Abstract
The two most enduring contemporaneous accounts of the inter-war period are E. H. Carr’s The Twenty Years’ Crisis and Karl Polanyi’s The Great Transformation. The perspectives from which the two authors wrote could barely have differed more. Carr is best remembered today for pulverizing the idealist foundations of liberal internationalism, and thereby preparing the ground for the postwar ascendancy of realist discourse in the academic study of international relations. Polanyi;s intellectual pedigree and legacy are more complex. He delivered a searing indictment of the social destructiveness of unregulated market forces and the moral mutilation he attributed to market rationality. For these views, Polanyi was later adopted by the New Left. However, he anchored his critique in an organic conception of society that was, in point of fact, deeply conservative in the traditionalist sense of that term.
An earlier version of this chapter was presented as the 1994 Jean Monnet Lecture at the European University Institute in Florence.
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1. E. H. Carr; The Twenty Years’ Crisis, 1919–1939: An Introduction to the Study of International Relations, second edition (New York: Harper & Row, 1964, first edition 1939), and Karl Polanyi, The Great Transformation: The Political and Economic Origins of Our Time (Boston, MA: Beacon Books, 1944,reprinted 1957).
8. These words were taken almost verbatim from the ITO Charter, which the Soviets had a hand in drafting. See Jacob Viner, ‘Conflicts of Principle in Drafting a Trade Charter’, Foreign Affairs, Vol. 25, No. 4 (1947), pp. 612–28, and Herbert Feis, ‘The Conflict Over Trade Ideologies’, Foreign Affairs, Vol. 25, No. 2 (1947), pp. 217–28.
Richard Blackhurst, ‘The Twilight of Domestic Economic Policies’, The World Economy, Vol. 4, No. 4 (1981), pp. 357–74.
Patricia Kalla, ‘The GATT Dispute Settlement Procedure in the 1980s: Where Do We Go from Here?’, Dickinson Journal of International Law, Vol. 5, No. 1 (1986), p. 95.
Sylvia Ostry, ‘Beyond the Border: The New International Policy Arena’, in Strategic Industries in a Global Economy (Paris: Organization for Economic Cooperation and Development, 1991), pp. 83–4.
16. The two positions are illustrated, respectively, by Jagdish N. Bhagwati, The World Trading System at Risk (Princeton, NJ: Princeton University Press, 1991), pp. 24–44; and Kozo Yamamura, ‘Will Japan’s Economic Structure Change? Confessions of a Former Optimist’, in Yamamura (ed.), Japan’s Economic Structure: Should It Change (Seattle, WA: Society for Japanese Studies, University of Washington, 1990), pp. 13–64.
19. Ryutaro Komiya and Motoshige Itoh, ‘Japan’s International Trade and Trade Policy, 1955-1984’, in Takashi Inoguchi and Daniel I. Okimoto (eds.), The Political Economy of Japan, Volume 2, The Changing International Context (Stanford, CA: Stanford University Press, 1988), p. 203.
23. Peter F. Co whey and Jonathan D. Aronson, Managing the World Economy: The Consequences of Corporate Alliances (New York: Council on Foreign Relations, 1993), Chapter 8.
William J. Drake and Kalypso Nicolaidis, ‘Ideas, Interests, and Institutionalization: "Trade in Services" and the Uruguay Round’, International Organization, Vol. 46, No. 1 (1992), p. 37 and n. 1.
27. See Drake and Nikolaidis, ‘Ideas, Interests and Institutionalization’; and John M. Curtis and Robert Wolfe, ‘Nothing is Agreed until Everything is Agreed: First Thoughts on the Implications of the Uruguay Round’, in Maureen Appel Molot and Harald von Riekhoff (eds.), A Part of the Peace: Canada Among Nations 1994 (Ottawa: Carleton University Press, 1994), 101–28.
See Jagdish N. Bhagwati, ‘Trade in Services and the Multinational Trade Negotiations’, World Bank Economic Review, Vol. 1, No. 4 (1987), pp. 549–69.
Ibid. Kenneth Waltz made a similar case in a controversial paper a quarter of a century ago, using as his measures of internationalization: (1) the size of the external sector of the major economic powers relative to their domestic economies, and (2) the degree of intersectoral specialization in their trade. See Kenneth N. Waltz, ‘The Myth of National Interdependence’, in Charles P. Kindleberger (ed.), The International Corporation (Cambridge, MA: MIT Press, 1970), pp. 205–23. With intra-sectoral trade flows dominating among the major economies, the second part of Waltz’s definition is a truism. The first is less the case today than it was in 1970, but more importantly it is also less relevant, for reasons I will discuss presently.
The standard conceptual works are Oliver E. Williamson, Markets and Hierarchies (New York: Free Press, 1975), and Walter W. Powell, ‘Neither Market nor Hierarchy: Network Forms of Organization’, Research in Organizational Behavior, Vol. 12 (1990), pp. 295–336. For a suggestive application of these concepts to the evolution of international corporate strategies and structures, see Stephen J. Kobrin, ‘Beyond Geography: Inter-Firm Networks and the Structural Integration of the Global Economy’ (Philadelphia, PA: William H. Wurster Center for International Management Studies, Wharton School, University of Pennsylvania, Working Paper 93–10, November 1993).
John M. Stopford and Susan Strange, Rival States, Rival Firms: Competition for World Market Shares (Cambridge: Cambridge University Press, 1991), p. 40.
Richard N. Cooper, Economic Policy in an Interdependent World (Cambridge, MA: MIT Press, 1986), p. 96. A senior executive of Gillette, a major multinational consumer products firm, gives concrete expression to this generalization: ‘[i]n the long run currency fluctuations, up and down, don’t mean a whit in the decision where to manufacture’. Cited in Louis Uchitelle, ‘U.S. Corporations Expanding Abroad at a Quicker Pace’, New York Times, 25 July 1994, p. D-2.
The Discreet Charm of the Multicultural Multinational’, The Economist, 30 July 1994, pp. 65–6.
J. Steven Landefeld, Obie G. Whichard and Jeffrey H. Lowe, ‘Alternative Frameworks for U.S. International Transactions’, Survey of Current Business, Vol. 73, No. 12 (1993), pp. 50–61.
39. Japanese multinationals exhibit a more pronounced tendency to import from home country suppliers rather than purchasing locally, thereby adding fuel to US-Japan trade disputes. See Encarnation, Rivals beyond Trade; Mordechai E. Kreinin, ‘How Closed is Japan’s Market? Additional Evidence’, The World Economy, Vol. 11, No. 4 (1988), pp. 529–42; and United Nations Centre on Transnational Corporations, World Investment Report, 1991: The Triad in Foreign Direct Investment (New York: United Nations, 1991).
Stephen J. Kobrin, ‘An Empirical Analysis of the Determinants of Global Integration’, Strategic Management Journal, Vol. 12 (1991), p. 20.
Joseph Grunwald and Kenneth Flamm, The Global Factory: Foreign Assembly in International Trade (Washington, DC: The Brookings Institution, 1985).
42. Kobrin’s work is particularly helpful in conceptualizing this transformation. See Kobrin, ‘Beyond Geography’ and ‘Empirical Analysis’. For a critical account of its consequences, in the industrialized countries as well as the Third World, see Richard J. Barnet and John Cavanagh, Global Dreams: Imperial Corporations and the New World Order (New York: Simon & Schuster, 1994).
See Jane Sneddon Little, ‘Intra-Firm Trade: An Update’, New England Economic Review (May/June 1987), pp. 46–51; Mark Cassons, Multinationals and World Trade (London: Allen & Unwin, 1986); and the earlier but still useful study by Gerald C. Helleiner, Intra-Firm Trade and the Developing Countries (London: Macmillan, 1981).
Robert Reich, The Work of Nations (New York: Knopf, 1991), Chapter 25.
57. OECD, The Future of Social Protection (Paris: Organisation for Economic Cooperation and Development, 1988), Table 1, p. 10.
61. Cited in Frank Swoboda, ‘Reich Targets Several Job Programs’, Washington Post (28 January 1994), p.A-l.
Cited in Geoffrey York, ‘Grits Vow Radical Social Reform’, Globe and Mail (Toronto) (1 February 1994), p. A-7.
63. Cited in ‘Mr. Clarke’s Manifesto’, Editorial, Financial Times (5 May 1994), p. 17.
Cited in E. J. Dionne, Jr., ‘Europe’s Preoccupation’, Washington Post (11 January 1994), p. A-ll.
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Ruggie, J.G. (2002). At Home Abroad, Abroad at Home: International Liberalization and Domestic Stability in the New World Economy. In: Hovden, E., Keene, E. (eds) The Globalization of Liberalism. Millennium. Palgrave Macmillan, London. https://doi.org/10.1057/9780230519381_6
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