GOVERNMENT 221: CAPITALISM AND ITS CRITICS
Monday/Wednesday 1:00-2:15, Diamond 122
Assistant Professor Lindsay Mayka
LRMayka@Colby.edu
Office Hours: Wednesday/Thursday 2:30-4:00 – Diamond 253, or by appointment
Course Description
This course examines the interaction between politics and markets, both in theory and in
practice, linking classic works on political economy (e.g. Smith, Marx, List, Polanyi) with
current policy debates. It emphasizes the ways in which markets are embedded in social and
political institutions. We study how political systems and markets are organized in a wide range
of different national settings, looking both at history and contemporary issues. The course is
divided into six sections, which each look at the social and political institutions behind
capitalism.
The first section reviews classical theoretical frameworks used to study political economy. In
this section, we identify the three major theoretical frameworks: liberalism, Marxism, and
mercantilism. The three frameworks differ in their perceptions about the appropriate roles of
state and markets in facilitating economic activity. We will discuss the main tenets of each
camps, as well as the historical context that gave rise to each of these theories.
In the second section, we will examine the analytical frameworks used in different academic
disciplines to study market institutions. This section highlights the differing assumptions and
methods of analysis used by sociologists, such as Karl Polanyi and Neil Fligstein; economists,
such as Douglass North and Oliver Williamson; and political scientists, such as Charles
Lindblom. Despite their many differences, scholars from all three camps acknowledge the
important role that institutions play in structuring capitalist markets. They may disagree about
whether the pursuit of material self-interest is in human nature or how important political power
is to study the functioning of markets, but all agree that markets must be constructed through
political and social institutions and do not naturally spring into being.
The third, fourth, and fifth parts apply these theoretical frameworks to study contemporary
challenges for capitalist economies from advanced industrial economies, developing economies,
and post-communist economies. For advanced industrial economies, we will examine the
different varieties of capitalism that have developed, and will then explore how these capitalist
models have responded to the global trend towards deregulation and integration of the past 30
years. Can countries with generous welfare states sustain this model, or should they accept the
terms of austerity? Are advanced capitalist economies converging towards an universal model of
deregulation and liberalization? And does increased globalization and decreased regulation
mean that financial crises, like the one experienced in 2008-2009, are inevitable?
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During our examination of developing economies, we will ask the question of why some
countries have developed while others have not. Do state attempts to guide economic activity
lead to economic advancement, or stagnation? What role can and should the government play to
foster economic development? Should countries integrate into global markets? And what role
can foreign aid play in the development process?
Fifth, we will study the diverging fates of countries that have transitioned away from
communism. These countries face the difficult challenge of dismantling communist economic
institutions while also constructing the myriad political and social institutions needed for
capitalism to take root. How can countries overcome the political barriers to economic reforms?
Is there a blueprint that countries should follow to construct capitalist markets, or should each
country pave their own way? Looking to China and Cuba, we also ask whether economic
liberalization necessarily destabilizes authoritarian rule and what will be the fate of the
communist parties of these two countries.
In the final section, we will examine the changes that have been brought on by globalization and
the information revolution. These changes appear to remove geographic barriers, increase the
speed of economic activity, and introduce a very different model of capitalist activity than we
had during the era of manufacturing and industry. Are states less important in the new
globalized world? And how will market institutions change with the new information-based
economy?
Course Objectives
1. Understand different theoretical frameworks for understanding institutions and
institutional analysis.
2. Be able to apply these theoretical frameworks to the study of the political, economic, and
social institutions underlying markets. You should also be able to apply these theoretical
frameworks to other areas of political science (e.g. new institutionalist economics
analysis of elections).
3. Better understand the domestic and global politics behind capitalism, and some of the
details of how markets work. This course should make it easier for you to read the
newspaper and think critically about current events.
4. More broadly, in this course you will be pushed to strengthen your critical thinking skills,
learning to not only identify the causal claims of the authors you read but also to
challenge their approaches and assumptions.
5. Improve your writing and critical analysis skills through several paper assignments.
Expectations of Students
I expect you to make this class a top priority and to treat your colleagues and me with
professional respect. You should arrive on time and ready to engage. Students must be fully
prepared at all times to discuss the readings and concepts from that day’s material, and that of
previous lectures. Please print out the readings and bring a copy to class. Particularly in the first
couple weeks, I need you to tackle the readings with enthusiasm. When everyone does that, we
will have set an excellent tone for the semester. In addition to readings, every class period will
require you to spend some non-reading time preparing for class. Create a habit of setting aside
non-reading time to prepare your ideas.
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Attendance is mandatory, but students are allowed one free absence that won’t count against
your grade. However, students may not use this absence on the day of a simulation or a debate.
Please show up on time for each class.
You can expect me to be tirelessly enthusiastic and to work hard for you, both this semester and
in future semesters when you need advising and reference letters. I will hand back work
promptly, I will make time for you, and I will provide constructive and encouraging feedback.
I encourage all of you to stop by my office hours with a question, or even if you don’t have a
question and would just like to chat about the class, what’s going on in the world, or life after
Colby. I am available during the scheduled office hours, as well as by appointment in person or
by skype. My skype ID is LRMayka.
You can reach me best via email at LRMayka@colby.edu. I will respond to you within 24 hours
during the week, and within 48 hours on the weekend.
Assignments
Students will be assessed based on their performance on a takehome midterm exam, two
analytical papers, a final exam, four short assignments, and active participation in class. The
grade breakdown follows:
Takehome midterm exam
Analytical paper #1
Analytical paper #2
Final exam
Short assignments
Class engagement
20%
20%
20%
25%
5%
10%
Takehome Midterm Exam
In lieu of an in-class midterm exam, students will complete a takehome midterm exam. The
midterm exam should be double spaced with 1-inch margins and size 12 Times New Roman
font. The midterm will be open note/open book.
The exam will be distributed on October 2nd during class and is due October 4th at 5 pm on
moodle. Barring a documented emergency, the paper due dates are final and will be marked
down a full letter grade for each day late. If you turn it in at 6 pm, that counts as a full day late.
Please note that you are responsible for ensuring that you properly upload your final draft onto
moodle on time. If you upload a rough draft, that’s the draft I grade. If you have technical
difficulties and can’t upload until 5:15, I will count the paper as late. Don’t wait until 4:58 to
start uploading.
Analytical Papers
For Sections III, IV, and V, students will write papers for two sections of their choice. Each
paper is worth 20% of your grade. Students also have the option of writing all three papers, in
which case I will count the two highest scores towards your final course grade or reweight the
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grade breakdown to make the papers 50% of your final grade, reducing the midterm to 15% of
your grade and the final to 20% of your grade.
All papers must be 6-7 pages double-spaced, size 12 Times New Roman font with 1-inch
margins. In response to a paper prompt, students will construct an argument by utilizing
evidence from two countries: one that is covered in course materials, and another country that
has received less attention. For example, in the section on developed economies you might write
a comparison of Germany (covered in lectures/readings) and France (covered less in
lectures/readings). I encourage you to come in to my office hours to discuss your selection of
country cases for these papers, and to confer with library staff on research strategies.
The principal objectives of the analytical papers are: 1, to give students with a greater
opportunity to engage with the course material than is possible with a time-crunched in-class
exam; 2, to provide feedback on writing; 3, to give you an opportunity to explore course themes
as they apply to other countries; and 4, to give you some practice conducting research. These are
not research papers, per se, but do require you to do some additional research.
Analytical papers are due at 5 pm on the day (not the class) after we complete that section (i.e.
on Tuesdays and Thursdays). Please submit your papers electronically via moodle. As with the
midterm, papers will be considered late if turned in after 5pm and will be marked down a full
letter grade for each day late.
Final Exam
Students will take a written final exam during the officially designated period – no exceptions.
The final exam will be cumulative and will consist of essays, short answer questions, and
identification of key terms. The final exam is worth 25% of your grade.
Short Assignments
Students will complete four short assignments, which will be submitted via moodle at 10 am
before class. The assignments are designed to help you process the readings in advance of class
so we can have a productive discussion. These assignments cannot be turned in late. I will
grade these assignments with a check plus (A range), check (B range), or check minus (C range).
The assignments are worth a total of 5% of your final grade.
Class Engagement
Students are expected to attend and to be active participants in all classes. The class engagement
grade for this class is not a residual category – simply showing up to without engaging with the
material is not sufficient! Your grade will include your overall participation during lectures,
your performance during one of two simulations we will undertake this semester, and your
performance during one of two class debates. Class engagement will be 10% of your grade.
Simulation: We will undertake two simulations this semester: one on the 2008 financial crisis,
and one on the future of socialist rule in Cuba. For each simulation, approximately 1/2 of
students will be participants while the remaining 1/2 will be observers. Thus, each student will
participate in one simulation. Each participant will prepare in advance for her or his role.
Observers watch the exercise, possibly playing a small role (e.g., casting ballots or asking
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questions of the core participants). At the end of the simulation, observers will discuss the final
outcome and provide feedback on their classmates’ performance.
Debates: We will hold two formal debates in this course: one on the potential of foreign aid to
advance development, and one on globalization. For each debate, half of the students will be
active debaters, while the other half will be in the audience. Each student will serve as a debater
in one of the two debates. I will provide the debate topic and debaters will be divided into two
opposing teams. Each team will meet outside of class to plan the details of their argument and
coordinate the roles of each team member. The teams will also meet with me to discuss their
plan. On the day of the debate, those in the audience will have the opportunity to pose follow up
questions to each team and will vote to determine who won the debate.
Grading
The class is not curved; you will be evaluated on your own merits rather than on how you
compare to your peers. Written assignments will be graded according to the following criteria:
• Critical thinking and analytic rigor
• Conceptual clarity and structure
• Use of evidence and course materials
• Overall quality of writing and mechanics
Grading Standards
A
B
C
D
F
Exceptional work. Demonstrates superb understanding of the course material and
outstanding critical thinking and analytic rigor. Goes beyond simply answering the
prompt to craft a creative and insightful analysis. Communicates information in a clear,
concise, and mechanically correct manner. An A grade will only be given if work is
exceptional.
Good work. Demonstrates a strong grasp of course material and good analytic rigor, but
with some errors (e.g. faulty assumptions in logic or some incorrect descriptions of an
author’s argument). May have some problems with structure or mechanics but overall
easy to understand the main gist. Solid work, but not the most original or insightful
analysis.
Mediocre work. Applies some course material and themes, but demonstrates
considerable misunderstanding of material. Difficult to discern the student’s argument
and the logic supporting this argument. A number of problems with structure and
mechanics.
Poor work. May attempt to apply some course materials and themes, but demonstrates
very serious errors or misunderstanding of course material. The student doesn’t appear
to have any argument, and the assignment lacks structure entirely and has extensive
problems with mechanics. Shows little effort.
Very poor work. Assignment is unrelated to course material and fails to address the
prompt and guidelines. Reflects a lack of effort.
Academic Misconduct
Plagiarism and cheating will not be tolerated. Examples include: turning in a paper written by
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someone else, quoting someone else’s work without proper citation, and turning in a paper
written for another class. Any such misconduct will result in an automatic “F” for the class. The
work students submit should be entirely their own.
From the Colby Catalogue:
Plagiarism, cheating, and other forms of academic dishonesty are serious offenses. For the first
offense, the instructor may dismiss the offender from the course with a mark of F (which is a
permanent entry on the student's academic record) and will report the case to the department
chair and the dean of students, who may impose other or additional penalties including
suspension or expulsion. This report becomes part of the student's confidential file and is
destroyed six years after graduation or the last date of attendance. A second offense
automatically leads to suspension or expulsion. Students may not withdraw passing from a
course in which they have been found guilty of academic dishonesty. A student is entitled to
appeal charges of academic dishonesty to the Appeals Board. The decision of the board shall
be final and binding.
The College also views misrepresentations to faculty within the context of a course as a form
of academic dishonesty. Students lying to or otherwise deceiving faculty are subject to
dismissal from the course with a mark of F and possible additional disciplinary action.
Student accountability for academic dishonesty extends beyond the end of a semester and even
after graduation. If Colby determines following the completion of a course or after the
awarding of a Colby degree that academic dishonesty has occurred, the College may change
the student's grade in the course, issue a failing grade, and rescind credit for the course and/or
revoke the Colby degree.
Electronic Devices
Laptops may only be used by those with special learning needs that have consulted with me
beforehand. Cell phones should be turned off during class. I will reduce your participation
grade if I find you using an electronic device to use the internet or to text.
Special Accommodations
If you need disability-related accommodations in this class or if you have emergency medical
information you wish to share with me, please see me privately after class or at my office.
Required Texts
• Naazneen Barma and Steven Vogel, eds. 2008. The Political Economy Reader: Markets
as Institutions. New York: Routledge.
All other readings will be posted on moodle. Students will also watch segments from the PBS
documentary series, Commanding Heights: The Battle for the World Economy, which can be
found at: http://www.pbs.org/wgbh/commandingheights/hi/story/index.html
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SECTION I: THEORETICAL PERSPECTIVES ON POLITICAL ECONOMY
Wednesday, September 4: Course Introduction
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 1-18.
Monday, September 9: Liberalism
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 21-40, 87-116.
• Watch Commanding Heights, Chapters 2-7
Wednesday, September 11: Marxism
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 41-62.
• Leo Panitch, “Thoroughly Modern Marx,” Foreign Policy (May/June 2009), pg. 140-45.
• *** Assignment #1 due 10 am via moodle ***
Monday, September 16: Mercantilism
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 63-86.
• Alan Blinder. 2013. After the Music Stopped: The Financial Crisis, the Response, and
the Work Ahead. New York: Penguin Press. pp. 210-236.
• Lee Hudson Teslik. “Backgrounder: The U.S. Economic Stimulus Plan.” New York
Times, January 26, 2009.
SECTION II: ANALYTICAL FRAMEWORKS TO STUDY CAPITALISM
Wednesday, September 18: Economic Sociology: Polanyi
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 117-151.
NOTE: This is dense, difficult reading – read slowly and carefully!
• *** Assignment #2 due 10 am via moodle ***
Monday, September 23: Economic Sociology: Fligstein
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 153-170.
Wednesday, September 25: New Institutional Economics: North and Williamson
• Douglass North. 1981. Structure and Change in Economic History. New York: W.W.
Norton. pp. 3-32.
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 171-194.
• *** Assignment #3 due 10 am via moodle ***
Monday, September 30: Political Economy: Lindblom
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 239-240
(discussion of Lindblom).
• Charles Lindblom, Politics and Markets (1977), pg. 3-13, 65-89, 144-57, 170-188, 20121.
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SECTION III: DEVELOPED ECONOMIES
Wednesday, October 2: Early vs. Late Industrialization
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 195-198; 211228.
• Eric Hobsbawm, Industry and Empire (1968), pg. 23-78.
• *** Takehome midterm distributed in class ***
*** Friday, October 4: TAKEHOME MIDTERM EXAM DUE – 5 PM
Monday, October 7: Varieties of Capitalism
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 289-326.
Wednesday, October 9: Economic Reform and Post-Fordism
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 329-354.
• Steven Vogel. 2006. Japan Remodeled: How Government and Industry Are Reforming
Japanese Capitalism. Ithaca: Cornell University Press. 1-21, 51-77, 143-156.
Monday, October 14: No Class – Fall Break
Wednesday, October 16: Financial Deregulation
• Amar Bhidé. 2011. “An Accident Waiting to Happen: Securities Deregulation and
Financial Deregulation,” In What Caused the Financial Crisis, ed. Jeffrey Friedman. pp.
69-106.
• Joseph Stiglitz. 2011. “The Anatomy of a Murder: Who Killed the American
Economy?” In What Caused the Financial Crisis, ed. Jeffrey Friedman. pp. 139-149.
• Peter Wallison. 2011. “Housing Initiatives and Other Policy Factors,” In What Caused
the Financial Crisis, ed. Jeffrey Friedman. pp. 172-182.
• Peter Wallison. 2011. “Credit-Default Swaps and the Crisis,” In What Caused the
Financial Crisis, ed. Jeffrey Friedman. pp. 238-248.
• Listen to: “The Giant Pool of Money,” episode 355 – This American Life.
http://www.thisamericanlife.org/radio-archives/episode/355/the-giant-pool-of-money
*** Assignment #4 due 10 am via moodle ***
Monday, October 21: Simulation: Reforming the Financial Sector in the U.S.
• Alan Blinder. 2013. After the Music Stopped: The Financial Crisis, the Response, and
the Work Ahead. pp. 177-209.
*** Tuesday, October 22: FLOATING PAPER DUE – 5 PM
SECTION IV. DEVELOPING ECONOMIES
Wednesday, October 23: Why Are Some Countries Poor? Three Perspectives
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 425-445.
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•
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Theotonio Dos Santos. 1970. “The Structure of Dependence.” The American Economic
Review 60(2): 231-236.
Daron Acemoglu and James Robinson. 2012. Why Nations Fail: The Origins of Power,
Prosperity, and Poverty. pp. 70-95.
Monday, October 28: Development Strategies: The Developmental State
• Peter Evans, Embedded Autonomy (1995), pg. 3-73.
Wednesday, October 30: Development Strategies: Economic Liberalization
• Nancy Birdsall, Augusto de la Torre, and Felipe Valencia Caicedo. “The Washington
Consensus: Assessing a Damaged Brand.” 2010. Policy Research Working Paper 5316,
Office of the Chief Economist, Latin America and Caribbean Division. Washington: The
World Bank.
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 447-473.
Monday, November 4: Development Strategies: Market-Friendly Micro-Institutions
• The World Bank, World Development Report 2002: Building Institutions for Markets
(2002), 3-27.
• Deborah Brautigam and Stephen Knack. 2004. “Foreign Aid, Institutions, and
Governance in Sub-Saharan Africa.” Economic Development and Cultural Change
52(2): 255-285.
Wednesday, November 6: Debate on Foreign Aid
• Carol Lancaster. Foreign Aid: Diplomacy, Development, Domestic Politics. U of Chicago
2006. pp. 1-24; RECOMMENDED: 25-61.
• Dambisa Moyo. 2009. Dead Aid: Why Aid Is Not Working and How There Is a Better
Way for Africa. New York: Farrar, Straus, and Giroux. pp. 29-68.
*** Thursday, November 8: FLOATING PAPER DUE – 5 PM
SECTION V. POST-COMMUNIST ECONOMIES
Monday, November 11: Communism and its Collapse
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 355-357.
• Katherine Verdery. 1996. What Was Socialism, and What Comes Next? pp. 19-38.
• Valerie Bunce. 1999. Subversive Institutions: The Design and Destruction of Socialism
and the State. pp. 20-37.
Wednesday, November 13: Shock Therapy vs. Gradualism
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 359-398.
• Peter Murrell. 1993. “What is Shock Therapy? What Did It Do in Poland and Russia?”
Post-Soviet Affairs 9(2): 111-140.
• Watch Commanding Heights, Part II. Chapters 8-9, 12-16, 18-20.
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Monday, November 18: China’s Economic Model
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 399-427.
• Jeffrey Sachs and Wing Thye Woo. 1994. “Structural Factors in the Economic Reforms
of China, Eastern Europe, and the Former Soviet Union.” Economic Policy 9(18): 101131.
Wednesday, November 20: Will China Democratize?
• Minxin Pei. 2006. China’s Trapped Transition: The Limits of Developmental Autocracy.
Cambridge: Harvard University Press. pp. 45-95.
Monday, November 25: Simulation: The Future of Communism in Cuba
*** Tuesday, November 26: FLOATING PAPER DUE – 5 PM
SECTION VI. THE FUTURE OF CAPITALISM
Monday, December 2: Globalization, the Information Revolution, and the State
• Naaz Barma and Steven Vogel, The Political Economy Reader (2008), pp. 483-546.
Wednesday, December 4: Debate on Globalization and the Future of Capitalism
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