Introduction: The dynamics of ideas

Abstract

Participants in today's financial markets confront a sea of data. While the availability of market data has benefits it also creates problems, notably those relating to questions of meaning, judgement and intervention: how to make sense of these flows – how to see the ‘market’, its futures, and thus act pre-emptively. Over more recent years financial organizations have been turning to new technologies of representation, in particular the design and application of visualization software in an effort to enable better visual imagination of and interaction with markets as they unfold in real time. ‘What you see is what you risk’ in many respects captures the thinking or at least the desire underlying the employment of the latest visualization software. The more powerful one's vision the better able one is to participate in increasingly complex financial markets, at least in theory.

Based on recent interviews with those involved in developing and using the latest visualization software within some of the key markets of global finance, and developing the influential work of Daniel Beunza and David Stark, and Karin Knorr Cetina, in particular, this paper adopts a cultural-economy-of-finance perspective to examine the implications of these new techniques of representation. The paper argues that the latest visual turn within finance should be afforded a more central position in the study of contemporary financial market practices.     

Housing prices and wealth inequality in Western Europe

Abstract

Comparative political economy (CPE) has robustly examined the political and institutional determinants of income inequality. However, the study of wealth, which is more unequally distributed than income, has been largely understudied within CPE. Using new data from the World Income Database (WID), this article examines how economic, political and institutional dynamics shape wealth-to-income ratios within Western European and OECD countries. It is found that the political and institutional determinants that affect income inequality have no short- or long-run effects on the wealth-to-income ratio. Rather, the rise in wealth-to-income ratios is driven by rising housing prices, as well as price changes in other financial assets, not home ownership or national saving rates. The article concludes by examining how the changing dynamics of housing prices and wealth inequality will increasingly shape intergenerational – and associated class-based – political conflict in Western Europe.     

Climate change,markets and standards: the case of financial accounting

Abstract

The paper examines unresolved attempts since 2005 to develop financial accounting standards for greenhouse gas emission allowances. It is a detailed empirical case study into how the large-scale experiment of carbon markets has manifested in a particular area of professional expertise – financial accounting. Theories about the role of standards usefully draw attention to the hidden work of standards in society and help explain why some things are difficult to standardise. However, there are notable gaps in conceptualising how standards are integral to wider processes of policy and technology change. Ideas from governmentality and hybrid markets (agencements) are therefore used to explore further the role of standards within markets, and provide a welcome avenue for thinking afresh about the relationship between climate change and standards.     

Governing insecurity: contingency planning,protection, resilience

Abstract

How should we understand the politics of security today? This article addresses this question from one particular perspective, that of ‘biosecurity’. It examines contemporary strategies for managing biorisks in three European states: France, Germany and the United Kingdom. We suggest that the framing of threat and response differs, even within Europe, and that one can identify three different configurations: contingency planning, protection and resilience. Each of these embodies a significantly different way of reconciling fundamental imperatives for those who would govern a liberal society today – the imperative of freedom and the imperative of security.     

Court pedagogies and the construction of passive ordinary citizens in the French banlieue

ABSTRACT

This article contributes to conceptualizations of the pedagogical state by analyzing judicial spaces, beyond the courtroom, as key sites of citizenship formation. I explore pedagogical sessions organized by a judicial structure in France, whose geographical proximity to seemingly non-integrated populations in the banlieue allows it to teach them the laws, rules, and institutions that support citizenship. I argue that the pedagogical court seeks to construct governable ‘passive ordinary citizens’ whose main duty is to embody and practice the basic rules of socialization – respect for others and the rule of law – in their ordinary lives as a strategy of crime prevention. In that sense, courts are able to redefine not only the procedural but the substantive elements of citizenship as well.     

Economies of contagion: financial crisis and pandemic

Abstract

The outbreak of an influenza A (H1N1) pandemic in 2009 coincided with a severe global financial downturn (2007–8). This paper examines the use of ‘contagion’ as a model for assessing the dynamics of both episodes: the spread of infection and the diffusion of shock through an intrafinancial system. The argument is put that a discourse of globally ‘emerging’ and ‘re-emerging’ infection helped to shape a theory of financial contagion, which developed, particularly from 1997, in relation to financial crises in ‘emerging markets’ in Southeast Asia. Conversely, concerns about the economic impact of a global pandemic have been influential in shaping public health responses to communicable diseases from the early 1990s. The paper argues that tracing the conceptual entanglement of financial and biological ‘contagions’ is important for understanding the interconnected global environment within which risk is increasingly being evaluated. The paper also considers the consequences of this analogizing for how financial crises are understood and, ultimately, how responses to them are formulated.     

A Responsibility to Profit? Social Impact Bonds as a Form of “Humanitarian Finance”

ABSTRACT

Recent years have seen the emergence of social impact bonds (SIBs), geared toward funding social interventions while earning financial returns. The article proposes to conceive of SIBs as a practice of contemporary humanitarianism. In an effort to trace the politics of such humanitarian finance, the article analyzes a SIB that sought to improve outcomes for homeless persons in London. It argues that, instead of relying on sentimental stories, the project was animated by a results-oriented, technocratic culture geared at solving social problems (rather than just alleviating suffering). Its mode of reasoning, however, directed attention to highly vulnerable individuals – and away from the structural conditions that perpetuate poverty. But at the same time, the scheme reworked exclusionary constellations “from within.” Thus, such humanitarian finance simultaneously performs a relation of inequality and a relation of assistance. The article makes the case for an ongoing engagement with both dynamics.     

On arbitration,arbitrage and arbitrariness in financial markets and their governance: unpacking LIBOR and the LIBOR scandal

Abstract

Amongst a series of scandals to hit international financial markets in recent years, that surrounding the London Interbank Offered Rate (LIBOR) – a highly influential interest rate benchmark – has attracted particularly intense media scrutiny. This paper seeks to push beyond conventional understandings to unpack critically both LIBOR itself and the scandal involving its manipulation by major international banks. Envisioning LIBOR as a commodity beset by inherent contradictions, the paper mobilizes the tropes of arbitration, arbitrage and arbitrariness to illuminate, respectively: the market-making work performed by LIBOR; its role in enabling the transfer of financial risk, most notably when fraudulently manipulated; and the nature of the regulatory prosecution of such manipulation.     

Catastrophe risk,insurance and terrorism

This article empirically investigates how the terrorist activity of September 11, 2001, was addressed by the insurance industry and government in the United States. It shows that the insurance system worked reasonably well in compensating losses suffered, albeit with various tribulations. It also demonstrates that the insurance industry, along with government as the ultimate risk manager, imaginatively reconfigured markets to continue terrorism insurance coverage in many contexts. The findings challenge many of Ulrich Beck’s contentions about catastrophe risks and insurability. At the same time, they indicate the fragility of the insurance system. Insurers’ perceptions and decisions about uncertainty – with potential for windfall profits as well as catastrophic losses – create crises in insurance availability and promote new forms of inequality and exclusion. Hence, while the insurance industry is a central bulwark against uncertainty, insurers can also play a key role in fostering it.     

Civil society and the contemporary threat to religious freedom in Bangladesh

ABSTRACT

Against the international backdrop of rising religious tensions, this article explores contemporary civil society views on religious freedom in Bangladesh. It uses critical frame analysis of the corpus of civil society organizations’ (CSOs) submissions to the United Nations’ third cycle Universal Periodic Review (UPR), 2013–18. It provides a timely assessment of Bangladesh’s fulfilment of international obligations on religious freedom, and shows how the politicization of religion and the resultant conflict between ‘secularism’ and ‘extremism’ have been fuelling inter-communal tensions and religious intolerance. In particular, CSOs’ UPR submissions present powerful accounts of the principal human rights pathology affecting the country today, religious-based violence. This is accompanied by a narrative of police malpractice, judicial failings, discrimination, oppression and incitement. A further key finding is ‘situated knowledge’ or first-hand accounts of legal restrictions and government repression of civil society organizations. Consonant with the classical work of liberal theorists, we argue that unprecedented importance now attaches to safeguarding civil society criticality in order to defend religious freedom and uphold human rights in the Republic.     

Structural injustice and the legitimacy of the state-centric system

ABSTRACT

Catherine Lu’s seminal Justice and Reconciliation in World Politics is right to stress the enduring nature of some colonialist structural indignities. It is less clear, however, if structural injustices justify Lu’s demand for revolutionary changes of the global order. Before transforming the pluralist state-centric system, we need transparent criteria that help us agree on the severity of structural injustices. Considering Lu’s strong focus on the colonialist origins of contemporary injustices, one would also like to know if and how their historical background affects their present moral status. The essay concludes that, in a multicultural global society with diverse moral values, we should focus on tackling the most glaring injustices and on rectifying those where accountabilities are least controversial.     

Herbert’s Herbivore: One-Dimensional Society and the Possibility of Radical Vegetarianism

Abstract

Careful reading of Herbert Marcuse’s texts, including Counterrevolution and Revolt, One-Dimensional Man, An Essay on Liberation, and Eros and Civilization, reveals his subtle attention to the human–animal dialectic and its role in human liberation. More specifically, animals mark the irrationality of advanced industrialized society for Marcuse, and his subtle but keen treatment of the animal question in politics provides an opening to radically rethink politics for animals and humans. Working from Marcuse’s critical theory, I explore the contemporary one-dimensional animal, which I argue imbricates both animals and humans in the violence and destruction that characterizes advanced industrial society. Using Marcuse’s concept of one-dimensional society and his discussion of animals as my theoretical framework, I specifically consider vegetarianism in its capacity to militate against the contemporary political economy of meat. I conclude that Marcuse’s insights point to a radical vegetarianism aligned with anti-capitalist politics that offers the development of sensuous, pleasurable, life-affirming sensibilities that support true liberation for both animals and humans.     

Debt,Development and Intervention in Africa: The Contours of a Sovereign Frontier

Abstract

This paper argues that the concept of the sovereign frontier can help us think about sovereignty and intervention in a way that moves beyond some of the limitations usually associated with the former concept. Focused on a zone of practice, embedded in a broader ‘movement’ of Western expansion, the sovereign frontier highlights political practices of subordination and incorporation that characterize the sway of intervention in contemporary African states. These concepts are sketched out with reference to more concrete practices of intervention in African states – especially ‘governance states’ – and critical commentary is drawn therefrom. The main argument here is that a series of ostensibly less intrusive forms of aid policy-making are enabled by a constitutive inequality within the sovereign frontier and work towards a more profound and effective projection of external power within it. The paper concludes by suggesting that the intrinsic expansiveness of the sovereign frontier offers few possibilities for the attainment of alternative sovereignties to those shaped by Western institutions.     

The Politics of Postcapitalism: Labour and our Digital Futures

This article introduces the special issue on the politics of postcapitalism. Considering the theoretical foundations, empirical perspectives and political ramifications of claims made about a coming ‘post-work’ or ‘postcapitalist’ society, it maps existing debates through a discussion of two key recent texts, Paul Mason’s Clear Bright Future and Aaron Bastani’s Fully Automated Luxury Communism. It first surveys how the relationship between labour market trends, technological change and wider political-economic shifts is articulated in the postcapitalist literature. It then explores how concepts from Marx are deployed to depict social relations as a constraint on technological development and its utopian potentialities, leading to political demands for new class actors and electoral blocs centring on the new forms of economic and political activity associated with digital networks. It also considers the role of the state and how this theoretical and political approach envisions historical change, situating utopian visions of an incipient postcapitalist alternative to capitalism within the contemporary political context of authoritarian populism and challenges to liberal democracy. Finally, it explores the continuing relevance of humanism as a critical counterpoint to the social and philosophical agenda of present day ‘posthumanism’. It concludes that, in unfavourable political conditions, it would be strategically unwise to stake too much on an over-optimistic approach to the unfolding future. This outlook, it is suggested, carries considerable risks and consequences for a contemporary left in search of a viable electoral coalition and route back to power.     

Living in the world risk society

Abstract

In a world risk society, we must distinguish between ecological and financial dangers, which can be conceptualized as side effects, and the threat from terrorist networks as intentional catastrophes; the principle of deliberately exploiting the vulnerability of modern civil society replaces the principle of chance and accident.     

The Global South is dead,long live the Global South! The intersectionality of social and geographic hierarchies in global capitalism

Abstract

This article explores two critical approaches to the study of the continuing relevance of the North—South divide. One is based on a postcolonial politics of difference and stresses the fundamental geographic divergences between the North and South. The other, referred to as the global capitalism school, argues that the North—South divide is rendered obsolete by social divisions, represented by the rise of a transnational capitalist class. I criticize the former due to its dismissal of the idea of capitalism as a universal force. In regards to the latter, to determine whether the primary fault line in global capitalism revolves around transnationally organized classes, I conduct an interpretive analysis of the world views of capitalist elites in Latin America. My findings demonstrate the complex, intersecting nature of different axes of identity, and contradict this literature by suggesting the continuing relevance of a place-based North—South divide. In other words, neither position can by itself elucidate the contours of our contemporary global economic system. What I propose is a framework that captures the intersectionality between the social and geographic within a universal story of capitalist globalization. The key is to conceptualize how global capitalism operates as a universalizing force, but not a homogenizing one.     

Global citizenship as a national project: the evolution of segye shimin in South Korean public discourse

The idea of global citizenship in contemporary South Korean public discourse has revolved mainly around a national endeavor to boost the county's stature and competitiveness amid economic globalization. Based on a review of two decades of published media references to segye shimin (‘global citizen’ in the Korean language), this article shows that the specific usages of segye shimin – mainly by elites from government, academia, and journalism – underscore how the ‘developmental citizenship’ that marked South Korea's past authoritarian military regimes has carried on since the transition to civilian-led democracy. In contrast with the burgeoning academic discourse on cosmopolitanism that focuses heavily on moral responsibilities to humanity and the planet, South Korea's discourse of global citizenship has been closely aligned with neoliberalism and filled with exhortations to the domestic population to overcome numerous perceived liabilities seen as impeding the country's advancement. While global citizenship discourse in South Korea has emphasized top-down national strategic imperatives, a bottom-up approach to cosmopolitanism is also emerging as the country gains confidence and the notion of segye shimin gradually gains traction across the wider society.     

Institutionalized Intervention: The ‘Bunker Politics’ of International Aid in Afghanistan

ABSTRACT

Afghanistan has come to be seen as emblematic of the security threats besetting peace and security operations, and in this article we consider the response to such threats via the ‘bunkering’ of international staff. Drawing on an in-depth qualitative survey with aid and peacebuilding officials in Kabul, we illustrate how seemingly mundane risk management procedures have negative consequences for intervening institutions; for the relation between interveners and national actors; and for the purpose of intervention itself. Bunkering, we argue, is deeply political – ‘imprisoning’ staff behind ramparts while generating an illusion of presence and control for ill-conceived modes of international intervention.