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.     

From agricultural modernisation to agri-food globalisation: The waning of national development in Thailand

Agriculture has been central to accounts of Thailand's modernisation and the rise of the national development project between the 1940s and the 1970s. However, the role of agriculture in the waning of national development is rarely explored critically in the Thai context. This paper focuses on agriculture and the role of the state in the shift from national development to globalisation. The first part of the paper examines the beginnings of Thailand's modern agricultural sector, before turning to the state-sponsored diversification of agriculture in the 1950s. The paper locates shifting state responses to agriculture in the late 1950s and 1960s in the context of specific political and historical social forces, before exploring the emergence of agri-food exports in the 1970s and the rise of agribusiness in the 1980s and 1990s. The paper concludes by commenting on the significance of the Thai state's role in the national development project and the globalisation project.     

Chinese capitalism: Cultures,the Southeast Asian region and economic globalisation

Globalisation is often presumed to be an economically, socially and culturally homogenising force. The deterioration of capitalism's major rival in the early 1990s has paved the way for a truly global economy in which all participants increasingly operate under the general logic of capitalism-that is, a market-orientated system of production and exchange, private ownership and a flexible labour market predicated upon self-interest. Yet, while the pressures of globalisation are obviously formidable and increasingly felt by all, economic societies remain diverse and have responded to these pressures in unique ways. This article makes its case for the continued diversity of capitalism by emphasising the unique mode of economic organisation that has emerged in Southeast Asia; one rooted in the demands of globalisation as well as in the cultural foundations of the Overseas Chinese. The evolution of ethnic-Chinese business networks, which define Southeast Asia's political economy, constitutes a unique reaction to the pressures of globalisation and has laid the basis for a distinct articulation of capitalism in the region.     

Varieties and crises of neoliberal globalisation: Argentina,Turkey and the imf

Argentina and Turkey are two important ‘emerging market countries’ that experienced a major economic crisis during the same year. Focusing on the period leading up to the respective 2001 crises in the two countries, this article attempts to place the two experiments in historical perspective and provide an understanding of the common elements as well as the diversity of the neoliberal restructuring process in semi-peripheral settings. The article also attempts to identify some of the key mistakes made by the imf, which was, in part, responsible for the crises experienced. A central conclusion is that ‘new’ or unconsolidated democracies find themselves particularly vulnerable when they are suddenly and prematurely exposed to financial and capital account liberalisation. The outcome is a highly fragile, debt-led growth path with costly consequences. Indeed, although both countries have managed to accomplish impressive recoveries in the post-crisis period, given their past trajectories and the heavy debt burden that they face, it is too early to say that the recovery process will be translated into sustained and crisis-free growth. The regional environment in which the two countries find themselves might be particularly important in this context, with the powerful EU anchor a possible important advantage in the Turkish context.     

National development and the globalisation discourse: Confronting 'imperative' and 'convergence' notions

The Bonn Agreement of December 2001 lays the foundations for a political transition in Afghanistan after 23 years of war. The agreement excludes the defeated party, the Taliban, while seeking to commit the remaining groups to a long-term and loosely defined peace process. With Afghan regionally based political-military groups defined largely along ethnic lines, and closely linked to external powers, rebuilding national authority will be a slow and conflictual process. Rebuilding the coercive capacity of the state is essential to overcome strong centrifugal tendencies, yet must be timed so as not to get ahead of the restoration of legitimate political authority. International assistance can support the political recovery by being conscious of the need to neutralise the 'spoilers' of the peace process. Making haste slowly in aiding economic recovery can prevent armed competition for power at the centre. To promote this kind of transition, and promote Afghan influence in the peace-building process, the international aid community must fundamentally reorient the strategies and methods of past involvement in the country.     

Neoliberal globalisation,the nation-state and financial crises in the semi-periphery: A comparative analysis

The process of neoliberal globalisation has been associated with successive financial crises in the context of the 1990s, raising serious doubts concerning the sustainability of rapid growth in an environment of uncontrolled movements of short-term capital. The article probes into the origins of the financial crises in the semi-periphery through a structured comparison of three key recent crises in the world economy, namely the Mexican and Turkish crises of 1994 and the Asian crises of 1997. Whilst the magnitude of the capital flows and the dimensions of the subsequent crises are strikingly different, there are nonetheless important elements common to all three cases studied. One such common element involves the overdependence of the countries concerned on the short-term financial flows, in a setting characterised by premature capital account liberalisation in the absence of adequate regulation. It is striking that, contrary to the conventional IMF wisdom, financial crises have occurred in spite of 'sound fundamental', namely fiscal equilibrium and low inflation. The recent financial crises highlights a paradoxical situation: the need for effective regulation at a time when the capacity of the nation state to undertake the type of regulation needed severely circumscribed. Hence, the establishment of an effective regulatory framework at the global level emerges as a major requirement if successive financial crises, with significant economic and social cost, are to be avoided in the future.     

Before and after Dayton: The UN and NATO in the former Yugoslavia

Business managers name Africa's political instability as a key obstacle to economic development, but many companies continue to invest in Africa. The article explains this apparent contradiction by looking at the case of Shell in Nigeria. Nigeria experiences serious political instability, yet Shell is expanding its investment in the country. This article deals with sources of firm-specific political instability that have affected Shell in Nigeria in the past and attempts to explain why a specific corporation such as Shell may want to make investments in the country despite political instability. The examination of three different angles of Shell's activity, which forms the core of this paper, reveals that political instability does not hinder Shell from operating in Nigeria. Firstly, the international perspective illuminates in what way Nigeria may be more attractive to Shell than other countries. Profits in Nigeria appear to be higher than elsewhere, while Shell occupies a dominant market position unrivalled in most other countries. Secondly, the structural perspective illuminates the interconnectedness of Shell with state structures in Nigeria that may tie the company to Nigeria. Shell established a first mover advantage in the 1950s, since Nigeria was a British colony until 1960 and British oil companies were given preferential treatment. After independence, Shell managed to penetrate state structures which helped to hedge political risk in the country. Thirdly, the strategic perspective explores how Shell's strategic approaches may make political instability less significant to Shell. This article concludes that Shell has adopted to political instability. The conclusion that political instability can be conducive to business is significant since one expects political instability to be inherently harmful to business.     

The roots of Islamist popularity

In this article I will answer the question why, in the Islamic world, Islamist activism finds the support that it apparently does among segments of the general public of the various countries. In particular, the initial elements and circumstances that induce a person to support or even join an Islamist group are the subject of this study. After defining the notion of Islamism in the first section, I shall give an assessment of the popularity of Islamism. Following upon this, the third section will show that the conditionalities which drive a person towards an Islamist inclination or conviction cannot in the main have anything to do with the Islamic religion per se. Lastly it will be argued that these conditionalities are rather to be found in a wide array of interacting political, social, historical and economic factors.