International Economics
Spring Semester 2011-2012

Martin Hart-Landsberg
Office: Howard Hall, 325
Phone: 503-768-7624
Email: marty@lclark.edu

Required Books:
Developing Countries and World Trade, Yilmaz Akyuz (ed.)
Bad Samaritans, The Myth of Free Trade and the Secret History of Capitalism, Ha-Joon Chang

Readings (* means extra on webdisk; [R] means on reserve):

I. Introduction -- January 17

1. Aaron Bernstein, “Shaking Up Trade Theory,” Business Week, December 6, 2004.

2. Pete Engardio and Dexter Roberts with Brian Bremner in Beijing and bureau reports, “The China Price,” Business Week, December 6, 2004.

3. Randall W. Forsyth, “The Beginning of the End of Dollar Hegemony,” Barron's, December 17, 2010.

II. Bretton Woods: Construction, Collapse, Reconstruction (?) -- January 19-February 2

1. Fred Block, “Bretton Woods and the British Loan,” in The Origins of International Economic Disorder. [R] 

2. Susan George, "The World Trade Organisation We Could Have Had," Le Monde Diplomatique, January 2007.

3. Fred Block, “The Roots of the U.S. Deficit,” in The Origins of International Economic Disorder. [R]

4. Fred Block, “Managing the U.S. Deficit,” in The Origins of International Economic Disorder. [R]

5. UNCTAD, Chapter IV (“Payments Deficits, Liberalization and Growth in Developing Countries”) and Chapter V (“Capital Flows to Developing Countries”) in the Trade and Development Report 1999.

6. UNCTAD, Chapter IV ("Economic Growth and Capital Accumulation") in the Trade and Development Report 2003.

7. Barry Eichengreen, Chapter 5 (“After Bretton Woods”) in Globalizing Capital, Princeton University Press. [R]

8. Barry Eichengreen, Chapter 6 (“A Brave New Monetary World”) in Globalizing Capital, Princeton University Press. [R]

9. *Robert Wade, “The Great Slump: What Comes Next?Economic and Political Weekly, November 2010.

10. Stephen C. Webster, “World Bank President Calls for Debate on Global Gold Standard,” The Raw Story, November 8, 2010.

III. Contemporary Challenges: The U.S. and The World Economy -- February 7-21

1. Business Week, "Can Anyone Steer This Economy," November 20, 2006.

2. Robert Blecker, "The Trade Deficit and U.S. Competitiveness," in U.S. Trade Policy and Global Growth. [R]

3. Wynne Godley, The U.S. Economy: A Changing Strategic Predicament Levy Economics Institute, March 2003.

4. Dimitiri B. Papadimitriou, Greg Hannsgen, and Gennaro Zezza, Jobless Recovery Is No Recovery For the US Economy, Levy Economics Institute, March 2011.

5. Dimitiri B. Papadimitriou, Greg Hannsgen, and Gennaro Zezza, Is the Recovery Sustainable?, Levy Economics Institute, December 2011.

6. Martin Hart-Landsberg, “The U.S. Economy and China: Capitalism, Class and Crisis,” Monthly Review, February 2010.

7. Michael Spence and Sandile Hlatshwayo, “The Evolving Structure of the American Economy and the Employment Challenge,” Council on Foreign Relations, March 2011.

8. *Alan S. Blinder, "Offshoring: The Next Industrial Revolution?," Foreign Affairs, March-April 2006.

9. David Wessel and Bob Davis, "Pain From Free Trade Spurs Second Thoughts, Mr. Blinder's Shift Spotlights Warnings Of Deeper Downside," Wall Street Journal, March 28, 2007. [R]

10. Robert Pollin, "Global Outsourcing and the US Working Class," New Labor Forum, Winter 2007.

11. Michael Mandel, "Can Obama keep new jobs at home," Business Week, December 8, 2008.

12. David Gordon, “Do We Need to be No. 1?” Atlantic Monthly, April 1986. [R]

13. Michael Pettis, “Is It Time For The U.S. to Disengage the World From The Dollar?Naked Capitalism, May 2, 2011.

IV. Europe At The Crossroads -- February 23-March 6

1. C. Lapavitsas, A. Kaltenbrunner, D. Lindo, J. Michell, J.P. Painceira, E. Pires, J. Powell, A. Stenfors, N. Teles, Eurozone Crisis: Beggar Thyself and Thy Neighbor, Occasional Report, Research on Money and Finance, March 2010.

2. Gustav A. Horn, Torsten Niechoj, Silke Tober, Till van Treeck, Achim Truger, Reforming the European Stability and Growth Pact: Public Debt is Not the Only Factor, Private Debt Counts as Well, IMK Report, July 2010.

3. G.E. Krimpas, The Recycling Problem In A Currency Union, Levy Economics Institute, May 2010.

4. Michael Burke, “EU Summit Is Another Failure for‘Austerity’,” Irish Left Review, December 13, 2011.

5. Martin Hart-Landsberg, "European Nightmare," Reports From The Economic Front, December 11, 2011.

6.Thomas I. Palley, “Euro lacks a government banker, not lender of last resort,” Economists’ Forum, Financial Times, December 9, 2011.

7. Michel Husson, “A European Strategy For The Left?International Viewpoint, January 2011.

8. Costas Lapavitsas, “A Left Strategy For Europe,” International Viewpoint, April 2011.

V. Theory and Reality of Free Trade -- March 8-20

1.Stephen Hymer, "Robinson Crusoe and the Secret of Primative Accumulation," Monthly Review, Vol 63, No 4, (September 2011).

2. Martin Hart-Landsberg, "Neoliberalism: Myths and Reality,” Monthly Review, Vol 57, No 11 (April 2006).

3. Anwar Shaikh, “The Economic Mythology of Neoliberalism,” in Alfredo Saad-Filho (ed), Neoliberalism: A Critical Reader, 2004.

4. *Peter Dorman, The Free Trade Magic Act, Economic Policy Institute, Briefing Paper, 2001.

5. Mark Weisbrot and Dean Baker, The Relative Impact of Trade Liberalization on Developing Countries, Center for Economic Policy and Research, June 2002.

6. *Mark Weisbrot, David Rosnick, and Dean Baker, Poor Numbers: T he Impact of Trade Liberalization on World Poverty, Center for Economic Policy and Research, November 2004.

7. Kevin P. Gallagher and Timothy A. Wise, "Back to the Drawing Board: No Basis for Concluding the Doha Round of Negotiations," RIS Policy Briefs, April 2008.

8. *Eyes on Trade, Benefits from WTO Doha Round are a MIRAGE, November 11, 2011.

9. *Jim Stanford, Out of Equilibrium: The Impact of Canada-European Union Free Trade in the Real World, 2011.

10. Dean Baker, "Trade and Inequality: The Role of Economists," Center for Economic Policy and Research, January 2008.

11. Ha-Joon Chang , Bad Samarians.

VI. Dynamics of Globalization -- March 22-April 17

1. Yilmaz Akyuz (ed.), Developing Countries and World Trade.

2. *UNCTAD, Chapter IV (“Towards a New Form of Global Integration”) in Trade and Development Report 2005.

3. Yilmaz Akyüz, “Export Dependence and Sustainability of Growth in China and the East Asian Production Network,” Research Paper 27, South Center, April 2010.

4. Eduardo Zepeda, Timothy A. Wise, and Kevin P. Gallagher, Rethinking Trade Policy for Development: Lessons From Mexico Under NAFTA, Policy Outlook, The Carnegie Endowment, December 2009.

5. Jose Gabriel Palma, “Why Has Productivity Growth Stagnated in Most Latin American Countries Since the Neo-liberal Reforms?Cambridge Working Papers in Economics, 2010.

6. Kevin P. Gallagher and Lyuba Zarsky, Sustainable Industrial Development? The Performance of Mexico 's FDI-led Integration Strategy, Global Development and Environment Institute at Tufts University , February 2004.

7. Jerry Epstein, “Employment-oriented Macro Policy and the Challenge of Outsourcing,” Conference paper prepared for The New Global Division of Labor: Winners and Losers from Offshore Outsourcing, March 3-4, 2006.

8. Léonce Ndikumana and James K. Boyce, “New Estimates of Capital Flight from Sub-Saharan African Countries: Linkages with External Borrowing and Policy Options," Political Economy Research Institute, University of Massachusetts, April 2008.

9. Kevin Gallagher, “Regaining Control? Capital Controls and the Global Financial Crisis,” Political Economy Research Institute, University of Massachusetts, February 23, 2011.

VII. Structures and Struggles -- April 19-26

1. Richard Peat, Unholy Trinity, The IMF, World Bank and WTO, Chapter 5 (“The World Trade Organization”). [R]

2. Council of Canadians and Polaris Institute, Making the Links: A Peoples' Guide to the WTO and the FTAA.

3. Sarah Anderson and Sara Grusky, Challenging Corporate Investor Rule How the World Bank’s Investment Court, Free Trade Agreements, and Bilateral Investment Treaties have Unleashed a New Era of Corporate Power and What to Do About It, Institute for Policy Studies, April 2007.

4. *Martin Hart-Landsberg, “Capitalism, The Korea-U.S. Free Trade Agreement, and Resistance,” Critical Asian Studies, Vol 43, No 3 (2011).

6. Martin Hart-Landsberg, “ALBA and Cooperative Development: Lessons from the European Payments Union,” Marxism 21, Fall 2010.

SELECTED WEB SITES:

Data Sources
USA.gov
World Bank
PACIFIC Exchange Rate Service
International Statistical Agencies
WTO Trade Statistics


Global Developments
Focus on the Global South
Public Citizen Global Trade Watch
Third World Network

Labor
LabourStart
International Labor Rights Fund

Corporations
Corporate Watch

Research
International Development Economics Associates
The South Center
Investment Treaty News
Center for Economic Policy and Research
Dani Rodrik’s Home Page
Political Economy Research Institute

Blogs
Rethinking Finance
Triple Crisis
Eyes on Trade
International Economic Law and Policy Blog

GRADING:
Accommodations: If you have a disability that may impact your academic performance, you should request accommodations by submitting documentation to the Student Support Services Office located in Albany 206 (503-768-7156).  Once that office notifies me of the accommodations for which you are eligible we can meet to decide how best to proceed.  You should begin this process as soon as possible.

Academic Integrity: According to the Lewis & Clark College 's Academic Integrity Policy:

Acts of academic dishonesty involve the use or attempted use of any method or technique enabling a student to misrepresent the quality or integrity of his or her academic work. Academic dishonesty with respect to examinations includes but is not limited to copying from the work of another, allowing another student to copy from one's own work, using crib notes, arranging for another person to substitute in taking an examination, or giving or receiving unauthorized information prior to or during the examination. Academic dishonesty with respect to written or other types of assignments includes but is not limited to: failure to acknowledge the ideas or words of another that have consciously been taken from a source, published or unpublished; placing one's name on papers, reports, or other documents that are the work of another individual, whether published or unpublished; flagrant misuse of the assistance provided by another in the process of completing academic work; submission of the same paper or project for separate courses without prior authorization by faculty members; fabrication or alteration of data; or knowingly facilitating the academic dishonesty of another.

Please be aware, the penalties for violating this policy are severe. Ignorance is no excuse.

Your final grade in international economics will be based on the following three factors:

1. Your attendance and participation (15%).  Attendance is required; missed classes will lower your grade.  Required readings must be completed before the class session for which they are assigned.  You are expected to contribute to class discussion.

2. The quality of your notebook writings (20%).  You will be required to do a series of short writing assignments (normally from one to five pages each) that must be kept in a separate notebook.  Some writings may take place in class. Some may be shared with other students. Late assignments will be penalized with a reduced grade.  While individual assignments may be checked and graded at the time they are turned in, your complete notebook of assignments will be turned in the last day of class and will receive an overall grade.

3. The quality of your in-class midterm (35%) and take-home final (30%).