Hirschman - Exit Voice Loyalty

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Exit, Voice, and the StateAuthor(s): Albert O. HirschmanSource: World Politics, Vol. 31, No. 1 (Oct., 1978), pp. 90-107Published by: Cambridge University PressStable URL: http://www.jstor.org/stable/2009968

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EXIT, VOICE, AND THE STATE

ByALBERT 0. HIRSCHMAN*

T HERE are womain ypesf activisteactionso discontentithorganizationsowhichonebelongs rwithwhichonedoesbusi-

ness:either o voiceone'scomplaints, hile continuings a memberor customer,n the hopeof improvingmatters; r to exit from heorganization,o takeone'sbusiness lsewhere.xit,Voice, nd Loyalty'was builton thisdichotomy.

One ofmymain contentions as thateconomists, ith their m-phasison thevirtues f competitioni.e., exit),had disregardedhe

possible ontributionsfvoice ustas political cientists,ith heirn-terestn political articipationnd protest,ad neglectedhepossibleroleofexit n theanalysis fpoliticalbehavior. he book,however,gavemore ttentiono theformeroint nd dealtonlybriefly ith hepolitical cientist'srincipal bject f study: hestate. In thepresentpaper, shallattempt more xtensiveurvey.he importancefexitin relation o the states the common heme f thediverse ituations,

ranging rom he statelessocieties f tropicalAfrica o the modernsmallwelfaretate,hat willexplore.

I. EXIT, RousSEAU'sAVAGE, NDSTATELESS OCIETIES

Does theexit-voice odelhave somethingseful o contributeo theanalysis f thestate? t does, n theopinion fJean-Jacquesousseau.

* This paperwas originally ritten or symposium eld in June 977 at the Uni-versityf Uppsala, weden, n theoccasion f the

5oo-yearubilee f thefoundationf

theUniversity.t is reproducederewith omechanges. he author s gratefulo UlfHimmelstrandhoorganized heUppsala ymposium,nd to Karen Blu andCliffordGeertz ordiscussionnd criticalomments.

I Hirschman,xit,Voice, ndLoyalty: esponseso Decline nFirms,Organizations,and States Cambridge:HarvardUniversityress 970).

2 Primarilyn connection ith the issue of resignationf officials ho are in dis-agreement ithpublicpolicies see chaps.7 and 8). I havetouched n emigrationnrelation o the state n two subsequent apers: Exit,Voice, and Loyalty: urther e-flectionsnd a Survey fRecent ontributions,"ocialScience nformation,iii (Feb-ruary974), 7-26,and "Political conomy: omeUses of the Exit-VoiceApproach-Discussion," mericanconomicReview, apers ndProceedings,ol. 66 (May I976),

386-89. ecessionist ovementsre broughtnto the exit-voice ramework y SteinRokkan,Dimensionsf State ormationnd Nation-Building: Possible aradigm orResearch n Variationswithin urope," n CharlesTilly, d., The Formation fNa-tionalStates n WesternEurope (Princeton: rinceton niversityress 975), 562-6oo,and by Samuel E. Finer,"State-Building,tateBoundaries nd BorderControl:AnEssay n CertainAspects f theFirstPhase ofState-Buildingn Western urope,Con-sideredn theLightoftheRokkan-Hirschmanodel," ocialSciencenformation,iii(August-October974), 79-i26.

s978 by Princeton niversityress

WorldPolitics 043-8871/78/oioo9o-I8$o.9o/IFor copying nformation,ee contributorage



EXIT, VOICE, AND THE STATE 91

In theDiscourseon the Originand the Foundations f InequalityamongMenhewrote:

When he avage as hadhis dinner e is atpeacewith ll of Nature

andfriends ith veryoneround im.What f a disputerises boutthemeal? n that ase,he willnever ecome nvolvedn a realfightwithout aving irst omparedhedifficultyf winningwith hatoffinding lsewhere hemeansofsubsistence;nd since onsiderationsfpride reofnoconsequencehefights rapidlyettled ythe xchangeof ome isticuffs:hewinnerats,he oseroes o ookforbetteruckelsewhere va chercher ortune) nd everythings at peace gain; butwithmann societyhingsre ltogetherifferent...

Rousseaullowed ere or strictlyimitedmount fnonverbaloice-"someisticuffs"n the nusualase n which heres a fightt all-and xitwasfor im he rincipal ay n which he savage"manifestsnonconformityith thermembersfhisgroup. hiswayofdealingwith issent as thevirtue fminimizingonflict;t also s likelyokeep ny negroup uite mall. or exit o functionnthis eneficialmanner, ousseau's rincipalonditions the absence f "pride"-elsewheree called tamour ropre nd contrastedt with hecom-mendablemour e soi which s concerned ith he satisfactionfbasicphysiologicaleeds. he question hetherhe"savage"wouldbe abletofill hese eeds fter aving xited rom groupwas takenup byRousseaun his Essayonthe Origin f Languagesnd,con-sistentlynough, eceivedresoundinglyffirmativenswer.

... the riginf anguagessnot ue o he irsteeds fmen;twouldbe absurdohold hat romhe ause hat eparates entherehould

derivehenstrumenthat niteshem. here,hen,oesanguagerigi-nate?n themoral eeds,n thepassions.assions ringmen losertogetherhile heneedto stay live obliges hem o fleefrom achother.4

Most eaders f theEssay reof coursenterestednRousseau's e-markableheoryf anguagewhich s broughtnderway ith hesevigorousentences.choose oemphasize erehis view hat reakingawayfrom groups notnecessarilybarto survival,o that xit

becomesfeasibleptionncase fconflict.t swell o rememberhattheEssaywasoriginallyart ftheDiscourse;5 hetwoquoted as-sages redifferentspects f the ame hought. ointlyhey onstitutea theoryf a small, tatelessocietyn which heavailabilityfexit

3Rousseau, euvres completes (Paris: NRF, Pleiade 966), III, 203; emphasisdded.4 SeeRousseau,ssai sur l'origine des langues ... , edition,ntroduction,ndnotes y

Charles orsetBordeaux:Ducros 970), chap. I, 43; emphasisdded.5 ibid., ii (introductionyPorset).



92 WORLD POLITICS

hasthedualfunctionfdefusingonflictnd of ssuringcontinuousprocessf fission-andherebyhecontinuationf theconditionfstatelessness.

Observationf certaino-calledrimitiveocietiesnrecent ecadeshasturnedp a number f situationshat orrespondoRousseau'smodel.Writingn 1944,ClaudeLevi-Straussives hefollowingc-count fpoliticalife mongheNambikuarafCentral razil:

No social tructures weakerndmore ragilehan heNambikuaraband.fthe hief'suthorityppearsoo xacting,fhekeepsoomanywomenor imself,r fhe doesnot atisfactorilyolvehe ood rob-lem ntimesfscarcity,iscontentillveryikelyppear.hen, n-

dividuals,rfamilies,ill eparateromhegroupnd oinanotherband elievedobebetter anaged....Therefore,ambikuaraocialstructureppearsontinuouslynthemove.hebands akehape,heydisorganize,heyncreasend hey anish. ithinfewmonths,ome-times,heiromposition,umbernddistributionannot e recog-nized.6

A similaratternfsocial ndpoliticalehavior,lso from entralBrazil,sreportedyJoan ambergerbout tribe alledKayap6:

Shouldraditionaleadershipail ore-establisharmonyfterdisputehasbrokenut, he ontestantsnd ometimesheirupporters,hichin themost ramaticnstancencludesheentireommunity,ayengagenphysicalombat.ightingfthiskind s institutionalizedamongheKayap6n theformaluel, nowns aben ak "hittingtogether")....whoeveroses naben ak,whethert s a two-personfightr communityrawl, usteave he illage.heKayap6ay hatthevanquishedepartecausehey ave oomuchshame"piaam)toremain

nthe ame illage ith hoseeople ithwhomhey avefought....7

The similarityo Rousseau'sisticuffscenarios remarkable,venthoughheKayap6 eem o be afflictedithmore han trace fpride ndamour ropre.hedisaffectedayapo lsoresemble ous-seau's avagenthat hey implyxitwithoutecessarilynteringrjoiningome therrouphateemsothem obebetter anagedasis the ase or he roup escribedyLevi-Strauss);breakawayroup

ishere pparentlyillingndable ogoitalone.Onturningrom mericaoAfrica,nemeets ithmanymore llus-6Levi-Strauss,"The Socialand Psychologicalspects fChieftainshipn a Primitive

Tribe: The Nambikuara f Northwesternato Grosso" 0944), reprintedn RonaldCohenandJohnMiddleton,ds.,ComparativePolitical Systems: Studies in the Politicsof Pre-Induistrialocieties (GardenCity,N.Y.: NaturalHistory ress Q67), 53-54.

7Bamberger,"Exit and Voice inCentral razil:On thePolitics fFlight n KayapoSociety," n David Maybury-Lewis,d., Dialectical Societies (Cambridge:HarvardUniversityress, orthcoming).




trationsf thephenomenonffissiparousolitics-knowno the n-thropologicaliteraturender uch itless acephalousrstatelesso-cieties,egmentaryineage ystems,issionndfusion,nd the ike.

A largepart f that iteratureealswithwhat nmodern oliticssknown s "secession"atherhan s"emigration."n other ords,hetendencyowardissionrequentlyakes he orm f group etachingitselfrom largernewhile tayingor movingbout,nthe aseofnomadic ribes)n the ame rea s before.heexit onceptould, fcourse, e extendedocover ases f this ort. shall, owever,imitmyselfere osituationsnwhich hysical ovingway f ndividualsorgroupss an essentialharacteristicfthe plitting-uprocess.

Frequent ecourseo exit n this ense ppearso be an importantingredientf statelessnessn a number f Africanocieties.vans-Pritchardays bout heNuer hat anyNuermay eavehistribendsettlena new ribe fwhich etherebyecomes member."8ntheirIntroductionoTribesWithoutulers, iddletonndTaitwrite,Inmuch fCentral frica,or xample,hererepoliticallyncentralizedsocietiesn which . . themainpoliticaltructuresprovided yrela-tions etweenhiefsndvillagersfcognatic in, elatedn variousways o a headmannd free o choose heir illage esidence herethey lease."9 eportingn Bushman ands n SouthAfrica,ornaMarshall oints ut that thepossibilityf choice ndchangeof mem-bers fromone band to another . . allows for adjustment n the sizeofthebandtotherelativecarcityffoodandwater" nd that a newbandcanbe formedtanytime hat ircumstancesermit nd peopledesire oform ne."Frictionn humanrelationss one reason or uch

new bandformation.1The most laborate escriptionf thefissionrocess iageographicalseparations in Turnbull'saccountof Mbuti pygmybands in thetropical ainforestfCentralAfrica.Here fissionshathave ittle o dowith inealrelationshipsrefrequent ccurrences,pecially n the oc-casionwhen a campmoves.

Sites reeven hosen ecause hey ffordreater rivacyetweenhe

variousections,husminimizingny erious isputeshat re nprog-ress. ome nterpersonalostilitiesillpersist,owever,ndit s these8Evans-Pritchard,The Nuer of theSouthernudan," nM. Fortes ndE. E. Evans-

Pritchard,ds.,African olitical ystemsLondon:OxfordUniversityress 940), 279.9JohnMiddletonnd David Tait, eds.,Tribes Without ulers:Studies n African

SegmentaryystemsLondon: Routledge KeganPaul I958), 3. It shouldbe notedthat hebook doesnot deal withthese ocieties;t concentratesn thosehaving seg-mentaryineage ystems,"here xitresemblesecession ather hanemigration.

10Marshall, Kung BushmanBands" i960), reprintedn Cohen and Middleton(fn. ), I7, 34-35.



94 WORLD POLITICS

andnot ineal elationshipshat re reflectedn thefinal ission,henthecampdividesnto numberfindependentamps, r sub-bands,eachgoing tsownway. f thedisputes serious,ne or anotherub-band maygo off o anothererritory,nd seek to join up with hat

band....So themonthlyhange fcamp s anopportunityotonly or dip-lomatic earrangementfthe ayout, inimizingatent ostilities,ut tis alsoan opportunityor mprovinghe conomictrengthf thebandbyeither ddingto it orsubtractingromt.1"

By bringing ogetherhesevarious ituations-which ousseauhitupon bypurededuction-I hopetohave demonstratedhat omeformsof statelessnessre closely ssociatedwith thepossibilitynd regular

practice f exit.But t s bynomeans asy o nterprethenature fthisassociation. he fact hatmymostexplicit xamplesn America ndAfrica omefrom ands ivingnthinly opulated ropical ainforestsorsavannahs uggests hat he availabilityf at leastminimally ertile,unoccupiednaturalresourcesmakesexitpermanentlyttractivendpreventsheemergencefany arger olitical roupingwith tate-likeauthority.uch availability, owever,s nota sufficientondition or

statelessness: ithin lord-peasantr lord-laborerontext, xactly hesame situation as been quiteplausiblynvoked y Nieboer nd othersas favoring he introductionf slavery.12 he presence f "open re-sources"s no doubt mportantnshaping olitical orms; ut,depend-ingonotherystem eterminants,t canlead either o a highly oercivesystemrto onethat acks ny pecializedndpermanentlyonstitutedpolitical uthority. oreover,hese wopolar opposites o notexhausttheuniverse f possibilities:fter ll, Nieboer's open resources"re

not ofarfrom urner's openfrontier."13In any event, do notwish to propoundherean ecological heory

ofstatelessocieties.What nterests e snot omuchthefundamentalreasonforwhichexittakesplace withsuchregularitys the politicaleffectsf institutionalizedxit. One of theseeffectss thenon-emer-genceoflarge, entralized ocietieswithspecialized tate rgans.An-other s the apparent tabilityf the statelessness-cum-exitondition

11Colin M. Turnbull,WaywardServants: The Two Worlds of the AfricanPygmies(London: Eyre& Spottiswoode965), io6. Turnbull ttemptso explain his onstant"flux nd instability"f the Mbuti bandsby their ntagonisticelationship ith thesettled illagerswho,as a result fthis onfusion,re unableto assert helineal andterritorialightsheylaim ver heMbuti.

12H. J.Nieboer, laveryas an IndustrialSystem (The Hague: Nijhoff900); EvseyDomar,"The Causes ofSlavery r Serfdom: Hypothesis,"ournal of Economic His-tory,xxx March 970), I8-32.

13Nieboer nd Frederick ackson urnerwerecontemporaries,ut wereprobablyunaware hat ne wasspeakingf"openresources"s a factoronduciveoslavery ndthe other f the"openfrontier"s conditioningmerican-styleemocracy.




overwide reas ndthroughime. oliticalrrangementshat reun-stable t the evel f ndividualands,with heironstantissionndfusion, avebeen emarkablytable-as houghrozennthis attern

of nstability-whenooked tfrom slightly oremacro oint fview.One reason s that he exitpatternfconflictehavior,nceset,is verydifficulto changeexcept hrough ome outside vent uchasinvasion rexhaustionf the"openresources." nce again,theprac-tice f exit s self-reinforcing.nce this voidancemechanismordeal-ing withdisputesrventing issatisfactionsreadilyvailable, hecon-tribution fvoice-that s of thepoliticalprocess-tosuchmattersslikely o be and to remain imited.14

In accountingor tability,ne wouldwishto knowsomethingboutthefeedback ffect f exiton the organizationhat s being eft:doestheorganization ake noticeof exitsbyits members nd act in con-sequence n such a manner s to remedytsweaknesses nd ineffi-ciencies?Unfortunately,he nthropologicaltudies haveciteddonotsupplymuchmaterialn answer o thisquestion.Whenexitoccurs sa result fdisputes etween he twoparties,t probablyust producessatisfactionortheone thatremains,nd a "goodriddance" eaction.According o some of the descriptions,owever, xit results ot onlyfrom hepushof internal ispute, ut alsofrom he pull of "superiormanagement"f other ands. n such a case, hebandsthat re osingmembersre nore ikely oreact o the ossbyattemptingoimprovetheir wnperformance.nview fthe tabilityfthese ocietieshroughtime, ne may perhaps nfer hatsuch a stabilizing eedback rocessmustbe at work:if exit were alwayscumulative, ith osing bands

never eing ble to recoup heir osses, tendencyoward onsolidationofthe manybands ntoone would have asserted tself.Another x-planationwhythisdoes not occurwould be that here s some sort foptimal ize forbandswithdiseconomiesf scale settingn if this izeisexceeded.)

The exitbehavior haracteristicf the societiesustreviewed, ar-ticularly henexitfrom ne band involvesntryntoanother, bettermanaged"one, s remarkablyimilar owhathasbeencalled"voting

with ne'sfeet." ecause tresemblesheworking fthemarketwherea buyers free o switch rom ne seller oanother,omequarters avecelebrated hismechanism s far more"efficient"hanthe"cumber-some"politicalprocessfortheredress f people'sgrievances r thefulfillmentf their emands.15nfortunately,ecause fdifferencesn

14 This is true ven for o elaborate functions that f the"leopard-skinhief" fthe Nuer nmediatingisputes.ee Evans-Pritchardfn. 8), 29I-95.

15MiltonFriedman, apitalismnd Freedom Chicago: ChicagoUniversityress



96 WORLD POLITICS

incomendwealth,he bilityo votewith ne's eet sunequallyis-tributedn modernocieties.n theUnited tates, here heproblemis compounded ecauseof racediscrimination,nequalityn accessto

exithas had some appalling onsequences,uch as the"ghettoization"and partial uinof ourbigcities.t is possible hat more atisfactoryapproximationf theneo-laissez-faireconomist's oliticaldream sfound n the ocieties f theforest eople nCentralBrazilandCentralAfrica; nhistorical erspective,fcourse,heirs as notbeena perfectsolution ither, ince heyhaveturned ut to be no match or heper-haps less efficient,ut morepowerfulocieties-exitlessnd endowedwith centralizedolitical rganization-thatrose lsewhere.

II. MOVABLEPROPERTYAND ITS EXIT AS A RESTRAINTON THE STATE

The European tate ystemf the 7thand i8th centuriesspreciselythat ort fsocietyn one of tspurest orms. o a considerablextent,theabsolutisttate roseas a result f a laborious nd eventuallyuc-cessful ight or heformationndterritorialnificationfa geographi-cal unit. Particularly n the European Continent, he statewas, as

SamuelFinerhasremarked,obsessed ythedemon fexit," xitbeingtakenhere nthe ense f territorialutonomyrsecession.'6t sironic,then, nd was so sensed y some 8th-centurybservers,hat s soon asone form f exit had been brought nder control, nother aised tshead becauseof the expansion f commerce nd financewhich wasactively romoted y the absolutisttate.With thisexpansion, newform f wealth ssumed ncreasingmportance.t was named movablewealth,n contrast iththeunmovable orm-land and buildings-in whichthe bulk ofassetshad traditionallyeenheld.Montesquieudefinedt as "money,notes, ills of exchange, tocks f companies,ships, ll commoditiesnd merchandise"; e notedthat hisform fwealth ould moveaboutfrom necountryoanother.'7

Whatwasthereactionfthe tate nd ofenlightenedpinion othediscoveryfthisnew form fwealth nd to thepossibilityf its exit?The fears ndhopes roused ytheriseofmovable apital n the 7th

and i8thcenturies ffermany nterestingarallelswithsimilarly on-tradictoryerceptionsausedquite recently y the riseof themulti-national orporation.'8 comparativetudy annot e undertaken ere,

i962), chap. 6; CharlesM. Tiebout, "A Pure Theory of Local Expenditures,"JournalofPolitical Economy,Vol. 64 (October I956), 4i6-24.

16 See Finer fn. ), I 5

17 Montesquieu,Espritdes lois,XX, chap. 23.18 See Hirschman,The Passions and the Interests:Political ArgumentsforCapitalism




but briefurveyfreactionso the arlier henomenonillperhapsbe suggestive.

Initially,herewas a lag in theperceptionf the newform f

wealth,ndparticularlyf itspossiblemportanceorpolitics. hecase fJames arringtonsstriking.e is ustlyamousor is heoryrelatingolitical ormsnd stabilityothe oncentrationnd distribu-tion fproperty.evertheless,ta timewhen hemajormercantilisttractsbout rade nd bullionwere eingwritten,isprincipal ork,Oceana i656), focusedxclusivelyn anded ropertynd tsdistribu-tion sa determinantfpolitics. riticizedn this core y ome fhiscontemporaries,e aterustifiedispositionypointing,ith n elab-

oratemetaphorrawn rom alconry,othe uperiorbilityf Mony"to take o flight:

Tho Richesn general aveWings nd be aptto bate; yet hose nLand are the mosthooded,nd ty'd o thePerch,whereas hose nMonyhave the leasthold,and are the swiftest f flight. . . a Banknever aid an Army; rpayingn Army oonbecame o Bank.Butwhere Princer Nobilityasan EstatenLand, heRevenue here-ofwilldefrayhisCharge,here heirMenareplanted,aveToes thatareRoots,ndArmshat ring orth hat ruits ouplease.'9Herewas an eloquent efensef the modelusedby Harrington.

But hevery flightiness"fmoney hich e stressedor his urposeraised uestionsbout avorabler unfavorableolitical onsequencesthatwere obe expecteds movable ropertyecame substantialro-portionfa country'sotalwealth.

One centuryater debatelong uch ineswas nfull wing.t was

not ver ullyoined: hosewho ooked t thenewphenomenonithhopeor alarm, espectively,sually ealtwithdifferentarietiesfmovableroperty.orexample,ne ofthe trongestenunciationsfthenew orm fwealth as ssuedyDavidHume shefocusednthepublic ebt. n oneofhis ater conservative"ssays,epredictedhat"a grievousespotism ustnfalliblyrevail" ereEngland oallowthe ublic ebt oexpandndefinitely;ecastigatedheholders fthedebt,he stockholders.. whohavenoconnexionsith he tate, hocanenjoy heir evenuenanypart f theglobe nwhich hey husetoreside....1)20

beforets Triumph Princeton: rinceton niversityress 977), 95, and PartTwo,passim.

19 ee "The PrerogativefPopularGovernment,"n James arrington,ceanaandOtherWorks,d. John oland (3d ed.; London: A. Millar 747), 243.

20 Fromessay, Of PublicCredit" n Hume,Writingsn Economics,d. E. Rotwein(Madison:Universityf Wisconsin ress 970), 98-99. or a number f telling 8th-



98 WORLD POLITICS

Exit fthe stockholders,"r"stockjobbers"stheywere lsocalledin a pejorativeein,s here udged s an actof disloyaltynd near-be-trayal, ithoutnyredeemingeatures.utthispassage tandsuite

alone n Hume'swritings;ehad onlypraise or he newforms fmobilewealth eneratedytrade nd industry-as id someof hisfriendsnd contemporaries,uch s Adam Smith ndMontesquieu.Actually,he atter iscoveredroundsor ailing henewlymergingforms fproperty,ot n spite utbecause f their apacityor elf-expatriation.his s a rathernexpectedrgumenthats wortheview-ing n some etail.

Alwaysn the ookoutorwaysnwhich he verweeningower f

the overeignould echecked, ontesquieuawmuch romisentheinventionndexpandingseofthebillofexchange.

... through his means commerce ould elude violence, nd maintainitselfverywhere;or he ichestrader ad only nvisible ealthwhichcouldbe sent verywhereithouteaving ny race....

Since hat ime, he ulers avebeen ompelledo govern ith reaterwisdomhan hey hemselvesight ave ntended; or, wing otheseevents, he great nd sudden rbitraryctions f the sovereignlesgrands oups 'autorite') avebeenproveno be neffectivend .. onlygoodgovernmentrings rosperityto theprince].2'

Thus, he acthat, iththeillof xchange,large ortionfwealthhad becomemobile nd elusive ndwascapable f bothhiding ndexpatriations here elebrateds a restraintn thegrandsoups 'au-toritSf he rincend sa positiveontributionogoodgovernment.22

The new nabilityfpoliticaluthorityo eize he itizens' ealth twill lso trucktherssmaking fundamentalifferenceothewayinwhich overnmentas ikely o be carried n; the rgumentasformulatedn a general ay that s,notustwith egardothe illofexchange) ySirJamesteuart: s private ealth xpands,t"avoids

centuryuotesdenouncinghenewworldofstockjobbersnd finance,ee Isaac Kram-nick,Bolingbrokend His Circle:The Politics f Nostalgia n theAge of Walpole(Cambridge:HarvardUniversityress 968), 47-48, I-76, 220, 246.

21

Montesquieufn. 7), XXI, chap. 0.22 Later n the entury,urgot asedvery imilar opes n the migrationf persons.Commentingn Richard rice'sObservationsn the mportanceftheAmerican evo-lutionhe wrote: The asylumwhich theAmerican eople] opensto theoppressed fall nationsmust onsole heearth. he ease withwhich t will nowbe possible o takeadvantage fthis ituation,nd thus o escapefrom heconsequences f a bad govern-ment,will obligetheEuropeanGovernmentso be justand enlightened."Letter oPriceofMarch 2, i778, in Oeuvres, aris:Delancei8io, IX, 389.) Turgothere rguesabout he tateosing itizens s thought were firmmpelled ytheexit fcustomersto improvetsperformance.he actualpolitical ffectsf emigrationn the sendingcountryndtheir onsiderableiversityreexploredn thenext ection.




[the tatesman's]raspwhenheattemptso seize t.This makeshisgovernmentore omplexndmore ifficultobecarriedn;hemustnow vailhimselff rt ndaddress s wellas of power nd author-

ity.

23

Capital light-theossiblexit fcapitalandofthecapitalists)-wasperceiveds a salutaryestraintnarbitraryovernmentybothMontesquieundSirJamesteuart,hoputforwardeveral armoresanguinepeculationsbout he ikely oliticalffectsfeconomicx-pansion. lthoughdam mith ifferedith hemnthese espects,24hewent long othe xtentf rguinghat hemobilityndelusivenessof"capitaltock"make t mpossibleor axationo be as "vexatious"

as tmighttherwisee:Therere . . two ifferentircumstanceshich enderhe nterestfmoneymuchessproperubjectfdirectaxationhan he ent fland.First,he uantityndvalue f he andwhichnyman ossessesan

never ea secret,ndcan lwayseascertainedith reatxactness.But hewholemountf he apitaltock hich epossessess almostalways secret,nd an carcever e ascertainedith olerablexact-

ness. . . An nquisitionnto veryman's rivateircumstances..would e a sourcef uch ontinualnd ndlessexations nopeoplecouldupport.Secondly,and s a subject hichannoteremoved,hereastock

easily ay. heproprietorf and snecessarilycitizenf he articu-lar ountrynwhich is stateies. heproprietorf tocksproperlycitizenftheworld,nd snotnecessarilyttachedoanyparticularcountry.e wouldbeaptto abandonhe ountryn which e was ex-posed o a vexatiousnquisition,n order o beassessedo a burdensome

tax, nd would emove is tocko some therountryhere ecouldeitherarryn hisbusiness,renjoy isfortune ore t hisease.Byre-movingis tock ewould ut nend o llthe ndustryhichthadmaintainednthe ountryhiche eft.tockultivatesand; tockm-ploysabour. taxwhichendedodrivewaytockromny articularcountry,ouldofar end odry p everyourcefrevenue,oth otheovereignnd o he ociety....Thenations,ccordingly,hohavettemptedo ax he evenueris-

ing romtock,nsteadf nyeverenquisitionf his ind, ave een

obligedocontenthemselvesithome eryoose . estimation.25Itwould lmosteem, hen,sthough verythingere or hebest:

on the nehand, hedangerousxitntheform fsecessionad been23 Steuart,nquiry into the Principles of Political Oeconomy (0767), I, ed. A. S.

SkinnerChicago:Universityf ChicagoPress 966), i8i; emphasisdded.24 Hirschmanfn. 8), I00-II3.

25 Smith, he Wealth fNations,ModernLibraryd., 8oo; see alsopp. 345 and858forrelated assages; mphasis dded.



100 WORLD POLITICS

moreor lesssuccessfullyxorcised ythepowerof the17th- nd i8th-centurytate;on theother, ccording o theconverging estimonyfMontesquieu, ir James teuart, nd Adam Smith, hat power was

curbed y a new andbeneficial arietyf exit hat urfaced s a resultof economic xpansion: he bility f capital nd capitalistso "removetheir tock" r, nmodern erms, o "votewith heir eet" or he bestavailable businesslimate."

It is useful o recallthese arlyperceptions,fonlytomarvel t thedistance ywhichthey reseparated rom ontemporarynes.Todaytheinternational obility f capital s infinitelyreater withinthecapitalist orld) than at the timeof Montesquieu nd Adam Smith.

There arenumerous arietiesfsuchmobility:ransnationalorpora-tionscan move subsidiariesromone country,onsidered nsafe, oanother;morethreateningly,obilityan take the formof interna-tionalbanksrefusingo "rollover" heir oanstoa countryhat s con-sidered obe"outof ine."Still, heprincipalweapon swieldedbythecountry'swn citizens-particularlyf courseby the moreopulentonesamongthem-as they ngage n capitalflightn a massive cale

wheneverhey eelthreatenedydomestic evelopments.Occasionallyhesevarious xitsdo occur, ccording o the 8th-cen-tury cript,n response o thearbitrarynd capricious ctions f thesovereign. uta much ess favorablenterpretationaybe in order:exit fcapital ftenakes lace ncountriesntendingo ntroduceometaxation hatwouldcurb xcessive rivilegesftherichorsome socialreforms esigned o distributehe fruits f economicgrowthmoreequitably. nder hese onditions,apital lightnd its hreatremeant

toparry, ight ff, nd perhapsvetosuchreforms; hatever he out-come, hey re sure omake reformmorecostlynd difficult.t looks,therefore,s though heavailabilityf thekind of exitthatwashailedbyMontesquieund Adam Smithwere oday seriousmenace: tdam-ages thecapabilityf capitalismo reform tself.

Actually,his ituation oesnot affectll countriesqually.Capitalflightsobviouslymuch essofa weapon n the argestndmost ower-fulcountries here heowners fcapital eel hat here s noplaceelsetogo.Hereit canbeexpectedhatvoicewillbe activatedythe mpos-sibilityf exit.Capitalistswill make elaborate ttemptso influencepublicopinion ndpublicpolicy.An ideologyndefense fcapitalismwill arise.At thesametime, oncessionsre likely o be forthcomingwhere eformsf thesystemreobviously eeded nd areessentialothedemonstrationhat hecapitalistysteman itselfvolve nd amel-iorate he problemst creates. urelyon thebasis of the differential




availabilityf xit or apital nd apitalists,nemighthereforexpectthat he argest nd most entralountriesf thecapitalistystemwouldbe,at one andthe ame ime,he deologicalulwarksf the

systemnd tsmost ctive roblem-solvers;hemore eripheraltates,onthe ther and,might e in thegrip f an anticapitalistdeology,andwould t the ame ime xhibitnconscionablextremesfwealthandpoverty.his"prediction,"asedon a mostparismoniousxit-voicemodel,ssurprisinglyorrectn a number frespects.he com-binationf n attitudef standingpfor apitalism"ith ttemptsoremedyhe ystem'sorst vils sexemplifiedybothVictorianng-land ndtheUnited tates f he 0th entury;nmany essdeveloped

countries,nthe ther and,he bsence f ny trongdeologicalup-port or apitalismoexistsatherddlywith xtraordinaryifficultiesfaced ime ndagainbyattemptsteffectiveeform.ere sperhapsa key othe ldpuzzlewhy nticapitalistevolutionsave onsistentlybroken ut ttheperipheryatherhan tthe enterfthe apitalistsystem.

Fortunately,hemodel oesnot xplainverything.nparticular,t

doesnotdeal atisfactorilyith n mportantroup f mall ountries.A few dditionalactors ust hereforee ntroduced.

III. EXIT AS A THREAT TO THE SMALL MODERN STATE

AND SOME DEFENSIVE STRATEGIES

Inthe 8th entury,s has ust eennoted,he otentialxit f apitaland ofthe apitalistsasactivelyiscussedntermsf tsharmfulr

beneficialffectsnthe apital-losingtate.hismanner f ookingtout-migration-soongenialo theexit-voiceramework-almostis-appearednthe 9th entury,hichwitnessedumanmigration,ost-lyfromurope oAmerica,nanunprecedentedcale.Only ecentlyhavetheeconomicndpoliticalffectsfout-migrationn sending(ratherhanreceiving)tatesgainattractedttention,rimarilynconjunctionith he so-calledraindrain, phenomenonhathasmorencommon ith apital lighthanwithmassmigration.

The enormousut-migrationromurope uringhe 9th ndearly20thcenturiesidnot ccasionmuch eflectionbout hefeedbackf-fect n the endingtatesndtheir oliticalystemecause heout-flow idnotprovokenyvisibleoliticalroblemsrdangers.nthecontrary-andhis lsoexplains hy migration,ongprohibitedur-ingthemercantilistnd absolutistras,was so freely ermitted-italleviatednumberfproblems,conomicswellas political.rom



102 WORLD POLITICS

the social nd economic oints fview, he outflowampenedherapid ncreasen populations wellas the concomitantural-urbanmigration,ndin spite f itsmassive roportions,migrationever

reached hepointwheretwasperceivedo nterfereith he ecruit-ment f abor or xpandingomesticndustry.rom he oint fviewofthepoliticalmanagers,ut-migrationadsimilarnd related ene-ficial ffects.eoplewho chose migrationere bviouslyissatisfiedinsomewaywith he ountryndsocietyhey ere eaving.With xitavailables an outlet or hedisaffected,heywere ess ikely o resortto voice: heships arryinghemigrantsontained any ctual rpotentialnarchistsnd socialists,eformersndrevolutionaries.he

inverseelationshipetweenmigrationndthe ocialistote asbeenstatisticallyemonstratedortaly,n a studyor hedecade recedingWorldWarL"26Moreover,ew mmigrantsend obe, t eastnitially,relativelynvociferousembersf society;massmigrationhus e-duced ocial rotestntheEuropean-Americantateystems a wholeand notonly n the ending ountries.

But he ontainmentf ocial rotestasnot he nly oliticalffectofout-migration.hroughouthe

9thenturynduptoWorldWar ,

the ightfsuffragend other ivil ights ere xtendednmany fthevery uropeantates rom hich arge ontingentsfpeopleweredeparting.n otherwords,xit nda certain indofvoice ncreasedhand-in-hand,ven hough,t the ame ime, xit owered hevolumeofanother oremilitantind f voice. hese wodevelopmentsaybe causallyonnected:ecause numberfdisaffectedeoplehad de-parted,tbecameomparativelyafe oopenupthe ystemoa larger

numberfthosewhostayedn. n thismanner,xit-emigrationayhavemade tpossibleor emocratizationnd iberalizationo proceedinseveral uropean ountriesrior o WorldWar without oliticalstabilityeing eriouslymperiled.27

Besides eing ntrinsicallynteresting,hese onnectionsouldcon-tributeothe nderstandingfcontemporaryttemptst democratiza-tion.Might t be said, or xample,hat he arge-scalemigrationfGreek, ortuguese,nd Spanish orkerso France nd Germanyur-

26John S. MacDonald, "AgriculturalOrganization,Migration and Labour Militancyin Rural Italy,"Economic Historic Review, 2d series,xvi (i963-1964), 6I-75.

27 I have looked in vain for any speculation along such lines in the notable mono-graphic studies on European migrations to the United States published as Dislocationand Emigration: The Social Background of American Immigration n D. Fleming andB. Bailyn,eds., Perspectivesn AmericanHistory, VII (Harvard University 974). Pro-fessorBailyntellsme that n his currentwork on I7th- and i8th-centurymigrationtoNorth America considerableattention s being given to the social and political contextof emigrationn thesendingcountry.




ing theprosperouso's and early 0's has made teasier or hese oun-tries onegotiatehe difficultassage o a moredemocratic rder hanwould havebeen hecase otherwise?

In part, his opichas notreceived ttentionecausethe connectionisrather emotendcounterintuitive.hat emigrationf dissentersillstrengthenn authoritarianegimenthe hort un sobvious;notcon-tentwith llowing migration, any uchregimes ave taken tuponthemselvesodeport rban their olitical nemies-that s, theydealtwiththem n thisparticularmannerduring heirmorehumanemo-ments.But the ikelihood hatopening he gatesand permittingut-migrationmayallow a regime o liberalize tself eemsfarfetched-

except o thosewho have taken n advanced oursen exit nd voice.Probably he main reason for the lack of interestn thepolitical

effectsfemigrations that, s explained arlier,hese ffects ad longbeensopositive.We donot nvestigatehatevereems obegoingwellno matter owpoorlywe understandheunderlying rocess.

In recent ears, owever, migrationasnotbeenwhollybenign nits ffectsn themigrant-losingountries.his appliesfirst f all to thebraindrain:the size of the iteraturehathas

grownuparound

thistopic tronglyuggestshat t swidelyviewed s a problem. uteventhei9th-centuryind ofemigrationecamea problemwhen it gavea repeat erformancen the20th, uchas,for nstance,he arge-scaleIrishemigrationo England duringthe postwarperiod.The longdecline fthe rishpopulation,ue to low birth ates nd emigration,hadcometoa stopduringhe25 yearsfollowingndependence1922),which oincidedwith heDepressionndthe SecondWorld War.But

after he war and particularlyn the 5o's, emigration,mostly romruraldistrictsnto urban Britain,urged nce again and reached hehighest evels n a century,n relation o theresident opulation i5permilleper year n i956-i96i.This outflowroused eep concernndbecamean importantublicand political ssuethat ed to a decisiveturnneconomic olicy. ythe ate5o's,theolddescriptionfemigra-tionas a "safety alve" had beenreplacedbytheimageof a countrysufferingromhemophiliawith"bloodrunning ut of tsveins."Theincreasingoncern hat Irelandwasa dying ountry.. ledtocallsforneweconomic olicies, headoption fvarious lansbythedifferentpolitical arties,heappearance f emigrations an issue n a parlia-mentarylection or hefirstime,ndfinallyheunopposed cceptance(in i958) ofa national conomic landesigned odevelop reland ndpreventmigration."" he plan was successfuln attractingoreign

28 NicholasR. Burnett,Exit,Voice and Ireland,936-58," unpub. i977), I5; also



104 WORLD POLITICS

capital nd purringndustrialization,utt s anopen uestionowhatextenthe onsiderablerop nemigrationnthe o'swas duetotheplan's uccessrto thediminishedbsorptiveapacityftheBritish

economyhich tself ecamencreasinglyroubleduringhat eriod.With he rishmmigrantsncounteringsimilarnvironmentndfamiliaranguagen England, rish migrationameto assume n-usuallyarge roportionsnd waseventuallyerceiveds a threatoIreland'sationalxistence.similarituationrosenEastGermany,which nthe 950's experiencedfloodf illegal)emigrationowardWestGermany.esetwith oncernsatherimilarothosef he rish,thegovernmentftheD.D.R. did notbothero ook round orwaysofmakingtselfmore ttractiveo ts itizens:n i96i itsimplyloseditsfrontiersore ffectivelyhan eforeybuildingheBerlinWall.

The reactionsf thetwo countrieshatfelt hreatenedymassemigrationere hus ery ifferent,nparallel osimilarlyifferentreactionsfvarious uropean ountrieso thesudden vailabilityfcheapwheat romNorthAmerica nd Russia n the1870'S.29astGermanydopted primarilyefensivetrategy-comparableo the

impositionfhigherariffsnwheat y rance ndGermanyntheatei9th entury;reland,nthe ther and, ttemptedo meet he hal-lengeofmass xitbychangingheunderlyingonditionshathadresultedn theoutflow-and his "creativeesponse"s similar oDenmark'solicies f griculturalransformation.

Bothreland nd EastGermany,owever,adsomethingn com-mon: newperceptionfexit sa threat.hey eacted ith onsider-abledetermination,sthough heywere ully ersuaded,nlinewith

the hesisfthefirstectionfthis ssay,hat he xistencefthe tateisincompatibleith hevirtuallyostlessvailabilityf exit ndwithresortfcitizenso tasa routineesponseodissatisfaction.

No doubt,hesewo ountriesndtheirxperiencesnthe o'swerespecial athologicalases. utfor hat ery easonheyreof nterestasthey eveal otentialroublepotsnthepresenttateystem. ithcloser ommunication,asy irculationfcapital,ndunprecedentedinternational

obilityfhigh-levelanpower,

tatesreoday xposedto more xitpressureshan verbefore.mallstates reparticularly

vulnerableo these ressures:large ountryanoften atherasily

Burnett'sdoctoraldissertation, Emigrationand Modern Ireland" (School of AdvancedInternational tudies,JohnsHopkins University976).

29See Charles P. Kindleberger,"Group Behavior and InternationalTrade," JournalofPolitical Economy,Vol. 59 (February I951), 30-46; and Peter A. Gourevitch, Inter-national Trade, Domestic Coalitions, and Liberty: The Crisis of I873-96," journal ofInterdisciplinary istory,viii (Autumn I977), 28I-3I3.




accommodaten nflowfcapital r manpowerrom small ountry,while sanoutflowhese esources ay epresentcriticalossfor hesmall ountry.

Whys tthat here avenotbeenmore relandsndEastGermanysin the ast 0years rso? In part, odoubt, ecausentryasbynomeans een otallynregulated."0ut nview fthe onsiderableree-dom fmovementhat asprevailedor apitalndpeople especiallyfor rainedersonnel),t is likely hatmany tates,nd particularlysmall nes, avehiton various evicesndstrategieshrough hichthey aveparriedxcessiveendenciesowardxit. shallbrieflyn-vestigateow uch trategiesight ork.

In thecaseofIreland,heremedyor xit onsistedfimprovedeconomicolicyndconditions;ndeed,ountriesorryingbout xitdo welltosatisfyhebasic conomicspirationsf their itizens,ar-ticularlyfthemoremobilemong hem. utfortunately,ndividualeconomic elfares not heonly riterionn thebasis f which hedifficultnd oftengonizingecisionoexit romne's wncountryismade.

What s needednordero avoid xcessivemigrationndcripplingbrain rain sfor societyoprovidetsmembersith ome attrac-tions"hatwillreinforceheir ormal eluctanceo leave.Besides nadequate upplyf goods vailable or ndividualonsumption,uchattractionsanalsoconsistfwhat sknown o economistss "publicgoods"; hats,goods hat nymember f a societyanenjoy con-sume)withoutherebyeprivingthersftheirnjoymentconsump-tion) f hese oods. country'sowerndprestige,or xample,re

public oodthatmaybe enjoyed yall of tscitizens,ncludinghemostowlyndpowerless.long hese inesthas ately eenpointedoutthat ocialusticemaybe a public ood: ndividuals ayfind tenjoyableo ivena societyherencomeistributionscomparativelyegalitarian."1ther ublicgoods hat ometomind nclude longrecordor ot ecomingnvolvedn nternationalonflictrfor uaran-teeing uman ightsnd democraticiberties.he latter wowouldmake countryttractiveo ts itizens,speciallyn a worldwhere e-

structivearfarerequentlyruptsndwheremany overnmentsabit-ually uppressriticismndmistreatheir oliticalpponents.

30See AristideR. Zolberg, International igration olicies n a ChangingWorldSystem,"o be published n WilliamH. McNeill and Ruth S. Adams,eds., HumanMigrationBloomington:ndianaUniversityress 978).

31 LesterC. Thurow, The IncomeDistributions a Pure PublicGood,"Quarterlyjournal of Economics, Vol. 85 (May I971), 327-36; David Morawetz nd others, In-come Distributionnd Self-Rated appiness: Some EmpiricalEvidence,"EconomicJournal,Vol. 87 (September 977), 5II-22.



106 WORLD POLITICS

Theavailabilityn a countryfany neof hese ublic oods ervesto hold xit tbay ndto ncreaseoyalty.32t ispossibleovisualizestate ystemnwhich,nspite f close ontactndfreemovementf

people ndcapital,xitwouldnever ssume hreateningroportionsbecause ach ountryould upplyts itizens ith differentssort-ment fpublic oods,with mphasisn one area ora cluster)s aspecial ttractionor tsowncitizens.ifferentountriesould then"specialize"n power,wealth, rowth,quity, eacefulness,he ob-servancefhuman ights,ndso on. Suchspecializationould er-tainlyesultna more tableituationhan fperformancefnationswere ated nly long nedimension,uch spercapitaGNP; inthe

latterase,twould ecomeossibleoestablishnunambiguousatingamong ountries,ndexits owardhebest erformersouldmountdangerously.chievementslongthe various imensionsustmen-tionedrenot asilyombinednto unique referencecale rwelfarefunction;t s ikely, owever,hatf country'sitizens ere quippedwith modicumf oyaltyo tart ith, hey ould alue he articularareanwhichheirountryxcels-whateverhatmay e-morehighly

than hat ftheothers. n ethnocentricelfare unctionf this ortmay hereforee a conditionor stable tateystemndermoderncircumstancesfhigh otential obility.

The foregoingpolyphonic"olutionotheproblemsperhapsoobeautifulobe real.Amongtsdifficultiess theobvious ne that hepursuitfpeace y ne ountry ay e ncompatibleith hat fpowerby nother.hen heres the act hat, requently,allgood hings otogether":ne or a very ew ountries aybedoing est, rareper-

ceived odo so,along everalmportantimensionsuch s power,wealth,ducation,ndgeneral pportunity.relatedroblemsthathegemonicountry ay mposetsownpreferencesndwelfareunc-tion ponpublic pinionround heworld. s a result,speciallynaworldwith ntensiveommunicationetworks,itizens fnon-hege-monicountriesould endto ive higher atingothe chievementsof he eadingountryhan othose ftheirwn.

In the ace f uch ifficulties,o smallerountriesave secondineofdefense?s there,nother ords,ome urtherighlyalued ublicgood hat smallerountryanprovideortsmoremobile itizensothat heywillstill hinkwice eforemigrating? remark y theAmericanociologist,enee ox,whohasbeen tudyingelgian ocietyformany ears,s lluminatingnthis egard.xplaininger ong n-volvementith hatountry,he ayshat he riginallyound elgium

32 See Hirschmanfn. ), chap.7, particularly. 78.




temptingecause,mong therhings,hewas ed tobelieve hat asmall ountry.. would esimplerhan large ountryocomprehendin a sociologicalense." ut hat remiseurnedut obetotallyntrue;

manyyearsater heexclaims,if werenowasked oformulatesociologicalypothesisbout herelationshipetween hesizeof acountryndthe omplexityf ts ocial ystem,would e temptedosuggesthatheresan nverseelationshipetweenhe wo; hats, hesmallerhe ountry,hemore omplexts ocial ystem ""3

In conjunctionith heconcern ver xcessivexit, hisremarkraises he questionwhetheromplexityouldperhaps e partofacountry'sttractionor ts itizens,smuch sany ositivechievement

of he reviouslyentionedind. or t sunderstoodomplexitynso-far sthe ountry'sitizensreconcerned;hey nowhowtonavigateexpertly,otonlyn theirountry'sanguage,ut mongts diosyn-cratic ays,ts onflictsndfamiliarrustrations.34hen firstame olive nColombia,xplanationsfferedyColombiansfvariousomepuzzling ituationsould nvariablytartwith he entenceEs queese esunpalsmuy aro" "youmust ealize hat his s a very dd

country").learly,heyook onsiderableleasurenenlighteningeaboutomethingheynderstoodowell.Understoodomplexityaythen e anotherublic ooda societyansupplyo itscitizens,ndthat s perhaps cluetoReneeFox'sparadoxbout mall ountriesbeingmore omplexhanarge nes.With he atter avingo muchgoing or hem,he mallerountriesefendhemselvesgainstxces-sive xit hroughplentifulupplyfunderstoodomplexity;nd,withrespectothis articularsset,heres full ssurancehat youcan't

taketwith ou."33 Fox, "An American ociologistn the Land of BelgianMedicalResearch," n

Phillip . Hammond, d.,Sociologistst Work New York: BasicBooks 964), 349.34 On thedifferenceetween he"native's" iewsof hissocietynd theoutside b-

server's,ee CliffordGeertz,"On the Nature of Anthropologicalnderstanding,"Americancientist,ol. 63 (January-February975), 47-53.

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