BIPR | The Global New Deal: Lessons and Legacies
The Global New Deal: Lessons and Legacies
March 25, 2021 - 18:30
Kiran Klaus Patel, Ludwig Maximilian University Munich, Germany
For decades, the American "New Deal" of the 1930s has been used as shorthand for massive public spending campaigns in democratic societies, from UN Secretary-General Kofi Annan's call for a "Global New Deal" in 2000 to the EU's implementation of its "Green Deal" and proposals in the US for a "Green New Deal" in the present. Why has the New Deal had such an outsized impact upon our modern public policy discourse, even almost a century after its implementation first began? What led to the success of the New Deal, and what was its impact throughout the 20th and 21st centuries? On March 25th, Professor Mark Gilbert of SAIS Europe hosted Professor Kiran Klaus Patel of Ludwig Maximilian University Munich for a presentation and discussion on the global dimension of the New Deal's creation, evolution, and legacy.
The New Deal, Patel argues, cannot be understood without first perceiving the Great Depression as a dual crisis of capitalist economics and democratic politics. For many Americans, the Great Depression was a challenge to the efficacy of the American social order – people were inundated with images of American deprivation through both media and art (such as Dorothea Lange's photography) even while autocratic and communist orders projected an image of resilience and prosperity through propaganda (and deeply downplaying the desperation of their own situations in the process). Therefore, in trying to restore a sense of American "security" – namely, securing the lifestyles of ordinary Americans against the insecurities of the age, more than against any physical threats – the authors of New Deal policy looked to the world for ideas, drawing inspiration from British public housing projects and Mexican public art programs alike. Accordingly, the New Deal was a hodge-podge of differing and sometimes contradictory plans that ended up unified beneath the intense expansion of federal and state government into the lives of ordinary Americans. In doing so, the New Deal did not focus on international cooperation, but instead on domestic intervention and on insulating America from global forces.
This model of recovery, though not immediately effective in resolving the Great Depression, rapidly shifted American perceptions of the crisis, and gave rise to a national consciousness of, and confidence in, the state's power. By the early 40s, projects like the Tennessee Valley Authority had transformed from catch-up measures to proud signals of the economic potential of the liberal state, while insecurities around the perceived economic strength of the USSR and fascist Italy transformed into confidence in an "American Way," ready to be exported as a global model for prosperity and strength. From this point forward, the state would have an ever-larger role in public life, starting with the implementation of the GI Bill in 1944 and continuing throughout the 20th century.
Today, the specifics of the original 30s New Deal legislation have fallen out of public consciousness, replaced by three broad impressions of the program's spirit: bold, experimental mobilization and action as a balm for economic and political crisis; domestic intervention as the duty of an active state to address systemic problems (something anathema to later neoliberal thought); and, an international exportability fostered by the New Deal policymakers' attempts to spread New Deal policy as a model for global development (even when not viewed as useful within the countries they were attempting to export to, and despite the insulationist impulses of the "real" New Deal: emphatic internationalism only came to dominate Roosevelt's politics once the New deal was over). The New Deal has become more powerful as an idea than as a substantive basis for policy, and its association with American innovation and exceptionalism has come to overshadow its origin as the internationally-inspired invention of modern American society. To reduce it thusly is to both overlook its many failings and to undersell just how profoundly transformative – economically, politically, and psychologically – the New Deal really was.
Since the 1940s, the New Deal has turned into a global icon. The 1930s reform policies under US president Franklin D. Roosevelt quickly became a potent symbol, with politicians and activists around the world regularly calling for some kind of New Deal. The presentation will discuss the New Deal's global afterlife since the 1940s, its various legacies and the lessons we can learn from this key chapter of global history.
KIRAN KLAUS PATEL
Kiran Klaus Patel holds the chair of European history at Ludwig Maximilian University Munich where he also serves as the founding director of Project House Europe, LMU's center for interdisciplinary research on the history of contemporary Europe. Before joining LMU, he held professorships at Maastricht University (2011-2019) and the European University Institute in Florence, Italy (2007-2011), and an assistant professorship at Humboldt University in Berlin (2002-2007). He has been (inter alia) a visiting fellow/professor at the Ecole des Hautes Etudes en Science Sociales in Paris, the Free University of Berlin, Freiburg University, Harvard University, the London School of Economics, Sciences Po in Paris and the University of Oxford. His latest publications include: Projekt Europa: Eine kritische Geschichte (Munich: Beck, 2018) (Engl. Version: Cambridge UP, 2020); The New Deal: A Global History (Princeton: Princeton University Press, 2016) (Italian version: Einaudi, 2018); European Integration and the Atlantic Community in the 1980s (New York: Cambridge University Press, 2013; ed. with Kenneth Weisbrode); and The Historical Foundations of EU Competition Law (Oxford: Oxford University Press, 2013; ed. with Heike Schweitzer).