Scale, Protectionism and European Integration: The Structural Dynamics of Strategic Control in a Turbulent Field

Cantley, M.F. (1979). Scale, Protectionism and European Integration: The Structural Dynamics of Strategic Control in a Turbulent Field. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-79-042

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Abstract

The first half of the paper introduces concepts useful in the application of O.R. to strategic problems. "Structural dynamics" concerns the lead times for strategic adaptation, the planning horizons implied and the "instrumental" approach to maintaining adaptive capability. "Strategic monitoring" is required for long cycle societal learning and control. Models of the causal texture of the environment have been developed by Emery and Trist, including particularly, the "turbulent field".

These concepts are applied in the second half of the paper to the resolution of two contemporary issues in European integration: economic expansion to maintain employment, and problems of polarization and regional imbalance. The deficiencies of the liberal free trade model are discussed, particularly its neglect of the effect of cumulative dynamic economies of scale. The re-adoption is advocated of national control over aggregate inward trade flow, as a means of resolving the "convicts' dilemma" situation of tightly inter-connected and interdependent national economies. The recommendations are related to neo-functionalist theories of political structure, the intention being not to criticize the concept of the European Communities, but to suggest that more analytic and strategic consideration be given to the location of functional responsibilities -- including those for economic management -- at appropriate level within the system.

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