| International relations theory |
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 Politicsportal |
State cartel theory is a new concept in the field of international relations theory (IR) and belongs to the group of institutionalist approaches. Up to now the theory has mainly been specified with regard to the European Union (EU), but could be made much more general. Hence state cartel theory should consider all international governmental organizations (IGOs) as cartels made up by states.
The term cartel in state cartel theory means – in very short words – an alliance of rivals. It is used in a neutral, strictly analytical way, not as a degradation. The terminology has been predominantly adopted from the old historical cartel theory of pre-World War II Europe. But additionally these terms have been checked and sometimes adjusted in their meanings to be able to incorporate political and governmental functions as cartel functions of the combined states.
State cartel theory is a hybrid design made up of two or more theories, assembled in an adequate way.
The method of theory creation consists of three steps:
In the final outcome a theory gets built, which – like the cartel theory of economic enterprises – based on the utilitarian image of man. Thus, state cartel theory is strictly determined by socio-economic factors. Since this approach prevents ideological influences it is not – neither evidently nor in a hidden or subtle manner – connected with the interests of any existing great power.
The philosophical precondition of the specified knowledge transfer from cartel theory is the – one century old – insight, that there are striking analogies between combinations of states and combinations of economic enterprises (i.e. the cartels formerly legal and of a great number in Europe). [1] These analogies are both institutionally and functionally adept.
The conception of international relations as potential cartel phenomena has a long tradition:
The cartel concept for closer forms of inter-state cooperation was counteracted by just a range of actors: by Leninism, American anti-trust policy and European federalists (e.g., Jean Monnet). This conception was first blamed, then ignored, and by the 1960s increasingly forgotten.
The breakthrough phase: The historical origin of a wider political cartelization is identified in the crisis of the capitalist system after World War II. [5] The breakdown of the anarchic – or imperialistic – world system in 1945 marks the beginning of the comprehensive inter-state cartelization of the western world. The extreme material, political and human losses and sacrifices led the nations – or more precisely: their ruling classes – to the conclusion that war and protectionism should not be used any more as weapons against each other to assure the survival of the free western world. This culminated in the General Agreement on Tariffs and Trade coming into force rather than in service of mankind on 1 January 1948.
The cartel relationship: The analysis of relations among the combined states is a basic instrument of state cartel theory. The aim is to identify the extent of their cooperation, of common interests on the one hand, and the amount of their competition, the dimension of divergence of their interests on the other hand. This is carried out essentially contrary to existing statements of the conventional theories of IR, e.g. the argument of interstate 'friendship' – which is the idealist or functionalist position – or a human drive for power – which is the realist position. This way, the basic relationship between the cooperation seeking capitalist states can be recognized as a quite rational, but also difficult friendship-rivalry, a relationship of cooperation and antagonism. [5] The Franco-German friendship can be seen as a paradigm for this and many examples of its ambivalence have been quoted. [6]
Hegemony analysis: The supremacy of the greater states – like that of the bigger enterprises – leads to overproportional assertiveness and thus to privileges for these actors obtained by persuasion or by force. On the other hand, integration brings about dependencies binding all participants. So there is a structure of symmetric and asymmetric connections, which can be found both inside and outside of the respective state cartels. The analysis of these complex forms of international relations is in the focus of state cartel theory and can lead to a global analysis of state cartels and state cartel effects. A not considered aspect is the "disrupter", often manifesting itself in opposition to real or perceived grievance brought to bear, at little relative cost, to its effect such as the attacks on the World Trade Center where two aircraft as weapons brought to sharp focus world attention the power of a new terror.
The organizational structure: In enterprise cartels the members' assembly was always the historically first and main institution of the combination. All further institutions had serving functions (secretary, bodies for market regulation, arbitration board) and were the result of the will and the needs of the members. This structure can be found alike in the combinations of states: the council of ministers or delegates is the members' assembly of the participating states (e.g. the Council of the European Union), it has a secretariat, there are operative commissions (e.g. the European Commission), and there can be an arbitration board/court (e.g. the European Court). [7] Additional institutions could be developed – in enterprise as in state cartels – according to needs.
On the democratic character of the European Union: The European Parliament is – according to state cartel theory – a less important, not really indispensable multifunctional communitarian institution of EU: [8] The most obvious function is the orchestration of a European democracy; at this, the democratic pretensions of parties and citizens of the member states are to be served symbolically – meaning: they often get sent to nowhere. Another function is the provision and application of more EU-expertise by the representatives of the single member states, being an additional channel to import national interests into the communitarian system. Finally, the European Parliament is able to influence the EU legislation slightly by its rights of participation: it can actually bias and improve decisions, which otherwise would be made exclusively by the mighty council, and this would often happen according to the notorious principle of the least common denominator. A significant increase in the rights of the parliament would challenge the system and pose the question: cartel or federal state. A process like this, which could really override the cartel-logic, could only develop with the support or at the instigation of a strong dominant group of member states.
Theory of ideology: While national-imperialist ideologies of the pre-1945 era being abolished, international institutions (state cartels) today spread an ideology of interstate cooperation: "Since war and protectionism should fall away as means of policy, a different stile of contact becomes necessary between the partner states. […] The nationalism of former days is repressed by an ideology of international understanding and friendship. The European Spirit gets evoked particularly in context of the European Union. The commandments of international understanding and European Communitarianship are the lubricant in the mechanics of the bargaining process in the state cartel. As ideologies they often make the relations look much better than they really are, but as appeals or instructions they could be eminently valuable. […] The Origin of the communitarian ideology in its pure occurrence are the central institutions of the EU, its commission and its parliament." [5]
The functional typology: The enterprise cartels of former times framed markets according to their interests, state cartels frame policies. While the aims of the standardization activities can be different, the methods and instruments of private and state cartels are often similar and always analogically comparable. Thereby the functional typology of the classical enterprise cartels is applicable also for interstate regulative communities. This typification by the purpose of the cartel can be demonstrated by means of the example of the European Union: [9]
The cartel gain: Cooperating within international institutions normally provides the participating states with substantial benefits. "The cartel gain of the EU consists of the various gains in prosperity, which result from economic integration and now make the member states adhere like being glued together. Any far-reaching disintegration, trying to go back to national autarchy, would invariably lead to an economic crisis, for which the Great Depression [in Europe] of 1929/33 should have been just a slight forerunner." [10] Transnational corporations and export-oriented national enterprises plus their employees and suppliers constitute a social power, which would hinder a breaking apart of the community. On the other hand, the cooperation in the state cartel is complicated because of distributional conflicts.
Tendencies for crises: According to state cartel theory inter-state organizations typically develop severe problems and crises. The European Union is seen to be in a permanent crisis. [11] The causes for this are thought to lie in the clashes of increasingly unbridgeable interests between the participating nations or just plain cupidity. The EU – as a particularly advanced cartel combine – would strike more and more against a systemic barrier of development, i.e. could only be upgraded effectively by a change-over of power, by a federal revolution, in which the cartel form will be conquered and a federal state – with its considerable potentials for rationalization – will be erected. [12]
State cartel theory suggests:
Thereby state cartel theory is partially in accordance or in opposition:
State capitalism is an economic system in which the state undertakes business and commercial economic activity and where the means of production are nationalized as state-owned enterprises. The definition can also include the state dominance of corporatized government agencies or of public companies in which the state has controlling shares.
A cartel is a group of independent market participants who collude with each other in order to improve their profits and dominate the market. A cartel is an organization formed by producers to limit competition and increase prices by creating artificial shortages through low production quotas, stockpiling, and marketing quotas. Cartels can be vertical or horizontal but are inherently unstable due to the temptation to defect and falling prices for all members. Additionally, advancements in technology or the emergence of substitutes may undermine cartel pricing power, leading to the breakdown of the cooperation needed to sustain the cartel. Cartels are usually associations in the same sphere of business, and thus an alliance of rivals. Most jurisdictions consider it anti-competitive behavior and have outlawed such practices. Cartel behavior includes price fixing, bid rigging, and reductions in output. The doctrine in economics that analyzes cartels is cartel theory. Cartels are distinguished from other forms of collusion or anti-competitive organization such as corporate mergers.
Communitarianism is a philosophy that emphasizes the connection between the individual and the community. Its overriding philosophy is based on the belief that a person's social identity and personality are largely moulded by community relationships, with a smaller degree of development being placed on individualism. Although the community might be a family, communitarianism usually is understood, in the wider, philosophical sense, as a collection of interactions, among a community of people in a given place, or among a community who share an interest or who share a history. Communitarianism usually opposes extreme individualism and rejects extreme laissez-faire policies that deprioritize the stability of the overall community.
Hegemony is the political, economic, and military predominance of one state over other states. Hegemony can be regional or global.
International relations (IR) are the interactions among sovereign states. The scientific study of those interactions is also referred to as international studies, international politics, or international affairs. In a broader sense, the study of IR, in addition to multilateral relations, concerns all activities among states—such as war, diplomacy, trade, and foreign policy—as well as relations with and among other international actors, such as intergovernmental organizations (IGOs), international nongovernmental organizations (INGOs), international legal bodies, and multinational corporations (MNCs). There are several schools of thought within IR, of which the most prominent are realism, liberalism, constructivism, and rationalism.
Globalism has multiple meanings. In political science, it is used to describe "attempts to understand all the interconnections of the modern world—and to highlight patterns that underlie them". While primarily associated with world-systems, it can be used to describe other global trends. The concept of globalism is also classically used to focus on the ideologies of globalization instead of its processes ; in this sense, "globalism" is to globalization what "nationalism" is to nationality.
A supranational union is a type of international organization that is empowered to directly exercise some of the powers and functions otherwise reserved to states. A supranational organization involves a greater transfer of or limitation of state sovereignty than other kinds of international organizations.
Liberal intergovernmentalism is a political theory in international relations developed by Andrew Moravcsik in 1993 to explain European integration. The theory is based upon and has further developed the intergovernmentalist theory and offers a more authentic perspective than its predecessor with its inclusion of both neo-liberal and realist aspects in its theory.
A continental union is a regional organization which facilitates pan-continental integration. Continental unions vary from collaborative intergovernmental organizations, to supranational politico-economic unions. Continental unions are a relatively new type of political entity in the history of human government. Throughout most of human history, political organization has been at the local level and in more recent centuries, the sub-regional ("regional")/sub-continental level ; however, starting with the advent of better transportation, weapons and communication there was for the first time the ability for a union of member states to organize at the continental level. After the devastation of the First and Second World Wars in the middle of the twentieth century, Europe began to slowly integrate with the founding of the "European Community", which became a political union covering much of the European continent.
Marxist and neo-Marxist international relations theories are paradigms which reject the realist/liberal view of state conflict or cooperation, instead focusing on the economic and material aspects. It purports to reveal how the economy trumps other concerns, which allows for the elevation of class as the focus of the study.
In international relations theory, the concept of anarchy is the idea that the world lacks any supreme authority or sovereignty. In an anarchic state, there is no hierarchically superior, coercive power that can resolve disputes, enforce law, or order the system of international politics. In international relations, anarchy is widely accepted as the starting point for international relations theory.
Ultra-imperialism is a potential, comparatively peaceful phase of capitalism, meaning after or beyond imperialism. It was described mainly by Karl Kautsky. Post-imperialism is sometimes used as a synonym of ultra-imperialism, although it can have distinct meanings.
Complex interdependence in international relations and international political economy is a concept put forth by Robert Keohane and Joseph Nye in the 1970s to describe the emerging nature of the global political economy. The concept entails that relations between states are becoming increasingly deep and complex. These increasingly complex webs of economic interdependence undermine state power and elevate the influence of transnational non-state actors. These complex relationships can be explored through both the liberal and realism lenses and can later explain the debate of power from complex interdependence.
Before the perestroika Soviet era reforms of Gorbachev that promoted Eurocommunism, the majority of its history it went the formal ideology of the Communist Party of the Soviet Union (CPSU) was Marxism–Leninism, a form of socialism consisting of a centralised command economy with a vanguardist one-party state that aimed to realize the dictatorship of the proletariat. The Soviet Union's ideological commitment to achieving communism included the national communist development of socialism in one country and peaceful coexistence with capitalist countries while engaging in anti-imperialism to defend the international proletariat, combat the predominant prevailing global system of capitalism and promote the goals of Russian Communism. The state ideology of the Soviet Union—and thus Marxism–Leninism—derived and developed from the theories, policies and political praxis of Marx, Engels, Lenin and Stalin.
Super-imperialism is a Marxist term with two possible meanings. It refers either to the hegemony of an imperialist great power over its weaker rivals which then are called sub-imperialisms, or to a comprehensive supra-structure above a set of theoretically equal-righted imperialist states. The latter meaning is the older one and had become rare by the middle of the 20th century.
Liberalism is a school of thought within international relations theory which revolves around three interrelated principles:
Anti-imperialism in political science and international relations is opposition to imperialism or neocolonialism. Anti-imperialist sentiment typically manifests as a political principle in independence struggles against intervention or influence from a global superpower, as well as in opposition to colonial rule. Anti-imperialism can also arise from a specific economic theory, such as in the Leninist interpretation of imperialism, which is derived from Lenin's 1917 work Imperialism, the Highest Stage of Capitalism. People who categorize themselves as anti-imperialists often state that they are opposed to colonialism, colonial empires, hegemony, imperialism and the territorial expansion of a country beyond its established borders.
Proletarian internationalism, sometimes referred to as international socialism, is the perception of all proletarian revolutions as being part of a single global class struggle rather than separate localized events. It is based on the theory that capitalism is a world-system and therefore the working classes of all nations must act in concert if they are to replace it with communism.
Holm Arno Leonhardt is a German scientist in the fields of International Relations and economic history, especially in the realm of cartel history and theory. He was born in Manila (Philippines) the son of Brigitte and Arno Leonhardt. Arno became a German expatriate since 1930, moving up the career ladder from accountant to vice director in the branch office of an American paper machine company in Manila. Brigitte came from a liberal merchant family in Saxony (Germany) holding critical distance to the Nazi regime.
Cartel theory is usually understood as the doctrine of economic cartels. However, since the concept of 'cartel' does not have to be limited to the field of the economy, doctrines on non-economic cartels are conceivable in principle. Such exist already in the form of the state cartel theory and the cartel party theory. For the pre-modern cartels, which existed as rules for tournaments, duels and court games or in the form of inter-state fairness agreements, there was no scientific theory. Such has developed since the 1880s for the scope of the economy, driven by the need to understand and classify the mass emergence of entrepreneurial cartels. Within the economic cartel theory, one can distinguish a classical and a modern phase. The break between the two was set through the enforcement of a general cartel ban after Second World War by the US government.