Liberal intergovernmentalism

Liberal intergovernmentalism is a political theory developed by Andrew Moravcsik to explain European integration.

Background

The theory is a reaction against intergovernmentalism theory, which argues that

• states will only cooperate if they have similar interests.
• institutions, once created, do not take on a life of their own, and are in fact always subservient to the state.
• European integration must be explained in the context of the Cold War.

Liberal intergovernmentalism, a mix of theories from numerous writers including Putnam, Ruggie and Keohane, argues differently. It uses the various European integration treaties as independent variables, and European polity as the dependent variable. The explanation for European integration is therefore to be found in the factors that created the treaties.

Three-step process

Moravcsik uses a three-step process to define his theory. The first two steps are similar to Putnam's two-level game, while the third employs elements of regime theory.

• Domestic preference formation, also called policy demand. A variety of actors influence the domestic policy process, including social interest groups, the legislature and the executive. Moravscik feels, based on major decisions in the European integration process, that economic interests are most important.
• Interstate bargaining, also called policy supply. Moravcsik argues that agreements at this level are the result of asymmetrical interdependence, in other words, the outcomes of international bargaining between states are determined by the preferences and bargaining power of states. There are three determinants of interstate bargaining power:
  • Unilateral policy alternatives are the threat of non-agreement. This element explains Europe's acquiesence to French demands for the Common Agricultural Policy (CAP).
  • Alternative coalitions are threats of exclusion, that is, a particular party will be left out of the deal. This explains the UK's acceptance of the CAP, as without it, it could not have joined the EC.
  • Compromise and issue linkage, as potential bargains to be struck.
• Supranational institutions, once created in Europe, tend to make cooperation more likely for many reasons, including:
  • Reduction of negotiation transaction costs. Once the procedure for negotiations in the EU had been decided, it became unnecessary to decide on them again. This makes all subsequent negotiations easier and less costly than the first negotiation.
  • More autonomy of national governments from citizens, achieved by adding legitimacy and credibility to common policies.

Criticism

The theory of liberal intergovernmentalism is not without its critics. Contrary to Moravcsik's assertion, it has been argued that European integration is not largely motivated by economic concerns, and instead, that economics and politics cannot be divorced in this context. Furthermore, Moravcsik does not account for public apathy in national preference formation. For example, only 42% of Spaniards voted in the recent campaign regarding the European constitution. Fewer than 11% of Europeans have actually read the constitution (BBC World Service, April 23 2005).