The political economy of protection
Session organizer/s: Christopher Absell
From Mercantilism to Tariffs: The American Experience of Protectionism from the Colonial Era to the Early Republic, 1750-1830
Session: 1
Authors: Jeremy Land
Co-authors: John Moore
Abstract: The history of European settlement in North America is in many ways defined by protection – protection against indigenous peoples, protection against the elements, and protectionist trade policies and regulations. This essay explores the relationship between protectionist economic policies such as mercantilism in colonial North America and protectionist tariffs passed in the early years of the United States. It first looks at how the British-American colonies developed their economies in the shadow of mercantilist rules regulating how and to whom they could trade. It will show how certain policies, rather than encouraging trade with Britain, had the opposite affect of looking for trading partners outside of the British Empire. Structural and policy issues contributing to a growing rift between colonial merchants and British policy creators. Conversely, the second half of the essay explores the realities of founding a new nation attempting to find its place within the global economy. It shows that trade tariffs were an important component of developing state capacity and finding revenue in the early stages of the young nation’s existence. Later, as manufacturing became a more important segment of the economy, national leaders turned to tariffs to protect its growing manufacturing sector. The colonies who chafed under the protectionist British state eventually created their own protectionist policies to protect its own economic interests. In both instances, however, these policies had unintended consequences for the nature and composition of trade.
How the City is Regulated General and Specific Regulation in Planning and Building Legislations in Stockholm, Sweden 1874- 2010
Session: 1
Authors: Klas Eriksson
Co-authors: NA
Abstract: This paper examines the level of generality and specificity of the city planning and building law and its predecessors in Sweden (from now on abbreviated PBL ) from 1874 to 2010. The aim is to explore whether Jarrick and Wallenberg Bondesson’s theory that laws tend to be more general in formulation the more advanced the society becomes also holds for markets. By coding every law issue in every law section in every PBL (the most important law regulating public and private ownership of real estate and city development) from 1874 to 2010 as either “general”, “specific”, or “middle” in formulation this paper shows an evolution of law formulation in regard to precision and demarcation. The category “general” concerns a formulation that is abstract, holistic, and open to numerous interpretations; the category “specific” refers to a formulation that is concrete, defined and that can only be interpreted in one way; the category “middle” is in between these extremes. This method is inspired by Jarrick and Wallenberg Bondesson in their examination of law formulation in constitutions over a period of 4000 years, which suggests that young non-complex societies have a high ratio of specific law formulation and that the laws tend to become more general the more complex and developed a society becomes. This study finds that the general and especially the middle category expanded relative to the specific category during the investigated period, which lends some support to Jarrick’s and Wallenberg Bondesson’s hypothesis – while also indicating that this evolution moves faster in markets than in whole societies. The share of law issues belonging to the specific category reached a peak in 1874 and 1907, radically decreased in 1931 and 1947, and increased slightly in 1987 and 2010. The middle category had the opposite trend line. The general category was only represented by 10 percent of law issues in 1874, which more than doubled in 2010. Also, the total number of law issues radically increased during the period. These results are also related to theories of rationalization and bureaucratization. Less complex societies have more specific rules, which are more straightforward for agents to navigate, and do not require a large bureaucracy. The transformation toward a more complex society generates the adoption of more general rules, but also a growth in the number of rules and a bureaucracy that rises to administer these rules, especially to resolve various uncertainties. This process of rationalization and bureaucratization also entails a suffocation of small-scale initiatives and entrepreneurship, which in turn lays the foundation for future creative destruction of the institutional framework and established organizations. However, in Sweden such a transformation in the area of PBL has not yet occurred. Instead, a type of institutional stagnation can be observed for the period 1947 to 2010, following a period of volatility and dynamics between 1874 and 1946.
The price and welfare consequences of the British Sugar Act of 1846
Session: 1
Authors: Christopher Absell
Co-authors: NA
Abstract: Research on trade liberalisation frequently overlooks the effects on third party welfare. This paper studies an historically tragic third-party consequence of a special case of tariff reform: the British Sugar Act of 1846. Using a new database of monthly observations of prices and import volumes for the period 1840-53, this paper estimates the price and welfare effects of the passage of the Sugar Act for consumers and colonial and noncolonial producers. Considerable consumption gains for British consumers and a reduced deadweight loss were derived from the intensification of trade with the slave-economies.
Kampen om skogsråvaran - köpsågverkens situation i Norrland efter 1970
Session: 2
Authors: Thomas Pettersson
Co-authors: Fredrik Olsson Spjut
Abstract: Relativt små privata sågverk som inte äger skog, så kallade köpsågverk, har sedan 1950-talet hamnat alltmer i kläm mellan å ena sidan råvaruförsörjning och timmerpriser och å andra sidan avsättningsvillkoren på främst regionala men också nationella och internationella marknader. Utvecklingen i hela den svenska skogsindustrin präglades särskilt under 1950- och 1960-talen av hårdare internationell konkurrens som i sin tur drev fram ökad koncentration, ny produktionsteknik, samt stordriftsproduktion med större kapitalinsats. För att hantera konkurrensen har de små köpsågverken försökt organisera sina intressen för att framför allt påverka utbudet av och prisnivnå på råvaran. Vi vill beskriva och analysera hur köpsågverk i framför allt Norr- och Västerbotten samarbetat inom ramen för den svenska skogsindustrins utveckling mot mer kapitalintensiv produktion och en allt starkare koncentration av verksamheterna.
Vi fokuserar de regionala intresseorganisationerna ABSI och SÅGAB, var arkiv vi fått tillgång till. De flesta ärenden som behandlats av styrelsen för ABSI och senare SÅGAB under perioden från 1970-talet fram till i dag har handlat om hur sågverken ska säkra tillgång till sågtimmer och hur prisnivåerna ska beräknas och fastställas. I detta sammanhang har även statsmakten spelat en stor roll. Den svenska virkesmarknaden var under lång tid uppdelad i prisområden, där Västerbotten ingick i ett prisområde tillsammans med övriga norrlandslän. Handeln med sågtimmer var reglerad genom att köparna genom sina karteller förhandlade med säljarna via skogsägarföreningarna om priset inom respektive område. Detta kunde ske eftersom skogsägarföreningarna var bundna till sina givna geografiska områden och inte fick arbeta utanför dessa. Tanken var att prisområdena och prisförhandlingarna skulle bidra till att lösa två problem, dels att åstadkomma rimliga och stabila prisnivåer på sågtimmer, dels att främja planerbarhet i tillgång till sågtimret, eftersom avverkning ibland behövde uppmuntras oavsett prisbild, särskilt när det gällde små privata skogsägare. En händelse som påverkade virkesmarknaden på ett mer djupgående sätt inträffade 1993, när Sverige skulle bli medlem i EU och behövde anpassa sin konkurrenslagstiftning. Den öppna handeln mellan medlemsländerna innebar skärpta regler när det gällde kartellbildningar, vilket fick stora effekter för skogsindustrins föreningar, med deras långa traditioner av kartelliknande samarbeten om priser.
Papperet består av två delar: först undersöks vilka köpsågverk som funnits i Norr- och Västerbotten från 1970-talet till omkring 2015. Hur analyseras hur produktionen, produktiviteten, produktionsorganisationen och -tekniken och lönsamheten utvecklats. I den andra delen studeras hur samarbetsorganisationerna ABSI och senare SÅGAB försökte hantera förändrade marknadsförhållanden och nya politiska villkor.
MUSIKLIFVETS HÖJANDE!
Session: 2
Authors: Staffan Albinsson
Co-authors: NA
Abstract: MUSIKLIFVETS HÖJANDE
Hur kom det sig att tre professionella landsortsorkestrar skapades 1912-1914?
Vi tar symfoniorkestrarna i Helsingborg, Gävle och Norrköping för givna i det svenska musiklivet. De är väletablerade konstnärliga företeelser i varsitt konserthus. De hade knappast skapats utan riksdagsbesluten den 13 maj 1911 (första kammaren) respektive den 17 maj (andra kammaren) om ett statligt bidrag till just etablerandet av två landsortsorkestrar. Besluten fattades med snäv majoritet: 63 mot 61 röster i första kammaren och 105 mot 97 röster i andra kammaren. Det blev den egentliga initiativtagaren, Kungl. Musikaliska Akademien/KMA, som fick uppgiften att utse vilka orkestrar som skulle få bidragen och villkoren för den framtida verksamheten. I akademiens förarbete hade man undersökt beredskapen att bilda professionella symfoniorkestrar ett tjugotal städer. Går det att utläsa ur riksdagshandlingarna vilka argumetn som var viktiga för det positiva beslutet om ”Musiklifvets höjande”? Varför blev det just Helsingborg och Gävle som fick statsbidragen? Vilka var statens villkor? Vilka argument använde städerna? Varför var det Norrköping och inte Uppsala, Uddevalla eller Sundsvall som två år senare fick det tredje statsbidraget? KMA:s arkiv har många svar. Den dåtida dagspressen bidrar också med information. Även riksdagens arkiv har genomsökts för relevant information. Orkestrarnas egna arkiv hos respektive stadsarkiv ger detaljerna för beskrivningen av det första kvartsseklets ekonomiska utveckling. Uppenbarligen var den tidigare flitiga orkesterverksamheten, bl. a. med folkkonserter, i Helsingborg av stor vikt för hela statsbidragsinitiativet ”Musiklifvets höjande” och för just den stadens försteg i urvalprocessen. I Göteborg fanns redan en yrkesorkester med ett aktivt folkbildande arbete och även folkkonserter i andras regi. Från den staden hämtades de som inom KMA tog initiativ till och drev frågan. Att Gävle och Helsingborg redan säkrat kommunal finansiering vägde förstås tungt. Även Norrköping ansågs ha en säkrare finansiering än konkurrenten Uppsala. Dessutom angav KMA att det var en fördel att Norrköping hade en större mängd kroppsarbetare som var en avgörande målgrupp.
Tariff protection in Argentina between 1879 and 1951
Session: 2
Authors: Juan Pablo Juliá
Co-authors: Cecilia Lara (Universidad de la República, Uruguay)
Abstract: This paper explores the evolution of tariff protection in Argentina between 1879 and 1951. While Latin American countries since independence are usually perceived as extremely protectionist, the impact on industrial development remained weak. Argentina, which by the end of the 19th century was categorized as a rich nation, was not an exception. It is not clear whether fiscal, industrialists, or extractive reasons dominated the configuration of tariffs in the country. Previous studies about tariff protection in the region relied on total custom revenue data relative to import values. However, to understand the structure of tariffs in the country we propose an indicator that reflects the effects of changes in tariffs and prices. Using a bottom-up approach based on individual goods data we study how changes of policies and international circumstances shaped local protection. With this study we want to understand if commercial policy was correctly designed to promote industrial activities. Also, we attempt to distinguish when and how radical was the shift towards the import substitution regime at the beginning of the 20th century. Lastly, we will try to distinguish to what extent the extractive character of the Argentine economy was reflected in the design of its tariff system. By doing that we seek to stress that import substitution began as a sub-product of both world wars effects and the economic depression of the 1930s, and not due to explicit economic policies. This lack of a correctly designed system would have hindered the development of the industrial sector in the country.
THE CONNECTION BETWEEN THE INVISIBLE HAND AND ADAM SMITH’S MORAL THEORY: A SYNTHESIS PROBLEM
Session: 2
Authors: Ledson Luiz Gomes da Rosa
Co-authors: NA
Abstract: Adam Smith takes on a distinguished role in the history of economic thought as the author who lays the foundations of Classical Political Economy and outlines key aspects of economic liberalism. As a result, over time, the idea of the “Invisible Hand” took the form of an archetype of harmony generated by the market. The question that arises within the Wealth of Nations itself is how the “Invisible Hand” presents itself as a result of its theory of labor value, since it points in the direction of conflict in demand between classes; At the same time, The Theory of Moral Sentiments has highlighted the role of empathy. The objective of this work is to seek to establish this relationship. The results are in line with an effective connection between these elements, but which undergo a redefinition of the understanding of what kind of harmony Smith proposes.