TO

EVA RÖPKE

MY COURAGEOUS COMPANION THROUGH
TURBULENT YEARS

MADE AND PRINTED IN GREAT BRITAIN

BY

WILLIAM HODGE AND COMPANY, LIMITED

LONDON  EDINBURGH GLASGOW

The paper and binding of this book conform to the authorized economy standard

PREFACE

THE idea of the present investigation originated in a conference of economists, organized by the Rockefeller Foundation and held at Annecy in July, 1936, for the purpose of discussing the most urgent topics and the different possibilities of organized research in the field of social science.

INTRODUCTION Sometimes I fancy that there are still such crises in store, especially for the Germanic world, that even the most illustrious viri doctissimi with all their books may one day become obscure.

Jacob Burckhardt, letter to F. von Preen, 19th September, 1875.

IT is an essential part of the general attitude underlying the present investigation that it is based on the following assumptions:

PART I THE MEANING OF INTERNATIONAL ECONOMIC DISINTEGRATION

CHAPTER I HISTORICAL ORIENTATION

THAT, for whatever reasons, something very serious is happening to international economic relations, which amounts to a quantitative shrinkage and to a pathological qualitative change, is the undisputed fact which has given rise to the present investigation. To define more exactly what this “something” really is presents a major problem and one which makes us pause. The best thing is to take a long-range view and try to understand the present situation more thoroughly by incorporating it in the chain of history.

CHAPTER II THE QUANTITATIVE ASPECT OF INTERNATIONAL ECONOMIC DISINTEGRATION

TO give a fairly correct picture of the quantitative development of world economy, even of that part of it which consists in the exchange of commodities, is a task presenting a great number of difficulties which are partly due to the lack of reliable statistical data and partly to inherent methodological problems.

CHAPTER III THE QUALITATIVE ASPECT OF INTERNATIONAL ECONOMIC DISINTEGRATION (FUNCTIONAL DISTURBANCES)

(a) GENERAL APPRAISAL

THE preceding chapter attempted a quantitative measurement of the extent of international economic disintegration. The resultant picture is disquieting enough, but even this does not tell the whole story. It must be completed by an analysis of the qualitative aspect of international economic disintegration, which essentially escapes quantitative measurement.

CHAPTER IV CONCLUSIONS

IF this picture of the international economic disintegration be accepted as fairly clear and reasonably correct, it only remains to round it off and balance it with a number of general qualifications and precisions, which may meet some obvious objections.

PART II ECONOMIC AND SOCIO-POLITICAL INTEGRATION AND DISINTEGRATION

(THE EXTRA-ECONOMIC FRAMEWORK OF WORLD ECONOMY)