NOTE: THIS SYLLABUS CAN BE SUBJECT TO REVISIONS
Summer Programme on International Affairs and Multilateral Governance,
16 June – 4 July 2008
NEW VERSION!!!!!!
WEEK 3, June 30 - July4
GLOBAL AND REGIONAL INTEGRATION
Group 2
Programme Director: Prof. Cédric Dupont
Academic Advisor: Dr Jasmine Champenois
Programme Officer: Ms Ines Stocker
Office hours: Tuesday’s 4.30 – 6:00 pm, Villa Barton, Rue de Lausanne 132, first floor, with
academic advisor: Dr Jasmine Champenois
Email: summeraffairs@graduateinstitute.ch
Class hours: 9 am to 12 am (Lectures) / 2 pm to 4.30 pm (Workshops)
Opening Hours of the Library and Computer Room:
Until Saturday, 21th of June: Monday to Friday: 9am to 10pm , Saturday: 9am to 5pm,
Sunday: closed
From Friday, June 23rd onwards: Monday to Friday: 9am to 8pm, Saturday and Sunday:
closed
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
1
REQUIREMENTS
In order to obtain the course certificate, students should participate actively in class
discussions and exercises. To do so, they should do the required readings (see below for
how to get the readings) in advance of classes. To benefit the most from visits to
international organizations, they should also try to familiarize themselves with some of the
prominent organizations in Geneva by having a look at their respective websites.
For participants who wish to take the programme for credits:
Students who take the programme for credit (only available for those who take at least two
weeks of the programme) will be evaluated through the following scheme over a total of 100
points:
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

Participation: class participation and attendance will be 20 points. Students are
encouraged to work closely with the faculty to develop their particular interest in
issues of international affairs. Participation will also count toward receiving the final
certificate. Please note that the visits and evening debates are mandatory for
the participants
Exam: an in-class open book exam will be organized on June 27 (two hours and for
those taking the first two weeks of the program only) and on July 4 (three hours, for
those taking the full programme or two hours for those who take the last two weeks
only). The exam aims at evaluating students’ ability to: a) make links between
various analytical and empirical issues covered in class and in the readings; b)
develop their own thinking about some current developments. The exam counts for
30 points.
Research paper: students should write a research paper on issues of governance
that cut across different empirical topics covered during the program. The paper
should be developed in consultation with the director or the advisor. Its length should
be 10 pages (two weeks) or a 15 pages (full programme), counts for 50 points and
will be due no later than three weeks after the end of the summer programme.
READINGS
The mandatory readings, which are NOT indicated with an electronically linked in this
Syllabus, can be downloaded from our participant’s portal on:
http://graduateinstitute.ch/executive/summer/international-affairs.html
Log in : summeraffairs
Password : affairs2008
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
2
COURSE OUTLINE AND READINGS
30 June 2008, Monday
Morning Lecture
Topic Title: Global Political Economy
Professor: Cédric Dupont
Time and Location: 9 – 12 am, S1, Villa Barton, ground floor.
Summary:
The lecture addresses fundamental issues that countries face when they engage in
international economic exchanges. Discussion focuses in particular on the choice of specific
institutional designs in comparative perspective across time, space and issue-area.
Key points:
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Economic integration in historical perspective
Why a need for international cooperation?
How to manage international cooperation: Variety of Institutional solutions
Readings:
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Aggarwal, Vinod. K. and Cédric. Dupont 2004. Collaboration and Coordination in the
Global Political Economy. In Global Political Economy, edited by John Ravenhill.
Oxford, Oxford University press: 28-49. (on participant’s portal).
Baldwin, Richard E. and Philippe Martin 1999. Two Waves of Globalisation:
Superficial Similarities, Fundamental Differences, NBER Working Paper 6904 (on
participant’s portal).
Eichengreen, Barry and Peter B. Kenen 1994. Managing the World Economy under
the Bretton Woods System: An Overview. In Managing the World Economy, edited
by Peter B. Kenen, 3-57. Washington, D.C.: Institute for International Economics.
(Download here!)
Further suggested readings:
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Williamson, Jeffrey (2002) “Winners and Losers Over Two Centuries of
Globalization”, NBER Working Paper No. 9161.
Bourguignon, François et al (2002) “Making Sense of Globalization, A Guide to the
Economic Issues”, Policy Paper 8, CEPR, London.
Eichengreen, Barry and Harold James (2001) “Monetary and Financial Reform in
Two Eras of Globalization”, University of California, Berkeley.
Obstfeld, Maurice and Alan Taylor, (2002) “Globalization and Capital Markets”,
University of California, Berkeley.
O’Rourke, Kevin H. and Jeffrey G. Williamson 2001. “After Columbus: Explaining the
Global Trade Boom 1500-1800” (2001) NBER Working Paper 8186.
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
3
Discussion questions on readings:



When do countries need international institutions to manage international economic
relations?
Is the 19th century approach to international economic relations still feasible?
In your opinion what is the most difficult problem facing countries in the current global
economy?
Afternoon Workshop
Globalization and Social Rights
Expert: Julien Burda
Time and Location: 2 – 4.30 pm, Salle S4, Villa Barton, 2rd floor.
Short outline:
The presentation aims at presenting the interactions between the liberalization of
international trade and the protection of social rights.
The presentation will first try to identify, which of the social rights have to be viewed as
"fundamental". In the context of globalization, fundamental social rights are endangered by
the increase of competition among international actors. The presentation aim at introducing
some of the consequences of the globalization process on the effectiveness of these rights.
Then, the presentation will address some proposition that could be adopted in order to
protect social rights in the global context.
More detailed outline and Readings on the participant’s portal.
****
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
4
1 July 2008, Tuesday
Morning Lecture
Topic Title: Global Finance
Professor: C. Tille
Time and Location: 9 – 12 am, Salle S1, Villa Barton, ground floor
Summary:
The lecture proceeds in two steps. We first review the various measures of trade and
financial globalization, and present the patterns over the last twenty years. The implications
of financial globalizations for international linkages are also illustrated through some
examples.
In a second step, we consider the role of financial globalization in current policy issues,
including the large external deficit of the United States and the ability of central banks to
conduct an independent monetary policy.
Key points:
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Financial integration has surged since the early 1990s, with large cross-border
financial holdings.
New channels of international linkages, beside the standard ones through trade,
have become relevant, including capital gains and losses on foreign assets, and
international financial earnings.
Financial considerations play a relevant role in understanding the large current
account imbalances observed in recent years.
The ability of central banks to conduct an independent monetary policy is not
fundamentally altered by globalization.
Readings:
Higgins, Matthew, Klitgaard Thomas, and Cédric Tille, (2007). “Borrowing without debt?
Interpreting the U.S. international investment position”, National Association for Business
Economic Business Economics 42(1),pp. 17-27.
Lane, Philip, and Gian Maria Milesi-Ferretti (2007). “A global perspective on external
positions”, in R. Clarida ed. G7 Current Account Imbalances: Sustainability and
Adjustment, University of Chicago Press.
Lane, Philip, and Jay Shambaugh (2007). “Financial Exchange Rates and International
Currency Exposures”, IIIS Discussion Paper No. 229.
Kohn, Donald (2008), “Implications of Globalization for the Conduct of Monetary Policy”,
speech at the International Symposium of the Banque de France, Paris.
Further suggested readings:
Dooley, Michael, David Folkerts Landau, and Peter Garber (2004). “The revived Bretton
Woods System”, NBER WP No. 10332.
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
5
Higgins ,Matthew, Thomas Klitgaard, and Robert Lerman, 2007, “Recycling Petrodollars”
Federal Reserve Bank of New York Current Issues in Economics and Finance
Lahiri, Amartya, and Leonardo Bartolini, 2006, “Twin Deficits, Twenty Years Later” Federal
Reserve Bank of New York Current Issues in Economics and Finance
Goldberg, Linda, and Eleanor Wiske Dillon , 2007, “Why a Dollar Depreciation May Not
Close the U.S. Trade Deficit” Federal Reserve Bank of New York Current Issues in
Economics and Finance
Discussion questions on readings:
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Has financial globalization made international trade flows irrelevant?
Can we expect the ongoing weakening of the U.S. dollar to rebalance the world
economy?
How does the rise of large new players, such as China, affect the conduct of
economic policy throughout the world?
Afternoon Workshop
Regional Integration in Africa: The African Union and the “Regional Economic
Communities”
Expert: Dr Djacoba Tehindrazanarivelo
Time and Location: 2 – 4.30 pm, Salle Abi-Saab, Villa Barton, 1st floor
Summary:
This workshop will discuss the process of regional integration in Africa, taking as a starting
point the 1991 Abuja Treaty which established the African Economic Community (EAC). The
Treaty divided the continent into five regions (North, East, South, West and Central) and
provided that the AEC should be built upon the progressive integration of existing and future
“Regional Economic Communities” (RECs), i.e. sub-regional organizations, over a period of
34 years.
More detailed information on participant’s portal
****
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
6
2 July 2008, Wednesday
Morning Lecture
Topic Title: “The East Asian ‘Miracle’ Revisited”
Professor: J.-L. Maurer
Time and Location: 9 – 12 am, Auditorium AJF (above the Graduate Institute cafeteria)
Summary:
This lecture is proposing the students to revisit the accelerated development process known
as the “East Asian Miracle” (EAM). It will first introduce them to the main reasons explaining
what can be considered as the major regional-wide development success story in the “Third
World” since WW2. Then it will show that this success story constitutes the best possible
example to study the pros and cons of globalization and its effects on economic growth,
poverty reduction and inequality rise. To conclude, it will argue that the EAM experience is
also a very good case study to investigate the linkages between economic development,
social change and political democratization.
Key points:
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Introducing the origins of the concept and main reasons explaining the EAM
Presenting the major economic and social characteristics of this experience
Using the EAM to explore the links between globalization and development
Readings:
Krugman, Paul; The Myth of Asia’s Miracle, http://web.mit.edu/krugman/www/myth.html
Moreno, Ramon; The East Asian Miracle: growth because of government intervention or in
spite, http://www.allbusiness.com/government/621102-1html
Stiglitz, Joseph; From Miracle to Crisis to Recovery: Lessons from four decades of EA
Experience,
http://www2.gsb.columbia.edu/faculty/jstiglitz/download/papers/2001_Miracle_to_Crisis_to_
Recovery.pdf
Wolton, Michael; The Maturation of the East Asian Miracle, Finance and Development,
September 1997,
http://www.imf.org/external/pubs/ft/fandd/1997/09/pdf/walton.pdf
World Bank Policy Research Bulletin; The Making of the East Asian Miracle;
http://www.worldbank.org/html/dec/Publications/Bulletins/PRBvol4no4.html
Afternoon free
Evening Debate (mandatory)
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
7
Speakers to be announced
Followed by a cocktail
Time and Location : 6.30pm, Auditorium AJF (above the Graduate Institute cafeteria)
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
8
3 July 2008, Thursday
Morning Lecture
Topic Title: Introduction to European Union
Professor: Cédric Dupont
Time and Location: Salle S1, villa Barton, ground floor.
Summary:
This lecture focuses on the most advanced case of regional integration, the European
Union, and highlights its achievements through the single market and single currency. It also
addresses the thorny issue of the governance of such an integrated area. It does so in a
comparative perspective both across time and space.
Key points:
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Regional integration: economic and political logics
European single market and a European single currency: genesis and achievements
Governing the European Union: a primer and future challenges
Readings (on participant’s portal):
Aggarwal, Vinod K. and Cédric Dupont 2002. A Leader in Institutional Design? Europe and
the Governance of Trade and Monetary Relations. In Globalization and Europe,
edited by Henryk Kierzkowski, 114-142. New York: Palgrave.
Grauwe, Paul de 2006. What Have we Learnt about Monetary Integration since the
Maastricht Treaty? Journal of Common Market Studies 44(4): 711-730.
Pollack, Mark A. 2000. The End of Creeping Competence? EU Policy-Making Since
Maastricht. Journal of Common Market Studies 38(3): 519-538 (background
reading).
Zielonka, Jan 2007. "Plurilateral Governance in the Enlarged European Union." Journal of
Common Market Studies 45(1): 187-209.
WTO 2007. World Trade Report 2007. Geneva: WTO, pp. 138-141; 304-320, available
online at
http://www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report07_e.pdf
Further suggested readings:
Two reports from a leading European think tank:
Coming of Age: Report on the Euro Area
Think Global Act European
As well as contrasted views on the achievements of the Single Market:
Delgado, Juan (2006). Single market trails home bias
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
9
European Commission (2007) “A Single market for 21st century Europe.”
Discussion questions on readings:



Is there really a European model of regional integration? If so what are its main
features?
Can regional integration in Europe go beyond the current situation?
Has the “one market, one money” proven to be as good as some said it would more
than ten years ago?
Afternoon Workshop
Topic Title: Regional Trade Agreements and the WTO
Expert: June Young Lee Legal/Economic Affairs Officer
Time and Location: Salle S1, villa Barton, ground floor
Short Summary
The workshop is aimed at increasing participants' awareness of RTAs under the dynamics
ofthe WTO.
It includes i) WTO rules on RTAs; ii) WTO negotiations on RTAs; and iii) WTO
Transparency Mechanism on RTAs.
Evening Event:
Farewell Swiss Buffet
7 pm Graduate Institute’s Cafeteria in Parc Barton
****
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
10
4 July 2008, Friday
Morning Lecture
Topic Title: The EU’s use of soft power: trade and development
Professor: Manfred Elsig
Time and Location: 9 – 12 am, Auditorium AJF (above the Graduate Institute cafeteria)
Summary:
This lecture focuses on EU trade and development policy and discusses what type of power
the EU represents in the global system. Particular attention is paid to different regulatory
venues and how these are used to address economic and trade-related development
concerns. In addition, internal processes of decision-making are highlighted and the key
drivers for the role of the EU in these policy areas examined.
Key points:
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The EU as a civilian, soft or conflicted power?
Drivers for trade policy making
The use of venues to address trade and development concerns
Readings (electronic format):

Elsig, Manfred. The EU's Choice of Regulatory Venues for Trade Negotiations: A
Tale of Agency Power?JCMS: Journal of Common Market Studies, Vol. 45, Issue 4,
pp. 927-948, November 2007
Discussion questions on readings:


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What is the EU’s role in the global trade architecture?
How does the EU go about “implementing” the aid for trade agenda?
Who governs EU trade and what strategies could dominate in the future?
Further suggested readings:

Special issue on “The EU in International Trade Negotiations” edited by Andreas
Duer and Hubert Zimmerman. JCMS, November 2007.
Afternoon Workshop
Topic Title: To be announced
Expert: Mr Sergio Balibrea, Counsellor, Delegation of the European Commission to the
International Organisations in Geneva
Time and Location: 2 – 4.30 pm, Auditorium AJF (above the Graduate Institute cafeteria)
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
11
Evening: Exam
Time: 6 pm – 8 pm (for participants of week 2 and 3)
6 pm – 9 pm (for participants of week 1,2, and 3)
Location: Auditorium AJF (above the Graduate Institute cafeteria)
GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES
INSTITUT DE HAUTES ÉTUDES INTERNATIONALES ET DU DÉVELOPPEMENT
Rue de Lausanne 132 - CP 136 - 1211 Geneva 21 - CH - P +41 (0)22 908 57 19 - http://graduateinstitute.ch
Ines Stocker - summeraffairs@graduateinstitute.ch
12