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: 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: Economic integration in historical perspective Why a need for international cooperation? How to manage international cooperation: Variety of Institutional solutions Readings: 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: 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: 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: 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: 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: 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: 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: 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