Why Does the Cook Islands Still Need Overseas Aid?

The Cook Islands Government spends more than 40 per cent of gross domestic product (GDP). Its tax revenue is capped at 25 per cent of GDP under a 1998 austerity package agreed with its creditors New Zealand, Nauru and the Asian Development Bank. Non-tax revenue is 5 per cent of GDP, and external aid fills the resulting gap. This recently renewed reliance on aid contrasts sharply with the strong performance of the economy’s private sector, driven by a booming tourism industry, which has pushed the balance of payments into a huge surplus and raises important questions about the allocation of the gains from growth.     

Conceptualising European Privatisation Processes After the Great Recession

A wave of privatisation is unfolding in Europe in the wake of the financial crisis, but it has yet to receive serious scholarly attention. This paper examines the case of Ireland, where an austerity strategy and European Union International Monetary Fund bailout conditionality have given impetus to the transfer of public assets to the private sector. Theoretically, the paper explains the roots of the phenomenon with reference to a reformulated concept of “accumulation by dispossession” whose usefulness lies in emphasising the politico‐economic drivers of privatisation, which have been neglected in the mainstream literature. A typology is presented that argues that accumulation by dispossession manifests itself, in practice, through four main processes: (1) private repossession of assets nationalised during the financial crisis; (2) restructuring of state‐owned enterprises; (3) commodification of assets and services hitherto located outside the market; and (4) privatised stimulus through public–private partnerships. The paper's framework should be useful to conceptualise ongoing privatisation processes in other European countries.     

Arts and culture in an era of austerity: key stakeholder views on the current and future Australian context

The arts and culture sector in many countries faces major challenges, as a consequence of ongoing austerity measures and changes in the ways in which the arts are experienced. In major nations such as the United States, the United Kingdom and in several European countries, there is considerable pressure to look for new ways of surviving in an age of consumerism, accountability and rapidly changing technologies. On the other hand, many Asian countries have invested heavily in building their arts and culture sector as part of the new twenty-first-century economy. The arts and culture sector in Australia faces serious challenges at present, including ongoing fiscal pressures, an absence of any national cultural policy and disruption as a consequence of changing governments. In order to explore these issues, interviews were held with 22 key leaders from a range of Australian organisations associated with arts representation, funding, policy and advocacy. The findings highlight both the challenges and opportunities facing Australia towards what may be considered the next wave of innovation and change.     

Subjectification in Times of Indebtedness and Neoliberal/Austerity Urbanism

How can we analyse the (re)emergence of squatting in relation to the current housing crisis in Italy? Centred on the case of Rome, the paper theorizes this return as resulting from processes of subjectification in the housing sector linked to the raising of indebtedness as a main dispositif of capitalism under neoliberal/austerity urbanism agendas. The political economy‐oriented literature on neoliberal/austerity urbanism is bridged with the post‐Marxist approach of Maurizio Lazzarato. Debt is seen as the archetype of social relations, shaping and controlling subjectivities, making the “work on yourself” essential to the reproduction of (indebted) society. However, given the circular nature of power, indebtedness can be generative of new processes of subjectification aimed at subverting the same power relation. In this sense, the paper operationalizes the conceptualization of Foucauldian subjectification recently proposed by Judith Revel, emphasizing how subjectification always results from (1) an action/gesture and (2) a consequent deconstruction of the identity.     

The Politics of Crisis: Deconstructing the Dominant Narratives of the Housing Crisis

This paper considers how dominant narratives of the housing crisis, since the 2008 banking crisis in England, have been created and what actions taken in its name. The paper deconstructs the term “crisis”, highlighting that its meaning has evolved from a critical moment to a protracted narrative which must be understood historically. Through discourse analysis into housing and party political policy, media and think tank reports, we argue that the employment of housing crisis by the government and others perceives it as an outcome of housing supply constraints and over-regulation—narratives that have justified subsequent policy actions aimed at propping up the housing and financial systems, opening new avenues for housing commodification, deregulation and financialisation and reproducing crisis anew. However, we note that these narratives can also break down and space can be created for the articulation of new narratives which refocus housing crises as emerging from inequality and class divisions.     

Cyclical downturn or structural disease? The decline of the Italian economy in the last twenty years

Italy is experiencing at present the most serious economic recession of the post-war period. Between 2008 and 2013 national income fell by 9 per cent, per capita incomes by 11 per cent, and industrial production by 25 per cent; and unemployment doubled. In this essay we argue that, while this dramatic situation has been made worse by the policies of ‘expansive austerity’, its origins can be traced back to changes that took place in the 1990s (notably globalization, competition for emerging new markets and the diffusion of new technologies – ICT) to which Italy failed to react speedily or effectively by reorganizing its entire productive system. Instead, many of the reforms that have been introduced with respect to the labour market, for example, have reduced costs but in ways that have encouraged firms to stay in traditional sectors where products are poorly differentiated and of low technology content. If the Italian economy is not to become even weaker, new reforms are urgently needed to encourage innovative investment and push through to completion a restructuring of the industrial system that can no longer be deferred.     

Austerity and consociational government in Northern Ireland

Abstract

This article examines the institutional crisis of the Northern Ireland Assembly in 2015 as a case study on the impact of austerity on multiculturalism in Ireland. I make a case for viewing the Assembly as a multicultural institution through pointing to the historical role of community relations policy, which was directed at reconciling “sectarian” Irish nationalists and Ulster unionists. It did so through shifting from an understanding of the conflict as one based on the struggle for Irish national self-determination to one based on conflicting identities. I argue that Sinn Féin’s embracing of multiculturalism is a product of its accommodation to British rule in Ireland. Sinn Féin has made a virtue out of its political volte-face by becoming the strongest advocate of ethnic Irish nationalism in Northern Ireland. The ethnic power politics of Sinn Féin has found its unionist equivalent in the political manoeuvrings of the Democratic Unionist Party. Austerity measures imposed by the Westminster government have created problems for the parties in the power-sharing Assembly, problems that threaten the collapse of the Assembly. It is because of, rather than in spite of, the multicultural mechanisms embedded in the Assembly that the institution has got to crisis point. This is an institutional crisis, not a crisis of multiculturalism.     

Austerity,Right Populism,and the Crisis of Labour in Canada

In the aftermath of the 2008 financial crisis, neoliberal governments embarked on austerity programs that include reducing public services, imposing public sector wage restraint, and reorganizing public sector working conditions and labour relations. In this context of economic crisis and austerity, populism has risen across North America and Europe on both the right and left of the political spectrum. The rise of right populism in particular confronts unions with key organizational and strategic challenges as neoliberal governments seek to mobilize right populist discourses in their efforts to restructure work and labour relations. Using a socio‐geographic framework, and based on an examination of post‐2008 legislative and policy measures undertaken at the federal, provincial, municipal levels in Canada, this paper explores the nexus between “uneven austerity”, rising populism, and union strategic capacities. We examine this intersection of austerity and populism at multiple scales to reveal the implications for organized labour.     

Voice of Civilisation: advertising and its critics in austerity Britain

The advertising industry was on the defensive during World War Two, with advertising regarded by many British people as deeply unpatriotic, potentially undermining the national interest and the fight against fascism. This article analyses the debate on the role of advertising in Britain in the immediate aftermath of war, when the advertising industry regrouped to meet the challenge of working within an economic environment shaped by the imperatives of a Labour government committed to wide scale state intervention. Critics of advertising within the labour movement were emboldened by this context, and the industry was threatened with punitive taxation in 1947. Focusing particularly on this flashpoint and its aftermath, the article sheds new light on the increasingly open struggle between private enterprise and state planning during this volatile period.     

Averting a global financial crisis: the US,the IMF,and the Mexican debt crisis of 1976

This article explains the politics and diplomacy of the initial use of an International Monetary Fund (IMF) adjustment program as a tactic in a strategy to avert a possible global banking crisis. Scholars typically date the strategy to the Reagan administration's response to the sovereign debt crises in Eastern Europe and Latin America in the early 1980s. This article demonstrates that the approach originated instead during the 1976 Mexican debt crisis – the first potential postwar default by a developing country that threatened international bank failures. Key US and Mexican officials recognized that an IMF program of currency devaluation and austerity would probably fail in its stated objective of reducing Mexico's balance of payments deficit. Nevertheless, US Treasury and Federal Reserve officials, fearing that a Mexican default might lead to bank failures and subsequent global financial crisis, intervened to an unprecedented degree in the negotiations between the IMF and Mexico. The United States offered direct financial support and worked through diplomatic channels to insist that Mexico accept an IMF adjustment program, as a way of bailing out US banks. Mexican president Luis Echeverría's administration consented to IMF adjustment because officials perceived it as the least politically costly option among a range of alternatives.