2011. Pages 1- 45.
http://www3.weforum.org/docs/WEF_GCR_Highlights_2010-11.pdf
Ease of Doing Business (World Bank) http://www.doingbusiness.org/rankings
Index of Economic Freedom (Heritage Foundation/The Wall Street Journal)
http://www.heritage.org/index/Ranking
Corruption Perceptions (Transparency International)
http://www.transparency.org/policy_research/surveys_indices/cpi/2010
12
E-Readiness (Economist Intelligence Unit) http://graphics.eiu.com/pdf/Ereadiness%20rankings.pdf
Recommended reading:
Michael Spence, ‘Globalization and Unemployment: The Downside of Integrating
Markets’ in Foreign Affairs (July/August 2011).
December 8:
What Counts? Impacting Competitive Advantage, Cont.
Assignment:

Instructions for final memo, due by close of business on December 15, will be provided.

Discuss course, including advice and constructive criticism re: readings, assignments,
etc.
Required reading:
Ian Bremmer, The End of the Free Market: Who Wins the War Between States and
Corporations? Portfolio, 2010. Pages 147 – 200.
Anil K. Gupta and Haiyan Wang, “China as an Innovation Center? Not So Fast,”
online.wsj.com, Business Asia, July 28, 2011,
http://online.wsj.com/article/SB10001424053111903591104576469670146238648.html
Anil K. Gupta and Haiyan Wang, “Beijing is Stifling Chinese Innovation,”
online.wsj.com, Business Asia, September 1, 2011,
http://online.wsj.com/article/SB10001424053111904583204576541732014359842.html
David Barboza and Kevin Drew, “Security Firm Sees Global Cyberspying,”
NYTimes.com, August 3, 2011,
http://www.nytimes.com/2011/08/04/technology/security-firm-identifies-global-cyberspying.html?pagewanted=all
McAfee White Paper:
http://www.mcafee.com/us/resources/white-papers/wp-operation-shady-rat.pdf
Additional required reading TBD.
The Economist.
13
December 15:
[Exam Week]
Assignment:

Final memo/take home exam due in hard copy no later than 5:00pm. Place in Professor
Schwab’s box in VMH, Suite 2101 (Dean’s Suite)

Please remember to fill out your on-line course evaluations. Thank you!
V. University Policies
Attendance Policies
University policy excuses the absences of students for illness (self or dependent), religious
observances, participation in University activities at the request of University authorities, and
compelling circumstances beyond the student's control. Students must submit the request in
writing and supply appropriate documentation, e.g. medical documentation. Except in the cases
mentioned above, students are expected to attend all sessions since class participation will be
graded. For more information, see the University's Attendance and Assessment Policy. Students
will not be penalized in any way for participation in religious observances and they be allowed to
make up academic assignments that are missed due to such absences. However, it is the student’s
responsibility to inform the instructor of any intended absences for religious observances in
advance of the projected absence within two weeks of the start of the semester and with a written
notification. The request should not include travel time.
Regular attendance and participation in this class is the best way to grasp the concepts and
principles being discussed. However, in the event that a class must be missed due to an illness,
the policy in this class is that for every medically necessary absence from class, a reasonable
effort should be made to notify the instructor in advance of the class. If more than one class is
missed, the instructor may require documentation signed by a health care professional.
Inclement Weather or Emergency Closure
Assignments will be rescheduled if necessary due to inclement weather and campus
emergencies. Official closures and delays are announced on the campus website (www.umd.edu)
14
and snow phone line (301-405-SNOW) as well as local radio and TV stations. Please make sure
that your University contact information is up-to-date at all times.
Students with Disabilities
Students wishing to request academic accommodations for a disability should notify the
professor at the beginning of the semester. The student should also register with Disability
Support Services (DSS) http://www.counseling.umd.edu/DSS/ (301-314-7682).
Academic Integrity & the Honors College
The University is an academic community. Its fundamental purpose is the pursuit of knowledge.
Like all other communities, the University can function properly only if its members adhere to
clearly established goals and values. Essential to the fundamental purpose of the University is the
commitment to the principles of truth and academic honesty. Accordingly, the Code of
Academic Integrity is designed to ensure that the principle of academic honesty is upheld. While
all members of the University share this responsibility, The Code of Academic Integrity is
designed so that special responsibility for upholding the principle of academic honesty lies with
the students. (The University of Maryland Student Honor Council)
All University of Maryland students are asked to write and sign the following Honor Pledge to
all submitted assignments and exams:
I pledge on my honor that I have not given or received any unauthorized assistance on this
assignment/examination.
The University of Maryland honor system is fully described in the Code of Academic Integrity.
Please read: www.studenthonorcouncil.umd.edu/code.html. The Code is administered by an allstudent Honor Council. The student Honor Council office is located in room 2118 Mitchell
Building and can be reached at 301-314-8204.
The Honors College works to enrich its community life by promoting an atmosphere of honesty,
trust, and mutual responsibility. In the event that a Honors College student is found responsible
for a violation of the Code of Academic Integrity by the Student Honor Council, he or she will
be dismissed from the Honors College for the semester in which the violation took place and for
all subsequent semesters in which the student is enrolled as an undergraduate at Maryland.
15
16