Neo-liberalism and Domestic Capital: The Political Outcomes of the Economic Crisis in Thailand

The 1997 economic crisis in Thailand provided an opportunity for a reinvigoration of neo-liberal economic policies. International financial institutions, together with Thailand's Democrat-led government, emphasised further market reforms, liberalisation, deregulation, decentralisation, privatisation and a reduced role for the state. The deep economic downturn saw a popular rejection of such policies, meaning that the neo-liberal interregnum was short-lived. The 2001 landslide electoral victory of the Thai Rak Thai Party symbolised the intensity of opposition to neo-liberalism. It also showed that national governments remain critical in shaping markets and that domestic economic actors continue to have significant political roles. In Thailand, far from neutering domestic capital's political capacity, the crisis and opposition to neo-liberalism saw this enhanced. One reason for this was that neo-liberal restructuring was not simply about the efficient operation of the market. Rather, it demanded a fundamental transformation of the operations of government and of the ways that business was organised and conducted. This threatened domestic capital. Its economic survival required that it seize the state so that it could control economic policy-making. This was achieved through the Thai Rak Thai electoral victory and its subsequent rule, where the protection of domestic capital's interests was achieved through a re-negotiation of its social contract with other classes.     

Divergent politico-legal responses to past presidential corruption in Zambia and Kenya: catching the ‘big fish’, or letting him off the hook?

The criticisms of globalisation and international institutions often confuse the current state of multilateralism and its asymmetrical organisation; the economic theories it uses (the ‘Washington consensus’); and the reforms it promotes, such as liberalisation. Economic stagnation, however, has many causes other than the multilateral organisations’ reforms, which may have little impact on growth. These reforms may be efficient, irrelevant or powerless vis-à-vis the other determinants of growth. The paper discusses the several determinants of growth other than policy reforms, such as countries' structural and institutional characteristics, and analyses the consequences of reforms, in particular trade liberalisation. These consequences constitute a challenge to the credibility of reforms, but may also lead to deeper thinking about the determinants of economic growth and further developmental reforms.     

Transition to a market economy and sustained growth. Implications for the post-Washington consensus

Transition to a market economy is a lengthy process comprised of various spheres of economic activities. The belief that a market economy can be introduced by “shock therapy” is wrong, and in several cases has caused more problems than it has solved. Since a market economy requires adequate institutional structures, transition can be executed only in a gradual manner. Despite the fact that so-called Washington consensus, i.e. a set of policies aiming to shift from stabilization to growth, was developed without concern for post-socialist transformation, these ideas have significantly influenced the path of thought and action in Eastern Europe and the former Soviet Union. After a decade of transition and lasting depression, a new, post-Washington consensus is developing. Major policy conclusions suggest that the core of emerging consensus, also based on the lessons from transitions, is institutional building. Only with strong institutions can liberalization and privatization put emerging post-socialist markets on the path of sustainable growth. Yet, to accomplish such a task the policy reforms must also take into consideration the need for equitable growth and the new role of the state. The latter must not retire from economic activities, but ought to change its role to support the reforms and integration of the post-socialist countries into the world economy in the era of globalization, of which the post-communist transition is an important part.     

Flourishing retail in the post-soviet sphere? Potentials and constraints of small-scale retail activities in rural Kyrgyzstan

The demise of the USSR led to the collapse of its centrally organised retail system. With this collapse the supply of consumer goods dried up, especially in the remote parts of the former USSR. At the same time the advent of capitalism offered a new institutional framework for independent retail activities. In the Kyrgyz Republic, where the economic liberalisation followed strictly the Washington Consensus, a large number of small shops emerged in both urban and rural areas. This study analyses the reasons for this boom in retail start-ups as well as the constraints the mainly inexperienced merchants encounter. As will be shown, any success in retail activities depends greatly on the performance of other economic sectors. The main goal of starting a retail business is to minimize risks within the overall livelihood strategies of households in rural Kyrgyzstan.     

Embedded mercantilism and open regionalism: The crisis of a regional political project

This paper advances the argument that moves towards regional integration need to be understood as 'regional governance projects' undertaken by domestic actors and coalitions. Regional political projects--such as open regionalism--have roots in domestic structures, and it is this which defines the broad configuration of the regional political economy. On the basis of this framework the paper suggests, first, that the strategy of open regionalism was contingent on a particular configuration of power and interests in the domestic and external economy (embedded mercantilism). Second, this system of embedded mercantilism depended on a set of domestic coalitions between tradeable and non-tradeable sectors of the economy. The non-tradeable sector in Southeast Asia was entrenched within a particular system of political patronage. Third, the Asian crisis and other structural changes in the international economy have made these domestic coalitions less sustainable, thereby creating opportunities for new forms of regional governance projects.     

International financial governance in hard times: tracing the transformations

This article reviews the tenets of the intellectual consensus on how to organize the international financial system that came to crystallize at the end of the 1990s and the contestation of such a consensus in the aftermath of the global financial crisis of 2007–09. Illustrating the path of ideational transformation from the early 1990s until the present time, the article builds on recent constructivist works in international political economy that take economic ideas held by agents as the principal unit of analysis. In doing so, it brings to the surface both the substantive changes that had taken place in the principles underlying the governance of the international financial system and the dynamics of ideational change. Specifically, the article suggests a shift away from a governance project based on the dispersion of supervisory authority and finds that new policy ideas of regulation and political centralization have all been conceived with negative reference to the past.     

Building the Tamil Eelam State: emerging state institutions and forms of governance in LTTE-controlled areas in Sri Lanka

Sri Lanka's civil war has created a political – territorial division between the government of Sri Lanka and the Liberation Tigers of Tamil Eelam (ltte), where ltte is engaged in a process of state building within the areas they control. The article examines this state formation with an emphasis on the functions and forms of governance that are embedded in the new state institutions. It is observed that the emerging state formation has a strong focus on external and internal security, with an additional emphasis on social welfare and economic development. In terms of governance, the ltte state apparatus is marked by authoritarian centralisation with few formal mechanisms for democratic representation, but there are also partnership arrangements and institutional experiments that may foster more democratic forms of representation and governance. Hence, resolving the security problem in tandem with political transformations towards democratic governance remain prime challenges for peace building in northeast Sri Lanka.     

技术民族主义对全球价值链的影响分析——以全球半导体产业为例

目前,由新技术引发的新一轮产业革命正推动全球政治经济权力结构发生重大调整,围绕新技术特别是影响下一代生产方式的关键技术的竞争呈加速态势。在此背景下,技术民族主义作为一种新的地缘政治思潮快速兴起,并与大国传统战略博弈叠加,驱动全球技术主导国美国对中国的战略认知改变和战略行动升级。美国对中国实施的全面技术封锁与技术遏制战略行动,以影响和破坏全球半导体价值链和产业链最为典型,影响了全球重要产业链的正常运转,压制了全球技术链协同,并对未来全球政治经济治理带来更多不确定性风险。     

The capitalist conjuncture: over-accumulation,financial crises,and the retreat from globalisation

This article argues that the key crisis that has overtaken today's global economy is the classical capitalist crisis of over-accumulation. Reaganism and structural adjustment were efforts to overcome this crisis in the 1980s, with little success, followed by globalisation in the 1990s. The Clinton administration embraced globalisation as the ‘Grand Strategy’ of the USA, its two key prongs being the accelerated integration of markets and production by transnational corporations and the creation of a multilateral system of global governance, the pillars of which were the World Trade Organization, the International Monetary Fund and the World Bank. The goal of creating a functionally integrated global economy, however, stalled, and the multilateral system began to unravel, thanks among other things to the multiple crises created by the globalisation of finance, which was the main trend of the period. In response partly to these crises, partly to increasing competition with traditionally subservient centre economies, and partly to political resistance in the South, Washington under the Bush administration has retreated from the globalist project, adopting a nationalist strategy consisting of disciplining the South through unilateralist military adventures, reverting to methods of primitive accumulation in exploiting the developing world, and making other centre economies bear the brunt of global adjustments necessitated by the crisis of over-accumulation.     

RHODES' CONTRIBUTION TO GOVERNANCE THEORY: PRAISE,CRITICISM AND THE FUTURE GOVERNANCE DEBATE

This article discusses Rod Rhodes' contribution to governance theory. Rod Rhodes' work on governance has been much quoted. He has contributed to setting a new governance agenda and to an ongoing governance debate. This debate has also had an impact on political practice. However, as this paper argues, Rhodes' definition of governance is problematic in that it is narrowly identified with networks, and it is not consistently applied. Rhodes' concept of governance remains too narrow for it to be able to include a comparative analysis of a variation of governance forms. In addition, the governance concept needs to be equipped with tools from political economy in order be able to incorporate important aspects of interests, power and conflict. The way forward for governance theory would seem to involve the inclusion of political economy analysis of context as it affects beliefs and dilemmas.     

Religion,identity and politics in Tanzania

In Samuel Huntington's world of hostile civilisations, Tanzania would fall into the category of a torn country, a battle ground for the forces of African, Western and Islamic meta-cultures to expand their influence. On the surface, this might seem the case. Tanzania is an impoverished country where the benefits of economic liberalisation have reached only a narrow stratum and the fruits of political liberalisation are yet to be seen, placing severe strain on national social cohesion. There is certainly a possibility that pent up economic and political frustrations could be channelled into religious extremist movements. However, religion has not served as a primary fault-line for sustained political violence and conflict, although there are signs that this might be changing. In this paper we argue that uncovering and analysing these relationships elucidates how cross-cutting cleavages complicate the mobilisation of individuals and organised groups based on identity, not only in Tanzania, but in other societies as well.     

Marketing Malaysia as a model modern Muslim state: The significance of the 16th Commonwealth Games

Apart from illustrating the way in which the Malaysian government appropriated the Commonwealth Games as a global media spectacle, both to gain international publicity and as an opportunity to celebrate its multicultural national identity and thus 'market' Malaysia as a model modern Muslim society, this article highlights two issues in particular. First, through strategic organisation, Malaysia succeeded in making the Commonwealth Games a much more attractive event, infusing the Games with the kind of prestige usually reserved for major, first order events. Second, Malaysia's underlying political crisis, triggered by the Asian crisis, became more salient precisely because of the media interest generated by the Games. That these events prompted a return to authoritarianism brings into question the expectation that major games create spaces for political liberalisation and reform.     

Environmental politics in Chile: Legacies of dictatorship and democracy

Standing at the forefront of Latin America's political and economic liberalisation, Chile is held up as a model for the developing world. First in the region to embrace a boldly neoliberal development strategy, Chile's military dictatorship also peacefully gave way to stable, civilian rule and comparative economic success. However, the lens of environmental politics reveals a disturbing underside to the Chilean miracle. Environmental policy, institutions and participation are shaped and constrained by ominous legacies of history, dictatorship, and an economic orthodoxy inimical to sustainability. Democratic rule has opened political space, yet new environmental institutions and procedures exhibit inherited elitist and exclusionary features. Chile's environmental movement likewise demonstrates promise and innovation, but remains grounded in a civil society weakened and atomised by dictatorship and incomplete transition. Still, as the environmental costs of Chile's resource-extractive, export-led development mount, environmental politics may yet present a vital opportunity for social change.     

Only Full Integration Can Save Europe

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.     

Imperial governance,sovereignty and the management of chronic instability in Africa

An important political consequence of the crisis of capital in the 1970s has been an increasing intensification of informal imperialism within Africa. This paper argues that the advanced capitalist countries again confronted the endemic problem of overcapacity alongside a decline in the rate of profit and that the major neoliberal reforms foisted upon the African continent were part of the spatio-temporal fix that followed. The quotidian management of many African states was not an intended consequence of structural adjustment, but the subsequent perturbations that beset many developing countries after following such policies has led to such a degree of institutional instability that a new form of imperial governance has come into being. Juridical sovereignty has been maintained, but political sovereignty has been severely compromised through the emergence of this neo-imperial governance. Today an array of external actors is embedded in the sinews of these states, setting the general parameters of state policy to such an extent that one can no longer speak of these countries as possessing de facto independence. The rise of these so-called ‘governance states’ and the new emphasis on ‘governance with government’ constitute a new non-territorial, political form of imperialism.     

Dynamics of Indonesian democratisation

Financial sector liberalisation has led to market failure on a massive scale. In industrial countries market failure led to the Great Financial Crisis that erupted in 2007 and continues into its fifth year. In developing countries liberalised financial markets have failed to provide access to financial services for the vast majority of households and firms. Small and medium-sized enterprises (smes), which are critical for employment, income creation and economic development, are particularly excluded by liberalised private financial markets. Market failure necessitates government intervention. To enhance smes' financial access requires an activist role by governments—not only by ensuring an enabling policy framework and financial infrastructure for smes, but also by supporting direct provision of financial services through national development banks and directed credit programmes. More broadly the crisis also provides an opening for a neo-structuralist development paradigm to replace the failed Washington Consensus. In this context activist financial sector policies should be integrated with industrial sector strategies.     

Going South: capitalist crisis,systemic crisis,civilisational crisis

This article argues that the current protracted and severe financial and economic crisis is only one aspect of a larger multidimensional set of simultaneous and interacting crises on a global scale. The article constructs an overarching framework of analysis of this unique conjecture of global crises. The three principal crisis aspects are: an economic crisis of (over) accumulation of capital; a world systemic crisis (which includes a global centre-shift in the locus of production, growth and capital accumulation), and a hegemonic transition (which implies long term changes in global governance structures and institutions); and a worldwide civilisational crisis, situated in the sociohistorical structure itself, encompassing a comprehensive environmental crisis and the consequences of a lack of correspondence and coherence in the material and ideational structures of world order. In these ways, the global system is now `going south'. All three main aspects of the global crisis provoke and require commensurate radical social and political responses and self-protective measures, not only to restore systemic stability but to transform the world system.     

THE TRADITION OF MINISTERIAL RESPONSIBILITY AND ITS ROLE IN THE BUREAUCRATIC MANAGEMENT OF CRISES

This article explores the relationship between the United Kingdom's doctrine of ministerial responsibility and bureaucratic efforts to control four contemporary crises. Evidence emerges from a series of interviews with experienced crisis managers, which draws attention to the way in which this convention: (1) tacitly conditioned the thinking and behaviour of bureaucratic crisis actors through their sensitivity to political risk; and (2) was reinterpreted and utilized instrumentally by political and bureaucratic agents in response to the dilemmas posed by each crisis. The analysis of these themes connects governance and crisis literatures together by shedding light on the interaction between governance ‘traditions’, 21st century crisis episodes and the requirements of crisis management.     

How to Save Europe

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.     

A Robust Vision of Europe

The sovereign debt problem in Europe, ignited by Greece, has morphed into an economic crisis challenging the solvency of major banks and countries as well as a generalized crisis of governance. Lacking the legitimacy of public support, the leaders of the European Union's fledgling institutions have been indecisive and unable to contain the looming danger of financial contagion. Along with the economic slowdown in the United States, instability and volatility in Europe threaten to derail the fragile global recovery. In this section, several former European leaders as well as political figures from the emerging economies offer their ideas on how to fix Europe and stem the global threat.