IR364 the political economy of latin american development prof. Carol Wise



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IR364 THE POLITICAL ECONOMY OF LATIN AMERICAN DEVELOPMENT

Prof. Carol Wise

Fall Semester 2012

VKC 102 T-TH 5:00-6:20

Office Hours: Wednesdays 2:30-5:00 Office: VKC 328

Phone: 213-740-2138

E-mail: cwise@usc.edu

This course offers a survey of the main economic development themes and strategies that have prevailed in Latin America over the past century. By analyzing the interplay between politics and economics, as well as the interaction between domestic and international variables, the course explores the dynamic changes that have occurred over this time period. The course will proceed in three parts. Part one spans the period from 1900 to the eruption of the 1982 debt shocks---a critical juncture for Latin America that surpassed the dramatic political and economic impacts of the Great Depression era of the 1930s. Part two analyzes Latin America’s post-1982 transformation from the standpoint of trade liberalization, financial integration, and the widespread transition to democracy in the region. Part three identifies the most pressing issues that remain to be tackled on the contemporary development agenda: the future of regional trade and economic integration, the challenge of inequality, and the debate over how Latin America has been affected and can best cope with China’s remarkable surge in the global economy.

The course requirements include: two in-class exams, a mid-term worth 35 points and a final exam worth 40 points; a 1000-word book review worth 15 points; and, your participation in a group presentation and/or student debate. Your participation in the group presentation or student debate, as well as in class discussions throughout the semester will together count for 10 points of your grade. All assigned readings (minus the required texts by Bulmer-Thomas and Franko) have been posted on Blackboard and should be completed prior to class. The following three texts are required for the course and all are available for purchase at Amazon.Com and at the campus bookstore (I also suggest that you do some cost comparisons on the Campusbooks website: http://www.campusbooks.com/ ). The text listed below by Thorp can be downloaded for free in PDF format at: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=909918

The Economic History of Latin America since Independence, by Victor Bulmer Thomas (Cambridge, UK: Cambridge University Press, second edition, 2003).

http://www.amazon.com/Economic-History-Independence-Cambridge- American/dp/0521532744/ref=sr_1_16?ie=UTF8&s=books&qid=1250183163&sr=1-16



The Puzzle of Latin American Economic Development, by Patrice Franko (New York: Rowman & Littlefield, third edition, 2007). http://www.amazon.com/gp/product/0742553531

Progress, Poverty and Exclusion: An Economic History of Latin America in the 20th Century, by Rosemary Thorp (Washington, DC: Inter-American Development Bank, 1998). This entire book can be downloaded for free at: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=909918

For those wishing to brush up on some basic economic principles, I recommend the following:



Economic Literacy: Basic Economics with an Attitude, by Frederick S. Weaver (New York: Rowman and Littlefield, 2006). http://www.amazon.com/Economic-Literacy-Basic-Economics-Attitude/dp/0742554309/ref=sr_1_1/102-60962549202526?ie=UTF8&s=books&qid=1188259951&sr=1-1

Students with disabilities: Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me as early in the semester as possible. DSP is located in STU 301 and is open from 8:30 a.m.–5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-0776.


CLASS SCHEDULE AND ASSIGNED READINGS

Week 1: Introduction and Overview of the Course

August 28: Overview
Mark Eric Williams. 2012. “Hemispheric Relations in the Twenty-First Century.” In Mark Eric Williams, Understanding U.S.-Latin American Relations (New York, NY: Routledge), pp. 318-355. Recommended reading.
August 30: No Class

THE 20th CENTURY IN HISTORICAL CONTEXT

Week 2: The Political Economy of Development
September 4: Film---“When Worlds Collide: The Untold Story of the Americas after Columbus”
September 6: Defining Development
Patrice Franko. 2007. The Puzzle of Latin American Economic Development (New York: Rowman & Littlefield, third edition), chapters 1 & 2.

Week 3: The “Good” and “Bad” Times

September 11: The 20th Century---1900-1914, the “Good Times”

Rosemary Thorp. 1998. Progress, Poverty and Exclusion: An Economic History of Latin America in the 20th Century (Washington, DC: Inter-American Development Bank), pp. 1-95.

September 13: World War I & the “Bad Times”--- The First Big Shock
Victor Bulmer-Thomas. 2003. The Economic History of Latin America since Independence (Cambridge, UK: Cambridge University Press, second edition), pp. 83-188.

Week 4: The Great Depression and Populist Renaissance
September 18: The Great Depression---The Second Big Shock
Rosemary Thorp, Progress, Poverty and Exclusion, pp. 97-125.
September 20: Brazil---The Estado Novo
Thomas Skidmore. 1967. Politics in Brazil, 1930-1964 (New York, NY: Oxford University Press), pp. 3-47.

Week 5: Populist Renaissance con’t---Mexico & Argentina
September 25: Mexico---Cardenas and the Birth of Single-Party Rule
Roberto Newell and Luis Rubio. 1984. Mexico's Dilemma: The Political Origins of Economic Crisis (Boulder and London: Westview Press), pp. 29-72.
September 27: Argentina---The Rise of Peronism in the 1940s

Jorge Fodor. 1989. “Argentina’s Nationalism: Myth or Reality?” In The Political Economy of Argentina, 1946-83, edited by Guido Di Tella and Rudiger Dornbusch (London: MacMillan), pp. 31-55.

Pablo Gerchunoff. 1989. “Peronist Economic Policies, 1946-55.” In The Political Economy of Argentina, 1946-83, edited by Guido Di Tella and Rudiger Dornbusch, pp. 59-85.

Week 6: World War II---The Third Big Shock
October 2: Latin America and World War II
Victor Bulmer-Thomas, The Economic History of Latin America since Independence, pp. 238-275.

October 4: The Heyday of Import-Substitution Industrialization (ISI)
Patrice Franko, The Puzzle of Latin American Economic Development, pp. 55-75.
Rosemary Thorp, Progress, Poverty and Exclusion, pp. 127-199.

Week 7: “Developmentalism” and the Rise of Authoritarian Rule

October 9: From ISI to Export-led Development
Peter Kingstone. 2011. The Political Economy of Latin America (New York, NY: Routledge), pp. 19-44.
Katherine Sikkink. 1991. Ideas and Institutions: Developmentalism in Brazil and Argentina (Ithaca, NY: Cornell University Press), pp. 29-71.
October 11: Market Experiments and Military Coups

Daniel C. Hellinger. 2011. Comparative Politics of Latin America (New York, NY: Routledge), chapter 7.



Week 8: Mid-term Exam
October 16: Study Day
October 18: Mid-term Exam
THE 1980s: A CRITICAL TURNING POINT

Week 9: The 1982 Debt Crisis---The Fourth Big Shock

October 23: The International Environment Turns Hostile
Victor Bulmer-Thomas, The Economic History of Latin America since Independence, pp. 353-391.

Patrice Franko, The Puzzle of Latin American Economic Development, pp. 77-143.


Rosemary Thorp, Progress, Poverty and Exclusion, pp. 201-239.

October 25: Democratic Transition and the Interplay between Politics & Markets
Juan Corradi. 2003. “Prelude to Disaster: Weak Reform, Competitive Politics in Argentina.” In Post-Reform Politics in Latin America: Competition, Transition, Collapse, edited by Carol Wise and Riordan Roett (Washington, DC: Brookings Institution Press), pp. 105-133.

Kenneth Roberts. 2003. “Party System Collapse amid Market Restructuring in Venezuela.” In Post-Reform Politics in Latin America: Competition, Transition, Collapse, pp. 249-272.

Carol Wise. 2003. “Mexico’s Democratic Transition: The Search for New Reform Coalitions.” In Post-Reform Politics in Latin America: Competition, Transition, Collapse, pp. 159-198.


Week 10: The Advent of Market Reforms in the 1990s
October 30: The “Washington Consensus”
Patrice Franko, The Puzzle of Latin American Economic Development, pp. 145-184.
Peter Kingstone. 2011. The Political Economy of Latin America (New York, NY: Routledge), pp.
Rosemary Thorp, Progress, Poverty and Exclusion, pp. 241-273.
November 1: Some Dissenters---Cuba, Bolivia & Venezuela

Book Reviews Due
Eduardo Silva. 2009. Challenging Neoliberalism in Latin America (Cambridge, UK: Cambridge University Press), chapters 3, 5, 7.
Marifeli Pérez-Stable, ed. 2007. Looking Forward: Comparative Perspectives on Cuba's Transition (Notre Dame, IN: University of Notre Dame Press).


IN THE AFTERMATH OF REFORM
Week 11: Contemporary Development Challenges

November 6: Trade Liberalization & Regional Integration

Patrice Franko, The Puzzle of Latin American Economic Development, pp. 235-283.
Glauco Oliveira. 2007. “What Went Wrong? Brazil, the United States and the FTAA?” In Requiem or Revival: The Promise of North American Integration, pp. 124-143.
Carol Wise. 2009. “The North American Free Trade Agreement,” New Political Economy 14 (1): 135-149.
November 8: Weathering the 2008-09 Global Financial Crisis
Leslie Armijo, Saori Katada, and Carol Wise. 2012. “The Quick Rebound of Emerging markets from the 2008-09 Global Financial Crisis.” Paper presented at the annual meetings of the International Studies Association, San Diego, CA, April 1-4.


Week 12: Contemporary Development Challenges (con’t)
November 13: The Inequality Debate

Ricardo Barros et al. 2010. “Markets, the State, and the Dynamics of Inequality in Brazil.” In Declining Inequality in Latin America, edited by Luis F. Lopez-Calva and Nora Lustig (Washington, DC: Brookings Institution Press), pp. 134-174.

Leonardo Gasparini and Guillermo Cruces. 2010. “A Distribution in Motion: The Case of Argentina.” In Declining Inequality in Latin America, edited by Luis F. Lopez-Calva and Nora Lustig (Washington, DC: Brookings Institution Press), pp. 100-133.

Gerardo Esquivel, Nora Lustig, and John Scott. 2010. “Mexico: A Decade of Falling Inequality.” In Declining Inequality in Latin America, edited by Luis F. Lopez-Calva and Nora Lustig (Washington, DC: Brookings Institution Press), pp. 175-217.
November 15: Student Presentations on Development Challenges


  • Is there a post-Washington consensus on development strategy in Latin America? (1)

  • Immigration and remittances: safety valves or development tools? (2)

  • Poverty versus inequality: does the difference matter? (3)



Week 13: China’s Surge in Latin American Markets
November 20: Barbara Stallings. 20008. “The U.S.-China-Latin America Triangle: Implications for the Future.” In China’s Expansion into the Western Hemisphere, pp. 239-259.

Juan Gabriel Tokatlian. 2008. “A View from Latin America.” In China’s Expansion into the Western Hemisphere, pp. 59-89.



November 22: Thanksgiving

Week 14: The Challenge from China

November 27: Winner and Losers

Francisco E. Gonzalez. 2008. “Latin America in the Economic Equation---Winners and Losers. What Can Losers Do?” In China’s Expansion into the Western Hemisphere, pp. 148-169.

November 29: The Need for a More Compelling Development Strategy?
Robert Devlin. 2008. “China’s Economic Rise.” In China’s Expansion into the Western Hemisphere, pp. 111-147.

Week 15: The Development Scorecard?
December 4: Student Presentations


  • Should the Latin American state intervene more? (4)

  • Is the region succumbing to the “resource curse”? (5)

  • Does there appear to be a decoupling of Latin America and the U.S. in the 2000s? (6)


December 6: Student Presentations


  • Are there other pressing development issues not covered in the course? (7)

  • Are there other pressing development issues not covered in the course? (8)

  • Are there other pressing development issues not covered in the course? (9)



FINAL EXAM: December 11, 4:30-6:30 pm







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