State Building Through Partnership: Delegation, Public-Private Partnerships, and the Political Development of American Imperialism, 1898–1916

Abstract

In the first decades of the twentieth century, the United States transformed itself from a commercial republic into a major international actor and acquired its first overseas colonies and dependencies. This article investigates the role of public-private partnerships between American state officials and American financiers in the management and expansion of American empire. Confronted with tepid support from Congress for further imperial expansion and development, colonial bureaucrats looked to investment bankers to accomplish goals for which they lacked the financial capacity and political support to achieve independently. These partnerships were soon formalized as “Dollar Diplomacy,” an arrangement that would govern America's imperial strategy in the Caribbean. This article highlights two theoretical processes: (1) the downstream effects of congressional delegation decisions and their role in motivating institutional adaptations, and (2) the formation of public-private partnerships as an alternative means of state development, and the unique pitfalls of this approach. To illustrate these mechanisms, this article presents historical narratives, based largely on archival research, on the emergence of this Dollar Diplomacy partnership in the formal American colonies, the spread of this system of imperialism to the Caribbean, and its partial collapse during the early Wilson administration.