Economic Analysis and Global Governance Winter 2024
ECON 637

This is the core economics course for the graduate program in Global Governance, targeted to students with little previous background in Economics. The class will take a dual approach: approximately half of each week’s work will be dedicated to understanding economic concepts (Part I), while the other half will discuss economic approaches to global governance issues (Part II).

Part I: An understanding of basic economics, numerical literacy, and cost-benefit analysis are useful for an effective, evidence-based decision process by policymakers and policy analysts. The first part of each class will discuss the usefulness of economic concepts, theories, empirical approaches and elements of cost-benefit analysis to inform policy decisions. 

Part II: The policy section of the class will begin by covering the basic theories of international trade and international finance, as essential stepping stones for an informed analysis of global economic issues. The inefficiency of the lack of cooperation in international trade policy-making and the importance of multilateral negotiations have long been recognized. However, there is still a significant amount of debate concerning the evolving needs the multilateral trading architecture needs to respond to. The importance of coordination on monetary and financial issues is emphasized by the fragility of the current system, showcased by the frequency and rapid global contagion characterizing modern financial crises. Persistant underdevelopment in many areas of the world is also recognized as a global issue requiring global solutions, while international coordination is becoming increasingly regarded as a precondition for effectively addressing environmental issues ranging from transboundary resource depletion to global warming. These will constitute the main topic areas explored in the policy sections of the course. 

IMPORTANT: The content and order of these themes are subject to change in the first 2 weeks of classes, based on the class interests and needs. The pdf version of this outline will not be changed to reflect that.

Week 1

Introductions and Course outline.

Introduction to the Methods of Economics: models, empirics, policies. Modern economics: a primarily empirical discipline.

Week 2: 

Part I: Economic Interactions: micro behaviour and macro outcomes. 

Part II: The Economics of International Trade: overview, classical, new and newer trade theories and empirics

Week 3: 

Part I: Efficiency and Fairness

Part II: The Global Governance of Trade

Week 4: 

Part I: Credit, Banks, and Financial Assets. Inflation, Monetary Policy.

Part II: International Macroeconomic Policies, Coordination and Financial Crises

Week 5: 

Part I: Institutions, Markets, Power and Inequality

Part II:  International Development and Poverty Alleviation

Week 6:

Part I: Economics of the Environment

Part II: Global Environmental Governance: climate change, sustainability

Week 7:

READING WEEK

Week 8:

Part I: Market Failures, Externalities and Governments 

Part II:  The Economics of International Migration

Week 9:

Part I:  Workers, Firms and Social Wellbeing

Part II: The Economics of Global Social Policy challenges: Education, Health

Week 10: 

Part I: Introduction to Cost Benefit Analysis (CBA) and its Economic Fundamentals

Part II: Global indigenous peoples economic issues

Week 11:

Part I: CBA: Valuation, Uncertainty and Equity

Part II: Inequality and discrimination

Week 12: 

Final Essay Presentations and Referee Reports

Study Materials and other resources: 

The course aims to achieve two main goals: to introduce important economics concepts, theories and empirical results, and to put them in a global-governance relevant context. No textbook exists for such a specific pedagogical goal, so we will rely on a variety of sources. 

Weekly readings will be posted on UW Learn. 

However, we will refer repeatedly to CORE Econ resources, which are REQUIRED:

CORE Econ Education (2017). The Economy 2.0. London: Oxford University Press.

“Economy, Society and Public Policy” (ESPP) London: Oxford University Press and  “The Economy” (ECON)

In addition, some potentially useful BACKGROUND resources have been placed on reserve at the Porter Library.

Additionally, strongly RECOMMENDED:

Banerjee, Abhijit V. and Esther Duflo (2019). “Good Economics for Hard Times: Better Answers to Our Biggest Problems.” New York: Public Affairs.

Jean Tirole (2017). "Economics for the Common Good", Princeton: P.U.P.

These two books are unfortunately not available in a local library. You may want to purchase them, but they are not mandatory. Personal copies of the two books will be left at the BSIA for the class to share.

Many general/background resources exist for the policy part of our class. These are presented below FOR YOUR REFERENCE:

International and development economics: 

Paul Krugman and Maurice Obstfeld (2008), International Economics: Theory and Policy, any edition, Pearson/Addison-Wesley. NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE 

Elhanan Helpman, “Understanding Global Trade”, Harvard University Press (2011) NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE This is a great little book explaining the change in economic thinking about trade in an accessible non-technical yet still rigorous treatment. 

Todaro, M.P. and S. C. Smith. 2012. “Economic Development.” Boston: Addison Wesley (Pearson), 11th edition (other recent editions are similar). NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE 

Economic Globalization: 

Dani Rodrik (2017) Straight Talk on Trade: Ideas for a Sane World Economy, Princeton: P.U.P. free online

Dani Rodrik, Economics Rules: The Rights and Wrongs of the Dismal Science, W. W. Norton, 2015. NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE 

Branko Milanovic, Global Inequality: a new approach for the age of globalization. (Cambridge MA: Harvard University Press) 2016. NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE 

Dani Rodrik, The Globalization Paradox: Democracy and the Future of the World Economy (Norton, 2011) NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE 

Carmen Reinhart and Kenneth Rogoff, This Time is Different: Eight Centuries of Financial Folly, (Princeton University Press, 2011) NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE 

Dani Rodrik, One Economics, Many Recipes, (Princeton University Press, 2007). NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE 

Angus Deaton: The Great Escape: Health, Wealth, and the Origins of Inequality, Princeton University Press 2013. NOTE: THIS ITEM HAS BEEN PLACED ON RESERVE 

Banerjee and Duflo: Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, Public Affairs, 2013. NOTE: E-Book can be borrowed and downloaded for up to 7 days. THIS ITEM HAS ALSO BEEN PLACED ON RESERVE as a Physical book. 

NOTES on the Readings: 

The course can be relatively reading-heavy. There are several different reading materials due every week. That said, please use your judgment when allocating your time. The following hints may help:

- if it’s a relatively short piece: carefully read all of it and be prepared to discuss the main points.

- if the chapter/article/report is 100 pages long: skim-read it all and read the parts that communicate the substance of the work and sections that are interesting to you more thoroughly.

- if it’s a dense, jargon-heavy paper: try to get the main picture from the abstract, intro and conclusion and do not focus on any obscure technical points (unless you are into that kind of thing).

Most materials will be available online. Many of the weekly readings are journal articles, available online via the University of Waterloo Library website or VPN. 

Schedule:

All students are required to read the materials for every section. 

The course webpage on LEARN will provide the actual detailed list of readings used each week this term, including links to many readings additional to the textbooks. The LEARN Readings page will be updated (at least) weekly. 

Normally a campus (or off-campus proxy via the UW library) internet connection may be required for free access to electronic journals. 

I will make clear in class which of the readings are mandatory, which are optional or for reference only, and which are the subject of the following week’s position papers.

Course Requirements, Expectations, and Standards: 

Attendance: Students are expected to attend all weekly meetings and be actively involved in class throughout the term. 

Participation: Students are expected to fully engage with the readings and participate in all (synchronous and asynchronous) class discussions every week. Students should aim to cover all required readings before each class meeting. Each student should take an informed and reasoned position based on each of the reading materials, and a component of your grade will reflect this. (see below)

Requirements and Evaluation: 

Consistent participation in discussions (10%), weekly response papers (10%), lead class discussion of one article (15%), a midterm exam (20%), a class presentation (15%) + a referee report (5%), and a final paper (25%) will make up your final grade. 

Participation + weekly response papers: 10%+10%

This grade will be based on your weekly contributions to class and online forum discussions. A discussion forum will host students’ weekly response papers (see below). The expectation is that each student initiates at least one discussion post, reads and briefly responds to at least one other discussion post each week.

Readings for class discussion and short written assignments will be assigned each week. One critical analysis item based on these readings written up in a response paper (1 page max, double spaced) should be posted in the assigned discussion forum. This material will also constitute the basis for the in-person discussion part of each weekly meeting. Do not summarize the papers. Pick one or two issues you strongly agree/disagree with and discuss critically. These weekly position papers will be marked on a binary (completed=1 or not completed=0) scale. 

Midterm: 20%

An in-class written assignment will include a few short-answer questions and several multiple-choice questions synthesizing the material covered to date. Tentative date: February 29.

Discussion Leading: 15%

Each student will act as Discussion Leader in one week of regular classes, except for the first week. During the first week: please email me your top 5 topics (from Topic 3-Topic 11) in decreasing order of preference. Discussion Leaders are responsible for both the mandatory (M) and the optional (O) readings for the week, and will lead the class discussion of the respective articles/chapters, by posing questions that stimulate discussion. 

A guide for formulating useful questions can be found here. 

Presentation + Referee Report: 15% + 5%

The last two classes are dedicated to student presentations. Each student will discuss the core  argument of their final essay in a short class presentation. Each paper presentation will be assigned a peer referee, who will receive the material ahead of time (normally at least 3 days before) and will provide comments on the paper following the presentation. The intention is for each of you to receive constructive feedback on your work from your peers (referee and the rest of the class) before writing up the final papers.

Final Essay: 25%

This is a policy research paper on a specific topic relating your global governance interests to the broad themes of the course. Apply an economic lens to a (small) area of your Global Governance topic of interest. A maximum one-page proposal must be submitted to the instructor for approval as early in the term as possible, and no later than the Reading Week. The final essay will be due on April 10^th and will consist of approximately 15 double-spaced pages. 

Some guidelines: a minimum of 5 peer-reviewed academic sources should be used. There is no required citation style, just pick the one you are most familiar with and apply it correctly and consistently. More information on the final essay will be provided in class.

Territorial Acknowledgement: The University of Waterloo acknowledges that much of our work takes place on the traditional territory of the Neutral, Anishinaabeg and Haudenosaunee peoples. Our main campus is situated on the Haldimand Tract, the land granted to the Six Nations that includes six miles on each side of the Grand River. Our active work toward reconciliation takes place across our campuses through research, learning, teaching, and community building, and is centralized within the Office of Indigenous Relations

Academic freedom at the University of Waterloo

Policy 33, Ethical Behaviour states, as one of its general principles (Section 1), “The University supports academic freedom for all members of the University community. Academic freedom carries with it the duty to use that freedom in a manner consistent with the scholarly obligation to base teaching and research on an honest and ethical quest for knowledge. In the context of this policy, 'academic freedom' refers to academic activities, including teaching and scholarship, as is articulated in the principles set out in the Memorandum of Agreement between the FAUW and the University of Waterloo, 1998 (Article 6). The academic environment which fosters free debate may from time to time include the presentation or discussion of unpopular opinions or controversial material. Such material shall be dealt with as openly, respectfully and sensitively as possible.” This definition is repeated in Policies 70 and 71, and in the Memorandum of Agreement, Section 6

Mental Health Support

All of us need a support system. The faculty and staff in Arts encourage students to seek out mental health support if they are needed.

On Campus 

• Counselling Services 519-888-4096
• MATES:  one-to-one peer support program offered by the Waterloo Undergraduate Student Association (WUSA) and Counselling Services

Off campus, 24/7

• Good2Talk:  Free confidential help line for post-secondary students. Phone: 1-866-925-5454
• Grand River Hospital: Emergency care for mental health crisis. Phone: 519-749-4300 ext. 6880
• Here 24/7: Mental Health and Crisis Service Team. Phone: 1-844-437-3247
• OK2BME: set of support services for lesbian, gay, bisexual, transgender or questioning teens in Waterloo.  Phone: 519-884-0000 extension 213

Full details can be found online in on the Faculty of Arts Student Support page. 

Download the WatSafe app to your phone to quickly access mental health support information.

Academic integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility. [Check the Office of Academic Integrity for more information.]

Grievance: A student who believes that a decision affecting some aspect of their university life has been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70, Student Petitions and Grievances, Section 4. When in doubt, please be certain to contact the department’s administrative assistant who will provide further assistance.

Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence, and to take responsibility for their actions. [Check the Office of Academic Integrity for more information.] A student who is unsure whether an action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek guidance from the course instructor, academic advisor, or the undergraduate associate dean. For information on categories of offences and types of penalties, students should refer to Policy 71, Student Discipline. For typical penalties, check Guidelines for the Assessment of Penalties.

Appeals: A decision made or penalty imposed under Policy 70, Student Petitions and Grievances (other than a petition) or Policy 71, Student Discipline may be appealed if there is a ground. A student who believes they have a ground for an appeal should refer to Policy 72, Student Appeals.

Note for students with disabilities: AccessAbility Services, located in Needles Hall, Room 1401, collaborates with all academic departments to arrange appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability, please register with AccessAbility Services at the beginning of each academic term.

Turnitin.com: Text matching software (Turnitin®) may be used to screen assignments in this course. Turnitin® is used to verify that all materials and sources in assignments are documented. Students' submissions are stored on a U.S. server, therefore students must be given an alternative (e.g., scaffolded assignment or annotated bibliography), if they are concerned about their privacy and/or security. Students will be given due notice, in the first week of the term and/or at the time assignment details are provided, about arrangements and alternatives for the use of Turnitin in this course.

It is the responsibility of the student to notify the instructor if they, in the first week of term or at the time assignment details are provided, wish to submit alternate assignment.