. , Obstinate or Obsolete? The I i Fate of the Nation-State and the Case of Western Europe STANLEY HOFFMANN The ear'-y 19605 were optimistic years for students of integration. The European Economic Community was pressing integration forward at a rapid pace, and neofunctionalists seemed to have discov..ered the means by which advanced industrialized nations could dramatically reduce the possibility of war by pushing the international community beyond the sovereign state. But was this, in fact, the end of the na- tion-state? De Gaulle's precipitation of the "empty chair crisis" in 1965 indicated to many that the nation-state was alive and well. One of them was a European émigré, Stanley Hoffmann of Harvard Uni- versity. Hoffmann argued in this very long 1966 Daedalus article (which bears e/ose reading in its entirety) that the states of Europe ,- were stil/self-interested entities with e/earinterests,despite theirwil/- ingne,ss to engage in e/oser cooperation in areas of "Iow politics," such asagricultureand trade. Themembers of the EuropeanCommu- nities stubbornly hung on to the sovereignty that counts-control over foreignpolicy, national security, and the use of force ("highpol- itics")-while only r:.eluctantlybargaining away control over impor- !! .." tant aspects of their economies in exchange for e/ear material bene- I1 fits. Thus functionalism as a method of integration reaches its limits .., il veryquickly, failingto take Europe "beyond the nation-state." On the !I 1I ¡¡ l' iI "Obstinate or Obsolete?" reprinted with permission from Daedalus, Journal 1: of the American Academy of Arts and Sciences, 95(3)(1966): 862-915. ¡", Notes omitted. 157 159 158 STANLEY HOFFMANN OBSTINATE OR OBSOLETE? contrary, integration, according to Hoffmann, is "a v;ndicat;on of the détruit que ce qu'on remplace: the new "formula" will have to pro- nat;on-state as the bas;c un;t." videnot only world order, but also the kind of social organization in In h;s approach to ;nternat;onal relat;ons, Hoffmann ;sa realist. which leaders, élites, and citizens feelat home. There iscurrently no He sees the ;ntegrat;on process as a series of barga;ns between sover- agreement on what such a formula will be; as a result, nation- states-often inchoate, economically absurd, administratively ram- e;gn states pursu;ng the;r nat;onal ;nterests, a v;ew often labeled ";n- tergovernmentalism" by students of ;ntegrat;on. Intergovernmental- shackle, and impotent yet dangerous in international politics-re- ;sm, with ;ts emphas;s on the strength of the nat;on-state, prov;des a main the basic units in spite of all the remonstrations and theoretical counter to neofunctionalism with its accent on the erosion exhortations. They go on faute de mieux despite their alleged obso- of sovereignty by supranat;onal actors. Hoffmann, as one of the first lescence; indeed, not only do they profit from man's incapacity to intergovernmentalists to challenge the core assumptions of the neo- bring about a better order, but their very existence is a formidable functionalists, laid the foundation for the great theoretical debate of obstacle to their replacement. the 1990s. If there was one part of the world in which men of goodwill thought that the nation-state could besuperseded, itwas Western Eu- rope. One of France's most subtle commentators on international Thecritical issue for every student of world order isthe fate of politics has recently reminded us of E. H. Carr's bold prediction of the nation-state. In the nuclear age, the fragmentation of the world 1945: "we shall not see again a Europe of twenty, and a world of into countless units, each of which has a claim to independence, is more thañ sixty independent sovereign states." Statesmen have in- obviously dangerous for peace and illogical for welfare. The dy- vented original schemes for moving Western Europe "beyond the na- namism which animates those units, when they are not merely city- tion-state," and political scientists have studied their efforts...witha states of limited expanse or dynastic states manipulated by the care from which emotional involvement was not missing. The condi- Prince's calculations, but nation-states that pour into their foreign tions seemed ideal. On the one hand, nationalism seemed at its low- policythe collectivepride, ambitions, fears, prejudices, and imagesof estebb; on the other, an adequate formula and method for building a large masses of people, isparticularly formidable. An abstract theo- substitute had apparently been devised.Twenty years after the end of rist could argue that any system of autonomous units follows the WorldWar U-a period as long asthe whole interwar era-bbservers same basic rules, whatever the nature of those units. But in practice, have had to revise their judgments. The most optimistic put their that is, in history, their substance matters as much as their form; the hope in the chances the future may still harbor, rather than in the story of world affairs since the French Revolution is not merely one propelling power of the present; the lessoptimistic ones, like myself, more sequence in the ballet of sovereign states; it isthe story of the teysimply to understand what went wrong. fires and upheavals propagated by nationalism. A claim to sover- My own conclusion issad and simple. The nation-state is still eignty based on historical tradition and dynastic legitimacy alone has here, and the newJerusalem has been postponed because the nations never had the fervor, the self-righteous assertiveness which a similar inWestern Europe have not been able to stop time and to fragment claim based on the idea and feelingsofnationhood presents: inworld space. Political unification could have succeeded if,on the one hand, politics, the dynastic function of nationalism is the constitution of these nations had not been caught in the whirlpool of different con- nation-states by amalgamation or by splintering, and its emotional cerns, as a result both-of profoundly different internal circumstances function isthe supplying of a formidable good conscience to leaders and of outside legacies,and if,on the other hand, they had been able who see their task as the achievement of nationhood, the defense of or obliged to concentrate on "community-building" to the exclusion -'* I the nation, or the expansion of a national mission. of all problems situated either outside their area or within each one This is where the drama lies. The nation-state is at the same of them. Domestic differences and different world views obviously time a form of social organization and-in practice if not in every mean diverging foreign policies; the involvement of the policy-mak- brand of theory-a factor of international non-integration; but those ers in issues among which "community-building" is merely one.ha:s who argue in favor of a more integrated world, either under more meant adeepening, not adecrease, ofthose divergencies. The reasons centralized power or through various networks of regional or func- follow: the unification movement has been the victim, and the sur- tional agencies,tend to forget Auguste Comte's old maxim that onne vival of nation-states the outcome, of three factors, one of which 160 . STANLEYHOFFMANN OBSTINATE OR OBSOLETEl 161 characterizes every international system, and the other two only the of the regional forces isoffset by the pull of all the other forces. Or, present system. Every international system owes its inner logic and tochange the metaphor, those nations that coexist inthe sameappar- its unfolding to the diversity ofdomestic determinants, geo-historical ently separate "home" of ageographical region find themselves both situations, and outside aims among its units; any international sys- exposed to the smells and noises that come from outside through all tem based on fragmentation tends, through the dynamics of uneven- their windows and doors, and looking at the outlying houses from ness (sowellunderstood, ifapplied only to economic unevenness, by which the interference issues. Coming from diverse pasts, moved by Lenin) to reproduce diversity. However, there is no inherent reason diversetempers, livingin different parts ofthe house, inescapably yet that the model of the fragmented international system should rule differently subjected and attracted to the outside world, those cohab- out byitselftwo developments inwhich the critics ofthe nation-state itants react unevenly to their exposure and calculate conflictingly have put their bets or their hopes. Why must it be a diversity of na- how they could either reduce the disturbance or affect in turn all tions? Could it not be a diversity of regions, of "federating" blocs, those who live elsewhere. The adjustment of their own relations superseding the nation-state just as the dynastic state had replaced within the house becomes subordinated to their divergences about the feudal puzzle? Or else, why does the very logic of conflagrations the outside world; the "regional subsystem" becomes a stake in the fed byhostility not lead to the kind of catastrophic unification of ex- rivalry of itsmembers about the systemas awhole. hausted yet interdependent nations, sketched out byKant? Letus re- However, the coziness of the common home could still prevail member that the unity movement inEurope was precisely an attempt if the inhabitants were forced to come to terms, either by one of at creating aregional entity, and that its origins and its springs resem- them, or bythe fear ofa threatening neighbor. This ispreciselywhere bled, on the reduced scale of a half-continent, the process dreamed the second unique feature of the present situation intervenes. What ,~,. up byKant in hisIdea of UniversalHistory. tends to perpetuate the nation-states decisively in a system..w. hose The answers are not entirely provided by the two factors that universality seemsto sharpen rather than shrink their diversity isthe come to mind immediately. One isthe legitimacy of national self-de- new set of conditions that govern and restrict the rule of force: .-¡ termination, the only principie which transcends allblocs and ideolo- Damodes' sword has become a boomerang, the ideological legiti- gies,sinceallpay lipserviceto it,and provides the foundation for the macy of the nation-state isprotected bythe relative and forced tame- only "universal actor" of the international system: the United Na- nessofthe world jungle. Force in the nuclear ageisstillthe -midwife tions. The other is the newness of many of the states, which have of societies" insofar as revolutionary war either breeds new nations ! wrested their independence by a nationalist upsurge and are there- orshapes regimesinexisting nations; but the useof forcealong tradi- fore unlikely to throw or give away what they have obtained only tionallines, for conquest and expansion-the very usethat made the too recently. However, the legitimacy of the nation-state does not by "permeable" feudal units not only obsolete but collapse and replaced 1I itselfguarantee the nation-state's survival inthe international state of them with modem states often built on "blood and iron"-has be- I ,11 nature, and the appeal of nationalism as an emancipating passion come too dangerous. The legitimacy of the feudal unit could be un- I doesnot assure that the nation-state must everywhere remain the ba- dermined in two ways: brutally, by the rule of force-the big fish 1, , sicform ofsocial organization, in aworld inwhich many nations are swallowing small fish by national might; subtly or legitimately, so to old and settled and the shortcomings of the nation-state are obvious. speak, through self-undermining-the logic of dynastic weddings or ! The real answers are provided by two unique features of the present acquisitions that con~olidated larger units. A system based on na- ,.1 international system. One, it isthe first truly global international sys- tional self-determination rules out the latter; a system in which na- , I tem: the regional subsystems have only a reduced autonomy; the "re- tions, once established, find force a much blunted weapon rules out : lationships ofmajor tension" blanket the whole planet; the domestic the former. Thus agglomeration byconquest or out of afear of con- "111 polities are dominated not so much by the region's problems as by quest failsto take place. The new conditions ofviolence tend evento ,1 I purely local and purely global ones, which conspire to divert the re- pay to national borders the tribute of vice to virtue: violence which gion's members from the internal affairs of their area, and indeed dons the doak ofrevolution rather than ofinterstate wars, or persists would make an isolated treatment of those affairs impossible. As a in the form of such wars only when they accompany revolutions or result, each nation, new or old, finds itself placed in an orbit of its conflicts in divided countries, perversely respects borders by infiltrat- own, from which it isquite difficult to move away: for the attraction ing under them rather than bycrossing them overtly.Thus all that is I ¡Ir - 162 STANlEY HOFFMANN OBSTlNATE OR OBSOlETEl 163 left for unification iswhat one might call "national self-abdication" tried in apparently ideal conditions tells us a great deal about con- or self-abnegation, the eventual willingness of nations to try some- temporary world politics, and about the functional approach to uni- thing else;but preciselyglobal involvement hinders rather than helps, fication. For itshows that the movement can failnot onlywhen there and the atrophy of war removes the most pressing incentive. What a isa surge of nationalism in one important part but also when there nation-state cannot provide alone-in economics, or defense-it can are differences in assessments of the national interest that rule out stillprovide through means far lessdrastic than hara-kiri. agreement on the shape and on the world role of the new, suprana- These rwo features give its solidity to the principIe of national tional whole. self-determination, aswe1las its resilienceto the U.N. They also give its present, and quite unique, shape to the "relationship ofmajor ten- sion": the conflict between East and West. This conflict is both Sinceit isthe process of European integration that isits (WesternEu- ;',. r: muted and universal-and both aspects contribute to the survival of rope's] most original feature, we must examine it also.Wehave been "" the nation-state. As the superpowers find that what makes their witnessing a kind of race, berween the logic of integration set up by "., power overwhelming also makes it lessusable, or rather usable only Monnet and analyzed by Haas, and the logic of diversity, analyzed to deter one another and to deny each other gains, the lesser states above. According to the former,the double pressure of necessity (the discover under the umbrella of the nuclear stalemate that they are interdependence ofthe social fabric,which willobligestatesmen to in- not condemned to death, and that indeed their nuisance power isim- tegrate even sectorsorigina1lyleh uncoordinated) and ofmen (theac- pressive-especially when the kind of violence that prevails in pres- tion ofthe supranational agents) willgradually restrict the freedom of ent circumstances favors the porcupine over the eIephant. The super- movement of the national governments byturning the national situa- powers experience in their own camps the backlash of a rebe1lion tions into one oftotal enmeshing. Insuchamilieu,nationalism willbe , against domination that enjoys broad impunity, and cannot easily a fotileexercise in anachronism, and the national consciousness itself '": coax or coerce third parties into agglomeration under their tutelage. will, so to speak, be impregnated byan awareness ofthe higher inter- Yetthey retain the means to prevent other powers from agglomerat- est in union. The logic of diversity, bycontrast, sets limits to the de- ing away from their cIutches. Thus, as the superpowers compete, greeto which the "spill-over process" can limit the freedom of action with filed nails, a1lover the globe, the nation-state becomes the uni- of the governments; it restricts the domain inwhich thelogic of func- versal point of salience, to use the new language of strategy-the tional integration operates to the area ofwelfare;indeed, to the extent lowest common denominator in the competition. that discrepancies over the other areas begin to prevail over the labo- Other international systems were merely conservative of diver- rious harmonization in welfare, even issues belonging to the latter sity; the present system isprofoundly conservative of the diversity of sphere may becomeinfected bythe disharmony which reigns inthose nation-states, despite a1lits revolutionary features. The dream of other areas. The logic of integration is that of a blender which Rousseau, concerned both about the prevalence of the general will- crunches the most diverse products, overcomes their different tastes that is, the nation-state-and about peace, was the creation of com- and perfumes, and replaces them with one, presumably delicious .'~ munities insulated from one another. In history, where "the essence juice. One lets each item be ground because one expects a finer syn- and drama of nationalism isnot to bealone in the world," the cIash thesis: that is,ambiguity helps rather than hinders because each "in- of non-insulated states has tended to breed both nation-states and gredient" can hope that its taste will prevail at the end. The logic of wars. Today, Rousseau's ideals come cIoserto reality:but inthe most diversityisthe opposite: it suggeststhat, inareas ofkeyimportance to un-Rousseauean way: the nation-states prevail in peace, they remain the national interest, nations prefer the certainty, or the self-contr01led unsuperseded because a fragile peace keeps the Kantian doctor away, uncertainty, of national self-reliance, to the uncontrolled uncertainty they are unreplaced because their very involvement in the world, of the untested blender; ambiguity carries one only a part of the way. their veryinability to insulate themselves from one another, preserves The logicof integration assumes that it ispossible to fool each one of their separateness. The "new Europe" dreamed by the Europeans the associates some of the time because his over-all gain will still ex- could not beestablished byforce. Leh to the wills and calculations of ceedhisoccasionallosses, evenifhiscalculations tucn out wrong here ), its members, the new formula has not je1ledbecause they could not or there. The logicof diversity impliesthat, on avital issue,lossesare agree on its role in the world. The failure (so far) of an experiment not compensated by gains on other (and especially not on other less 164 STANLEYHOFFMANN OBSTlNATE OR OBSOLETE? 165 vital) issues: nobody wants to be fooled. The logic of integration eignty,already devalued byevents,could bechewed upleafbyleaflike deemsthe uncertainties ofthe supranational function process creative; an artichoke. It assumed, second, that the dilemma of governments thelogicofdiversityseesthemasdestructivepastacertainthreshold; havingto choose between pursuing an integration that tiestheir hands Russian roulette is fine only as long as the gun isfilled with blanks. andstopping amovement that benefitstheir people could beexploited Ambiguity lures and lullsthe national consciousness into integration in favor of integration by men representing the common good, en- as longasthe benefitsare high, the costs low,the expectations consid- dowed with the advantages ofsuperior expertise, initiating proposals, I erable. Ambiguity may arouse and stiffennational consciousness into propped against a set of deadlines, and using for their cause the tech- ; nationalism if the benefits are slow,the losseshigh, the hopes dashed nique of package deals. Finally, it was assumed that this approach or deferred. Functional integration's gamble could be won only if the would both take into account the interests of the greater powers and method had sufficientpotency to promise apermanent excessofgains prevent the crushing of the smaller ones. The troubles with this gam- over losses,and ofhopes over frustrations. Theoretically, this may be blehave beennumerous. One, evenan artichoke hasaheart, which re- true of economic integration. It isnot true of political integration (in mainsintact after the leaveshave beeneaten. It isofcourse true that a the senseof "high politics"). successful economic and social integration would considerably limit The success of the approach symbolized by Jean Monnet de- the freedom governments would still enjoy in theory for their diplo- pended, and depends still, on his winning a triple gamble: on goals, macyand strategy;but whyshould one assumethat theywould not be on methods, on results. Asfor goals, it isa gamble on the possibility aware ofit?Asthe artichoke's heart getsmore and more denuded, the ofsubstitutingmotionasanendinitself,foragreementonends.Itis governments' vigilance gets more and more alerted. To be sure, the . a fact that the transnational integrationist élites did not agree on secondassumption impliesthat the logicof the movement would pre- whether the object of the community-building enterprise ought to be vent them from doing anything about it: they would be powerless to the construction of a new super-state-that is, a federal potential na- savethe heart. But, two, this would be true only ifgovernments never tion, a laU.S.A., more able because of its size and resources to play put what theyconsider essential interests of the nation above the par- the traditional game of power than the dwarfed nations of Western ticular interests of certain categories of national, if superior expertise Europe-or whether the object was to demonstrate that power poli- were always either the Commission's monopoly or the solution of the tics could be overcome through cooperation and compromise, to issueat hand, ifpackage deals were effectivein everyargument, and, build the first example of a radically new kind of unit, to achieve a aboveall, ifthe governments' representatives were always determined change inthe nature and not merelyinthe scaleof the game. Monnet to behave as a "community organ" rather than as the agents of states himself has been ambiguous on this score; Hallstein has been leaning that are not willingto accept a community under any conditions. Fi- in the first direction, many of Monnet's public relations men in the nally,functional integration mayindeed givelasting satisfaction to the second. Nor did the integrationists agree on whether the main goal smallerpowers, preciselybecauseit isfor them that the ratio of "wel- was the creation of a regional "security-community," that is, the farepolitics" to high politics ishighest, and that the chance ofgaining pacification of a former hotbed of wars, or whether the main goal benefits through intergovernmental methods that reflect rather than was the creation of an entity whose position and might could deci- correct thepower differential between the bigand the smallispoorest; sivelyaffect the course of the cold war in particular, of international but this isalso why the method isnot likelya lalongue to satisfy the relations in general. Now, it isperfectly possible for a movement to biggerpowers as much: facing them, the supranational civilservants, feed on its harboring continental nationalists as well <fsanti-power foralltheir skilland legal powers, are a bit likeJonases trying to turn idealists, inward-Iooking politicians and outward-Iooking politi- whalesinto jellyfish.Ofcourse, the idea-ultimately-is to movefrom ., cians-but only as long as there isno need to make a choice. Deci- an essentially administrative procedure in which supranational civil sions on tariffs did not require such choices. Decisions on agriculture servants enter adialoguewith national ministers, to attuly federalone already raise basicproblems óforientation. Decisions on foreign pol- in which a federal cabinet is responsible to a federal parliament; but icy and membership and defense cannot be reached unless the goals what isthus presented as linear progress may turn out to be a vicious are clarified. One cannot be allthings to allpeople all ofthe time. circle,sincethe ministers hold the keyto the transformation, and may As for methods, there was a gamble on the irresistible rise of refuseit unless.thegoals are defined and the results already achieved supranational functionalism. It assumed, first, that national sover- are satisfactory. ~ .. " 166 STANlEY HOFFMANN OBSTINATE OR OBSOlETE? 167 There was a gamble about results as well.The experience of in- functional process was used inorder to "make Europe"; onceEurope tegration would entail net benefits for all, and bring about clear began being made, the process collided with the question: "making progress toward community formation. Such progress could be mea- Europe, what for?" The process is like a grinding machine that can sured bythe following yardsticks: inthe realm of interstate relations, work only if someone keeps giving it something to grind. When the an increasing transfer ofpower to the new cornmon agencies, and the users start quarreling and stop providing, the machine stops. For a prevalence of solutions "upgrading the common interest" over other while, the machine worked because the governments poured into it a kinds of compromises; in the realm of transnational society, an in- common determination to integrate their economies in order to max- creasing flow of communications; in the area of national conscious- imizewealth; but with their wealth increasing, the question of what ness-which is important both for interstate relations, because (as to do with it was going to arise: a technique capable of supplying seen above) it may set limits to the statesmen's discretion, and for means does not ipso (acto provide the ends, and it is about those transnational society, because it affects the scope and meaning of ends that quarrels have broken out. They might have been avoided if communication flows-progress would be measured by increasing the situation had been more compelling-if the Six had been so compatibility óf views about external issues.The results achieved so cooped up that each one's horizon would have been nothing other far are mixed: negative on the last count (seebelow), limited on the than his fivepartners. But this has never been their outlook, nor isit second, and marked on the first byfeatures that the enthusiasts ofin- any more their necessity.Each one iswilling to live with the others, tegration did not expect. On the one hand, there has been some but not on terms too different from his own; and the Sixare not in strengthening of authority of the Commission, and in various ateas the position of the three miserable prisoners of No Exit. Transform- there has been some "upgrading ofcommon interests." On the other ing a dependent "subsystem" proved to be one thing; defining its re- hand, the Commission's unfortunate attempt to consolidate those lations to allother subsystems and to the international sysq:mingen- ¡.,,.. gains at de Gaulle's expense, in the spring of 1965, has brought eral has turned out to be quite another-indeed, so formidable a " " about a startling setback for the whole enterprise; moreover, in their matter as to keep the transformation of the subsystem in abeyance .~..~ negotiations, the members have conspicuously failed to find a com- until those relations can bedefined. mon interest in some vital areas (energy,England's entry), and some- The model of functional integration, asubstitute for the kind of ...~ ! times succeedin reaching apparently "integrating" decisions only af- instant federation which governments had not been pre}>aredto ac- ~1 ter the most ungainly, traditional kinds of bargaining, in such cept, shows its origins in important respects. One, it isessentially an uncommunity-like methods as threats, ultimatums and retaliatory administrative model, which relies on bureaucratic expertise for the moves, were used. In other words, either the ideal was not reached, promotion of a policy defined by the policy authorities, and for the ~"f!I or itwas reached inaway that was both the opposite of the ideal and definition ofapolicythat political decision-makers are technically in- ~1 11".- ultimately its destroyer. Ifwe look at the institutions of the Common capable of shaping-something like French planning under the Market asan incipient political systemin Europe, we find that its au- Fourth Republic. The hope was that in the interstices of political thority remains limited, its structure weak, its popular baserestricted bickering the administrators could build up aconsensus; but the mis- " and distant. take was to believethat aformula that works wellwithin certain lim- its isapanacea-and that evenwithin the limits of "welfare politics" administrative skil!can always overcome the disastrous effects ofpo- J ! There are two important generallessons one can d}aw from a study litical paralysis or mismanagement (cf. the impact of inflation, or , of the process ofintegration. The first concerns the limits ofthe func- balance of payment troubles, on planning). Two, the model assumes tional method: its very (if relative) success in the relatively painless that the basic political decisions, to be prepared and pursued by the area in which it works relatively welllifts the participants to the level civil servants but formally made by the governments, would be of issues to which it does not apply well anymore-like swimmers reached through the process of short-term bargaining, bypoliticians whose skillsat moving quickly away from the shore suddenly brings whose mode of operation isempirical muddling through, of the kind them to the point where the waters are stormiest and deepest, at a that puts immediate advantages above long-term pursuits: this model time when fatigue is setting in, and none of the questions about the corresponds well to the nature of parliamentary politics with aweak ultimate goal, direction, and length of swim has been answered. The Executive, for example, the politics of the Fourth Republic, but the 111 168 STANLEY HOFFMANN OBSTINATE OR OBSOLETEl 169 mistake was to believe that all political regimes would conform to nation-state both as the main focus of expectations, and asthe initia- this rather sorry image, and also to ignore the disastrous results tor, pace-setter, supervisor, and often destroyer of the larger entity: which the original example produced whenever conflicts over values for inthe international arena the state isstill the highest possessor of and fundamental choices made mere empirical groping useless or power, and while not every state is a political community there isas worse than useless(d. decolonization). yet no political community more inclusivethan the state. To be sure, The second lesson iseven more discouraging for the advocates the military function ofthe nation-state isincrisis;but, insofar asthe of functionalism. To revert to the analogy of the grinder, what has whole world is "permeable" to nuclear weapons, any new type of happened isthat the machine, piqued bythe slowing down of supply, unit would facethe same horror, and, insofar asthe prospect of such suddenly suggested to its users that in the future the supplying of horror makes war more subdued and conquest lesslikely,the decline grinding material betaken out oftheir hands and leftto the machine. of the state's capacity to defend its citizens isneither total nor suffi- The institutional machinery tends to become an actor with astake in cient to forcethe nation-state itself into decline. The resistance ofthe its own survival and expansion. But here we deal not with one but nation-state is proven not only by the frustrations of functionalism with six political systems, and the reason for the ineffectiveness of but also by both the promise and the failure of Federalism. On the the Council of Ministers of the Six may be the excessive toughness, one hand, Federalism offers a way of going "beyond the nation- not the weakness, of the national political systems involved. In other state," but it consists in building a new and larger nation-state. The words, by trying to be a force, the bureaucracy here, inevitably, scale isnew,not the story,the gaugenot the game. Indeed, the Feder- makes itself evenmore of a stake that the nations try to control or at alist model applies to the "making of Europe" the Rousseauistic least to affect. A new complication isthus added to all the substan- scheme for the creation of a nation: it aims at establishing a unit tive issuesthat divide the participants. marked by central power and based on the general will .pfa Euro- pean people. The Federalists are right in insisting that Western Eu- rope's best chance of being an effective entity would be not to go What are the prospects inWestern Europe? What generalizations can "beyond the nation-state," but to become a larger nation-state in the one draw from the whole experience? process of formation and in the business of world politics: that is,to become a sovereign political community in the formal st:nseat least. The successof Federalism would be a tribute to the durability of the It has become possible for scholars to argue both that integration is nation-state; its failure so far is due to the irrelevance of the model. proceeding and that the nation-state ismore than everthe basic unit, Not only isthere no general will of a European people because there without contradicting each other, for recent definitions of integration is as of now no European people, but the institutions that could "beyond the nation-state" point not toward the emergence of a new gradually (and theoretically) shape the separate nations into one peo- kind of political community, but merely toward "an obscur(ing of] pie are not the most likelyto do so.For the domestic problems ofEu- the boundaries between the system of international organizations rope are matters for technical decisions bycivilservants and minsters and the environment provided bymember states." There are two im- rather than for general wills and assemblies (a general will to pros- portant implications. perity isnot very operational). The external problems of Europe are The first one is, not so paradoxically, a vindication of the na- matters for executjves and diplomats. Asfor the common organs set tion-state as the basic unit. So far, anything that is "beyond" is up bythe national governments, when they try to act as a European "less": that is,there are cooperative arrangements with a varying de- executive and parliament, they are both condemned to operate inthe gree of autonomy, power, and legitimacy, but there has been no fog maintained around them by the governments and slapped down transfer of allegiance toward their institutions, and their authority re- if they try to dispelthe fogand reach the people themselves. In other mains limited, conditional, dependent, and reversible. There ismore words, Europe cannot bewhat some nations have been:a people that than a kernel of truth in the Federalist critique of functional integra- creates its state; nor can it be what some of the oldest states are and tion: functionalism tends to become, at best,likea spiral that coilsad many of the new ones aspire to be: a people created by the state. It infinitum. Sofar,the "transferring (of]exclusive expectations of ben- has to wait until the separate states decidethat their peoples are close efits from the nation-state to some larger entity" leaves the enough to justify a European state whose task will be the welding of 171 170 STANLEYHOFFMANN OBSTINATE OR OBSOLETE? the many into one;and we have just examined why such a joint deci- aremany ways ofgoing "beyond the nation-state," and some modify sion has been missing.The very obstacles which make the Federalist the substance without altering the form or creating new forms. To be model irrelevant to nations too diverse and divided also make all sure,as long asthe old form isthere, as longasthe nation-state isthe forms of union short of Federalism precarious. Functionalism istoo supreme authority, there isa danger for peace and for welfare; Gul- unstable for the task of complete political unification. It may inte- liverstied byLilliputians rather than crushed byTitans can wake up grate economies, but either the nations willthen proceed to a fullpo- and break their ties. But Gullivers tied are not the same as Gullivers liti<;almerger {whicheconomic integration does not guarantee}-in untied. Wresders who slug it out with fists and knives, prisoners in a that casethe federal model will bevindicated at the end, the new unit chain gang, are all men; yet their freedom of action isnot the same. will be a state forging its own people byconsent and through the ab- An examination of the international implications of "nation-state- dication of the previous separate states, but the conditions for suc- hood" today and yesterday is at least as important as the ritual at- cess described above will have to be met-or elsethe national situa- tack on the nation-state. tions will remain too divergent, and functionalism will be merely a way of tying together the preexisting nations in areas deemed of common interest. Between the cooperation of existing nations and the breaking in ofa new one there isno stable middle ground. Afed- eration that succeeds becomes a nation; one that fails leads to seces- sion; half-way attempts like supranational functionalism must either snowball or roll back. ... But the nation-state, preserved as the basic unit, survives trans- formed. Among the men who see in "national sovereignty" the Nemesis of mankind, those who put their hopes in the development of regional superstates are illogical, those who put their hopes in the establishment ofaworld state are utopian, those who put their hopes in the growth offunctional political communities more inclusivethan the nation-state are too optimistic. What has to be understood and studied now-far more than has been done, and certainly far more than this essay was able to do-is, rather than the creation of rival communities, the transformation of "national sovereignty": it has not been superseded, but to a large extent it has been emptied of its former sting; there is no supershrew, and yet the shrew has been somewhat tamed. The model of the nation-state derived from the in- ternationallaw and relations of the past, when there was a limited number of players on a stage that was lesscrowded and in which vi- olence was less risky, applies only fitfully to the situation of today. The basic unit, having proliferated, has also become much more het- erogeneous; the stage has shrunk, and is occupied by players whose very number forceseach one to strut, but itscombustibility neverthe- less scares them from pushing their luck too hard. The nation-state today is a new wine in old botdes, or in botdes that are sometimes only a mediocre imitation of the old; it is not the same old wine. What must beexamined isnot just the legalcapacity of the sovereign state, but the de{actocapacity at itsdisposal; granted the scope ofits authority, how much of it can be used, and with what results? There . The Theory of Economic Integration: An Introduction BELABAlASSA Federalists, functionalists, and neofunctionalists in the postwar pe- riod were /arge/y concerned with the politica/ resu/ts of integration, even ifsome ofthem (i.e., most federalistsand functionalists)paid lit- t/e attention to the politica/ dimension of the integration process. They were, afteral/,chief/y interested inthepeacefu/ reso/ution of in- ternationa/ conflict. Postwar economists were a/so interesred in the integration process in Europebut fordifferent reasons. They were en- gaged in describing the process of economic integration and its im- pact on we/fare. As war among West European nations became un- thinkab/e in the years immediate/y fol/owing World War 1/, the economic gains of integration became the chief motive for continu- ing the process. Thus, the work of the economists took on added im- portance. Be/a Ba/assa(1928-1991), a professor of politica/ economy at TheJohns Hopkins University, was one of the most productive stu- dents of economic integration. Drawing on the work ofJacob Viner and others, Ba/assamade a major contribution to our understanding of the effects of integration on tradeand other economic activities in the 19605 and 19705. In this introductory chapter to his important work,TheTheoryof EconomicIntegration (1961),Ba/assa defines ," economic integratian, identifies itsstages, discusses politica/ and ide- %gica/ aspects of the integration process, and specifies what he ., means by "ecofJOmicwe/fare." Final/y,Ba/assaargues that functiona/ Reprinted with permission fram The Theory of Econom;c Integrat;on (GreenwoodPress,1961).Copyright1961byGreenwoodPublishingGroup. Notesomitted. 173 174 BELABALASSA THETHEORYOFECONOMICINTEGRATlON 175 integration, while, perhaps, politically expedient, is not as economi- movements are abolished. An economic union, as distinct from a cally defensible as "the simultaneous integration of all sectors." common market, combines the suppression of restrictions on com- modity and factor policies, in order to remove discrimination that . was due to disparities in these policies. Finally, total economic inte- THECONCEPTANOFORMSOFINTEGRATION gration presupposes the unification of monetary, fiscal, social, and countercyclical policies and requires the setting-up of a supra-na- In everyday usage the word "integration" denotes the bringing to- tional authority whose decisions are binding for the member states. gether of parts into a whole. In the economic literature the term Adopting the definition givenabove, the theory ofeconomic in- "economic integration" does not have such a clear-cut meaning. tegration will be concerned with the economic effects of integration Some authors include social integration in the concept, others sub- inits various forms and with problems that arise from divergences in sume different forms of international cooperation under this head- national monetary, fiscal, and other policies. The theory of economic ing,and ~heargument has also been advanced that the mere existence integration can be regarded as a part of international economics, but of trade relations between independent national economies is a sign it also enlarges the field of international trade theory by exploring of integration. We propose to define economic integration as a the impact of a fusion of national markets on growth and examining process and as a state of affairs. Regarded as a process, it encom- the need for the coordination of economic policies in a union. Fi- passes measures designed to abolish discrimination between eco- nally, the theory of economic integration should incorporate ele- nomic units belonging to different national states; viewed as a state ments af location theory, too. The integration of adjacent countries of affairs, it can be represented by the absence of various forms of amounts to the removal ofartificial barriers that obstruct continuous discrimination between national economies. economic activity through national frontiers, and the ensuing reloca- In interpreting our definition, distinction should be made be- tion of production and regional agglomerative and deglomerative tween integration and cooperation. The difference is qualitative as tendencies cannot be adequately discussed without making useofthe well as quantitative. Whereas cooperation includes actions aimed at tools of locational analysis. lessening discrimination, the process of economic integration com- prises measures that entail the suppression of some forms of discrim- . .. ination. For example international agreements on trade policies be- THERECENTINTERESTINECONOMICINTEGRATlON long to the area of international cooperation, while the removal of trade barriers is an act of economic integration. Distinguishing be- In the twentieth century no significant customs unions were formed tween cooperation and integration, we put the main characteristics until the end ofthe SecondWorld War,although several attempts had of the latter-the abolition of discrimination within an area-into beenmade to integratethe economies of various European countries. clearer focus and givethe concept definite meaning without unneces- Without going into a detailed analysis, political obstacles can be sin- sarily diluting it bythe inclusion of diverse actions in the field of in- gledout asthe main causes for the failure of theseprojects to materi- ternational cooperation. alize.Acertain degree ofintegration was achieved during the Second Economic integration, as defined here, can take several forms World War via a different route, when-as part of the German that represent varying degrees of integration. These are a free-trade Grossraum policy-the Hitlerites endeavored to integrate economi- area, a customs union, a common market, an economic union, and cally the satellite countries and the occupied territories with Ger- complete economic integration. In a free-trade area, tariffs (and many. In the latter case, economic integration appeared as a form of quantitative restrictions) between the participating countries are imperialist expansion. abolished, but each country retains its own tariffs against nonmem- The post-Second World War period has seen an enormous in- bers. Establishing a customs union involves, besides the suppression crease in the interest in problems of economic integration. In Europe of discrimination in the field of commodity movements within the the customs union and later the economic union ofthe Benelux coun- union, the equalization of tariffs in trade with nonmember countries. tries, the European Coal and Steel Community, the European Eco- Ahigher form of economic integration isattained ina common mar- nomic Community (Common Market), and the European FreeTrade ket, where not only trade restrictions but also restrictions on factor Association (the "Outer Seven") are manifestations of this move-