Agents of neoliberal globalization corporate networks, state structures, and trade policy

www.ebook3000.com Agents of Neoliberal Globalization Depictions of globalization commonly recite a story of a market unleashed, bringing Big Macs and iPhones to all corners of the world Human society appears as a passive observer to a busy revolution of an invisible global market, paradoxically unfolding by its own energy Sometimes, this market is thought to be unleashed by politicians working on the surface of an autonomous state This book rejects both perspectives and provides an analytically rich alternative to conventional approaches to globalization By the 1980s, an enduring corporate coalition advanced in nearly synonymous terms free trade, tax cuts, and deregulation Highly networked corporate leaders and state officials worked in concert to produce the trade policy framework for neoliberal globalization Marshalling original network data and a historical narrative, this book shows that the globalizing corporate titans of the late 1960s aligned with economic conservatives to set into motion this vision of a global free market Michael C Dreiling is a sociology professor at the University of Oregon specializing in political and environmental sociology He is the author of two books and numerous research articles, and is presently working on a comparative study of energy industry networks Awarded Distinguished University Teaching in 2009, the Martin Luther King Jr Distinguished Service Award in 2010, and numerous leadership awards in 2015, Professor Dreiling is also active in the nonprofit world to promote nonviolence, environmental care, and an economy that is fair for all A Bold Peace – a feature documentary film coproduced with Matthew Eddy – depicts that vision of a better world Derek Y Darves holds a PhD in sociology from the University of Oregon, where he focused on organizational theory, quantitative methods, the sociology of religion, and power structure research Currently he is the Senior Data Scientist for a pension fund in New York City An ordained Episcopal priest, he has contributed to several empirical reports on trends within the Episcopal Church and also serves part-time at a variety of churches in the Episcopal dioceses of Newark and New York www.ebook3000.com Agents of Neoliberal Globalization Corporate Networks, State Structures, and Trade Policy MICHAEL C DREILING University of Oregon DEREK Y DARVES Independent Scholar www.ebook3000.com 32 Avenue of the Americas, New York, ny 10013 Cambridge University Press is part of the University of Cambridge It furthers the University’s mission by disseminating knowledge in the pursuit of education, learning, and research at the highest international levels of excellence www.cambridge.org Information on this title: www.cambridge.org/9781107133969 © Michael C Dreiling and Derek Y Darves 2016 This publication is in copyright Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press First published 2016 Printed in the United States of America by Sheridan Books, Inc A catalogue record for this publication is available from the British Library Library of Congress Cataloging-in-Publication Data Dreiling, Michael C., author | Darves, Derek Y., author Agents of neoliberal globalization : corporate networks, state structures, and trade policy / Michael C Dreiling, University of Oregon, Derek Y Darves, Independent Scholar New York, NY : Cambridge University Press, 2016 | Includes bibliographical references LCCN 2016026288 | ISBN 9781107133969 LCSH: Corporations, American – Political aspects | Corporations – Political activity – United States | Neoliberalism – United States | United States – Commerce | United States – Foreign economic relations | United States – Economic policy LCC HD2785 D74 2016 | DDC 337.73–dc23 LC record available at https://lccn.loc.gov/2016026288 isbn 978-1-107-13396-9 Hardback Cambridge University Press has no responsibility for the persistence or accuracy of URLs for external or third-party Internet Web sites referred to in this publication and does not guarantee that any content on such Web sites is, or will remain, accurate or appropriate To our children: Nalani, Nile, and Hana Dreiling & Rosalie Darves www.ebook3000.com Contents List of Figures page x List of Tables xii Acknowledgments Common Abbreviations xv xvii Introduction Neoliberalism, Trade Expansion, and Class Agency Imagining a Globalized World Where Corporate Networks Meet the State: An Anecdote and a Beginning Who Rules? A Relational Inquiry Data and Analysis, in Brief Outline of Chapters 17 23 28 32 Corporate Political Unity and Class Agency 36 Section 2.1: Sources of Intercorporate Unity When Corporations Are Not a Class: The Atomistic Perspective Emergence of a Structural Perspective on Corporate Control: Board Interlocks The Network Approach to Class Cohesion Shifting Conditions of Class Cohesion: Looking for Unity in the Wrong Places Section 2.2: An Expanded Conceptualization of Class Agency Two Broad Conditions for Class and Class Agency Contingent Class and State Relations Summary Model 36 vii www.ebook3000.com 10 14 37 40 49 55 59 60 69 74 viii Contents A Critical Sociology of US Trade Policy Corporations and American Trade Policy Trade Politics after the RTAA Why the Decline in Protectionism in the 1970s? Theoretical Limits of Trade Policy Research Trade Interests and Corporate Political Activism: Company or Class? Models of Corporate Political Action in Trade Policy Research Discussion and Hypotheses Class-Cohesion Sources of Corporate Political Activism Forging a Neoliberal Trade Policy Network, 1967–1994 Historical Conjuncture, Institutional Change, and Class Agency Global Institutions and American Trade Policy: The Cusp of a New Economic Era Mobilizing to Liberate Trade and Finance: The Emergency Committee for American Trade Internationalists Take Stride: Setting the Trade Agenda and Liberating the Dollar Transforming the State: Lobbying for the 1974 Trade Act Rise of the Roundtable: Moderates on the Ropes Consolidating a Neoliberal Trade Policy Network, 1983–1994 A Neoliberal Trade Policy Network: Defending the North American Free Trade Agreement The State Captain Intercorporate Network China PNTR and Beyond Discussion: The Corporate Neoliberal Policy Network Inside the State: Corporate Participation in Trade Policy Fortune and Forbes 500 (FF500) Company-Level Analyses Statistical Methods: Firm-Level Models Participation in Trade Advisory Committees Participation in Temporary Political Alliances Participation in Congressional Testimony Contrasting Corporate Political Networks Another Glance at the Business Roundtable Discussion Fusing Class Agency to a State Trade Policy Apparatus Measuring Corporate Unity: Dyads Statistical Methods: Dyadic Models 78 79 84 88 96 99 103 110 114 115 119 124 134 137 141 146 148 151 159 160 163 165 171 173 179 181 185 189 194 196 198 204 284 References Ostrom Jr., Charles W 1978 Time series analysis: Regression techniques Thousand Oaks, CA: Sage Publications Panitch, Leo, and Sam Gindin 2013 The making of global capitalism: The political economy of American empire New York: Verso Peetz, David, and Georgina Murray 2012 “The financialization of global corporate ownership.” In Financial elites and transnational business: Who rules the world? Georgina Murray and John Scott, 26–53 Cheltenham, UK: Edward Elgar Publishing Pennings, Johannes M 1980 Interlocking directorates: Origins and consequences of connections among organizations’ boards of directors San Francisco: Jossey-Bass Inc Perrow, Charles 2005 Organizing America: Wealth, power, and the origins of corporate capitalism Princeton: Princeton University Press Peschek, Joseph 1987 Policy-planning organizations: Elite agenda and America’s rightward turn Philadelphia: Temple University Press Pfeffer, Jeffrey 1987 “A resource dependence perspective on intercorporate relations.” In Intercorporate relations: The structural analysis of business Edited by Mark S Mizruchi and Michael Schwartz, 25–55 New York: Cambridge University Press Pfeffer, Jeffrey, and Gerald R Salancik 1978 The external control of organizations: A resource dependency perspective New York: Harper & Row Phillips, Michael M 2000 “Lawmakers are warned to back China trade or lose contributions.” Wall Street Journal, February 9, p A1 Phillips-Fein, Kim 2009 Invisible hands: The making of the conservative movement from the New Deal to Reagan New York: W W Norton & Company Pierce, Justin R., and Peter K Schott 2012 The surprisingly swift decline of U.S manufacturing employment NBER Working Paper No 18655 Cambridge, MA: The National Bureau of Economic Research Piore, Michael J., and Charles Sabel 1984 The second industrial divide: Possibilities for prosperity New York: Basic Books Polanyi, Karl 2001 The great transformation: The political and economic origins of our time Boston: Beacon Press First published 1944 by Beacon Books Polanyi-Levitt, Kari 1985 “The origins and implications of the Caribbean Basin Initiative: Mortgaging sovereignty?” International Journal 40: 229–281 Poulantzas, Nicos A 1973 Political power and social classes Translated by Timothy O’Hagan NLB London: Sheed and Ward First published 1968 —1978 State, power, socialism Translated by Patrick Camiller London: Verso Powell, Colin L 2001 “The promise of China trade.” Washington Post, June 1, p A31 Prasad, Monica 2006 The politics of free markets: The rise of neoliberal economic policies in Britain, France, Germany and the United States Chicago: University of Chicago Press —2012 “The popular origins of neoliberalism in the Reagan tax cut of 1981.” Journal of Policy History 24: 351–383 Prechel, Harland 1990 “Steel and the state: Industry politics and business policy formation, 1940–1989.” American Sociological Review 55: 648–668 References 285 —2000 Big business and the state: Historical transitions and corporate transformations, 1880s–1990s Albany: State University of New York Press —2003 “Historical contingency theory, policy paradigm shifts, and corporate malfeasance at the turn to the 21st century.” Research in Political Sociology: Political Sociology for the 21st Century 12: 311–340 Preeg, Ernest H 1998 From here to free trade: Essays in post-Uruguay round trade strategy Chicago: University of Chicago Przeworski, Adam 1990 The state and economy under capitalism New York: Harwood Quark, Amy 2011 “Transnational governance as contested institution-building: China, merchants, and contract rules in the cotton trade.” Politics & Society 39: 3–39 Raudenbush, Stephen W., and Anthony Bryk 2002 Hierarchical linear models: Applications and data analysis methods Thousand Oaks, CA: Sage Publications Robinson, William I 2004 A theory of global capitalism: Production, class, and state in a transnational world Baltimore: Johns Hopkins University Press Rockefeller, David 1963 “International monetary reform and the New York banking community.” In World banking reform: Plans and issues Edited by Herbert G Grubel, 150–159 Stanford: Stanford University Press Rodrik, Dani 1997 Has globalization gone too far? Washington, DC: Institute for International Economics Rogowski, Ronald 1989 Commerce and coalitions: How trade affects domestic political alignments Princeton: Princeton University Press Ruggie, John G 1982 “International regimes, transactions, and change: Embedded liberalism in the postwar economic order,” International Organization 36: 379–415 —1998 Constructing the world polity: Essays on international institutionalization New York: Routledge Salant, Jonathan D 1999 “Business groups ready for China trade debate.” Ocala Star-Banner, December 19, p 4B Salisbury, Robert H 1992 Interests and institutions: Substance and structure in American politics Pittsburgh: University of Pittsburgh Press Sanger, David E 2000 “The China trade vote: Rounding out a clear Clinton legacy.” New York Times, May 25, p A23 Sassen, Saskia 1996 Losing control? Sovereignty in an age of globalization New York: Columbia University Press —1999 “Making the global economy run: The role of national states and private agents.” International Social Science Journal 51: 409–416 Sayrs, Lois W 1989 Pooled time series analysis Newbury Park, CA: Sage Publications Inc Schattschneider, Elmer E 1935 Politics, pressures, and the tariff: A study of free private enterprise in pressure politics, as shown in the 1929–1930 revision of the tariff New York: Prentice Hall Schriftgiesser, Karl 1967 Business and public policy: The role of the Committee for Economic Development, 1942–1967 Englewood Cliffs, NJ: PrenticeHall www.ebook3000.com 286 References Scott, John 1979 Corporations, classes and capitalism London: Hutchinson —1991 Who rules Britain? Cambridge: Polity Press, 1991 —1997 Corporate business and capitalist classes Oxford: Oxford University Press Scott, John, F Stokman, and R Zeigler, eds 1985 Networks of corporate power Cambridge: Polity Press Shoch, James 2001 Trading blows party competition and U.S trade policy in a globalizing era Chapel Hill: University of North Carolina Press, 2001 Shoup, Laurence H., and Minter, William 1977 The imperial brain trust: The council on foreign relations and United States foreign policy New York: Monthly Review Press Silva, Patricio 2008 In the name of reason: Technocrats and politics in Chile University Park: Pennsylvania State University Press Sinclair, Scott 2015 “NAFTA Chapter 11 Investor-State Disputes to January 1, 2015.” Ottawa: Canadian Centre for Policy Alternatives Sklair, Leslie 2001 The transnational capitalist class Oxford: Basil Blackwell —2002a “The transnational capitalist class and global politics: Deconstructing the corporate-state connection.” International Political Science Review / Revue Internationale de Science Politique 23: 159–174 —2002b Globalization: Capitalism and its alternatives Oxford: Oxford University Press Skocpol, Theda 1979 States and social revolutions: A comparative analysis of France, Russia, and China Cambridge: Cambridge University Press —1992 Protecting mothers and soldiers: The political origins of social policy in the United States Cambridge: Harvard University Press Skocpol, Theda, and Edwin Amenta 1985 “Did capitalists shape social security?” American Sociological Review 50: 572–575 Skocpol, Theda, and Kenneth Finegold 1982 “State capacity and economic intervention in the early New Deal.” Political Science Quarterly 97: 255–278 Sonquist, John, and Thomas Koenig 1975 “Interlocking directorates in the top US corporations: A graph theory approach.” The Insurgent Sociologist 5(3): 196–229 Sorauf, Francis J 1991 “PACs and parties in American politics.” In Interest group politics Edited by Allan J Cigler and Burdett A Loomis, 87–105 Washington, DC: Congressional Quarterly Press Staples, Clifford L 2006 “Board interlocks and the study of the transnational capitalist class.” Journal of World Systems Research 12: 309–319 —2007 “Board globalization in the world’s largest TNCs 1993–2005.” Corporate Governance: An International Journal 15: 311–321 —2012 “The Business Roundtable and the transnational capitalist class.” In Financial elites and transnational business: Who rules the world? Edited by Georgina Murray and John Scott, 100–123 Cheltenham, UK: Edward Elgar Publishing Stokman, F.N., R Ziegler, and J Scott, eds 1985 Networks of corporate power: A comparative analysis of ten countries Oxford: Polity Press Strange, Susan 1996 The retreat of the state: The diffusion of power in the world economy Cambridge: Cambridge University Press References 287 Sweezy, Paul M 1953 The present as history: Essays and reviews on capitalism and socialism New York: Monthly Review Press Thacker, Strom C 2000 Big business, the state, and free trade: Constructing coalitions in Mexico New York: Cambridge University Press TransPacific Partnership Embassies 2013 News release, “TPP Ambassadors to the United States welcome congressional friends of TPP caucus.” October 29 Washington, DC: TPP Embassies US Council for International Business 1993 Annual Report Washington, DC: USCIB US Council for International Business 1994 Monthly News Washington, DC: USCIB US House of Representatives 1995 Fast Track Issues Committee on Ways and Means, 104th Congress, 1st Session Washington, DC: Government Printing Office US Senate 1992 North American Free Trade Agreement Committee on Finance, 102nd Congress, 2nd Session Washington, DC: Government Printing Office US Senate 2004 U.S.-Australia and U.S.-Morocco Free Trade Agreements Committee on Finance, 108th Congress, 2nd Session Washington, DC: Government Printing Office Uniworld Business Publications Directory of American firms operating in foreign countries, 9th, 10th, 11th, 12th, 13th eds New York: Uniworld Business Publications, Inc Useem, Michael 1979 “The social organization of the business elite and participation of corporate directors in the governance of American institutions.” American Sociological Review 44: 553–572 —1984 The inner circle: Large corporations and the rise of business political activity in the U.S and U.K New York: Oxford University Press Vitali, Stefania, James B Glattfelder, Stefano Battiston, and Alejandro Raul Hernandez Montoya 2011 “The network of global corporate control.” PLoS ONE 6(10): 3–18 Vogel, David 1989 Fluctuating fortunes: The political power of business in America New York: Basic Books Walker, Jack L 1991 Mobilizing interest groups in America: Patrons, professions, and social movements Ann Arbor: University of Michigan Press Wallach, Lori, and Michelle Sforza 1999 Whose trade organization? Corporate globalization and the erosion of democracy Washington, DC: Public Citizen Weber, Max [1921] 1978 Economy and society Edited by Guenther Roth and Claus Wittich Berkeley: University of California Press Wilcke, Gerd 1967a “U.S backs Javits on trade protectionism: A coalition is urged.” New York Times, November 1, p 63, 67 —1967b “Protectionist moves in Congress assailed: The 54th Convention of NFTC.” New York Times, November 2, p 71, 79 —1967c “Trade camps vie for favor: Support urged on opposing interests.” New York Times, November 10, p F71 —1967d “Watson of I.B.M heads group opposing import quota moves.” New York Times, November 16, p 69, 78 www.ebook3000.com 288 References Williams, Albert L 1971 United States international economic policy in an interdependent world Washington, DC: Commission on Interim Trade Wilson, Michael G 1993 “The North American Free Trade Agreement: Ronald Reagan’s Vision Realized,” Executive Memorandum Washington, DC: The Heritage Foundation Woodall, Patrick, Lori Wallach, Jessica Roach, and Katie Burnham 2000 Purchasing power: The corporate–White House alliance to pass the China Trade Bill over the will of the American people Washington, DC: Public Citizen Woods, Tim 2003 “Capitalist class relations, the state, and New Deal foreign trade policy.” Critical Sociology 29: 393–418 Woods, Tim, and Theresa Morris 2007 “Fast tracking trade policy: State structures and NGO influence during the NAFTA negotiations.” Research in Political Sociology 15: 177–204 Yarbrough, Beth V., and Robert M Yarbrough 1992 Cooperation and governance in international trade: The strategic organizational approach Princeton: Princeton University Press Zeitlin, Maurice 1974 “Corporate ownership and control: The large corporation and the capitalist class.” American Journal of Sociology 79: 1073–1119 Index 1974 Trade Act, 18, 23, 87, 207 actors behind project of globalization, 140 corporate and state leaders acting in concert, 161 creation of trade advisory committees, 87 goals of proposed legislation, 138 political action of globalizing corporate leaders, 160 support from within Nixon administration, 135 ACTPN See Advisory Committee for Trade Policy and Negotiations Advisory Committee for Trade Policy and Negotiations, 20, 168 Advisory Committee on Trade Policy and Negotiations, 147 Albright, Madeline – Secretary of State, 226 America Leads on Trade (ALOT), 170 organizing a CEO lobbying blitz for China PNTR, 228 American Enterprise Institute (AEI), 17 founding, 124 American Federation of Labor-Congress of Industrial Organizations (AFL-CIO), 86 trade protection, 124 American Importers Association, 130 atomistic models, 30 Attack on the Free Enterprise System See Justice Lewis Powell average distance, 23, 154, 155, 158 Baran, Paul A., 42 Battle in Seattle, 159 bipartisan support for China PNTR, 227 board interlocks, 55 declining, 55 globalizing of, 55 industry concentration, 45 shifting dynamics of, 55 social cohesion, 51 twentieth century decline of, 42 Borch, Fred CEO General Electric, 145 Bossidy, Lawrence A CEO Allied Signal, 245 inner circle affiliations, 245 Bretton Woods, 1, 116, 120, 121, 127, 128 Burke-Hartke Act 1971 protectionist, 86 Burns, Arthur Federal Reserve Chairman, 1972, 145 Burris, Val, 25, 51, 54, 221 board interlocks, 54 policy planning network, 52 policy planning network density, 74 Business Coalition for US China Trade gifts to Congressional members, 229 Business Coalition for US-Central America Trade, 171, 181 Business Roundtable, 14, 249 advocating neoliberal trade, 94 and ECAT members, 20 central in NAFTA policy network, 154 289 www.ebook3000.com 290 Index Business Roundtable (cont.) China PNTR lobbying effort in Congress, 227 corporate counteroffensive, 1970s, 56 goal to deregulate, weaken government wage protections, 145 increased liklihood of appointment to TAC, 158 leadership for the TPP, 246 merger and launch by corporate conservatives, 145 national television ad campaign for China PNTR, 230 network prominence, 191–193 participation in transnational networks, 56 promoting free trade, deregulation, tax cuts 1970s, 24 public relations message for China PNTR, 226 rise of, 143–146 significance of network affiliations, 191 significant associations across all models, 220 source of unity, 162 business trade conflicts, 126, 129 CAFTA See Dominican Republic-Central American Free Trade Agreement Canada-United States Free Trade Agreement, 147 Caribbean Basin Initiative, 4, 147 Carroll, William, 6, 11 Cheney, Dick CEO Halliburton, former Secretary of Defense, and co-founder USA*ENGAGE, 226 China, entry to World Trade Organization, 197 entry to WTO conditional on permanent normal trade relations, 198 exports surge after passage of PNTR, 230 foreign direct investment increases after PNTR, 230 permanent normal trade relations with, 197 promises of democratic reform with PNTR and WTO, 226 trade liberalization and drop in US manufacturing jobs, 197 trade liberalization with 1999–2010, 196 US jobs lost after PNTR and bilateral trade deficit surges, 230 world’s largest manufacturing economy 2011, 196 China PNTR See permanent normal trade relations with China Chorev, Nitsan, 87, 114, 140 delegation of trade authority to President, 139 strategy of internationalists, 134 class definition, 61 economic conditions, 61 inter-industry coalitions, 64 networks as conduits for ideas and interests, 62 political organizational conditions, 62 class agency and dyadic analysis, 201 as empirically testable, 13 contrasted with interest group concept, defined, 65 definition of, 65 greater theoretical parsimony, 232 historically contingent, 67 operationalize, 67 political unity, 65 class and state networks, 21 class coalition economic conservatives and internationalists, 161 free trade internationalists and domestic free market conservatives, 142 class cohesion across industries, 64 Business Roundtable membership, effects, 223 precondition for class agency, 67 reformulated toward neoliberal precepts, 162 class cohesion model, 49–55 board interlocks, 51 campaign contributions, 53 corporate economic interests, 49 corporate political unity, 54 policy planning network, 51 shifting conditions of networks, 56 tenets of, 25 class factions, 63 class formation, 54, 59 conditions for, 61 Index class segments, 63, 64 class unity persistence of, 58 class-based accounts of trade policy, 98 class-networks impact on corporate political behavior, 223 spanning state and nonstate institutions, 223 class-state relations interactive character of, 224 coalition against China PNTR, 224 cohesiveness, 21 Committee for Economic Development, 18, 120 pragmatic support for Keynes, 123 support for Trade Expansion Act 1962, 125 compactness score, 23, 152, 155, 158 congressional testimony coding and measurement, 169 corporate leaders, 169 connectedness score, 23, 152, 155, 158 Construction Users Anti-Inflation Roundtable blame inflation on labor costs, 1969, 144 core-periphery network structures, 152, 155, 202 corporate campaign for China PNTR leveraging campaign funds in exchange for support, 228 corporate collective action, 37 across three institutional settings, 220 corporate conservatives, 142 free market ideology, 142 opportunities to align with free trade internationalists, 142 corporate dominance, 62 corporate elite, 57 abandon public good, 57 CEO cofounders of ECAT, 131 conservative faction, 142 corporate free trade coalitions USA*NAFTA, 100 USAENGAGE, 100 corporate opposition to free trade restricted to single sector, steel, 170 corporate participation in trade policy statistical effects of networks and organizational factors, 173–185 291 corporate political action conditons for class agency, 66 free trade coalition, 1967, 129 giving rise to class agency, 61 three institutional settings, 29 corporate political power, 26 business unity, 26 corporate political strategy cut wages and shift tax burden from capital to labor, 243 multipronged approach, 224 transform the state, 140 corporate political unity, 23 1979, 146 corporate promotion of neoliberal trade focus on executive and legislative branches of government, 159 corporate-state relations, 69 class dominance, 69 state autonomy, 69 corporations globalizing, 74 organized centers of class system, 61 corporations as class actors, 28 Council of the Americas, 149 Council on Foreign Relations, 18, 120 crisis in profitability, 1970s, 27 density measure, 23, 42, 49, 55, 74, 154, 155, 158 Department of Commerce trade policy promotion in the, 163 dependent variables trade policy advocacy, 166 Dicken, Peter, 12 Domhoff, G William, 38, 41, 49, 62, 243 CED appointiees, Nixon administration, 136 Committee for Economic Development (CED), 121 Council on Foreign Relations, 121 decline of CED and rise of the Business Roundtable, 141 forming the Business Roundtable, 145 ideological class factions, 63 policy network, 52 Reciprocal Trade Agreement Act, 1934, 101 Dominican Republic-Central American Free Trade Agreement, 27, 29, 95, 169, 170, 209 www.ebook3000.com 292 Index DR-CAFTA See Dominican RepublicCentral American Free Trade Agreement dyad, 30 unit of analysis, 201 dyadic analysis data transformations, 206 distinct from firm-level analysis, 200 distinction of, 199 modelling all possible pairs, 201 modelling dependent variables, 204 regression models, 204 statistical considerations, 205 stochastic models of network ties, 200 unity defined, 201 dyadic models defined, 200 predicts political unity, 201 statistical results, 212–222 variable operationalization, 207–214 dyadic variables correlations among, 212 Eberle, William Special Trade Representative to President Nixon, 136 economic liberalism, 118 corporate conservatives, 118 Economic Recovery and Tax Act, 94 Electronic Industries Alliance lobbying for China PNTR, 229 Emergency Committee for American Trade, 17, 119, 160, 249 advocating neoliberal trade, 94 corporate CED cofounders, 131 founding, 130 scope of neoliberal trade policy advocacy, 244 Engler, John President of Business Roundtable, former Governor of Michigan, leads campaign for TPP, 230 ExxonMobil New York Times ad in support of China PNTR, 229 facilitative state structures, 70 Office of the US Trade Representative, 72 fast track origins of, 141 Federal Advisory Committee Act, 245 finance capital, 41 corporate control, 41 financial control, 42, 44 board interlocks, 43 global corporate ownership, 43 financial liberalization, 130 financialization, defined, neoliberalism, Fiorina, Carly Hewlett-Packard CEO supports China PNTR in Op-Ed, 229 Forbes 500 data sample, 166 Ford, Henry II, 131 Fortune 500 data sample, 166 free market conservatives AEI, 124 free trade belief in efficacy of, 85 ideology of, 122 threats to, 124 Friedman, Milton cofounder of Mont Pelerin Society, 144 General Agreement on Tariffs and Trade (GATT), 84, 120 capital and currency markets, 128 CED support for Kennedy Round, 126 founding, 122 Kennedy Round, 85, 124, 125 Tokyo Round, 146 Uruguay Round, 14, 92 Uruguay Round new themes, 147 global capitalism transformations of, 162 Global South, 16 neoliberalism, 14 globalization construction of, 2–3 gold standard end of, 137 Grand Area strategy, 121 graph-analytics network heuristics, 151 Great Depression, 80 Great Recession, 231 Greenspan, Alan Council of Economic Advisers to President Nixon, 144 Index Harvey, David, 17 Hayek, Friedrich lectures to American Enterprise Institute, 143 neoliberal economics, 123 Road to Serfdom, 123 Heritage Foundation, 148 hierarchical non-linear models more efficient estimate of inter-sector variability, 172 nesting corporations by two-digit sectors, 172 historical perspective, 117 analysis of path dependent outcomes, NAFTA to CAFTA, 29 incorporated comparison, 117 hypotheses, 104–113 IBM See International Business Machines import competition, 74 Germany and Japan, 86 industry cooperation class cohesive networks matter, 194 inequality increase in share to financial sector, 248 inner circle, 20, 50 institutionalist theory, 70, 231 limits to, 89 intercorporate network class formation, 52 consequences of, 50 effect on corporate political behavior, 54 effects on corporate political behavior, 49, 53 effects on corporation political behavior, 52 intercorporate unity, 200 defined, 201 International Business Machines, 17 International Chamber of Commerce, 20, 120, 131 international merchandise trade negative correlation between trade tariff rates, 11 International Monetary Fund, 14 international monetary policy floating exchange rates, 136 international monetary system dollar crisis, 128 293 internationalists, 80 political divide with protectionist industries 1960s, 129 strategy to shift trade authority to Executive, 140 trade preferences of, 80 investor-state dispute settlement provisions NAFTA chapter 11, 198 TPP, 95 isolationists, 80 trade preferences of, 80 Japan ECAT delegation to, 132 private business delegation to, 133 textile trade politics, 1970s, 133 US trade strategy, 1970, 132 Japan Committee for Economic Development, 133 Javits, Jacob – Senator, 129 Jessop, Bob accumulation strategy of capitalists, 241 Justice Lewis Powell memo to Chamber of Commerce, 24 Keynesianism declining legitimacy of, 144 Labor Law Study Group effort to weaken labor law, 143 labor unions, 124, 146 corporate backlash against, 123 opposition to China PNTR heavily oustripped by business, 230 laissez faire, 56 Largest manufacturing economy, China as, managerial thesis, 38–39 critique, 40 Marx, Karl, 50, 63 McGraw, Harold III, 20, 218 board memberships, 20 McMichael, Philip, 6, 14, 116 Mills, C.W., 20, 36, 40, 57 corporate rich, 62 corporate rich and power elite, Mizruchi, Mark, 26, 42, 56 American Enterprise Institute, 144 Business Roundtable as part of conservative resurgence, 145 www.ebook3000.com 294 Index Mizruchi, Mark (cont.) contrast of findings with, 220 decline of board interlock density, 55 decline of moderates in CED, 141 Fracturing of American Corporate Elite, 57 MNCs See multinational corporations Mont Pelerin Society, 144 Motorola support for China PNTR, 229 multidimensional scaling, 189 graph visualization method, 152 Multilateral Trade Negotiation coalition, 147 multinational corporations, 13, See MNCs political agency, political role in globalization, 223 press from more investor protections after China PNTR, 230 Reciprocal Trade Agreements Act, 83 multinationality thesis, 92 NAFTA See North American Free Trade Agreement National Association of Manufacturers, 63 disdain for labor unions, 123 National Foreign Trade Council, 129, 131 Neal, Alfred C President of CED and member of Williams Commission, 135 neoliberal globalization, as distinct trajectory began, 137 class agency, class explanations of, 60 free trade and economic liberalism domestically, 118 growing inequality, 243 interaction of state and class agents, method of analysis, 117 origins of, 15–16 state and class agents, 248 world economic transformation, 231 world historical patterns, 29 neoliberal ideology principles of, neoliberal trade bipartisan support for, 58 distinction from fair trade, neoliberal trade institutions relied on consistent class agency in collaboration with state actors, 237 neoliberal trade policy, 2, 165 corporate-state relations, 71 intellectual property and investor rights, 148 part of capitalist solution to profit squeeze, 236 neoliberal trade policy network, 151 develop the TPP, 247 integrates medium and large corporations, from periphery to core of network, 244 links U.S corporate leaders to global corporate elite, 244 neoliberalism, 56, 160 a new hegemony, 236 as ideology and institutional project, 234 class realignment, 146 defined, expanding chorus of support, 144 features of, Hayek and AEI influence over corporate conservatives, 143 ideology, 93 role in tax cuts, 94 trade liberalization, 23 network analysis, 28, 251 network cohesion, 201 network effects, 185 network graphs board interlocks, 185 Business Roundtable and non-BRT corporations, 189 policy group connections, 189 State Captains, 151 visualization heuristic, 201 network hub, 65 network visualization, 204 Nixon administration revolving door with CED leaders, 140 North American Free Trade Agreement, 14, 27 after twenty years, 248 chapter 11, 247 emergence of neoliberal trade policy network, 147 model for TPP, 95 passage of, 148 Office of the U.S Trade Representative as facilitative state structure, 232 work with Business Roundtable to develop TPP, 247 Index Office of the US Trade Representative (USTR) formation of, 140 Organisation for Economic Co-operation and Development (OECD), 127 organized labor See labor unions ownership and control, 40 Packard, David, 131 Pearce, William Deputy STR to Nixon, CEO Cargill, member of Williams Commission, 139 permanent normal trade relations with China (PNTR), 160 class agency explanation, 224 condition for WTO membership, 198 corporate coalition for, 196 corporate mobilization to pass, 224–231 House Resolution 4444 passage, 225 investors move production to China, 230 most expensive lobbying campaign in US history, 225 precursor to geographic shift in capital and trade balance, 197 state-centered explanation, 223 support from all living Secretaries of State, 225 Peterson, Pete G elite connections and Nixon’s Secretary of Commerce, 135 PNTR See permanent normal trade relations with China PNTR War Room, Clinton White House, 225 Poisson regression, 171 dyad models, 205 Polanyi, Karl, 1, 114, 118 policy planning network, 51, 243 Business Roundtable, center of, 56 ideological divides, 52 stability of, 56 policy planning organizations, 249 policy struggles legacies of class agency, 241 Powell memo, 143 power elite, 62 power structure approach, 40 See also class cohesion model state agencies and class associative mechanisms on trade policy, 233 Prechel, Harland, 27, 70, 234, 248 capital dependence theory, 27 295 historical contingency model, 60 inter-industry political coalitions, 64 President Bill Clinton Administration, 150, 157 collaboration with corporate leaders for China PNTR, 225 President George H W Bush, 147 President Johnson Administration, 126 support for new free trade coalition, 129 President Kennedy Administration establish Office of Special Trade Representative, 125 President Nixon Administration, 18 President Ronald Reagan neoliberalism, product market control for sector interests of firm, 172 product market groupings using HNLM, 173 profit squeeze late 1960s, 142 profitability crisis 1970s neoliberal political response, 235 protectionist trade policy, 79 protectionists blocked textile bill, 134 political struggle over trade 1960s, 129 quadratic assignment procedure (QAP) regression, 206 Reciprocal Trade Agreements Act 1934, 79, 101 shift in policy authority to Executive Branch, 81 victory for internationalists, 81 resource dependence perspective, 44–46 rightward drift of American business, 24 Robinson, James D III testimony by, CEO of American Express and Chair of ACTPN, 193 Rockefeller, David, 17, 131, 149 Roth, William President Johnson’s STR urge new coalition, 1967, 129 Special Trade Representative to Kennedy and CED trustee, 125 Sato, Eisaku (Japanese premier), 133 Scott, John, 43, 60 finance capital and control, 43 www.ebook3000.com 296 Index Securities and Exchange Commission 10k filings, 166 Smoot Hawley Tariff Act, 80 state agents, 70 state and class networks measurement, 21 State Captains business unity, 151 diverse economic sectors, 151 overcoming collective action problem, 151 proximity in policy and board networks, 152 social proximity in the state apparatus, 152 state structure impact on forms of class agency, 224 structural adjustment programs See International Monetary Fund structural equivalence, 201 structural model board and policy networks, 45–49 financial theory of control, 40–45 structural models, 30 supply side economic policy Business Roundtable and neoliberals, 145 Sweezy, Paul M., 42 tariffs reductions globally, 122 to protect domestic industry from imports, 80 theories of globalization paradox, Tokyo Electric Power Company, 133 tradable goods sector, 172 trade adjustment assistance, 130 divert appeals from Legislature to adminstration, 126 trade advisory committees (TACs), 21, 83, 102, 141, 149, 159, 202, 223, 233, 254 founding of, 140 Trade Expansion Act of 1962, 85, 124 trade imbalance, 86 trade liberalization after WWII, 84 trade policy apparatus bifurcation of, 232 trade policy literature interest group theory, limitations of, 96 trade policy research, 88–96 trade promotion authority for permanent normalization of trade with China, 159 transnational capitalist class, 6, 11, 25 transnational corporate class, 43 Trans-Pacific Partnership, 58, 95, 198, 230, 242, 246, 247 US Business Coalition for the TPP passage of trade promotion for TPP, 246 US Chamber of Commerce, 142, 244 China PNTR as top legislative priority, 229 China PNTR campaign, 228 lobbying for China PNTR, 225 recipient of Powell memo, 24 US Council for International Business, 18, 121, 131, 148, 244, 249 US trade balance, 86 US Trade Representative, 19 Ambassador Charlene Barshefsky, 226 Mickey Kantor, 157 USA*NAFTA, 148 as class oriented action, 150 as interest group, 150 lobbying strategy, 157 media and legislative campaign, 150 population and sample, 251 sample, 252 State Captains, 151 Useem, Michael, 20, 46, 155, 243 class wide identity of inner circle executives, 75 consequences of board interlocks, 47 inner circle thesis, 47 research board interlocks, 46 Voluntary Foreign Credit Restraint Program, 130 Voluntary Restraint Agreements, 129 voluntary restrictions on capital outflows, 136 Waldorf-Astoria Hotel free trade business leaders meet, 129 Watergate, 139 Watson, Arthur, 17, 127, 131 Wikileaks Trans-Pacific Partnership, 247 Williams Commission, 18, 139 founding, 134 members of, 135 representatives, 18 Index Williams, Alfred, 18 corporate board memberships, 18 world economic order shaping of, 197 world economic transformations, 115 world merchandise exports, 10 world share of manufactured goods decline of US share, 86 World Trade Organization, 148, 242 creation of, 14 entry of China 2001, 197 Zeitlin, Maurice, 39, 40 www.ebook3000.com 297 ... Church and also serves part-time at a variety of churches in the Episcopal dioceses of Newark and New York www.ebook3000.com Agents of Neoliberal Globalization Corporate Networks, State Structures,. .. Library of Congress Cataloging-in-Publication Data Dreiling, Michael C., author | Darves, Derek Y., author Agents of neoliberal globalization : corporate networks, state structures, and trade policy. .. Sociology of US Trade Policy Corporations and American Trade Policy Trade Politics after the RTAA Why the Decline in Protectionism in the 1970s? Theoretical Limits of Trade Policy Research Trade