Module:                                 SCP202 Political Economy

Programme:                         B. A. Political Science and Sociology

Credit value:                         12

Module Tutor:                   

General objective

The first part of this module aims to provide students with an understanding of the fundamental principles of different economic theories, notably economic liberalism, Marxism and institutionalism.

The second part focuses on the theories of the developmental state. How is a state, taking  the  lead in  processes  of  economic  development  and  modernization, organized? Which historical stages of development can be identified, and what kind of approaches have different states developed to deal with the challenges of modernization?  Which  approaches  were  successful,  and  which  were  not? The module focuses mainly on Asian examples, like Thailand, Asian Tigers and South Korea. At the end, the module briefly discusses the shadow side of modernization and development and possible strategies to deal with for example global warming and environmental problems, in the form of “green” and Buddhist political economic theory.

Learning outcomes

On completion of the module, learners will be able to:

• Discuss the central theories of political economy: liberalism, institutionalism and Marxism.

• Explain the historical contexts of these theories

• Describe the concept of the developmental state.

• Analyze the relationship between economic development and environmental issues

• Critically    assess    mainstream    economic    thought    from    a    Marxist, institutionalism, Buddhist and “green” perspective.

• Evaluate the Bhutanese economy system and its challenges

• Compare Bhutanese economy system with the above mentioned countries

Learning and teaching approach

Assessment Approach

A: Assignment: Portion of Final Marks: (30%)

There will be one assignment for this module. Assignment will be graded on the following criteria:

Organization 10%- introduction, Body and conclusion Content 15%- arguments and informed critic Grammar and reference 5%

B: Group discussion: Portion of Final Marks: (5%)

At least five-group discussions will be organized for this module, a group will not consist of more than five members, and each member has to lead at least one group discussion.

C: Oral Presentation: Portion of Final Marks: (15%)

Students have  to make one  presentation  based  on  the  topic  distributed  by  the module tutor. Presentation will be for 10 minutes.

D: End Semester Examination: Portion of Final Marks: (40%)

Semester end Examination for the duration of three hours.

Overview of the assessment approaches and weighting

Subject Matter

Unit I: Introduction

• What is political economy? – Meaning, origins and scope; a variety of perspectives
• What does it teach? – The relationship between state, market and society; a focus on issues of power, governance, institutions, regulation, distribution, conflicts

Unit II: Orthodox (mainstream) approaches to political economy

• Classical political economy – Adam Smith, David Ricado and Thomas Malthus
• Neoclassical  political  economy  –  or  the  removal  of  the “political”   in   political   economy;   the abstract   “ideal”   world   of mainstream economists (i.e. market-based and without power relationships)
• Neoliberalism – The era of the free-marketers; Milton Friedman and Robert Nozick

Unit III: Heterodox (alternative) approaches to political economy

• Marxian political economy: a critique of capitalism
• Exploitation and class struggle
• A theory of the world economy (hegemony, imperialism) and of the alternative – socialism (in theory and in practice)
• Institutionalism: the economy as a system of institutions
• What are institutions? Thorstein Veblen, Douglass North
• The role of history and institutions in shaping the economy and economic actors
• Keynesian  political  economy:  the  key  role  of  the  state  in
• guiding the economy; the “macro” level of analysis
• Feminist  political  economy:  how  economists  are  blind  to everything that concerns women
• Political ecology: linking political economy with the ecological; environmental degradations and environmental conflicts

Unit IV: The political economy of development

• What is development? Who guides/regulates development? Is it the state or the market?
• What  are  the  key  policies  and  institutions  in  this  process (public services and policies, market, ownership, credit)
• Democratization – advantage and disadvantages of democratization; individual liberty vs. group liberty; the undermining of community 
• Conflicts: capital vs. labour, capital vs. nature, modernity vs. tradition, inequalities
• Globalisation:  is  globalization  westernizing  the  world?  The political economy of growth: who benefits and who loses?

Unit  V:  Theories of development  and case studies  of  various developmental states

• Modernization theory – the case of Thailand
• Dependency theory – the case of Thailand
• World system theory – the case of South Korean
• Globalization – the “Asian Tigers”

Unit VI: The political economy of Bhutan

• The role  of  the  state and  of  the market  in  the  Bhutanese economy: overview and challenges (e.g. debt, inequalities, unemployment)
• The  GNH  approach  to  political  economy:  a  new macroeconomic indicator guiding policies (“narrow GNH”); the integration  of  the  material  and  the  spiritual  (“deep  GNH”);  “deep GNH” as a variant of Buddhist economics
• The current state of affair – what next?

Reading List

Essential Reading

Buddha, Twain & Grantham. (n.d.). Retrieved August 15, 2015, from http://www.blackhawwealth.com/buddha-twain-grantham/

Clapp, J. & Dauvergne, P. (2008). Paths to a green world: The Political Economy of the Global Environment. New Delhi: Academic Foundation.

Ecological Buddhism: A Buddhist Response to Global Warming. Retrieved on 5th July 2015 fromhttp://www.ecobuddhism.org/wisdom/interviews/sk

Schumacher, E. (1973). Buddhist Economics. In Small is beautiful; economics as if people mattered. New York: Harper & Row.

Stilwell, F. (2011). Political Economy, the contest of economic ideas. (3rd eds.) Australia and New-Zealand: OUP.

Woo-Cummings, M. (1999).The developmental state. New York, NY: Cornell University. (selected chapters) 

Date December 2015