Albert O. Hirschman
Encyclopedia
Albert Otto Hirschman is an influential economist
who has authored several books on political economy
and political ideology. His first major contribution was in the area of development economics
. Here he emphasized the need for unbalanced growth. Because developing countries are short of decision making skills, disequilibria to stimulate these and help mobilize resources should be encouraged. Key to this was encouraging industries with a large number of linkages to other firms.
His later work was in political economy and there he advanced two simple but intellectually powerful schemata. The first describes the three basic possible responses to decline
in firms or polities: Exit, Voice, and Loyalty
. The second describes the basic arguments made by conservative
s: perversity, futility and jeopardy, in The Rhetoric of Reaction
.
. After he had started studying in 1932 at Friedrich-Wilhelms-Universität
, he was educated at the Sorbonne
, the London School of Economics
and the University of Trieste
, from which he received his doctorate in economics in 1938.
When war broke out in Europe, he worked with Varian Fry
to help many of Europe's leading artists and intellectuals escape from the Nazis. A Rockefeller Fellow at the University of California, Berkeley
(1941–1943), he served in the United States Army
(1943–1946), was appointed Chief of the Western European and British Commonwealth Section of the Federal Reserve Board (1946–1952), served as a financial advisor to the National Planning Board of Colombia (1952–1954) and then became a private economic counselor in Bogotá
(1954–1956).
Following that he held a succession of academic appointments in economics at Yale University
(1956–1958), Columbia University
(1958–1964), Harvard University
(1964–1974) and the Institute for Advanced Study
(1974- ).
In 2007, the Social Science Research Council
established an annual prize in honor of Hirschman.
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
who has authored several books on political economy
Political economy
Political economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...
and political ideology. His first major contribution was in the area of development economics
Development economics
Development Economics is a branch of economics which deals with economic aspects of the development process in low-income countries. Its focus is not only on methods of promoting economic growth and structural change but also on improving the potential for the mass of the population, for example,...
. Here he emphasized the need for unbalanced growth. Because developing countries are short of decision making skills, disequilibria to stimulate these and help mobilize resources should be encouraged. Key to this was encouraging industries with a large number of linkages to other firms.
His later work was in political economy and there he advanced two simple but intellectually powerful schemata. The first describes the three basic possible responses to decline
Decline
Decline is a change over time from previously efficient to inefficient organizational functioning, from previously rational to non-rational organizational and individual decision-making, from previously law-abiding to law violating organizational and individual behavior, from previously virtuous to...
in firms or polities: Exit, Voice, and Loyalty
Exit, Voice, and Loyalty
Exit, Voice, and Loyalty is a treatise written by Albert O. Hirschman. The work hinges on a conceptual ultimatum that confronts consumers in the face of deteriorating quality of goods: either “exit” or “voice”....
. The second describes the basic arguments made by conservative
Conservatism
Conservatism is a political and social philosophy that promotes the maintenance of traditional institutions and supports, at the most, minimal and gradual change in society. Some conservatives seek to preserve things as they are, emphasizing stability and continuity, while others oppose modernism...
s: perversity, futility and jeopardy, in The Rhetoric of Reaction
The Rhetoric of Reaction
The Rhetoric of Reaction: Perversity, Futility, Jeopardy is a book by Albert O. Hirschman, which styles the rhetoric of conservativism in opposition to social change as consisting of three narratives: perversity, futility, and jeopardy, and that, further, these narratives are simplistic, flawed,...
.
Life
Hirschman was born in Berlin, the son of Carl and Hedwig Marcuse Hirschmann and brother of Ursula HirschmannUrsula Hirschmann
Ursula Hirschmann was a German anti-fascist activist and an advocate of European federalism....
. After he had started studying in 1932 at Friedrich-Wilhelms-Universität
Humboldt University of Berlin
The Humboldt University of Berlin is Berlin's oldest university, founded in 1810 as the University of Berlin by the liberal Prussian educational reformer and linguist Wilhelm von Humboldt, whose university model has strongly influenced other European and Western universities...
, he was educated at the Sorbonne
University of Paris
The University of Paris was a university located in Paris, France and one of the earliest to be established in Europe. It was founded in the mid 12th century, and officially recognized as a university probably between 1160 and 1250...
, the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
and the University of Trieste
University of Trieste
The University of Trieste is a medium-sized university in Trieste in the Friuli-Venezia Giulia region of Italy. The university consists of 12 faculties, boasts a wide and almost complete range of university courses and currently has about 23,000 students enrolled and 1,000 professors...
, from which he received his doctorate in economics in 1938.
When war broke out in Europe, he worked with Varian Fry
Varian Fry
Varian Mackey Fry was an American journalist. Fry ran a rescue network in Vichy France that helped approximately 2,000 to 4,000 anti-Nazi and Jewish refugees to escape Nazi Germany and the Holocaust.-Early life:...
to help many of Europe's leading artists and intellectuals escape from the Nazis. A Rockefeller Fellow at the University of California, Berkeley
University of California, Berkeley
The University of California, Berkeley , is a teaching and research university established in 1868 and located in Berkeley, California, USA...
(1941–1943), he served in the United States Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
(1943–1946), was appointed Chief of the Western European and British Commonwealth Section of the Federal Reserve Board (1946–1952), served as a financial advisor to the National Planning Board of Colombia (1952–1954) and then became a private economic counselor in Bogotá
Bogotá
Bogotá, Distrito Capital , from 1991 to 2000 called Santa Fé de Bogotá, is the capital, and largest city, of Colombia. It is also designated by the national constitution as the capital of the department of Cundinamarca, even though the city of Bogotá now comprises an independent Capital district...
(1954–1956).
Following that he held a succession of academic appointments in economics at Yale University
Yale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
(1956–1958), Columbia University
Columbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
(1958–1964), Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
(1964–1974) and the Institute for Advanced Study
Institute for Advanced Study
The Institute for Advanced Study, located in Princeton, New Jersey, United States, is an independent postgraduate center for theoretical research and intellectual inquiry. It was founded in 1930 by Abraham Flexner...
(1974- ).
In 2007, the Social Science Research Council
Social Science Research Council
The Social Science Research Council is a U.S.-based independent nonprofit organization dedicated to advancing research in the social sciences and related disciplines...
established an annual prize in honor of Hirschman.
Books
- 1945. National Power and the Structure of Foreign Trade 1980 expanded ed., Berkeley : University of California Press
- 1955. Colombia; highlights of a developing economy. Bogotá: Banco de la Republica Press.
- 1958. The Strategy of Economic Development. New Haven, Conn.: Yale University Press. ISBN 0-300-00559-8
- 1961. Latin American issues; essays and comments New York: Twentieth Century Fund.
- 1963. Journeys toward Progress: studies of economic policy-making in Latin America. New York: Twentieth Century Fund
- 1967. Development Projects Observed. Washington, D.C.: The Brookings Institution
- 1970. Exit, Voice, and LoyaltyExit, Voice, and LoyaltyExit, Voice, and Loyalty is a treatise written by Albert O. Hirschman. The work hinges on a conceptual ultimatum that confronts consumers in the face of deteriorating quality of goods: either “exit” or “voice”....
: Responses to Decline in Firms, Organizations, and States. Cambridge, MA: Harvard University Press. ISBN 0-674-27660-4 (paper). - 1971. A bias for hope : essays on development and Latin America. New Haven: Yale University Press.
- 1977. The Passions and the Interests: Political Arguments For Capitalism Before Its Triumph. Princeton, NJ: Princeton University Press. ISBN 0-691-01598-8.
- 1980. National power and the structure of foreign trade. Berkeley: University of California Press.
- 1981. Essays in trespassing: economics to politics and beyond. Cambridge (Eng.); New York: Cambridge University Press.
- 1982. Shifting involvements: private interest and public action. Princeton, N.J.: Princeton University Press.
- 1984. Getting ahead collectively: grassroots experiences in Latin America (with photographs by Mitchell Denburg). New York: Pergamon Press
- 1985. A bias for hope: essays on development and Latin America. Boulder: Westview Press.
- 1986. Rival views of market society and other recent essays. New York: Viking.
- 1991. The Rhetoric of ReactionThe Rhetoric of ReactionThe Rhetoric of Reaction: Perversity, Futility, Jeopardy is a book by Albert O. Hirschman, which styles the rhetoric of conservativism in opposition to social change as consisting of three narratives: perversity, futility, and jeopardy, and that, further, these narratives are simplistic, flawed,...
: Perversity, Futility, Jeopardy. Cambridge, MA: The Belknap Press of Harvard University Press. ISBN 0-674-76867-1 (cloth) and ISBN 0-674-76868-X (paper). - 1995. A propensity to self-subversion. Cambridge, Mass.: Harvard University Press.
- 1998. Crossing boundaries: selected writings. New York: Zone Books; Cambridge, Mass.: Distributed by the MIT Press.
Selected Articles by Hirschman
- "On Measures of Dispersion for a Finite Distribution." Journal of the American Statistical Association 38, no. 223 (September 1943): 346-352.
- "The Commodity Structure of World Trade." The Quarterly Journal of Economics 57, no. 4 (August 1943): 565-595.
- "Devaluation and the Trade Balance: A Note." The Review of Economics and Statistics 31, no. 1 (February 1949): 50-53.
- "Negotiations and the Issues." The Review of Economics and Statistics 33, no. 1 (February 1951): 49-55.
- "Types of Convertibility." The Review of Economics and Statistics 33, no. 1 (February 1951): 60-62.
- "Currency Appreciation as an Anti-Inflationary Device: Further Comment." The Quarterly Journal of Economics 66, no. 1 (February 1952): 117-120.
- "Economic Policy in Underdeveloped Countries." Economic Development and Cultural Change 5, no. 4 (July 1957): 362-370.
- "Investment Policies and 'Dualism' in Underdeveloped Countries." The American Economic Review 47, no. 5 (September 1957): 550-570.
- "Invitation to Theorizing about the Dollar Glut." The Review of Economics and Statistics 42, no. 1 (February 1960): 100-102.
- "The Commodity Structure of World Trade: Reply." The Quarterly Journal of Economics 75, no. 1 (February 1961): 165-166.
- "Models of Reformmongering." The Quarterly Journal of Economics 77, no. 2 (May 1963): 236-257.
- "Obstacles to Development: A Classification and a Quasi-Vanishing Act." Economic Development and Cultural Change 13, no. 4 (July 1965): 385-393.
- "The Political Economy of Import-Substituting Industrialization in Latin America." The Quarterly Journal of Economics 82, no. 1 (February 1968): 1-32.
- "Underdevelopment, Obstacles to the Perception of Change, and Leadership." Daedalus 97, no. 3 (Summer 1968): 925-937.
- "An Alternative Explanation of Contemporary Harriednes." The Quarterly Journal of Economics 87, no. 4 (November 1973): 634-637.
- "Beyond Asymmetry: Critical Notes on Myself as a Young Man and on Some Other Old Friends." International Organization 32, no. 1 (Winter 1978): 45-50.
- "Exit, Voice, and the State." World Politics 31, no. 1 (October 1978): 90-107.
- "'Exit, Voice, and Loyalty': Further Reflections and a Survey of Recent Contributions." The Milbank Memorial Fund Quarterly. Health and Society 58, no. 3 (Summer 1980): 430-453.
- "Rival Interpretations of Market Society: Civilizing, Destructive, or Feeble?." Journal of Economic Literature 20, no. 4 (December 1982): 1463-1484.
- "Against Parsimony: Three Easy Ways of Complicating Some Categories of Economic Discourse." Bulletin of the American Academy of Arts and Sciences 37, no. 8 (May 1984): 11-28.
- "Against Parsimony: Three Easy Ways of Complicating Some Categories of Economic Discourse." American Economic ReviewAmerican Economic ReviewThe American Economic Review is a peer-reviewed academic journal of economics publishing seven issues annually by the American Economic Association. First published in 1911, it is considered one of the most prestigious journals in the field. The current editor-in-chief is Penny Goldberg . The...
72, no. 2 (1984): 89-96 - "University Activities Abroad and Human Rights Violations: Exit, Voice, or Business as Usual." Human Rights Quarterly 6, no. 1 (February 1984): 21-26.
- "The Political Economy of Latin American Development: Seven Exercises in Retrospection." Latin American Research Review 22, no. 3 (1987): 7-36.
- "Exit, Voice, and the Fate of the German Democratic Republic: An Essay in Conceptual History." World Politics 45, no. 2 (January 1993): 173-202.
- "Social Conflicts as Pillars of Democratic Market Society." Political Theory 22, no. 2 (May 1994): 203-218.
Schema Based Articles
- Shu-Yun Ma. "The Exit, Voice, and Struggle to Return of Chinese Political Exiles," Pacific Affairs. Vol. 66, No. 3. (Autumn 1993) pp. 368–385.
- Michael Laver. "Exit, Voice, and Loyalty revisited: The Strategic Production and Consumption of Public and Private Goods," British Journal of Political Science. Vol. 6. (Oct. 1976). pp. 463–482.