PUAF 699Y: Globalization of Trade, Development and Competitiveness

PUAF 699Y: Globalization of Trade, Development and Competitiveness

StudentVersion 090111

Fall Semester 2011

1207 VMH

Thursdays: 9:15 – 11:45 a.m.

Instructor:Amb. Susan Schwabtel:301-405-6347 (office)

410-280-5259 (home)

Email/bb:

office:4105 Van Munching Hall

School of Public Policy

Support staff:Carroll Linkinstel:301-405-6330

Email:

Matthew Southerland(GA)Email:

Office hours:By appointment; email ahead. UsuallyThursday afternoons; other days orevenings as necessary.

I.Introduction

“Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

Globalization is not new, though….” The Levin Institute.

This seminar is designed to address many of the contemporary debates and questions surrounding globalization, with particular focus on economic development, international trade and competitiveness. Among the issues to be explored:

Competitiveness and the economic/commercial challenges in the global economy; implications for trade policy, business, and the multilateral trading system.
Development and the impact of globalization on the world’s poor; the role of the emerging economies, particularly China and India; and other growth economies.
Governance of multinational economic institutions in a multipolar world; the G-20 and the WTO, IMF, the World Bank, and others.
The impact of technology – particularly information technology – on trends in globalization, including on trade, competitiveness and development.
Implications of global integration on issues of interest to individual students, such as cyber-security, global supply chains, pandemics, immigration and food security.

Emphasis will be on the issues, challenges and policy choices faced by institutions – governments, businesses, NGOs, multinationals, etc. – and the leaders and policymakers who lead and/or challenge them, in the context of a globalized world. While often grounded in U.S. policy perspectives and choices, there will also be heavy emphasis on other G-20 nations, emerging and developing economies, including LDCs.

The class has no formal prerequisites, but it assumes at minimum basic micro- and macro-economics. The farther along a student is with the MSPP core and ISEP/IDev requirements, the more he or she is likely to get out of this class.

The Economist will be required reading for each class and students will begin each class by discussing recent articles and events relevant to the course. Students are expected to stay current with policy issues and developments during the semester through publications like The Financial Timesand The Wall Street Journal, and are encouraged to bring in timely articles they consider relevant to the class. Examples of anticipated Fall 2011 developments include:

Congressional consideration of U.S. Free Trade Agreements with Colombia, Panama and South Korea (September?)

G-20 Summit hosted by President Sarkozy in Cannes, France (November 3-4)

2011 APEC Summit hosted by President Obama in Honolulu (November 10-12)

II.Course Requirements

Significant reading. (See III)

Class Participation: Students are expected to come to class having read all assigned readings and should use class discussions to show they have both read and thought about the readings. Fellow students – not just the professor – should be the beneficiaries of student engagement in class. At the start of each class, students will share with their colleagues, articles and events from the previous week, as well as recommended readings from the syllabus.

To promote student engagement in class activities, the professor reserves the right to ban the use of laptops and other personal computing devices during the class.

Written Assignments. There will be three relatively shortwritten assignments, including one in lieu of a final exam. Two will be memo-style papers, each absolutely no longer than 1500-1600 words in length (5-6 pages double spaced; use 12 point type). One paper will be the outline of an oral presentation that will also be given out to fellow students. All will be judged both on content and on writing.

Student Debate and Presentations. Students will be making formal presentations to their colleagues on at least two occasions, once as individuals and once in small teams in the form of a debate. These presentations will be relatively brief with additional time for questions/responses. Students may be asked to judge each other’s presentations.

Key terms and concepts. Students are encouraged over the course of the semester to track key terms and concepts related to globalization. These will be discussed during class, and students are expected to be able to articulate their meaning. The professor reserves the right to make the definition of such key terms and concepts the subject of a quiz during the course of the semester.

Guest speakers. We look forward to welcoming Frank Vargo, Vice President for International Economic Affairs at the National Association of Manufacturers (NAM) and at least one other guest speaker this semester.

University Policies. Attached to this syllabus and available on ELMS are several brief paragraphs on University policies, required by the University to be included in all syllabi on the following topics: Academic Integrity and the Honor Pledge, Students with Disabilities, Attendance Policies, Inclement Weather, and Course Evaluation information. Please make sure you have reviewed this material.

Grading. Final grades will be computed as follows:

Class Participation (reading comprehension; thoughtful contributions)25%

Small group debates10%

First memo 20%

Individual presentation plus topic/presentation outline20%

Final Memo/Take Home Exam25%

III.Readings

Required Books/Publications:

Ian Bremmer, The End of the Free Market: Who Wins the War Between States and Corporations? Portfolio, 2010.

Paul Collier, The Bottom Billion, Oxford University Press, 2007

Edward Gresser, Freedom From Want: American Liberalism and the Global Economy, Soft Skull Press, 2007.

Michael Spence, The Next Convergence: The Future of Economic Growth in a Multispeed World, Farrar, Straus and Giroux, 2011

Fareed Zakaria, The Post-American World, Norton, 2009 or The Post-American World: Release 2.0, Norton, 2011.

The Economist: You will be expected to identify, read and discuss several articles from this magazine each week pertaining to globalization. A student rate subscription is highly recommended, but it is also available through McKeldin Library, CISSM Library or on newsstands. (The weekly edition appears on line each Thursday and in print shortly thereafter.) You will NOT be able to come into class and read the article on line during class, however.

May be purchased; available on Netflix; or through McKeldin Library:

PBS video: “The Commanding Heights: The Battle for the World Economy,”(David Ogden Stiers, narrator). View all six - one hour episodes of the PBS documentary based on the book by Daniel Yergin and Joseph Stanislaw, 2002.

One halfof the class willeach read one of the following (allocation TBD, so do not purchase your copy until decisions are made):

Johan Norberg, In Defense of Global Capitalism, Cato Institute, 2003

Dani Rodrik, The Globalization Paradox, Norton, 2011.

Recommended Reading:

Pietra Rivoli, Travels of a T-Shirt in the Global Economy, 2nd Edition, Wiley, 2009.

Recommended reading:

Charles Schumer and Paul Craig Roberts, “Second Thoughts on Free Trade,” New York Times, 6 January 2001 [ AND Michael Kinsley, “Free Trade, But…..”

Frederic Bastiat, ‘The Candlemakers Petition’ from Sophismes Économiques (1845),

October 6:Trade Policy and Global Supply Chains

Assignment:

Attend CISSM Forum from 12:15 pm-1:30 pm. Speaker: Frank Vargo, Vice President, International Economic Affairs, National Association of Manufacturers.

Required reading:

Edward Gresser, Freedom from Want: American Liberalism and the Global Economy, Part II (Pages 115 – 212).

“Globalized Supply Chains and U.S. Policy,” Dick K. Nanto, Specialist in Industry and Trade. January 27, 2010. Congressional Research Service Report 7-5700 R40167.

Greg Linden, Jason Dedrick and Kenneth L. Kraemer, “Innovation and Job Creation in a Global Economy: The Case of Apple’s iPod.” PCIC: Personal Computing Industry Center, UC Irvine Paul Merage School of Business. January 2009.

Recommended reading:

Kenneth Scheve and Matthew Slaughter, ‘A New Deal for Globalization’ in Foreign Affairs (July/Aug 2007).

Susan Schwab, ‘After Doha: Why the Negotiations are Doomed and What We Should Do About It’ in Foreign Affairs (May/June 2011).

Figure 2.3: PTAs [Preferential Trade Agreements] Notified to the GATT/WTO and in Force, by Year of Entry into Force, 1959 -2009 from Rohini Acharya, Jo-Ann Crawford, Maryla Maliszewska, and Christelle Renard, “Landscape,” in Jean-Piere Chauffour and Jean-Christophe Maur, Eds, Preferential Trade Agreement Policies for Development: A Handbook, The World Bank, 2011.

October 13:Development and Poverty Alleviation in a Globalized World

Required reading:

Paul Collier, The Bottom Billion, Oxford University Press, 2007. Pages 1 – 156.

Copenhagen Consensus 2008. Read PDF paper entitled: Copenhagen Consensus 2008 Results. Available on Reserve or as the “Download pdf” link at the bottom of the web page entitled “Outcome – The Experts”.

The Economist.

October 20:Development and Poverty Alleviation, Cont.

Assignment:

Memo due with proposed redesign/modification of U.S. GSP program to better target the Bottom Billion.

Assignment prep:

Note October 27 “Assignment prep” deadline. Please warn instructor if we need to set aside class time to discuss.

Required reading:

Paul Collier, The Bottom Billion, Oxford University Press, 2007. Pages 157 – 195.

Learn about various U.S. (and other) government trade preference, trade capacity building and targeted foreign assistance programs. At minimum, reviewofficial web sites:

(Millennium Challenge Corporation; USG)

(U.S. trade preference programs; USTR)

(The Generalized System of Preferences Program; USTR)

(The Africa Growth and Opportunity Act; USTR)

(trade capacity building data; USAID)

(key WTO legal provisions re: special rights of developing countries)

(potential revisions to EU preference program)

The Economist.

October 27:Geopolitics and “The Rise of the Rest”

Assignment prep:

Deadline for submission of your proposed individual globalization topic and a very brief description of how you intend to present it to colleagues for maximum impact in a minimal amount of time: 5 minute oral “elevator speech”; 1-2 page outline and 1-2 charts/tables or power point slides, if desired. Examples of topics: information technology and autocratic regimes, global health/pandemics, movement of people, resource issues,food security, proliferation of WMD, cyber-security, costs/benefits of globalization to LDCs and how to address them, etc.

In each case, the final oral/written presentation should at minimum articulate (1) the issue, (2) challenges and opportunities; policy options and their relative merits; as appropriate, (3) evidence, data or sources that reinforce your assertions and conclusions, (4) any substantive, institutional and/or process recommendations/conclusions.

Presentation date is November 17. Assume that your topic and approach are fine unless you hear otherwise from the instructor on or before November 3.

Required Reading:

Fareed Zakaria, The Post-American World, Norton, 2009 or The Post-American World: Release 2.0, Norton, 2011. Pages xi – 166 (2009 edition); xi – 183 (2011 edition)

The Economist.

November 3:Geopolitics and Global Governance

Required reading:

Fareed Zakaria, The Post-American World, Norton, 2009 or The Post-American World: Release 2.0, Norton, 2011. Conclude.

Kishore Mahbubani, “A Rudderless World,” The New York Times, August 18, 2011.

The Economist.

Recommended reading:

Joseph S. Nye, Jr., “The Benefits of Soft Power,” Working Knowledge for Business Leaders, Harvard Business School, 8/2/2004.

November 10:Economic Growth in a Multispeed World

Required reading:

Michael Spence, The Next Convergence: The Future of Economic Growth in a Multispeed World, Farrar, Straus and Giroux, 2011. Pages xi – 173.

Additional required reading on G-20 Summit TBD.

The Economist.

November 17:Growth in a Multispeed World, Cont.

Assignment:

Individual globalization topics presentations.

Submit/distribute outlines and tables/charts or power points, as appropriate.

Required reading:

Michael Spence, The Next Convergence: The Future of Economic Growth in a Multispeed World, Farrar, Straus and Giroux, 2011. Conclude – but no need to read pages 174 – 184.

Additional required reading on APEC 2012 Summit TBD.

The Economist.

November 24:Thanksgiving

December 1:Impacting Competitive Advantage: State Capitalism, SOEs, SWFs, Cyber, Indigenous Innovation, etc. etc.

Assignment:

Familiarize yourself with the indices listed in the required reading section below that are related to development and competitiveness (including their subcomponents). Be prepared to discuss in class the scores on various scales for a few countries that interest you.

Required reading:

Ian Bremmer, The End of the Free Market: Who Wins the War Between States and Corporations? Portfolio, 2010. Pages 1 – 147.

World Economic Forum: The Global Competitiveness Index 2010-2011. Pages 1- 45.

Ease of Doing Business (World Bank)

Index of Economic Freedom (Heritage Foundation/The Wall Street Journal)

Corruption Perceptions (Transparency International)

E-Readiness (Economist Intelligence Unit)

Recommended reading:

Michael Spence, ‘Globalization and Unemployment: The Downside of Integrating Markets’ in Foreign Affairs (July/August 2011).

December 8:What Counts? Impacting Competitive Advantage, Cont.

Assignment:

Instructions for final memo, due by close of business on December 15, will be provided.

Discuss course, including advice and constructive criticism re: readings, assignments, etc.

Required reading:

Ian Bremmer, The End of the Free Market: Who Wins the War Between States and Corporations? Portfolio, 2010. Pages 147 – 200.

Anil K. Gupta and Haiyan Wang, “China as an Innovation Center? Not So Fast,” online.wsj.com, Business Asia, July 28, 2011,

Anil K. Gupta and Haiyan Wang, “Beijing is Stifling Chinese Innovation,” online.wsj.com, Business Asia, September 1, 2011,

David Barboza and Kevin Drew, “Security Firm Sees Global Cyberspying,” NYTimes.com, August 3, 2011,

McAfee White Paper:

Additional required reading TBD.

The Economist.

December 15:[Exam Week]

Assignment:

Final memo/take home exam due in hardcopy no later than 5:00pm. Place in Professor Schwab’s box in VMH, Suite 2101 (Dean’s Suite)

Please remember to fill out your on-line course evaluations. Thank you!

V. University Policies

Attendance Policies

University policy excuses the absences of students for illness (self or dependent), religious observances, participation in University activities at the request of University authorities, and compelling circumstances beyond the student's control. Students must submit the request in writing and supply appropriate documentation, e.g. medical documentation. Except in the cases mentioned above, students are expected to attend all sessions since class participation will be graded. For more information, see the University's Attendance and Assessment Policy. Students will not be penalized in any way for participation in religious observances and they be allowed to make up academic assignments that are missed due to such absences. However, it is the student’s responsibility to inform the instructor of any intended absences for religious observances in advance of the projected absence within two weeks of the start of the semester and with a written notification. The request should not include travel time.