16 Lecture : March 19th 2012 :
Old Politics vs New Politics :
Keohane: embedded liberalism
E-A : Left
Norris : New right
Post war settlements : France, Germany and UK
Problem in German politics that emerged in the 1960 : TOO MUCH CONSENSUS
Who governs : the party or the trade unions UK
Italy and France : the exclusion of the labor
Re-cap :
Labour excluded cases :
Moderation of the left comes later both in France and Italy . Moderation of the left comes
after an episode of labor militancy . In France this episode is : MAY/ June 1968 . There is
an episode of wide spread labor unrest in 1968 and mutates into attack on the institutions
of the 5th Republic.
Similar episode of 1970 in Italy : The HOT AUTUMN. Mobilization from the left.
Similarities of their post war settlement :
1. in both cases you have powerful communist parties and powerful communist trade
unions.
2. Parties from the left are excluded from political power in 50s and 60s . One exception
is the regular appearance of the socialist party as a coalition that governs France in
the 4th Republic.
Differences of the post war settlement :
1. Difference in the presence of the state : state planning is not important in Italy , but it
is much important in France. In France it is important for setting targets for selective
industries. State in Italy is a weaker state than the French State.
2. In Italy it is the legislature that dominates politics not the political executive : the
bureaucracy is much more important player in France than in Italy. France in 4 th and
5th Republic : modernization of bureaucracy that links business and state.
3. Institutional continuity in Italy : institutional Discontinuity of France. Italy lives
under the first republic., stable as a constitution and regime. France moves from the
4th to the 5th.
In Italy one party that dominates the politics, The Christian Democratic Party :
embedded to a Catholic Network it draws from the linkages of the Church.
The second thing that allows the Christian Democratic Party to be hegemonic : bridges
the divisions between North and South in Italy.
The third characteristics, uses patronage politics to mobilize support.
4. Regional divisions were more important in Italy than in France. The division
between north and south was never revolved at unification in the formation of the
Italian state continues to be an issue in Italian Politics.
OLD POLITICS and NEW POLITICS
OLD AND NEW LEFT
OLD AND NEW RIGHT
Something fundamental begins to change in Europe : European Politics begins to change in the
late 1960s and 70s.
The change is a consequence of a generational change : a new generation is active in Europe that
was fully exposed before . IT was exposed to WW2 and the economic construction. This group is
coming to political maturity when the economic construction and economic growth is going to an
end in the 1950s 60s.
The episodes of labor militancy : student were very important factors as the workers. The
ecological movements and parties evolved from students
OLD POLITICS : the politics of class. The notion here is that the consolidation of liberal
democracy post 1945 depend ended of class compromise.
Keohane : Post war settlement is embedded liberalism!!!
EMBEDDED LIBERALISM : characteristic of European political economy of 1960s 70s. period
of easy economic growth in Europe. The coming to an end to the economic reconstruction of
WW2. Particular type of system and regime : foreign economic policy states or regimes that are
committed to free trade and economic openness ( LIBERAL part) but domestically these state
have well developed social welfare systems- regulations of how individuals are connected to
markets. Insurance system for the periods in which the international economy is transmitting
BADS.
A welfare state will allow you to continue to maintain international economic openness.
AT WHAT POINT THE STATE WILL RESORT TO PROTECTION INTERNATIONALLY AS
A SUPLEMENT THE TO WELFARE STATE !!!!
THE ARGUMENT IMPLICIT TENSION BETWEEN ITNERNATIONAL OPENNES AND
DOMESTIC INTERVANTION THIS TENSION IS NOT EXPOSED UNTIL THE 1970S . IT
IS NOT EXPOSED BECAUSE IT IS NOT THE BALANCED SHIFTS FROM GOOD TO BAD
FROM THE OPEN ECONOMY. IT IS ARGUMENT THAT POST WAR SETTLEMENT AND
EMBEDDED LIBERALISM THAT HAD SHORT LIFE BECAUSE THEY DEPENDEND OF
PARTICULAR ECONOMIC CONJUCTURE BETWEEN DOMESTIC INTERVENTION AND
INTERNATIONAL OPENEES. THIS CONJUCTURE DEPENDED ON :
1. EASY ECONOMIC GROWTH,
2. AMERICAN HEGEMONY
3. THE COMPETITIVE COMPERATIVE ADVANTAGE OF EUROPEAN
ECONOMIES IN THE 1950S-60S
THREE THINGS BEGIN TO CHANGE : 1960S 70S
1. TERMS OF TRADE : AS A CONSEQUENCE OF THE OIL SHOCK OF 1973 THE
RAW MATERIALS PRICES WENT UP DRAMATICALLY - increase the price
of inputs
2. RELATIVE DECLINE OF AMERICAN HEGEMONY
3. CAPITALISM
HAS
EXPANDED
TO
THE
PERIPHERY:
MORE
COMPETITITON IN THE INTL. ECONOMY AND WORLD ECONOMY
All of these creates problems of embedded liberalism.
ARGUMENT
1. LEVEL OF ANALYSIS
: INTERNATIONAL AND DEMOSTIC LEVEL OF
ANALYSIS . HE IS ARGUING HOW STATES RESPOND AT THE DOMESTIC
LEVEL AT CHANGES AT THE INTERNATIONAL LEVEL IN THE ECONOMY.
IT IS IMPORTANT TO ADD THIS THESE CHANGES ARE FOR THE MOST
PART THAT NO SINGLE STATE CAN CONTROL. CHANGES OF THE
INTERNATIONAL LEVEL OVER WHICH NO SINGLE STATE HAS
INFLUENCE . how these changes are processed in the domestic level. YOU LOOK
FOR DOMESTIC RESPONSES TO THE EXOGENOUS CHANGES OF THE
INTL ECONOMY. DOEMSTIC INSITUTTIONS PROCESS THE EXOGENOUS
CHANGES . THE EXPLANATIONS WILL BE STATE LEVEL EXPLENATIONS.
2. DIFFERENT TYPES OF ITNERNATIONAL ECONOMIES : OPEN ECONOMY :
economy with very few barriers to trade. The point about open economies : they
transmit both goods and bads :they can transmit inflation and growth. From the
most part of the 1950s-60s : growth intl level, without inflation domestic level. By
the mid 1970s : it is not prosperity , it is stagflation, lower growth and higher
inflation that is being produced.
3. IMPORTANCE OF THE SIZE OF THE DOMESTIC ECONOMY : the ratio
between domestic gross product and total world economic activity : ONE
ECONOMY IN THE WORLD on its own has consequence on the ECONOMY :
THIS IS THE US ECONOMY. LARGE AND COMPERATIVELY EFFICIENT. IN
THE SAME TIME PERIOD HAS COMPARTIVE ADVANTAGE IN THE USE OF
FORCE ( POWERFUL MILITARY) HEGEMONIC POWER.
About American hegemony : support for international openness in world economy. It
supported the intl financial regime, the US economy supported and contributed to econ.
Reconstruction of Europe via the Marshal Plan.
1966 : US is a declining hegemon. Domestic problems of inflation and recession.
Keohane argues that this is a consequence of the Vietnam War and the emergence of the
competition in the periphery of world economy.
In between the old politics and the new politics is a period of change 60s- 70s : Keohane
emphazises the changes between old and new :
His argument : post war settlements is more than domestic political bargaining, he is interested in
the ways in which the international political economy had consequences of post war settlements
and embedded liberalism. Post war settlements are stable because they emerged in a particular
economic conjecture and as the conjecture changes the post war settlements will change.
Esping Anderson : connects postwar settlement to industrial capitalism, to the politics of the
old left. How changes to industrial capitalism had affected the polarization of class. He wants to
examine how post industrial society affects class relations and politics of class. He is going to
argue that changes to industrial capitalism creates new winners and new losers. New classes will
emerged as a consequence of the movement from industrial to post industrial society. How the
left will organize itself when the class structure had began to change.
Norris : interested in the new right how it is expressed politically