A short note on the Holy Roman Empire, “democracy,” and institutions

At the heart of Europe […] lay a hugely complex and fragmented political entity which resisted the ‘modernizing’ trend of national state formation, and preserved medieval arrangements conceived as rooted in antiquity: the Holy Roman Empire. After three decades of bloodshed retrospectively known as the Thirty Year War (1618-1648), the Empire had achieved a somewhat precarious equilibrium in which hundreds of semi-autonomous imperial estates co-existed under the loose authority of an emperor and a college of princes. Disparaged as a multi-headed monster by many […,] for Leibniz the Holy Roman Empire remained a preferable alternative to national and absolutist states. In his mind, the Empire offered an ideal of shared sovereignty in which limited territorial autonomy could be combined with a central imperial authority, and the main Christian confessions could cohabit peacefully in a balanced, representative Reichstag. Alongside his more famous works on logic, metaphysics, and mathematics, Leibniz wrote innumerable memos and proposals advising rulers on how to strengthen and re-order the Empire into a stable, supra-national political structure which could protect and promote common interests while maintaining local self-determination in territories and imperial free cities. In short, Leibniz regarded political unity in diversity under a supra-national authority as a better path to peace, prosperity, and stability in Europe than the ascendancy of competing national states.

This is from Maria Rosa Antognazza, a philosopher at King’s College London, writing for Oxford University Press’s blog.  (h/t Barry) Check out this map of the outline of the Holy Roman Empire in 1600 AD (it is superimposed onto the outlines of today’s European states):

blog-holy-roman-empire-1600
(source)

It reminded me of this map I produced a couple of years ago showing the GDP (PPP) per capita of administrative units in Europe. What the map illustrates, generally, is a Europe where present-day Austria, western Germany, northern Italy, Switzerland, and Benelux are much wealthier than the rest of Europe (sans Scandinavia).

And here is a map, thanks to Vincent, of GDP per capita in European regions. What his map illustrates, generally, is a Europe where present-day Austria, western Germany, northern Italy, Switzerland, and Benelux are much wealthier than the rest of Europe (sans Scandinavia).

Wow, right? Eastern Germany, Poland, and Czech Republic are poor today, but the rest of what was once the Holy Roman Empire is very prosperous. So, two lines of thought here. One, socialism is really bad for people. It not only destroys economies and political and civil liberties, it also destroys institutions.

The second line of thought is to wonder aloud a bit more about institutions and their long-term viability. The first question that needs to addressed is “what are institutions?” Today, many scholars use “democracy” and “property rights” as generic answers when explaining to the general public what good institutions are, and they are not wrong, but they don’t do justice to the concept of democracy (or property rights, for that matter). I think a better term might be “representativeness,” or “constitutionalism,” or “republicanism.” Anything but “democracy.” Democracy implies rule of the people, but this doesn’t describe what has happened in the West, in regards to political equality and economic growth (both are uneven, but undeniably real).

“Democracy” sounds better than “political institutions favoring separation of powers and coalition-building in parliamentary settings, as well as the inclusion of people who don’t pull the levers of statecraft (through the voting mechanism),” but this shorthand has obvious negative unintended consequences: many a demagogue will use the term democracy to mean something quite different from what actual self-governance requires institutionally.

There is more to the Holy Roman Empire than just path dependency (albeit stretched to its limits). For instance, you’d have to explore why representative institutions in the HRE eventually failed. My quick guess would be that HRE’s neighbors (Russian Empire, French Empire, Ottoman Empire, Scandinavian kingdoms) were pretty ruthless and thus made it impossible for more formal constitutional institutions to take deep root and flourish in the heart of Europe. Instead, because of HRE’s unruly neighbors, the Empire was forever in flux between a loose alliance of petty states and a confederation.

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BC’s weekend reads

  1. […] many Chinese people believe it should be the United States, European states, or at least Arab states that resettle Middle Eastern refugees, based on the logic of ‘punishing’ those who caused the problem in the first place.
  2. ‘It was the biggest explosion I have ever experienced.’
  3. Why Saudi Arabia hates Al-Jazeera
  4. The money spent on Aboriginal language television programming could have been spent on something else, and that something else would also have created jobs. What is special about Aboriginal language television programming?
  5. Cool map, bro

From the Comments: New Republics, Westphalia, and Russian Strategy

Thomas L. Knapp (check out his two contributions to the most recent Cato Unbound symposium on voting) has a great comment about Ukraine (Russia) that deserves further scrutiny:

In order for Putin to “pull out of” Ukraine, he’d first need to be in Ukraine.

The new republics which seceded from Ukraine are not in Ukraine.

Knapp brings up an interesting point that most geopolitical outlets and experts rarely consider (the Washington Post‘s Worldviews is a notable exception, as is Ilya Somin over at Volokh Conspiracy), and because of that these outlets fail to provide any depth or light to the world around us. There are three aspects of Knapp’s excellent comment that I’d like to hone in on.

The new republics

First, what are these “new republics” Knapp mentions? If you don’t count Crimea (wiki), which Moscow formally recognized in 2014, then the new republics that declared their independence from Ukraine are Luhansk (wiki) and Donetsk (wiki). Both polities are roughly 3300 square miles in area and house roughly 1.5 million people (you can get the exact numbers from the wiki links I provided above). Here is a map:

74717073_ukraine_donetsk_luhansk_referendum_624
(source)

Alarmingly, both republics style themselves “people’s republics” and (less alarmingly) have aligned publicly with Moscow. Russia, by the way, has not recognized these “new republics,” for geopolitical reasons I hope to make clear below.

Westphalian sovereignty

Russia does not like to recognize new polities (“republics”) because of its adherence to the ideal of Westphalia, which is state sovereignty (elsewhere at NOL Barry Stocker argues that the Westphalian ideal can be better understood as an early modern cosmopolitanism rather than state sovereignty). All throughout the Cold War Russia and China were staunch supporters of the Westphalian ideal (as were states in Africa and Asia that broke away from colonial empires), and they became even more so after the collapse of socialism in 1993. State sovereignty is the idea that states (“countries”) have sole control over what goes on in their own borders, and that any interventions of any kind, by any type of organization, needs to be approved by the state. It is called “Westphalian” because of the Treaty of Westphalia that was signed by a number of major and minor European states in the 17th century. The major states were able to maintain a balance of power and the minor states were able to assert more sovereignty over their territories than ever before because they were signatories of an international treaty. (Edwin van de Haar’s article in the Independent Review [pdf] on the balance of power as the most libertarian option available is worth reading, and is made stronger, I believe, by Giovanni Arrighi’s argument [pdf] that the balance of power led directly to the “capitalist oligarchies” that eventually pushed feudalistic institutions out of Europe beginning in the late 15th century.)

Russia, China, and other autocratic regimes prefer an international system that is respectful of state sovereignty because of the fact that this idea helps their governments to administer an amount of coercion on populaces that Western states consider immoral or rights-violating.

Russian strategy

Why did Russia hint at recognizing Donetsk and Luhansk, but ultimately decide not to recognize them? Because the West has been recognizing separatist republics since the USSR fell apart, and it has done so in the traditionally Russian sphere of influence (noticeably carving up Yugoslavia at Serbia’s geographic expense). The West has not carved up post-Soviet space by simply recognizing the sovereignty of self-proclaimed republics, but also by incorporating these polities into the international system that it dominates. Russia wants to show elites (but not necessarily the public) that it is tired of policymakers ignoring Westphalian notions of sovereignty (which are enshrined in the UN charter that almost all recognized states have signed; when they sign it they get rent-seeking privileges, but that’s a story for another day…).

This is fairly straightforward logic on Moscow’s part. When the West supported Kosovo’s secession from Serbia (in defiance of Article 2(4) of the UN charter), Russia responded by supporting South Ossetia and Abkhazia breaking away from Georgia before annexing them. The interesting thing here is that Russia even mimicked Western use of force to back up its play. When the West supported Montenegro’s secession from Serbia (in defiance of Article 2(4) of the UN charter), Russia responded by supporting Donetsk, Crimea, and Luhansk breaking away from Ukraine before annexing Crimea. The interesting thing here is that Russia even mimicked Western use of force to back up its play. Both Russia and the West used minimal military resources to achieve their objectives, and both played the sovereignty card to back up their actions.

blog-map-of-caucasus
(source)

Western policymakers will never be able to bring liberty to Russia, and liberty will never be known by Russians if the rule of law is trumped by geopolitics. The West dominates the world’s international governing organizations. It has made the rules. It has drawn up the contracts. It has invited the non-West to participate. It has given concessions in order to gain the non-West’s support. So when the West breaks the rules it first outlined and drew up, the non-Western polities it convinced to join IGOs in the first place cannot be expected to take such rules seriously. The fact that Russia does play by the West’s rules, by taking seriously the claims of breakaway regions, suggests that the West has been in the wrong post-1993.

American media pundits and critical thinking

All of this leads me back to sensationalist headlines about nefarious Russian meddling in the American presidential election. Don’t believe any of that garbage. Firstly, look at how often American foreign policy pundits have been wrong. Just look! Amid the cries of Russian meddling in the Clinton-Trump contest you can surely hear the faint echoes about weapons of mass destruction in Iraq. Secondly, all good analyses of geopolitical affairs provide at least some bit of historical context to them. Does your foreign policy pundit use history as a guide? Thirdly (and lastly), when thinking about a country remember that most accounts will have a point of view that shadows the consensus found in the world’s political and financial centers, which are useful but will sacrifice important details in the name of efficiency (and efficacy).

American libertarians, of all the factions out there, realize this best. Unfortunately, until they can shake the isolationist dogma that has paralyzed the movement since the Rothbard era of the 70s and 80s, they will continue to be marginalized in contemporary discussions about foreign policy, either as token libertarians in a Republican administration or as token libertarians in the “anti-war” movement (I put “anti-war” in scare quotes because by now it should be obvious that this movement represents the Democratic Party [pdf], not an ideal; see, though, Michael Kazin’s excellent, if ultimately unconvincing, argument for a different take on the disappearance of the anti-war movement once Obama and the Democrats came to power). New republics, secessionist movements, and other endeavors of exit are often embraced by American libertarians because of their autonomist appeal, but if they don’t pay attention to how state actors view such movements, especially regional and global hegemons, they may end supporting some very nasty regimes in the name of liberty.

Regional jealousies and transboundary rivers in South Asia

In the final reckoning, Pakistan got about 80 per cent of the Indus and India 20 per cent. India has limited rights on the western rivers and cannot undertake projects on those rivers without providing all the details to Pakistan and dealing with Pakistan’s objections. Why did India put itself in that position? The answer is that if Pakistan got the near-exclusive allocation of the three western rivers, India for its part got the eastern rivers. This was important from the point of view of the Indian negotiators because the water needs of Punjab and Rajasthan weighed heavily with them in seeking an adequate allocation of Indus water for India. Yet, Punjab had a serious grievance over the signing of the IWT [Indus Waters Treaty] by the union government. Citing provisions of the IWT which caused transfer of three river waters to Pakistan, Punjab had terminated all its water-sharing agreements with its neighbouring states in 2004.

The demand of Kutch (in Indian Gujarat), which used to fall into a catchment area of River Indus, decades back, was not taken into consideration despite many petitions, arguing about their historical claim on its water, sent by the prominent Kutchi leaders, in 1950s, to India’s Ministry of Irrigation and Power. Also people from the Indian side of Kashmir always show their ire against the IWT. On 3 April 2002, the Jammu & Kashmir Legislative Assembly, cutting across party affiliations, called for a review of the treaty. The state government has been contending that in spite of untapped hydroelectric potential, the state has been suffering from acute power deficiency due to restrictions put on the use of its rivers by the Indus Treaty. They claim that their interests were not taken into consideration and their views were not taken while signing the treaty. (6-7)

This is from my latest paper, “Disputed Waters: India, Pakistan and the Transboundary Rivers,” published by Studies in Indian Politics, and which you can find here.

Here is a map of all the Indian states mentioned in the excerpt above:

blog-india

 

The legacy of autocratic rule in China

What is the long-term legacy of political persecutions? Here I want to present the main findings of my recent research with Melanie Meng Xue (UCLA Anderson). Our research is an attempt to undercover how a legacy of political persecution can shape social capital and civil society by studying imperial China. The full version of the paper is available here.

We know from other research that particular institutions, policies, and events can have a detrimental and long-lasting impact on economic and political outcomes (e.g. Nunn 2011, Voigtländer and Voth, 2012). But it is hard to find a setting where we can study the long-run impact of autocratic institutions. A key feature of autocracy is the use of persecutions to intimidate potential opponents. In our paper, Melanie and I argue that the intensification of imperial autocracy that took place in the High Qing period (1680-1794) provides an ideal setting to study the impact of such persecutions.

Qing China

The High Qing period was one of great political stability, imperial expansion, and internal peace. Economic historians like Bin Wong and Ken Pomeranz have shown that China possessed a flourishing market economy during this period; it experienced Smithian economic growth and a massive demographic expansion. Rulers such as the Kangxi (1661-1722) and Qianlong Emperors (1735-1794) are seen as among the most successful in Chinese history. Nevertheless, as ethnic Manchus, these rulers were extremely sensitive to possible opposition from the Han Chinese. And during this period Qing tightened control over the gentry and implemented a policy of the systematic persecution of dissent. (Figure 1 depicts the Manchu conquest of China.)

chinamingqing
The Qing conquest of China

The Literary Inquisitions

The focus of our paper is on the impact of persecutions conducted by Qing China against individuals suspected of expressing disloyalty. We study the impact of these state-orchestrated persecutions on the social fabric of society. This allows us to speak to the kinds of concerns that authors like Hannah Arendt and George Orwell expressed about the long-run impact of totalitarianism in the 20th century.

These persecutions are referred to by historians as ‘literary inquisitions’. Existing scholarship suggests that the resulting fear of persecution elevated the risks facing writers and scholars, and created an atmosphere of oppression and a culture of distrust which deterred intellectuals from playing an active role in society. But these claims have never been systematically investigated. Putting together several unique datasets for historical and modern China, we explore the impact of literary inquisitions on social capital in Qing China and trace its long-run impact on modern China through its effect on cultural values.

spence
Jonathan Spence provides an excellent account of one of the most famous and unusual inquisition cases in his book Treason by the Book

To conduct our analysis, we use data on 88 inquisition cases. We match the victims of each case (there are often multiple victims per case) to their home prefecture. This data is depicted in Figure 1. Since prefectures varied greatly in their economic, social, and political characteristics we conduct our analysis on a matched sample. This ensures that the prefectures “treated” by a literary inquisition are similar in terms of their observables to those we code as “untreated”. As our data is a panel, we are able to exploit variation across time as well as variation in space.

While individuals could be persecuted for a host of reasons, these were all but impossible to anticipate ex ante. Cases were referred to the emperor himself. Frederic Wakeman called this “the institutionalization of Imperial subjectivity.” The standard punishment in such cases was death by Lingchi or (slow slicing) and the enslavement of all one’s immediate relatives. In some cases, however, the guilty party would be executed by beheading. These persecutions aimed to deter opposition to Qing rule by signaling the ability of the Emperor to hunt down all potential critics or opponents of the regime.

Map.jpg

The Impact of Literary Inquisitions on Social Capital

We initially focus on the impact of persecution on the short and medium-run using our historical panel. We first examine the effects on the number of notable scholars.  In our preferred specification we find that a literary inquisition reduced the number of notable scholars in a prefecture by 33 percent relative to the sample mean.

We go on to show the effect of persecutions on collective participation among the gentry in China. Our measure of collective participation in civil society is the number of charitable organizations. Charitable organizations played an important role in premodern China providing disaster relief and local public goods such as repairing local roads. They were non-governmental organizations and played an important role alongside the government provision of disaster relief. In our preferred empirical specification, we find that a persecution number of charitable organizations by 38 percent relative to the sample mean.

These results are in keeping with the argument that literary inquisition had a major psychological impact on Chinese society. They are consistent with the rise of “inoffensive” literary subjects during the Qing period that have documented by historians. To reduce the risk of persecution, intellectuals scrupulously avoided activities that could be interpreted as constituting an undermining of Qing rule. Instead they “immersed themselves in the non-subversive “sound learning” and engaged in textual criticism, bibliography, epigraphy, and other innocuous, purely scholarly pursuits” (Wiens, 1969, 16).

The Impact of Literary Inquisitions on 20th Century Outcomes

We go on to examine how the effects of these persecutions can be traced into the 20th century. In particular, we focus on the provision of basic education at the end of Qing dynasty. In late 19th and early 20th century China, there was no centralized governmental provision of primary schools.  Basic education remained the responsibility of the local gentry who ran local schools.

Thus the provision of education at a local level was dependent on the ability of educated individuals to coordinate in the mobilization of resources; this required both cooperation and trust. We therefore hypothesize that if the persecution of intellectuals had a detrimental impact on social capital, it should also have negatively affected the provision of basic education.

We find that among individuals aged over 70 in the 1982 census – hence individuals who were born in the late Qing period – a legacy of a literary inquisition is associated with lower levels of literacy. This reflects the impact of literary inquisition on the voluntary schools provided by the gentry and is not associated with lower enrollment at middle school or high school. We show that result is robust to controlling for selective migration and for the number of death caused by the Cultural Revolution.

Finally, we show that literary inquisitions generated a cultural of political non-participation. Drawing on two datasets of political attitudes – the Chinese General Social Survey (CGSS) and the Chinese Political Compass (CPoC) – we show that individuals in areas in which individuals were targeted during literary inquisitions are both less trusting of government and less interested in political participation.

Finally, we find that individuals in prefectures with a legacy of literary inquisitions are less likely to agree that: “Western-style multi-party systems are not suitable for China” (Q 43.). This suggests that in areas affected by literary inquisitions individuals are also more skeptical of the claims of the Chinese government and more open to considering alternative political systems. Similarly, individuals in affected prefectures are more likely to disagree with the statement that: “Modern China needs to be guided by wisdom of Confucius/Confucian thinking.”

In summary, our analysis suggests that autocratic rule reduced social capital and helped to produce a culture of political quietism in pre-modern China. This has left a legacy that persisted into the 20th century. These findings have implications for China’s current political trajectory. Some scholars anticipate China undergoing a democratic transition as it’s economy develops (Acemoglu and Robinson, 2012). Others point to China as an example of “authoritarian resilience.” By showing that a long-history of autocratic rule and political persecutions can produce a culture of political apathy, our results shed light on a further and previously under-explored source of authoritarian resilience.

BC’s weekend reads

  1. Smuggling Nikita Khrushchev’s memoirs out of the USSR
  2. Are memes disrupting American politics? So asks a Leftist
  3. The 4th Amendment, policing, and pedagogy
  4. At least the end of the War on Drugs is nigh
  5. A new (old) strategy for a polycentric world (but why not federation?)
  6. A simple map of Brazil and its states

Taxes, Free-riding, and Federation

Check out Adam Smith complaining about the rent-seeking that the UK’s North American colonies were practicing back in 1776:

The expence of the ordinary peace establishment of the colonies amounted, before the commencement of the present disturbances, to the pay of twenty regiments of foot; to the expence of the artillery, stores, and extraordinary provisions with which it was necessary to supply them; and to the expence of a very considerable naval force which was constantly kept up, in order to guard, from the smuggling vessels of other nations, the immense coast of North America, and that of our West Indian islands. The whole expence of this peace establishment was a charge upon the revenue of Great Britain, and was, at the same time, the smallest part of what the dominion of the colonies has cost the mother country. If we would know the amount of the whole, we must add to the annual expence of this peace establishment the interest of the sums which, in consequence of her considering her colonies as provinces subject to her dominion, Great Britain has upon different occasions laid out upon their defence. We must add to it, in particular, the whole expence of the late war, and a great part of that of the war which preceded it. The late war was altogether a colony quarrel, and the whole expence of it, in whatever part of the world it may have been laid out, whether in Germany or the East Indies, ought justly to be stated to the account of the colonies. It amounted to more than ninety millions sterling, including not only the new debt which was contracted, but the two shillings in the pound additional land tax, and the sums which were every year borrowed from the sinking fund.

This comes from Book 4, the third (and last) part (“Part Third”) of Chapter 7 in Smith’s famous book The Wealth of Nations (TWON). (Here is a great link to the whole chapter, courtesy of the Library of Economics and Liberty. I read the Bantam Classics version for my Honors seminar on Liberty in Western Political Thought, led by Andrew Sabl, who is currently a Visiting Professor at Yale, though I don’t have it with me so I can’t cite, let alone remember, the page numbers.)

Let me throw a little bit of historical context for this excerpt at you. Smith wrote TWON before the onset of the first Anglo-American war (TWON was published in 1776, which means it did not influence the American colonists in any way, shape, or form; think about the way information spread back in those days), and the war was largely the result of a quarrel between the UK and its North American colonies over taxation. The taxation, though, was needed in order to pay for a war (the Seven Years’ War) that the colonies had initially lobbied the British government to fight for them. The British colonies in North America had much more leeway than their French, Spanish, Portuguese, and Dutch counterparts, and a number of these colonies wanted to expand westward, into the Ohio Valley, where the French state had made claims that were recognized under international treaties.

To make a long story short: Several colonial factions picked a fight with the French and their Native American allies, and this little schoolyard brawl turned into a global war (with fighting in North America, India, Africa, South America, and East Asia) that saw the United Kingdom become the world’s preeminent imperial power and France lose almost all of its North American colonial possessions.* When the war was over, the British parliament wanted to tax the colonies to pay for their fair share of the war, and the colonists said “No taxation without representation!” Smith summed up the situation as thus:

In order to put Great Britain upon a footing of equality with her own colonies […] it seems necessary, upon the scheme of taxing them by parliamentary requisition, that parliament should have some means of rendering its requisitions immediately effectual, in case the colony assemblies should attempt to evade or reject them […] The parliament of Great Britain insists upon taxing the colonies; and they refuse to be taxed by a Parliament in which they are not represented.

This is quite the conundrum, and Smith put forth a proposal that I found quite novel when I first read it as an undergraduate. But before I get to his proposal, I want to make sure that everyone understands the situation here. The UK fought an expensive war at the behest of its colonies, and the colonies, once the war was over, refused to pay for it. Sound familiar? It should. Today the United States finds itself in this situation often (just replace the word “colonies” with “allies”).

Smith proposed the following deal instead of war or civil oppression (such as economic sanctions):

If to each colony […] Great Britain should allow such a number of representatives as suited the proportion of what is contributed to the public revenue of the empire, in consequence of its being subjected to the same taxes, and in compensation admitted to the same freedom of trade with its fellow-subjects at home. [Were British America] to send fifty or sixty new representatives to parliament, […] there is not the least probability that the British constitution would be hurt by the union of Great Britain with her colonies. That constitution, on the contrary, would be completed by it, and seems to be imperfect without it. The assembly which deliberates and decides concerning the affairs of every part of the empire, in order to be properly informed, ought certainly to have representatives from every part of it. That this union, however, could be easily effectuated, or that difficulties and great difficulties might not occur in the execution, I do not pretend. I have yet heard of none, however, which appear insurmountable. The principal perhaps arise, not from the nature of things, but from the prejudices and opinions of the people both on this and on the other side of the Atlantic. […]

Why didn’t the UK just federate with its North American colonies? Smith cited British fears of an unbalanced political constitution that the North American colonies might bring to such a union, and North American fears of being completely dominated by a faraway parliament were they to join such a federation. He countered both fears well, but check out what he predicted would happen if such a federation were to actually take place:

The distance of America from the seat of government […] would not be of very long continuance. Such has hitherto been the rapid progress of that country in wealth, population, and improvement, that in the course of little more than a century, perhaps, the produce of American [taxation] might exceed that of British taxation. The seat of the empire would then naturally remove itself to that part of the empire which contributed most to the general defence and support of the whole.

Interesting, right? Smith argued that the American colonies would become so rich and so populous that the capital of his proposed British federation would “naturally” move from London to somewhere in North America.

Smith was wrong in a general way, but correct in an even more general way. Let me explain.

Smith was wrong because the United States – once separated from the United Kingdom – evolved into the wealthiest, most innovative society the world has ever known. The reason for this is the aristocratic upper house of a legislative institution (“Senate”) that the 13 states had to create in order for all of them to join a federation. If Smith had had his way, the world would have never known the American Senate, and I doubt very much that the 13 colonies would have grown to become as innovative and wealthy as they are today without this vital institution of governance.

Smith was also wrong to make his argument for such a federation to be based on tax revenue rather than principled representation (though see Warren’s infamous post arguing for just such a proposal). The tax revenue argument might be more economically efficient, but it would not give polities seeking federal bonds the guarantee of some sort of equality (two representatives in the aristocratic chamber of the legislative assembly) that they would need to join such a federation. On these two points Smith’s argument was wrong, but what did he and other republicans and federalists get right?

To answer that I think it’s best to ask another question: What would happen if the UK and the US were to federate today?

The UK would be the poorest state in the union (as measured by GDP PPP per capita), if it were admitted as one state.

The stark difference in living standards doesn’t stop there, though. Suppose the SNP finally gets its way and Scotland leaves the UK. Even if England (intl$ 32,669), Wales (intl$ 25,947), and Northern Ireland (intl$ 27,573) were admitted into the US as three separate states, they would all be at the bottom of the living standards barrel. Were Scotland to go along with the other polities in the UK and federate with the US as a separate state, she would rank second-to-last (intl$ 33,791), just in front of Mississippi but behind Idaho. The rankings would look like this:

49. Idaho

50. Scotland

51. Mississippi

52. England

53. Northern Ireland

54. Wales

Smith’s argument suddenly looks a whole lot better, right? At least if you think living standards as they are measured by economists are a good way to gauge the overall health and wealth of a given society.

A federation is basically a huge, actual free trade zone (both capital and labor can move freely) coupled with a binding military pact and some institutions that allow factions to openly argue and contest for spoils that end up in a state’s treasury, but that’s not what the US has with any of its military allies or trading partners. What I find interesting is that the objections to federation between the UK and its North American colonies that Smith listed are essentially the same ones that crop up when such a federation is proposed between the US and its various allies and partners. The difference between now and then, though, is the Senate. Sending representatives based purely on population or tax revenue would most likely contribute to an unbalanced political constitution, but having two guaranteed representatives in a political body that’s heavily aristocratic and lightly democratic would surely guarantee an equality that all sides could eventually agree upon.

There is also an interesting cultural development to think about as well. The states in Western Europe and East Asia sans China have helped to develop a political culture that is more closely aligned with the one found in the US, Canada, and Australia/New Zealand, one where citizenship trumps ethnic identity. Identity based on citizenship is not as strong as the one found in the Anglo-Saxon world, and ethnic differences do pop up from time to time (largely due to linguistic differences), but the states of Western Europe and East Asia have taken many steps in the right direction to help eradicate the parochial tribalism that has long plagued European and Asian societies and replace it with citizenship. Take a look at the political constituencies of the following three countries:

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Germany’s 2013 federal elections (source)
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South Korea’s 2016 legislative election (source)
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Italy’s 2013 legislative election (source)

They are largely based on a Left-Right divide rather than the ethnic ones we find in less economically-developed, less politically-integrated, post-colonial states. This Left-Right divide would fit in perfectly with the Madisonian constitution, as administrative units (i.e. Northern Ireland, Gangwon, Bavaria, or Trentino instead of the UK, South Korea, Germany, or Italy) could be added in a manner so as not to upset the balance between Left and Right currently found in the US. Political coalitions would wax and wane with time, of course, but if we want a world where the East Asians and Western Europeans pay their fair share, and where they are protected from Moscow and Beijing, then federation is as moderately radical as you can get.

Just ask Adam Smith.