Big issues are at stake. Democracy can only work if firms' lobbying activities do not undermine citizens’ votes. Inequality can only be addressed if politicians listen to voters instead of business interests. Geopolitical tensions can only be resolved if economic and political interests are balanced. 

Key to understanding these dynamics is the behavior of politicians --- and their relationship to money. Who decides which bank gets a bailout and which one does not? Politicians! Who decides to implement tariffs and economic sanctions? Politicians! Who decides how Facebook and Google are regulated? Politicians! Take this specialization if you want to understand how public opinion, voters’ preferences, and lobbying activities shape politicians’ decisions and how they affect the economy. 

The specialization will be useful for students who plan to continue their study at the masters level (e.g., political science, international economics; development) or develop a career path in the fields of consultancy, public institutions, and corporate strategy (e.g., corporate social responsibility, market analyst).

The four courses will introduce students to the fundamental theories and concepts necessary to analyze the connection between politics and money in trade, investment, stock markets, banks, and debt. In addition, the four courses place much emphasis on developing three skills:

• Thinking skills: The goal is to better understand the factors and mechanisms that influence the outcomes we observe. We focus on the ability to ask good questions by identifying puzzles where actors made different decisions despite similar circumstances. We then develop multiple explanations for the observed variation. Finally, we use appropriate methodological tools to identify the most convincing explanation and derive policy recommendations. 

• Doing skills: The specialization also offers the opportunity to improve writing and communication skills. We focus on the ability to communicate content to different types of audiences (internally within an organization vs. publicly to external stakeholders) using different types of media (text vs. audio vs. video). After completing the specialization, students will have created a portfolio of documents showcasing their expertise and skills to be included in future job applications. In addition, the specialization offers hands-on training in basic empirical qualitative and quantitative methods. 

• Character skills: Life is full of challenges. The key to success is learning how to overcome them. This requires resilience (capacity to withstand difficulties) and preserverence (persistence in doing something despite difficulty). We strengthen these skills by examining case studies without black-and-white answers or situations with incomplete information. The idea is to avoid becoming discouraged by challenges but instead to see them as learning opportunities. 

Sequencing

For this specialization, there is no sequencing/pre-requisite chain of courses planned. However, please note that Course I and II are typically offered only in the summer semester, and Course III and IV are typically offered only in the winter semester.

Course contents

• Course I - Politics of Investment

This course examines how politics shape Foreign Direct Investment (FDI) and how FDI shapes politics. Understanding this interplay is important as it has implications for jobs and technological innovation --- but also democracy and inequality. In this course, we analyze how politics influence the process of screening FDI in sensitive sectors. We examine how politics shapes firms’ investment decisions. We explore the effect of FDI on voters, workers, and domestic companies. We evaluate when foreign companies can undermine domestic laws via investment arbitration disputes. We study whether governments competing for FDI results in weakened labor protection laws. 

• Course II - Politics of Banks and Stock Markets

This course analyzes how politics influence banks and stock markets and how banks and stock markets influence politics. Investigating these interactions is important as it has implications for wealth and economic growth --- but also whether politicians listen to money or voters. In this course, we study the conditions under which politicians should use taxpayer money to bail out banks. We analyze which banking regulations can ensure your money is safe and how crises like the 2008 Recession affected regulations. We analyze how elections and political movements like the Arab Spring affect share prices. We examine how regulation might move firms from maximizing short-term shareholder value to long-term sustainability.

• Course III - Politics of Trade

This course investigates how politics affect trade and how trade affects politics. Examining this interdependence is important as it has implications for the price of goods we buy and what we can purchase in the first place —-- but also for the future of the European Union, addressing climate change, and the outcome of international wars. In this course, we explain how trade, wages, and the rise of populists like Donald Trump are connected. We review how economic sanctions shape the outcome of international wars. We evaluate how China’s actions within the WTO revamp international trade cooperation. We investigate why Free Trade Agreements inspire large protest movements around the world. 

• Course IV - Politics of Debt

This course investigates how politics determine government debt and how government debt determines politics. Examining this relationship is important as it has implications for whether a default causes the next financial crisis --- but also whether debt-trap-diplomacy is effective or whether debt crises cause hunger and inequality. In this course, we analyze if loans could be used to fight climate change and poverty. We examine how interest groups shape the politics of obtaining loans. We evaluate the interplay of moral and economic arguments concerning debt relief. We study under what conditions IMF programs are effective. We investigate China’s Belt and Road Initiative in the context of international competition for political influence. 

Requirement for registration for specializations in Wirtschaft – Umwelt – Politik are at least 20 ECTS from the CBK including the courses „Jahresabschluss und Unternehmensberichte“, „Mathematik“ and „Statistik“

Specializations are chosen by registering via LPIS for the course "Access to Specializations: Politics and Money". After you have been assessed with "successfully participated" during the introduction to the specialization, you can select the respective specialization in LPIS and register for the courses.

You can find more information at:

https://www.wu.ac.at/studierende/mein-studium/bachelorguide/sbwl-2-1-1/

Placement ("successfully participated") is done on a first-come-first-in basis and will be at the same time for all specializations. Registrations for more than one specialization are possible. Therefore, it is important to register first for your top choice. If you register for further specializations as second or third choices, it may happen that places in these specializations are first allocated to those who have chosen them as their first choice. You indicate your preferences through the order of registration.