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Corporatism in Early Twentieth-Century Britain: Three Alternatives for a Post-Liberal Order

Published online by Cambridge University Press:  31 January 2022

Valerio Torreggiani*
Affiliation:
Department of History, Institute of Social Sciences, University of Lisbon, Av. Prof. Aníbal Bettencourt 9, 1600-189 Lisboa, Portugal

Abstract

This article engages with the most recent literature on the global circulation of corporatist projects, discussing three reform schemes elaborated in Britain during the first half of the twentieth century – G.D.H. Cole's guild socialism, Dudley Docker's technocratic business parliament and Harold Macmillan's conservative industrial self-government. Overcoming the often too rigid equivalences between corporatism and fascism, this article seeks to ascertain to what extent and with what nuances corporatist ideas circulated among non-fascist political circles in Britain. It is argued that the schemes analysed shared a similar corporatist matrix, which nonetheless served as the core idea of different political strategies. In the conclusions, it is claimed that these dissimilarities are consequential to the degree of adherence to the principles of capitalism, i.e. the profit-earning motive and the private ownership of the means of production, as well as to the democratic level of the institutions proposed.

Type
Article
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press

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References

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13 Villis, Reaction and the Avant-Garde, 55.

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15 Samuel G. Hobson, National Guilds. An Inquiry into the Wage System and the Way Out (London: S.G. Bells & Sons, 1914). On Cole and guild socialism see Joseph Persky and Kirsten Madden, ‘The Economic Content of G.D.H. Cole's Guild Socialism: Behavioural Assumptions, Institutional Structure, and Analytical Argument’, The European Journal of the History of Economic Thought, 26, 3 (2019), 427–63; Stears, ‘Guild Socialism and Ideological Diversity on British Left’; Marc Stears, Progressive, Pluralist, and the Problems of the State. Ideologies of Reform in the United States and Britain, 1909–1926 (Oxford: Oxford University Press, 2006), 88–123; David Goodway, ‘G.D.H. Cole: A Socialist and a Pluralist’, in Peter Ackers and Alastair J. Reid, eds., Alternatives to State-Socialism in Britain. Other Worlds of Labour in the Twentieth Century (London: Palgrave, 2016), 245–70; Rogan, The Moral Economists, 29–40; Cécile Laborde, Pluralist Thought and the State in Britain and France, 1900–25 (Basingstoke: Macmillan, 2000), 69–100; Leonie Holthaus, Pluralist Democracy in International Relations: L.T. Hobhouse, G.D.H. Cole and David Mitrany (Cham: Palgrave Macmillan, 2018), 119–51; L.P. Carpenter, G.D.H. Cole. An Intellectual Biography (Cambridge: Cambridge University Press, 1973) and A.W. Wright, G.D.H. Cole and Socialist Democracy (Oxford: Clarendon Press, 1979).

16 On the New Age circle see Wallace Martin, The New Age Under Orage. Chapters in English Cultural History (Manchester: Manchester University Press, 1967); Frank Matthews, ‘The Ladder of Becoming: A.R. Orage, A.J. Penty and the Origins of Guilds Socialism’, in David E. Martin and David Rubenstein, eds, Ideology and the Labour Movement (London: Croom Held, 1979), 147–66; Gary Taylor, Orage and the New Age (Sheffield: Sheffield Hallam University Press, 2004); Villis, Reaction and the Avant-Garde; and Jackson, Great War Modernisims.

17 The most important work of Von Gierke was Das Deutsche Genossenschaftsrecht, which appeared in four volumes between 1868 and 1913. The third part was translated into English by Maitland in 1900 with the title The Political Theories of the Middle Ages (Cambridge: Cambridge University Press, 1900). For the links between Von Gierke and British pluralism see Michael Dreyer, ‘German Roots of the Theory of Pluralism’, Constitutional Political Economy, 4 (1993), 7–39.

18 On British pluralism see Mark Bevir, ed., Modern Pluralism. Anglo-American Debates Since 1880 (Cambridge: Cambridge University Press, 2012); Henrik Enroth, ‘Beyond Unity in Plurality: Rethinking the Pluralist Legacy’, Contemporary Political Theory, 9, 4 (2010), 458–76; David Runciman, Pluralism and the Personality of the State (Cambridge: Cambridge University Press, 2005); Laborde, Pluralist Thought and the State in Britain and France.

19 Mark Bevir, ‘A History of Modern Pluralism’, in Mark Bevir, ed., Modern Pluralism. Anglo-American Debates Since 1880 (Cambridge: Cambridge University Press, 2012), 2.

20 Runciman, Pluralism and the Personality of the State, 34–63 and 89–149.

21 De Maeztu was introduced to Orage and Penty by Salvador de Madariaga, a former Spanish diplomat, and was particularly influenced by T.E. Hulme, one of the most original conservative thinkers of the Edwardian era and a contributor to The New Age. On de Maeztu, see Pedro Carlos Gonzalez Cuevas, Maeztu: Biografía de un Nacionalista Español (Madrid: Marcial Pons, 2003). On Hulme, see Leslie Susser, ‘Right Wing Over Britain: T.E. Hulme and the Intellectual Rebellion Against Democracy’, in Zeev Sternhell, ed., The Intellectual Revolt Against Liberal Democracy, 1870–1945 (Jerusalem: The Israel Academy of Sciences and Humanities, 1996), 356–76.

22 Internal disagreements eventually led to the disintegration of the NGL. See Stears, ‘Guild Socialism and Ideological Diversity on the British Left’.

23 Villis, Reaction and the Avant-Garde, 69.

24 Taylor, Orage and the New Age, 99–124.

25 See Jay P. Corrin, Catholic Intellectuals and the Challenge of Democracy (Notre Dame: University of Notre Dame Press, 2002).

26 Villis, British Catholics and Fascism, 93.

27 See Oswald Mosley, My Life (London: Nelson, 1968), 173.

28 Arthur J. Penty, The Restoration of the Guild System (London: Swan Sonneschein and Co., 1906).

29 In 1891, Pope Leo XIII fixed the Catholic corporatist principles in the encyclical Rerum Novarum. The text was spread in Britain by Cardinal Manning and his disciples. Among them were Hilaire Belloc and G. K. Chesterton, both of them members of the Christian Socialist League. Another member of the League was John N. Figgis. See Corrin, Catholic Intellectuals and the Challenge of Democracy, 56–8.

30 Ibid., 64.

31 Orage's political ideas were highly influenced by Nietzsche and Sorel, whose work was translated into English by Hulme. See Alfred R. Orage, Friederich Nietzsche. The Dyonysian Spirit of the Age (London: T.N. Foulis, 1906) and Henry Mead, T.E. Hulme and the Ideological Politics of Early Modernism (London: Bloomsbury, 2017), 183–227.

32 Alfred Orage, ‘Notes of the Week’, The New Age, 5, 21, 16 Sept. 1909, 374.

34 Orage, ‘Notes of the Week’, The New Age, 7, 3, 19 May 1910, 50.

35 G.D.H. Cole, The New Romantic Movement, April 1912, in G.D.H. Cole Papers, ‘Seminar Papers’, B2/17/1.2, Nuffield College Archives (NCA), Oxford. The great labour unrest represents a crucial moment in British history, both in terms of industrial relations and political thought. In this sense, Maier's statement that corporatism remained structurally underdeveloped in interwar Britain because the workers’ movement did not pose serious collective threats needs to be revaluated. If we extend our perspective and take into consideration the pre-war years, in fact, the 1911–14 labour revolt seems to fulfil the role that in the rest of Europe was played by the post-war revolutionary movements of 1919–21 in bringing the corporatist approach to the forefront. See Charles S. Maier, ‘Preconditions for Corporatism’, in John H. Goldthorpe, ed., Order and Conflict in Contemporary Capitalism. Studies in the Political Economy of Western European Nations (Oxford: Clarendon Press, 1984), 46–7. On the great labour unrest and political thought see James Thompson, ‘The Great Labour Unrest and Political Thought in Britain’, Labour History Review, 79, 1 (2014), 37–54.

36 G.D.H. Cole, The World of Labour, 2nd edn (London: G. Bell & Sons, 1917), 26.

37 Laborde, Pluralist Thought and the State in Britain and France, 70.

38 G.D.H. Cole, Means and Ends. A Paper for Socialists, April 1912, in G.D.H. Cole Papers, ‘Seminar Papers’, B2/16/1.2, NCA, Oxford.

39 This led Cole to express strong reservations regarding the centralised and bureaucratic models of the Fabian Society and, later, of the Soviet Union. See Laborde, Pluralist Thought and State in Britain and France, 70–2, and Holthaus, Pluralist Democracy in International Relations, 124–8.

40 G.D.H. Cole, ‘National Guilds and the Balance of Power’, The New Age, 20, 3, 16 Nov. 1916, 58.

41 Léon Duguit, Le droit social, le droit individuel et la transformation de l’État (Paris: Alcan, 1908), 40.

42 Santi Romano, Lo stato moderno e la sua crisi (Pisa: Tipografia Vannucchi, 1909).

43 See, for instance, Léon Duguit, ‘L’élection des Sénateurs’, Revue politique et parlementaire, 11, 1895, 463 and ‘La représentation syndicale au Parlement’, Revue Politique et parlementaire, 3, 1911, 28–45. For similar proposals see also one of Duguit's main reference models, Emile Durkheim, De la division du travail (Paris: Alcan, 1893). See also Laborde, Pluralist Thought and the State in Britain and France, 101–24, and Black, Guilds and Civil Society, 220–36.

44 See Filipe Ribeiro de Meneses, União Sagrada e sidonismo. Portugal em guerra, 1916–18 (Lisbon: Edições Cosmos, 2000) and Armando Malheiro da Silva, Sidónio e sidonismo, vol. II. História de um caso político (Coimbra: Imprensa da Universidade de Coimbra, 2006).

45 On the ILO see the classic Antony Alcock, History of the International Labour Organization (London: Palgrave, 1971) and more recently Daniel Maul, The International Labour Organization: 100 Years of Global Social Policy (Berlin: De Gruiter, 2019). Specifically, on tripartism see Richard Croucher and Geoffrey Wood, ‘Tripartism in Comparative and Historical Perspective’, Business History, 57, 3 (2015), 347–57.

46 See Alceste De Ambris, La Costituzione di Fiume: commento illustrato di Alceste De Ambris (Fiume: Tipografia La Vedetta d'Italia, 1920).

47 G.D.H. Cole, ‘Conflicting Social Obligations’, Proceedings of the Aristotelian Society, 15 (1914–15), 152.

48 Ibid., 153.

49 Cole, ‘Conflicting Social Obligations’, 159.

50 Ibid., 154.

51 G.D.H. Cole, The Social Theory (London: Methuen & Co., 1920), 106.

52 See, for instance, Carpenter, G.D.H. Cole. An Intellectual Biography; Wright, G.D.H. Cole and Socialist Democracy; Bob Holton, British Syndicalism 1900–14 (London: Pluto Press, 1976).

53 Stears, Guild Socialism, 40–1.

54 Villis, Reaction and the Avant-Garde, 55. Catholic intellectuals and reviews were also a channel through which European corporatist Catholic principles penetrated Britain during the first two decades of the twentieth century.

55 Ritschel, The Politics of Planning, 14.

56 Stears, Guild Socialism and the Ideological Diversity on the British Left, 289.

57 Davenport-Hines, Dudley Docker, 2.

59 See Davenport-Hines, Dudley Docker, 67–83.

60 ‘Successful Inaugural Meeting at Tipton. Mr. Dudley Docker and the Claims of the Movement’, The Midland Advertiser, 18 Mar. 1911, 5.

61 ‘A National Trade Policy. Mr. Dudley Docker's Views’, The Midland Advertiser, 26 Feb. 1916, 3.

63 ‘A National Trade Policy’, 3.

64 ‘Mr. Dudley Docker and Business Government’, The Midland Advertiser, 26 Feb. 1916, 3.

65 ‘Mr. Dudley Docker Striking Speech’, The Midland Advertiser, 29 May 1915, 4.

66 ‘A National Trade Policy’, 3.

67 ‘Trade After War – Mr. Dudley and the New Organisation’, The Midland Advertiser, 20 May 1916, 3.

68 ‘The Metropolitan Carriage Wagon and Finance Co. Mr. Dudley Docker's Speech at the Annual Meeting Full Report’, The Midland Advertiser, 3 Jun. 1916, 4.

69 Ibid., 4.

70 Ibid., 3.

71 ‘A National Trade Policy’, 3.

72 ‘Reconstruction After the War. Report of the Committee Appointed to Consider the General Principles Affecting Industrial and Commercial Efficiency’, 20 Nov. 1917, in Federation of British Industries Archive, Publications, MSS. 200/F/4/32/2, Modern Record Centre (MRC), Warwick.

73 ‘The Control of Industry. Nationalisation and Kindred Problems’, 30 Jul. 1919, in Records of the Cabinet Office, CAB/24/86/38, The Federation of British Industries, in Public Record Office, London.

74 ‘Reconstruction After the War’, 3.

75 ‘The Control of Industry’, 2.

76 On the issue of decentralising the state, the FBI evaluated the positions of guild socialism quite positively. See ‘Reconstruction After the War’, 4.

77 Ibid., 3.

78 Ibid., 4.

79 ‘The Control of Industry’, 4.

80 Walther Rathenau, The New Economy (New York: Harcourt, 1921), 77.

81 Ibid., 32.

82 See the following works: Walther Rathenau, Die neue Wirtschaft (Berlin, Fischer, 1918); Walther Rathenau, Der neue Staat (Berlin: Fischer, 1919); Walther Rathenau, Die neue Gesellschaft (Berlin, Fischer, 1919). The trilogy was widely known in Europe through its translation into several languages. In Britain, Die neue Gesellschaft was translated by Arthur Windham and published in 1921 with the title of The New Economy. On Rathenau see Pasetti, L'Europa corporativa, 31–40; Harry Kessler, Walther Rathenau: His Life and Work (New York: Harcourt, 1930); Gerald D. Feldman, The Great Disorder. Politics, Economics, and Society in the German Inflation, 1914–24 (Oxford: Oxford University Press, 1997) and Shulamit Volkov, Walther Rathenau: Weimar's Fallen Statesman (New Haven: Yale University Press, 2012).

83 Blank, Industry and Government in Britain, 14.

84 Charles S. Maier, ‘“Fictitious Bonds . . . of Wealth and Law”: On the Theory and Practice of Interest Representation’, in Suzanne Berger, ed., Organizing Interests in Western Europe: Pluralism, Corporatism and the Transformation of Politics (Cambridge: Cambridge University Press, 1981), 27–62. Marcus Wallenberg and Walter Rathenau, especially, represented important sources for Docker's plan. See Davenport-Hines, Dudley Docker, 105.

85 Dintenfass, ‘The Politics of Producers’ Co-operation’; Stitt, Joint Industrial Councils.

86 Middlemas, Politics in Industrial Society.

87 Blank, Government and Industry in Britain.

88 Davenport-Hines, Dudley Docker, 117.

89 See especially Green, Ideologies of Conservatism, 157–91.

90 Robert Boothby et al., Industry and the State: A Conservative View (London: Macmillan, 1927).

91 Harold Macmillan, The Winds of Change 1914–39 (London: Harper & Row, 1966), 13.

92 Among the models studied by Macmillan was the Italian syndicalist law of 1926. Macmillan positively underlined the decision of the fascist government to include economic organisations in the decision-making process, although he condemned the absence of political freedom. The document is undated, but it was probably written during the second half of 1926. See ‘The Settlement of Labour’, undated, in Macmillan Papers, General Correspondence, MS. Macmillan dep. 359, Bodleian Library Special Collection (BLSC), Oxford.

93 Boothby et al., Industry and the State, 20.

94 Ibid., 137–8.

95 Ibid., 138.

96 Ibid., 219–20.

97 Ibid, 138.

99 Ibid, 180.

100 The group was established after the publication of a national plan signed by Gerald Barry and Edward Nicolson in The Week-End Review in Feb. 1931. See Edward M. Nicholson, ‘A National Plan for Great Britain’, The Week-End Review, 3, suppl. 13 Feb. 1931.

101 See Ritschel, The Politics of Planning, 50–97 and 144–231.

102 Eustace Percy, Government in Transition (London: Methuen and Company, 1934), 120.

103 Leopold S. Amery, The Forward View (London: Geoffrey Bles, 1935), 137.

104 A. E. Blake, Planning in the USSR, Nov. 1931, in British Library of Political and Economic Science Archive, Policy Studies Institute, PEP-PSI/13, box 10, Technique of Plan Group. For similar commentaries see also PEP Ten Plan – 1st Interim Report on Foreign Planning. Supplement Notes on Planning in Italy, 8 Dec. 1931, in PEP-PSI/13, Technique of Plan Group (1931–39), b. 12; and ‘Is Fascist Italy a Planned Society?’, in Planning, n. 21, 27 Feb. 1934, 14–5.

105 Most important is Harold Macmillan, Reconstruction: A Plea for National Unity (London: Macmillan, 1933).

106 Industry and the State in 1932, 10 Mar. 1932, in Macmillan Papers, I.2, ‘Books and Pamphlets Written by Macmillan (1926–86)’, MS. Macmillan dep. c. 982, BLSC, Oxford.

107 Ibid.

108 Henry Mond, Modern Money: A Treatise on the Reform of the Theory and Practice of Political Economy (London: Martin Secker, 1932).

109 See The Industrial Reorganisation League. What It Stands For, 3 Oct. 1934, in Macmillan Papers, D.2 ‘The Industrial Reorganisation League, 1934–37’, Ms. Macmillan dep. c. 372b+c, BLSC, Oxford.

110 Ritschel, The Politics of Planning, 183–231.

111 Parliamentary Archives, HC/Deb, vol. 300, 3 Apr. 1935, cc. 429 and 424.

112 Ritschel, ‘A Corporatist Economy in Britain?’, 50.

113 Ritschel, The Politics of Planning, 193.

114 Green, Ideologies of Conservatism 158–9.

115 Carpenter, ‘Corporatism in Britain’, 14.

116 Green, Ideologies of Conservatism, 162.

117 Ritschel, The Politics of Planning, 255–8.

118 Rosas and Garrido, eds., Corporativismo, Fascismo, Estado Novo; Cassese, Lo Stato fascista; Gagliardi, Il corporativismo fascista; Stolzi, L'ordine corporativo; Ploumidis, Spyridon, ‘Corporatist Ideas in Inter-War Greece: From Theory to Practice (1922–1940)’, European History Quarterly, 44, 1 (2014), 5579CrossRefGoogle Scholar; Garcia, Francisco Bernal, El sindicalismo vertical. Burocracia, control laboral y representación de intereses en la España franquista, 1936–51 (Madrid: Centro de Estùdos Políticos y Constitucionales, 2010)Google Scholar; Parla, Taha and Davison, Andrew, Corporatist Ideology in Kemalist Turkey. Progress or Order? (Syracuse: Syracuse University Press, 2004)Google Scholar.

119 Pinto, Latin America and Dictatorship in the Era of Fascism; Pinto, ed., Corporatism and Fascism; Musiedlak, ed., Le corporatisme dans l'aire latine; Dard, ed., Le corporatisme dans l'aire francophone; Solari, Stefano, ‘The Corporative Third Way in Social Catholicism (1830 to 1918)’, European Journal of the History of Economic Thought, 17, 1 (2010), 87113CrossRefGoogle Scholar; Wiarda, Howard J., Authoritarianism and Corporatism in Latin America – Revisited (Gainesville: University Press of Florida, 2004)Google Scholar; Francisco C. Palomanes Martinho and António Costa Pinto, eds., O corporativismo em português. Estado, política e sociedade no Salazarismo e no Varguismo (Lisbon: Imprensa de Ciências Sociais, 2007); Aldo Mazzacane, Alessandro Somma and Michael Stolleis, eds., Korporativismus in den Südeuropäischen Diktaturen (Frankfurt am Main: Klosterman, 2006).

120 Pasetti, L'Europa corporativa; Pinto and Finchelstein, eds., Authoritarianism and Corporatism in Europe and Latin America; and Les sciences sociales et la corporation (1850–1945)’, Les Études Sociales, 1–2, 157–8 (2013).

121 Carpenter, ‘Corporatism in Britain 1930–40’; Ritschel, ‘A Corporatist Economy in Britain?’; Green, Ideologies of Conservatism.

122 Maier, ‘Preconditions for Corporatism’; Palla, Marco, Fascismo e stato corporativo. Un'inchiesta della diplomazia britannica (Milan: Franco Angeli, 1991)Google Scholar.

123 See specifically Pasetti, L'Europa corporativa and ‘Les sciences sociales et la corporation (1850–1945)’.

124 Panitch, Leo, ‘The Development of Corporatism in Liberal Democracies’, Comparative Political Studies, 10, 1 (1977), 629CrossRefGoogle Scholar.

125 Harris, Jose, ‘Political Thought and the Welfare State 1870–1940: An Intellectual Framework for British Social Policy’, Past and Present, 135, 1 (1992), 123CrossRefGoogle Scholar. The literature on British idealism is extensive. See in particular Green, Ideologies of Conservatism, 42–71; Otter, Sandra Den, British Idealism and Social Explanation. A Study in Late Victorian Thought (Oxford: Oxford University Press, 1996)CrossRefGoogle Scholar; and Nicholson, Peter P., The Political Philosophy of the British Idealists. Selected Studies (Cambridge: Cambridge University Press, 1990)Google Scholar.

126 Before the war, both Cole and Macmillan studied at Balliol College Oxford, the stronghold of British Idealism, and were profoundly influenced by Alexander D. Lindsay. See W.H. Greenleaf, The British Political Tradition. The Ideological Heritage, vol. II (London: Routledge, 2003), 245–54 and Harris, ‘Political Thought and the Welfare State’.

127 Albert V. Dicey, The Growth of Collectivism, in Dicey, Lectures on the Relation between Law and Public Opinion in England during the Nineteenth Century (London: Macmillan, 1917), 160.

128 G.D.H. Cole, The British Labour Movement. Retrospect and Prospect, in Noel Thompson, Introduction, in G.D.H. Cole, Early Pamphlets and Assessment (New York: Routledge, 2011), 1.

129 Macmillan, Winds of Change, 51.

130 See Davenport-Hines, Dudley Docker, 73–4 and Green, Ideologies of Conservatism, 72–113. On the ease with which pre-1914 traditions of efficiency and technocratic managerialism were capable of being recast in a corporatist mould see Searle, Geoffrey, The Quest for National Efficiency. A Study in British Politics and Political Thought, 1899–1914 (London: Blackwell, 1971)Google Scholar and Webber, G. C., The Ideology of the British Right, 1918–39 (London: Croom Helm, 1986)Google Scholar.

131 See again Schmitter, ‘Still the Century of Corporatism’, 87–8, Williamson, Varieties of Corporatism, Wiarda, Corporatism and Comparative Politics, and most recently Pinto, Corporatism and Fascism and Pasetti, L'Europa corporativa.

132 See Black, Anthony, Guilds and Civil Society in European Political Thought from the Twelfth Century to the Present (London: Cornell University Press, 1984)Google Scholar.

133 Maier, ‘Preconditions for Corporatism’, 43–5.

134 This was also the case for John M. Keynes, although the relations between Keynesianism and corporatism are controversial. For different positions see Schmitter, ‘Still the Century of Corporatism’; António Almodovar and José Luis Cardoso, ‘Corporatism and the Economic Role of the Government’, History of Political Economy, 37, suppl. (2005), 333–54; Santomassimo, Gianpasquale, La terza via fascista. Il mito del corporativismo (Rome: Carocci, 2006)Google Scholar; and Pasetti, L'Europa corporativa. Keynes's clearest text on the importance of intermediate quasi-corporatist, semi-public bodies is The End of Laissez-Faire, now in John M. Keynes, ed., Essays in Persuasion (London: Palgrave, 2010), 272–94.

135 Walter Bagehot, ‘Parliamentary Reform (1859)’, in Bagehot, Essays on Parliamentary Reform (London: K. Paul & Trench, 1883), 104.

136 Maier, ‘Preconditions for Corporatism’.

137 Macmillan, Boothby and Cole would later join the People's Front, established in 1936 specifically against fascism. See Rogan, The Moral Economists, 113–14.