Global Political Economy » (5th Edition)

Theodore H. Cohn is Professor Emeritus of Political Science at Simon Fraser University.

Praised for its authoritative coverage, Global Political Economy places the study of IPE in its broadest theoretical context. This text not only helps students understand the fundamentals of how the global economy works but also encourages them to use theory to more fully grasp the connections between key issue areas like trade and development. Written by a leading IPE scholar, Global Political Economy equally emphasizes theory and practice to provide a framework for analyzing current events and long-term developments in the global economy.

Preface xi

Acronyms and Abbreviations xvii

Part 1 Introduction and Overview 1

Chapter 1 Introduction 2

What is International Political Economy? 2

The IPE Theoretical Perspectives 4

Purposes and Themes of this Book 5

Focus of this Book 11

Questions 13

Further Reading 13

Notes 14

Chapter 2 Managing the Global Economy Since World War II: The Institutional Framework 17

Global Economic Relations Before World War II 18

The Functions of the IMF, World Bank, and GATT 22

International Economic Organizations and the United Nations 23

Postwar Economic Institutions and the North 23

Postwar Economic Institutions and the South 31

Postwar Economic Institutions and the Centrally Planned Economies 38

Nonstate Actors 42

Conclusion 43

Questions 44

Further Reading 45

Notes 45

Part 2 Theoretical Perspectives 51

Chapter 3 The Realist Perspective 55

Basic Tenets of the Realist Perspective 56

The Mercantilists 58

Realism and the Industrial Revolution 58

Realism in the Interwar Period 59

Realism after World War II 60

The Revival of Realist IPE 60

Hegemonic Stability Theory and Debates over U.S. Hegemony 61

Realism and North-South Relations 68

Critique of the Realist Perspective 69

Questions 70

Further Reading 71

Notes 71

Chapter 4 The Liberal Perspective 77

Basic Tenets of the Liberal Perspective 77

Orthodox Liberalism 80

The Influence of John Maynard Keynes 81

Liberalism in the Postwar Period 82

A Return to Orthodox Liberalism 82

Liberalism and Institutions 84

Liberalism, Global Governance, and Regimes 89

Liberalism and Domestic-International Interactions 90

Liberalism and North-South Relations 92

Critique of theLiberal Perspective 94

Questions 96

Further Reading 96

Notes 97

Chapter 5 Critical Perspectives 103

Basic Tenets of Historical Materialism 103

Early Forms of Historical Materialism 106

Whither the Historical Materialist Perspective? 110

Constructivism 114

Feminism 116

Environmentalism 118

Critique of the Critical Perspective 121

Questions 123

Further Reading 123

Notes 124

Part 3 The Issue Areas 130

Chapter 6 International Monetary Relations 131

The Balance of Payments 132

Government Response to a Balance-of-Payments Deficit 134

The Functions and Valuation of Money 138

International Monetary Relations Before Bretton Woods 138

The Formation of the Bretton Woods Monetary Regime 140

The International Monetary Fund 141

The Functioning of the Bretton Woods Monetary Regime 142

The Regime of Floating (or Flexible) Exchange Rates 148

Alternatives to the Current Monetary Regime 150

European Monetary Relations 151

What is the Likely Future of the U.S. Dollar as the Key Currency? 153

Sovereign Wealth Funds 157

Considering IPE Theory and Practice 158

Questions 160

Further Reading 161

Notes 162

Chapter 7 Global Trade Relations 167

Trade Theory 168

Global Trade Relations Before World War II 172

GATT and the Postwar Global Trade Regime 173

Principles of the Global Trade Regime 174

Formation of the WTO 180

The WTO and the Global Trade Regime 184

The South and Global Trade Issues 185

The Transition Economies and Global Trade Relations 190

Civil Society and Global Trade Relations 195

Trade and the Environment 196

Considering IPE Theory and Practice 199

Questions 201

Further Reading 201

Notes 202

Chapter 8 Regionalism and the Global Trade Regime 209

Regionalism and the IPE Theoretical Perspectives 211

Regionalism and Globalization 212

A Historical Overview of RTAs 213

Explanations for the Rise of Regional Integration 214

The GATT/WTO and RTAs 218

The European Union 222

The North American Free Trade Agreement 229

Mercosur 234

East Asian Regionalism 236

Considering IPE Theory and Practice 239

Questions 241

Further Reading 242

Notes 242

Chapter 9 Multinational Corporations and Global Production 250

Definitions and Terminology 251

Why do Firms Become MNCs? 252

The Historical Development of FDI 254

MNC-Host Country Relations: Determinants and Effects of FDI 262

Host Country Policies Toward MNCs 265

MNC-Home Country Relations 269

A Regime for FDI: What is to be Regulated? 276

Bilateral Investment Treaties 277

United Nations 278

Regional Approaches: The EU and NAFTA 279

The GATT/WTO to the OECD and Back to the WTO 281

Private Actors 283

Considering IPE Theory and Practice 284

Questions 287

Further Reading 287

Notes 288

Chapter 10 International Development 296

IPE Perspectives and North-South Relations 298

Official Development Assistance 299

The World Bank Group 303

LDC Development Strategies 308

Import Substitution Industrialization 309

Socialist Development Strategies 312

Export-Led Growth 313

The Revival of Orthodox Liberalism 319

Another Shift in Development Strategy? 324

Considering IPE Theory and Practice 330

Questions 332

Further Reading 333

Notes 334

Chapter 11 Foreign Debt and Financial Crises 341

What is a Debt Crisis? 341

The Origins of the 1980s Debt Crisis 343

The Foreign Debt Regime 348

Strategies to Deal with the 1980s Debt Crisis 355

Transition Economies and Foreign Debt 363

The IMF, World Bank, and the Debt Crisis 365

The 1990s Financial Crisis 367

The Global Financial Crisis-2008 to? 371

Considering IPE Theory and Practice 373

Questions 375

Further Reading 375

Notes 376

Part 4 Concluding Comments 382

Chapter 12 Current Trends in the Global Political Economy 383

Globalization 383

North-North Relations 394

North-South Relations 400

A Final Word on IPE Theory and Practice 404

Notes 405

Glossary 409

Index 419