Does federation unite or divide?

I am reading a lot on federation lately, for an article I would like to contribute to Brandon’s special issue of Cosmos + Taxis. I am going back to the debate about federalizing (parts of the) the democratic world which was very lively in the 1930s and 1940s. Reading the texts, for example the best-selling Union Now! (1939) by American journalist Clarence Streit, you can feel the scare for the authoritarian rulers and their nationalistic and militaristic policies. As an anti-dote, Streit proposed the federation of all the grown democracies in the world at that time, 15 in total, spread over the globe. This Union of the North Atlantic had to include a union citizenship, a union defense force, a union customs-free economy, union money and union postal and communications system After the war broke out, Streit published a new version, now calling for a union between Britain and the USA. Needless to say, none of these or other proposals went anywhere. Still some interesting perpetual questions remain.

Ludwig von Mises and Friedrich Hayek also wrote on federation during this period, as I described in Classical Liberalism and International Relations Theory (2009). I now went back to their writings, which is a treat. It is nice to have a fresh look, I also have deeper insights now (at least – I think!) than I had about 15 years ago when first encountering these ideas.

One of the divides between Mises and Hayek (which they never openly discussed, as far as I am aware) revolved around the alleged pacifying effect of federations. Mises made the point that joining a federation would lead to a larger loss of sovereignty than was normally conceived in the debate. It was not just about pooling some powers at the federal level. In an interventionist world, Mises argued, the number of policies that are dealt with from the center, or the capitol, continually rise. After all, the call for intervention will be made from all corners of the federation, all the time. This leads to a call for equal treatment, which in turn lead to a larger number of policies and regulations administered from the capitol. Consequently, the member states increasingly lose sovereignty and eventually end up as mere provinces. This would be a new cause of division, especially when the member states of the new federation used to be powerful countries on their own. Hence, a federation divides, not unites. Therefore, he proposed a much more radical solution in his plan for Eastern Europe: no federation but a strict central union (administered by foreigners, in a foreign language he even once suggested) where the members would basically have no say at all over all the important legislation normally associated with sovereignty. The laws and regulations would be limited, ensuring maximum economic and political freedom for the individual citizen.

This blog is not meant to discuss the merits of Mises’ ideas. It solely aims to point at a division between Mises and Hayek. Hayek, and most thinkers on federation with him, Streit included, had different expectations about the political effects of federation. They expected that federation would be a force of unity.  In a federation you arrange the most difficult and divisive policies at the center (for example defense, foreign policy and foreign trade), while leaving all other policies to the constituent parts. This allows room for different policies in those states, while taking away their instruments to start violent conflict. Yes, this would mean less sovereignty, but also less trouble, while the freedom within the federation still ensured as much or as little additional policies as the individual states see fit. Hayek would favor his idea the rest of his life, also proposing it for the Middle East, for example.  

Who was right? That is impossible to say, I think. There are elements of both Misesian and Hayekian arguments in the real-life experiences of federations around the globe. For some it is indeed a good way to pool the core of sovereignty, while remaining as diverse as possible. Although most them do not disintegrate with violent conflict, the increase of all kind of policies at the federal center has certainly happened. However, this is not unique to federations and most importantly, it is not a question of formal legal organization. It is a question of mentality of both politicians and populations. This is another reason to keep fighting ‘the war of ideas’, because ideas have the power to change societies.

Theories of International Relations: Realism

Someone (I don’t remember who) said that International Relations is the academic discipline of disagreement. Internationalists disagree on mostly everything, beginning by how to view their object of study. With that said, the discipline of International Relations has been historically dominated mostly by two theoretical schools, Realism and Liberalism. Some other minor schools, such as Constructivism and the English School also have significant influence. With that in mind, I believe it might be useful to post something here about the theory of International Relations.

Although the chronology is highly disputed, it can be defended that Realism is the first theory of International Relations, going back to Thucydides in Ancient Greece or to Machiavelli in late medieval/early modern Europe. In any case, Realism is arguably the most influential theory of International Relations, partially for its influence in actual statecraft (in opposition to academic thinking). Realists come in many shapes and colors, but I believe that most of them present some core characteristics:

The first thing that most (or in this case, all) Realists believe in is that the international system is anarchic. Actually, this is something that virtually any student of International Relations believes in, because… it is! When we say that the international system is anarchic, we are not saying that it is a mess or a state of permanent war. In international relations, the definition of anarchy is more simple: it means that there is no formal hierarchy of power between countries. Of course, countries have a clear hierarchy of power, with some being much more powerful than others. However, all countries are formally sovereign and independent. Countries recognize themselves as their ultimate authority. Each one of them.

A second thing that Realists believe is that countries (or in the more technical vocabulary, states) are the main actors of the international relations. Although we can speak of international corporations and international institutions, in the end, the actors that really matter are countries, especially great powers. That is so mainly because they have military capabilities. Coca-Cola may have lots of money, but not an army.

Finally, Realists believe that countries have a relationship of competition. They tend to see each other as potential enemies. Maybe not actual enemies, but certainly potential ones. Because of that, countries have to defend themselves against one another.

There are many more characteristics that we could add to this list, but I believe that these are the essential points of realist thinking in International Relations. Realists call themselves realists because they believe they see reality as it is, not in an idealized manner. I tend to agree. I believe that history proves that unfortunately, International Relations work in a realistic way. And this is something that, I believe, is key for at least many realists, and that is too often misunderstood: realists are not saying that international relations should be this way. They are saying that [sadly] they are this way. If you analyze international relations objectively, you will find out that countries (even the ones you like) and politicians (even the ones you believe are so nice) act in very selfish ways.

Realists are accused of leaving little or no room for change. But is this a fair assessment? I wish! But most other schools of International Relations fail to present plausible ways in which the international system could be improved, leading to more peace and prosperity for all.