Faculty and Research

Rawi Abdelal is the Joseph C. Wilson Professor of Business Administration at Harvard Business School. His primary expertise is international political economy, and his research focuses on the politics of globalization and the political economy of Eurasia.  Professor Abdelal is a faculty associate of Harvard's Weatherhead Center for International Affairs and serves on the executive committee of the Davis Center for Russian and Eurasian Studies.  Abdelal is the head of Harvard's required, first-year MBA course, Business, Government, and the International Economy.

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Featured Work

Capital Rules - The Construction of Global Finance
by Rawi Abdelal

The rise of global financial markets in the last decades of the twentieth century was premised on one fundamental idea: that capital ought to flow across country borders with minimal restriction and regulation. Freedom for capital movements became the new orthodoxy.

In an intellectual, legal, and political history of financial globalization, Rawi Abdelal shows that this was not always the case. Transactions routinely executed by bankers, managers, and investors during the 1990s--trading foreign stocks and bonds, borrowing in foreign currencies--had been illegal in many countries only decades, and sometimes just a year or two, earlier.

How and why did the world shift from an orthodoxy of free capital movements in 1914 to an orthodoxy of capital controls in 1944 and then back again by 1994? How have such standards of appropriate behavior been codified and transmitted internationally? Contrary to conventional accounts, Abdelal argues that neither the U.S. Treasury nor Wall Street bankers have preferred or promoted multilateral, liberal rules for global finance. Instead, European policy makers conceived and promoted the liberal rules that compose the international financial architecture. Whereas U.S. policy makers have tended to embrace unilateral, ad hoc globalization, French and European policy makers have promoted a rule-based, "managed" globalization. This contest over the character of globalization continues today.

National Purpose in the World Economy
Post-Soviet States in Comparative Perspective

How do national identities affect the world economy? Building on the insight that nationalisms and national identities endow economic policy with social purpose, Rawi Abdelal proposes a novel theoretical framework, a distinctively Nationalist perspective on international political economy, to answer this question. Using this framework, and drawing on field research in Lithuania, Ukraine, and Belarus, he provides an in-depth look at the link between national identity and the economic policies of the new states formed by the breakup of the Soviet Union.

All these states, from the Baltic coast to central Asia, were economically dependent on Russia during the 1990s. However, they reacted very differently to that dependence, and their reactions can be traced, Abdelal contends, to their individual societies. Some, such as Belarus, found dependence inevitable and sought economic reintegration with Russia. Others, like Lithuania, interpreted dependence as a large-scale security threat and reoriented their economies away from Russia. A third group, typified by Ukraine, demonstrated no coherent economic policy at all regarding dependence.

Abdelal distinguishes the Nationalist tradition in international political economy from the Realist tradition, and shows that economic nationalism is different than mercantilism. He demonstrates the ways that national identity affects economic policy and explains why some governments seek economic autonomy while others prefer regional reintegration. He then applies his approach to other cases of economic reorganization after the end of empire--eastern Europe in the 1920s after the Habsburgs, 1950s Indonesia, and French West Africa in the 1960s.

Additional Information

• Rawi Abdelal in Working Knowledge