The great transformation and progressive possibilities: the political limits of Polanyi's Marxian history of economic ideas

Abstract

Polanyi's The great transformation remains one of the stand-out texts of twentieth-century political economy, yet it contains important conceptual ambiguities. Perhaps most significantly, the later chapters reveal the influence of Polanyi's own notion of an ‘always embedded economy’, whereas the earlier chapters are constructed around a much more abstract notion of ‘economy’ derived from an essentially Marxian history of economic ideas. Marx worked within the basic Ricardian conception of economy as a method of immanent critique, but then proceeded also to project that same conception backwards onto pre-Ricardian traditions of economics. Polanyi did likewise, I argue, consequently missing the opportunity to connect his own ideas about the non-market influences on all market outcomes to pre-Ricardian studies of the substantive basis of functioning economic relations. I use the following pages to try to restore one such link, in this instance to Adam Smith's account of the moral ‘sympathy’ underpinning the process of market co-ordination. This reconstruction also has implications for progressive possibilities today. Polanyian responses to the ongoing crisis have tended to be framed by the basic Ricardian conception of economy and have accordingly been restricted to a discussion of more market or less, more social protection or less, more austerity or less. By contrast, tracing the lineage from pre-Ricardian concerns to Polanyi's notion of an always embedded economy allows the potentially much more radical question to be asked of what sort of economic relations today best serve essential human needs.     

Jokes and their relation to the mode of production

Abstract

The governmentality literature offers a host of insights into liberal modes of government. A key theme in this literature is that the economy came to be seen as an autonomous domain requiring its own form of governmental reason. Yet the emergence of the economy has never been specified, in terms of both what would constitute an economy and how it was constituted. Instead, the appearance of an economy has been conflated with the general rise of liberal understandings of agency. In this paper I seek to provide an alternative and more precise account. This involves showing how the importance of Smith lies not so much in his formulation of a liberal version of agency, but in the disjunction he introduces between reason of state and political oeconomy. Crucially, despite his significance, Smith's arguments do not usher in an economy. For that event we have to wait for Ricardo's problematic of distribution. This alternative account is intended to weaken the association of the rise of liberal government with the emergence of the economy as an object of thought.     

The economy and the educational system in capitalistic societies

The purpose of this article is to analyse the relations between the educational system and economy in capitalist societies. The economy is conceived here in terms of its technical as well as its social relations. The analysis here is centered around the capitalist labour market rather than capitalist technical relations of production as is usual in the literature on the relations between the educational system and the economy. This article is a preliminary attempt to break out of both economistic and sociologistic conceptions which dominate the literature on education.     

Conceptualizing China–Latin America relations in the twenty-first century: the boom,the bust,and the aftermath

Despite the emergence of a rich literature on the rise of China in Latin America (LAC) since 2000, we are still grappling with this phenomenon. In this article we seek to theorize this expanding South–South relationship from two vantage points. First, from the perspective of China, we argue that, by necessity, the PRC has had to internationalize its development strategy in order to compensate for its serious natural resource deficit, feed the world's largest domestic population, and fuel the soon-to-be largest economy in the world. LAC has been just one slice of China's ‘go out’ strategy. Our second perspective probes the effect of China's entry into the region. Through the lens of development economics, we identify three separate political economy scenarios that have been accentuated within those countries that have the strongest economic ties with China. We rely on measures of institutional performance and macro-economic trends to illustrate the variable effects of China on LAC.     

The new Korean political economy: beyond the models of capitalism debate

Abstract

A key theme within the literature on the evolution of the Korean political economy since the 1997/8 crisis has been the extent to which Korea remains a ‘developmental state’ or has pursued radical neoliberal reform. These debates have not only reflected a concern with understanding the Korean economy but with a wider set of questions relating to the future of capitalist diversity within a globalized economy. By the late 1980s Korea had come to be regarded as a model of successful state-led late capitalist development. Korean modern economic history has insured that questions relating to the extent that it has pursued neoliberal reform have been of keen interest to students of political economy globally. This paper argues that substantive neoliberal reform has taken place in Korea since 1997. The thesis that a new ‘developmental state’ is in process of consolidating itself is simply wrong. However, the state's reform program interacted with material conditions and political coalitions at the meso level in a complex and uneven manner. In certain critical sectors, such as finance, a neoliberal regulatory regime has been consolidated. In others, such as telecommunications, developmentalist regulatory structures have proven to be highly resilient. In order to fully understand the complexity of the contemporary Korean political economy it is necessary, therefore, to prioritize the importance of meso-level analysis.     

A Green Post-capitalist Alternative to a System of Accumulation: A Bioregional Economy*

This paper explores capital accumulation as the engine of the capitalist mode of production. Accumulation drives the socio-economic damage caused by capitalism, as well as the environmental crises of land use, climate change and resource depletion. It may not be possible to address these problems within a reformed capitalism. Rather, such a goal can only be met within “a practical, workable post-capitalist and post-accumulative ecological economy, an economy by the people, for the people, that is geared to production for need, not for profit” [Smith, R. (2010). “Beyond Growth or Beyond Capitalism?” Real-World Economics Review 53: 28–42., 42]. This paper sets out a post-capitalist alternative, drawing from green economics and Marxian economics, that is, applied at a local and regional level.     

Comparative advantage and trade liberalization in China

The relevance of Ricardo's theory of comparative advantage to the design of trade policy by developing and socialist countries is the subject of heated argument, particularly among Marxists who have yet to produce a satisfactory theory of international exchange based on value analysis. The debates among economists in China on their country's ‘open-door’ policy revealed the complexity of the central and related issues. Besides the possibility of being exploited and becoming dependent on developed economies, on which theorists of unequal exchange have sounded a good many warnings, developing countries also face other problems and dangers when they allow themselves to be guided by Ricardo's doctrine in conducting external trade, as the Chinese experience of trade liberalization in 1979–85 vividly demonstrated. This paper first presents an interpretative summary of the debates among the Chinese economists and then analyses what went wrong in the process of liberalization.     

The law of value in Ricardo and Marx

A statement of Marx's law of value and the place which it occupies in the structure of his economic studies. A critique of the treatment of the law of value as found in the work of several writers—principally Maurice Dobb and Ronald Meek. The implications of this critique: an examination of Ricardo's method in the light of Das Kapital. The wider implications of the issues discussed for Marxist scholarship.     

From reproduction to production

The concepts of liberal economics, derived from the analysis of capitalist societies, are both inadequate and inappropriate for the analysis of precapitalist societies. Marx's analysis of primitive societies focused largely on the historical succession of modes of production rather than on their inner workings. What is needed is an analysis of the type which Marx made of capitalism.

The present analysis starts from Marx's distinction between land as subject of labour and land as instrument of production. Where the latter is the case (as in self-sustaining agricultural communities), the society is dominated by the production and reproduction of the material conditions of existence, of the community's members and of the structural organization; the relations of production and the organisation of the community are based upon control of the means of reproduction (subsistence and women) rather than the means of production.

The article concludes with a brief discussion of the way in which capitalism utilizes agricultural communities to provide, in part, for the reproduction of labour-power in the modern wage-labour economy.     

Callonistics: a disentanglement

A critical response is offered to the special issue of Economy and Society devoted to Michel Callon's economics. The continuing weaknesses of his approach, as adopted and adapted from actor-network theory and the study of science and technology, are highlighted, together with the weaknesses of the economics itself. In addition, the latter is shown to conform heavily with recent developments within and around mainstream economics. The conclusion that capitalism does not exist, and so does not need a political economy, is argued both to disarm social theory in face of the current, virulent assault from economics imperialism and to waste the opportunity to offer an alternative economics of its own.     

The Public Purpose of Political Economy

ABSTRACT

For too long the discipline of political science has ceded research on the dynamics of the national political economy to the field of economics. In this article, we explore the cost of this cession in the context of the public purpose. Following John Kenneth Galbraith, we define the public purpose in terms of its independence from the market economy and the planning system. Political scientists, and especially political theorists, are uniquely qualified to theorize power relations relative to a host of challenges that have emerged in today’s rapidly transforming national economies. Galbraith’s critique of mainstream economics, coupled with his understanding of power as an inescapable and perpetual dialectical process, provide guidance for theorizations that should attend to rather than deny the contested domain of the public interest and collective good.     

深化对劳动和劳动价值理论的认识应当澄清的若干问题（上）

马克思主义的劳动和劳动价值理论是一个内容极其丰富的科学体系，揭示了当时资本主义的生产方式的运行特点和基本矛盾。在我国当前新的历史条件下，如何深化对劳动和劳动价值理论的认识，尤其是如何在坚持马克思的劳动价值理论的基础上进行理论的发展和创新，不仅是一个重大的理论问题，更是改革开放和社会主义市场经济建设中的重要的实践问题。     

Marxism Beyond the Economy and Exploitation Beyond the Wage

Since its inception Marxism has largely operated with a narrow definition of the economy which closely resembles capitalism’s own, focusing on wage labor as the pre-eminent example of capitalist relations of labor. A century-long series of challenges from heterodox radical economists, including those based in feminism and anti-colonial theory, has yet to broaden this definition of capitalism, but the fading importance of wage labor and the advent of new forms of precarious labor relations may allow us to break the hold of restrictive ideas of the economy. A larger, more comprehensive concept of economics locates value production and material exploitation in many forms of labor in addition to waged work, and provides a theoretical platform for building solidarity among seemingly disparate movements and constituencies. Marxism can and must incorporate critiques if it is to have continuing relevance. In fact, Marx’s original understanding of capitalism included the concepts of primitive accumulation and the reproduction of labor power, allowing broader concepts of capitalist exploitation to be incorporated into the Marxist worldview. New insights into the essential nature of capitalism and new possibilities for organizing and change may emerge from this paradigm shift.     

Posner,Bentham and the rule of economy

Law and economics is a prominent but understudied discourse of liberal government. This essay examines the work of Richard Posner, with special attention to his rediscovery of Jeremy Bentham as a founder of law and economics. Posner's new reading of Bentham accurately identifies Bentham as a fellow anti-juridical theorist of government and a fellow believer in the rule of economy. But Bentham's economy makes room for a range of disciplinary appropriations, and Posner's does not. Posner's economy is entirely defined and exhausted by a particular economic doctrine. The essay suggests that civil society has been over-emphasized in the literature contrasting classical and contemporary liberalism. Instead, it turns attention to a common understanding of law as a non-autonomous and flexible tactic of economic government and to the role of the various sciences that can inform it.     

Civil society in an age of globalization: A neo-Gramscian perspective

Abstract

Since the 1970s, the world has seen an intensification of the globalization processes of social relations, an intensification that has direct implications for the study of contemporary world politics. One important aspect of such implications concerns the emergence of new actors in world politics, not just in national terms, but also at the local, regional and global levels—in other words, approaching the global political economy as a whole. In some sense, it is possible to say that dominant and dominated social groups are being influenced and are influencing such globalization processes, so at present it would be possible to note the rising of a transnational fraction of the capitalist class and the rise of a globalized resistance within the ambit of a civil society influenced by globalization processes. Therefore, the objective of the current article is to analyze the transformation process of social forces in an age of the intensification of globalization of social relations. Put another way, the article assesses the transformations of civil society in an age of globalization that present new dilemmas and possibilities to the collective political agency in the twenty-first century.     

Better by design: Korea's neoliberal economy

Abstract

This paper examines the processes of bank and corporate restructuring in South Korea since the 1997–98 economic crisis, and seeks to highlight how the state has intervened in a highly dirigiste manner in order to expedite restructuring in both the commercial bank and corporate sectors. At the same time it demonstrates the clear neoliberal principles that have underpinned the state's attempts to promote restructuring. The state has shown a clear determination to take action against insolvent firms and financial institutions no matter how large or strategically important they may be, to impose hard budget constraints on key economic actors. Furthermore, the state has actively sought to engineer the sale of key domestic firms and banks to foreign investors. We argue that Korea's efforts to create a functioning neoliberal economy have been largely successful and are functional from the perspective of Korean capitalism, if not the perspective of individual Korean firms. Changes in the global economy in the two decades preceding the 1997–98 crisis imposed an increasingly inescapable pressure on the Korean state to effect a neoliberal transformation and Korea's future as a centre of capitalist accumulation has for some time been bound up with the success of the neoliberal project. In conclusion, this paper seeks to draw out the broader implications of this reading of the post-crisis restructuring programme for debates on global economic liberalization and the future of capitalist diversity.     

Politics of Violence

Abstract

Simon Critchley's Infinitely Demanding makes a timely contribution to contemporary debates in ethics and political philosophy. For all its originality, however, one can raise critical questions concerning Critchley's account of the forms of resistance possible within liberal democratic polities. In this article I question the adequacy of Critchley's ethically based neo-anarchism as a response to neo-liberalism, critically analysing the role of ideology in his account of the motivational deficit afflicting capitalist liberal democracies.     

Testing Ricardian equivalence under uncertainty

This paper uses experimental methods to analyze Ricardian equivalence when the probability of debt retirement is less than one. The results suggest that the presence of outstanding debt and the probability of debt retirement have a strong influence on savings behavior. When the probability of debt retirement is low, consumption by the current generation increases, as predicted by Keynesian theory. However, as the probability of debt retirement increases, bequests rise to offset the future generation's expected repayment liability, and deficit spending becomes much less expansionary, as predicted by Ricardian theory. In general, the average bequest is significantly larger when an outstanding debt is passed on to the next generation than when no debt exists, regardless of the probability of debt retirement. However, as long as there is some uncertainty about debt repayment, the presence of debt always stimulates some additional consumption, so that strong variants of Ricardian equivalence are not found.     

Lukács: the road to the Blum Theses

Lukács's Blum Theses (1928) have been celebrated as a turn away from his earlier sectarian utopianism and as an anticipation of the politics of the Popular Front. While sharing with Popular Frontism an emphasis on the merging of democratic and socialist struggles even in modern capitalist societies, Lukács is actually nearer to recent hagiography of the Popular Front than to the original article. For the Theses are essentially an argument for the philosophical necessity, not the conjunctural contingency, of this merging. This is made clear through an analysis of Lukács's theoretical writings contemporaneous with the Theses. The irony is that such a position is only sustained by Lukács preserving certain of the central elements of his earlier self-confessed ultraleftism, and combining them with new elements which are perhaps even more ultra-leftist in character.