PS 201B —
Fall 2002
The Political Economy of the Advanced Countries:
The Study of Politics and Markets
Professor John Zysman Time: Thursdays 12-2:00 pm
Office: 2234 Piedmont Avenue Place: 791 Barrows Hall
Phone: 642-3067 CC#: 73160
E-mail: johnz@socrates.berkeley.edu
Assistant: Genevieve Taylor
Email: genktay@uclink.berkeley.edu
What is this course about?
This course examines the interplay of politics, institutions, and markets in the advanced industrial countries. The course will consider the political and social adjustments these countries make to the evolving economy, and the political efforts to shape and control that evolution. A unifying perspective is that economic growth and political stability require political settlements that at once resolve the technical tasks of growth (assuring the appropriate allocation of resources and the sustained reorganization of economic activities) as well as the political problem of allocating the gains and costs of development. There is no single best way of insuring sustained economic development and political stability. Nonetheless, some countries have been able to manage sustained economic growth, while others have stumbled along the way.
How do we understand and explain the variety among national outcomes? What research enterprise is required? The analytic approach in the class will view actors, political groupings, and institutions as political creations that underlie the models of the several national political economies. Both political actors and political institutions must be understood as the outcomes and settlements of past political and economic crises. This has substantial methodological consequences. There is no irreducible nub of interests from which to read a political map. Making sense of the political interests of economic actors in the advanced countries also requires the understanding of the competitive dynamics of markets. Understanding market dynamics makes the political interplay of business, labor, and the state more transparent.
Several threads will guide the discussion. First, we use ideal types to analyze the dynamics of the advanced countries. By the late 1980s a conventional wisdom had formed about how the advanced countries differed and operated. As the countries have evolved and political settlements been remade, two questions press forward: Were those ideal types useful and were the national characterizations accurate in the first place? At least one new set of ideal types is now proposed. How do we select? Do national models still matter in a supposedly global economy?
As important, some would contend that we are living through a great transformation of the economy and society. Many generations believe that they are living through a historical transformation; such a belief adds moment to the meaning of one’s own life. Most generations are wrong. But historical transformations do occur. How would we begin to decide whether this is such an historical transformation? What do we learn by asking this question.
Course Requirements
Students have two options.
Option 1: This option is aimed at students who are taking the course as a general introduction to comparative political economy or the politics of the advanced industrial countries.
- Papers: Together the set of short papers represents the equivalent of one longer research paper.
1. Three think pieces (5 pages each), each of which should develop one analytic theme from the set of readings from a section of the course. The first paper is due September 28th. The second paper is due October 31st. The third paper is due in December, with a specific date to be announced later. The think pieces must be turned in both as a hard copy to my office at BRIE and by e-mail attachment to myself, johnz@socrates.berkeley.edu, and to Genevieve Taylor genktay@uclink.berkeley.edu, in Microsoft Word format by 9 AM the day they are due. For those who are taking the comparative exam, these two papers will be due before date of the exam.
2. A longer analytic essay (15 pages) developing one theme or issue from the class and class readings. What problem would interest you enough to research later? What are the issues? How would you undertake the research? Research for the paper is discouraged. This is an analytic exercise. But at the end, you should have an analytic framework and a research "design." This paper is due December 12th. Again, both a hard copy and an e-mail attachment are required.
- A final exam. The final exam is intended to help students synthesize the material and review the readings. The exam will be in December, with specific dates to be announced later.
Option 2: This option is aimed at students who have a specific topic they are interested in developing or have another reason to want to do a longer research paper.
- One research essay. This essay should emerge from the themes of the class, but is to be determined by the student. Proposed topics must be submitted in writing by the end of class on September 28th. An analytic statement of the problem must be submitted by October 12th. A research outline is due by November 14th. The paper is due in December, with a specific date to be announced later. The proposal, the outline, and the paper must be submitted both as hard copy and by e-mail attachment. The e-mail attachment should go to myself and to Genevieve Taylor in Microsoft Word format.
- A final exam.
Auditors: Auditors must do three think pieces. The first think piece is due by the end of class on September 28th. The second must be completed by October 31th. The third must be completed by November 21st. Note: the think pieces must be submitted before the relevant class or they will not count toward the assignment. Auditors taking the comparative politics exam must complete two of the think pieces before their exam. The think pieces must be turned in both as hard copy to my office at BRIE and by e-mail attachment in Microsoft Word format by 9 AM the day they are due.
The student must decide by September 28th which option he or she prefers. Your choice must be submitted to my office in writing or by e-mail. If you do not make an active decision, the default assignment is Option 1. A change of options is possible later, but requires a proposal submitted by e-mail and the instructor’s consent.
"Registering": All students auditing or taking the class for credit should have an e-mail address. Please send a single note "registering" for the class both to me and to my assistant, Genevieve Taylor. Her email address is genktay@uclink.berkeley.edu. Auditors must also "register" by email. The registration note should include: department, year, major, intellectual and research interests, topic of your favorite research paper, undergraduate college and major, and anything else you think would be helpful in beginning to know about you.
Assignments: Note that the assignments after week four are subject to revision.
*Reader: All materials, except those noted, will be included in the reader. The reader is available for sale at Copy Central, 2560 Bancroft Way (and Telegraph). (510) 848-8649.
*Library: All recommended materials will be put on reserve at the library.
*Books: Because of the enormous flexibility of the on-line book companies, I have put only a few books on order at the ASUC bookstore. Anything you want you can get from www.amazon.com, www.barnesandnoble.com, www.books.com, etc. Nonetheless, the following books have been ordered at the ASUC bookstore:
- Gourevitch, Peter Politics in Hard Times (Ithaca: Cornell University Press, 1987).
- Polanyi, Karl The Great Transformation (Boston: Beacon Press, 1944).
- Crouch, Peter and Wolfgang Streeck Political Economy of Modern Capitalism (London: SAGE Publications, 1997).
Some may find these volumes useful to own:
- Hall, Peter and David Soskice Varieties of Capitalism (New York: Oxford University Press, 2001).
- Kitschelt et al. Continuity and Change in Contemporary Capitalism ? (Cambridge: Cambridge University Press, 1999).
- Moore, Barrington Economic Backwardness in Historical Perspective (Boston: Beacon Press, 1966).
Recommended Purchase:
- DiMaggio, Paul J. and Walter W. Powell The New Institutionalism in Organizational Analysis Powell and DiMaggio, eds. (Chicago: University of Chicago Press, 1991).
Note: Only one article is assigned from this volume and it is expensive. But it is useful to own.
- Rodrik, Dani Has Globalization Gone Too Far? (Washington D.C.: Institute for International Economics, 1997).
Note: This is in paperback and is useful, but not necessary to own.
PS201B Reading Assignments
Please note that reading assignments are subject to revision after the fourth week of classes. In addition, some classes have been, or may need to be, rescheduled.
Part I – Introduction
Weeks I & II – August 29 & September 5. Developments and Debates
Will the advanced countries shape technology and global market forces, or conversely, be reshaped or shattered by them? Several buried sets of assumptions underlie many theoretical and policy arguments. One debate is about the relation of the market and politics: Is the market a political creation that in turn shapes politics? Or is the market a naturally occurring phenomenon? A second is the question of whether the several national states remain powerful actors in these adaptations or are simply political icons stripped of power. A third—and related—discussion is about the political strategies available to each country to shape outcomes. The fourth issue is whether the present transformation of the economy in fact will be accompanied by a significant change in the politics of the advanced countries.
Some Debates
- Markets: Institutional Construction or Natural Phenomena
Can we reason out the logic of the choices of governments and groups within nations from the structure of the political/economic situation in which they find themselves? How do the frames of reference evolve? Gerschenkron sets up a logic of the 19th century; can we create one of the 20th century? That requires that you can spell out clearly both Gerschenkron’s argument and the underlying logic.
- Polanyi, Karl The Great Transformation (Boston: Beacon Press, 1944): Chapters 6,7,12,14,15.
- Gerschenkron, Alexander "Economic Backwardness in Historical Perspective" in Economic Backwardness in Historical Perspective (Cambridge: Harvard University Press, 1962): pp. 5-30.
- The State is Dead, Long Live the State: Views on Globalization
What capacities does the state retain to shape the course of economic and social development?
- Strange, Susan The Retreat of the State: The Diffusion of Power in the World Economy (Cambridge University Press, 1996): Chapter 1, "The Declining Authority of States;" Chapter 4 "Politics and Production;" Chapter 5, "The State of the State."
- Weiss, Linda The Myth of the Powerless State (Ithaca: Cornell University Press, 1998), Chapters 1, 2.
- Stiglitz, Joseph, Globalization and its Discontents, (New York: W.W. Norton & Company, 2002), Chapters. 1, 3.
- Rogoff, Kenneth, Response to Stiglitz – The Economist, 2002
- Rodrik, Dani Has Globalization Gone Too Far? (Washington D.C.: Institute for International Economics, 1997): Introduction & Conclusion.
- A Second Transformation?
- Zysman, John and Steven Weber "Governance and Politics of the Internet Economy – Historical Transformation or Ordinary Politics With A New Vocabulary?" in N.J. Smelser and P.B. Baltes, eds. International Encyclopedia of the Social and Behavioral Sciences (Oxford: Elsevier Science Limited, Forthcoming 2000).
- Boyle, James, "The Second Enclosure Movement and the Construction of the Public Domain," available at
http://www.law.duke.edu/pd/papers.html .
Delong, Brad "What’s New About the New Economy?" available at
Part II - National Models: Three Logics and Explanations
Week III – September 12 Institutions: Effects and Constraints
What, if anything, sustains national variations in policy and politics? The next weeks introduce a series of starting points for an answer. We will be looking continuously at the interplay of institutions, social groups, and the situations in which they find themselves. Note that there have been a series of characterizations of national models that became conventional wisdom and then faded. How might we replace them?
- Hall, Peter and David Soskice,Varieties of Capitalism (New York: Oxford University Press, 2001), Introduction.
Zysman, John "Korean Choices and Patterns of Advanced Country Development." Korea’s Political Economy an Institutional Perspective. Lee-Jay Choo and Yoon Hyung Kim, eds. (Colorado: Westview Press, 1994.)
- Bendix, Reinhard Nation Building and Citizenship: Studies of our Changing Social Order (New York: Wiley, 1964).
For a summary of Alexis de Tocqueville "The Old Regime and the French Revolution," see pp.48-54.
- Berger, Suzanne Peasants Against Politics (Cambridge: Harvard University Press, 1972): Chapter 5.
- Skocpol, Theda States and Social Revolutions (Cambridge: Cambridge University Press, 1979): p. 14-33. (handout)
- Hall, Peter and Rosemary Taylor "Political Science and the Three New Institutionalisms" Political Studies Vol. LIV, 1996.
Will be discussed in class:
- Tyson, Laura and John Zysman "Developmental Strategy and Production Innovation in Japan" in Chalmers Johnson, Laura Tyson, and John Zysman, eds. Politics and Productivity (Cambridge: Ballinger, l988), pp. 59-140.
Those taking the Fall 2002 Comparative Politics field exam should also read the following (recommended for other students).
- North, Douglas, Institutions, Institutional Change and Economic Performance, (New York: Cambridge University Press, 1990),excerpts
- DiMaggio, Paul J. and Walter W. Powell The New Institutionalism in Organizational Analysis Powell and DiMaggio, eds. (Chicago: University of Chicago Press, 1991). Introduction.
Week IV – September 19 Who Are the Actors and What Shapes Their Behavior?
The underlying question in the reading the next two weeks is how political groups come to be formed and define their interests. How do we proceed analytically to identify them and understand their interests? What different answers do the authors provide to this question?
- Berger, Suzanne Organizing Interests (New York: Cambridge University Press, 1981), Introduction.
- Frieden, Jeffry and Ronald Rogowski, Chapter 2 in Keohane and Milner Internationalization and Domestic Politics (New York: Cambridge University Press, 1996).
- Gourevitch, Peter Politics in Hard Times (Ithaca: Cornell University Press, 1987), Chapters 3, 4, pp. 71-180.
- Keohane, Robert and L. Milner Internationalization and Domestic Politics (New York: Cambridge University Press, 1996), Introduction & Conclusion.
- Smelser, Neil "The Rational and the Ambivalent in the Social Sciences." 1997 Presidential Address. (American Sociological Review, 1998 Vol. 63: February 1-16)
- Schelling, Thomas C. The Strategy of Conflict (New York: Oxford Press 1960), Chapter. 6.
Those taking the Comparative Exam should also read:
- Geddes, Barbara "The Politics of Economic Liberalization" Latin American Research Review V. 20 N. 2, Spring 1995, pp. 195-201, 213-214.
- Zysman, John "How Institutions Create Historically Rooted Trajectories of Growth" in Industrial and Corporate Change, 3:1, 1994.
- Rogowski, Ronald Commerce and Coalitions: How Trade Affects Domestic Political Alignments (Princeton: Princeton University Press, 1989): Chapters 1,2,3.
- Frieden, Jeffrey "Invested Interests: The Politics of National Economic Policies in a World of Global Finance" in International Organization, 45:4, 1991, pp. 425-51.
Week V – September 26 What Will Be the Lines of Division: Class, Coalitions, and Groups
Two questions concern us this week. First, how do interests coalesce into groups, coalitions, and politics? We cannot understand the formation of political groups, their objectives or their success as a simple extension of a national production profile or a simple elaboration of economic interests. Second, what are the essential cleavages in society? Note that Barrington Moore organizes his analysis around the commercialization of agriculture. Luebbert and Ruth Collier organize their discussion around the entry of labor into politics. Are there any parallel economic phenomena that will organize contemporary politics?
- Moore, Barrington Social Origins of Dictatorship and Democracy (Boston: Beacon Press, 1993): Part III, Chapters 7,8,9.
- Luebbert, Gregory M. Liberalism Fascism and Social Democracy (Oxford University Press, 1991): Introduction & Conclusion.
- Shefter, Martin Patronage and Its Opponents (Cornell University, Center for European Studies, 1977).
- Esping, Andersen "Politics Without Class: Post-Industrial Cleavages in Europe and America" in Kitschelt, pp. 293-316.
Those taking the Comparative Exam should also read:
Collier, Ruth "Labor and Democratization: Comparing the First and Third Waves in Europe and Latin America" IIR Working Paper #62 (Berkeley: Institute for Industrial Relations, 1995).
Kitschelt, Herbert European Social Democracy Between Political Economy and Electoral Competition, pp. 317-345.
Paper I. Write a 10 page essay considering the alternative lines of explanation and argument developed here. There is a range of issues that might be considered. The formulation of the paper is part of the task. Here are a few suggestions of issues: What difference does the choice of framework make for the conclusions we might reach? What are the limits of each of the several frameworks? That is, what questions can a framework explain and what issues are outside its optic? Does the analytic frame constrain the questions you can ask? Where would you start to analyze your favorite question?
Part III - Cases and Developments
Weeks VI & VII – October 3 & 10.
Where the State Mattered or Did it?
- Japan: The State and Economic Competitiveness
Although assigned different labels by several scholars, there is a category of advanced countries in which the state mattered to the pattern of development. The accounts vary, emphasizing different variables. The labels run from strong states (Katzenstein and others) to state-led growth (Zysman and others) to coordinated markets with the state as coordinator (Soskice). A critical question in these several accounts is, "what happens to interests and social groups in both politics and policy making?" We look here at several such stories, i.e. cases.
As you consider these cases recall that the Japanese and Asian cases were for years the model of how an effective bureaucracy led by a coherent political coalition could solve the problem of distribution and allocate resources to growth. Then, in a flash, the same cases became evidence of the inability of governments to sustain development in increasingly complex economies. Now, with equal rapidity the Asian’s are back in fashion. Our theories must not be driven by the latest news story. Can we accommodate the growth years and crisis years in the same story? What really was going on?
1. The Developmental Story
- Johnson, Chalmers MITI and the Japanese Miracle (Palo Alto, Stanford University Press, 1983), Introduction.
- Zysman, John and Eileen Doherty, Review of Shigeto Tsuru’s Japan’s Capitalism, Kent E. Calder’s Strategic Capitalism, and The World Bank’s The East Asian Miracle, in The Journal of Japanese Studies, 22:1, 1996.
- Tyson, Laura and John Zysman "Developmental Strategy and Production Innovation in Japan" in Chalmers Johnson, Laura Tyson, and John Zysman, eds. Politics and Productivity (Ballinger, l988).
- The World Bank The East Asian Miracle. Read the Overview (pp. 1-26); 2.
2. The New Crisis
- Milhaupt, Curtis J. ‘A Relational Theory of Corporate Governance: Contract, Culture, and the Rule of Law’, Harvard International Law Journal Vol. 37, No. 1, Winter 1996, pp. 3-32.
- Vogel, Steven K. "Can Japan Disengage? Winners and Losers in Japan’s Political Economy, and the Ties that Bind Them" Social Science Japan Journal Vol. 2, No. 1 (Tokyo: Institute of Social Science, 1999), pp. 3-21.
- France: The State and the Politics of Economic Modernization
- The Developmental Story.
Zysman, John Governments, Markets and Growth (Ithaca: Cornell University Press, 1983): p. 99-169.
- 2. The Emerging Adaptation
- Levy, Jonah D. Toqueville’s Revenge (Cambridge: Harvard Press, 1999), Chapters 1, 7.
- Levy, Jonah D. "The State After Statism: French Economic and Social Policy in the Age of Globalization’, paper for the Thirteenth International Conference of Europeanists (Chicago: Palmer House Hilton, 2002).
Recommended -- May appear on the Exam: Asia
- Wade, Robert and Veneroso "The Asian Model, the Miracle, the Crisis & the Fund" From epn.org/sage/imf24.html (1998)
- Wade, Robert "The Asian Crisis and the Global Economy: Causes, Consequences & Cures" Current History (November 1998).
- Amsden, Alice The Rise of the Rest: Challenges to the West from Late-Industrializing Countries (England: Oxford Press, 2001) Chapter 1. Also see her previous books for more indepth country studies.
Week VIII – October 17 Reregulation, Deregulation, and Corporate Governance:
Is the State Deconstructed or Reformed; Is Corporate Reform a Political Issue?
The term "deregulation" hides the fact that the state has been less pushed back than altered in its functions. Indeed many issues of control have been re-fought in the guise of corporate governance. Indeed, the questions of national political economy are increasingly being phrased in terms of corporate governance. We need to understand both discussions.
To break through the ideological debate, the deregulation story must be reframed as the transition from one market structure to another. There have been clear successes; the French financial market reorganization in the 1980s, and clear catastrophes, the Japanese financial market debacle and the California energy market experiment. When do these deregulations succeed and when do they fail?
The American domination of the governance debate in the past decade hinged on the notion that there was a "better" way of managing firms, markets, and markets for firms. With the present debacle how do we rethink the varieties of governance debate. How do we resituated the evolution of the past decade.
Regulation:
- Vogel, Steven. Freer Markets, More Rules (Ithaca: Cornell University Press, 1996): Introduction and pp. 57-83, 125-55.
- Stigler, George "The Theory of Economic Regulation" Bell Journal of Economics and Management Science 2:1 Spring 1971, pp. 3-21.
- Noll, Roger "Economic Perspectives on the Politics of Regulation," in R. Schmallensee and R.D. Willig, eds. Handbook of Industrial Organization (Elsevier, 1989): pp. 1253-1287.
- Wolf, Charles "A Theory of Non-market Failures" Public Interest Vol. 55, Spring 1979, pp. 114-133.
Corporate Governance:
- Lazonick, William and Mary O’Sullivan "Corporate Governace and Corporate Employment: Is Prosperity Sustainable in the United States?" Jerome Levy Economics Institute Working Paper #183 (Bard College, 1997).
- Williamson, Oliver, The Economic Institutions of Capitalism (Free Press, 1998) pp. 68-85.
- Cioffi, John ‘Restructuring "Germany Inc." The Politics of Company and Takeover Law Reform in Germany and the European Union’, Working Paper REIF-1 (University of California, Riverside, 2002), pp. 1-53.
Week IX – October 24 The Neo-liberal Cases: Britain and the United States
1. The British Case
Hutton, Will The State We’re In (London: Jonathan Cape, 1988), pp. 1-55.
- Graham, Andrew - Crouch, Peter and Wolfgang Streeck Political Economy of Modern Capitalism (London: SAGE Publications, 1997), Chapter 7.
- Turner, Adair Just Capital (London: Macmillan, 2001), Chapter 7: ‘Cool Britannia or Still the Sick Man of Europe?’
- Levy, Jonah, et al. "The Twin Restorations: The Political Economy of the Reagan and Thatcher ‘Revolutions’" in Lee-Jay Cho and Y.H. Kim, eds. Ten Paradigms of Market Economies and Land Systems (Korea Development Institute, 1997).
2. The American Case
- Noll, Roger "Structural Policies in the United States" Parallel Politics (Brookings Institution, 1991).
- Wolfe, Alan "The Role of US Trade Policy" in Scott and Lodge, eds. US Competitiveness in World Economy (Harvard Business School Press, 1985).
- Borenstein, Severin, ‘The Trouble with Electricity Markets: Understanding California’s Restructuring Disaster’, Journal of Economic Perspectives, 2002.
Part IV – Redefining the Lines of Politics in A Global Era.
Until now we have looked at cases of state led growth or markets with a heavy dose of state coordination, depending on your vocabulary and perspective. In the remaining weeks we need to consider the liberal economies and the corporatist or coordinated political economies. To do so, we look at the issues of regulation and welfare. The two are tied together, since they amount to the redefinition of rules for the markets for goods and labor. In some sense a set of rules grew up, a role for the state, beginning in the depression and reformed in the postwar settlement. In some views they need to be repealed, in other views, they need to be recast.
The search for political strategy by left and right, in a global era is common to the two stories and the several cases. Hence for the next two weeks please review the following:
- Kitschelt, Herbert "European Social Democracy Between Political Economy and Electoral Competition" in Kitschelt, pp. 317-245.
And read:
- Kersbergen, Kees van "Contemporary Christian Democracy and the Demise of the Politics of Mediation" in Kitschelt, pp. 346-370.
Week X – October 31 Social Democracy in a Global Era: Welfare and Labor as
Defining Features of Politics
The debate over welfare politics has become a central theme in the political debates and economic strategies of advanced industrial countries. Are there real issues or has the Left lost visionary focus while the Right tries to roll back earlier advances?
1. Welfare
- Esping-Andersen, Gøsta "The Three Worlds of Welfare Capitalism" (Princeton, NJ: Princeton University Press, 1990): pp. 9-78, 221-29.
- Levy, Jonah "From Vice to Virtue" Politics and Society Vol. 27 No. 2 (London: Sage Publications, Inc., 1999), pp. 239-273.
- Pierson, Paul "The New Politics of the Welfare State" World Politics 48:2 (Baltimore: Johns Hopkins University Press, 1996), also available at http://muse.jhu.edu/journals/world_politics/v048/48.2pierson.html.
2. Labor
- Nickell, Stephen "Unemployment and Labor Market Rigidities" Journal of Economic Perspectives Vol. XI No. 3.
- Siebert, Horst "Labor Market Rigidities: at the Root of Unemployment in Europe" Journal of Economic Perspectives Vol. II No. 3.
- Thelen, Kathleen - Hall, Peter and David Soskice Varieties of Capitalism (New York: Oxford University Press, 2001), Chapter 2.
- Sabel, Charles Work and Politics (Cambridge: Cambridge University Press, 1984): Chapter 1.
- Note: Chapters 3 & 4 strongly recommended
Week XI – November 7 National Cases: Germany and Sweden
1. The German Case
- Streeck, Wolfgang "German Capitalism: Does it Exist? Can it Survive?" New Political Economy 2:2, 1997.
- Turner, Henry Germany from Partition to Reunification (New Haven: Yale University Press, 1992): Chapters 1 & 6.
- Manow, Philip and Eric Seils, "Adjusting Badly: The German Welfare State, Structural Change and the Open Economy," forthcoming in Scharpf, Fritz W. and Vivien A. Schmidt, eds. Welfare and Work in the Open Economy, Vol. 2 (New York: Oxford University Press, 2000).
2. The Swedish Case
- Pontusson, Jonas "Sweden after the Golden Age" in Perry Anderson and Patrick Camiller, eds. Mapping the West European Left (London: New Left Review, 1994).
- Zysman, John, Review of Kurzer. (See also Paulette Kurzer "The Internationaliation of Business and Domestic Class Compromises: A Four Country Study" West European Politics 14:4, October 1991, pp. 1-24).
Week XII – November 14 Production, Politics, and the Internet Revolution: Are we at the beginning of the second enclosures?
There are two ways of treating this material. The more conservative starts with the observation that several times in the past several decades radical changes in the organization of production have shaken the competitive position of industries in the advanced countries. Each time there was a paradigm shift in the social organization of factories and markets. Each time there were significant international repercussions. We hear talk of an internet economy, of radical reorganizations in production. Are those assertions real? The .com phenomena should be seen as part of an ongoing transformation of the economy.
How, then, do we understand the associated political story? We begin by proposing that each production revolution must be seen as a product of a particular national political economy. The success of each nationally rooted innovation then forced change on its peers by example and by market pressure. What dynamic generated the innovations? We ask as well whether recent trends in inequality are a product of technology, trade, or politics?
The more radical approach states boldly that the present reconfiguration of rules for market and society will prove to be of the significance and scale of the enclosures. Issues, such as privacy and freedom of communication, will all be refought and redefined. In this vantage, the emerging network economy is not the historical equivalent of telegraph or telephone, which altered patterns of business and social communications; nor is it the equivalent of radio and television which generated national mass media; but rather more and other. Will nationally distinct approaches be possible?
At this point, please review the following:
- Frieden, Jeffrey "Invested Interests: The Politics of National Economic Policies in a World of Global Finance" in International Organization, 45:4, 1991, pp. 425-51.
- Schelling, Thomas C. The Strategy of Conflict (New York: Oxford Press 1960.) Ch. 6
- Berger, Suzanne Peasants Against Politics (Cambridge: Harvard University Press, 1972): Chapter 5.
- Smelser, Neil "The Rational and the Ambivalent in the Social Sciences." 1997 Presidential Address. (American Sociological Review, 1998 Vol. 63: February 1-16)
- The Network Economy and Network Politics
- DeLong Brad et al., "Tools for Thought: What is New and Important About the E-conomy" BRIE Working Paper #138 (Berkeley: BRIE, 2000).
- Bar, Francois et al., "Access and Innovation Policy for the Third-Generation Internet" Telecommunication Policy Volume 24, Nos. 6/7 (July/August 2000).
- Boyer, Robert, ‘The diversity of institutions governing the New Economy’, 2001.
- Bob Litan (SIMS)
- Gordon, Robert, ‘Does the ‘New Economy’ Measure Up to the Great Innovations of the Past’, Journal of Economic Perspectives. 2000. Get newer version (SIMS)
- Revolutions in Production
Borrus, Michael and John Zysman "‘Wintelism’ and the Changing Terms of Global Competition: Prototype of the Future?" BRIE Working Paper #96B (Berkeley: BRIE, 1997). And Appendix
- Zysman, John. Production in a Digital Era, Working Paper #147, 2002
- Some political implications:
- Cohen, Stephen "Social Capital and Capital Gains: Or, Virtual Bowling in Silicon Valley" Paper prepared for the OECD, August 1998.
- Putnam, Robert Making Democracy Work: Civic Traditions in Modern Italy (Princeton University Press, 1993): pp. 163-85.
Weeks XIII & XIV – November 21 and December 5 Global Regions, Nations, and Sub-National Politics
Happy Thanksgiving!
National stories must be embedded in a regional context. For example, the strategic fragmentation of Asia contributes to the political foundations for national development policies. Independent militaries require broad technological autonomy. Here we focus on Europe. The strategic logic here works differently. There are sets of connected questions. What drives EU Evolution? How are economic interests tied into the problem of governance? How are European choices related to national politics and policy? How will the proposed enlargement affect policy and governance?
1. Interests and Governance in the EU: The Single Market Program
Sandholtz, Wayne and John Zysman, ‘1992: Recasting the European Bargain', World Politics, 1989.
Moravscik, Andrew, ‘Negotiating the Single European Act’, International Organization, Volume 45, Issue 1 (Winter 1991), pp. 19-56.
Garrett, Geoffrey and Barry Weingast "Ideas, Interests and Institutions: Constructing the EC’s Internal Market" Prepared for presentation at the NBER Conference on Political Economics, November 15-16, 1991.
- Streeck, Wolfgang and Phillipe Schmitter "From National Corporatism to Transnational Pluralism: Organized Interests in the Single European Market" Politics & Society 19:2, June 1991.
- Enlargement
- Zysman, John and Andrew Schwartz "Enlarging Europe: The Industrial Foundations of a New Political Reality" Enlarging Europe: The Industrial Foundations of a New Political Reality (Berkeley: IAS Publications, 1998).
Those interested in Eastern Europe and EU expansion might also wish to examine:
- Fish, Steven ‘The Roots of Remedies for Russia’s Racket Economy’ The Tunnel at the End of the Light: Privatization, Business Networks and Economic Transformation in Russia (Berkeley: IAS Publications, 1998), also available at http://socrates.berkeley.edu/%7Ebriewww/courses/sc/cp221/fish.html
- Cohen, Stephen and Andrew Schwartz, The Tunnel at the End of the Light,(Regents of the University of California, 1998).
- Baldwin, Richard, Joseph Francois, and Richard Portes "EU Enlargement: Small Costs for the West, Big Gains for the East" Economic Policy April 1997.
3. Geo-Politics, Geo-Economics, and EU evolution
- Weber, Steve and John Zysman "Why The Changed Relation Between Security and Economy Will Alter the Character of the Europe Union" BRIE Working Paper #99 (Berkeley: BRIE, 1997).
- Huntington, Samuel "The Clash of Civilizations?: the Debate" with response by Fouad Ajami Foreign Affairs (New York, 1993).
Week XV – December 12 Strategies for Research Design: The Right Way is the Easy Way
Paper III. Choose an analytic problem in this section. Make an effort to set the problem up so that you could contribute substantively to the intellectual debate. For example, what national variation will remain in the face of global forces? Will domestic developments shape the response to international market developments?
Recommended readings, by week:
Weeks I & II
Highly Recommended:
Eichengreen, Barry and Albert Fishlow "Contending With Capital Flows: What is Different About the 1990s?" (A Council on Foreign Relations Paper, 1997).
- Maier, Charles "The Politics of Productivity: Foundations of American International Economic Policy in World War II" in Peter Katzenstein, ed. Between Power and Plenty (Madison: University of Wisconsin Press, 1977), pp. 23-49.
- Cassidy, John "Who Killed the Middle Class?" The New Yorker October 16, 1995,
113-124.
- Maier, Charles S. In Search of Stability: Explorations in Historical Political Economy (Cambridge University Press, 1987), Chapter 4.
Week III
Highly Recommended:
- Ruggie, J.G. "International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order" in Krasner, ed. International Regimes (Ithaca: Cornell UP, 1983).
- Hall, Peter "Central Bank Independence and Coordinated Wage Bargaining: Their Interaction in Germany and Europe" as published in German Politics & Society (1994).
Or Hall Chapters 1 & 10 in The Politics of State Intervention in Britain and France.
- Zysman, John and Eileen Doherty "The Evolving Role of the State in Asian Industrialization" BRIE Working Paper #84 (Berkeley: BRIE, 1995): Part II Section C.
Week IV
Highly Recommended:
- Frieden, Jeffrey Debt, Development and Democracy (Princeton University Press, 1991), Chapters 1 & 8.
- Frieden, Jeffrey and Ronald Rogowski "The Impact of the International Economy on National Policies: An analytical overview" (Paper prepared for the Project on Internationalization and Domestic Politics, Sept. 1994).
- Geddes, Barbara Politician’s Dilemma: Building State Capacity in Latin America (University of California Press, 1994), Chapter 1.
- Evans, Peter Embedded Autonomy: States and Industrial Transformation (Princeton University Press, 1995), Chapter 1.
Week V
Highly Recommended:
- Collier, Ruth "Labor and Democratization: Comparing the First and Third Waves in Europe and Latin America" IIR Working Paper #62 (Berkeley: Institute for Industrial Relations, 1995).
Recommended:
- Jessop, Bob "Towards a Schumpeterian Workfare State? Preliminary Remarks on Post-Fordist Political Economy" Studies in Political Economy V. 40, pp. 7-39.
- Kitschelt, Herbert The Transformation of European Social Democracy (Cambridge: Cambridge University Press, 2001).
- Inglehardt, Ron Modernization and Postmodernization (Princeton: Princeton University Press, 1997).
Weeks VI & VII
Highly Recommended:
- Ross, George and Jane Jenson "France: Triumph and Tragedy" in Perry Anderson and Patrick Camiller, eds. Mapping the West European Left (London: New Left Review, 1994).
- If you know nothing about Japanese politics, see also: Kesselman et al Comparative Politics at a Crossroads (DC Heath and Company, 1996), pp. 230-280.
Week VIII
Highly Recommended:
- Atkinson, Robert D. and Randolph H. Court The New Economy Index: Understanding America’s Economic Tranformation (The Progressive Policy Institute’s Technology, Innovation, and New Economy Project, November 1998), Section 1.
Note: Also available at: http://neweconomyindex.org/
- OECD The Economic and Social Impacts of Electronic Commerce (Brookings Institution Press/Inter-American Development Bank, 1999): Executive Summary.
- OECD A New Economy?: The Changing Role of Innovation and Information Technology in Growth (2000).
- David, Henry, et al. The Emerging Digital Economy II (U.S. Department of Commerce, 1999): Executive Summary.
Note: Also available at: http://www.ecommerce.gov
- U.S. Department of Commerce Digital Economy 2000 (June 2000).
Note: Also available at: http://www.esa.doc.gov/de2000.pdf
- Tyson, Laura and John Zysman "Developmental Strategy and Production Innovation in Japan" in Chalmers Johnson, Laura Tyson, and John Zysman, eds. Politics and Productivity (Ballinger, l988). [In reader Volume I, Week III.]
Recommended:
Note: These readings are all available at Main.
- Anderson, Jeffrey "Skeptical Reflections on a Europe of Regions: Britain, Germany, and the ERDF" Journal of Public Policy 10:4 (Oct.–Dec. 1990): pp. 417-447.
- Deeg, Richard "Germany’s Lander and the Federalization of the European Union" Paper presented at the American Political Science Association (New York, September 4, 1994).
- "Meet the Global Factory" The Economist (20 June 1998).
- Grabher, Gernot "Rediscovering the Social in the Economics of Interfirm Relations" in Grabher, ed. The Embedded Firm: On the Socioeconomics of Industrial Networks (London: Routledge, 1993).
- Kenney, Martin and James Curry "The Internet, New Firm Formation, and Enterprise Patterns" Paper prepared for the International Workshop on Business Venture Creation and New Human Resource Management Strategies in Japan, Europe and the U.S. (Tokyo, Japan, October 1998).
- Kitschelt, Herbert "Industrial Governance Structures, Innovation Strategies, and the Case of Japan: Sectoral or Cross-National Comparative Analysis?" International Organization 45:4 (Autumn 1991).
- Krugman, Paul "Regions and Nations" Geography and Trade (Cambridge: MIT Press, 1991): pp. 69-100.
- Locke, Richard Rebuilding the Italian Economy: Policy failure and Local Success (Cornell University Press, 1995) Selections.
- Sabel, Charles "Flexible Specialisation and the Re-emergence of Regional Economies" in P. Hirst and J. Zeitlin, eds. Reversing Industrial Decline? (Oxford/NY: Berg, 1989).
- Saxenian, AnnaLee Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge: Harvard University Press, 1994): Selections.
Weeks IX & X
Highly Recommended:
- Cohen, Stephen and Andrew Schwartz "Deeper into the Tunnel" The Tunnel at the End of the Light: Privatization, Business Networks and Economic Transformation in Russia (Berkeley: IAS Publications, 1998).
- Fish, M. Steven "The Roots of and Remedies for Russia’s Racket Economy" The Tunnel at the End of the Light: Privatization, Business Networks and Economic Transformation in Russia (Berkeley: IAS Publications, 1998).
- Sandholtz, Wayne et al., "Europe’s Emergence as a Global Protagonist" The Highest Stakes (New York: Oxford University Press, 1992).
Week XIII
Highly Recommended:
- Esping-Andersen, Gøsta "Equality and Work in the Postindustrial Life Cycle" October 1993.
- Iversen, Torben "Power, Flexibility and the Breakdown of Centralized Wage Bargaining: The Cases of Denmark and Sweden in Comparative Perspective" Unpublished paper, 1994.
- Collier, Ruth "Labor and Democratization: Comparing the First and Third Waves in Europe and Latin America" IIR Working Paper #62 (Berkeley: Institute for Industrial Relations, 1995). [In reader Volume I, Week V, Highly Recommended.]