Experts of the World Economy: European Stabilization and the Reshaping of International Order, 1916-51
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Experts of the World Economy: European Stabilization and the Reshaping of International Order, 1916-51 The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters Citation Martin, James R. 2016. Experts of the World Economy: European Stabilization and the Reshaping of International Order, 1916-51. Doctoral dissertation, Harvard University, Graduate School of Arts & Sciences. Citable link http://nrs.harvard.edu/urn-3:HUL.InstRepos:33840741 Terms of Use This article was downloaded from Harvard University’s DASH repository, and is made available under the terms and conditions applicable to Other Posted Material, as set forth at http:// nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of- use#LAA Experts of the World Economy: European Stabilization and the Reshaping of International Order, 1916- 51 A dissertation presented by James Robert Martin To The Department of History in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the subject of History Harvard University Cambridge, Massachusetts September 2016 © 2016 James Robert Martin All rights reserved. ! Dissertation Adviser: David R. Armitage James Robert Martin Experts of the World Economy: European Stabilization and the Reshaping of International Order, 1916-51 ABSTRACT This dissertation traces the origins of the earliest international schemes to manage the world economy between the middle of the First World War and the conclusion of the Second. It follows the emergence of a transnational network of economic experts, affiliated with the League of Nations and the International Labour Organization, who attempted to create a new form of international administration in response to the challenges of stabilizing Europe after the First World War. These experts included economists, statisticians, bankers, officials from various state bureaucracies, and international civil servants from many different European states, including France, Britain, Germany, Austria, Italy, and Sweden, as well as from the United States. It investigates how they developed a new role for the economic expert on the international stage in response to a series of crises: the food, raw materials, and shipping shortages of the First World War and its immediate aftermath; the hyperinflation of postwar Austria; the deflationary crisis of 1920-1; and the Depression. Their efforts not only helped to reshape the imagination and practices of international governance, but the research they sponsored also transformed how the “world economy” was understood. Their work was not radically interrupted by the outbreak of the Depression and the Second World War; rather, it provided sources of expertise and techniques of governance for Anglo-American plans to reshape international order after the Second World War. Drawing on documents from over twenty archives, this dissertation shows how dominant conceptions of sovereignty, international organization, and capitalism were iii transformed during this period of serial crisis, and how the unorthodox idea of bringing the world economy under international bureaucratic control became a new common sense. In so doing, it locates the long-term intellectual, political, and institutional origins of the international economic order created after the Second World War, and of the kind of international technocratic management of global capitalism that persists to this day. iv TABLE OF CONTENTS ACKNOWLEDGEMENTS viii ABBREVIATIONS xii INTRODUCTION 1 PART I: PRECEDENTS CHAPTER ONE: 25 The Wartime Origins of International Economic Management: Food, Raw Materials, and Shipping, 1916-20 I.! The Great War and the Future of International Organization II.! The Evolution of the Inter-Allied System III.! Planning for the Postwar at the French Ministry of Commerce IV.! British and American Views of the Postwar V.! The Supreme Economic Council and Economic War During the Peace VI.! The Legacies of Wartime Cooperation CHAPTER TWO: 78 The Internationalization of Colonial Economic Administration: Strategies for Postwar Stabilization, 1920-23 I.! Postwar Efforts to Return to the Prewar II.! Technical Assistance at the League of Nations, 1920-23 III.! Planning the Financial Reconstruction of Austria, 1921-22 IV.! The Problem of Colonial Precedents to Financial Control V.! From Colonial Administration to International Governance v PART II: RESEARCH CHAPTER THREE: 133 Understanding Interdependence: Crisis, Unemployment, and the Global Business Cycle, 1920-29 I.! Economists in International Organizations after 1918 II.! The ILO and the Search for a Theory of Unemployment, 1921-23 III.! The Beginning of Research on Economic Crises at the League, 1923-26 IV.! Understanding the Business Cycle as a Global Phenomenon V.! The 1927 World Economic Conference and the Coming Crisis CHAPTER FOUR: 175 The Mystery of the World Economy: Data and Depression, 1930-36 I.! The Depression as a Global Problem II.! The Origins of the League’s First Study of the World Crisis III.! The Challenges of Global Data Collection IV.! Surveying the World V.! Two Visions of the Global Business Cycle VI.! Could the World Economy be Understood? PART III: MANAGEMENT CHAPTER FIVE: 223 A “Thinking Machine” for India and China: The Origins of International Development during the Depression vi I.! Corporatism Between Europe and Asia II.! Building a National Economic Council in New Delhi III.! Economic Statistics and Nationalism in India IV.! The Origins of Economic Cooperation Between Nanjing and Geneva V.! Financing China’s Development VI.! Towards Economic Control Before World War II CHAPTER SIX: 276 International Plans for Reflation at the Outbreak of War, 1938-41 I.! Schemes for Coordinated Expansion in the 1930s II.! International Public Works at the ILO and League of Nations III.!Three Plans for an Expanding World Economy IV.!The Beginning of Postwar Planning, 1939-41 CHAPTER SEVEN: 316 Postwar Economic Planning for an Expanding World Economy, 1941-45 I.! Wartime Visions of Expansion and Stability II.! British Planning, 1941-42 III.! American Planning, 1941-42 IV.! The Contributions of the ILO & League of Nations, 1941-43 V.! The Eclipse of Expansionary Planning in 1943 VI.! Towards a New World Economic Order? EPILOGUE 353 BIBLIOGRAPHY 364 vii ACKNOWLEDGEMENTS There were many people who helped to shape this project and who provided support, encouragement, and friendship during my years at Harvard. First, I am deeply grateful to David Armitage. Not only did David help me to imagine the original idea for this project, but his enthusiasm and intellectual engagement were indispensable as it took shape. His insightful comments on my writing, and the many conversations we shared, consistently renewed my excitement in scholarship and encouraged me to push the project in new directions. I am so thankful for having been able to count on his support and guidance. Throughout my graduate work, Charles Maier constantly challenged me to sharpen and broaden my understanding of the history of Europe and the modern international system, and I owe to him both the inspiration for the shape of this project and the conceptual tools that I brought to it. I am also very grateful to Samuel Moyn for his help refining the critical and historiographical stakes of the project, and his feedback on so many pieces of writing. His support was invaluable. Adam Tooze provided intellectual inspiration, friendship, and incredibly detailed comments on the entire dissertation. I am lucky to have had the experience of co-authorship with him, and to have taken part in the workshop he convened in April 2013 on the “invention of the economy” at Yale. There are several other professors at Harvard University who provided guidance and feedback over the years. Peter Gordon helped me to navigate Harvard during my first years there, and I owe him countless thanks for his kindness and support with so many aspects of the graduate program. Emma Rothschild encouraged me to explore the history of economic ideas, and I am grateful to her for providing me a home at the Center for History and Economics. David Blackbourn profoundly shaped my understanding of modern Europe during the intense reading viii groups of my first year. Though I moved away from a dissertation on German history, David’s influence continues to inform my understanding of the historical profession in many ways. Patrice Higonnet provided me with necessary tools for the study of European modernity, and I am grateful for his friendship throughout my time at Harvard. I owe Mary Lewis many thanks for encouragement and feedback on this project, and I look forward to carrying on our conversations about the history of debt and modern politics. Maya Jasanoff was supportive throughout my time at Harvard, and gave me particularly helpful comments on the history of shipping for an early chapter draft. Several institutions at Harvard supported this project. The Center for European Studies provided me with an institutional home and funds for research travel. The Center for History and Economics was a site for weekly discussion during the first years of my PhD, and the Weatherhead Center provided a grant for travel after my first year. The Graduate School of Arts and Science supported research travel during my second summer. Other institutions that provided support were the Hoover Institution Archives Workshop and the ACLS/Mellon Dissertation Completion Fellowship. I owe a debt of gratitude to the many librarians and archivists who helped with research, particularly at the archives of the League of Nations, the International Labour Organization, the Hoover Institution, the Churchill College Archives Centre, and the Rockefeller Foundation Archives. Matthew Corcoran and Dan Bertwell provided an incredible amount of help and advice throughout the entire graduate program. There are many other scholars who have shaped this project and supported my work over the last few years. I am particularly grateful to Glenda Sluga for her tireless encouragement and intellectual engagement, and I look forward to more conversations at the University of Sydney. Quinn Slobodian helped me to refine the interventions of this project on countless occasions.