Introduction To International Political Economy Seventh .

Introductionto InternationalPoliticalEconomySeventh EditionDavidN. BalaamUniversity of Puget SoundUniversity of WashingtonBradfordDillmanUniversity of Puget SoundÖ Routledgeg % Taylor &Francis CroupNEW YORK AND LONDON

DETAILEDPrefaceCONTENTSxviiAcknowledgmentsPART IxxiiPerspectives on International Political EconomyCHARTER 1What is International Political Economy?Is the Postwar World Order Over?23The Field of International Political Economy4The Growing Influence of Factors Inside the StateBox 1.1 The Burkini:To Wear or Not to Wear?Questions to Consider131820Conclusion: Standing on the Precipice20Key Terms 22Discussion Questions22Suggested Readings 23Notes23CHARTER 2Laissez-Faire:The Economic Liberal PerspectiveRoots of the Economic Liberal Perspective26The Transformation of Liberal Ideas and PoliciesBox 2.1 Britain's Com Laws253031John Stuart Mill and the Evolution of the Liberal Perspective 32John Maynard Keynes and the Great DepressionThe Rise of NeoliberalismGlobalization333638Questioning Neoliberalism and Globalization in the 1990s and 2000s 39The Global Financial Crisis: A Stake in the Heart or Just a Scratch?Box 2.2 Ordoliberalism and the Social Market Economy4144ix

XDETAILED CONTENTSConclusionKey Terms4546Discussion Questions46Suggested Readings 46Notes 47CHARTER 3Wealth and Power: The Mercantilist PerspectiveMercantilism as Historyand Philosophy4951The Entrenchment of Neomercantilism in the 1970s and 1980sNeoliberalism, Neomercantilism, and the Globalization CampaignInsecurity in a Wired World565960Industrial, Infrastructural, and Strategie Resources Policies in Developed Countries 61Box 3.1 United States-ChinaTensions over Industrial PolicyBox 3.2 The Struggle over Rare EarthsConclusion636567Key Terms 68Discussion Questions68Suggested Readings 68Notes 69CHARTER 4Economic Determinism and Exploitation:The Structuralist PerspectiveFeudalism, Capitalism, Socialism —Marx'sTheory of HistorySome Specific Contributions of Marx to Structuralism75Box 4.1 Antonio Gramsci and Intellectual Hegemony 79Lenin and International Capitalism80Imperialism and Global World Orders 81Trends in Contemporary Capitalism84Box 4.2 The Transnational Capitalist Class 85Inequality and the Financial Crisis 87Conclusion: Structuralism in PerspectiveKey Terms 93Discussion Questions 93927371

DETAILED CONTENTSXISuggested Readings 94N otes 94CHARTER 5Constructivism97Key Ideas in Constructivism98Box 5.1 Framing Climate Change 101Dynamics of Norms 104Constructivist Views on Conflict, Cooperation, and Security111Box 5.2 U.S. Worldviews of China 113Economic Ideas in Constructivist IRE115Box 5.3 Constructivist Views of Measures and Indicators 117Conclusion 120Key Terms 121Discussion Questions 121Suggested Readings 121Notes 121PART IIStructures of International Poiitical EconomyCHARTER 6The Global Production Structure126Global Production 127Box 6.1 Security Implications of Shifts in Production of Semiconductors 131Large Transnational Corporations and Competition133G overnance of T N Cs 136Box 6.2 Accountability in Global Value Chains 138Reiations Between States andTNCs 141TNCs Out of (State) Control?143Box 6.3 International Tax Scandals 146The Effects of TNCs and Automation on Workers 149The Changing Production Structure: Emerging Economies and Sovereign Wealth Funds 152Conclusion 154

xiiDETAILED CONTENTSKey Terms 155Discussion Questions 155Suggested Readings 155Notes 155CHARTER 7The International Trade Structure159Perspectives on International Trade 162Box 7.1 The Solar Panels Trade Dispute: Green Protectionism in the United States?GATT and the Liberal Postwar Trade Structure 170Trade Liberalization Outside the WTOThe Risks of Trade Liberalization177182Box 7.2 The Effects of Trade Shocks in the United States 184Conclusion:The International Trade Structure at a Crossroads186Key Terms 188Discussion Questions 188Suggested Readings 188Notes 189CHARTER 8The International Finance and Monetary Structure192Box 8.1 Chronology of Money and Finance Events 194Gurrendes and Foreign Exchange: The Basics 195Three Foreign Exchange Rate Systems197Box 8.2 The Balance of Payments 199The Roaring Nineties: Globalization and Financial CrisesThe Global Financial Crisis of 2007: The Bubble BurstsStructure ManagementConclusion213217Key Terms 218Discussion QuestionsSuggested ReadingsNotes 219218218203206164

DETAIL ED CONTENTSCHARTER 9The Global Security Structure221Classical Realists and Neorealists223Box 9.1 The Postwar Chronology224The Three Phases of the Postwar Security Structure226George W. Bush: American Unipolarity and Neoconservatives 230Barack Obama:Turning Again to MultilateralismBox 9.2 Cyber Weapons232Box 9.3 Chronology of War in the Middle EastEnter Donald Trump235238Seven Security Issues to Watch240Conclusion: Getting to Peace and StabilityKey Terms231247248Discussion Questions248Suggested Readings 249Notes249CHARTER 10The International Knowledge Structure: Controlling Flows of Informationand Technology 252The International Knowledge Structure: Actors and RulesThe IPEof Information253254Box 10.1 WikiLeaks 255The IPE of Innovation and Technology AdvancementBox 10.2 The Effects of Financialization on InnovationThe IPE of Intellectual Property RightsConclusion276Key Terms277Discussion Questions278Suggested Readings278Notes278267259262xiii

XivDETAILED CONTENTSPART IIIStates and Markets in the Global EconomyCHARTER 11The Development Challenge282What Are Developing Nations?283LDCs from Independence to the Washington Consensus284Box 11.1 Alternative Ways of Measuring Poverty in Developing Countries 285Howto Develop? The Classic IPE Development StrategiesThe East Asian Miracle and the Asian Financial CrisisDevelopment and Globalization292294Box 11.2 Alternative Ways of Measuring Social Well-BeingConclusion288298307Key Terms 308Discussion Questions 308Suggested Readings 309Notes 309CHARTER 12The Fragmentation of the European Union: The Crossroads ReduxThe Community Building Project: A Complicated History 313Box 12.1 Chronology of the European Communities/European UnionBox 12.2 EU Political Institutions 321The Financial Crises in the EUThe Long Greek Crisis324328The EU Immigration Crisis 331Box 12.3 Child Migrants in EuropeBrexit: A Gry of Anger332335Conclusion: The Way Forward or Back?Key Terms 339Discussion Questions340Suggested Readings 340Notes 340339315312

CHARTER 13Moving into Position: The Rising PowersThe Emergence of the BRICS343345Transitions in Russia 346BrazihThe Costs of Success350India: The Other Asian Tiger354Box 13.1 Brazil's Operation Car Wash Corruption ScandalChina in Transition: An Analysis of ContradictionsBox 13.2 Will China Rule the World?355360365Conclusion 370Key Terms 370Discussion Questions371Suggested Readings 371Notes 371CHARTER 14The Middle East and North Africa:Things Fall ApartAn Overview of the Middle East and North AfricaThe Middle East's Historical Legacy377Regional Dynamics After the Arab SpringThe Roots of ConflictThe Arab Winter376382385390Integration into the Global Economy393Box 14.1 Dubai:The Las Vegas of Arabia 395Falling Behind in the Global Economy 399Box 14.2 International Education and the Middle EastConclusion 402Key Terms 403Discussion Questions403Suggested Readings 403Notes 403400375

XVIDETAILED CONTENTSPART IVTransnational Problems and DilemmasCHARTER 15The Illicit Global Economy: The Dark Side of GlobalizationThe Illicit Economy in Historical PerspectiveThe Stakes and the Actors410411Studying the Illicit Economy: Key RindingsBox 15.1 De Beers and Blood Diamonds413414Gase Studies in the Illicit Global Economy421Box 15.2 Gibson Guitar and the Lacey Act425Box 15.3 Trafficking in African Elephant IvoryConclusionKey Terms408427432433Discussion Questions433Suggested Readings 433Notes 433CHARTER 16Energy and the Environment: Navigating Climate Change and Global Disaster436Organization and Theses 437Actors and Concepts437Energy and Environmental Trajectories: A Bit of History440Box 16.1 Chronology of Significant Energy and Environment Events and Agreements441Stuck in Transition in the 2000s:The Energy Boom, Volatile Markets, and Disputed FactsPopulism and Discord Under Trump454Box 16.2 Energy in Africa, and China's Involvement 457Conclusion: Peeking Over the PrecipiceKey Terms 460Discussion QuestionsSuggested ReadingsNotes 460460460459446

DETAILED CONTENTSCHARTER 17Global Health: Refugees and Caring for the ForgottenThe Forgotten464466Box 17.1 The CaregiversReimagining Global Health468469Regional Cases of Displacement: Where to Go?Box 17.2 War Crimes in Syria472474Health Gare Solutions for Refugees and Other Displaced PeopleConclusion488Key Terms 489Discussion Questions489Suggested Readings (and Documentary)Notes489GlossaryIndexG-l1-1489481XVÜ

Introduction to International Political Economy Seventh Edition David N. Balaam University of Puget Sound University of Washington Bradford Dillman University of Puget Sound Ö Rou