PP5311: Globalisation and Public Policy
Semester 1, AY 2011-12
Venue: SR 2-2
Tuesdays: 2-5 pm
Instructor: T. N. Srinivasan
Office: LKS, 2nd Floor
Phone: +65 6601 1180
Office Hours: By Appointment
(Please e-mail Diana at email@example.com an appointment)
Teaching Assistant: Ruchika Singh
Office Hours: TBA
Content of the Course
The course will begin with basic concepts and ideas of globalization and its major aspects that are interrelated. These include global economic integration of national economies through international trade in goods and services, international flows of financial capital, human capital through international migration, technology flows and spread of knowledge; political aspects of globalization ranging from institutions of imperialism to democratization, governance; international flows in religio-cultural and social dimensions; and finally legal, legislative and administration aspects of globalization. The prime focus of globalization in the course will be on economic integration.
The course will briefly discuss waves of globalization in a longer historical perspective but with a sharper focus on the post second world war era, particularly the three decades of 1980-2010. This part of the course will also cover the evolution of international institutions central to globalization such as the IMF, World Bank, UN agencies and GATT/WTO.
Then the discussion will shift to national and global economic outcomes such as growth (aggregate and sectoral) and productivity, poverty and inequality, international trade and finance, education, health and human welfare. Political outcomes with respect to democratization, human rights, discrimination, particularly in its ethno-religious as well as gender dimensions will be covered to the extent feasible. The interrelatedness of economic and non-economic aspects of globalization will be highlighted
The last part of the course will cover public policy as it impacts on and in turn is impacted by globalization. Policies will cover both purely domestic ones on national within each country such as each country’s foreign trade and investment, industry, agriculture, services, labour, education, health, intellectual property protection and international ones, but also multinational ones which several countries undertake in concert. In particular the extent to which the policies of a country enable or inhibit participation in and sharing the benefits/costs of globalization on the one hand and those that limit such participation and sharing of benefits/costs will be explored. Equally to what extent international policies could enable or inhibit would be explored as well.
Assessment of performance
The course meets for 13 weeks & with a one week break at week 6. Students are expected to read the “required readings” marked with an asterisk in the syllabus, and be prepared to discuss them in class. The class will consist of a lecture for the first 90 minutes, and discussion of the readings after a short break. Students expected to actively participate in the ensuing discussion. Class participation measured through attendance and contribution to class discussion constitutes 20 percent of the course grade.
Students are required to submit four short essays critically discussing any reading(s) from the syllabus that were presented in class in the preceding two weeks. These will be due on September 6, September 27, October 11, and October 25, and will constitute 40 percent of the grade.
A final term paper not exceeding 30 pages, 1.5 spacing on any aspect of globalization discussed in class is to be submitted on December 2, 2011. You are encouraged to discuss the topic with the class instructor before you start working on the term paper. Based on overall class enrollment, you may be required to present your term paper in class. The term paper will constitute the remaining 40 percent of the grade.
Weekly Topics and Readings
Basic Concepts and ideas; International Flows of capital (financial and human), goods and services, ideas of science technology, as well as of culture, social and religious formations and finally of law, governance and politics.
Baldwin and Martin (1999)*, Bordo and Eichengreen (2002)*, Bordo et al (1997), Bourguignon and Morrison (2002), Chanda (2007, chs. 6, 8-10), Ferguson (2007), *Lucas et al (2010), *Keynes (1920, chs. I and II pages 11-12), Reinhart and Rogoff (2009), Rodrik (2000), *Srinivasan (2010), Williamson (2002), Wolf (2005).
Global Institutions: Communications, Education and Health, Political, Scientific and Technological; Major Economic Institutions such as the International Bank for Reconstruction and Development (World Bank), International Monetary Fund, General Agreement on Tariffs and Trade (GATT), the still born International Trade Organization (ITO), United Nations Conference on Trade and Development (UNCTAD), United Nations Industrial Development Organization (UNIDO), Word Intellectual Property Organisation (WIPO) and World Trade Organization (WTO).
*Janow et al (2008), *Kesselman (2007),
Srinivasan (2008a, 2007, 1998), *WTO (2010a)
Weeks 5 – 7:
Global Economic Outcomes: Real Growth (GDP and Sectoral), Total Factor Productivity, Trade in goods and services, Financial Flows (short term and long term), multilateral and bilateral, debt and equity, Foreign PhD Education, Inequality and Poverty, Health and Human Welfare, Intellectual Property.
General: *Bhagwati (2004), *Stiglitz (2007, 2002), Sen (2007)
Real Growth: World Bank (2011)
Trade: *Bhagwati (2008), Irwin (2005), *Lucas et al (2010), Maddison (2008a, 2007), Srinivasan (2009a) (2007) (2003), WTO (2010, 2008), World Bank (2011), *Zedillo (2005)
Finance: Bhagwati (2009), Kose et al (2009), Prasad and Rajan (2008),*Rajan (2010), *Reinhart and Rogoff (2008)
Intellectual Property: Srinivasan (2002b).
Migration: Borjas (2005), *Lucas et al (2010), *Pritchett (2008), *Williams (2002)
Poverty and Inequality: *Bourguignon and Morrison (2002), Dollar (2005), IMF (2007), Srinivasan (2008b),(2002a),*Wallack and Srinivasan (2004), *Wade (2004), Winters (2007).
Labour Standards: Brown and Stern (2008), Krugman (1997), Srinivasan (2004a)
Health and Human Welfare: George and Wilding (2002), UNDP (2011), World Bank (2011).
Investment:UNCTAD (2003), World Bank (2006).
Weeks 8 – 10: Globalization and Public Policy, Multinational and National, Purely domestic and cross-border policies, Multilateral and Preferential Trade Liberalization, Globalization and economic stability, Trade Policy instruments and non-trade related objectives, Trade Growth and Development, Off-shoring, Participation and Voice in International Institutions, Doha Round
Bhagwati (2008), *Bhagwati, Panagariya and Srinivasan (2004), Brown and Stern (2008), Dixit (1996) chapter 1 and 2; Panagariya and Srinivasan (1998), *Srinivasan (2009a, 2008a, 2004b), WTO (2010b), Zedillo (2008a, 2008b, 2005).
Weeks 11 – 12: China and India
*Barua and Stern (2010),Emmott (2008), Feldstein (2008), Goldstein and Lardy (2009a, 2009b), Hill (2004), *Maddison (2008b), Srinivasan (2007), *Winters and Yusuf (2007).
Week 13: Open Discussion of Globalization and Public Policy in Asia
Baldwin, Richard and Simon Evenett (2009), The Collapse of Global Trade, Murky Protectionism, and the Crisis: Recommendations for the G20, VoxEU.org Publication http://www.voxeu.org/index.php?q=node/3199
*Baldwin, Richard Philippe Martin (1999). Two waves of globalisation: superficial similarities, fundamental differences, National Bureau of Economic Research Working Paper No. 6904. http://www.nber.org/papers/w6904
Alokesh Barua and Robert Stern (Eds) (2010) The WTO and India: Issues and
Bernanke, Ben (2009) “Reflections on a Year of Crisis”,
Bhagwati, Jagdish (2009) “The Critiques of Capitalism After the Crisis: Myths and Fallacies.” Memo.
*Bhagwati, Jagdish (2008) Termites in the Trading System: How Preferential Agreements Undermine Free Trade, Oxford University Press.
*Bhagwati, Jagdish (2004) In Defense of Globalization, Oxford University Press
Bhagwati, Jagdish and Mathias. Hirsch (eds), The Uruguay Round and Beyond: Essays in Honour of Arthur Dunkel, Berlin Springer,1998..
Bhagwati, Jagdish, Arvind Panagariya and T.N. Srinivasan (2004), “Muddles Over Outsourcing”, Journal of Economic Perspectives, 18(4), Fall, 93 - 114
*Bordo, Michael D. and Barry Eichengreen (2002), “Globalization Now and Then”, Working Paper 8716, Cambridge, MA, National Bureau of Economic Research.
Bordo, Michael, Barry Eichengreen and Douglas Irwin (1997) “Is globalization today really different than globalization a hundred years ago” in Brookings Papers on Economic Activity.
Borjas, George J. (2005) “Globalization and Immigration” in Weinstein(2005).
*Bourguignon, F. and C. Morrison. 2002. "Inequality Among World Citizens," American Economic Review, 92(4): 727-44.
Brown, A.G. and Robert Stern (2008) “What are the Issues in Using Trade Agreements for Improving International Labour Standards,” World Trade Review, Vol7, Discussion Paper 331357.
Chanda, Nayan (2007). Bound Together: How Traders, Preachers, Adventurers, and Warriors Shaped Globalization. New Haven: Yale University Press.
Dinopoulos, Elias, Pravin Krishna, Arvind Panagariya, Kar-yiu Wong (Eds (2008),
Trade, Globalization and Poverty New York,Routledge,
Dixit, A. (1996) The Making of Economic Policy , Cambridge, MA: MIT Press
Dollar, David (2005) “Globalization, Poverty and Inequality since 1980” World BankResearch Observer, August.
Economist (2001) Survey: Globalisation, 27 Sept 2001.
Emmott, Bill (2008). Rivals: How the Power Struggle between China, India and Japan will Shape our Next Decade. New York: Harcourt, Inc.
Feldstein, Martin (2009) “Why the renminbi has to rise to address imbalances,” FinancialTimesOct 29th http://www.nber.org/feldstein/ft102909.pdf
Ferguson, Niall (2007) “Sinking Globalization” Foreign Affairs, March/April http://www.people.fas.harvard.edu/~nfergus/publications/Sinking%20Globalization%20Foreign%20Affairs.pdf
Fogel, Robert W. (2007) “Capitalism and Democracy in 2040: Forecasts and Speculations, Working Paper No. 13, Cambridge, MA, National Bureau of Economic Research.
Friedman, Thomas L. The World Is Flat: A Brief History of the Twenty-First Century. New York: Picador, 2007.
George, Vic and Paul Wilding (2002) Globalization and Human Welfare, New York: Palgrave, pp. 46-113.
Goldstein, Morris and Nicholas Lardy (2009a) “Challenges Facing the Chinese Authorities Under the Existing Currency Regime,” Cho3 in Future of China’s Exchange Rate Policies, Petersen Institute of International Economics.
Goldstein, Morris and Nicholas Lardy (2009b) “Policy Implications and Options,” Cho4 in Future of China Exchange Rate Policies, Petersen Institute of International Economics.
Hill, Hall (2004) ‘Six Asian Economics: Issues and Lessons’. in Douglas H. Brooks and Hal Hill (ed), Managing FdI in a Globalizing Economy: Asian Experience, Palgrave Macmillan.
Huffbauer, Gary and Paul Grieco (2005) “The Payoff from Globalization,” WashingtonPost, June 7th. http://www.washingtonpost.com/wp-dyn/content/article/2005/06/06/AR2005060601508.html
IMF (2007) “Globalization and Inequality,”in World Economic Outlook October 2007, Chp4: http://www.imf.org/external/pubs/ft/weo/2007/02/pdf/text.pdf
Irwin, Douglas A. (2005) Free Trade Under Fire, Second Edition. Princeton: Princeton University Press.
Jackson, Judith and Amrita Narikar and Martin Dauton (Eds) "International Trade and Labor Standards," World Bank handbook Oxford University Press, forthcoming.
Janow, Merit E., Victoria Donaldson and Alan Yanovich. The WTO: Governance, Dispute Settlement and Developing Countries. New York: Juris Publishing, 2008.
Kennedy, D.M and J.D. Southwick (Eds) (2002), The Political Economy of International Trade Law: Essays in honour of Robert Hudec, New York, Cambridge University Press.
Kesselman, Mark (2007) The Politics of Globalization: A Reader, New York, Houghton Mifflin
Keynes, John Maynard, (1920)The economic consequences of the Peace, New York : Harcourt, Brace and Howe, 1920.
Kose, Ayhan M., Eswar Prasad, Kenneth Rogoff, and Shang-Jin Wei (2009)“Financial Globalization and Economic Policies” Working Paper 34, Global Economy and Development, Washington D.C., Brookings Institution and
Krugman, Paul (1997) “In Praise of Cheap labor: Bad jobs at bad wages are better than no jobs at all,” Slate online magazine, March 21. http://www.slate.com/id/1918/
*Lucas, Robert E.B., Lyn Squire andT.N. Srinivasan (Eds) (2010) Global Exchange and Poverty: Trade, Investment and Migration,” (Eds), Edward Elgar Publishing, Chaltenham, UK, 2010, 3-17.
Maddison, Angus (2008a), “Shares of the Rich and the Rest in the World Economy,” Asian Economic Policy Review, 3(1), 67-82.
*Maddison, Angus (2008b), Chinese Economic Performance in the Long-Run, Paris, OECD Development Centre.
Maddison, Angus (2007), Contours of the World Economy 1-2030 AD, Oxford Clarendon Press.
Panagariya and Srinivasan (1998) “New Regionalism: A benign or Malign Growth”, in Bhagwati and Hirsch(1998)
Prasad, Edward S. and Raghuram G. Rajan (2008), “A Pragmatic Approach to Capital Account Liberalization,”Journal ofEconomicPerspectives, Volume 22, Number 3, pp. 149-172
*Pritchett, Lant (2008) “The Future of Migration: Irresistible Forces Meet Immovable Ideas” in Zedillo(2008 a)
*Rajan, Raguram G. (2010) Fault Lines: How Hidden Fractures Still Threaten the WorldEconomy. Princeton: Princeton University Press.
*Reinhart, Carmen M., and Kenneth S. Rogoff (2009) This Time is Different: Eight Centuries of Financial Folly. Princeton: Princeton University Press.
Rodrik, Dani (2011) The Globalization Paradox: Democracy and the Future of the World
Economy,New York: W.W. Norton & Company
Rodrik, Dani (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth. New Jersey: Princeton University Press
Rodrik, Dani (2000) “How Far Will International Economic Integration Go?” Journal of Economic Perspectives. 14:1, pp. 177-186.
Sen, Amartya “How to Judge Globalism” in Kesselman (2007), chapter 2.3
Shiller, Robert J. (2008) The Subprime Solution: How Today’s Global Financial Crisis Happened, and What to do about it , Princeton, Princeton University Press
Srinivasan (2010), “Global Economic, Institutional, Intellectual and Religious Contacts: A Brief History” in Lucas at al (2010)
*Srinivasan (2009a) Trade, Growth and Poverty Reduction : Least Developed Countries, Land locked Developing Countries and Small States in the Global Economic System, New Delhi, Academic Foundation
Srinivasan, T.N. (2009b), "Climate change, India and Copenhagen Summit," Business Line, 11-28-09
*Srinivasan, T.N. (2008a) “The Future of the Global Trading System. Doha Round and beyond,” chapter 8 of Zedillo
Srinivasan, T.N. (2008b) "Globalization and Poverty," in Dinopoulos et al(Eds) (2008), 9-32.
Srinivasan, T.N. (2007) "The Dispute Settlement Mechanism of the WTO: A Brief History and an Evaluation from Economic, Contractarian andLegal Perspectives," The World Economy, 30(7), July 2007, 1033-1068.
Srinivasan, T.N. (2007) "China, India and the World Economy,"Economic and Political Weekly, August 26,2006, 3716-3727.
Srinivasan, T.N. (2005) "Nondiscrimination in GATT/WTO: Was There Anything to Begin with and Is There Anything Left?" World Trade Review 4(1), March 2005.
Srinivasan, T.N.(2004a) “Labour Standards and International Trade” , Labour History, 45(4), November.
*Srinivasan, T.N. (2004b) "Development: Domestic Constraints and External Opportunities from Globalization," Michigan Journal of International Law26(1), Fall 2004.
Srinivasan, T.N. (2004c) “Preferential Trade Agreements at the turn of the century” in Bour, E et al(Eds) 2004.
Srinivasan, T.N. (2002a) "Trade and Poverty in the Poor countries," with Jagdish Bhagwati, originally in The American Economic Review, May 2002. Reprinted in Barua and Stern(2010)
Srinivasan, T.N. (2002b), “TRIPS Agreement” in Kennedy and Southwick (2002).
Srinivasan, T.N. (1998), Developing Countries and the Multilateral Trading System: From the
GATT (1947) to the Uruguay Round and the Future Beyond. Boulder, CO: Westview Press. Revised paperback edition.
*Stiglitz, Joseph E.(2007) Making Globalization Work. New York: W.W. Norton & Company.
*Stiglitz, Joseph E. (2002) Globalization and its Discontents. New York: W.W. Norton & Company.
UNCTAD (2003) World Investment Report 2003: FDI Policies for Development – National and International Perspectives,
*UNDP (2011), Human Development Report , New York, United Nations Development Programme.
*Wade, Robert Hunter (2004), “Is Globalization Reducing Poverty and Inequality?” World Development, Volume 32, Issue 4, pp 567-589; also in Mark Kesselman (2007), chapter 4.2
*Wallack, Jessica and T.N. Srinivasan "Globalisation, Growth and the Poor, originally in De Economist, June 2004. Reprinted in Barua and Stern (Eds.(2010)
Weinstein, Michael (Ed) (2005), Globalization; What’s New, New York, Columbia University Press
*Williamson, Jeffrey (2002) Winners and Losers in Two Centuries of Globalization, Helsinki, World Institute for Development Economics Research (WIDER).
*Winters, L. Alan (2007) “Coherence and the WTO”, Oxford Review of Economic Policy, 23: 461-188.
*Winters, L. Alan and Shahid Yusuf, (Eds), (2007). Dancing with Giants: China, India and theGlobal Economy. Washington, D.C. and Singapore: The International Bank for Reconstruction and Development/World Bank and the Institute of Policy Studies.
Wolf, Martin. Why Globalization Works, New York: Trilateral, 2005
World Bank (2011) World Development Indicators, Washington DC: World Bank
World Bank (2006) World Development Report 2005: A Better Investment Climate for Everyone.
WTO (2010a), Understanding the WTO, (http; // www.wto.org/english/the wto_e/what is_e/tif_e.htm)
*WTO (2010b), ‘Doha Development Agenda: Negotiations, Implementation and Develeopment’,
WTO (2008), World Trade Report 2008: Trade in a Globalizing World, Geneva Switzerland
WTO (2007), World Trade Report 2007, Geneva, Switzerland.
Zedillo, Ernesto (2008a) editor. The Future of Globalization: Explorations in Light ofRecent Turbulence. London: Routledge.
Zedillo, Ernesto (2008b), editor. Global Warming: Looking Beyond Kyoto. Washington, D.C. and New Haven: Brookings Institution Press and Yale Center for the Study of Globalization.
*Zedillo, Ernesto (2005), Patrick Messerlin and Julia Nielson, lead authors. Trade for Development.New York: The United Nations Development Program.