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Friedrich List and His Relevance for Development Policy

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Friedrich List and His Relevance for Development Policy A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Garbe, Otfried Article — Digitized Version Friedrich list and his relevance for development policy Intereconomics Suggested Citation: Garbe, Otfried (1977) : Friedrich list and his relevance for development policy, Intereconomics, ISSN 0020-5346, Verlag Weltarchiv, Hamburg, Vol. 12, Iss. 9/10, pp. 251-256, http://dx.doi.org/10.1007/BF02928808 This Version is available at: http://hdl.handle.net/10419/139493 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu DEVELOPMENT RESEARCH Friedrich List and His Relevance for Development Policy by Otfried Garbe, Bonn * Economic Independence and a New Economic Order were international poliUcal Issues long before the North-South controversy was heard of. They were set out as objectives in the USA as early as the beginning of the 19th century. There are striking parallels, even in phraseology and argumentation, between the political-economic conflict between the USA, a weak ex-colonlal state, and England, the world power of that time, and the North-South controversy going on at present. riedrich List was one of the men who played a bore their power-political implications in mind, an F prominent part in the heated discussion about analytical approach which is in the present North- "Full Independence" and a "Declaration of Eco- South controversy often treated as secondary to nomic Independence" 1 in the young American the economic and humanitarian aspects of the state. List had come to the USA as a political conflict. refugee from his Swabian home-town of Reutlin- gen. Lafayette introduced him into leading Ameri- Like the states of the Third World today, the USA can circles. In Germany he had been denounced long after the achievement of independent state- as "ultra-liberal" and "virtually a revolutionary". hood still considered its political independence During his five years' stay in America he gained and the pursuit of an autonomous foreign policy to renown by various activities. Two townships, a be at risk. In the early 19th century the USA was a colliery and one of the first American railroads (it weak and vulnerable state, not only in comparison was officially opened on November 11, 1831) owed with France or Russia. Its merchant shippinq was their origin to his initiative. Later he was to become frequently brought to a standstill by British and the Consul of the USA in Saxony and Baden. Much French privateers, and the young state was so more influential he was however as the author of weak that it had difficulty in holding its own even a political-economic pamphlet, the "Outlines of against pirates in the Mediterranean. The second American Political Economy", which he published British-American war in 1812/14 almost ended with in the USA exactly 150 years ago 2. an American defeat 4. It was in this pamphlet that List, drawing to some The Monroe Doctrine of 1823 was the most salient extent on German and American sources, evolved demonstration of the striving for political autonomy ideas of development and trade policy which are in this early phase of American policy. In view of being taken forward today, at times in a compli- the relative weakness of the USA it was an act of cated technical idiom although of course also with political defensive by a young state in a peripheral some theoretical refinements. In his American situation in relation to "world events" rather than writings he formulated already ideas of the "de- the manifestation of a desire for hegemony. The pendency theory", the concept of "balanced and principal purpose of this Doctrine - which Bis- unbalanced growth" and "the external effects"3 marck still described as an "international imper- In developing these economic ideas, List always tinence" - was to ward off, partly with an eye to " Foreign Office. The author is expressing here his personal views. 3 Topical references in List's work have been pointed out especially by Werner S t r ~ s s I i n, Friedrich Lists Lehre von Friedrich List, Outlines of American Political Economy (The der wirtschaftlichen Entwicklung (Friedrich List's teaching on eco- American System), in: Friedrich List, Schriften/Reden/Briefe, VoI. nomic development), Basle 1968, and Dieter S e n g h a a s, first II, Berlin 1931, p. 107, and also Philadelphia Speech (1827), ibid, in: Leviathan, No. 2, 1975, cf the article: Friedrich List und die neue Vol. II, p. 167. internationale 6konomische Ordnung (Friedrich List and the new 2 List's stay was described by William Notz in particular. In addi- international economic order). tion to the introduction to Volume II of the full edition cf the same Cf. Udo S a u t t e r, Geschichte der Vereinigten Staaten (History author in: Weltwirtschaftliches Archly, 21st Volume (1925 I), p. 199- of the United States), Stuttgart 1976, and Hans R. Guggis- 265, and 22nd Volume (1925 II), p. 154-182. b e r g, Geschichte der USA (History of the USA), Stuttgart 1975. INTERECONOMICS, No. 9/10, 1977 251 DEVELOPMENT RESEARCH the USA's own security, an intervention by the Holy of finished manufactures whereas the foreign trade Alliance in South America and a possible recoloni- of the USA had on the whole retained its colonial zation of the republics there which had only just structure and still resembled the foreign trade gained their independence. The USA, besides, patterns exemplified by some of today's more wanted to draw a dividing line, morally and politi- advanced developing countries: s cally, between the old states of Europe and the new system of American states who of course Exports Imports regarded themselves as "superior". (in p. c.) The parallels between this US policy and the steps Crude materials 62.7 7.9 of Third World states which had originally foreign- Crude foodstuffs 5.1 11.9 political motives are obvious. The preservation of Semi-manufactures 6.8 7.9 political independence which had just been achiev- Manufactured foodstuffs 17.0 15.9 ed in hard struggles was the cardinal issue in the Finished manufactures 8.5 57.1 foreign-political debates at the Bandung confer- ence in 1955. East and West were at that time The principal trading partner of the USA was of equally intent on, at least, consolidating their course England, the former colonial power. The spheres of influence. The colonial question and USA supplied England chiefly with tobacco and economic problems were in comparison still of cotton and bought finished manufactures. Eng- secondary importance (although the "formulation land, the "workshop of the world", enjoyed a clear of common policies" on oil was already demanded monopoly in the US market for the most important at Bandung in 1955). manufactures: over 90 p.c. of the cotton manu- factures and over 97 p.c. of US imports of wool The New Economic System and woollen manufactures came from England 6. Soon after the proclamation of the Monroe Doctrine Dependence of the USA the controversy about a New Economic System became one of the dominant issues of US domestic In his analysis of the economic and political de- policy. The political aim was an "American System" pendence of the USA List anticipated many ideas which implied a disavowal, both in concept and and in part even the terminology of the "depen- content, of the "British System", of the postulate dency theory". England was at that time the "pre- of free trade and the principle of "laissez-faire". dominant political power", and its "national econ- omy is predominant" said List. America's depen- Essential ingredients of the "American System" were state-promoted industrialization and active dence on raw material exports was a "source of encouragement of internal trade combined with calamity and of weakness". US agriculture was temporary attenuation of foreign commerce through depending upon "foreign markets, foreign fluc- tuation of prices, foreign regulations and restric- a policy of protective import duties. tions" and was ultimately the "appurtenance of In part the "American System" was directly linked another entity" 7 to ideas voiced in the early years of the USA. The These few quotations illustrate how List was always first US Secretary of the Treasury, Alexander linking economic to political analysis. It was his Hamilton, had developed similar ideas in his "Report view that the American population was affected on Manufactures". List referred in his writinas also more by decisions of the dominant power, England, to the Congress debates on the very first US law than by the US Congress. This economic depen- which was a customs tariff law with in part protec- dence coupled with political independence was in tionist aims, intended to encourage "infant manu- List's view the worst possible combination for the factures" and shelter small manufactures started USA, for "in consequence of becoming politically up during the War of Independence.
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