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The mature limited access order at the doorstep: Imperial Germany and contemporary China in transition

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  • Erik Grimmer-Solem

Abstract

A basic premise of the limited/open access orders framework of North, Wallis, Webb and Weingast is a variant of the Hayek–Friedman hypothesis that economic and political freedom sustain each other. Keys to this framework are the specific “doorstep” conditions that enable a transition from limited to open access, which the authors draw from the historical experience of Britain, France and the United States. This essay analyzes the transition process of Imperial Germany to reveal that maintaining economic competition did not depend on democracy and that the middle classes became stakeholders in authoritarianism. It then explores the specific challenges posed by this large, mature limited access order as it was integrated into an international system sustained by a declining liberal hegemon, Great Britain. The refinements of the framework suggested by the case of Imperial Germany allow for a better understanding of some of the parallel transition processes in present-day China and its evolving relationship to both the United States and the current international order. Copyright Springer Science+Business Media New York 2015

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  • Erik Grimmer-Solem, 2015. "The mature limited access order at the doorstep: Imperial Germany and contemporary China in transition," Constitutional Political Economy, Springer, vol. 26(1), pages 103-120, March.
    • Handle: RePEc:kap:copoec:v:26:y:2015:i:1:p:103-120
    DOI: 10.1007/s10602-014-9169-8
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    References listed on IDEAS

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    1. Douglass C. North & John Joseph Wallis & Barry R. Weingast, 2006. "A Conceptual Framework for Interpreting Recorded Human History," NBER Working Papers 12795, National Bureau of Economic Research, Inc.
    2. Ronald Findlay & Kevin H. O'Rourke, 2007. "Power and Plenty: Trade, War and the World Economy in the Second Millennium (Preface)," Trinity Economics Papers tep0107, Trinity College Dublin, Department of Economics.
    3. Grimmer-Solem, Erik, 2003. "The Rise of Historical Economics and Social Reform in Germany 1864-1894," OUP Catalogue, Oxford University Press, number 9780199260416.
    4. Lawson, Robert A. & Clark, J.R., 2010. "Examining the Hayek-Friedman hypothesis on economic and political freedom," Journal of Economic Behavior & Organization, Elsevier, vol. 74(3), pages 230-239, June.
    5. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995.
    6. Huang,Yasheng, 2008. "Capitalism with Chinese Characteristics," Cambridge Books, Cambridge University Press, number 9780521898102, September.
    7. Ronald Findlay & Kevin H. O'Rourke, 2007. "Introduction to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    8. Chen, Jie, 2013. "A Middle Class Without Democracy: Economic Growth and the Prospects for Democratization in China," OUP Catalogue, Oxford University Press, number 9780199841639.
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    10. North,Douglass C. & Wallis,John Joseph & Webb,Steven B. & Weingast,Barry R. (ed.), 2013. "In the Shadow of Violence," Cambridge Books, Cambridge University Press, number 9781107684911, September.
    11. North,Douglass C. & Wallis,John Joseph & Webb,Steven B. & Weingast,Barry R. (ed.), 2013. "In the Shadow of Violence," Cambridge Books, Cambridge University Press, number 9781107014213, September.
    12. Ronald Findlay & Kevin H. O'Rourke, 2007. "Preface to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    13. Landes,David S., 2003. "The Unbound Prometheus," Cambridge Books, Cambridge University Press, number 9780521534024, September.
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    1. Alfred Reckendrees, 2015. "Weimar Germany: The first open access order that failed?," Constitutional Political Economy, Springer, vol. 26(1), pages 38-60, March.
    2. Van Bavel, Bas & Ansink, Erik & Van Besouw, Bram, 2017. "Understanding the economics of limited access orders: incentives, organizations and the chronology of developments," Journal of Institutional Economics, Cambridge University Press, vol. 13(1), pages 109-131, March.

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    More about this item

    Keywords

    Development; Transition; Limited/open access order; Hayek–Friedman hypothesis; International order; Germany; China; F02; F15; F50; F51; F63; N13; N15; P16; P26;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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