The illiberal trading state

Liberal systemic theory is built on the assumption that the system’s dominant configuration is a Kantian confederation of major powers. In addition to being a democratic cluster, the liberal core is also a capitalist club. This article pushes systemic and socialization theory forward by introducing the mechanism of economic competition as an important driver of socialization. The article develops a theory of system-level competition, arguing that it is a distinct and co-equal mechanism of socialization to the established mechanisms of persuasion, inducement, and coercion. The article proposes a three-staged model of socialization that explains how prominent rising powers such as Turkey, India, Brazil, and China are being socialized into the liberal system. At the first phase, competitive pressure, outsiders are led to orient themselves toward the core out of a fear of falling behind and a desire to access network benefits. At the second phase, rushing, outsiders behave in pro-norm ways and make significant concessions in order to gain inclusion in the core’s institutional complex. At the third phase, internalization, external norms become embedded in domestic legal institutional structures and a robust pro-norm domestic coalition emerges. The article uses the case of China to illustrate the model and lend it some initial empirical support in one hard case.