The Challenge of Hegemony

The Challenge of Hegemony

The Challenge of Hegemony Grand Strategy, Trade, and Domestic Politics steven e. lobell The University of Michigan Press Ann Arbor

Copyright by the University of Michigan 2003 All rights reserved Published in the United States of America by The University of Michigan Press Manufactured in the United States of America c Printed on acid-free paper 20 0 6 20 0 5 20 0 4 20 0 3 4 3 2 1 No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, or otherwise, without the written permission of the publisher. A CIP catalog record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Lobell, Steven E., 1964 The challenge of hegemony : grand strategy, trade, and domestic politics / Steven E. Lobell. p. cm. Includes bibliographical references and index. isbn 0-472-11312-7 (Cloth : alk. paper) 1. International economic relations. 2. Commercial policy. 3. Great Britain Foreign economic relations. I. Title. hf1359.l624 2003 306.3 dc21 2002153615

for my parents, my wife, and my children

Contents Acknowledgments ix 1 Introduction 1 2 Second Image Reversed Plus a Second Image 19 3 Liberal Contenders and Britain s Grand Strategy of Cooperation, 1889 1912 43 4 Imperial Contenders and Britain s Grand Strategy of Restrained Punishment, 1932 1939 85 5 Imperial Contenders and Spain s Grand Strategy of Punishment, 1621 1640123 6 Great Power Tenure 153 Appendix 173 Notes 175 Bibliography 201 Index 235

Acknowledgments I have been fortunate to have friends, teachers, and colleagues with able minds and generous hearts. My parents encouraged my early interest in Middle East politics, and a regional perspective is one of the kernels of this book. History courses at the University of Wisconsin-Madison left me with a clear understanding of the importance of economics in driving American diplomatic history. The other kernel for this book came from a graduate seminar paper for Arthur Stein on the declining hegemon s dilemma of how to restore the balance between the leader s capabilities and global commitments without eroding its economic capacity or undermining its military security. This book evolved through many long discussions with Art, and his insight for how to unpack and package an argument is uncanny. Key conversations with David Lake changed the nature of the project and the course of this book manuscript. I am grateful to both of them. Mark Brawley and John Owen IV, reviewers for the University of Michigan Press, provided engaging comments and encouraged the clari cation and development of several points that honed the argument. I have turned to many colleagues over the years for comment on parts of this manuscript. For their keen observations and criticisms I thank Michael Herb, Shale Horowitz, Neal Jesse, David Pervin, Katja Weber, Kristen Williams, and Paul Williams. I appreciate the encouragement from Michael Cox, Benjamin Frankel, Peter Gourevitch, Patrick James, Samir Khalaf, Benjamin Miller, T. V. Paul, Richard Rosecrance, Stephen Saideman, Lars Skålnes, Etel Solingen, and Steven Spiegel. Colleagues at the University of Northern Iowa were especially supportive, including Kenneth Basom, Matthias Kaelberer, Philip Mauceri, Tom Rice, and Dhirendra Vajpeyi. Ryan Fitzharris, Brent Steele, and Emily Taylor provided helpful research support. I also thank Jeremy Shine, Erin Snoddy,

x Acknowledgments and Kevin Rennells of the University of Michigan Press for their professionalism and editorial suggestions. I have received nancial support for this project from a number of institutions. For their support, I thank the University of Northern Iowa s Graduate College s Summer Fellowship and the Dean s Challenge Grant, the University of California s Institute on Global Con ict and Cooperation, the John D. and Catherine T. MacArthur Foundation, the Andrew W. Mellon Foundation Fellowship, and U.C.L.A. s Dissertation Year Fellowship, Political Science Fellowship, Graham Fellowship, and the International Studies and Overseas Program Fellowship. A number of institutions allowed me to use their collections, including the Public Records Of ce (Kew), the Memorial Library at the University of Wisconsin-Madison, the London School of Economics, and Guildhall Library (London). I dedicate this book to my parents, my wife, and my children. They have been a constant source of support. My father is truly a role model. His dedication to medicine and to his patients is a lesson for me. My wife and my children remind me of what is really important, and they keep my life in balance. I thank my sisters and close friends for their encouragement.