The normalizing role of rationalist assumptions in the institutional embedding of neoliberalism

The political economy of Britain over the past three decades provides an interesting example of the consolidation, normalization and institutionalization of a new economic paradigm – neoliberalism. As such, it serves as a potentially instructive focus for debate both about the conditions under which economic paradigms are replaced and consolidated and the evolution of such paradigms through the process of institutionalization. In this paper I suggest that the institutionalization of this new economic paradigm has been associated with the shift from a normative to a normalized and necessitarian neoliberalism. I examine the role played by rationalist assumptions in this extended process of normalization-institutionalization. After presenting a stylized account of the evolution of British neoliberalism, I show how New Labour's monetary policy regime is the heir to the legacy of monetarism and its agenda of labour-market reform is the heir to Thatcherism's supply-side economics. I suggest that the time-inconsistency thesis and the business school globalization thesis have played an equivalent role, for New Labour, to that played for the new right by monetarism and supply-side economics in legitimating neoliberalism. In this way neoliberalism has been normalized. In the final sections of the paper I reflect on the implications of the normalized and necessitarian character of neoliberalism in Britain for its contestability and for democratic economic governance more broadly.     

Reviews

Books reviewed:
Hassig Time, History and Belief in Aztec and Colonial Mexico
Baskes Indians, Merchants, and Markets: A Reinterpretation of the Repartimiento and Spanish-Indian Economic Relations in Colonial Oaxaca, 1750–1821
Caldeira City of Walls: Crime, Segregation, and Citizenship in São Paulo
Caulfield In Defense of Honor: Sexual Morality, Modernity, and Nation in Early-Twentieth-Century Brazil
Earle Rumours of Wars: Civil Conflict in Nineteenth-Century Latin America
Clarke Class, Ethnicity, and Community in Southern Mexico: Oaxaca's Peasantries
Jones and Munck, (eds) Cultural Politics in Latin America
CEDLA FRONTERAS: Towards A Borderless Latin America
Tulchin and Garland Social Development in Latin America. The Politics of Reform
Paley Marketing Democracy: Power and Social Movements in Post-Dictatorship Chile
Crabtree and Whitehead (eds) Towards Democratic Viability: The Bolivian Experience
Bailey and Godson (eds) Organized Crime and Democratic Governability: Mexico and the U.S.–Mexican Borderlands
Adams Dollar Diplomacy: United States Economic Assistance to Latin America
Smith (ed.) Democracy and International Relations: Critical Theories/Problematic Practices
Angell, Lowden Thorpe Decentralizing Development: The Political Economy of Institutional Change in Colombia and Chile
Itzigsohn Developing Poverty: The State, Labor Market Deregulation, and the Informal Economy in Costa Rica and the Dominican Republic
Nencel Ethnography and Prostitution in Peru
Potter Deeper than Debt: Economic globalisation and the poor     

Carlos Saúl Menem: variations on the theme of populism

The labels neopopulist and/or neoliberal have been attached to Latin American political leaders in an effort to understand the post‐transition to democracy experiences. This article examines the appropriateness of such labels in the Argentine context in the 1990s. It is argued that describing Carlos Menem as either neopopulist or neoliberal obscures rather than illuminates the vicissitudes along the path to establishing the institutions of liberal democracy, a commitment the Argentine electorate made in 1983. An old‐style populist at heart, Menem's pragmatic embrace of the neoliberal zeitgeist can only be understood in the context of the social, political and economic upheavals of the 1980s in Argentina.     

Policing neoliberalism in Egypt: the continuing rise of the ‘securocratic’ state

This article examines the increasing power of the police, their centrality to the reproduction of the neoliberal global order and their dynamic relationship with various elements of the ruling elite. It focuses on the case of the post-2011 uprising in Egypt to examine how the police institution has taken advantage of the uprising to increase its power and relative autonomy. The article demonstrates the centrality of the police to the Sisi regime’s efforts at reducing political discourse to an inflated and simplistic concept of ‘security’ in an attempt to establish its long-term legitimacy.     

State intervention and neoliberalism in the globalizing world economy: lessons from Singapore's regionalization programme

The recent 1997-98 Asian economic crisis has thrown Asia's divergent pathways to development into serious question. Protagonists of neoliberalism argue that their agenda is now becoming a global orthodoxy when several ailing Asian economies have accepted IMF packages which come with neoliberal economic programmes. Drawing on lessons from Singapore's regionalization programme, this article contends that it is far too early to conclude that Asian developmental states are giving up their governance of domestic economies. Instead, there is evidence that these Asian developmental states are re-regulating their domestic economies to ride out of the economic crisis. The article first starts with the debate between neoliberalism and state developmentalism in our understanding of global political economy. It then examines the political economy of Singapore's regionalization programme through which Singapore-based transnational corporations are strongly encouraged by the state to regionalize their operations, followed by a critical discussion of the impact of the recent Asian economic crisis on the re-regulation of the regionalization programme by the state in Singapore. Some lessons for Asian emerging economies are suggested in the concluding section.     

Resurgence of post-crisis neoliberalism: labor law reform and the return to “business as usual” in Lithuania

ABSTRACT

The economic crisis of 2008–2010 revealed the extreme vulnerability of Lithuania to global financial shocks. However, instead of reforming Lithuanian capitalism, the domestic political and business elites chose to write off the enormous social and economic costs incurred during the 2008–2010 crisis as an expense of continuing doing business in a way that was typical to the pre-crisis, booming years of ‘the Baltic tigers’ (2000–2007), i.e., relying on the unstable and inequitable growth model based on foreign capital inflows and remittances, suppressing and keeping wages and taxes on capital low and exporting cheap-skilled labour to the core EU countries. We illustrate this return to business as usual in Lithuania by analyzing the political process of contestation and eventual consolidation of neo-liberal consensus among domestic political actors that resulted in the passage of the new Labour Code enabling creation of ‘flexible’ labor markets. Social and political implications of the resurgent neoliberal hegemony in post-crisis Lithuania are discussed.     

Neopopulism and its limits in Collor's Brazil

The election of Fernando Collor de Mello as President of Brazil in 1989 was regarded as part of a new wave of neopopulist leaders in contemporary Latin America. The article explores the conditions of emergence of Collor's neopopulist project, the nature of his appeal and the causes of his downfall. The article argues that the emergence of Collor's neopopulist challenge was the result of a crisis of representation in Brazil's edging democratic order. The article concludes that Collor's demise from power in 1992 had to do with the precarious nature of his appeal and his failure to ground his project in a new set of political institutions.     

Hungary's punitive turn: The shift from welfare to workfare

The Hungarian post-communist welfare state was created under the neoliberal influence of international organisations while retaining lots of elements of solidarity. The growing social tensions in the mid-2000s due to a second economic crisis in the new millennium led first the left then the right wing governments to shift the post-communist welfare state into a punitive type of workfare system. The article concludes that the political populism of the mid-2000s leading to an undemocratic governance by the 2010s better explains this paradigm shift than – as many authors argue - the neoliberal influence frame.     

Neoliberalism: From New Liberal Philosophy to Anti-Liberal Slogan

In recent years, neoliberalism has become an academic catchphrase. Yet, in contrast to other prominent social science concepts such as democracy, the meaning and proper usage of neoliberalism curiously have elicited little scholarly debate. Based on a content analysis of 148 journal articles published from 1990 to 2004, we document three potentially problematic aspects of neoliberalism’s use: the term is often undefined; it is employed unevenly across ideological divides; and it is used to characterize an excessively broad variety of phenomena. To explain these characteristics, we trace the genesis and evolution of the term neoliberalism throughout several decades of political economy debates. We show that neoliberalism has undergone a striking transformation, from a positive label coined by the German Freiberg School to denote a moderate renovation of classical liberalism, to a normatively negative term associated with radical economic reforms in Pinochet’s Chile. We then present an extension of W. B. Gallie’s framework for analyzing essentially contested concepts to explain why the meaning of neoliberalism is so rarely debated, in contrast to other normatively and politically charged social science terms. We conclude by proposing several ways that the term can regain substantive meaning as a “new liberalism” and be transformed into a more useful analytic tool.