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.     

Economic orthodoxy and the East Asian crisis

It is increasingly apparent that the Asian economic crisis has also led to a serious ideological crisis in the West. Before the collapse there was broad agreement among Western orthodox economists that developing countries should pursue a set of economic policies, often referred to as the 'Washington consensus', which included financial sector liberalisation, privatisation of state-owned enterprises, fiscal discipline and trade, exchange rate and foreign investment deregulation. Since the collapse, however, this consensus has broken down. This paper examines the emergence of the new so-called post-Washington consensus, with its emphasis on governance and social capital. The lexicon of the new policy paradigm underlying this new consensus includes civil society, safety nets, and, especially, governance, to be added to the conventional Washington terminology of open markets, deregulation, liberalisation and structural adjustment. Our central thesis is that this new post-Washington consensus is an attempt to place more emphasis on the political and institutional foundations for programmes of structural reform. However, it is also a kind of politics of antipolitics that attempts to insulate economic institutions from the process of political bargaining.     

Asia’s Conservative Moment: Understanding the Rise of the Right

ABSTRACT

Recent scholarship has identified a new era of post-democracy or democratic crisis in the West, characterised by the increasing resort to authoritarian measures and the erosion of mechanisms such as representative parties and unions that link citizens and social forces with the political process. Conservative political movements, right-wing governments and populism have also emerged in the democratic states of the Asia-Pacific. The existing literature, with its focus on the crisis of social democratic institutions and forms of representative politics, provides inadequate frameworks for explaining these trends in the region. This article suggests that a better way of understanding the emergence of these new forms of political regime in Asia is to locate the origins of democratic crises in processes of global capitalist transformation and political incorporation and disincorporation. The articles in this special issue show that previously dominant modes of incorporation are fracturing under the conditions of neo-liberal capitalist transformation. In the wake of this fracturing, political elites have struggled to created new forms of political incorporation. This has inadvertently resulted in the sharpening of the conditions that give rise to political crisis. The political responses to crises have predominantly been conservative and have led to attempts to restructure the state to limit dissent and electoral competition.     

Authoritarian Statism and the New Right in Asia’s Conservative Democracies

ABSTRACT

Across Asia there has been a shift to the right in important democratic polities. This article argues that this conservative or authoritarian shift reflects the emergence of a new form of political regime that Nicos Poulantzas characterised as authoritarian statism. This article presents a theoretical framework – with illustrative case studies of Japan and Korea – to understand the emergence of a distinctive brand of Asian authoritarian statism. These new trajectories of political regimes reflect interconnected political and economic crises of conservative capitalist democracies. These crises are the result of the fracturing of modes and mechanisms of political incorporation due to the transnationalisation of capital. It is argued that the inability of current modes of state intervention or political incorporation to manage these economic and political crises or secure political legitimacy for political projects to deepen market reform has led to a “crisis of crisis management” and the further weakening of the Japanese and Korean states.