Table of Contents

List of Abbreviations and Acronyms ix Preface xi ONE. The New Global Economic Order 3 Changes in the World Economy 5 Intellectual Perspectives 13 My Perspective: State-centric Realism 15 Purpose of Economic Activity 23 Conclusion 24 TWO. The Nature of Political Economy 25 What You Seek Is What You Find 31 The Nature of an Economy 38 Embeddedness of the Economy 41 Conclusion 45 THREE. The Neoclassical Conception of the Economy 46 The Discipline of Neoclassical Economics 46 Nature of a Market 54 Method of Comparative Statics 57 Intellectual Limitations 60 Economists and Public Policy 69 Comparison of Economics and Political Economy 74 Conclusion 76 FOUR. The Study of International Political Economy 77 Distribution of Wealth and Economic Activities 78 National Autonomy 80 The Politics of International Regimes 82 Theory of Hegemonic Stability 93 Governance of the Global Economy 97 Conclusion 102 FIVE. New Economic Theories 103 Change and Neoclassical Economics 104 World View of the New Theories 106 The New Theories 108 Conclusion 127 SIX. The Political Significance of the New Economic Theories 129 National Governments and Domestic Economies 129 Oligopoly and Power in Economic Outcomes 132 Technological Innovation 135 Convergent and Divergent Economic Growth 141 Conclusion 147 SEVEN. National Systems of Political Economy 148 Differences among National Economies 149 The American System of Market-Oriented Capitalism 150 The Japanese System of Developmental Capitalism 156 The German System of "Social Market" Capitalism 168 Significance of National Differences 174 Is One System Superior to the Others? 175 Do Nations Compete with One Another? 180 Convergence, Harmonization, or Mutual Recognition? 183 Conclusion 195 EIGHT. The Trading System 196 The Debate over Free Trade 198 Trade and the Economy 202 Revisions of Conventional Trade Theory 206 Postwar Trade Regime 217 The Uruguay Round and World Trade Organization 221 New Threats to an Open Trading System 224 Conclusion 232 NINE. The International Monetary System 234 The Postwar International Monetary System 235 The End of Fixed Exchange Rates 238 The Financial Revolution and Monetary Affairs 239 Embedded Technical and Political Issues 242 Devising an International Monetary System 248 Reform of International Monetary Affairs 250 Unity or Fragmentation of the Monetary System? 255 Few or Many National Currencies? 258 Conclusion 259 TEN. The International Financial System 261 Partial Globalization of International Finance 261 Nature of Financial Crises 264 The East Asian Financial Crisis 267 Controversy over Regulation of International Finance 271 Conclusion 277 ELEVEN. The State and the Multinationals 278 Explanations of FDI and the MNC 279 The Multinationals and the International Economy 289 Increased Regionalization of Services and Manufacturing 292 Debate over the MNC and the Nation-State 294 An International Regime for FDI and MNCs 300 Do Global Corporations Pose a Threat? 302 Conclusion 304 TWELVE. The State and Economic Development 305 The Rise and Demise of Development Economics 306 Triumph of Neoliberalism 309 The Debt Crisis and Structural Adjustment 313 Theory of the "Developmental State" 316 The East Asian Miracle Project 321 The East Asian Financial/Economic Crisis 329 The Future of the Developmental State 331 The Transitional Economies 333 Conclusion 339 THIRTEEN. The Political Economy of Regional Integration 341 Economic Theories 344 Political Theories 348 An Eclectic Approach 358 Conclusion 361 FOURTEEN. The Nation-State in the Global Economy 362 The Limited Nature of Economic Globalization 364 Alleged Consequences of Economic Globalization 366 Effectiveness of Macroeconomic Policy 369 The Need for a Historical Perspective 375 Conclusion 376 FIFTEEN. Governing the Global Economy 377 Neoliberal Institutionalism 379 The New Medievalism 390 Transgovernmentalism 398 Governance for What? 400 Conclusion 402 Select Bibliography 403 Index 411

Promotional Information

Robert Gilpin, the dean of American students of international political economy, has provided us with a masterful guide to the state of the world economy and how it can be explained. Current developments are placed in historical and theoretical perspective. In a book that is deeply thought as well as deeply researched and carefully argued, Gilpin has produced a landmark study. -- Robert Jervis, Columbia University Global Political Economy undertakes a comprehensive survey of major aspects of the world political economy from the perspective of a leading 'realist' political scientist. Robert Gilpin emphasizes the continuing importance of the state and the great impact of variations in state structure and policy around the world. His book is an impressive attempt to synthesize economic and political analysis to understand the forces affecting globalization, state policy, and the results of their interaction for economic development and international trade, investment, and finance. -- Robert O. Keohane, Duke University

About the Author

Robert Gilpin is the Eisenhower Professor of Public and International Affairs Emeritus at Princeton University. He is the author of many books, including The Political Economy of International Relations and The Challenge of Global Capitalism: The World Economy in the Twenty-First Century (both Princeton).

Reviews

"An extremely well written, lucid, and persuasive analysis of international economic developments and their political implications and results, solidly grounded in history."--Arthur I Cyr, Orbis "[A] scholarly, theoretical framework for examining how markets and the policies of nation-states determine the way the world economy functions."--Booklist "Global Political Economy promises to be another classic and a much-consulted addition to academic library bookshelves."--Choice "Robert Gilpin has written an important book... Although he eschews polemics and writes in a low-key, analytical style, his forceful points serve as a needed antidote to Thomas Friedman's The Lexus and the Olive Tree and other facile works about the subject."--Christopher Layne, The Atlantic Monthly "In this magisterial study Gilpin... shows he is second to none in his capacity to integrate political with economic analysis, and illuminate our understanding of the world political economy with historical and theoretical insights, devoid of the jargon that characterizes much contemporary IPE literature... Gilpin's is an authoritative, but modest voice of common sense."--Martin Rhodes, International Journal of Financial Economics "Global Political Economy is an excellent book. It represents a major and successful updating of The Political Economy of International Relations. Any person interested in international political economy can profit from reading it."--Jeffrey Hart, Journal of Politics