Marcel van Meerhaeghe
Marcel Alfons Gilbert van Meerhaeghe was a Belgian economist, professor, publicist and columnist.
Marcel van Meerhaeghe was Professor of International Economic Relations at the State University of Ghent.
In his long and distinguished career, Professor van Meerhaeghe gave important contributions to economics and also to the interpretation of economic events. His rare ability to combine theoretical and practical analyses made particularly valuable his scientific works.
Life and career
1939–1987
Initially Marcel van Meerhaeghe thought about a military career. In 1939 he passed the entrance exams for the . After the campaign of 1940 followed about seven months as a prisoner of war in a German camp.At Ghent University van Meerhaeghe obtained a master's degree in Economic Sciences in 1944 and a Masters in Political Science and Sociology, also in 1944. As regards the economics studies he attended the lectures given by Professor Raoul Miry who was the counterpart of Professor Gaston Eyskens of the University of Leuven.
In 1946 he obtained his PhD: Aviation in the traffic economy : the Belgian case in particular.
In 1947 he became part-time lecturer political economy at the and in 1955 part-time lecturer colonial economy at the University of Ghent.
Before becoming Professor of economics and international economics at the University of Ghent in 1957, he worked as economic advisor in the Belgian Ministry of Economic Affairs, as 'faculty advisor' of the NATO Defence College in Paris and as an advisor to the Minister of Foreign Trade.
His interest covered all types of international academic cooperation and face-to-face interaction, which is why in September 1959 he was appointed visiting professor at the Official University of Belgian Kongo and Ruanda-Urundi in Elisabethville for the courses Histoire des doctrines sociales et économiques and Histoire des doctrines économiques. He obtained a visiting professorship at the universities of Amsterdam in 1962 and Constantine in 1975, as well as becoming a visiting fellow at Wolfson College, Cambridge in 1973.
Between 1961 and 1969 he was Vice-President and President of the Prices Commission, an advisory body to the Minister for Economic Affairs.
Between 1962 and 1969 he was co-opted as a member of the , the umbrella institution of the Belgian federal social and economic dialogue.
Since 1971 he was also a member of the board of the Belgian-Luxemburg Exchange Control, chaired by the Governor of the Belgian National Bank, until November 2002 when this institution was dissolved.
Between 1972 and 1980 he was a member of the conseil général of the.
At its editors' request, van Meerhaeghe started a column in the Flemish business magazine Trends in 1975. He also featured as a regular columnist in the newspaper The Standaard between 1988 and 1996.
, since 2017 chairman of the Belgian bank Crelan, was an assistant of Professor van Meerhaeghe at Ghent University.
M. van Meerhaeghe was always steadfast in taking a strictly independent line of argument. By all means he was an individualist – one might say a 'loner' – concurring with the suggestion of A. Einstein that the ideal occupation for the theoretical scientist is that of a lighthouse keeper. Unfortunately, sometimes he was misunderstood by persons driven by ignorance, superficiality and envy towards the well-heeled. An example of a rule of best practice that leads to controversy when publicly stated: «A firm that puts the ethical considerations of other stakeholders such as employees first and business second could undermine the overall welfare of the firm and its shareholders/owners and even its employees».
A significant part of van Meerhaeghe's work belongs to what is commonly labelled as the American theory of public choice. He advocated great concern for a sound use of government means and was favourable towards Taxpayers Associations that facilitate the contacts between the authorities and the public opinion.
Emeritus
After his Belgian retirement on October 1, 1986 van Meerhaeghe was successively visiting professor in international economics and European integration at the Centre of International Studies of the Tilburg University, at the London School of Economics, London University, at the university of Torino and during the academic years 1993–95 at the university of Rome.In 1987-1988 he was 'Special Adviser to the Commission of the European Communities', more particularly to Mr Willy De Clercq, former Belgian Vice Prime Minister and a member of the Commission.
M. van Meerhaeghe was member of the academic advisory council of the Brussels think-tank Institut Européen and the conservative think-tank Centre for the New Europe. At the last one he published The Information Policy of the European Commission. Since 1988 he was a Life Member of the Mont Pèlerin Society.
Between 1986 and 2009 he chaired the Board of Directors of Centrale Kredietverlening, a small savings bank.
M. van Meerhaeghe was one of the 165 German-speaking Professors of Economics who signed the Declaration « The Euro starts too early ».
Legacy
M. van Meerhaeghe is the author of 22 books and about 160 articles.Theory must reflect reality
Already early in his career he took a position: he opposed the numerous publications that have no relation whatsoever with reality and especially deplored the mania for addressing everything with mathematics. He was in favor of operational economics, helpful to practitioners. Later he elaborated his criticism in Economic Theory. A Critic's Companion, probably his most important work. It caused quite a stir because of its unconventional approach. Guy Routh wrote a favourable review in The Economic Journal : "Professor van Meerhaeghe's book is a masterpiece of condensation: a review of economic theory from Plato to Friedman, with the faults exposed, in 109 pages of text. Six chapters deal with the main divisions of the subject, one with its practicability, one with its significance, and an appendix added that surveys thirteen types of theory. The preface modestly disclaims any intention of instructing fellow economists. The book is intended as a complement to an introductory course in economics. It is reminiscent of a surveyors report of a tumble-down house. It is unfit for human habitation, one would be mad to buy it, but one does, patches it up together as best one can, and inhabits it contentedly, gradually becoming inured to its defects. It is chastening to learn, from van Meerhaeghe's review, how deftly and how long ago the weaknesses of the economic edifice have been revealed. Mayer, Miry, Triffin and many others produced cogent criticisms that, had they been heeded, would have helped to convert economics into an operational science. Instead, their names and doctrines have been forgotten, and we may be grateful to van Meerhaeghe for reminding us of them." G. Routh's conclusion is brief and to the point : "This guarantees van Meerhaeghe's slim volume a long life. I fear that in ten years time its criticisms will be as valid and as relevant as they are today". He proved to be something of an optimist: they remain as valid today as they did in 1981.Books
As the most significant pieces of work we mention:- Theorie van de Economische Politiek, a sound textbook on economic policy featuring contributions from Dutch and Belgian experts: among others J.E. Andriessen, J. Tinbergen, Pieter Hennipman,,, and. The contribution of M. van Meerhaeghe was the chapter on international economic policy. Professor P. Hennipman, arguably the finest Dutch economic theorist ever, dedicated his Welvaartstheorie en economische politiek to M. van Meerhaeghe.
- Marktvormen, marktgedrag en Marktresultaten in België : market structure, behaviour and performance.
- International Economic Institutions. A review about the fourth edition: «...those readers who are looking for factual information in the field of international European and other regional organizations now have at their disposal a new and very useful survey of this world of abbreviations and what is behind it.» In the conclusion of the last edition van Meerhaeghe deals with such subjects as proliferation and the need for rationalisation and escape clauses. 7th edition: Kluwer Academic Publishers ; Springer.
- Economics: Britain and the EEC : the papers contained in this study, first presented at a symposium on British economic policy and the E.E.C. held at the University of Ghent in February 1969, consider the main economic issues raised by Britain's application to join the European Economic Community. A very useful little volume according to the review in The Economic Journal.
- Price Theory and Price Policy : a selection of articles taking into account the experience of M. van Meerhaeghe as president of the Prices Commission.
- Economics, A critical approach.
- International Economics. A very useful introductory text. Throughout, its orientation is strongly towards applied economic problems, but its theoretical sections are closely argued and very well keyed into the literature. Thus it schould prove a useful introduction for most students, while leading those more interested in the subject quickly on to the more specialist literature. Particularly the chapter The operation of the international monetary system.
- The Envy Society : bundle of a number of columns on economic and social affairs.
- Economic Theory. A Critic's Companion. 2nd edition: Springer.
- Museum of grootmacht. De identiteitscrisis van Europa. A reflection of the lectures during which he suggested students to read A.I. Solzhenitsyn.
- Belgium and EC Membership Evaluated : contributions by 14 authors, a.o. Filip Abraham,, Marc Quintyn,,, Jean-Pierre De Bandt and Jef Vuchelen.
Lectures
1959–2002
Teaching international economics results in delivering lectures at a variety of universities and international conferences: Warsaw, Geneva, Pretoria, Bratislava, Reggio Calabria, Hull, Prague, Iasi, Alvor, Vienna, Berlin, Uppsala, New York, Cracow, Sofia, Naples, Florence, Moscow, Jena, Orel, Valencia, Haigerloch, Göteborg, Porto, Lisbon, Venice, etc. Some lectures were later published as an essay in their own right, e.g.:- Die Entwicklung der Wirtschaft im Kongo. Folgerungen für die Theorie des Wirtschaftswachstums.
- Aktuelle Probleme der belgischen Wirtschaftspolitik.
- Regional Policy of the European Communities, in Institutional aspects of regionalism in a Pan-European context, Second Belgian-Russian Scientific Seminar, July 1–9, 1996 Yekaterinburg, ed. by Prof. Katlijn Malfliet and Veniamin V. Alekseev, pp. 32–36.
Heilbronn Symposium
- The lost chapter of Schumpeter’s ‘Economic Development’ in Joseph Aloïs Schumpeter. Entrepreneurship, style and vision, ed., The European Heritage in Economics and the Social Sciences, Vol. 1, Kluwer, Boston, Dordrecht, London 2003, pp. 233–244. M. van Meerhaeghe considers Schumpeter as ‘superior’ to Keynes because of his better knowledge of the economic science and his unsurpassed ‘History of economic analysis’.
- Nietzsche and economics and Nietzsche and business ethics, in Friedrich Nietzsche 1844-1900. Economy and Society, ed. J. Backhaus and W. Drechsler, The European Heritage in Economics and the Social Sciences, Vol. 3, Kluwer 2003, pp. 39–54 and 139–144. Contrary to certain scholars van Meerhaeghe doesn't regard Nietzsche's views on economics as particularly sensational, even though there are certain aspects of his philosophy which could provide a better tool for economic analysis in some fields.
- Bismarck and the social question, Journal of Economic Studies, Sept. 2006, Vol. 33, Iss. 4, pp. 284–301. Discussing the political consequences of social welfare legislation, and in particular its effects on the Social Question. Otto von Bismarck did not expect that the Social Question could be solved within a generation or two. Although von Bismarck's position passed through many important alterations, one aim remains unchanged: guarantee the stability and social peace of the state.
- The international aspects of Justi’s work, in The beginnings of Political Economy. Johann Heinrich Gottlob von Justi, ed. J. Backhaus, The European Heritage in Economics and the Social Sciences, Vol. 7, Springer, New York 2009, pp. 99–110. Justi might have been expected to adopt a protectionist and nationalist stance, but instead he comes across as an 'anti-Machiavelli' in his foreign-policy nostrums and a liberal in his views on foreign trade and population policy.
- Is Montaigne a Utopian ?, in The State as Utopia – Continental Approaches, ed J. Backhaus, The European Heritage in Economics and the Social Sciences, Vol. 9, Springer, 2011, pp. 67–76. Van Meerhaeghe refutes the idea that Montaigne would have been a 'famous utopian': no, he was the founder of modern scepticism.
- Mature Cameralism According to , in Physiocracy, Antiphysiocracy and Pfeiffer, ed J. Backhaus, The European Heritage in Economics and the Social Sciences, Vol. 10, Springer, 2011, pp. 135–147. Unfortunately there is a good deal of terminological confusion on display. Cameralism is the German version of mercantilism; trade requires freedom. Adam Smith's criticism of mercantilism is wrong.
- The Austrian and German "Economist" in the interwar period: international aspects, in The beginnings of Scholarly Economic Journalism, ed. J. Backhaus, The European Heritage in Economics and the Social Sciences, Vol. 12, Springer, 2011, pp. 65–71. Keynes' The economic consequences of the peace and the allies' post-war policy explain why every German wanted to undo Versailles.
- Globalisation: concept, outcome, future – a continental view, European Journal of Law and Economics, April 2012, Vol. 33, Iss. 2, pp. 239–306. Van Meerhaeghe examines the dominant political, social and economic trends of our time: multiculturalism and immigration versus patriotism and regionalism, capitalism versus state governance, America versus the rest of the world. He concludes a.o. that Russia is a normal trade partner and a natural ally for Europe, and nothing seems to stop the further triumphal procession of - undemocratic - globalisation.
Selected articles
- Observaciones sobre las opiniones de los nuevos paises acerca de su expanción económica, Revista de Administracion Publica, año V, n° 19, octubre-diciembre 1965, pp. 96–112.
- Culture and Economics, Economia delle Scelte Pubbliche, Vol. IV, 1986-3, pp. 157–163. About cultural policy and its instrument, the subsidy. Demand for culture is clearly inelastic.
- The awkward difference between philosophy and reality,, 1989, Iss. 1, pp. 18–23.
- Econometrics: an appraisal, Journal of Economic Studies, Aug. 2000, Vol. 27, Iss. 4/5, pp. 316–325. it is not the facts that must be made to fit the theory but vice versa.
- Capitalism and the 2008 crisis, Journal of Public Finance and Public Choice, Vol. XXVI, 2008-2/3, pp. 155–181. This paper considers the factors that lead to the crisis from a specific perspective – essentially the absence of adequate regulation – and is informed by earlier research and by van Meerhaeghe's experience in banking and certain government institutions. Is capitalism the appropriate term when the entire financial system has to be saved by the public sector? Under capitalism, the investor must accept responsibility for the losses he incurs. But the banks received no advice from the universities, even though they were urgently pressed for such assistance. The EU countries have come to realize that the free movement of capital has come too early. With the Brexit looming, Van Meerhaeghe arguments for the Sterling to join the eurozone as soon as possible.
Opinions
"Die Bücherbesprechungen in amerikanischen und französischen Zeitschriften sind sehr unterschiedlich. In französischen Bücherbesprechungen gibt man im allgemeinen ein Resümee über das Buch. Man spendet viel Lob, und man hofft, daß der Kollege dasselbe tun wird, wenn man einmal ebenfalls ein Buch schreibt. In amerikanischen und auch englischen Zeitungen ist das Gegenteil der Fall. Dort ist man ziemlich hart. Man kann dasselbe sagen von Diskussionen und Korreferaten. Es wäre viel leichter gewesen, hier etwas Generelles zu sagen und darzulegen: « Ja, ich bin einverstanden met a, b und c. » Aber für eine Diskussion ist es, glaube ich – ich sage nicht, daß ich recht habe – besser, anzugreifen, ein wenig Kritik zu üben."