Interdependence: Myth or Reality?

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Abstract
One of the uncertainties of modern international relations is the degree of interdependence among states. Some theorists have asserted that interdependence is high and/or growing, and others have maintained that it is low and/or declining. Essentially, the debate about interdependence has proceeded in three separate phases, (i) In the aftermath of World War II, technology was heralded as the stimulus to an interrelationship among states: The world was shrinking; technological, military, and economic factors would produce interdependence even among erstwhile enemies. (2) Later this conventional wisdom was challenged by Karl Deutsch and his associates, who purported to show that various economic indicators of external reference were declining. International transactions were lessening relative to intranational transactions. More and more, citizens were turning to the nation-state for the satisfaction of their needs, and national economies were taking precedence over the previous international economy of the nineteenth century. This theme has recently been powerfully reinforced by Kenneth Waltz. (3) In reaction to the claims of the Deutsch group, which initially predicted stalemate in European unification efforts and a greater autarchy for industrial states, new presentations of the argument in favor of interdependence have been made. According to this view, interdependence among states is certainly increasing. A symposium on the international corporation partly reinforces Deutsch's view, while one on transnational processes argues against it. The resultant of these theoretical vectors remains uncertain. In this essay we hope to offer new data and to provide a modest reconciliation of the contending claims, drawing a trial balance between them.