How Finance Penetrates its Other: A Cautionary Tale on the Financialization of a Dutch University

If any organization ought to be immune to the forces of financialization, it is a publicly funded university in corporatist Europe. Shielded from the intrusion by financial metrics, values and professionals through a strong historically rooted tradition of self‐management by powerful professional guilds, continental universities should largely have avoided the marketization and managerialization of Anglophone universities. Not so, this case study of a Dutch public university suggests. From 1995 onwards, a shift in real estate management—devolving responsibilities from the Dutch state to universities—served as a Trojan horse for financialization, triggering changes in organizational culture and a power shift from teaching and research professionals to accountants, real‐estate developers, financiers and their ilk. This case suggests that the power of finance is such that no societal domain is immune. The paper ends with a call for more non‐metropolitan case studies of financialization and argues that the only hope for salvation is a more self‐conscious defense of traditional academic values by the guardians of higher learning themselves.     

Deconstructing the Financialization of Healthcare

Financialization is promoted by alliances of multilateral ‘development’ organizations, national governments and owners and institutions of private capital. In the healthcare sector, the leveraging of private sources of finance is widely argued as necessary to achieve the Sustainable Development Goal 3 target of universal health coverage. Employing social science perspectives on financialization, the authors of this article contend that this is a new phase of capital formation. The article traces the antecedents, institutions, instruments and ideas that facilitated the penetration of private capital in this sector, and the emergence of new asset classes that distinguish it. The authors argue that this deepening of financialization represents a fundamental shift in the organizing principles for healthcare systems, with negative implications for health and equality.     

Financialization of hotel corporations in Spain

One of the cutting-edge topics being currently debated in social sciences is the impact of financialization on corporations and on different geographical contexts. Surprisingly enough, there have been very few studies that have explicitly dealt with this issue within tourism studies. In this paper, the issue of financialization within tourism is addressed through an analysis of hotel corporations. Taking a case-study approach, it is argued that Spanish hotel chains are increasingly becoming financialized since a minimization of the impact of global financial crisis on these corporations is urgently required. The argument is not that hotel corporations’ financialization is necessarily new, but rather that the impact of the global financial crisis has led to an intensification of this very process. Taking as case studies the three largest Spanish hotel corporations (Meliá Hotels International, NH Hoteles and Grupo Barceló), the current crisis-led hotel financialization is dealt through four interrelated spheres: (1) built environment (hotel buildings property becoming controlled by financial funds), (2) actors (emergence of new agents as a result of hotel corporations intertwining with financial corporations), (3) hotel profit extraction (reliance on the secondary circuit of capital), (4) financial engineering instruments (forms of fictitious capital that are new in the context of hotel corporations). The article shows how the process of financialization of hotel corporations illustrates broad trends of both financialization and capital accumulation. Specifically, the main findings are on one hand, that financialization not only fixes capital on the ground, but also creates liquidity. On the other hand, that the selling of property titles is an increasing profit niche with differentiated geographical locations. The last significant finding is that financialization helps to improve profitability of non-financia corporations such as hotel chains.     

American Democracy and Democracy Promotion

As America inaugurates its 43rd president it enters a period of reflection. The danger is that an emphasis on voting procedure will silence a long-standing and ultimately more significant criticism of American democracy and its policy of democracy promotion. The separation of economics from politics and the promotion of so-called 'market democracy' does a disservice to the wider democratic project and is potentially self-defeating. This article reviews three books to argue that America's declining international reputation can be traced to its own democratic shortcomings. It explores the possibility of a popular working-class movement to address these failings and examines the implication this may have on the liberal international order.
Books reviewed:
John B. Judis, Paradox Of American Democracy: Elites, Special Interests And The Betrayal Of Public Trust
Michael Zweig, The working class majority: America's best kept secret
Ruy Teixeira and Joel Rogers, America's forgotten majority: why the white working class still matters     

Democracy and Disenchantment

The victory of democracy in its ideological battle with communism has coincided with widespread voter disaffection in established democracies and with the rapid emergence of disillusion in recently 'democratised' societies. These developments raise at least two more general problems concerning the democratic dream of a self-governing community. First, there is the problem of democratic deficit: the fact that democratic arrangements are invariably constrained by arrangements of a non-democratic kind. Second, there is the problem of corruption. While such problems arise for any form of politics they have a particular significance for regimes which claim to be democratic. Following the recent victories of democracy in much of the world, it is now more difficult to appeal to the remedy of a more inclusive political system. Those of you who come in with me now will get big pieces of pie. Those who come in with me later will get smaller pieces of pie. Those who dont come in at all will get-Good Government.1 (attributed to Huey Long, Governor of Louisiana)     

Democracy and Technology

Richard P. Hiskes, Democracy, Risk, and Community: Technological Harardr and the Evolution of Liberalism .
Sheila Jasanoff, Science at the Bar: Law, Science, and Technology in America .     

Democracy and Instrumentalism

The fall of the Berlin Wall and the demise of state socialism, among other factors, has led to a renewed interest in a certain conception of democracy as a fundamental organising principle for political debate and decision-making. Yet there are good reasons to suppose that the concept of democracy is severely limited in the role it can play here. This article examines some of these limits. In the first section we summarise a number of arguments from the 'revivalist' democratic literature and the conception of democracy presented within it. In doing so, we identify a conception of democracy-a conception we refer to generically as 'the democratic ideal'-that is defined both in relation to certain structural features and also in terms of a set of progressivist and socially ameliorative ends to which that ideal is seen as being especially conducive. In this reason our interest is not in any one version of the democratic idealalthough we do take many contemporary forms of the ideal in question to combine two central strands-as in the promotion of that ideal as instrumental in furthering certain economic and social ends. In the second section we call this ideal into question through a discussion of some of the problems associated with democratic forms of governance. We conclude with a discussion of the way in which the appeal to the democratic ideal in political debate and decision-making may actually depend on ignoring or suppressing the very politics that it aims to address.     

The State and Financialization of Public Land in the United Kingdom

There exists an influential and growing political‐economic literature on the treatment of land—urban and rural—as a financial asset. But this literature pays little attention to the role of the state, beyond its obvious significance in the formalization of tradable property rights. In particular, the issue of the state's own land, i.e. public land, has been afforded scant scrutiny. Has the state, like other actors, increasingly come to treat the land it owns as a form of financial asset? And if so, how, and with what implications? This article addresses these questions by way of an empirical focus on the history of the UK public estate since the beginning of the 1980s.     

Disaster Financialization: Earthquakes,Cashflows and Shifting Household Economies in Nepal

The political economy literature on post-disaster reconstruction tends to contrast ‘disaster capitalism’ narratives denouncing the predatory character of neoliberal rebuilding, and ‘building back better’ policies supporting market-driven reconstruction. This article seeks to provide a more nuanced account, developing the concept of ‘disaster financialization’ through a case study of household-level changes experienced through processes of post-earthquake reconstruction in Nepal. The concept of disaster financialization describes not only the integration of disaster-affected households into the cash-based logic of reconstruction instituted by donors and government authorities, but also the financialization of their lives, social relations and subjectivities. It is a transitive process involving a shift into financialized mechanisms of disaster prevention, adaptation and recovery. Analysing contrasting experiences across three earthquake-affected districts in Nepal, this study proposes disaster financialization as an integrative term through which to understand the simultaneous acceleration of monetization, the leveraging of cash incentives by donors and government to ‘build back better’, and the flurry of financial transactions associated with reconstruction processes. While some aspects of disaster financialization have had negative social impacts, such as debt-related anxieties and a breakdown of voluntary labour exchanges hurting the most vulnerable, the process has taken on variegated forms, with equally variegated effects, reflecting household characteristics and interactions with financial institutions.