Commercial Capitalism and City-States

12 important questions on Commercial Capitalism and City-States

3 international systems according to Viotti and Kauppi

1. World empires
2. Independent (city)state-system + balance of power
3. Hegemonic state-system

George Modelski's Cycle in World Politics

1. Global wars
2. Dominant state rises
3. Delegitimisation of world leader status
4. Deconcentration of dominance

Immanual Wallerstein The Modern World-System

■ A world system is a social system, which is characterised by the fact that life within this system is self-contained → self-reliant
■ And that the dynamics of development of such a system is by and large internal
■ 2 world-systems:
● World empire (occurred in the past → Ottoman empire, Roman empire)
● World economy (economic division of labour, economic unity, political disunity → creates highly competitive situation in an overarching structure)
○ Result: economic growth and expansion
○ Needs hegemonic power for stability
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Wallerstein's Hegemonic Cycle

● Need competitive advantage → technological superiority→ Export products more efficiently, cheaper → commercial superiority → trade surplus → financial superiority
● All these combined leads a state into the hegemonic phase
● Twin Deficit: trade and budget deficit
● In decline could lead to more protectionist inclinations

4 factors of the Dutch Golden age

1. Debt crisis and the 'objective interest' in peace
2. Political system/freedom of the cities
3. Modernisation at home
4. Expansion abroad/international trade

DR: Modernisation at home

■ Infrastructure: new harbours and canals (barge-canals, internal network) → facilitated trade with outside world
■ Urbanisation and agricultural modernisation
■ Demographic expansion
■ Cheap energy (turf/peat)

DR: Expansion abroad

■ VOC, WIC, Wisselbank (exchange), Admiralty
■ Staple market (entrepot) and European World Economy
■ Merchant capitalism: long distance trade in mass consumer goods (grains, wood, etc)
■ Foreign trade: primacy fo Baltic Sea Trade

Hugo de Groot (1583-1645)

○ Influenced by
■ Liberal commercial bourgeoisie
■ Eighty-year war (against Spain)
■ Merciless and brutal violence of Spain
○ Main arguments:
■ Human interest in social life
■ Reducing violence/limiting use of force
■ Limits to sovereignty
■ World order based on Law of Nations → public international law
■ Oceans cannot be claimed → in interest of VOC
○ Founding father of the Just War Theory

Basic contradiction between IR theories

Effective State Power (Machiavelli) --> echo of neorealism
World Order (Grotius) --> echo of neoliberalism

EU as a strong state?

○ No constitutional independence → no juridical statehood
○ Trade (certain independence)
○ Do we have efficient institutions/checks and balances? → empirical statehood
■ Whether they are supranational or intergovernmental
○ Solid economic basis
○ Lack of solidarity (social and political cohesion)
○ Stateless market, hybrid not super state

Conclusion of Taylor article

The Dutch promotion of an economic raison d’etat was a necessary component for the consolidation of a competitive interstate system, itself a necessary requirement for the expansion of the capitalist world-economy

Why a new state?

■ Four sources of social power combined in 10 years in the northern Netherlands, produced not only a new state, but a very unusual form of state
■ Ideological power provided a core solidarity in Calvinism for which military power provided a fortress, while political power provided an opportunity that was exploited through economic power

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