Following a ‘standstill’: An ethnographic approach to financialization

This article addresses Dubai's recent financial crisis, bringing an ethnographic approach to ‘financialization’. It does so by repurposing the financial concept of ‘standstill’. Focusing on the consequences of the Dubai government's infamous ‘standstill announcement’, in late 2009, it argues that unpacking the literal and figurative registers of this concept offers insights into the political economy and lived experiences of financial crises.     

‘Divided Within Itself’: The Parliamentary Labour ‘Right’ and the Demise of Post‐War Revisionist Social Democracy in the 1970s

The article seeks to identify a neglected dimension of the ‘crisis’ and schism of British social democracy in the 1970s from within the ranks of the parliamentary Labour ‘right’ itself. Accounts of the so‐called ‘Labour right’ and its influential revisionist social democratic tradition have emphasized its generic cohesion and uniformity over contextual analysis of its inherent intellectual, ideological and political range and diversity. The article seeks to evaluate differential responses of Labour's ‘right‐wing’ and revisionist tendency as its loosely cohesive framework of Keynesian social democracy imploded in the 1970s, as a means of demonstrating its relative incoherence and fragmentation. The ‘crisis of social democracy’ revealed much more starkly its complex, heterogeneous character, irremediably ‘divided within itself’ over a range of critical political and policy themes and the basis of social democratic political philosophy itself. The article argues that it was its own wider political fragmentation and ideological introspection in the face of the ‘crisis’ of its historic ‘belief system’ which led to the fracture of Labour's ‘dominant coalition’ and the rupture of British social democracy.     

Killing the goose that laid the golden egg? Australia's resource policy regime in comparative perspective

A common criticism of the minerals resource rent tax (MRRT) was that it would ‘kill the goose that laid the golden egg’ for the Australian economy. Mining companies, their industry associations, and the Liberal–National Coalition all argued the MRRT would reduce Australia's attractiveness for mining investment, and lead to ‘capital flight’ as resource firms shifted towards lower-taxing competitors. To evaluate this claim, it is necessary to compare Australia's resource policy regime – including, but not limited to, its taxation elements – against those of its principal competitors. This article undertakes such an evaluation by comparing Australian resource policies with those of nine of its major mineral and energy competitor countries. This survey reveals that Australia's comparatively high mining tax rates are partially offset by its ‘non-interventionist’ approach to resource policy, and that it has retained good rankings on international political risk surveys. There is some evidence of short-term market response to the mining tax, but there is little evidence of sustained capital flight occurring due to the MRRT. These data collectively suggest that the MRRT did not significantly undermine Australia's attractiveness for international mining investment, despite widespread perceptions to the contrary.     

Wolfgang Streeck's conception of the crisis-phase of democratic politics: a post-Keynesian critique

Depictions of the politics of crisis in advanced societies (what crisis is and what can be done) continue to pit different strands of political science and heterodox political economy against each other. Economic sociologist Wolfgang Streeck's contributions to these controversies have emphasised ‘embeddedness’, or the need for economies to incorporate non-functional or deliberated elements which allow functional and market-focused processes to play themselves out. Streeck's recent writings on debt-induced crisis nonetheless accept too much orthodox liberal disquiet: most fatefully, a contempt for politics based on what seems to be an untenable assertion – that rich societies have hit the limits of their capacity to increase taxation. Capitalism has entered an ‘end point’, he claims. This article presents, again, contrary evidence and offers suggestions for a revised heterodox understanding of capitalism's current malaise.     

After ‘the collapse’: Strategic selectivity,Icelandic state elites and the management of European Union accession

Iceland’s 2008 financial crisis has received considerable scholarly attention from economics and business science perspectives. Far less consideration has been given to the political–administrative consequences of ‘the collapse’ in terms of its restructuring state-based projects and instituting new scalar strategies, and, specifically, the role played in this process by Icelandic political and policy elites. We focus on this issue by analyzing recent attempts to reconfigure Iceland’s sceptical position towards the EU by promulgating state narratives of ‘EUrope’ as a ‘safe haven’ for the shattered national economy as part of the country’s formal application for EU membership. We show within the Icelandic state there is, however, a highly fragmented and polarized position on EU accession. Drawing on Jessop’s strategic relational approach, we demonstrate that this derives from the actions of different elite fractions seeking to establish parameters for strategic selectivity on EU accession in ways that support their own interests. ‘EUrope’ emerges as a complex institutional category which is both shaped by, and shapes, the rhetorical interventions and actions of Icelandic state elites in often contradictory ways, demonstrating the fundamental political dynamics of what is emerging as a fraught, fiercely contested EU accession process. We conclude that times of conflicting elite narratives are also moments of potentially significant state change.     

Politics,Society and Financial Liberalization: Turkey in the 1990s

This article focuses on the political economy of Turkey in the 1990s to illustrate the importance of analysing economic variables that intersect with the quality of political democracy. In 1989, the debt‐ridden state moved to systematically and completely deregulate Turkey’s financial markets. Together with the ongoing processes of liberalizing commodity markets and integrating with global capital markets, financial liberalization was expected to achieve fiscal and monetary stability, stimulate business confidence to invest in productive sectors, produce stable growth, encourage privatization and control inflation. However, the new hegemony of the capital markets has gone hand‐in‐hand with deteriorating macroeconomic performance, a worsening income distribution, the discrediting of politics and its isolation from society. The authors examine several key dynamics which are helping to legitimate the neoliberal agenda of the 1990s. These include the distribution of state largesse to manipulate electoral capitalism; the rise of an informal sector in the ‘Anatolian Tigers’; promotion of the seductive attractions of the market; and an antipolitical reform populism adopted by political actors to exploit popular disillusionment with the political system.     

The new patron state in South Korea: cultural policy,democracy and the market economy

ABSTRACT

This article explores conceptual frameworks for understanding Korea’s contemporary cultural policy by looking into the historical transformation of the culture-state-market relations in the country. It argues that Korea has become ‘a new kind of patron state’, which emulates the existing patron states in the West firmly within the statist framework and ambitiously renders government-led growth of cultural industries (and the Korean Wave) as a new responsibility of the state. The formation of Korea’s new patron state has been driven by a ‘parallel movement’ consisting of democracy and the market economy, which has defined the political and socio-economic trajectory of Korean society itself since the 1990s. Democracy has been articulated in cultural policy as cultural freedom, cultural enjoyment and the arm’s length principle; meanwhile, the market economy of culture has been facilitated by a ‘dynamic push’ of the state. After discussing the parallel movement, the article points out the tension, ambiguity and contradiction entailed in cultural policy of the new patron state.     

The Positive Economics of Inflation in Brazil

High and unstable inflation rates have prevailed in Brazil during the period 1985-92. All attempts to stabilize the economy have failed and ‘living with inflation’ has become politically feasible. The structure of the financial market in general, and financial adaptation mechanisms in particular, have played a crucial role in implementing and maintaining this political-economic option. Financial adaptation mechanisms sway the management of monetary and fiscal policies, with a direct influence on the credibility of macroeconomic policy announcements. More importantly, distributive asymmetries generated by those financial instruments, in association with differences in political motivation for different groups in the society, have created a stalemate regarding stabilization efforts. This article argues that, for the Brazilian case, the positive economics literature has failed to explain the inflationary phenomenon because it has not considered financial adaptation as an important linkage between political motivation of certain groups in the society and the correspondent desirable economic outcomes. The validation of social-economic objectives of certain classes became an important raison d'être of financial adaptation. Consequently, change of inflationary regimes carries costs and benefits far beyond those implied by fiscal reform alone.     

Empire,Colonial Enterprise,and Speculation: Cape Breton’s Coal Boom of the 1860s

ABSTRACT

During the 1860s Cape Breton Island’s Sydney coalfield, at the northeastern tip of Nova Scotia, experienced dramatic economic expansion. Historical interpretation of this understudied coal boom has emphasised the transition towards a liberal era of competition and growing dependence upon American capital and markets. This article presents a revised interpretation, and reflects a renewed engagement with empire in the writing of the history of Canadian capitalism. Drawing upon the work of James Belich and John Darwin, it locates this coal boom in an evolving and expanding ‘Angloworld’ and ‘British world-system,’ and demonstrates how the Sydney coalfield was shaped by the social and economic configurations that developed in the region under the British Empire. During this period, established colonial elites captured coal property and sought to integrate Cape Breton coal into the Atlantic economy in which their region had historically operated. They treated coal as a new commodity to trade and profit from, but coal mining required the mobilisation of credit and infrastructure expenditures that exceeded what was typically required to participate in the region’s traditional staples trades. Large fixed investments engendered economic and political commitments that spurred growth even under highly volatile circumstances, as promotion and speculation drove growth from the supply side and attracted London capital. Overcapacity, ruinous competition, and social crisis eventually resulted, as the Atlantic economy that gave rise to the boom fell apart. This episode reveals the operation of colonial networks and an ‘empire effect’ that produced a distinctive pattern of development on the Sydney coalfield whose legacy would be lasting.     

Limits to the Washington Consensus: Boundary struggles and China's transition economy

This paper explores the interconnected normative and geopolitical-economic tensions between the Washington Consensus and the Chinese state through an analysis of reform discourses and practices at the World Bank. Frequently framed as opposing visions and templates of development, the World Bank and the Chinese state have engaged in a protracted relationship of mutually-informing exchanges of economic expertise, technical assistance, and policy formulation, evolving significantly since China's ‘opening up’ in 1978. I trace these shifting relations through an interpretive strategy inspired by Nancy Fraser's concept of boundary struggles, focusing on how the World Bank has challenged, affirmed, and affected China's institutionalized division between polity and economy. Through a new periodization of the World Bank/China nexus, this paper shows how transformations in geopolitical-economic relations condition the normative construction, representation, and reception of ‘economic models’. It also challenges antipodean conceptions of the ‘free-market’ Washington Consensus and ‘state-capitalist’ China through demonstrating the qualitative character of their state/market articulations.     

Change without Transformation: Social Policy Reforms in the Philippines under Duterte

This article explores social policy reforms championed by the Philippines’ strongman president Rodrigo Duterte during his first three years in office (2016–19), as a case for examining the transformative potential of social policy expansion under rising new right-wing and authoritarian leaders. By showing how political economy and historico-institutional conditions foreclose the transformative possibilities of the social policy changes effected by Duterte, the author offers a critique of current tendencies in global development discourses to treat all forms of social policy expansion as progressive. In the Philippines case, there is no progressive ideology guiding the reforms, nor are there political movements overseeing the expansion of social rights now inscribed in law. Rather, the reforms institutionally entrench a minimalist approach to universalism and strengthen the foothold of poverty targeting as an organizing principle of social provisioning. Social policy expansion under Duterte manifests aspects of the ‘dark side’ of social policy reforms during the current global political moment, including the use of such policy reforms to legitimize a conservative and authoritarian political order, and the functionality, across the political spectrum, of ‘narrow universalism’ — the type championed by international development agencies — which serves to deepen segmentation in social provisioning.     

Putting the crisis to work: The real estate sector and London's housing crisis

The idea of ‘crisis’ plays an important role in academic and policy imaginations (Heslop and Ormerod, 2020), particularly since the global financial crisis. Across major western cities, at the same time as policy-makers have had to respond to ‘the (economic) crisis’, many have also experienced intense ‘housing crises’ and the acute divergence of average incomes and house prices. In response, cities such as London have become central sites in debates around housing acquisition by the ultra-wealthy, land value extraction and growing levels of unaffordability. However, much critical geography research on housing crises is state-centred or focused on civil society impacts, with relatively little reflection on the real estate sector and the work that crisis does as a narrative in shaping institutionalised and actor-centred practices. In this paper, we draw on in-depth research with developers, investors, and advisors in London to argue that crisis-driven policy responses have created political risk which is differentially experienced by actors across the sector, with large housebuilders and advisors benefitting whilst smaller niche developers move out. Moreover, we show how consultants, investors and developers have used the crisis situation to create new geographies, products and investor types in the housing market. These, in turn, require regulatory support and demonstrate the inherently political nature of crisis narratives' use. We use the London case to broaden understandings of the impact that conceptualisations of ‘crisis’ have on urban and regional planning practices, and how these influence and shape processes of contemporary urban development.     

Remote crisis management: Australia's 2006 rescue of citizens trapped in Lebanon

On 12 July 2006, Hezbollah's kidnapping of two young Israeli soldiers was the catalyst for a sudden escalation of the conflict between Israel and Hezbollah. Lebanon was host to more citizens and permanent residents from Australia than any other country in the world. This article examines the monumental challenge faced by the Australian authorities in rescuing and repatriating its citizens who were caught up in the conflict. It does so through the conceptual lens of ‘remote crisis management’ i.e. episodes where one country's traditional crisis management challenges of rapid threats, uncertainty and the need for swift decision making are compounded by ‘political remoteness’. In other words, it lacks both political sovereignty and local infrastructure capacity for crisis resolution in a faraway county. The article focuses particularly on the remote crisis management challenges of making sense of the crisis, communication with a range of interests, and the logistical challenges of arranging and installing rescue and evacuation procedures. It also addresses the significance of Australia's prior evacuation experiences, as well as the capacity it had built in local and international networks. The article draws on a range of primary and secondary sources, including interviews with public servants and community representatives.     

Interview with Romano Prodi

On the occasion of the Conference on the State of Italy, held at Brown University's Watson Institute for International Studies on 29–30 October 2013, David Kertzer interviewed former two-time Italian Prime Minister Romano Prodi. Their focus was on the evolution of Prodi's involvement in Italian government and politics. This first in what is planned to be two such interviews examines Prodi's initial move from an economics professor at the University of Bologna interested in the study of political economy and industrial policy, to a major figure in implementing industrial policy in Italy. It looks at his brief stint as Minister of Industry under Giulio Andreotti, his founding of the influential industrial study group Nomisma, and then his presidency of the Institute for Industrial Reconstruction (IRI), Italy's giant holding company. With the crisis of the Italian political system in the early 1990s, Prodi was central to the creation of a new centre-left coalition, named L'Ulivo (the Olive Tree), an experience he recalls here, along with his first experience as Prime Minister, from 1996 to 1998.     

Heading west? Georgia's Euro‐Atlantic path

Events in Ukraine in 2014 are likely to transform the presence and role of western institutions such as NATO in the post‐Soviet area. The crisis has starkly revealed the limits of their influence within Russia's ‘zone of privileged interest’, as well as the lack of internal unity within these organizations vis‐à‐vis relations with Moscow and future engagement with the area. This will have long‐term implications for the South Caucasus state of Georgia, whose desire for integration into the Euro‐Atlantic community remains a key priority for its foreign and security policy‐makers. This article examines the main motivators behind Georgia's Euro‐Atlantic path and its foreign policy stance, which has remained unchanged for over a decade despite intense pressure from Russia. It focuses on two aspects of Georgia's desire for integration with European and Euro‐Atlantic structures: its desire for security and the belief that only a western alignment can guarantee its future development, and the notion of Georgia's ‘European’ identity. The notion of ‘returning’ to Europe and the West has become a common theme in Georgian political and popular discourse, reflecting the belief of many in the country that they are ‘European’. This article explores this national strategic narrative and argues that the prevailing belief in a European identity facilitates, rather than supersedes, the central role of national interests in Georgian foreign policy.     

Social,economic and political dilemmas of reform in Yugoslavia

All of the communist party‐ruled states of Eastern Europe, from the elder brother of the ‘socialist family’, the Soviet Union, to non‐aligned, sui generis Yugoslavia, are in some degree of economic crisis. Gone are the once loudly trumpeted assurances that the socialist ‘economic formation’ by its very nature — its centrally planned and directed economy, its leadership by a communist party armed with the ‘scientific’ social and economic theory of Marxism‐Leninism and its foundation on the principles of proletarian social justice — excluded the possibility of economic ailments such as sluggish growth rates, inflation, social inequality and unemployment. It is now admitted that precisely these problems currently threaten virtually all communist systems. The principal issue for the political elites in these countries (with the perhaps temporary exception of relatively prosperous East Germany and Czechoslovakia and perennially contrary Romania) is not whether radical reform is necessary, but how to implement the requisite economic, social and quasi‐political reforms without undermining the foundations of ‘socialism’ and of the communist party's domination that they identify with it Yugoslavia is a valuable test case of the general project of reform in communist systems, since it consciously undertook to dismantle the of Stalinist system it had been establishing under Soviet tutelage at the end of World War II in response to Stalin's ostracism of Tito in June 1948. From its inception the Yugoslav reform process was informed by a commitment to return to the sources of Marxian social and economic theory in order to build an authentic socialist system untrammeled by the structures and immoral practices of Stalinist ‘etatism’. Worker self‐management, ‘market socialism’, the decentralisation of political and economic decision‐making, periodic rotation in office, and a number of other formally democratic, participatory socio‐political processes, most of which Gorbachev and his supporters have been discussing under the rubric of perestroika, glasnost’ and demokratizatsiia, have all been tried in one form or another in Yugoslavia during the past four decades.     

Democratization and museum policy in South Korea

ABSTRACT

This article examines the two distinct historical policy paths taken by the South Korean government in the late twentieth century towards the democratization of museums. One was based on the creation of a museological public sphere as an extension of the political democratization movement of the 1980s. This demonstrated the potential to become a valuable component of the wider incipient national public sphere within which civic subjects could discuss their individual and collective historical memories. However, despite this potential, a museological public sphere failed to influence the general trajectory of national policy regarding the democratization of museums that had been in development since the early 1980s. This other policy path towards cultural democratization was triggered by the award of the Seoul Olympics in 1981. It was based on public participation and entitled the ‘cultural Olympics’. An important strategy of the cultural Olympics was the construction of a new institutional infrastructure to expand the public right to enjoy culture. This path facilitated an increasing entanglement with neoliberalism in 1990s. Finally, the 1997 IMF crisis furthered the association between a superficial idea of democratization through institutional expansion and the practices of neoliberalism, a trend which continues within South Korean museum policy today.     

The 1949 federal election: A reinterpretation

The 1949 federal election in Australia is widely regarded as one of Australia's most significant elections. This election ended eight years of ALP government and began a long period of unbroken rule by Liberal‐Country Party governments. Surprisingly, very little has been written about the 1949 election although various authors have addressed themselves to the question of why the Chifley government lost in December 1949. The orthodox interpretation is that Chifley's defeat in 1949 was to do with the issues of ‘bank nationalisation’ and ‘communism’. In this article, I offer a reinterpretation of the connection between political issues and voting behaviour in the 1949 election. Following the theory of Fiorina that voters tend to make their decision on the basis of how a party fares in handling problems in the past, I argue that the Australian electorate in 1949 responded negatively to Chifley's handling of the general economy and his policies on two crises in 1949 — the national coal strike and the dollar crisis.     

Capitalism,Crisis and Critique: Reassessing Régis Debray's ‘Modest Contribution’ to Understanding May 1968 in Light of Luc Boltanski and Ève Chiapello's Le nouvel esprit du capitalisme

In 1978 Régis Debray argued that, rather than threatening to overthrow capitalism, the student and worker revolt of 1968 actually strengthened the mechanisms of capital accumulation in France. Today the historical significance of May 1968 continues to generate much debate and scholarly interest, yet Debray's controversial thesis is largely absent from contemporary accounts of May's impact on post-1968 socio-economic and political change. Adopting the theoretical framework of Luc Boltanski and Ève Chiapello's Le nouvel esprit du capitalisme, this article shows that Debray's work correctly highlights the ability of post-1968 capitalism to appropriate the critiques of May. In certain respects, Debray offered a prescient analysis of capitalism's ‘new spirit’ as later described by Boltanski and Chiapello. The article also explores some of the political and theoretical implications of a grave anti-capitalist threat being paradoxically turned into a source of capitalist strength. While highlighting the notable shortcomings in Debray's argument, particularly its deterministic approach, the article suggests that Debray's stimulating analysis of May 1968 instructively reveals the importance of understanding and explaining capitalism, crisis and critique together.