1 INTRODUCTION:THE POLITICAL ECONOMY OF INTERNATIONAL AFFAIRS 1
Domestic Political Economy 3
International Political Economy 6
Approaches to International Political Economy 11
Notes 15
2 THE ECONOMICS OF INTERNATIONAL POLITICAL ECONOMY 17
Free Trade 18
The Balance of Payments 23
Monetary and Fiscal Policy 27
Monetary Policy 28
Fiscal Policy 30
Exchange Rates and Trade Deficits 30
How Exchange Rates Affect Trade 33
Exchange Rates,Trade,and Macroeconomic Policy 35
Conclusions 38
Notes 39
Annotated Bibliography 42
3 THE ORIGINS OF A WORLD ECONOMY 43
Industrialization and International Trade 44
British Industrialization 44
The Turn to Freer Trade 46
Repeal of the Corn Laws 46
The Expansion of the World Economy 47
The Perils of Interdependence:1873-1914 48
Transformation of the World Economy 48
British Hegemony? 52
Japan and Late Economic Development 55
The World Economy on the Eve of World War Ⅰ 57
World War I and Its Aftermath 58
The Economic Consequences of World War Ⅰ 59
A Failure of Political Vision 60
Collapse of the World Economy 61
Autarchy and Cooperation 62
Conclusions 63
Notes 64
Annotated Bibliography 69
4 THE POLITICAL ECONOMY OF AMERICAN HEGEMONY,1938-1973 71
Structures and Trends in the Postwar World Economy 72
Growth of the World Economy 72
International Institutions 74
U.S.Hegemony and the World Economy 76
Economic Consequences of World War Ⅱ 77
The United States and World Order 78
U.S.Purposes? 80
Power and Outcomes 81
The Consequences of U.S.Hegemony 82
The Heyday of U.S.Hegemony:1958-1970 82
The European Economic Community 83
Military Keynesianism and Foreign Aid 84
Dollar Glut 84
Political Economy and Hegemony 85
The Emergence of Multinational Corporations 86
Money and Oil,1971-1973 89
The End of Bretton Woods 90
Conclusions 95
Notes 96
Annotated Bibliography 100
5 GLOBALIZATION AND THE WORLD ECONOMY 102
The Globalization of Finance 103
Indicators of Financial Globalization 108
Explaining the Globalization of Finance 112
The Consequences of Financial Globalization 114
The Globalization of Production 116
Trade Globalization 116
Foreign Direct Investment 122
Sources of the Globalization of Production 124
Consequences of the Globalization of Production 126
Evaluating Globalization 130
Conclusions 137
Notes 139
Annotated Bibliography 145
6 COOPERATION AMONG ADVANCED INDUSTRIAL STATES 147
Theories of Cooperation 148
Why Nations Cooperate 149
Case Ⅰ：Macroeconomic Policy Cooperation 152
Case Ⅱ：Managing Exchange Rates 155
Managing Exchange Rates:1985-1987 157
Conclusions 159
Case Ⅲ：The Uruguay Round and the World Trade Organization 161
Case Ⅳ：Economic Blocs 165
Globalization or Regionalization? 165
The European Union 166
Organization of the European Union 168
Economic and Monetary Union(EMU) 170
The Maastricht Agreement 171
Conclusions 178
A North American Trade Bloc? 179
An East Asian Trade Bloc? 182
Economic Blocs and the Future of the World Economy 184
Conclusions 185
Notes 186
Annotated Bibliography 190
7 COMPETITION AND CONFLICT AMONG ADVANCED INDUSTRIAL STATES 192
Strategies of Competitiveness 196
The Rise and Decline(?)of Japan 198
The Strategy of Growth 198
Explanations for Japanese Growth and Weakness 202
Future Prospects 210
The United States and Competitiveness 211
Macroeconomic Measures of Competitiveness 212
Competition in Chips 217
Silicon Valley 220
European Approaches to Competitiveness 222
Protectionism 226
Protectionism without Tariffs 226
Why Do Nations Choose Protection? 229
Conclusions 230
Notes 231
Annotated Bibliography 237
8 RICH AND POOR STATES IN THE WORLD ECONOMY 239
Indicators of Development 240
Measuring the Development Gap 245
Contending Perspectives on Development 248
Modernization Theory 249
Dependency Theory 252
Conclusions 259
Notes 260
Annotated Bibliography 263
9 STRATEGIES OF SOUTHERN TRADE AND DEVELOPMENT 265
National Strategies of Trade and Industrialization 265
Transitions to Export-Led Industrialization:Three Country Studies 274
China 275
India 279
Brazil 281
The Least Developed Countries 283
Collective Strategies of Development 285
Global and Regional Trade Agreements 295
The World Trade Organization 295
Regional Free Trade Agreements 297
Conclusions 301
Notes 303
Annotated Bibliography 310
10 FOREIGN AID AND THIRD WORLD DEVELOPMENT 313
The Rationale for Aid 316
Strategies of Foreign Assistance 316
The Effectiveness of Aid 321
Poverty and the Misallocation of Aid 321
The Ironies of Food Aid 323
Growth versus the Environment 326
The Overreliance on Outside Experts 328
The Costs of Tied Aid 329
The preference for Bigness 330
Receipient Country Corruption 331
Learning from Failure 332
The Future of Foreign Aid 335
Conclusions 336
Notes 338
Annotated Bibliography 345
11 MULTINATIONAL CORPORATIONS IN THE THIRD WORLD 347
Motives for Foreign Direct Investment in the Third World 349
The Benefits of Foreign Direct Investment to Third World Host Countries 350
Capital 350
Technology 351
Management Expertise 351
Marketing Networks 351
The Costs of Foreign Direct Investment to Third World Host Countries 532
A Bargaining Framework for Analyzing MNC-Host Country Relations 354
Regulating MNC Behavior 354
The Determinants of Relative Bargaining Power 356
Characteristics of the Host Country 357
Characteristics of the Investment 358
Changes in the International Economic Environment 359
Recent Trends in MNC-Host Country Relations 361
MNCS and NGOS 365
Conclusions 367
Notes 368
Annotated Bibliography 372
12 THIRD WORLD DEBT AND NORTH-SOUTH FINANCE 373
The Costs of Third World Debt 374
Actors 375
The Origins and Evolution of the Third World Debt Crisis 377
The Misplaced Optimism of the 1970s 378
The Bottom Falls Out:The Fickleness of the World Economy 380
Southern Mismanagement and Capital Flight 381
The World Holds Its Breath:The Mexican Crisis 382
The IMF Takes Charge 384
Inching toward the Inevitable:The Brady Plan 385
The Heavily Indebted Poor Countries Initiative 387
The Politics of Third World Debt 388
Why Not Repudiation? 388
Bargaining Power and the Debt:Southern Disunity and Northern Unity 389
North-South Finance in the 1990s:The Growth of Portfolio Investment 394
The Global Financial Crisis of 1997-1998 398
Reform of the International Financial System 407
Conclusions 410
Notes 411
Annotated Bibliography 418
13 HUNGER,POPULATION,AND SUSTAINABLE DEVELOPMENT 419
Population 420
The Aids Pandemic 425
Food and Hunger 426
Sustainable Development 434
Atmospheric Pollution and the Tragedy of the Commons 437
Ozone Depletion 438
Global Warming 440
Comparison of the Ozone and Climate Change Negotiations 443
Conclusions 444
Notes 445
Annotated Bibliography 449
14 CHARTING THE FUTURE:COOPERATION AND CONFLICT IN THE GLOBAL ECONOMY 450
Harbingers of Cooperation 452
The Fruits of Interdependence 452
International Institutions 453
Internationalist Interest Groups 454
The Neoliberal Convergence 454
The Sources of Conflict 455
National Autonomy and Relative Gains 455
The Changing Nature of U.S.Hegemony 456
Complexity and International Cooperation 457
The Anti-Globalization Movement 457
Conclusions 459
Glossary 461
Acronyms 470
Links to IPE Web Sites 472
Index 479