Exploring the Liberal Origin of European Integration: The Historical Politics of the European Recovery Program in Postwar Political Economy

Thursday, June 27, 2013
2.22 (Binnengasthuis)
Takeshi Ito , Senshu University
This paper aims to review the significance of the European Recovery Program (the ERP or the Marshall Plan) as an origin of European integration and European mode of economic governance. Different from conventional approaches (IR and economic history), the paper analyses historical political economy of European countries through controlled comparison of the ERP policy (the allocation of imports and credit) in Britain, France, Germany and Italy.

               The author affirms that (1) multi-sectoral nature of the ERP policy required non-partisan coordination among different actors with different economic ideas, especially led by economic experts.; (2)In order to strike a balance of competing demands for the ERP policy(reconstruction, development, security), the idea of ordoliberalism functioned as a focal point of consensus. The reason was that the idea, originally developed in prewar Germany, stresses the need for the state to ensure a balance between market liberalization, investment (civil &military) and balance of payments. (3) The penetration of ordoliberalism over Western Europe through the ERP could explain an "ideational leap" from a German to a European paradigm of integration, in that it became one of the central thought for European integration at an early stage, such as in the ECSC, competition policy and etc.

                The argument of the paper is expected to pose another possibility of European institutions, based on an idea different from market liberalism, Keynesianism, dirigisme, or socialism. In addition, it sheds a new light on unexplored linkages between domestic, European and international political economy in postwar embedded liberalism.

Paper
  • Ito_Exploring the Liberal Origins of European Integration_CES2013.pdf (335.5 kB)