Responses to Financial Crises: An Evolutionary Perspective

As the world currently faces the ever-deepening sub-prime crisis, we are reminded that the process of globalisation can cause significant disruptions in global markets and political systems. This article focuses on the evolution of financial crisis responses to gain a better understanding of the dynamics affecting current responses. By using a focused comparison of case studies it argues that the development of crisis response and the dominance of the current multilateral actors is a result of an evolutionary process. This process privileges learning and innovation within a complex political economic system. The crises of each era, born of many of the same problems, generate a variety of responding actors, a few of which are adopted. These actors help to address the immediate problems and even work well for a while. Eventually, they are overwhelmed by the tendency of financial interactions to grow. Another set of crises generates another round of actors and mechanisms. As time goes on, crisis response requires more formal institutions that can deal with more complex systems. The article concludes that response actors are becoming more public, multilateral and global in scope. Understanding this pattern of response should help to shed light on the potential for reform of the financial architecture and help to explain the dominance of multilateralism as a crisis response.     

Book reviews

Christian Democracy in Western Germany. By Geoffrey Pridham. London: Croom Helm, 1977. Pp. 371. £9.95.

The Power of the Purse: The Role of European Parliaments in Budgetary Decisions. By David Coombes et al. PEP, Allen &; Unwin, 1976. Pp. 393. £12.00.

Reaching Judgment at Nuremberg. By Bradley F. Smith. London: Andre Deutsch, 1977. Pp. xviii+349. Illus., Index, Biblio. £6.50.

Nemesis at Potsdam: The Anglo‐Americans and the Expulsion of the Germans. Background, Execution, Consequences. By Alfred de Zayas. London: Routledge and Kegan Paul, 1977. Pp. xxvii+268. £5.95.

Innen‐ und Aussenpolitik unter nationalsozialistischer Bedrohung: Deter‐minanten internationaler Beziehungen in historischen Fallstudien. Edited by Erhard Forndran, Frank Golczewski and Dieter Riesenberger. Opladen: West Deutscher Verlag, 1977. Pp. 361, DM 49.

The Illusion of Peace: International Relations in Europe, 1918–1933. By Sally Marks. London: Macmillan, 1976. Pp. 184; £5.95, £2.95 paper.

French Society 1789–1970. By Georges Dupeux. London: Methuen &; Co, 1976. Pp. ix+294. £7.50, Paperback £3.90.

Strategic de la grève. By Bertrand Badie. Paris: Presses de la Fondation Nationale des Sciences Politiques, 1977. Pp. xi+263. Fr. 78.

A Savage War of Peace: Algeria 1954–1962. By Alistair Horne. Mac‐millan 1977. Pp. 604. £8.95.

Les Politiques Extérieures Européenes dans la Crise. Edited by Alfred Grosser. Paris: Presses de la Fondation Nationale des Sciences Politiques, 1976. Pp. 198. Fr. 85.

L'Avenir est Notre Affaire. By Denis de Rougemont. Paris: Editions Stock, 1977. Pp. 375.

Les Sommets de l'Etat: Essai sur l'élite du pouvoir en France. By Pierre Birnbaum. Paris: Editions due Seuil, 1977. Pp. 188.

Planning and Politics: The British Experience 1970–76. By Michael Shanks. PEP, George Allen and Unwin, 1977. Pp. 142. £6.50 hardback, £2.95 paperback.

Politische Planungssyteme. Edited by Frieder Naschold and Werner Vath. Opladen: Westdeutscher Verlag, 1973. Pp. 478. DM. 19,80.

Einführung in das politische System der Bundesrepublik Deutschland. By Frank Pilz. Munich: Beck'sche Elementarbücher, Verlag C.H. Beck, 1977. Pp. 366. DM. 28,—.

Soziologie und Sozialpolitik. Edited by Christian von Ferber and Franz Xaver Kaufmann. Opladen: Westdeutscher Verlag, 1977. Pp. 649. DM. 64,—

The British Cabinet. By John P. Mackintosh. Stevens, 1977 (Third Edition). Pp. xv+656. £5.75.

The History of Political Thought: A Short Introduction. By R. N. Berki. London: J. M. Dent and Son, 1977. Bibliography and Index. Pp. vi+216. £2.95.

France Today: Introductory Studies. Edited by J. E. Flower. London: Methuen, 1977 (Third edition rev.). Pp. vi+190. £2.75 paperback.

Det utrolige dognet (The incredible day). By Bjorn Bjornsen. Oslo: Gyldendal Norsk Forlag, 1977. Pp. 304.     

Skin deep: Barthes,Lavater and the legible body

Much of the Indian debate about secularism is built around what seem to be commonsense assumptions about India and the West. But a close look at the impact of Protestant Puritanism on the relationship between religion and politics in the United States suggests that these assumptions are mistaken. Far from having fundamentally different experiences, there are some striking similarities between India and the United States: similarities that draw attention to potential long-term dangers for India.     

The Tribes that Bind: Yemen and the Paradox of Political Violence

Beset by multiple security challenges, not least the emergence of a powerful Al Qaeda franchise, Yemen appears the antithesis of the “Weberian” state model. But while these challenges are acute, they should be seen as part of a wider “political field,” dominated by powerful tribes and conditioned by patrimonial networks that have long framed the modes of political exchange between the center and periphery. This remains crucial to understanding the wider eddies of tribal politics in Yemen, and in turn, the limits of a purely military response by Washington as it seeks to confront Al Qaeda in the Arabian Peninsula.     

The Chilean big business lobby: a long-standing and major influence on public policy

Elements of the business lobby, particular sectors of big business and its peak associations, have been a continual influence, sometimes a dominant force, in Chilean politics since the second half of the 19th century. This prominence and sustained influence is particularly noteworthy since the 1930s, given the various forms of democracy experienced in Chile, the harsh military dictatorship of the 1970s and 1980s, and because the return to democracy in 1990 has meant increasing competition among interest groups. This article offers an explanation of the political significance of the big business community by reference to both common factors that shape the influence of business across political systems and especially the developments in Chile's political economy. Copyright © 2014 John Wiley & Sons, Ltd.     

Power groups,interests and interest groups in consolidated and transitional democracies: comparing Uruguay and Costa Rica with Paraguay and Haiti

Drawing on a representative sample of four countries, this article compares two related aspects of interest group activity across Latin America. First, it identifies the elements that determine the level of interest group system development and types of group activity across the region; and second it provides insights into the relationship of the level of institutionalization of a group system to the extent of the consolidation of democracy. The representative sample is composed of Uruguay and Costa Rica in comparison with Paraguay and Haiti. These are four countries with small populations that cover the spectrum of levels of socioeconomic and political development across Latin America, from Uruguay, one of the most developed, to Haiti one of the least developed. The article argues that across a spectrum of group development in Latin America, advanced systems have more or less integrated characteristics, whereas less developed ones manifest a dual or bifurcated group activity. Copyright © 2014 John Wiley & Sons, Ltd.