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POLS3501
International Relations
Gregory C. Dixon
[email protected]
www.westga.edu/~gdixon
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Who am I?
• Dr. Gregory C. Dixon
• Specialty – International Relations
• Areas of interest / research:
• International Institutions
• Conflict Management
• Globalization and Global Governance
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Office Hours and Contact
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Office: Pafford 125
Office Hours:
• T/Th 12:30 – 2pm; 3:30 – 6pm
• W noon – 2pm
• and by appointment
Email: [email protected]
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CourseDen
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Syllabus
Course Pack
PowerPoint
Electronic submission of assignments
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Exams
Papers
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Learning Outcomes
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Slide 5
Discuss the basic nature, structure, and
historical origins of the international system
Survey the core vocabulary used in the study
of international relations
Impart a basic understanding of world
geography and its role in international politics
Explore the major theoretical approaches to
the study of international relations
Discuss a range of key issue areas in
contemporary international relations
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Assignments
• Take Home Exams (3)
30% each
• lowest score dropped
• Term Paper
• Research Proposal
• Literature Review
• Completed Paper
2%
3%
25%
• Discussion Facilitation
10%
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Exams
• Take-home essay exams
• A selection of five questions from which you will
answer two
• These are each roughly equivalent to a 5 – 7
page single spaced paper
• Exams are included in the Course Pack
• Exams are to be submitted electronically
through Course Den
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Don’t wait until
the last minute
to start the
exams
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Paper Assignment
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Articulate a research question related to
the course
Do detailed research to answer your
research question
Write a research paper that answers your
research question
Papers will be 3,000 – 3,600 words in
length
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Discussion Facilitation
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Small groups (2 – 3 students)
Lead discussion for one week
• The readings
• The audio lectures
• Relevant current events (The
Economist)
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Grading
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90% and up = A
80 – 89% = B
70 – 79% = C
60 – 69% = D
59% and below = F
No curves or mathematical adjustments
will be applied to the grades
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Assumption of Adulthood
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All students are assumed to be adults and will
be held to adult standards of accountability and
decorum.
You are expected to familiarize yourself with the
requirements of the course.
You are expected to meet the requirements of
the course without having to be reminded of
such clearly posted things as exam due dates.
It is expected that you will do the required
reading for the course.
It is expected that you will complete all required
assignments.
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Class Participation
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It is expected that students will participate
in class
Education is not simply a one-way process
The subject matter in this course is
complex at times and may require
clarification
Students are encouraged to ask questions
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Late or Missed Assignments
•
Late assignments will suffer a penalty of one
letter grade for each business day late
•
The exams are take-home, so extensions will
be extremely rare
•
Absolutely no extensions will be given for the
final exam due date
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Special Needs
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Students with special needs as identified by
the University will be accommodated in
accordance with University policy
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Attendance
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Attendance will not be taken and is not
required as part of the course grade
Attendance is vital to success in this
course
Students are forewarned that missing
lectures may significantly reduce their
chances of passing the course
It is the responsibility of the student to get
the notes from that day of class from
another student in the class
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Acts of the Gods
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On very rare occasions truly terrible things
happen
If such an event happens, don't wait until
the last day of the semester to deal with it
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Privacy and FERPA
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New, stricter rules this year
Nothing related to grades, exams, or any
other course information specific to a
student will be discussed via normal email
- period
Grades and related information will only be
discussed in person (during office hours or
after class) or via CourseDen email
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Classroom Decorum
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Please arrive on time
Please turn off any device that makes noise
Please do not read the newspaper, sleep, send
text messages, or work on material for other
courses during the class time
Mutual respect and politeness is required in the
classroom at all times
Violations of appropriate classroom decorum will
result in penalties in accordance with the
syllabus
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Academic Honesty
Slide 20
• All students should be aware of the University rules
regarding academic honesty.
• Cheating, fabrication, and/or plagiarism of any kind will
not be tolerated.
• Any student caught committing any violation of the
Honor Code on any assignment will receive an F in
the course and will be reported to the University for
further action as per University policy
• The professor reserves the right to seek the harshest
possible penalty for any and all violations of the
University of West Georgia Honor Code regardless of
the value of the individual assignment
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Academic Honesty
•
Slide 21
If you are unsure as to what constitutes
academic dishonesty, please consult the
University of West Georgia Student Handbook
• Ignorance of the Code will not be accepted as
an excuse for violations of it
• Many things which are perfectly acceptable in
high school are considered cheating in college
• If you have a question about cheating, ask, don’t
just assume that you are ok
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POLS 3501
International Relations
What is IR and why do we study it?
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What is IR?
International Relations is the study of politics
beyond the nation-state
 Roughly it is who gets what, where, when,
and how across national borders

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Why Study IR?
It’s a globalized world
 Events in the world have a practical impact
on your life
 International events are interesting

– War and peace
– International economic relations
– Human rights
– And so many more…
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Studying IR
IR is the scientific study of international
processes
 There are many approaches to this process

– Competing theories
– Competing approaches
– Questions of ideas and practices

IR is complicated and diverse
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This Course
This is a survey course
 We will touch quickly on many different
things
 This class moves fast
 Hang on

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POLS 3501
International Relations
History of the international system
The Making of the Modern World
Part 1 – The Rise of West
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Why Start With History?
•
Impact of historical processes
– The international system of today emerged over
time
– The legacy of this history matters
•
History is not deterministic
–
•
Randomness happens
History provides context
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Parallax in History
History depends on perspective
 Most of what follows is Western in orientation

– Most of the ideas in IR are based in Western
thought
– The West has made a large impact on the world

Other historical traditions exist
– Islamic
– Confucian
– Etc.
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Slide 32
Global Interconnectedness

Globalization is not new

Europe, Africa, and Asia are linked in a
hemispheric trade system by 1400
–
Mongol conquests create a central Asian trade
system
– Chinese and Arab traders link Africa, the Middle
East, and Asia by sea
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Maritime Trade Routes 1335
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Land Trade Routes 1300
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African Trade Routes 1350
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The World in 1400

Predicting the future in 1400 we’d get it all
wrong
–
China, India, Tawantinsuyu , and the Aztec
Empire are the up and comers
– Europe is backward and divided
– By 1500 Europe is starting a meteoric rise
– By 1900 Europe dominates the entire world

What happened?
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The Birth of the Modern World
Non-European empires fail to capitalize on
their dominant position
 Europe experiences a series of shock events

– The Black Death (1348)
– Fall of Constantinople to the Turks (1453)
– 15th century revolution in military affairs

Europe is on the defensive in 1400
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The Age of Discovery
Europeans explore the world in desperation
 In the process they accidentally find the
Americas
 They also establish a global trade system
 Europeans displace local traders throughout
the world

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The Americas

Europe has massive impact
– Americas linked to the world trade system
– Diseases kill 90 – 95% of the population of the
Western Hemisphere
– The Empires of the Americas collapse under the
pressure
– The Americas become integrated as the first
colonial possessions of Spain and Portugal
– The Europeans export their political systems
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Political Legacy
Europeans export their political systems
 These systems take root and will leave a
legacy to the present day

–
–
Western political systems are set up worldwide
The basic international system is built on
European political ideas
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Westphalia

1648 – Peace of Westphalia ends the Thirty
Years’ War

Westphalia marks the start of the modern
state system

The state system takes its shape over time
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The Nation State
The central actor in international relations
 Traditional definition

– A geographically defined area (state) in which a
people with a shared sense of common identity
(nation) live

Practical definition
– Any country recognized as independent
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The Nation State

Nation states (NS) have the following
characteristics
– NS are sovereign
– NS have fixed geography
– NS have a monopoly on legitimate use of force
within their borders
– NS have a wide range of domestic political
systems
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Sovereignty
No outside power may legitimately interfere
in the internal affairs of any state
 This is the foundation of international law
 This is the core principle of the international
system today

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Sovereignty In Question

Globalization raises questions about
sovereignty
– Is it still meaningful?
– Do we want it to be?

Norms are changing
– More desire for international intervention in
national affairs

Non-state actors are growing in power and
importance
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Anarchy
NS are sovereign so no power can compel
them to do anything
 This leads to an international system that is
anarchic in nature:

– No central organizing authority
– All actors are technically equal
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Slide 47
Comparing Ordering Principles

Domestic systems are
characterized by
hierarchy
– Members are not equal
in authority
– Legitimate authority can
coerce within the system
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
International systems
are characterized by
anarchy
– Members are equal in
authority
– Power distinguishes
members
– No legitimate authority
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Westphalia as Starting Point

The international system did not magically
appear in 1648
– The foundations were set down at Westphalia
– The system evolves over time as the result of
actions by the great powers

The European model of politics is exported to
the world in the colonial system
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POLS 3501
International Relations
History of the international system
The Making of the Modern World
Part 2 – The Age of Colonialism
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Colonialism and Controversy
People in many developing states HATE
colonialism
 Colonialism created many very real problems
 Many postcolonial leaders also use
colonialism as an excuse for their own
failures
 This is a major source of tension today

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Slide 52
Colonial Diversity

Colonialism was different in different places
– When were you colonized?
– Who colonized you?
– What is the social, economic, and political
context?
– How long were you colonized?

These lead to very different results in
different places
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Slide 53
Pre-Industrial Colonialism

Americas are unique due to depopulation
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Spain and Portugal extend a semi-feudal system into
the Americas
France, England, and the Netherlands establish
smallholder colonies

In Asia and Africa, the established empires keep
the Europeans contained

Europe lacks a decisive advantage where the
population did not die off
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Slide 54
Age of Revolution

At the dawn of the industrial age you get two
major revolutions
– American Revolution (1776)
– French Revolution (1789)
These shake up the political system
 The American will have a powerful long-run
impact
 The French will directly threaten the entire
international system

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Slide 55
The Napoleonic Wars
Revolutionary France goes to war with all its
neighbors
 The idea is to spread revolutionary
republicanism
 These wars reach their height with Napoleon
 These wars threaten to destroy the entire
political system in Europe and replace it
 The conservative states rally and defeat
Napoleon

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The Congress of Vienna
The Great Powers meet in Vienna to rebuild
the European political system
 This is an informal mechanism for managing
global conflict
 It creates a stable political system that lasts
nearly 100 years

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Slide 57
A Multipolar System

The 1800’s are dominated by a multipolar
international system
– There are several great powers
– The powers are close in strength

This system tends towards a balance of
power
– States form alliances to deter other states

Balancing works so long as everything goes
well
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The Tumultuous 1800’s
Industrial Revolution
 Industrial Colonialism
 Demographic and social changes
 Massive movement of populations
 Significant changes in political systems

– Rise of nationalism
– Rise of representative government
– Colonial integration into European systems
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Industrial Colonialism
Industrialization gives Europeans a decisive
material advantage
 This creates a feedback process

– Industry allows conquest
– Conquest brings resources for more industry
– Industry expands: seeks more resources

Process drives Europe to expand control
across the world
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Slide 60
Colonialism: 1st Wave Globalization

By 1870 the world is as integrated as the world of
2000
 The process is coercive and disruptive
– Indigenous cultures and institutions are
destroyed and replaced
– European systems are set up in their place
– This creates massive tension and dislocation
 Basic nature is coercive
– The underlying material support for the system is
military power
– Industrialization made this possible
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Colonial Penetration
Process of destroying institutions is quick
 Process of replacing them is not
 Replacement institutions are a problem

– They take time to entrench
– They have a stigma attached: they were
imposed from outside

Duration of colonization leaves a lasting
legacy
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Colonial Empires – 1800
Source: http://en.wikipedia.org/wiki/Image:Colonisation_1800.png
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Colonial Empires – 1885
Source: http://commons.wikimedia.org/wiki/Image:Colonisation_1885.png
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Colonial Empires – 1914
Source: http://commons.wikimedia.org/wiki/Image:Colonisation_1914.png
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Impact of Colonialism

Local economy and society is reorganized
–
Local production is displaced by Europeanoriented production
– This is incredibly disruptive to the local social
order
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Local social structures are altered at best, crushed at
worst
A very painful transition in many areas under
colonialism
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Ideological Justification
Europeans knew the impacts of their actions
 They justified the high cost through ideology

– Superior European systems would replace
inferior local ones
Europe was on a mission to make the world
better
 States preached this to greater and lesser
degrees

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Race and Colonialism
How do you justify tearing apart social,
economic, and political systems?
 Race becomes the key

– A hierarchy based on race evolved by 1900
– Racial hierarchy becomes the justification for the
colonial system
– This leaves a legacy in contemporary politics
– A powerful memory of European racism still
exists
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POLS 3501
International Relations
History of the international system
The Making of the Modern World
Part 3 – Two Wars and a Depression
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Slide 70
The World in 1913
A century of growth and progress for
Europeans
 Major wars had been short and mild
 Material progress was seen as a universal
good
 Ideology had entrenched a concept of
European superiority
 People had an incredible sense of optimism

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The Great War and The Wasteland

WWI utterly destroys the world order of 1913
–
–
–
–
Political
Social
Military
Economic
The war is a devastating shock to the system
 The world of 1920 is fundamentally different

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Political Impact of WWII

WWI destroys the old political order
–
–
Great powers significantly weakened
Austro-Hungarian, Ottoman, and Russian
empires collapse
– German Empire dismembered
– UK, France are exhausted
– US, Japan emerge much stronger
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The Character of WWI

WWI was unlike any war that have ever
taken place
– Mass armies led to mass casualties
– Soldiers were cogs in the War Machine
– Total War meant that everyone was part of the
war effort
1 in 3 Men of fighting age are killed
 Battle of Somme has over 1.5 million
casualties

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Slaughter in the Trenches
No one was prepared for modern war
 Colonial wars were easy
 The carnage was completely unexpected

–
The elite signed up to fight first, and are
slaughtered
– 11% of the total population of France was killed
or wounded
– 10% of the French males of fighting age were
killed, just under 40% were wounded

An entire generation is decimated
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The Peace of 1919

Victors negotiate the treaty between
themselves
–

US, UK, France are main players
Versailles Treaty is handed to Germany
–
No choice is given: accept it or back to the war
Japan is snubbed by allies
 Colonial peoples are sidelined

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14 Points vs. Realpolitik
Woodrow Wilson had declared 14 Points for
a “just peace”
 UK and French leaders wanted to crush
Germany forever
 This is battle of the Treaty of Versailles


Key here is that Wilson wanted to
fundamentally change the world, but failed to
do so
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The League of Nations
An organization to prevent future wars
 Based on “collective security”
 The first attempt to create a formal
organization to manage world politics
 The core of Wilson’s 14 Points
 The only one created at Versailles

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Domestic Politics is International

All international politics is local in
democracies
– US popular opinion was against the League
– The Senate opposed the League

The US will fail to ratify the Treaty of
Versailles
– This fatally damages the entire Wilsonian system
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Slide 79
Boom and Bust
The 1920’s sees a major economic boom
 It is very fragile

– Unstable balance of payments
– Unstable government economic policies
– Social and political unrest emerge in response to
the changes wrought by WWI

Colonial system is very fragile
– Colonial peoples resent colonialism
– European powers are too weak to maintain
military dominance
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Slide 80
It All Goes to Hell

The Crash of 1929 slams into this fragile
world order
– Creates liquidity crisis
– Crashed balance of payments system
The world is in very real economic danger
 And the major powers push each other over
the cliff

– No coordination of economic policy
– “Beggar thy neighbor” economic strategies
– US leads the way in narrow policies in crashing
the system
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Slide 81
The Great Depression
Worst global crisis of the industrial age
 Unemployment skyrockets in most industrial
states
 World economic output collapses
 The entire economic system crashes


This throws the entire international system
into chaos
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Slide 82
Road to War
The collapse of the interwar system opens a
door
 Germany, Italy, and Japan want to reorder
the world
 The collapse of the world economy gives
them the chance

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The 1930’s

The League of Nations shatters under the
pressures of a resurgent Italy and Japan
– Key moment:
• Italian invasion of Ethiopia
• Haile Selassie’s address to the League Assembly
• League inaction in the face of Italian aggression

Appeasement
– Britain and France hope to buy off Germany by
redressing “legitimate” concerns
– This fails
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WWII
Peak of total war
 Mass civilian casualties
 All major powers are devastated other than
the US
 The war ravages the Eurasian landmass

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Slide 86
POLS 3501
International Relations
History of the international system
The Making of the Modern World
Part 4 – The Post-War Global Order
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Slide 87
Post WWII World
US is predominant world power
 US can dictate postwar order
 USSR is powerful enough to resist, but not to
displace the US
 US and USSR have different visions of the
postwar world

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The Postwar Order
The US begins planning in 1943
 Lessons of the past:

– Bad peace leads to future war
– Lack of coordination leads to economic chaos
– Lack of coordination leads to war

Solution
– Build a new international order to solve these
problems
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Slide 88
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Slide 89
US Plan
Magnanimous peace
 Build global governance architecture

– United Nations (collective security)
– World Bank (international development)
– International Monetary Fund (monetary stability)

The US will create these organizations
– Created based on US ideas about governance
– The system is American social democracy writ
onto global politics
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Slide 90
Theory

The organizations will solve the problems of
cooperation that led to the Depression and WWII
– Permanent institutions will bind states together
– The benefits of cooperation will keep states on board
– The US will bear the costs of setting all this up and
providing incentives for states to join
– This attempts to apply the rules of governance we know
at the domestic level to international politics
– It looks great on paper
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Slide 91
Practice
Power politics trumps ideals
 The system is based on the US world view:

–

Social democracy
This is very different from the view of the
USSR:
–
Power politics
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Slide 92
From WWII to Cold War
USSR sees US plan as attempt at global
hegemony
 USSR refuses to play along

– Sets up satellite governments in Eastern Europe
– Creates a system or organizations to hold its
sphere together
This will lead to growing tension
 Both sides see the other as a threat

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Slide 93
The Cold War
The Cold War dominates world politics from
1947 - 1989
 Economic and Security policies are focused
on the Cold War
 The Cold War divides the world

– First World – US and the West
– Second World – USSR and the East
– Third World – everyone else

Major impact on international system
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Slide 94
Effects on Governance Architecture

The economic organizations were meant to govern
the world – but they only govern part of it
– The West
– The Third World states that lean Westward

This makes the economic organizations part of the
Cold War battle
 Economics is a battleground of the Cold War
 The IMF, IBRD, and GATT play a role in the
ideological struggle
 The organizations take on a role as promoters of
the West's ideas about economics and
development
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Slide 95
The Embedded Liberal Bargain

Problems with economics in the West:
– Different Welfare States
– Different ideas about economic policy
– These differences have to be accounted for

Embedded Liberalism
–
–
–
–
Liberal economic ideas will dominate internationally
This will be enshrined in the IMF, IBRD, and GATT
Within this, each state manages its own Welfare State
The international architecture embeds a core set of
values
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Slide 96
Effects on UN System
The UN is meant to provide collective
security
 The “Big 5” on the Security Council are to be
the world's policemen


The problem is that two of the five are rivals
in the Cold War
– Both the US and USSR have Security Council
vetoes
– They use these vetoes any time a serious matter
affects them
– The UN cannot perform its role in collective
security
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Slide 97
Effects on UN System






The UN cannot provide collective security, but this
leads to an unintended consequence
As decolonization progresses, the membership
shifts
Former colonial states come to dominate in the
General Assembly
Create branches of the UN to deal with postcolonial issues
The post-colonial states use the architecture built
for collective security to meet their needs
The UN takes on a much wider role than intended
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nd
2
Wave Globalization

The overall impact of the Cold War is to create a
divided globalization
 The West and East blocks integrate within their
blocks, but have little contact across the divide
 The Third World is able to play off the two major
powers against each other
 The result:
– Tight integration within the First and Second Worlds
– The Third World is unevenly integrated
– The “Second Wave” (Cold War) globalization is
simultaneous integration within two competing systems
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End of the Cold War

The Shock of 1989
– No one saw it coming
– The whole international system changed
– The 2nd world vanished

The West had won the Cold War
– Everyone joins the architecture created by the
West
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Slide 99
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rd
3

Wave Globalization
Global integration accelerates
– Starts in 1973 with changes to finance system
– Last blocks removed with end of Cold War
Integration is truly global again
 No stone left unturned


But the governance architecture is cutting
edge 1945 institutional design
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Slide 101
Challenges to the Architecture
Decolonization creates many new nations
 UNCTAD is formed to address needs of
developing states
 NIEO arises from UNCTAD program:
seeking a new architecture of economic
governance
 This fails: developing states are stuck with
IMF/IBRD or COMECON models

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Slide 102
Post Cold War
Divided globalization had been eroding since
the late 1970’s
 1989 ends the Cold War and the remaining
barriers between East and West collapse
 The West’s economic IGO’s expand to
encompass the whole world


Today’s GG architecture is thus the legacy of
1945 as modified by ideological struggle
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Slide 103
9/11 and All That
9/11 does not change the basic structure of
international politics
 The emphasis shifts to security

– Focus on non-state actors
– Divides states based on perception of threat

The economic system does not change
– Globalization progresses
– Integration proceeds

The geopolitical structure does not change
– Nation-state system barrels onward
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Slide 105
Actors in International Relations
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Slide 106
A Rogues Gallery of IR
Nation-States
 Inter-Governmental Organizations (IGO’s)
 International Non-Governmental
Organizations (NGO’s)
 Multinational Corporations (MNC’s)
 Epistemic Communities / Transnational Civil
Society (TCS)

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Nation States

The major players in IR
– Sovereign entities
– Fixed geography
– Monopoly on legitimate use of force
– Wide range of domestic political systems
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IGO’s

Organizations formed by formal treaties
between national governments
– Have a formal structure detailed by treaty
– Regular meetings
– Bureaucracy (wide range in sizes)
– Come in many different forms
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Slide 109
Traditional IGO Typology
Membership
Universal
Function:
• United Nations
•
•
•
•
Organization of American States
Arab League
African Union
Commonwealth of Nations
•
•
•
•
•
•
•
•
NATO
OECD
ASEAN (originally)
SADC
General
Specific
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Limited
World Trade Organization
World Bank
Universal Postal Union
Intl Telecoms Union
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NGO’s

Slide 110
Members are individuals, NGO’s, and/or,
MNC’s
– Are member driven
– Typically are focused on narrow range of issues
– Have wide range of relationships to states
– Bewildering range of institutional forms
– Funded by many different sources
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Multinational Corporations
Legal “persons” created to do business
 Depend on legal systems of nation states
 May operate in many nation states
 Are responsible to shareholders

– Are motivated by profit
– Most nation states require “maximizing of
shareholder value”

The largest MNC’s have sales that exceed
the GNP of most nations
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Transnational Civil Society
Us!
 People who actively participate in global
politics
 Can do so in many ways
 Often most recognized when working
through NGO’s
 Provides a latent potential for organizing
politically

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Slide 113
Problems and Solutions

Globalization creates problems that require
collective action
– States act collectively to coordinate trade
– Corporations act collectively to set standards
– People act collectively to promote their shared
ideas

All of these are aspects of global governance
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GG by States – IGO’s
Slide 114
Universal Postal Union (UPU)
 Economic Community of West African States
(ECOWAS)
 Bank of International Settlements (BIS)

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GG by MNC’s
The International Chamber of Commerce
 Blu-Ray
 The standardized shipping container

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GG by NGO’s
FIFA
 World Anti-Doping Agency
 Freedom House

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Theory in IR
•Seeking
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a science of international
politics
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Slide 119
What is Theory
Simplifying assumptions for a complex world
 Improve understanding by using models of
the world

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A Typology for Theories
Units of analysis
 Assumptions
 All theories are simplifications

– Parsimony: keep it simple
– Completeness: explain widest range of cases
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The Big Two
Realism
 Idealism/Liberalism

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The Realist Family
States are the unit of analysis
 States are sovereign
 States are unitary
 States are rational
 States are power maximizers
 Anarchic international system is the key
 Politics is a 0-sum game

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Slide 123
Core Ideas of Realism

Human nature is conflictual and unchanging

Anarchy means international politics is
clearly different from domestic politics

Morality is not possible in international
politics
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The Liberal Family
Individuals are the unit of analysis
 Individuals are rational
 Individuals are utility maximizers
 Politics and economics have mutual
influence
 International politics can be a positive-sum
game

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Slide 125
Ideas in Liberalism
Human nature is maleable
 Incentives drive decisions
 Institutions can change incentives for actors

– Institutional design matters

People can learn from the past and change
how international politics works
– Improvement is possible
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The “Neo-Neo” Debate

Slide 126
Realism and Liberalism dominate during the
20th century until the end of the Cold War
– The “neo” variants are entrenched in most
universities
They dominate the IR literature
 This is criticized by others as the “neo-neo”
debate

– Ignores other approaches
– Impacts how political leaders come to see policy
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Slide 127
Marxism
Class is the unit of analysis
 Classes act in their own material interest
 Capitalist economics exploits labor in the
service of capital
 Economic forces define and drive political
forces
 History is a directional process that has a
clear "end"

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Slide 128
Ideas in Marxism
Exploitation is the normal state of the
international system
 Exploitation can only be changed by
fundamentally changing the system
 Global politics and economics are the same
thing
 Human nature is malleable


Example: World Systems Theory
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Slide 129
Social Constructivism
Unit of analysis is the individual
 We collectively construct our world
 What we believe to be true, becomes true
 Ideas/Norms cannot be separated from
politics
 There is no “natural” form of the international
system
 People can change all the parameters of
politics

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Slide 130
Ideas in Social Constructivism
Norms and ideas are key
 We build institutions to formalize norms
 International politics is structured by our
ideas about it
 Anarchy is the state of the system today
because leaders act as though the system is
anarchic
 People can change the system in key ways

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The Posti Family
Postmodernism, Poststructuralism, and
Critical theory are hard to categorize
 They vary a great deal

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General Posti Assumptions
The concept of a unit of analysis is not useful
 There are no absolutes
 The discourse used to discuss international
politics limits our ability to think about it
 Goal is to move beyond the constraints of
language and discourse
 This can be complicated

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Slide 133
Ideas in Posti Theory
There is no human nature
 Some ideas take on the “power of common
sense”
 Common sense is not inherently “better” than
other ideas
 Ideas drive us in ways we don’t think about


Example: Critical Feminist Theory
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Who’s Right?
No one
 Everyone

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Toolkits and Science
Theory is a tool
 Reality is too complex to fully grasp
 We MUST make simplifying assumptions
 What assumptions we make are driven by
theory
 Ideally theory fits in the context of social
science research
 This can get tricky when theory challenges
the possibility of “social” science

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Theory and Policy
Policy is rarely made by theorists
 Theory influences people through
assumptions

– Wilson: prototype Liberal Institutionalist
– Nixon: the arch-realist

Most policy-makers don’t think about their
assumptions
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Slide 138
Policy By Other Means?
Violence in international relations
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Slide 139
Scientific Study of Violence
War and violence are part of IR
 Violence is a fact of life
 We seek to understand it for two reasons

– Prevent future conflicts
– Reduce the impact of conflicts when they occur
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Slide 140
Theory Creates Tension

There is a tension in the study of war
– Realists assume war is inevitable
– Others assume war is avoidable
– A few argue that war can be eliminated entirely

This creates a basic tension in IR
– Some argue that the study of war avoidance is a
waste of time
– Most argue that understanding war can help
prevent it and limit it when it does come
– Others argue that we can achieve a world
without war
– There is no answer to this dilemma
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Methodological Tensions

There is a further divide
– Quantitative studies: statistical analysis
– Game theory: rational utility approaches
– Qualitative studies: case study approaches

These approaches cross theoretical lines
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Violence in IR

War
– Large scale
– Nation-state based (inter-state war)
– Sub-national based (intra-state war)

Violence short of war
– Terrorism
– Threats of war
– Low intensity conflict
– Proxy war

The lines can be very blurry
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What is War?
And what is it good for?
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War is Old
All large scale societies fight wars, and
always have
 Violence is part of politics

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Slide 146
War is What States Make of It
Understanding and defining war is a social
act
 Societies define war within their world-view

– Western war is about decisive battle
– Aztec war was about capturing enemies

Societies constrain war with rules
– Greek prohibition of archery
– Celtic ritual taunting
– Hunter-gatherer ritual combat

War is what we make of it
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Clausewitz
War is policy by other means
 War as a tool of national policy

– War should serve a purpose
– War is the product of national decision-making
War is inevitable
 War can be desirable

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Slide 148
Sun Tzu
A different set of ideas
 War is using what you have to battle your
enemy
 It covers a large spectrum of tactics

– Includes full scale war
– Also includes guerilla tactics
Does not share civilian/soldier distinction
 Doing what needs to be done with what you
have

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Slide 149
Clausewitz vs. Sun Tzu
In Vietnam and Afghanistan Sun Tzu beat
Clausewitz
 If you try and fight Clausewitzian war against
an opponent with different tactics, you lose
 Industrial country armies start to re-learn
tactics that had been neglected
 The strategy and tactics of war changes
 This accelerates post Cold War

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Slide 150
Key Problems

War is politics by other means
– How and when we fight are determined by
politics
War brutally punishes the dumb
 But in modern war, the dumb may be too far
away to feel the pain

– WWI – tactics did not change for nearly three
years
– Iraq War – domestic political concerns prevented
thinking about “after the war”
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Slide 151
A Self-Help System
Anarchy means you can’t rely on anyone
 You are on your own: Self-help
 You must protect yourself at all times from all
potential enemies

There is no one to enforce the rules
 “The strong do as they will, the weak suffer
what they must.” - Thucydides

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The Security Dilemma

You cannot make yourself secure without
threatening others
– A sees B as a strong enemy
– A arms to defend against B
– C sees A arming and fears A
– C arms to defend against A
– B and A both see C arming and fear C
– Etc.
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Slide 153
Asymmetric Warfare
The US is unchallenged in traditional war
 The US is vulnerable to asymmetric war
 All the industrial democracies are vulnerable

– Casualty aversion
– Rapidly declining political will
– Short time-horizons
– Distance accelerates fatigue

Non-state actors and rogue states use what
they have to hit us where we are vulnerable
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Slide 154
Defining War is a Problem
Correlates of War = 1,000 battle deaths
 PRIO = 100 battle deaths

This assumes inter-state war
 War today is often state vs. non-state actor

– UCDP includes wars involving non-state parties

Force is also often used for reasons other
than traditional war
– Peacekeeping
– Stability operations
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Time of Transition
Our ideas about war are changing
 Policy is shifting slowly

– Deal with stability
– Deal with non-state actors
– Retain a concern with interstate war
– Bureaucracies change direction slowly

It is not clear how this will affect us in the
future
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Slide 158
Jus in Bello
War Law
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Limiting War

All societies seek to limit war
– Yanamamo Tribes (Brazil) constrain conflict
through ritual to prevent violence
– Greeks eliminated missile weapons
– Irish “Laws of the Innocents” in pre-Christian
Ireland
– Papal efforts to limit war between Christians
– Islamic prohibitions against fighting within the
Ummah
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Modern Laws of War

Geneva Conventions
– 1st – Treatment of sick and wounded
• Original ratification = 1864
• Last modified = 1949
– 2nd – Treatment of sailors
• Original ratification = 1906
• Last modified = 1949
– 3rd – POW’s
• Original ratification = 1929
• Last modified = 1949
– 4th – Civilians in wartime (civil and interstate)
• Original ratification = 1949
• Last modified = 1977 (protocols I and II)
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Laws of War
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Assumptions of the LoW
Interstate war
 Enforced first by the states

– Courts martial

Enforced by international jurisprudence only
when national justice is not present
– Ad hoc tribunals
•
•
•
•
Nuremburg
Tokyo
Yugoslavia
Rwanda
– International Criminal Court
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Slide 163
Problems of the LoW
No provision for non-state violent actors
 Definitions follow older ideas about war

– Combatants are defined in traditional war terms
– Clear distinction between civilian and soldier
– Assume clearly defined boundaries

Rely on national power to enforce
– National policing of militaries
– Victor enforces against defeated powers
– International enforcement still requires national
cooperation
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Post 9/11 Problems

Where do terrorists fit?
– Domestic legal system
– International legal system
– Someplace else?

Where do private military contractors fit?
– Mercenaries?
– Something new?
– Who’s laws apply to them?
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Slide 166
Enemy or Tactic?
TERRORISM
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Slide 167
Defining Terrorism
This is surprisingly hard
 There is no universally accepted definition


Working definition:
– The use of unconventional violence for the
purpose of generating terror in one's opponents
for a political or military end
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Goals of Terrorism
To breed fear in the enemy
 Change policy in the enemy through rising
monetary and political cost
 Erode the confidence of the opponent's
military and civilian populations
 "Bring the conflict home" to the enemy

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Methods of Terrorism
Unconventional violence
 Bombings
 Hijackings
 Political Assassinations
 Covert attack

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Slide 170
Character of Terrorist Violence
No civilian/soldier separation
 Wide variation of means
 Wide variation of goals
 Murky definition of victory
 Symbolism as important as actual damage

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Slide 171
Types Of Terrorism

State-Sponsored
– Why sponsor terror?
• Cold War Logic
– Undermine the other side
– Keeps violence at a low level
• Post-Cold War Logic
– Asymmetric violence: way of challenging the North
– Bargaining power in larger negotiations
– Much riskier after 9/11
– Key features of state terrorism:
• Terrorists may move freely, but the sponsor is fixed
• Resources available are much greater than those for
independents
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Slide 172
Types Of Terrorism
Independent: The group acts without the
direction or official support of a state
 Supported by a combination of:

– Direct financial support
– Investment and financial strategy
– Criminal enterprises

Key features:
– Independent of geography
– Use globalization as a tool
– Operate outside of traditional state actions and
limitations
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Slide 173
Problems with Terrorism
Ends of terrorists can be murky
 Cellular organization means splinter groups
are common
 Strong states are not defeated by terrorism in
any significant areas of policy
 Committed groups may take generations to
die out

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State Strength
Strong states effectively resist terrorism in
most cases
 Middling or weak states struggle
 Failed states are fertile ground for terror

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Slide 175
Old Terrorism
Had a clearly defined political motivation –
changes to policy
 Balanced creating terror and maintaining
sympathy for “the cause”
 The most prominent groups were state
sponsored
 Small number of fixed bases for training and
deployment

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Slide 176
New Terrorism
Motivation is loosely defined or based on
ideology/identity
 Seeks largest symbolic impact, not a balance
 Most prominent groups are non-state actors
 Many bases in weak or failed states
throughout the world
 Cells in other states

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Slide 177
War On Terrorism
Terrorism is a tactic
 You can make war on terrorist organizations
 But you face the danger of becoming the
enemy

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Why do we care so much about these things?
WEAPONS OF MASS
DESTRUCTION
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What’s a WMD?

Weapons that kill without discriminating
between combatants and non-combatants
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Types of WMD
3 general types:
 Chemical Weapons

– Banned under Chemical Weapons Convention
(CWC)

Biological Weapons
– Banned under Biological Weapons Convention
(BWC)

Nuclear Weapons
– Proliferation of technology is controlled under
Nuclear Non-Proliferation Treaty (NPT)
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Chemical Weapons

4 basic types
– Choking - damage lung tissue
– Blood Agents - cut off flow of oxygen
– Vesicants - burn and blister soft tissue
– Nerve Agents - disable nervous system

2 broad categories:
– Persistent
– Non-Persistent
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Slide 182
Biological Weapons

How they kill: Varies by disease

2 broad categories
– Pathogens - diseases which directly kill: bubonic
plague, anthrax
– Biological Toxins - poisons produced by natural
agent: ricin (from castor beans)
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Nuclear Weapons

How they kill:
– Primary blast radius: vaporize all living matter
and pulverize buildings
– Secondary blast radius: shock wave crushes
people and buildings
– Tertiary blast radius: radiation, blindness, and
burn effects

3 categories:
– Fission: "first-generation" weapons
– Fusion: "second-generation" weapons
– Radiological: Conventional bombs encased in
radioactive substances (irradiate only)
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Current Possessors
Known Former Possessors:
Programs dismantled and weapons
destroyed
Nuclear
Biological
Chemical
United States
Russia
United Kingdom
France
China (PRC)
Israel
North Korea
India
Pakistan
South Africa
None
Iran***
United States
USSR (Russia)
China (PRC)
United Kingdom
Germany*
Japan*
Iraq
Iran
Syria **
North Korea
Taiwan
Romania
Algeria
Jordan
Egypt
South Africa
Israel
Bulgaria
France
Poland
United States‡
USSR (Russia) ‡
Over 20 states on this list
Active Acquisition Programs (known) Iran
Syria
Programs abandoned before
acquisition
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Slide 184
Brazil
Argentina
Germany
South Korea
Taiwan
Libya
Netherlands
Canada
Poland
Albania
Algeria
Over 20 states on this list
Unknown
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Would Terrorists Use WMD?

Any of these weapons would create the
following effects:
– Massive casualties
– Contamination of key areas
– Panic
– Degraded response capability
– Economic Damage
– Loss of Strategic Position
– Social and Psychological damage

All of these suite “new terrorist” agendas
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What’s Stopping Them?

For Bio and Chem: nothing
– Acquisition is relatively easy
– Delivery is the hard part
• Larry Harris: US militia group purchased bubonic
plague
• Rajneesh Puram Cult: used salmonella to sicken
people before an election
• Aum Shinrikyo: Sarin gas attack on Tokyo subway

Nuclear
– Bomb is easy
– Fissile material is very, very hard to get
– Fissile material is traceable
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Slide 187
Taboo
WMD have massive symbolic power
 Psychological and normative factors mitigate
against use by most actors

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Slide 188
Deterrence

US and others have a policy of massive
retaliation in kind to WMD use
– US only has nukes: chemical attack on us =
nuclear attack on you
– Works with states
– Nuclear material is rare and traceable, so
deterrence is easier

Not clear if deterrence works for new terrorist
groups
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Slide 189
Post 9/11 WMD
The old deterrence rules may be gone
 Most likely users are non-state actors

– Chemical and biological are most likely

Old proliferation control regimes are eroding
– US nuclear deal with India
– Removal of sanctions on Pakistan
– Deals with North Korea

War in Iraq gave clear lesson:
– If you have nukes, you are safe
– If you are building nukes, you are in danger

We are in uncharted waters
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Human Security
Changing the terms of the debate
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Slide 192
Problems of Intervention

Any intervention faces potential problems
– Legal – can the international community
intervene?
– Logistical – does the international community
have the capacity to intervene?
– Moral – should the international community
intervene?
– Political – if it is legal, the capacity exists, and it
should be done, is there the political will to do it?
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Slide 193
Obstacles to Overcome

Sovereignty
– Legal prohibitions against interference

Communication
– Making sure everyone is aware of the extent of
the problem

Coordination
– Getting everyone on the same page once you
agree to move
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Political Will
Ultimately it is a combination of will and
resources that are necessary
 Will is almost always lacking

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Slide 195
Dark Side of Democracy
Political leaders are elected in domestic
politics
 In domestic politics, people vote based on
domestic issues
 Political leaders see (rightly) humanitarian
intervention as unpopular
 Developed electorates don’t want to pay the
costs of intervention
 Developing states lack the resources to
undertake effective intervention

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International Political
Economy
IPE for you and me!
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Issues in IPE
The distribution of wealth in the global
economy
 The impact of the market on traditional
societies’
 Evolving social and cultural issues coming
into conflict with economic issues
 The globalization of commerce and the
impact on local needs
 The conflict between democracy and
capitalism

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Slide 198
Political Economy
The marketplace creates winners and losers
 Political leaders are constantly torn between
contradictory pressures
 All leaders must balance the market forces
and political forces
 What kind of government a country has
affects how this balance will be struck
 Policy choices are almost always about the
art of the possible – not about the ideal

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Slide 199
The Conventional Spectrum

Economic nationalism (mercantilism)
– The marketplace (the economy) should be a tool
for increasing the power of the state.

Liberalism (neo-liberalism)
– The marketplace is the best way to determine
who gets what, when, and how.
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Economic nationalism
Mostly
Open:
Singapore
Russia
USA
Sweden
Source: Heritage Foundation Economic Freedom World Rankings: http://www.heritage.org/index/Ranking
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Liberalism
Mostly
Closed:
North
Korea
Cuba
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Slide 201
A Constant Tension
Countries need strong economies to grow
 Political leaders like to stay in power
 Weak states lose freedom of action
 International markets can lead to prosperity,
but with a loss of autonomy
 Too much loss of autonomy and a state is at
the whim of global economics

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Examples

Industrial states:
– Agricultural policy
• Food is artificially expensive
• Consumers pay more
• Rich world policies keep people poor in the
developing world
• Food prices depend on politics

Developing states:
– Industrial policy
• Limits avenues of investment
• Seeks expertise, technology, etc.
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Government Type Matters

Democracies are richer than autocracies
– But open countries can be authoritarian

But they need effective institutions
– If your institutions are bad, government type
doesn’t make a difference
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Slide 204
Why is Democracy Good?

Incentives for political leaders
– Long term economic growth supports the system
as a whole
– Leaders like stability – they can stay in power
– Consolidated democracies have a strong interest
in long-term growth

The need for leaders to appeal to voters over
time keeps the long run on their minds
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But…

Slide 205
The short run pressure is for bad policy
– Losers want government to protect them
– Winners engage in rent-seeking

Democracy makes this pressure worse, you
need these people in the next election
– Bad economic times = short run pressure
– Fragile (or just new) institutions = short run
pressure
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Slide 206
Autocracy
Less worried about pressure
 Autocrat skims money off the top

– No rule of law, so its harder to get investment
anyway

No real incentive for growth beyond a bare
minimum
– Ruling oligarchs can be rich even if the country is
poor
– Power trumps wealth
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Slide 207
In General, In the Long Run…
Democracy is better, but only under some
conditions
 Autocracy is usually worse, but there are rare
cases of enlightened despots
 Oligarchy is a happy (-ish) medium
(Singapore, South Korea, Taiwan, and
maybe China)

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Governance
Governance is as important as regime type
 Good governance = effective institutions +
good policy environment


The trick is knowing what “good” and
“effective” mean
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Slide 209
Thinking About IPE
There is incredible diversity in approaches
 There is little agreement

– Mainline IGO’s and policy-makers in North have
a broad consensus
– There are many critiques
– Evidence is mixed at best

This section of the course will explore these
issues
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The basic ideas and principles of political economy
ECON 101
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Economic Theory 101

The big three of neo-liberal economics:
– Adam Smith
– David Ricardo
– John Maynard Keynes

The big four critics:
– Karl Marx (with help from Engles)
– V.I. Lenin
– Dependencia and World Systems
– The Austrian School
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Adam Smith

Mercantilism places politics before economics
– The market is superior to the monarch at making
economic decisions
– The efficiency of the market is more egalitarian –
efficiency is rewarded, not status
– The market is a self-regulating mechanism

Key points to remember:
– The short term could be problematic
– Charity reduces the problem (“fellow feeling”)
– A Theory of Moral Sentiments was part of free
markets
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Slide 214
David Ricardo

Comparative Advantage
– Make goods where you can do so most
efficiently
Over time, this process results in more
efficient production across the world
 In the global market, this means that
production will shift to countries in which
there is the greatest efficiency
 The market will become progressively more
integrated

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Slide 215
J.M. Keynes
Free markets are prone to boom and bust
 The impact can be reduced (but not
eliminated) with “counter-cyclical” policy
 General Theory is published just before
Depression
 His ideas are usually not implemented as he
argued they should be

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“Counter-Cyclical Policy”
Slide 216
Monetary policy
 Fiscal policy


The government acts to moderate the cycle
– Deficit spending in bad times
– Pay off deficits in good times
This is the policy adopted by all advanced
industrial states post WWII
 This policy is embedded in the global
economic order

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Slide 217
Embedded Liberalism
Global economic governance is based on a
particular vision of economics
 IMF, World Bank, and WTO enshrine this
 It is also a system that privileges the power
of the already wealthy
 The basic assumptions are built into how
governance works

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Slide 218
Marx
Capitalism = exploitation
 The globalization of capitalism is required to
achieve a global class consciousness
 This is necessary before the capitalist
system can be overturned


In short: the system is exploitative, but its
alright because this will lead to its
destruction, someday
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Slide 219
Lenin
Agreed with Marx, but with an important
change
 Lenin thought you could accelerate the
process of movement to revolution
 WWI and the Depression were evidence of
the fragility of the capitalist class
 You could create a socialist system that
would accelerate the global revolution
 In short: the system is exploitative, but it will
change sooner than Marx thought because
I’m in power

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Slide 220
Dependencia and World Systems Theory

The basic argument is that the advanced
states have rigged the game
– The system favors the already rich
– The poor are exploited to keep the rich fat and
happy
– The only way out of the system is to recognize
that you are “dependent” on the rich
– Once you realize this you can break the cycle

This leads to a school of “Dependent
Development”
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Slide 221
Austrian School

Yes, free markets are good
– Now will the advanced industrial states please
start practicing what they preach

Essentially agrees that the system is rigged
– Trying to manage the system leads to politics
warping the markets
– This makes everyone worse off in the long run
• Example: Agricultural policies
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MONEY AND FINANCE
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Money, Finance, and Globalization
To understand the world, you have to
understand money
 Finance drives globalization
 Globalization drives finance
 This is a self-reinforcing system


But it also binds us all together in
complicated ways
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Slide 225
What is Money?

Fiat vs. Specie
– Specie: money that is some tangible thing (gold,
silver, seashells, etc.)
– Fiat: money that has value by government dictat

Almost all money today is fiat money
– Money is an idea
– Money is information
– Money can move as information moves
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Slide 226
The Gold Standard

The Gold Standard
– Makes international exchange easy – you get X gold per $ and
Y gold per £
– You can easily tell how strong a currency is – does a country
have enough gold to meet its commitments?
– It is very stable over time

Problems
– Money supply is limited to gold on hand – it can’t grow easily
– Gold can run away – make bad policy decisions and people
take their gold elsewhere
– It can be slow to respond to market forces, delaying policy
response
– It is easy for governments to manipulate (FDR seized all the
gold in the USA during the New Deal)
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Slide 227
Bretton Woods v1.0

The original IMF system was an indirect gold
standard
– US$ linked to fixed amount of gold
– All other currencies pegged to the US$

The fixed rates of exchange got out of synch
with reality
– Markets move quickly
– Politics adapts slowly

The system collapsed in 1973
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Post 1973 World


Money has no basic connection to physical
things
Its value is wholly psychological
– Confidence matters
– Faith matters

Two basic categories of currencies
– Hard ($, €, ¥, £)
– Soft (most of the rest)

Two ways of exchanging currencies:
– Fixed rates: peg your currency to a hard currency
– Floating rates: what the market will bear
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Slide 229
Understanding Exchange Rates

Exchange rates are complicated
– Market forces play a big role
– Politics and markets mix

National accounts matter
– Money flows have consequences
– Globalization accelerates this process
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National Accounts
Governments have bank accounts
 There are important elements of this:

– Official reserves (cash on hand)
– Current Account
– Capital Account
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Slide 231
Current Account
The current account is the sum of the following
Net trade (imports – exports)
 Factor income (interest on reserve accounts)
 Direct transfers (foreign aid and/or
payments)

This can be negative (deficit) or positive
(surplus)
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Capital Account
The capital account is the balance of capital
flows:


Capital inflows (money coming in)
Capital outflows (money going out)
This includes:
 FDI
 Portfolio investment
 All other capital transactions
This can be negative or positive
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Slide 233
National Reserves

You need hard currencies to pay for things,
so you need to have money in the bank

Starting reserves + capital account + current
account = ending reserves

If reserves reach zero you are out of money
– And your life will really, really suck
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Slide 234
The Market Will Bear

Exchange rates are part of the market’s
balancing process
– If money flows out of a country (current and
capital account deficits) there are consequences
• Reserved dwindle
• Downward pressure develops on the currency
– You need more local currency to buy hard currency due to
relative demand
– Over time this lowers the value of the local
currency relative to hard currencies
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Slide 235
Floating vs. Fixed Rates

Fixed Exchange Rate Systems
– Peg the value of a local currency to a hard
currency
– Force the local government to give up control of
monetary policy

Floating Exchange Rate Systems
– The markets determine the value of the currency
– Local economy can shift based on global trends
– Local government will be limited in fiscal and
regulatory policy
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The Unholy Trinity

You cannot simultaneously have:
– Exchange rate stability
– Economic policy flexibility
– Free movement of capital
Governments must balance these factors
 Examples:

– Argentina’s dollar peg and its collapse
– The Euro area and its crisis
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Understanding Money

Pressure on markets and governments is
continuous
– The process never ends
– All elements are mutually dependent
– This makes things complicated

The basics are conceptually simple, but
complex in practice

Major economic issues arise from this
process
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ECONOMIC DEVELOPMENT
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Slide 240
Development in Context

The North industrialized early
– Development environment was very different

Systemic legacies exist today
– Colonialism
– First mover advantages
– Global Governance Architecture

Development today is a significant challenge
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Slide 241
Post-Colonial Development

Context is very different from Northern
Development
– Dependent on North for capital
– Brain Drain
– Colonial economies structured to benefit empire
– MNC's can be more powerful than national
government
– Boundaries drawn by Europeans
– Lack of national identity
– Basic infrastructure lacking
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How to Develop?

Three basic categories of approaches post
1945
– Liberal model
– Import Substitution
– Export-Led Growth
All have strengths and weaknesses
 None has universal record of success

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Slide 243
The Liberal Model

Right policy, right institutions = development
 Based on structural functionalism
 Focus is on right policy
– Private ownership of major industry (privatize if already
state owned)
– Open markets to foreign competition
– Shrink large state sectors
– Embrace the global market

Problems:
– Often imposed from the outside
– Often tried in states without prerequisites for it to work
– Creates dislocation in the short run that meets resistance
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Import Substitution
Emerges from World Systems Theory
 Focus is on opting out of liberal system

– High protective tariffs or other barriers
– Aggregate capital to jump start industry
– Government coordinates policy
– Mix of command and market economics

Problems:
– Never become competitive with world market
– Companies don't learn to compete
– Companies become tool of the state
– Rough transition to free market
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Export-Led Growth

Plays on the margin of liberal system
 Focus is on finding a niche and exploiting it
–
–
–
–
–

Erect barriers to limited area of imports
State coordinates economy without ownership
Actively seek foreign investors – but with limits
Focus is on development of export industry
State manages industrial policy
Problems:
–
–
–
–
–
Promotes authoritarianism in the short run
Hard to maintain in the long run
Companies become over-dependent on the state
Promotes “crony-capitalism” and corruption
Easy to fall into “middle income trap”
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So what works?
All have worked to some degree
 None works across the board
 The most successful states have either been
in specific contexts (Taiwan, South Korea) or
have mixed policies over time (Brazil, India)
 Policy adaptation leading to success has
shifted emphasis to governance

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Globalization & Development

States are increasingly bound by
international pressure
– Need for FDI
– Technology transfers
– Organizational practice

Global institutions set rules
– The Big 3 – IMF, World Bank, WTO
– Host of smaller organizations

Market pressures
– Indirect pressure
– MNC's act as a conduit
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Diverging Developing States
“Developing” states have gotten increasingly
different
 Balkanization of development experience
 Examples:

– “Middle Class” states
– “Hopeful Poor” states
– “Least Developed” states

These groups mean it is harder to have a
common agenda
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Systemic Problems

Developing states face problems from the
international system
– Debt
– Commodity Dependence
– Shift in capital flows
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Today's Development Puzzle
International forces limit options
 Past models have limited success at best
 Many of the obstacles to growth are systemic
 Hard to cooperate on an agenda for all
developing states
 This leads to changes in response

– Regional integration
– Middle powers taking on leadership
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Regional Integration
Creates IGO's, but for specific conditions
 Process faces the cooperation problem, but
on a smaller scale
 Focus is on solving the problems of the
member states
 Example: ECOWAS

– Pool resources for infrastructure and
development
– Harmonize rules
– Act collectively in international negotiations
– Provide collective security
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Rise of Emerging Markets
Larger and more developed states (“Middle
Class” states) are beginning to take a greater
role in IPE
 Cooperation is still a problem, but it can be
overcome if states are willing to bear the cost
 Larger states act as “mini-hegemon” to get
cooperation among developing states
 Works best if there is an IGO that has an open
system of voting
 Examples:

– BRIC’s, Nigeria, Chile
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Prospects for the Future

Development is hotly debated
– Right model
– Right goals
– Sustainability
Divergence creates tension
 Emerging markets wealth is growing
 Tens of millions rising out of poverty
 Where will all this lead?

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Herding cats while riding a unicycle in a snowstorm
GLOBAL GOVERNANCE
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