Sir James Steuart: International Relations

Abstract

historians have generally placed Sir James Steuart within the broad 'kinship' of mercantilism. From many points of view this evaluation of the Principles 1 seems justified in that it exhibits an interest in areas of economic analysis and policy which we have come to associate with the mercantilist. Since Steuart was widely read in this literature it would be idle to pretend that he was not influenced by it. It seems likely, however, that while Steuart's interest in these areas of analysis and policy particularly with respect to international trade was prompted by this literature, the emphasis which they receive finds its explanation elsewhere; in the Esprit des Lois and in a theory of economic evolution which was widely supported in contemporary Scotland. Montesquieu's comparative static approach to the study of society encouraged, in Scotland, the development of a theory of social dynamics which rested on a foundation of economic determinism.2 That is, the whole process of change in social and political organization was explained in terms of a theory of economic evolution. It is the latter with which we shall be concerned, and here the theory falls into two parts: one involving an analysis of the process of change in economic organization; the other, an analysis of economic development within a given institutional framework, i.e. the exchange economy. Steuart followed this line of thinking closely, and produced an analysis of the natural progress of society and wealth which does not differ materially from that of Adam Smith.3 Except that, having stated the theory of development he expanded its basis to include the possibility that the process of growth