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Political Science 4NN3E – Studies in Global Political Economy

Economic Nationalism, Past & Present

Winter 2017 Monday, 7pm-10pm CNH/223 Instructor: X. Hubert Rioux Contact: riouxoh@mcmaster.ca Office hours: Monday 4pm-6pm (KTH-230A) * Required material/textbook: n/a.

* * *

Course description

Trade liberalization has been a dominant trend and the main guiding principle of the

international economic system since the end of World War II. Now, it is being seriously

questioned again, both theoretically and politically, at various levels and with diverse

(and uncertain) consequences. The 2016 presidential campaign in the US showed how

deeply rooted and popular protectionist and nationalist economic thinking (still) is in large

segments of the population. The Trump campaign obviously capitalized on such ideas,

but a significant number of Democrats are now also turning their backs on free trade

agreements they supported until recently. A poll conducted in 2016, in turn, showed that

only 25% of Canadians think NAFTA has been beneficial to the country’s economy and

should be strengthened. 52% of Ontarians say it has either been detrimental or

inconsequential, and 34% of Canadians would like it to be “renegotiated”.

Overseas, economic nationalism is also gaining ground. In June 2016, the vote in favor

of “Brexit” – Great Britain’s “exit” from the European Union – revealed deeply entrenched

concerns (economic & political) about free trade and continental integration, with

significant support for the “leave” option on both the left and right sides of the political

spectrum. In France up to 45% of people are ready to vote, in May, for the Front

National’s Marine Le Pen as their next President, running on a platform of “smart

protectionism” and “economic patriotism.” Similar nationalist parties criticizing European

integration have been experiencing major successes in many countries: the Alternative

for Germany, the Sweden Democrats, and the Freedom Party in Austria. Many of them

are, besides, already governing or part of government coalitions: Law and Justice in

Poland, the Finns Party in Finland, the Progress Party in Norway, and the Fidesz in

Hungary.

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As we will hopefully learn, however, economic nationalism has historically taken and still

takes various forms. It doesn’t always and necessarily amount to protectionism, and it

can actually be advocated by movements, parties, and governments below the nation-

state level. In Europe for instance, many “regionalist” parties are, with growing success,

advocating for enhanced economic autonomy, secession, and/or European membership

for their region based on nationalist principles: the Scottish National Party in Scotland

and Sinn Féin in Northern Ireland (UK), Convergence and Union in Catalonia and the

Basque National Party in the Basque Country (Spain), the New Flemish Alliance in

Flanders (Belgium), Pè a Corsica in Corsica (France), etc. In such cases, economic

nationalism is clearly distinct from protectionism, referring instead to the pursuit of a

closer adequacy between national affiliation and control over economic policymaking.

Over the next twelve weeks, the “return” of economic nationalism in its various

contemporary forms will be discussed, and its potential consequences for the

international economic system assessed. To acquire a deeper understanding of

economic nationalism as an economic doctrine, a set of principles and policies, and a

political ideology, a chronological overview of its evolution and impacts over the last four

centuries will be provided through readings, covering many aspects of its relationships

with mercantilism, capitalism and industrialization, Marxism, liberalism, fascism,

Keynesianism, developmentalism, neoliberalism, and regionalism. This should help us

realize how the recent manifestations of a growing interest for economic nationalism are

in fact related to a long legacy of thought and policies, which have affected the

international economic system since at least 1600.

Objectives

By the end of this term, students should first be able to understand and explain how

various contemporary manifestations of economic nationalism, either in the form of

actual policies or in the form of political discourses and programs, are linked (more or

less closely) to nationalist economic doctrines theorized and/or implemented in the past.

They should also be able, secondly, to describe how economic nationalism has,

throughout its evolution, interacted with other dominant economic theories or doctrines

(liberalism, socialism, fascism, Keynesianism, neoliberalism) and impacted the

international economic system. This course, finally, will take the form of a seminar: there

will be no exam, as students will be evaluated based on their consistent participation to

class discussions, their grasp and engagement with the readings, their research and

redaction capabilities, and their capacity to summarize, verbalize, and answer questions

about their research.

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Evaluation

Attendance & Participation: 15% (Weeks 1-12)

All students will be evaluated, throughout the term, based on their regular attendance

and participation in class. Attendance and participation will be weighted equally (5%-

5%), for a total of 10% of the final grade. All students are expected to be present and to

engage in class discussions each week. Any absence has to be motivated and

communicated to the instructor in advance. Participation will thus be evaluated based on

students demonstrating interest in the course material through attentiveness, questions,

comments, and general involvement in class discussions and debates. Each student is

expected to be able to demonstrate he or she read and tried to understand the

mandatory readings.

Final paper project description & bibliography: 20% (Due week 6)

In order to get the preparation of the final paper under way sooner rather than later,

students will be asked to provide a short description of their project: general topic, main

research questions, hypotheses, and plan of the paper. This should include a preliminary

bibliography composed of at least 8 academic sources (scientific articles, books, book

chapters), including no more than 3 of the class readings. Students will thus have to find

at least 5 external sources.

The project description itself (bibliography excluded) should be no longer than 2 pages.

Students should use either Arial, Calibri, or Times New Roman, 11 points font, and 1,5

line spacing. All students will be asked to hand in hard copies of their paper.

Students are free to choose any topic of interest associated with economic nationalism

and/or relevant to the study of economic nationalism. Papers can address theoretical,

historical, and/or contemporary issues. Please note, however, that you will not be

allowed to modify your general topic (some details can change, but not the main subject)

once you’ve handed in your project description. In other words, final papers should

reflect project descriptions.

Potential topics (these are my suggestions, but I encourage you to choose a topic that is

of particular interest to you) include: relationships between secessionist movements and

economic nationalism (Quebec, Scotland, Catalonia, Flanders, Basque Country, etc.);

economic nationalism and development in Canadian history; the policy choices and

consequences of the Trump administration; the relationship between economic

nationalism and Brexit; the Chinese economic model; the Russian economic model;

economic nationalism and left-wing Latin American regimes; the impact of mercantilism

on the development of the international trade system; the impact of protectionism on war

& peace; economic nationalism and fascist regimes; protectionism vs. free trade debate;

the role of protectionism in the development of third world countries; economic

nationalism and the Eurosceptic movement; the role of “non-tariff” barriers under free

trade; etc.

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Critical summary of a reading (paper & presentation): 20% (Weeks 2-10)

Each student will be asked, once in the term, to write a short critical summary of one of

the mandatory or complementary readings listed in this syllabus. Students will then be

asked to perform a short presentation (5-10 min) of their critical summary in class. The

paper and the presentation will be equally weighted, at 10% each, for a total of 20% of

the final grade.

The paper’s length should not surpass 10% of the reading’s length (i.e. for a 30 pages

reading, the critical summary should be no longer than 3 pages). Students should use

either Arial, Calibri, or Times New Roman, 11 points font, and 1,5 line spacing. All

students will be asked to hand in hard copies of their summary.

The critical summary and presentation will be evaluated based on:

a) the student’s ability to identify and explain the main argument(s) of the author(s);

b) the student’s capacity to summarize those arguments;

c) the student’s engagement with the reading, providing a critical (positive or negative)

assessment of the author(s)’ argument(s) and establishing links to other readings,

theories, empirical/historical examples, and/or class material;

d) the student’s capacity to verbalize, in a succinct but clear manner, his/her critical

summary in class and to discuss it if the instructor or other students have comments or

questions.

Final paper: 30% (Due week 11)

Final papers will be due on March 27th. Students are free to choose any topic of interest

associated with economic nationalism, and papers can address theoretical, historical,

and/or contemporary issues. The main topic of the paper should clearly reflect, however,

the project description due on Week 6. Final papers should have a maximum length of

6000 words (including footnotes, but excluding the bibliography). The final paper should

include a bibliography of at least 10 academic sources, including no more than 3 of the

readings listed in the syllabus (in other words, a minimum of 7 external sources).

Students should use either Arial, Calibri, or Times New Roman, 11 points font, and 1,5

line spacing. All students will be asked to hand in hard copies of their paper.

Final papers will be evaluated based on:

a) complementarity with the project description due on Week 6. The main topic and the

bibliography, at least, should be congruent. Change is allowed, however, for all other

details of the paper (main and complementary research questions, thesis/hypotheses,

arguments, plan of the paper, etc.). * Continued on next page…

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b) quality and clarity of the research question(s), argument(s), example(s) used, and

conclusion(s)

c) capacity to establish links with class material (at large) and/or readings

d) quality/clarity of writing and editing

Final paper summary, presentation, & discussion: 15% (Weeks 11-12)

The last two weeks of the term will be dedicated to the presentation and discussion of

students’ final papers. Each student will be asked to present his/her paper in class, and

to answer potential questions or comments from other students and/or the instructor.

The idea is to evaluate students’ capacity to verbalize, discuss, and defend their

research. Presentations should be between 10 and 15 minutes in length, and can (but

do not have to) include visual material. Each presentation will be followed by a 5 to 10

minutes discussion of the paper. All students, therefore, will be required to participate

and engage in discussions, in addition to their own presentation. To facilitate

participation, each student will also be required to provide a 300 words summary of their

final paper, to be distributed 24 hours before the day of their presentation. All students

are required to have read paper summaries before class, so as to prepare questions or

comments for discussion purposes.

Students will thus be evaluated based on:

a) the quality and clarity of their 300 words summary

b) the quality and clarity of their presentation, summarizing their paper’s topic, research

questions, and main arguments, findings and/or conclusions

c) their capacity to defend and discuss their paper by answering questions and/or

comments from other students and the instructor

d) their participation to discussions on other students’ papers/presentations

e) *please note that a 3% bonus will be granted to students volunteering to present on

week 11, as they will have a week less to prepare.

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Schedule & Readings:

Week 1 (January 9th)

The return of economic nationalism?

Recommended readings:

Ronald F. Inglehart and Pippa Norris (2016), “Trump, Brexit, and the Rise of Populism:

Economic Have-Nots and Cultural Backlash”, Faculty Research Working Paper Series,

Harvard Kennedy School, RWP16-026.

Michael Hirsh (2016), “Why the New Nationalists are Taking Over”, Politico Magazine,

June 27th: http://www.politico.com/magazine/story/2016/06/nationalism-donald-trump-

boris-johnson-brexit-foreign-policy-xenophobia-isolationism-213995

Shawn Donnan (2016), “Free Trade vs. Populism: the Fight for America’s Economy”,

Financial Times, September 22nd: goo.gl/GcFQX0

Sofia Vasilopoulou (2016), “UK Euroscepticism and the Brexit Referendum”, The

Political Quarterly, vol. 87, no. 2, pp. 219-227.

Week 2 (January 16th)

What is (economic) nationalism?

Required readings

Michael A. Heilperin (1960), “What is Economic Nationalism?”, in M.A. Heilperin, Studies

in Economic Nationalism, Geneva: Publication de l’Institut Universitaire de Hautes

Études Internationales, pp. 15-27.

Eric Helleiner (2005), “Conclusion: The Meaning and Contemporary Significance of

Economic Nationalism”, in E. Helleiner and A. Pickel (eds.), Economic Nationalism in a

Globalizing World, Ithaca & London: Cornell University Press, pp. 220-234.

Rawi Abdelal (2001), “A Nationalist Perspective on International Political Economy”, in

R. Abdelal, National Purpose in the World Economy. Post-Soviet States in Comparative

Perspective, Ithaca: Cornell University Press, pp. 24-44

Complementary readings

John Breuilly (1994), “Nationalism and Class”, in J. Breuilly, Nationalism and the State,

Chicago: University of Chicago Press, pp. 25-53.

Michael Billig (1995), “Flagging the Homeland Daily”, in M. Billig, Banal Nationalism,

London: Sage Publications, pp. 93-127.

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Takeshi Nakano (2004), “Theorising Economic Nationalism”, Nations and Nationalism,

vol. 10, no. 3, pp. 211-229.

Week 3 (January 23rd)

Mercantilism

Required readings

Charles Woolsey Cole (1964), “Colbert’s Ideas”, in C.W. Cole, Colbert and a Century of

French Mercantilism, Amden: Archon Books, pp. 335-355.

Lars Magnusson (1994), “Seventeenth-Century Discussions”, in L. Magnusson,

Mercantilism: The Shaping of an Economic Language, New-York: Routledge, pp. 94-

115.

Friedrich List (1856), “England”, in F. List, National System of Political Economy,

Philadelphia: J.B. Lippincott & Co., pp. 110-129.

Complementary readings

Adam Smith (2007) [1776], “Of the Principle of the Commercial, or Mercantile System”,

in A. Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, New-York:

MetaLibri, Book IV, Chapter I.

John Maynard Keynes (1936), “Notes on Mercantilism, the Usury Laws, Stamped Money

and Theories of Under-Consumption”, in J.M. Keynes, The General Theory of

Employment, Interest, and Money, Basingstoke: Palgrave Macmillan, Chapter 23.

Week 4 (January 30th)

Economic Nationalism and Industrial Capitalism

Required readings

Ernest Gellner (1981), “Nationalism”, Theory and Society, vol. 10, pp. 753-776.

Friedrich List (1856), “National Division of Labor and the Association of the Productive

Forces of a Country” & “Private Economy & National Economy”, in F. List, National

System of Political Economy, Philadelphia: J.B. Lippincott & Co., pp. 228-262.

Liah Greenfeld (2003), “The Capitalist Spirit and the British Economic Miracle”, in L.

Greenfeld, The Spirit of Capitalism. Nationalism and Economic Growth, Cambridge:

Harvard University Press, pp. 29-58.

Complementary readings

Max Weber (2005), “The Spirit of Capitalism”, in M. Weber, The Protestant Ethic and the

Spirit of Capitalism, New-York: Routledge Classics, pp. 13-38.

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Christine Margerum Harlen (1999), “A Reappraisal of Classical Economic Nationalism

and Economic Liberalism”, International Studies Quarterly, vol. 43, no. 4, pp. 733-744.

David Levi-Faur (1997), “Economic Nationalism: From Friedrich List to Robert Reich”,

Review of International Studies, vol. 23, pp. 359-370.

Week 5 (February 6th)

Economic Nationalism in the 19th Century

Required readings

Otto Bauer (2000) [1924], “Modern Capitalism and National Hatred”, in O. Bauer, The

Question of Nationalities and Social Democracy, Minneapolis: University of Minnesota

Press, pp. 193-218.

Roman Szporluk (1988), “Nationalism: The Unity of Theory and Practice” & “After 1848:

Marx and Engels Face the Nation”, in Communism & Nationalism. Karl Marx versus

Friedrich List, Oxford: Oxford University Press, pp. 152-166; 169-192.

Paul Bairoch (1993), “Was there a Golden Era of European Free Trade?” & “Has

Protectionism Always had a Negative Impact?”, in P. Bairoch, Economics and World

History: Myths and Paradoxes, Chicago: University of Chicago Press, pp. 16-29; 44-55.

Complementary readings

Liah Greenfeld (2003), “Searching for the American System”, in L. Greenfeld, The Spirit

of Capitalism. Nationalism and Economic Growth, Cambridge: Harvard University Press,

pp. 384-427.

Liah Greenfeld (1995), “The Worth of Nations: Some Economic Implications of

Nationalism”, Critical Review, vol. 9, no. 4, pp. 555-584.

Ha-Joon Chang (2003), “Policies for Economic Development: Industrial, Trade and

Technology Policies in Historical Perspective”, in H-J. Chang, Kicking Away the Ladder:

Development Strategy in Historical Perspective, London: Anthem Press, pp. 13-39.

Week 6 (February 13th)

Economic Nationalism in the Early 20th Century

Required readings

Michael A. Heilperin (1960), “The Economic Nationalism of John Maynard Keynes”, in

M.A. Heilperin, Studies in Economic Nationalism, Geneva: Publication de l’Institut

Universitaire des Hautes Études Internationales, pp. 97-128.

Leon Trotsky (1934), “Nationalism and Economic Life”, Foreign Affairs, vol. 12, no. 3, pp.

395-402.

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Adam Tooze (2006), “Partners: the Regime and German Business”, in A. Tooze, The

Wages of Destruction: The Making and Breaking of the Nazi Economy, London: Penguin

Books, pp. 99-134.

Complementary readings

J.A. Hobson (1916), “The Revival of Protectionism”, in J.A. Hobson, The New

Protectionism, New-York: G.P. Putnam’s Sons, pp. 1-17.

Arthur Salter (1932), “The Future of Economic Nationalism”, Foreign Affairs, vol. 11,

no.1, pp. 8-20.

Michael Hechter (1999), “Twentieth-Century Celtic Nationalism”, in Internal Colonialism.

The Celtic Fringe in British National Development, London: Transaction Publishers, pp.

264-310.

Week 7 (February 27th)

Economic Nationalism, 1950s-1990s

Required readings

Robert B. Reich (1992), “The National Champion”, “The National Bargain”, & “The

Presumed Problem”, in R.B. Reich, The Work of Nations, New-York: Vintage Books, pp.

43-77.

Eric Helleiner (1994), “The Liberalization Trend in the 1980s”, in States and the

Reemergence of Global Finance. From Bretton Woods to the 1990s, Ithaca & London:

Cornell University Press, pp. 146-168.

Baldev Raj Nayar (1997), “Globalisation, Nationalism and Economic Policy Reform”,

Economic and Political Weekly, vol. 32, no. 30, pp. 93-104.

Complementary readings

Mancur Olson (1987), “Economic Nationalism and Economic Progress”, The World

Economy, vol. 10, no. 3, pp. 241-264.

Peter J. Burnell (1986), “Causes”, in P.J. Burnell, Economic Nationalism in the Third

World, Brighton: Harvester Press, pp. 53-86.

Robert Gilpin (2001), “The State and the Multinationals”, in R. Gilpin, Global Political

Economy. Understanding the International Economic Order, Princeton: Princeton

University Press, pp. 278-304.

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Week 8 (March 6th)

Case Studies Part I: Economic Nationalism in Canada

Required readings

Govind C. Rao (2010), “The National Question in Canadian Development: Permeable

Nationalism and the Ideological Basis for Incorporation into Empire”, Studies in Political

Economy, no. 85, pp. 149-178.

Rioux, X.H. (2014), “Quebec and Canadian Fiscal Federalism: From Tremblay to Séguin

and Beyond”, Canadian Journal of Political Science, vol. 47, no. 1, pp. 47-69.

Cory Blad (2013), “The Emerging Role of Culture in Neoliberal State Building”, in C.

Blad, Neoliberalism and National Culture. State-Building and Legitimacy in Canada and

Québec, Chicago: Haymarket Books, pp. 211-246.

Complementary readings

Andrew Smith (2008),”Toryism, Classical Liberalism, and Capitalism: The Politics of

Taxation and the Struggle for Canadian Confederation”, The Canadian Historical

Review, vol. 89, no. 1, pp. 1-25.

Ontario, Select Committee on Economic and Cultural Nationalism (1975), “The Foreign

Investment Review Act”, in Final Report on Economic Nationalism, pp. 73-99.

Albert Breton (1964), “The Economics of Nationalism”, The Journal of Political Economy,

vol. 72, no. 4, pp. 376-386.

Week 9 (March 13th)

Case Studies Part II: Economic Nationalism Elsewhere

Required readings

Anthony P. D’Costa (2012), “Capitalism and Economic Nationalism: Asian State Activism

in the World Economy”, in A.P. D’Costa (ed.), Globalization and Economic Nationalism

in Asia, Oxford University Press Scholarship Online.

Anni Kangas (2013), “Market Civilisation Meets Economic Nationalism: the Discourse of

Nation in Russia’s Modernisation”, Nations & Nationalism, vol. 19, no. 3, pp. 572-591.

Stephen Robert Nagy (2014), “Nationalism, Domestic Politics, and the Japan Economic

Rejuvenation”, East Asia, vol. 31, pp. 5-21.

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Complementary readings

Robert Grimm (2015), “The Rise of the German Eurosceptic Party Alternative Für

Deutschland, Between Ordoliberal Critique and Popular Anxiety”, International Political

Science Review, vol. 36, no. 3, pp. 264-278.

Ailsa Henderson, Charlie Jeffery, Robert Lineira, Roger Scully, Daniel Wincott and

Richard Wyn Jones (2016), “England, Englishness, and Brexit”, The Political Quarterly,

vol. 87, no. 2, pp. 187-199.

Tore Fougner (2006), “Economic Nationalism and Maritime Policy in Norway”,

Cooperation and Conflict, vol. 41, no. 2, pp. 177-201.

Week 10 (March 20th)

Case Studies Part III: Regionalism & Minority (Economic) Nationalism

Required readings

Michael Keating (1997), “The Political Economy of Regionalism”, in M. Keating and J.

Loughlin (eds.), The Political Economy of Regionalism, New-York: Routledge, pp. 17-40.

Brandon M. Boylan (2015), “In Pursuit of Independence: the Political Economy of

Catalonia’s Secessionist Movement”, Nations & Nationalism, vol. 21, no. 4, pp. 761-785.

Rou-Lan Chen (2014), “Reconstructed Nationalism in Taiwan: a Politicised and

Economically Driven Identity”, Nations & Nationalism, vol. 20, no. 3, pp. 523-545.

Complementary readings

Marc Holitscher and Roy Suter (1999), “The Paradox of Economic Globalisation and

Political Fragmentation: Secessionist Movements in Quebec and Scotland”, Global

Society, vol. 13, no. 3, pp. 257-286.

Luis de la Calle and André Fazi (2010), “Making Nationalists out of Frenchmen?:

Substate Nationalism in Corsica”, Nationalism and Ethnic Politics, vol. 16, pp. 397-419.

Caroline Gray (2015), “A Fiscal Path to Sovereignty? The Basque Economic Agreement

and Nationalist Politics”, Nationalism and Ethnic Politics, vol. 21, pp. 63-82.

Week 11 & 12 (March 27th & April 3rd)

Final paper presentations & discussions

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McMaster Policy on Academic Dishonesty You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned Academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university. It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at http://www.mcmaster.ca/academicintegrity The following illustrates only three forms of academic dishonesty: 1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained. 2. Improper collaboration in group work. 3. Copying or using unauthorized aids in tests and examinations

Faculty of Social Sciences E-mail Communications Policy Effective September 1, 2010, it is the policy of the Faculty of Social Sciences that all e-mail communication sent from students to instructors, and from students to staff, must originate from the student’s own McMaster University e-mail account. This policy protects confidentiality and confirms the identity of the student. It is the student’s responsibility to ensure that communication is sent to the university from a McMaster account. If an instructor becomes aware that a communication has come from an alternate address, the instructor may not reply at his or her discretion.

Electronic Resources In this course we will be using a shared Dropbox folder (Political Science 4NN3E) for readings. Students should be aware that, when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor.

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Course Modification Statement The instructor and university reserve the right to modify elements of the course during the term. The university may change the dates and deadlines for any or all courses in extreme circumstances. If either type of modification becomes necessary, reasonable notice and communication with students will be given with explanation and the opportunity to comment on changes. It is the responsibility of the student to check his/her McMaster email and course websites weekly during the term and to note any changes.

Academic Accommodation of Students with Disabilities

Students who require academic accommodation must contact Student Accessibility Services (SAS) to make arrangements with a Program Coordinator. Academic accommodations must be arranged for each term of study. Student Accessibility Services can be contacted by phone 905-525-9140, ext. 2865 or e-mail sas@mcmaster.ca. For further information, consult McMaster University’s Policy for Academic Accommodation of Students with Disabilities.