Table Of ContentEdited by
Thomas Hoerber · Alain Anquetil
Economic Theory
and Globalization
Economic Theory and Globalization
Thomas Hoerber · Alain Anquetil
Editors
Economic Theory
and Globalization
Editors
Thomas Hoerber Alain Anquetil
Ecole Supérieure des Sciences Commerciales Ecole Supérieure des Sciences Commerciales
d’Angers (ESSCA) d’Angers (ESSCA)
Angers, France Boulogne-Billancourt, France
ISBN 978-3-030-23823-0 ISBN 978-3-030-23824-7 (eBook)
https://doi.org/10.1007/978-3-030-23824-7
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Foreword
The financial crisis of 2008 has triggered a searching debate over the
nature of globalization—the relationship between gainers and losers,
between national sovereignty and internationalism. Branco Milanovic’s
“elephant curve” has shown that two groups in society have gained—
the emerging middle class in China and Asia (at the top of the ele-
phant’s body) and the plutocracy in the west (at the top of the uplifted
trunk), with losers in the lower middle and working class in the devel-
oped countries (at the dip of the trunk). Although the losers in the
west remain better off than their counterparts in the emerging mar-
kets, their experience of relative decline or stagnation has provoked a
populist backlash. At the same time, neoliberalism promoted finan-
cial globalization and wilfully imposed austerity alongside bailing out
the financial elite whose actions caused the crisis. It is a form of hyper-
globalization that departed from the embedded liberalism of the post-war
order. Then, Keynes and many economists who emerged from the eco-
nomic section of the League of Nations rejected both the dominance
of national policy by adherence to the gold standard that led to defla-
tion and hardship for workers, and the economic nationalism of the
v
vi Foreword
1930s that led to trade and currency wars. They wanted a form of “thin”
multilateralism embedded in international organizations that allowed a
balance between internationalism and domestic welfare by controlling
international capital flows, and subordinating finance to production.
Now, the impact of the global financial crisis and the populist turn of
the losers of hyper-globalization, are leading to renewed interest in those
earlier economists.
A number of recent books have looked back to earlier writers as a
counter to neoliberalism—whether it be the “Chicago plan” of Irving
Fisher that proposed 100% backing of bank deposits by central bank
money to remove the power of commercial bankers to create money, or
Keynes’s argument in favour of capital controls, or demands to control
rent-seeking firms and natural monopolies that so worried John Stuart
Mill. And surely Burke’s point that “society is but a contract between
the dead, the living and those yet to be born” has resonance at a time
of protests about climate change. Economists grapple with the discount
rate to be applied to our current use of the environment, and whether
future generations can be allowed to bear the costs or whether that will
lead to extinction.
The history of economic thought provides access to a wider reper-
toire of ideas that were of their time but also tools for thinking about
the present. The recent study of the Nobel Prize in economics by Avner
Offer and Gabriel Soderberg has shown how its award validated a par-
ticular approach and contributed to undermining a different, social
democratic view of the subject. By providing a wider vision of econom-
ics, this collection of essays provides students with a much-needed sense
of perspective.
Economic thinking on globalization has undergone massive changes
in the past, from the zero-sum mercantilism of the seventeenth and
eighteenth century rejected by Adam Smith to the open markets of
Richard Cobden, and back to trade warfare of economic blocs. Keynes
himself moved from one position to the other, campaigning for free
trade before the First World War but advocating insular capitalism to
protect domestic welfare in the 1930s, before returning to a balanced
form of globalization during the debates of the Second World War.
Foreword vii
These issues are once again to the fore, and an awareness of the rich
debates of the past will only help us to grapple with the present and
future. This book answers these questions in a lively and informed way.
Cambridge, UK Martin Daunton
Contents
Introduction 1
Thomas Hoerber and Alain Anquetil
The Social Liberalism of John Stuart Mill 19
Alain Anquetil
Karl Marx’s Communism and Critique of Capital 41
Paul Prew
Edmund Burke’s Liberalism 73
Thomas Hoerber
The Free Liberalism of Adam Smith 101
Alain Anquetil
Economic Cycles by Josef Schumpeter 125
Assen Slim
ix
x Contents
The Bancor and International Trade Possibilities of John
Maynard Keynes 143
David Rees
The Roots of Neoliberalism in Friedrich von Hayek 169
Thomas Hoerber
Elinor Ostrom or the Revolution of the Commons 195
Fanny Verrax
The Ecological Economy of Georgescu-Roegen 221
Gabriel Weber and Ignazio Cabras
Conclusion 239
Alain Anquetil and Thomas Hoerber
Index 259
Notes on Contributors
Prof. Alain Anquetil is Professor of Moral Philosophy and Business
Ethics at ESSCA School of Management. Since 2011, he has been writ-
ing a research blog on moral philosophy. His last related publication
was Textes Clés de l’Ethique des Affaires, Librairie Philosophique Vrin,
Paris, 2011.
Prof. Ignazio Cabras is Professor of Entrepreneurship and Regional
Economic Development at Newcastle Business School, Northumbria
University (United Kingdom). He is also a member of EU*Asia Institute
at ESSCA, School of Management, Angers. Ignazio has published exten-
sively on themes such as “Social Capital”, “Community Cohesion” and
“Third Places” in various journals including Environmental and Planning
(A and C), Regional Studies, Ecological Economics and Business History.
Prof. Thomas Hoerber is Professor for European Studies, Director of
the EU*Asia Institute and Head of the Department of International
Affairs at ESSCA School of Management. His last related publication
was Hayek Vs. Keynes—A Battle of Ideas, Reaktion Books, London,
2017.
xi
