Showing papers by "Albert O. Hirschman published in 1969"

National Power and the Structure of Foreign Trade

Abstract: " Hauser. op. cit. p. iv. " Times (I.ondrmV June 23, 1916, editorial. " Julieii Bcnda, La trahison des clercs (Paris, 1927), p. 72. 6o National Power and Foreign Trade T h u s , P r e z i o s i w a n t e d t o b u i l d u p s t r o n g I t a l i a n i n d u s t r i e s s o t h a t t h e y m a y " i n t h e i r o w n t i m e p r a c t i c e d u m p i n g , t u r n i n g a g a i n s t the G e r m a n s t h e i r o w n f a v o r i t e w e a p o n s . " " S i m i l a r l y , h e w i s h e d t o f r e e t h e B a n c a C o m m e r c i a l e f r o m G e r m a n i n f l u e n c e b e c a u s e " t h e b a n k i n g s y s t e m h a s to b e o n e of t h e m o s t p o w e r f u l i n s t r u m e n t s w h i c h t h e s t a t e h a s a t i t s d i s p o s a l i n o r d e r t o d i r e c t i n t e r n a t i o n a l p o l i c y a c c o r d i n g t o i t s o w n a i m s . " " T h u s , i t is n o t s u r p r i s i n g t o b e i n f o r m e d b y t h e Enciclopedia Italiana t h a t P r e z i o s i e a r l y j o i n e d t h e F a s c i s t p a r t y a n d h a d a n i m p o r t a n t p a r t i n t h e e l a b o r a t i o n of i ts e c o n o m i c p r o g r a m b e f o r e t h e m a r c h o n R o m e . I n a m o r e b a l a n c e d f a s h i o n , H a u s e r m a d e a d i s t i n c t i o n i n h i s final c h a p t e r b e t w e e n " w h a t w e s h a l l n o t i m i t a t e f r o m G e r m a n y " a n d " w h a t w e s h a l l h a v e t o i m i t a t e . " T h i s s h o w s r a t h e r s i g n i f i c a n t l y t h e w a y i n w h i c h t h e w h o l e p r o b l e m w a s r a i s e d . B u t i n s p i t e o f h i s m o d e r a t e p o s i t i o n — h e r e j e c t e d t h e m o r e a g g r e s s i v e G e r m a n m e t h o d s , s u c h a s d u m p i n g , a n d d i d n o t f a v o r a c o m p l e t e b o y c o t t o f G e r m a n y a f t e r t h e w a r ' s e n d — h e a d v o c a t e d a n " e c o n o m i c o f f e n s i v e " e v e n a f t e r t h e w a r a s t h e o n l y p o s s i b l e a n s w e r t o G e r m a n m e t h o d s . ^ T h e s e i n s t a n c e s suffice t o s h o w t h e g e n e r a l f e a t u r e s o f a c u r r e n t o f t h o u g h t w h i c h r e c e i v e d i t s p r a c t i c a l e x p r e s s i o n a n d off icial c o n s e c r a t i o n a t t h e P a r i s E c o n o m i c C o n f e r e n c e . T h i s w a s , s i g n i f i c a n t l y , t h e o n l y A l l i e d c o n f e r e n c e d u r i n g t h e w a r a t w h i c h p r o b l e m s of p o s t w a r e c o n o m i c r e c o n s t r u c t i o n w e r e u n d e r c o n s i d e r a t i o n . A s h o r t s u r v e y o f i t s r e s o l u t i o n s a n d i t s i n f l u e n c e u p o n l a t e r e v e n t s s e e m s t h e r e f o r e t o b e w a r r a n t e d . ^ T h e r e s o l u t i o n s a d o p t e d b y s i x A l l i e d n a t i o n s — E n g l a n d , F r a n c e , I t a l y , R u s s i a , B e l g i u m , J a p a n — f e l l i n t o t h r e e p a r t s : m e a s u r e s fo r t h e w a r p e r i o d ; m e a s u r e s fo r t h e t r a n s i t i o n p e r i o d a f t e r t h e w a r ; a n d p e r m a n e n t m e a s u r e s . T h e a i m o f t h e c o n f e r e n c e i s c l e a r l y s t a t e d i n t h e p r e a m b l e t o t h e r e s o l u t i o n s : T h e representa t ives of the A l l i e d g o v e r n m e n t s . . . dec l a re that , after forc ing u p o n t h e m the m i l i t a r y contest in sp i te of al l the efforts to a v o i d the conflict, the E m p i r e s of C e n t r a l E u r o p e are today p r e p a r i n g , in concert wi th their a l l ies , for a contest on the e c o n o m i c p l a n e , which will no t 1' Preziosi, op. cit., p. 43. 5" Preziosi, op. cit., p, 58, Hauser, op. cit., p. ix. ^For a history of the genesis of the conference, see Etienne CliJmentel, La France et la Politique Economique Interalliee (Paris-New Haven, 1931), pp. 74-78. Theoretical and Historical Aspects 6 1 onJy survive the reestabljshment of peace, but will at that moment attain its full scope and intensity. T h e y cannot therefore conceal from themselves that the agreements which are being prepared for this purpose between their enemies have the obvious object of establishing the domination of the latter over the produclion and the markets of the whole world and of imposing on other countries an intolerable yoke. In the face of so great a peril, the representatives of the All ied governments consider that it has become their duty, on grounds of necessary and legitimate defense, to adopt and realize from now onward all the measures requisite on the one hand to secure for themselves and for the whole of the markets of neutral couniries full economic independence and respect for sound commercial practice and, on the other hand, to facilitate the organization on a permanent basis of their economic alliance.^ I n this p r e a m b l e t!ie spirit w h i c h d o m i n a t e d the conference becomes c lear . T h e e c o n o m i c sovere ignty , e v e n of the defeated e n e m y , is not quest ioned, and it is supposed that e c o n o m i c war wi l l c o n t i n u e after the e n d of mil i tary war , U n d e r this assumption the m a i n preoccupat ion of the Al l ies b e c a m e " e c o n o m i c defense ," w h i c h is very often indist inguishable from e c o n o m i c warfaie.'^ W e are interested here i n the resolutions of the conference only so far as they deal w i t h the transit ion p e r i o d o r wi th the p e r m a n e n t arrangements after the war. T h e s e sections, r e p r o d u c e d in A p p e n d i x B, should be read in their entirety. I n d e e d , they m a k e famil iar reading. O n e after a n o t h e r ^ve find e n u m e r a t e d all the f u n d a m e n t a l policies of refined e c o n o m i c nat ional ism w i t h w h i c h w e have b e c o m e so ivell a c q u a i n t e d in the per iod b e t w e e n the t w o wars—restricted access to raw materials a n d resources, preferent ia l treatments a n d discr iminat ions, restrictions on the activit ies of aliens, a n t i d u m p i n g legislation, differential transport rates, autarky, not only w i t h respect to key industries, b u t on a practical ly universal scale by means ' ^ Q u o t e d f rom H . W. V. T e m p c r l e y , A History of the Peace Conference of Paris, Vol, V { L o n d o n , 1921), p . 3G7. »• Le Teji\f)s h a d a s o m e w h a t Iv ikcwa im a t t i t u d e t o w a r d t h e conference a n d s h o w e d the a b s u r d i t y of this pos i t ion even f rom a n a t i o n a l i s t i c po int of view, " W e think that the m a i n e c o n o m i c task of the C o n f e r e n c e is not to e l a b o r a t e this m o d e s t r^ply to a pro jec t which is a s s u m e d to be a l r eady rea l ized , b u t on the contrary by all m e a n s to prevent the rea l i za t ion of this pro jec t a n d Ihe f o r m a t i o n of this M i t t e l e u r o p a , a l t h o u g h s o m e per sons a p j i a r e n t l v w o u l d l ike to confine themse lves l o p r e p a r i n g a sh ie ld a g a i n s t its b lows . "—/.e Temps, Jime 15, 191C. 62 National Power and Foreign Trade o f s u b s i d i e s , tar i f fs , p r o h i b i t i o n s , e tc . E v e n a c u r s o r y v i e w of t h i s a m a z i n g P a n d o r a ' s b o x r a i s e s d o u b t s w h e t h e r t h e s e m e a s u r e s w e r e d e v i s e d for d e f e n s e o n l y . T h e P a r i s R e s o l u t i o n s w e r e t o b e c o n s i d e r e d a s a b a s i c p r o g r a m . E a c h of t h e A l l i e s p r o m i s e d t o w o r k o u t i ts o w n p r o g r a m i n t e r m s of n a t i o n a l p o l i c i e s . E a c h , f u r t h e r m o r e , w a s t o b e i n f o r m e d o f the p r o g r a m d e c i s i o n s o f t h e o t h e r . T h e a g r e e m e n t h a d n o t b e e n r e a c h e d ea s i ly . T h e F r e n c h a n d E n g l i s h d e l e g a t i o n s m e t w i t h s o m e res i s ta n c e f r o m the R u s s i a n a n d I t a h a n d e l e g a t i o n s . B e f o r e t h e w a r t h e t w o l a t t e r c o u n t r i e s h a d r e l i e d h e a v i l y o n t h e G e r m a n m a r k e t a n d v i e w e d w i t h s o m e a p p r e h e n s i o n t h e p o s s i b i l i t i e s of G e r m a n re p r i s a l s . T h e R u s s i a n d e l e g a t e s o p p o s e d t h e p e r i o d o f five y e a r s w h i c h h a d b e e n p r o p o s e d b y t h e E n g l i s h d e l e g a t i o n a s t h e m i n i m u m p e r i o d d u r i n g w h i c h G e r m a n y w a s t o b e e x c l u d e d f r o m m o s t f a v o r e d n a t i o n t r e a t m e n t ; R u s s i a o b t a i n e d t h e m u c h v a g u e r w o r d i n g " f o r a n u m b e r o f y e a r s t o b e fixed by m u t u a l a g r e e m e n t . " ^ T h e R u s s i a n g o v e r n m e n t , h o w e v e r , w a s m a i n l y f e a r f u l les t t o o i n t i m a t e a n u n d e r s t a n d i n g w i t h t h e A l l i e s o n p o s t w a r e c o n o m i c p o l i c y m i g h t , b y t h e e s t a b l i s h m e n t o f c o n v e n t i o n a l tar i f fs , r e s t r i c t R u s s i a ' s c o n t e m p l a t e d fu l l u s e o f e c o n o m i c s o v e r e i g n t y . T h i s is evid e n t f r o m the g o v e r n m e n t a l i n s t r u c t i o n t o t h e d e l e g a t e s , w h i c h u n d e r l i n e d " t h e n e c e s s i t y o f a t h o r o u g h g o i n g , u n h i n d e r e d d e v e l o p m e n t o f o u r p r o d u c t i v e f o r c e s a n d o r g a n i z a t i o n o n a s l a r g e a s c a l e a s w i l l b e p r a c t i c a b l e of o u r v a s t n a t u r a l r e s o u r c e s . . . . I n o r d e r t o a v o i d t h e e n s l a v e m e n t o f o u r i n d u s t r y b y f o r e i g n e n t e r p r i s e s a n d t o m a k e it a b s o l u t e l y i n d e p e n d e n t w e m u s t , a s a j u s t m e a s u r e , c r e a t e a u t o n o m o u s tar i f fs , w h e r e t h e tarif f o n g o o d s is n o t fixed b y a g r e e m e n t w i t h i n d i v i d u a l c