4 realism.pptx Relative vs Absolute Gains U.S. Growth Chinese Growth #1 5% 10% #2 3% 5% 1 Realism Zero-Sum Game Economics → Military Military → Economics System protection, neocolonialism State level – Rational, unitary, self-interested Competition GDP over individuals Redistribution of wealth (among states) over creation IOs and Hegemon Outcome/arena for power relationships State not weakening 2 List/Hamilton Not against Trade, per se List was against agricultural protection Free Trade is beneficial if one has economic supremacy Corn Laws to make U.S. an agricultural component of Britain Historically U.S. was protectionist Goal of Hegemon Coercive Hegemon Interested in Relative Gains National Interest more important than public good How will China react to U.S. hegemony? 3 Is the US in decline? Rise of BRICs = Relative Decline LDC mercantilist policies Government involvement Collective Action (e.g. G-77) Alter System – New International Economic Order Developmental State State interaction in the market to promote development Globalization/liberalism are not beyond control of the state 4 2 post-wwii systems.pptx Post-WWII U.S. and Briton devise system at Bretton Woods Keynes and White—Lessons Learned: Governmental role necessary Moderation of Cycles Regulation State-Centric Relatively egalitarian Fear of Communism Economic problems = Political Problems 1 Embedded Liberalism Embed the Market back into Society State Intervention Focus on Unemployment and Poverty Regulation, not Laissez-Faire Relatively Demand Driven Free Trade and the Market Moderated Capitalism State-Based Trade, little Internationalization of Production Reduced Finance 2 Bretton Woods '45-'71 Fixed Exchange rate U.S. Fixed to Gold Europe Fixed to Dollar Negotiated Exchange Rates Strong Stability Done by Central Banks; Requires: Dollars Marshall Plan Capital Controls 3 IMF International Monetary Fund Financial and Monetary Originally designed to facilitate Bretton Woods System (Fixing/Pegging to Dollar) Supply of Dollars Today: Maintain Exchange Rate Avoid Financial Crises Washington Consensus* Headed By European 4 World Bank International Bank for Reconstruction and Development Provide Loans to Rebuild Europe Provide Loans to LDCs Washington Consensus Headed by an American 5 GATT 1947 General Agreement on Tariffs and Trade Failed attempt at International Trade Organization Temporary agreements on Trade No enforceable body State-Centric Trade Focus on reducing Tariffs U.S. Reluctantly allowed Sterling Area 23 States attended (159 Today) 6 Problems in the Golden Age (~'70s) Relative Decline of US Growth of German and Japanese Competition Eurodollar Market Decolonization NIEs (Newly Industrialized Economies) Group of 77 Stagflation Stagnation and Inflation Failure of keynesi ...

1. 4 realism.pptx
Relative vs Absolute Gains
U.S. Growth Chinese Growth
#1 5% 10%
#2 3% 5%
1
Realism
Zero-Sum Game
Economics → Military
Military → Economics
System protection, neocolonialism
State level – Rational, unitary, self-interested
Competition
GDP over individuals
Redistribution of wealth (among states) over creation
IOs and Hegemon
Outcome/arena for power relationships
State not weakening
2
List/Hamilton
Not against Trade, per se
List was against agricultural protection

2. Free Trade is beneficial if one has economic supremacy
Corn Laws to make U.S. an agricultural component of Britain
Historically U.S. was protectionist
Goal of Hegemon
Coercive Hegemon
Interested in Relative Gains
National Interest more important than public good
How will China react to U.S. hegemony?
3
Is the US in decline?
Rise of BRICs = Relative Decline
LDC mercantilist policies
Government involvement
Collective Action (e.g. G-77)
Alter System – New International Economic Order
Developmental State
State interaction in the market to promote development
Globalization/liberalism are not beyond control of the state
4
2 post-wwii systems.pptx
Post-WWII
U.S. and Briton devise system at Bretton Woods
Keynes and White—Lessons Learned:
Governmental role necessary
Moderation of Cycles
Regulation

3. State-Centric
Relatively egalitarian
Fear of Communism
Economic problems = Political Problems
1
Embedded Liberalism
Embed the Market back into Society
State Intervention
Focus on Unemployment and Poverty
Regulation, not Laissez-Faire
Relatively Demand Driven
Free Trade and the Market
Moderated Capitalism
State-Based Trade, little Internationalization of Production
Reduced Finance
2

4. Bretton Woods '45-'71
Fixed Exchange rate
U.S. Fixed to Gold
Europe Fixed to Dollar
Negotiated Exchange Rates
Strong Stability
Done by Central Banks; Requires:
Dollars
Marshall Plan
Capital Controls
3
IMF
International Monetary Fund
Financial and Monetary
Originally designed to facilitate Bretton Woods System
(Fixing/Pegging to Dollar)
Supply of Dollars
Today:
Maintain Exchange Rate
Avoid Financial Crises
Washington Consensus*
Headed By European

5. 4
World Bank
International Bank for Reconstruction and Development
Provide Loans to Rebuild Europe
Provide Loans to LDCs
Washington Consensus
Headed by an American
5
GATT 1947
General Agreement on Tariffs and Trade
Failed attempt at International Trade Organization
Temporary agreements on Trade
No enforceable body
State-Centric Trade
Focus on reducing Tariffs
U.S. Reluctantly allowed Sterling Area
23 States attended (159 Today)

6. 6
Problems in the Golden Age (~'70s)
Relative Decline of US
Growth of German and Japanese Competition
Eurodollar Market
Decolonization
NIEs (Newly Industrialized Economies)
Group of 77
Stagflation
Stagnation and Inflation
Failure of keynesianism
7
Collapse of Bretton Woods
Nixon (a Realist) sees the system as a cost
Unable to unilaterally alter exchange rate
Reduced Autonomy
States pegging give themselves preference (realism)
U.S. Stops assisting Pegging States

7. Depreciation of Dollar
Loss of Gold Reserves
1971 U.S. Terminated Gold Convertibility
Dollar Floats
Others follow suit and terminate pegs to dollar
Start of (mostly) Floating Exchange system
8
Neo-Liberalism
Begins late 70's; expands under Reagan
Diminishes Union Power
Decreases Regulation
Repeal of Glass-Steagall
Supply-side Economics
Lowest-Priced Goods
Internationalization of Production
Washington Consensus
IMF, World Bank
Export-led Growth in LDCs

8. 9
Rise of Finance
Insurance on Trade in Floating Currencies
Speculation
Declining wages made up with Debt
Trade Deficit and Debt
Corporation Restructuring
Non-Financial Corporations Profiting from Finance
10
11
Kirschner-Regional Hegemony and RMB.pdf

10. cohn ch 1.pdf

11. 4 trans cap class.ppt
Transnational Capitalist Class
National to TransnationalNational Bourgeoisie
Growth
Assist national Capitalist
Return: growth related investment
Can be ProtectionistGlobal Market
Shared interest
Opening up markets
Changes between and within states
National Bourgeoisie lose

12. Power/dependencyTransnational Capitalist Class
Interest not in one state/region
Not national
Identity transnationalized
Not “under” one stateChanges:
Class compromise
State influence
Dependency
Who Are the TCC? (Sklair)TNC executives;globalizing
bureaucrats;globalizing politicians and
professionals;conisumerist elites (merchants and media).
Labor Remains National
Indicators (Robinson)the spread of TNC affiliates;the
phenomenal increase in cross-border mergers and
acquisitions;the increasing transnational interlocking of boards
of directors;increasingly cross- and mutual investment among
companies from two or more countries and transnational
ownership of capital shares;the spread of crossborder strategic
alliances of all sorts;vast global outsourcing and subcontracting
networks;and the increasing salience of transnational peak
business associations.

13. DialecticsAgency + Structure
The relationship is the focus of analysis
How agents relate to the structureCapitalists
Transnationalization
Uniting Interests
Uniting IdentitiesLabor
Greater reliance on TCC
Race to bottomFixing r > g
Taxes on Wealth
Globalization
No Global StateSolow
Political Power
Productivity / ; Wage Share /
Productivity / ; Wage Share /
Decreases Political/Economic Power of Labor
g

14. Goal of TCCStructure of Capitalism
Empowers BourgeoisieRole of Agent
Enrich SelfResult
Restructure world economy to global economy
Work transnationally to influence governments
Do not moderate harmful effects
Lower Government intervention (who are TCC)
No Global State to fix contradictions
Liberalism.pptx
Quiz
Define (compare/contrast) the following:
Othodox Liberalism
Interventionist Liberalism
Institutional Liberalism

15. 1
Liberalism
Positive-Sum Game
Individual Level of Analysis
Also, Groups of individuals (states, MNC's, Societies)
Regimes (IO's, norms, rules)
Focused on Prosperity
Politically Neutral
State is to open market and protect property
Cooperation
2
Interdependence
Coordination
Higher Cost to Defect
Spill-over – Increasing Interdependence
Hegemon to enforce rules
Regimes
3
Global
International Organizations
Neoliberal Institutionalism
Result of Collective Interest
Cooperation > Competition for all

16. Benevolent Hegemon
Staying Power after Hegemon Decline
Globalization
Autonomous process
Decline of state; lack of ability to interfere economically
4
Development
States must liberalize
Engage in institutions and interdependence
Which process is historically proven?
NIEs, Asian Tigers
China
Asymmetric Interdependence
Exploitation
Is Liberalism Being Maintained?
5