University of Michigan Press Growth, Trade, and Systemic Leadership

Excerpt. © Reprinted by permission. All rights reserved. Growth, Trade, & Systemic LeadershipBy Rafael Reuveny William R. ThompsonUNIVERSITY OF MICHIGAN PRESSCopyright © 2004University of MichiganAll right reserved. ISBN: 978-0-472-09850-7ContentsList of Figures.................................................................................................ixList of Tables..................................................................................................xiAcknowledgments.................................................................................................xiii1. An Introduction to Growth, Trade, and Systemic Leadership....................................................12. Leading Sectors, Lead Economies, and Economic Growth.........................................................333. Economic Innovation, Systemic Leadership, and Military Preparations for War..................................584. Explaining Protectionism: Seventeen Perspectives and One Long-Term Common Denominator........................855. The Timing of Protectionism..................................................................................1126. Tariffs and Trade Fluctuations: Does Protectionism Matter as Much as We Think?...............................1437. Systemic Leadership and World Trade Openness.................................................................1708. Trade, Regionalization, and Tariffs: The Correlates of Openness in the American Long Run.....................1879. Conclusion: Adding Things Up.................................................................................211Appendixes......................................................................................................233Notes...........................................................................................................239References......................................................................................................255Index...........................................................................................................279Chapter OneAn Introduction to Growth, Trade, and Systemic Leadership As we enter the twenty-first century, international political economy (IPE) concerns encompass a wide range of topics. New technology promises to make obsolete many of the conventional ways of making and doing things. If the nature of economic activity changes radically, so, too, will the nature of political economy-both domestically and internationally. Not coincidentally, signs of globalization seem literally everywhere, just as resistance to increasing economic interdependence is equally widespread. Global inequalities appear to be increasing and accelerated by the latest round of technological innovation, as embodied by the ongoing revolution in information technology. Some parts of the world are becoming increasingly wealthy and wired. Other parts of the world may be destined to being left further behind than they were earlier. Global institutions are evident but are clearly struggling to carry out their missions. Peacekeeping in Africa appears especially problematic, especially given the twin reluctance of local actors to cooperate and the most powerful states to become involved. Financial institutions such as the World Bank and trade institutions such as the World Trade Organization (WTO) are confronted with riots outside their meetings and limited agreement on what to do within their meetings. Doubts are raised about whether the World Bank and International Monetary Fund (IMF) facilitate or hinder economic growth in the Southern Hemisphere. While considerable success has been realized in reducing tariffs and expanding trade, other types of barriers to trade have been expanded. Regional trading arrangements are proliferating, presumably to reduce further local barriers to trade but always retaining some potential for reverting to older-fashioned regional trading blocs. In short, the problems of internation