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Lecture 4.2 International cooperation and competition during the long boom. Introduction. Insufficiency of national explanations (yesterday) Systemic explanations Hegemonic Stability Theory Dependency / neo-colonialism Arms spending. revisited.
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Lecture 4.2 • International cooperation and competition during the long boom
Introduction • Insufficiency of national explanations (yesterday) • Systemic explanations • Hegemonic Stability Theory • Dependency / neo-colonialism • Arms spending revisited
US Hegemony and Hegemonic Stability Theory • U.S. Economic pre-eminence • U.S. become ‘willing’ to assume hegemony • domestic debates / interests • international alliances (e.g. City of London - Helleiner) • H.S.T. after Kindleberger- Liberal HST • 1 Capital flow to poorer countries • 2 Order in foreign exchange • 3 At least moderate macro-economic coordination • 4 Open market for distressed goods, supply of scare goods • 5 Lender of last resort
Direct U.S. interventions • War-time loans (Lend Lease) • Marshall Aid - other Overseas Development Aid • Military interventions / occupations • Overseas investment • International Institutions • IMF (contrast Keynes’s ‘Clearing Union’ idea) • The Gold/Dollar Standard • World Bank • International Trade Organization/ General Agreement on Tariffs and Trade (GATT) • UN/NATO • Ideas • Keynesian / Social Democratic consensus • Cold War and anti-Communism • ‘regime’ of ‘embedded liberalism’ (Ruggie)
Dependency / neo-colonialism • Ambiguities of the inter-war period • De-colonisation • Predecessors: • Lenin, Baran, Singer-Prebisch, Frank • Unequal exchange (Emmaunel, Sau) • World-Systems Theory (Wallerstein) • Dependency and critique of ‘development’ • Underdevelopment as the source of core wealth • Qualitative dimensions (Magdoff) • Institutional Asymmetries and the international regime • The growing importance of oil
Permanent Arms economy • U.S. (Western) v U.S.S.R. (Eastern) competition • Baran/Vance/Cliff version – • arms spending as a stimulus - ‘military Keynesianism’ • Kidron/Harman version - arms spending as waste • i) reduces (the overaccumulation of) capital and Tendency of the Rate of Profit to Fall (TRPF) • p’ = s / (c + v) • ii) arms spending a greater cost to the US (and USSR) • (and UK and France?) • than to Germany and Japan (c.f. free riders and H.S.T.)
Conclusions? • US power and wealth stability (c.f. ‘30 years’ war) • Benefits from trade (not necessarily confined to comparative advantage) • Arms spending and systemic stimulus and stabiliser (!) • But adequate as theory? • " " " of the boom?? • " " " " " “ and the crisis???