International Economic Relations: Current Issues and Problems - Einzelansicht

In the seminar, we will both look at the historical evolution of the international economic order as well as at contemporary issues. The approach applied is international political economy, but the seminar is open to both students using established international relations approaches as well as to macroeconomists that traditionally examine international economic relations from a different perspective.

Course outline:

Whilst there has been a lot of debate on the future of the global economy and the rise of new players, the debate on the key institutions of Global Economic Governance has not made much progress. Their position in international economic relations and their contribution to the governance of the global economy are far from clear. Despite the resurrection of the International Monetary Fund since 2008, the future role of the IMF may be more limited than its supporters suggest. For example, the Fund continues to be unable to make a meaningful contribution to the resolution of today's key issues, e.g. the debate on China's exchange rate. The member countries of the WTO continue to be unable to finish the Doha-Round of trade negotiations, and in addition preferential trade agreements pose a powerful alternative to the global regulation of trade. The G-20, hailed as the new key forum for Global Governance, fails to deliver and may have turned into a talk shop in a short period of time. In Germany, both policy makers and the public appear to be hit by occasional bouts of scepticism regarding the role of the country in the global economy. But what are the benefits and limitations for Germany?

Outline:

In the seminar, we will both look at the historical evolution of the international economic order as well as at contemporary issues. The approach applied is international political economy, but the seminar is open to both students using established international relations approaches as well as to macroeconomists that traditionally examine international economic relations from a different perspective.

There are four main topics that will be discussed: Finance, trade, governance and Germany's position in the global economy of the 21^st century.

1) On finance:

Over the last 150 years, the shape of the international financial order has changed significantly. Whilst capital flows were not restricted before 1914, they were regulated from then until 1973. What has been the rationale for regulation as well as for non-regulation? What is the mandate of the International Monetary Fund (IMF)? How do the perceptions of financial globalisation differ between developing countries and the OECD-economies? How do the two recent crises affect the future of global financial governance?

2) On trade:

International in goods and (increasingly) in services has been a major force in international economic relations. The World Trade Organisation WTO governs these processes. Simultaneously, the WTO is criticised for being an burden for the poor and the rich: Some argue the WTO is facilitating the exploitation of developing countries, others argue the WTO permits the undermining of social standards in the North. Furthermore, the WTO appears to be increasingly undermined by competing regimes, in particular by preferential trade agreements. Why are these highly bureaucratic and administratively complex trade agreements so popular?

3) On governance:

The G-20, created as a finance ministers meeting after the Asian crisis and elevated to leaders' level with the first G-20 summit in November 2008, has undoubtedly the potential to become the key institutions for Global Economic Governance. Yet, the G-20 is approaching its third years of existence with little glory. What are the reasons for the apparent weakness of the G-20? Is the G-20 the appropriate answer to the rise of the BRICs? Are the transatlantic powers prepared for the changing power distribution? What are the prospects for the emergence of a new international economic order?

4) Germany in the global economy of the 21^st century

Whilst being a successful exporter, Germany continues to be sceptical about globalisation. Both citizens and policy makers are asking themselves whether the future will bring greater risks or greater rewards from the further division of labour and increasing capital flows.

Learning objectives:

Students will analyse the history of international economic relations as well as very recent debates on issues related to trade, finance and governance. They will understand the inherent weaknesses of cooperation processes and will be able to apply these skills in the evaluation of current and future issue of Global Economic Governance. Students will analyse the legitimacy of the main institutions of economic governance (IMF, WTO) and will discuss potential avenues for the improvement of the perception of the institutions.

Expectations and requirements:

The course will be taught in English. Thus, fluency in English is essential.

1.  Each participant will have to make one presentation in the seminar (30 minutes) and participate actively in the debate. In addition, an academic essay of 6.000 words is expected (in English or German).

2. Composition of assessment: Presentation and essay 50% each.