|
|
Global Political Economy (E049)
Course Organization
Wednesdays: 12:15 – 16:00 (double sessions) or 14:15 – 16:00 (single sessions) (see schedule below), Room: SGAS (Barton)
This is an interdisciplinary class open in priority to MIA students but also to graduate students from the economics and political science sections (depending on seat availability) as well as to 4 th year licence students.
The class will run on the following dates and time slots:
- Feb 20, 27: 12h15-16h
- March 19: 14h15-16h
- April 2, 16, 30: 14h15-16h
- May 7, 14, 21: 12h15-16h
Enrolment is limited to a maximum of 24 students.
Instructors:
Cédric Dupont, Professor of Political Science, [CD]
cedric.dupont@graduateinstitute.ch
Office hours: Wednesdays, 10:30-12:00, Rigot 34
Daniel Traca,
Visiting Professor (Professor, Solvay Business School , Université Libre de Bruxelles) [DT]
daniel.traca@ulb.ac.be
Course description
This course will discuss key international political economic issues using a case based approach. Topics include the economic and political challenges of trade liberalization for both industrialized and developing nations, the role of natural resources and foreign direct investment in economic development, regionalism, global capital flows and financial crises, strategic trade and competition between major economic powers, as well as the emergence of China .
Requirements
MIA students (9 credits):
- 3 short assignment reports (2000 words each) on the readings for a given session; a reaction paper should discuss one or more of the questions set out in the syllabus. Reaction papers should be handed to the instructors before the relevant class (either through email or in hard copy at the beginning of the class); each reaction paper is worth 10% of the overall grade;
- 1 case-study “research” paper: 8'000-10'000 words (co-authored); preparation and analysis of a case; the choice of the case must be finalized by March 19; 40% of the grade
- Presentation of the case-study paper in class; 20% of the grade
- Discussant of the case-study paper of another group; 10% of the grade
- Class participation: up to 0.75 pt bonus for regular and active participation in class discussions;
Other students (6 credits):
- 1 case-study research paper: 8'000-10'000 words (co-authored); 50% of the grade
- Presentation of the case-study paper in class: 35% of the grade
- Discussant of the case-study paper of another group:15% of the grade;
- Class participation: up to 0.75 pt bonus for regular and active participation in class discussions;
Readings and resources:
The emphasis of the course is on discussions of specific policy decisions and strategies in connections with the evolving economic and political context in which they occur. It is therefore essential to do the readings before coming to class. Readings are not assembled in a course packet but available online from the webpage of the class or through the electronic resources of the HEID library (in particular A to Z periodicals).
Below we provide some additional references as well as useful websites.
Economics – References:
- Burda, M. and Wyplosz, C., Macroeconomics, A European Text (Third edition).
- Krugman, P. and Obstfeld, M. International Economics: Theory and Policy (latest edition).
Economics and International Political Economy – General Bibliography :
- Cohn, Theodore H. 2007. Global Political Economy: Theory and Practice. New York : Longman (4 th edition).
- Dicken, Peter 2007. Global Shift: Reshaping the Global Economic Map in the 21 st Century. London : Sage.
- Eichengreen, Barry 1996. Globalizing Capital . Princeton: Princeton University Press.
- Eichengreen, Barry 2002. Financial Crises . Oxford : Oxford University Press.
- Frieden, Jeffrey A. and Lake , David A. International Political Economy (latest edition)
- Grieco, Joseph M. and G. John Ikenberry 2003. State Power and World Markets . New York : W.W. Norton.
- Helleiner, Eric 1994. States and the Reemergence of Global Finance: From Bretton Woods to the 1990s. Ithaca : Cornell University Press.
- Luttwalk, Edward 2000. Turbo Capitalism. Winners and Losers in the Global Economy . New York : HarperCollins.
- Ravenhill, John, ed. 2008 (2 nd ed). Global Political Economy . Oxford : Oxford University Press.
- Spero, Joan and Jeffrey Hart 1997. The Politics of International Economic Relations . London : Routledge.
- Stiglitz, Joseph 2002. Globalization and its Discontents , New York : W.W. Norton.
Journals:
International Organization; The World Economy;; Review of International Political Economy (RIPE); Journal of Economic Perspectives; World Development; Journal of Common Market Studies. Economic Policy; Foreign Affairs; Foreign Policy; Third World Quarterly.
Newpapers, Magazines:
The Economist, Financial Times, Wall Street Journal, International Herald Tribune; Far Eastern Economic Review (for Asia ).
International and Regional Organizations :
- Bank for International Settlements
http://www.bis.org/
- International Monetary Fund.
http://www.imf.org/
- Organisation for Economic Cooperation and Development.
http://www.oecd.org/
- UN Economic and Social Council.
http://www.un.org/esa/analysis/papers.htm
- UNCTAD.
http://www.unctad.org/
- World Bank.
http://www.worldbank.org/
- World Trade Organization.
http://www.wto.org/
- Asia-Pacific Economic Cooperation Grouping (APEC):
http://www.apecsec.org.sg/
- Association of Southeast Asian Nations (ASEAN)
http://www.aseansec.org/
- ASEAN Regional Forum:
http://www.dfat.gov.au/arf/arfhome.html
- European Union:
http://www.europa.eu.int/
- MERCOSUR:
http://www.americasnet.com/mauritz/mercosur/
- North American Free Trade Association:
http://www.nafta-sec-alena.org/
Course Topics and Schedule
The instructors will both be present during most sessions. One of them will be the leading speaker (DT or CD). Each session lasts two hours. For days in which we have a double session, there will be a 30 min break between the two sessions.
Part A. Delocalization of production and challenges to economic policy
- Session 1 (20/02) DT - Global Trade and Investment in the 21 st century
- Session 2 (20/02) DT - Social dumping and the challenges to industrialized nations
- Session 3 (27/02) DT – International Competition for Strategic Industries
- Session 4 (27/02) CD - The WTO, Regionalism and Bilateralism I
- Session 5 (19/3) CD - The WTO, Regionalism and Bilateralism II
Part B. Global financial integration and volatility
- Session 6 (2/4) CD - Money and Financial Integration
- Session 7 (16/4) CD - Financial crisis I
- Session 8 - (30/4) CD - Financial crisis II
Part C. The challenge of global development and students' presentations
- Session 9 - (7/5) DT – Constraints do Economic Development in Poor Nations
- Session 10 - (7/5) CD - New cooperation schemes: PPPs, CDMS Session 11 - (14/5) DT - Bottom-up development: Microfinance
- Session 12 - (14/5) PRESENTATIONS BY STUDENTS
- Session 13 - (21/5) DT – Global companies and corporate responsibility in emerging markets
- Session 14 - (21/5) PRESENTATIONS BY STUDENTS
Session 1 (Feb. 20): Global Trade and Investment in the 21 st century - DT
Objective:
In this session, we will introduce the stylized facts that describe the phenomenon of globalization, in terms of the expansion of flows of goods capital and people around the world, and discuss critically the theories that underlie them and predict their contribution for welfare. We will discuss the implications for the world economy
Plan for the class:
- Stylized facts of trade, foreign investment and migration
- Theories of globalization and the gains from trade
Assignments:
The rise in global trade and investment has been striking, over the last twenty years. Prepare a report highlighting the main drivers of globalization and stressing how it differs from previous waves of globalization, and this may have implications for its effects.
Readings:
Further Readings :
- “Two Waves of Globalisation: Superficial Similarities, Fundamental Differences” Richard E. Baldwin, Philippe Martin; NBER Working Paper No. 6904, NBER (1999)
- “Firms in International Trade' Bernard, A. B.; Jensen, J.B.; Redding, S. J.; Schott, P. K.; Journal of Economic Perspectives, Summer 2007, v. 21 (3)
- “Transportation Costs and International Trade in the Second Era of Globalization” Hummels, D.; Journal of Economic Perspectives, Summer 2007, v. 21(3)
Session 2 (Feb. 20): Social dumping and the challenge to Industrialized Countries - DT
Objective:
This session discusses how globalization, in particular the accession to the global economy of several large, fast-growing, developing economies is affecting the economic systems of industrialized nations. We will discuss the gains from trade, but also the costs of free-trade. We will also assess the recent rise in outsourcing, and see what is different, from a historic perspective.
Plan for the class:
- The political and social implications of Free-Trade
- Labour-market problems in Europe and the role of globalization
- Is off-shoring different?
- Policy remedies for the social fracture
Assignment:
In January 2005, the textile markets of industrialized countries became open to exports from developing nations, with the abolition of the Multi Fibber Agreement negotiated in the Uruguay Round. A surge in exports from developing nations, particularly from China , unleashed complaints from trade unions and, as a response, the European Commissions DG Trade began to put pressure on China to lower its exports. After a few round of negotiations China acceded to EU demands and began imposing constraints to its exports to the EU.
Prepare a report on the pros and cons of the imposition of trade barriers to Chinese exports of textiles, in light of the political, social and economic context of Europe.
Readings:
- ‘ Rich Man, poor Man' . The Economist. January 18, 2007
- ‘In the Shadow of Prosperity' . The Economist. January 18, 2007
- ‘Does Third World Growth Hurt First World Prosperity? ' Krugman, P. Harvard Business Review. July-August, 2004.
- ‘Globalisation and the Reform of European Social Models' Sapir, A. Bruegel Policy Brief. November, 2005
Further Readings:
- ‘ Globalization and Its Impact on Labor' Feenstra, R. Presented as the Global Economy Lecture, Vienna Institute for International Economics Studies. February 2007
- ‘ Globalisation: the Great Unbundling(s)' Baldwin, R in Globalisation Challenges for Europe and Finland , Prime Minister's Office, Helsinki , September 20, 2006
- ‘ Will Global Capitalism Fall Again ?' Frieden, J. Brueggel Essay and Lecture Series. 2006
- ‘ Fear of Service Outsourcing: Is it Justified ? Amiti, M and Shan-Jin, W. Economic Policy, 20 (42). 2005
- ‘ Exploding the Myths of Offshoring' Baily, M. and Farrell, D. McKinsey on Economics. Jun, 2004
Session 3 (Feb. 27): International Competition for Strategic Industries -- DT
Objective:
This session intends to discuss the concepts of strategic industries for economic growth, and the role of public policies. The focus will be Europe 's industrial policy efforts, with a special attention to the Airbus project, and its intended and unintended consequences.
Plan for the class:
- Strategic industries
- Government support for strategic industries: the strategist's case
- Empirical evidence and unintended consequences: the realist's case
- European industrial policy
Assignments:
In early March, 2005, and in response to Union protests against the restructuring plan for Europe's ailing aerospace giant, Airbus, talk of a renewed government support began to emerge among policy-makers (IHT, March 5, 2007).
Prepare a report on the pros and cons of supporting the rescue of Airbus by the French Government.
Readings:
- ‘ The Making of a Jumbo Problem '. The Economist. Nov. 11, 2006
- ‘Making sense of the Competitiveness Debate' Krugman, P. Oxford Review of Economic Policy, 12 (3). 1996
- ‘Strategic Trade Policy – Note' Daniel Traca, 2007
- ‘Who is Us?' Reich, Robert. Harvard Business Review. January-February, 1990.
Further Readings:
- ‘Who are EU? Ambiguities in the Concept of Competitiveness' Strange, S. Journal of Common Market Studies, 36 (1). 1998
- ‘State Aids: Making EU Policy Properly Reflect Geography and Subsidiarity' Besley, T. and Seabright, P. Economic Policy, 14 (28). 1999
And, for more on the Airbus saga:
- ‘ Grey days '. The Economist. Feb. 8, 2007
- ‘Home and Abroad' . The Economist. February, 8, 2007
- ‘ Set Airbus Free to Soar' . The Economist. Nov. 11, 2006
- ‘ Super-jumbo trade war ahead '. The Economist. May 4, 2000
- ‘ Reinventing Airbus' , INSEAD 1999
Session 4 (Feb. 27): WTO, Regionalism and Bilateralism I [CD]
Objective:
This session intends to discuss the role and impact of global trade regulation and associated mechanisms on national trade policies. The focus will be on the potential gains for weaker countries of the existence of the global legal frameworks as well as on its limits.
Plan for the class:
- International Trade and the Evolution of Trade Regulation
- How does the WTO work: some selected aspects
- How does WTO regulation affect national economies: case studies
- Reforming the WTO: The Developing Countries' View(s)
Assignment:
In the WTO, a strengthened dispute settlement mechanism allegedly provides weaker countries with an opportunity to challenge bigger members and ensure that they respect their commitments. Yet in practice the mechanism has been used more often by the stronger than by the weaker, possibly reinforcing asymmetries and increasing the severity of constraints on developing countries. Based on the two case studies of “Bed linen for India” and “Dispute over the Indonesian Car Program” (parts A and B), write a report asserting the pro's and con's for developing countries of being a member to the WTO, with a focus on their interactions with large developed countries.
Readings :
Further Readings :
Session 5 (March 19): WTO, Regionalism and Bilateralism II [CD]
Objective:
This session intends to contrast global initiatives in trade with bilateral and regional alternatives. The focus is on Asia where there has been a rush toward the conclusion of bilateral free trade agreements in the last 6 years and on Europe where the regional snowballing effect has been the most spectacular.
Plan for the class:
- Regionalism and ‘global multilateralism': Categorization and Context
- Bilateral and regional: Sisters?
- Action-reaction in the dialectic regional-global
Assignment:
As the prospects for a breakthrough in the Doha round of talks seem bleak, WTO members increasingly turn to preferential trade agreements at the bilateral or regional level. There is clearly some concern that this movement may undermine the stability of the global trade system. Based on the readings below, write a short report assessing whether: a) the European integration trajectory is reassuring for the future of global integration; b) regionalism in Asia is likely to follow a similar path and therefore has the same risks than the European process.
Readings :
- Baldwin, Richard E. 2006. Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade. The World Economy 29(11): 1451-1518.
- Sally, Razeen 2006. Free Trade Agreements and the Prospects for Regional Integration in East Asia . Asian Economic Policy Review 1(2): 306-321.
- Soesastro, Hadi 2006. Regional Integration in East Asia : Achievements and Future Prospects. Asian Economic Policy Review 1(2): 215-234.
- WTO (2007). World Trade Report 2007. Geneva : WTO, pp. 138-141; 304-320, available online at http://www.wto.org/english/ res_e/booksp_e/anrep_e/world_trade_ report07_e.pdf
Further Readings :
- Crawford, Jo-Ann and Roberto V. Fiorentino 2005. "The Changing Landscape of Regional Trade Agreements" WTO Discussion Paper No. 8 (2005), http://www.wto.org/english/ res_e/booksp_e/discussion_papers8_e.pdf
- Dupont, Cédric 1998. European Integration and APEC: The Search for Institutional Blueprints. In Institutionalizing the Asia-Pacific: Regime Creation and the Future of APEC , edited by Vinod K. Aggarwal and Charles Morrison, 351-384. New York : St. Martin 's Press.
- Dupont, Cédric and David Huang 2008 “Containing the PTA Wildfire,” in China, Asia and the World Economy: New Powers, New Problems , edited by Barry Eichengreen, Yung Chul Park and Charles Wyplosz (Oxford University Press, forthcoming).
- World Bank 2005. Global Economic Prospects. Trade Regionalism and Development . Washington : World Bank. http://siteresources.worldbank.org/ INTGEP2005/Resources/gep2005.pdf
Session 6 (April 2): Money and Financial Integration [CD]
Objective:
This session intends to discuss international monetary choices by governments with a focus on the trade-off (if any) between domestic autonomy and international stability. The session will also address the issue of the resilience of an international monetary order to a rapidly challenging economic and political landscape and the related implications on its main actors.
Plan for the class:
- Evolution of international monetary cooperation after 1945
- Heterogeneous choices and global adjustments
- The future of currency hierarchies
Assignment:
A combination of a falling dollar, a rising Euro and a stable is a novel situation in international monetary affairs. Can it last or does it augur the beginning of a radically new era? Express your opinion in a short report based on the readings below.
Readings :
- Corden, Max. W. 2007. Those Current Account Imbalances: A Sceptical View. The World Economy 30(3): 363-382.
- Eichengreen, Barry 2004. Global Imbalances and the Lessons of Bretton Woods, NBER Working Paper No. 10497.
- Helleiner, Eric 2008. The Evolution of the International Monetary and Financial System. In Global Political Economy , edited by John Ravenhill, Oxford : Oxford University Press, pp. 213-240.
Further Readings :
- Dooley, Michael P., David Folkerts-Landau and Peter Garber “An Essay on the Revived Bretton Woods System”, NBER Working Paper 9971
- “Lost in Translation,” The Economist , May 19, 2007, pp. 67-69.
- “Misleading Misalignments,” The Economist , June 23, 2007, p.86.
- “Soft Currency,” The Economist , July 28, 2007, p. 72.
- “The Mandarins of Money,” The Economist , August 11, 2007, p. 61.
- “Losing Faith in the greenback,” The Economist , Dec. 1, 2007, pp.75-76.
- “Revaluation by stealth,” The Economist , January 12, 2008, p. 65.
Session 7 (April 16): Financial crisis I
Objective:
This session focuses on how more integration brings more sensitivity and vulnerability when a crisis erupts in one part of the world. Focus on the crises in the 1990s, with a particular focus on South Korea .
Plan for the class:
- Financial globalization and crises: evolution until the 1990s
- The financial crisis in South Korea : unfolding
- The financial crisis in South Korea : consequences and lessons in comparative perspective
Assignments:
Sunshine was bright on East Asian economies but the storm that came took many by surprise. And the consequences were quite dire. What should we learn from the crisis in the 1990s? Taking the case of South Korea , write a short report that address this question with a focus on both market and non-market actors and strategies.
Readings :
- Hahm, Joon-Ho and Frederic Mishkin 2000. The Korean Financial Crisis: An Asymmetric Information Perspective, Emerging Markets Review 1:21-52.
- Kim, Andrew E. 2004. Social Perils of the Korean Financial Crisis. Journal of Contemporary Asia 34(2): 221-237.
- 'Managing the Asian Meltdown: The IMF and South Korea', Institute for the Study of Diplomacy, School of Foreign Service, Georgetown University, Case 235.
Further Readings :
- Bordo, Michael 2006. Sudden Stops, Financial Crises and Original Sin in Emerging Countries: Déjà Vu? NBER Working Paper Series , 12393.
- Bustelo, Pablo 2000. Novelties of financial crises in the 1990s and the search for new indicators. Emerging Markets Review 1: 229-251.
- Catão Luis A.V. 2006. Sudden Stops and Currency Drops: A Historical Look”, IMF Working Paper No. WP/06/133.
- Haggard, Stephan and Jongryn Mo 2000. "The Political Economy of the Korean Financial Crisis." Review of International Political Economy 7(2): 197-218.
- Pauly, Louis W. 2008. The Political Economy of Global Financial CrisesIn Global Political Economy , edited by John Ravenhill, Oxford : Oxford University Press, pp. 241-272.
- “Gold from the Storm”, The Economist , June 30, 2007, pp. 67-69
Session 8 (April 30): Financial crisis II [CD]
Objective:
Whereas East Asia seems to have fully recovered from the crises in the late 1990s and that sunshine on other financial markets since 2002 had left the IMF without a major role, a major crisis erupted in the summer of 2007 from the core and has since then spread quite broadly. The session discusses the unfolding of the crisis, the reactions of major actors as well as new lessons for the future of financial markets.
Plan for the class:
- Sub-prime crisis: stylized facts in comparative perspective
- Who should we blame?
- When and how to interve?
- Lessons
Assignment:
How much and what type of international regulation vs domestic one should govern financial markets? When should central banks or governments intervene in case of serious distress? Write a short report based on the evidence currently available on the sub-prime crisis.
Readings :
- Buiter, Willem H. 2007. Lessons of the 2007 Financial Crisis, Policy Insights, no.18.
- Eichengreen, Barry 2008. Thirteen Questions about the Subprime Crisis, Berkeley: ms.
- Mauro, Paulo and Yishay Yafeh 2007. Financial Crisis of the Future. Finance and development, December.
- Reinhart, Carmen and Kenneth Rogoff 2008. Is the 2007 Sub-Prime Financial Crisis So Different? An International Historical Comparison. NBER Working Paper Series , 13761.
Further Readings :
- “The Game is Up”, The Economist , August 18, 2007, pp. 59-60.
- “What would Bagehot Do?” The Economist , August 18, 2007, p. 64
- “When to Bail Out?” The Economist , October 6, 2007, p. 86
- “A Dirty Job but someone has to do it”, The Economist , Dec. 15, 2007, pp. 70-71
- “Chain of Fools”, The Economist , Feb. 9, 2008, p. 76
Session 9 (May 7): Constraints to Economic Development in Poor Nations - DT
Objective:
This session will examine the reasons for the lack of economic growth in poor countries. It will assess the efforts undertaken historically to generate development, address their success or lack thereof, and discuss the way forward. We will focus also on the efforts by the World Bank and the IMF, and discuss the relationship between aid and development.
Plan for the class:
- Rich countries, Poor countries and the World Economy
- The theory and practice of development economics over the last 50 years
- Aid and its effectiveness
- The way forward to promote growth
Assignments:
To support development in Africa and the achievement of the Millennium Development Goals, the UK 's Commission for Africa has called for an additional US$ 25 billion per year in foreign aid, to be implemented by 2010. Yet, many experts are critical of this effort. They argue that the recipe to promote growth requires a very different mindset from the traditional approaches supported by the Commission for Africa . The debate is epitomised by the dispute between Jeffrey Sachs and William Easterly, captured in some of the articles below.
Prepare a report on the pros and cons of proving an extraordinary package of financial aid for Africa, as argued for by the Commission for Africa .
Readings :
- ‘ Our Common Interest: A Report of the Commission for Africa ' . Executive Summary and Part1: The Argument. Commission for Africa . March, 2005
-
http://allafrica.com/sustainable/ resources/view/00010595.pdf
- ‘ The Utopian Nightmare' William Easterly. Foreign Policy, Sept/Oct 2005
- ‘Understanding African Poverty: Beyond the Washington Consensus to the Millennium Development Goals Approach' McCord, G; Sachs, J. and Woo, W. T. in Africa in the World Economy – The National, Regional and International Challenges, Fondad. The Hague , 2005
Further Readings :
- ‘ Rethinking Growth ' Zagha et al. Finance &Development , Mar, 2006, 42 (1)
- ‘ Making Aid Work' Heller, P. Finance & Development , Sept 2005, 42 (3)
- ‘ Aid and Growth ' Radelet, S, Clemens, M. and Bhavnani, R. Finance & Development , Sept 2005, 42 (3)
- ‘Rethinking Growth Policies in the Developing World' Rodrik, D. The Luca d'Agliano Lecture. October, 2004.
- ‘The Primacy of Institutions' Rodrik, D. and Subramanian, A. Finance & Development , Jun 2003, 40(2)
Session 10 (May 7): New Cooperation Schemes: PPP, CDM [CD]
Objective:
Plan for the class:
Discussion questions:
Readings :
Further Readings :
Session 11 (May 14): Bottom-Up Development: Microfinance - DT
Objective:
This session will examine the recent initiatives to fight poverty and promote bottom up economic development, particularly those involving private actors. We will discuss the role of the private sector, including civil society and corporate actors. We will focus on the role recently emerged sustainable pro-poor business, discussing in detail its most visible experience: the microfinance sector.
Plan for the class:
- Business at the bottom of the pyramid
- Innovation and development
- The impact of microfinance
- The way forward to bottom-up growth
Assignments:
Recently, “Compartamos”, a Mexican microfinance institution has undergone a very successful IPO, due to an extraordinary return on equity, based on high interest rates. In a short repot, discuss the validity of the “Compartamos” model for the social mission of microfinance.
Readings :
Further Readings :
- “Microfinance and the Market” Cull, R., A. Demigurc-Kunt and J. Morduch, Journal of Economic Perspectives, Forthcoming
- “MICROFINANCE; The hidden wealth of the poor” in The Economist, Nov 3rd 2005
- “The Economic Lives of the Poor” Banerjee, A. and E. Duflo , Journal of Economic Perspectives, Vol 21 (1) Winter 2007
- “The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid” Executive Summary, IFC and World Resources Institute
Session 12 (May 14): STUDENTS' PRESENTATIONS
Session 13 (May 21): Global Companies and Corporate Responsibility in Emerging Markets - DT
Objective:
This session will examine how the reality of emerging markets poses a challenge to multinational corporations caught between the need for profits for their shareholders, the pressures to support global development, and government failures in poor countries. We will address the question of the social responsibility of global business, including its different approaches and their implications.
Plan for the class:
- Oil exploration by global companies and sustainable development in producing countries
- The social responsibility of global business: the business case
- Global companies and risk in developing countries.
Assignments:
In 2001, Exxon-Mobil was caught in a bind on whether or not to start production from its oilfields in Chad . Environmentalists and development activist were arguing that Exxon's effort would damage living standards and the environment in Chad . Others argued that the potential for increased revenue for such poor country could not be wasted, since this would give Chad a chance to provide for more of the basic needs of the population.
Prepare a report presenting the pros and cons for Chad 's people of going ahead with Exxon's investment plan.
Readings :
- ‘ Chad 's Billion-Barrel Oilfield: From Rags to Riches?' INSEAD, 1999
- ‘Wealth and Ill-Health: The boom that only oils the wheels of corruption' . IHT, August, 2004
- ‘Managing Oil Wealth' Eifert, B. Gelb, A. and Borje Tallroth, N. Finance and Development, Mar 2003, 40(1)
- ‘The false Developmental Promise of Corporate Social Responsibility: Evidence from Multinational oil Companies' . Frynas, Jedrzej G. 2005. International Affaires, 81 (3).
Further Readings :
- ‘What Goes Up....” Barnett, S. and Ossowski, R. Finance and Development, Mar 2003, 40 (1)
- ‘ Cursed by Resources or Institutions? ' Mehlum, H.; Moene, K.; Torvik, R.. World Economy, Aug 2006, Vol. 29 Issue 8
- ‘The curse of natural resources'. Sachs, J.; Warner, A. European Economic Review, May 2001, Vol. 45 Issue 4-6
- “ Transnational Corporations, Extractive Industries and Development ” World Investment Report 2007, UNCTAD (2007), part II.
Session 14 (May 21): STUDENTS' PRESENTATIONS
CD/DT, February 2008
Additional information and readings of the course are available upon login at the bottom of this page.
|
