The Public Diplomacy of Trade

The Public Diplomacy of Trade

PUBD 524, Spring 2018

University of Southern California

Dr. Pamela K. Starr

DRAFT

Office: STO 99Office Phone: 213-740-4122

Office Hours:Email:

Course Description and Content

The global debate on trade has changed over the past 25 years. For decadesfollowing World War II, Western European nations, the United States, and Japan cautiously expanded trade and economic integration under rules established by the General Agreement on Tariffs and Trade. At the same time, developing and eastern bloc countries used a protectionist trade strategy to insulate their domestic economies from foreign competition. This situation changedrapidly and markedly during the 1990s. Eastern Europe and Latin America led the way as developing economies embraced freer trade, and were soon followed by China and India. Even as voices decrying the shortcomings of free trade grew louder at the close of the twentieth century, agreements to increase trade among developed and developing countries continued to be signed. This dynamic was particularly pronounced in Latin America where the 1990s were marked by an explosion of regional free trade agreements while the early 21st century sawthe creation of an alternative (albeit ultimately short-lived), non-market trading regime, the Bolivarian Alternative for the Americas. China, meanwhile, pursued a strategy of authoritarian development coupled with managed global trade, the so-called Bejing Consensus, cautiously at first but much more confidently since 2009. Eastern Europe, which enthusiastically joined the European Union at the outset of the century, has grown increasingly dissatisfied with the EU’s market democracyproject. And now the United States, the United Kingdom, and potentially other Western European countries seem to be questioning the entire post-World War II liberal economic project.

This course looks at these developments from the perspective of Public Diplomacy. It looks at trade agreements as a tool of public diplomacy and considers the use of soft power and social power (aid packages) in the formulation and maintenance of trade agreements since the early 1990s. It is obvious that the embrace of freer trade – gradually in post-World War II Europe and rapidly in the developing worldat century’s end – and the recent growth of alternatives to market-based free trade cannot be understood independent of hard power drivers. What is less obvious is the central role of the public diplomacy strategies employed by a wide variety of actors in the global trade debate. This is the piece of the story we will emphasize.

The objective of the course is teach students the theory and practice behind the process of socializing leaders and publics to new ideas. To achieve aim, the course uses the idea of free trade (and from time to time democracy), and its inherently good (or bad) nature, as its core case study. On the foundation of this knowledge, students will design a public diplomacy strategy to socialize a specific public to thinking differently about trade.

The class unfolds in four phases. The first sixclass sessions set the stage by introducing 1) the theoretic roots of the free trade debate, 2) theories of socialization, 3) the rise of the European Union and the post-World War II international trading order, and 4) the “victory” of free trade over protectionism as the dominant global trade strategy in the early 1990s. The second and third sections of the course ask students to use theory to analyze cases of socialization to new ideas about trade and the use of public diplomacy to achieve this end. The second section looks at the expansion of free trade (and democracy) in Latin America and Europe in the late 20th century. The third section looks at the backlash to free trade beginning in the late 20th century and deepening in the early 21st century, and the associated rise of alternative models of trade. The final session considers the future of trade and the broader liberal world order.

Course Requirements

Attendance and Class Participation:

All students are required to have completed the assigned readings before class each week and to participate in the class discussion. Students writing a review paper for that week will begin the discussion and the rest of the class must be prepared to join in the discussion. Since participation in these discussions is an integral portion of the course, attendance is critical to students successfully completing the class.

Short review papers/presentations:

Between February 23 and April 13, each student will write twoshort papers (1250-1500 words) on the assigned readings. Each paper should offer a critical analysis of the main arguments presented in several key readings in this body of work, highlighting the role of public diplomacy and socializationin the free trade debate, and drawing conclusions (making a clear argument) about the relative effectiveness of these policy tools. Paper topics will be assigned inthe first class.

Term Project:

Students will write a policy memo proposing a public diplomacy strategy designed to improve the image of either free or fair trade in a specified public. The memo must be about 20 pages long and preceded by a 300-500 word executive summary. It must describe the current situation, explain how and why it developed, and based on this devise a public diplomacy strategy to socialize the identified public to thinking differently about trade. The strategy should be both creative and realistic, taking into account the real challenges posed by the policy context in which the strategy would have to be implemented. The final version of the memo will be presented orally on the final day of class (April 27), accompanied by a power point presentation.

Grading

Participation:20%

Short Papers:30% (15% each)

Research Project:40%

Presentation:10%

Books Recommended for Purchase

Frederick S. Weaver, Economic Literacy: Basic Economics with an Attitude, 3rd ed., Rowman and Littlefield, 2011.

Jeffry A. Frieden, Global Capitalism, W.W. Norton, 2006 (you will be required to read 6 of 20 chapters).

Topics and Readings

January 10: Introductions and Introductory Discussion

Introduction to the course and introduction of participants.

Discussion: Is the liberal world order at risk?

Readings:

Michael J. Mazarr, “The Once and Future Order: What Comes After Hegemony?”, Foreign Affairs, January/February 2017.

Joseph Nye, “Will the Liberal Order Survive? The History of an Idea”, Foreign Affairs, January/February 2017.

Theoretic and Historic Foundations for Analysis

January 19: The Market

Frederick S. Weaver, Economic Literacy: Basic Economics with an Attitude, 3rd ed., Rowman and Littlefield, 2011, introduction and chapters 1-5 (pp. 1-202).

“Can Markets be too Free?”, The Economist, 2 January 2017.

January 24: The Market Debate

Andrea Seebrook, “On Capitol Hill, Rand's 'Atlas' Can't Be Shrugged Off”, NPR, 14 November 2011.

Tamara Keith, “Austrian School Economist Hayek Finds New Fans”, NPR, 15 November 2011.

David Welna, “Keynes’ Consuming Ideas on Economic Intervention”, NPR, 16 November 2011.

Pamela Starr. “Perfecting Reform in Latin America: What Role for the State?” Latin American Research Review, 37:2 (2002): 183-199.

Jeffry Frieden. "Method of Analysis: Modern Political Economy” in Jeffry Frieden, Manuel Pastor Jr., and Michael Tomz, eds. Modern Political Economy and Latin America: Theory and Policy, Westview Press, 2000: 35-43. (Bb)

Douglass C. North’s Nobel Prize Lecture, “Economic Performance through Time”, 1993. (Bb)

January 31: The Diffusion of Ideas

“A sensible starting point for public diplomacy is…a generous dose of modesty about one's own capacity to influence what others think.” --JanMelissen

“Socialization” handout. (Bb)

G. John Ikenberry and Charles Kupchan, “Socialization and Hegemonic Power”. International Organization 44:3 (Summer 1990): 283-315.

Kurt Weyland, Bounded Rationality and Policy Diffusion: Social Sector Reform in Latin America, Princeton University Press 2006, chapters 1-2. (Bb).

Jeffrey T. Checkel, “International Institutions and Socialization in Europe”, in Jeffrey T. Checkel, ed., International Instituions and Socialization in Europe, Cambridge, 2007: 3-27. (Bb)

Hidden Brain Podcast, “When it Comes to Politics and Fake News, Facts aren’t Enough”. NPR.

February 7: Public Diplomacy and the Origins of the Post-World War II LiberalOrder

Weaver, chapter 6 (pp. 203-235).

Jeffry A. Frieden, Global Capitalism: Its Fall and Rise in the Twentieth Century, W.W. Norton, 2006: chapters 11, 12, & 15 (Reconstruction East and West, The Bretton Woods System in Action, & The End of Bretton Woods). (Bb)

Geir Lundestad, “Empire by Invitation? The United States and Western Europe, 1945-1952”, Journal of Peace Research, 23:3 (Sep., 1986), pp. 263-277.

Michael J. Hogan, “American Marshall Planners and the Search for A European Neocapitalism”, The American Historical Review, 90:1 (Feb. 1985): 44-72. (Read the introduction and conclusion and then skim/read the body of the essay as needed to clarify the argument in your mind)

G. John Ikenberry, “A World Economy Restored”, International Organization 46:1 (Winter 1992): 289-321.

Eric Helleiner, “Reinterpreting Bretton Woods: International Development and the Neglected Origins of Embedded Liberalism”, Development and Change 37:5 (2006): 943-967.

February 14: Global Liberalism’s 20th Century Triumph over Protectionism

Navan Chanda, “What is Globalization?”, YaleOnline, November 2002 and Globalization 101, “What is Globalization”, Levin Institute. (Bb)

Jeffry Frieden, Global Capitalism: Its Fall and Rise in the Twentieth Century, W.W.Norton, 2006, chapters 16, 17 & 18 (Crisis and Change, Globalizers Victorious, & Countries Catch Up).

Pamela K. Starr, “Pax Americana in Latin America: The Hegemony behind Free Trade”, in Jorge I. Dominguez and Kim Byung-Kook, eds., Between Compliance and Conflict: East Asia, Latin America, and the “New” Pax Americana, Routledge, 2005: 77-109.

Fourcade-Gourinchas, Marion and Sarah Babb. 2002. “The Rebirth of the Liberal Creed: Paths to Neoliberalism in Four Countries.” American Journal of Sociology 108(3): 533-79.

Glen Biglasier, “The Internationalization of Chicago’s Economics in Latin America”, Economic Development and Cultural Change 50 (2001): 269-286.

Sarah Babb. Managing Mexico: Economists from Nationalism to Neoliberalism. Princeton University Press, 2001, chapters 1, 5, & 7. (Bb)

Expanding Free Trade in Europe and the Americas

February 21: Expansion of the European Union after the fall of the Berlin Wall

If you are unfamiliar with the history and structure of the EU, I encourage you to read ( but only skim pages 31-44) the first chapter of Paul Taylor’s, The European Union in the 1990s (Oxford, 1996) so you understand the historical and structural context within which EU expansion took place (it is posted on Bb).

But BEFORE you do that, I strongly encourage you to watch these two video clips on EU history and EU enlargement They are fun and informative.

Alan Mayhew. Recreating Europe: The European Union’s Policy towards Central and

Eastern Europe. Cambridge: Cambridge University Press, 1998: chapter 1, pp. 3‐20. A history of the accession process that provides the factual foundation for ensuing analytic articles. (Bb)

Luciano Bardi, Martin Rhodes, Susan Senior Nello, “Enlarging the European Union: Challenges to and from Central and Eastern Europe”,International Political Science Review, 23:3 (July 2002): 227-233. A brief overview of the drivers of enlargement.

Heather Grabbe. “European Union Conditionality and the Acquis Communautaire.” International Political Science Review, 23:3 (July 2002): 249‐268.

Frank Schimmelfennig, “Strategic Calculation and International Socialization: Membership Incentives, Party Constellations, and Sustained Compliance in Centraland Eastern Europe”, in Jeffrey T. Checkel, ed., International Institutions and Socialization in Europe, Cambridge, 2007: 31-62(Bb). Skim the case studies.

Robert E. Norton, The American Out to Save Poland, Fortune Magazine, 29 January 1990.

Beata Ociepka and Marta Ryniejska, “Public Diplomacy and EU Enlargement: The case of Poland,” Discussion Papers in Diplomacy, Netherlands Institute of International Relations, 2005. (Bb)

György Szondi, “The role and challenges of country branding in transition countries: The Central and Eastern European experience,” Place Branding and Public Diplomacy 3, 8-20 (28 February 2007).

February 28: Free Trade in the Americas

Socializing to the Idea of Free Trade

Richard Feinberg and Javier Corrales, “Why did it take 200 years? The Intellectual Journey to the Summit of the Americas”, in Richard Feinberg, Summitry in the Americas, Institute for International Economics, 1997: 7-38. (Bb)

Golob, Stephanie R. “Beyond the Policy Frontier: Canada, Mexico, and the Ideological Origins of NAFTA”, World Politics, 55:3 (April 2003), 361-398.

Pamela K. Starr, “The Two “Politics of NAFTA” in Mexico”, Part 1 ONLY. (Bb)

Soledad Loaeza. “The Changing Face of Mexican Nationalism”. In M. Delal Baer and Sidney Weintraub eds. The NAFTA Debate: Grappling with Unconventional Issues, Lynne Rienner, 1994: 145-157. (Bb)

Selling Free Trade: Pro

Howard Wiarda. “U.S. Domestic Politics”. In M. Delal Baer and Sidney Weintraub eds. The NAFTA Debate, Lynne Rienner, 1994: 117-143. (Bb)

Barbara Franklin, “The NAFTA: Challenging Its Critics”, Speech given at the heritage Foundation, May 6, 1993.

Selling Free Trade: Con

Ralph Nader, et al. The Case Against Free Trade: GATT, NAFTA, and the Globalization of Corporate Power, North Atlantic Books, 1993: chapters 1 (Nadar), 4 (Brown), & appendix 2 (Citizens Trade Campaign). (Bb)

Richard Rothstein, “Exporting Jobs and Pollution to Mexico”, in New Perspectives Quarterly 8:1 (Winter 1991).

Byron Dorgan. “The NAFTA Debate that Never Was”, Columbia Journalism Review, Jan. 1994.

NAFTA Debate. (Bb)

Carlos Salinas, Address before a joint session of the US Congress, 4 October 1989. (speech begins at time stamp 19:00. Most significant parts are 23:00-38:00; 41:40-44:25 (skim 44:25-54:20 on migration and the environment); 54:20-57:30).

President George H.W. Bush, “Remarks Announcing the Enterprise for the Americas Initiative,” 27 June 1990.

The President's News Conference With President Carlos Salinas de Gortari of Mexico in Houston, Texas, 7 April 1991.

Brian Mulroney, Remarks at NAFTA signing ceremony, San Antonio, Texas, 7 October 1992. (Bb)

Backlash to Free Trade and the Rise of Competing Models

March 7: NGOs: Anti-Globalization, Labor Rights and Fair Trade

Jeffry Frieden, Global Capitalism: Its Fall and Rise in the Twentieth Century, W.W.Norton, 2006, chapters 19 & 20: 435-472. (Bb)

Laurence E. Rothenberg, “Globalization 101: The Three Tensions of Globalization”, Occasional Paper 176, American Forum for Global Education (2002-03).

Margaret E. Keck and Katheryn Sikkink. Activists Beyond Borders: Advocacy Networks in International Politics. Cornell University Press, 1998: chapter 1. (Bb)

Layna Mosley, “Labor Rights in the Age of Global Supply Chains”, Current History, January 2017.

“The New Trade War”, Economist (4 December 1999) and Pauline Hwang, “A View from Ground Zero”, The Globe and Mail (3 December 1999). (Bb)

Chakravarthi Raghavan, “After Seattle, world trade system faces uncertain future”, Review of International Political Economy 7:3 Autumn 2000: 495–504.

Walden Bello, “Battling Barbarism”, Foreign Policy, 132 (Sep.-Oct. 2002): pp. 41-42.

Immanuel Wallerstein, “What have the Zapatistas Accomplished?” 2008.

Case Studies:

Aaronson, Susan A. and Zimmerman, Jamie M., “Fair Trade? How Oxfam Presented a Systemic Approach to Poverty, Development, Human Rights, and Trade”,Human Rights Quarterly(November 2006), pp. 998-1030.

OxFam website on its Fair Trade campaign,

March 14: No Class. Spring Break.

March 21: Backlash in Latin America

Michael Reid, “The Rise and Fall of the Washington Consensus”, in Forgotten Continent: The Battle for Latin America’s Soul, Yale University Press, 2007: chapter 6.

Paul Rich, “NAFTA and Chiapas”, Annals of the American Academy of Political and Social Science, Vol. 550, (Mar., 1997), pp. 72-84.

Pamela Starr, "Argentina: Anatomy of a Crisis Foretold", Current History 102 (February 2003).

Larry Rohter, “A Fiscal Crisis Paid in Credibility”, New York Times, 25 December 2001.

Paul Krugman, “Argentina’s Crisis is a US Policy Failure”, New York Times, 2 January 2002.

James E Mahon Jr., “Good-bye to the Washington Consensus?”Current History,102(Feb 2003).

Sean Burges. “Building a Global Southern Coalition: The Competing Approaches of Brazil’s Lula and Venezuela’s Chavez”, Third World Quarterly 28:7 (2007): 1343-1358.

Teresa Arreaza. “ALBA: Bolivarian Alternative for Latin America and the Caribbean” (2004).

David Rhode, “The Brazilian Economic Model”, New York Times, 4 November 2012.

Excerpts from Latin Barometer Surveys. (Bb)

March 30: Backlash in the United States(readings to be added as needed)

Paul Blustein, “NAFTA: Free Trade Bought and Oversold”,Washington Post,
September 30, 1996

Peter Kilborn, “Unions Gird for War Over Trade Pact”, New York Times, 4 October 1993.

Patrick J. Buchanan, “Mexico: Who Was Right”? New York Times, 25Aug 1995.

Robert B. Zoellick “Free Trade and the Hemispheric Hope”, Prepared Remarks, Council of the Americas, Washington, DC (May 7, 2001). (Bb)

Cynthia English, “Opinion Briefing: North American Free Trade Treaty”, Gallup, 12 December 2008.

Carla Hills, “NAFTA’s Economic Upsides”; Michael Wilson, “NAFTA’s Unfinished Business”; and Jorge Catañeda, “NAFTA’s Mixed Record”. Foreign Affairs, 93:1 (Jan/Feb 2014).

David Greenberg, “An Intellectual History of Trumpism”, Politico, 11 December 2016.

Barry Eichengreen, “The Populist Turn in American Politics”, Current History, January 2017: 24-30.

Joe Nocera, “Don’t Blame Nafta”, New York Times, 24 January 2016.

Harley Shaiken, “Annals of free trade: Will TPP learn from our NAFTA past, or are we condemned to repeat it?” The Conversation, 28 May 2015.

Jackie Calmes, “Who Hates Free Trade Treaties? Surprisingly, Not Voters”, New York Times, 21 September 2016.

Additional Polling Data.

N. Gregory Mankiw, “Why Voters Don’t Buy it When Economists Say Global Trade is Good”, New York Times, 31 July 2016.

April 4: European Identity versus Backlash in Europe(readings to be added as needed)

Katrin Bennhold, “Quietly Sprouting a European Identity”, New York Times, 26 April 2005.

Francis Fukuyama, “European Identities, Part I & II”, The American Interest, January 2012.

Emmanuel Sigalas, “Cross-Border Mobility and European Identity”, European Union Politics, 11:2 (2010): 241-265.

Catherine E. de Vries and Kees van Kersbergen, “Interests, Identity and Political Allegiance in the European Union”, Acta Politica, 42 (2007): 307–328.

Theresa Kuhn, “Individual Transnationalism, Globalisation and Euroscepticism: AnEmpirical Test of Deutsch’s Transactionalist Theory”, European Journal of Political Research 50 (2011): 811–837.pr_

Erik Jones, “Europe’s Threatened Solidarity”, Current History, March 2012. (Bb)

The Economist, “How to Save Europe/Creaking at 60”, March 25, 2017. (Bb)

Brendan O’Leary, “Europe’s Embers of Nationalism”, Current History, March 2015. (Bb)

Joanna Berendt,“Poland’s President Approves Controls on State Media, Alarming E.U. Leaders”, New York Times, 7 January 2016.