World Economy 2400-EM2GŚ
The aim of the course is to acquaint students with the stages of development of the international economy. It is designed for students of the Faculty of Economics and other departments (OGUN). The lecture looks at the world economy from the historical perspective and therefore takes into account the social, political and cultural context of the formation of international and supranational economic relations. The level of detail increases as the lecture draws nearer to the present. The lecture will allow the students to gain understanding of the long lasting economic ties between the Middle Ages and modernity, recognize the stages of development of these relations - from long-distance trade in the Middle Ages, to contemporary globalization - and to understand the technological and political conditions of these relationships. Major skill that students will acquire over the course is the ability to analyze the global economy in the broad perspective of economic and social phenomena. These includes international trade and capital flows, migrations, multinational enterprises, regulation of international economic relations etc. Recognition is a basic understanding of the lecture, however, requires knowledge of elementary economic concepts and general historical knowledge.
1. Concepts, theories and disputes
Economic and political factors in shaping the economic exchange. The local economy, national, international, world. Trade in products, services. International movements of factors of production.
2. Trade in the medieval Europe (1000-1491)
Europe and other civilizations, the exchange between them. Economic cycles within Europe, trade centers, trade routes. Migration, movement of capital.
3. The era of the early colonial empires (1492-1750)
European colonial expansion in the sixteenth to eighteenth centuries. Early capitalism. Mercantilism. Atlantic economy. Colonial empires. The objects and forms of trade. Migrations. The economic transformation of the colonized areas.
4. The Industrial Revolution and international trade (1750-1850)
The English industrial revolution of the eighteenth century .: Malthusian trap to modern economic growth. "The great divergence" of Europe and the rest of the world. The importance of cotton - India, US, slavery, machines and urbanization. From mercantilism to liberalism.
5. Second Industrial Revolution (1850-1914)
"Industry inventions" - technical progress in many areas. Birth corporations. New industrial powers: the United States and Germany. The social and political consequences of technological change.
6. The first globalization (1870-1914)
The concepts of globalization and imperialism. The division of labor on a global scale. Currency gold. Transport and communication. The integration of markets for goods and factors of production. Migration from Europe. Asymmetry: the dominance of "the West" over the rest of the world.
7. Eastern Europe in the global economy of the 16th -19th century
The differences in the pace of development of Western Europe and Eastern Europe in the modern era. Eastern Europe's place in the division of labor. Differences System: secondary serfdom, poor city. Delayed modernization in the nineteenth century. Exports of raw materials and labor to the West, imports of capital and technology.
8. The disintegration of the world system (1914-1945)
De-globalization - weave of politics, war and the economy. Two world wars, the war economy. The slowdown in economic growth, the collapse of trade and finance. The Great Depression. USSR is excluded from the global economy. German economic policy. Economic nationalism (Central Europe, Latin America).
9. The Glorious thirty (1946-1976)
The gradual restoration of (Western) world economy. Bretton Woods system. The Marshall Plan. "Golden Thirty" - a decade of high growth, low unemployment, low inflation, improving the standard of living in Western countries. The welfare state. The Cold War, the division of Germany, integration of Germany with the West. European cooperation.
10. Twilight of the era of prosperity in the West (1976-1990)
Stagflation of the seventies. The new nature of technological progress. Newly industrialized country. The collapse of the Bretton Woods system. Oil shocks. Apogee of European integration. The welfare state and its crisis. Defiance of social order (left Europe, 1968.). Post-industrial society. Changing economic views - from Keynesianism to neoliberalism.
11. Socialist states in the international economy (1917-1989)
Ideology (Marxism) and political (the Russian Revolution) the circumstances of the formation of the socialist state. The program of industrialization. Command economy. From the high rate of growth to stagnation. Half exclusion from the global economy and a gradual return - import technology and food indebtedness.
12. New industrialized countries (1978-present)
The discovery of the problems of backwardness, the concept of the Third World. The importance of the Cold War. Decolonization. Industrialization as a political objective. The new industrialized countries: the examples of Japan, South Korea, Brazil. China. Strategies for import substitution and export promotion. Effects of Western countries: de-industrialization, the loss of jobs.
13. The debt crisis and the Washington Consensus (1980s – later)
And debt crises in Latin America. Changing the paradigm of thinking - from the economy to the neo-liberal statist. The concept of the Washington consensus. Neoliberal ideas and experience in Latin America in recovery programs in post-communist countries.
14. The world economy after the collapse of state socialism (1990-present)
Globalization after 1990 : ideas (neoliberalism), technologies (Internet) network society. Transnational Corporations. The importance of financial markets. The decrease in the importance of nation-states. Europe and the Euro. 2007/8 crisis and its consequences.
Type of course
The student distinguishes between the terms "local economy", "national economy", "International economic relations", "globalization". Distinguishes between trade in goods and services and the movement of factors of production. Distinguishes between the impact of economic and political factors on the development of economic ties. He or she knows how developed trans-regional economic ties in the Middle Ages and modern Europe and between Europe and other regions of the World. He or she knows what was the industrial revolution and what was its impact on international economic relations. He or she knows how the concepts of free trade and protectionism clashed and understands the concepts of the first globalization, imperialism and the center / periphery division. He or she recognizes the place of the eastern Europe's in the global economy between the sixteenth and the nineteenth century the relative lag in development. He or she identifies the deglobalization process started by the First World War and knows the concept of economic nationalism. He or she understands the process of rapid growth in the first decades after World War II and knows the rules of Bretton Woods. He or she can identify the stagflation of the seventies. He or she understands the role of the state in the economy and knows what was, and how, the nature of state socialist countries relations with the international economy and the world since the thirties after the fall of the regime. He or she knows the concept of the newly industrialized countries and understands their role in the global economy. He or she knows how the growing debt of third world countries influenced the new paradigm of economic policy. He or she understands the contemporary globalization.
The student knows how to use the concepts of the local, national, international economy and the concept of globalization to the description and analysis of the specific business processes. He or she can interpret the formation of far-reaching economic ties in the Middle Ages and the modern era. Knows how to interpret the concept of the industrial revolution and explain its relationship to the changes in the international economic relations. He or she can use the concept of globalization to analyze the processes taking place in the global economy in the period 1870-1914 and beyond. He or she can identify the place of the Eastern Europe in the global economy in the period from the sixteenth to the nineteenth century. He or she can interpret the processes of rapid economic growth after the World War II and the slowdown in the 1970s. He or she can interpret the place of the socialist countries in the world economy in the XX century. Is able to interpret the appearance of the third world countries and newly industrialized economies in the second half of the century. He or she can interpret the debt problem of the developing countries and its impact on the economic policy. Is able to interpret contemporary processes of globalization.
Students acquire habits of continuous learning, prioritization of tasks, teamwork.
SW01, SW02, SW03, SW04, SU01, SU02, SU03, SU04, SU05, SU06, SU07, SK01, SK02, SK03
Students are expected to be able to independently write and articulate the knowledge and skills gained from the use of this knowledge for interpreting the processes taking place in the past and nowadays in the global economy. The final exam consists of five open questions, the answer to the first is to be a developed (2 pages) analytical essay is assessed the accounting for and carried out argument. Responses to each other have a volume of half a page and check the basic knowledge and understanding of the concepts.
Findley R., O’Rourke K. H., Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton 2007.
Cameron R. i Neale L., A Concise Economic History of the World: From Paleolithic Times to the Present, 4th Edition, Chapters 6, 12, 13.
Landes, D.S., The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor, chapters 5-12, 25-29.
Foreman-Peck J. A, History of the World Economy: International Economic Relations since 1850, Penguin 1995.
O’Rourke, K.H. i J. G. Williamson, Globalization and History: the Evolution of a Nineteenth Century Atlantic Economy.
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: