Academic journal article Chicago Journal of International Law

Statecraft, Trade and the Order of States

Academic journal article Chicago Journal of International Law

Statecraft, Trade and the Order of States

Article excerpt

In 1989, Francis Fukuyama announced "the end of history."1 Fukuyama was not the first to make this bold claim-Hegel had said as much about Napoleon's victory at Jena in 1806.2 But, unlike Hegel's, Fukuyama's bold claim was not a declaration of the triumph of the state-nation;3 rather, he was declaring the end of the great struggle between democracy, fascism and communism. After the defeat of the Axis Powers in World War II, and following the fall of the Iron Curtain, Fukuyama believed that democracy had triumphed and would, henceforth, be the preferred model for State4 government.5

It now appears that, like Hegel, Fukuyama was mistaken in his claim for the end of history. While it is true that democracy defeated fascism and communism in the ideological struggle for political dominance, the State as we know it continues to evolve. History has not ended. The story continues, and as has been the case before, it is the nature of the State6 that is changing.7 Identifying these changes, gauging their significance, and evaluating their relationship with respect to other features of the relations between states is central to understanding how and why the State continues to evolve.

Recent scholarship on the State has largely focused on foreign policy-in particular, the "strategic" aspects of relations between states.8 One of the more interesting claims in this regard is that the very nature of the State (what we call Statecraft) has evolved in response to developments unique to the twentieth century.9 These developments, which include the commodification of weapons of mass destruction ("WMD"), the diminished significance of sovereignty, and the globalization of health and environmental threats,10 have engendered a new approach to strategy.11 Many scholars have devoted their attention to changes in strategy and its relation to the continuing evolution of the State.12 We agree that the State is changing. We further agree that these changes require a rethinking of strategic defense in a world of asymmetric warfare and global networked terrorism.13 However, we do not intend to add to the literature on strategy. Our project draws upon this literature, but is distinctly different.

Our project examines the extent to which the global trade system14 should respond to fundamental shifts in the nature of the State and of international relations.15 Our thesis is that just as the strategic and foreign policies of states are linked to their internal constitutional order,16 the trade policy of states is another external dimension of the State also connected to the State's internal order. The experience of the twentieth century shows that states must acknowledge overarching structural changes within their domestic spheres, then identify, in a timely fashion, how these shifts affect their interaction with the rest of the international economic community. In turn, states must adjust external trade policy objectives and strategies with respect to the international community to accord with their intrinsic political and ideological goals. The failure to do so at the appropriate time will hobble the internal economic health of states and may also hamper free states in struggles against totalitarian movements.17

Our Article proceeds in three principal parts. In Part I, we explore the extent to which the State continues to evolve in the twenty-first century. We draw on the literature discussing strategy to identify the hallmarks of Statecraft among the states that dominated the trading world after World War I-in particular the modern liberal democracies of Europe, the United States, and Japan. Part II argues that, just as law and strategy evolve through an interdependent and dynamic relationship, Statecraft and the international commercial order of states engender each other's evolution through an interactive process. The domestic constitutional architecture of the State18-such as its organization around a nation and its legitimization through the promotion of that nation's welfare-has a profound influence on the ordering of the international trade system and the type of fundamental questions (such as the "linkage" of trade and social regulation) that will face each generation. …

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