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.     

The scientific‐technological revolution,the forces of nature,and Marx's theory of value

ABSTRACT

Worker and environmental alliances are critical to advancing economic and environmental transformation, yet they have been very challenging to promote and sustain. This article analyzes these difficulties by providing a class analysis of “divide and conquer” strategies instigated by capitalist firms to subvert worker/environmental alliances. It situates the relationship between workers, environmentalist and capitalist firms in two historical contexts, namely of Keynesian welfare state capitalism and neoliberal capitalism. It highlights some contextual factors that shape “divide and conquer” strategies of capital—particularly the paradigm of economic growth characteristic of these historical periods. The conclusion contemplates some of the possibilities that a post-capitalist economy might provide for workers and environmentalists to rethink economic and ecological agendas without the distorting influence of the “divide and conquer” strategies employed by capitalist firms.     

Globalisation,Legitimacy, and Pacification: The Emergence of a Global Welfare Regime

The globalisation-induced rollback of social expenditures, and the concomitant increase in inequality and unemployment in developed as well as developing countries, are leading to a crisis of legitimacy for the national capitalist state and the capitalist system as whole. It is argued that the global capitalist class will attempt to offset this crisis of legitimacy through the development of a "global welfare regime" to perform the functions that the nation-state is increasingly unable to fulfil, namely, those of pacifying populations through the handing out of material and symbolic rewards. This article will formulate a working definition of legitimacy, show that this legitimacy is being threatened by globalisation, and then present empirical support for this hypothesis of a crisis of legitimacy. Finally, it will analyse in detail the policies of the international governmental organisations that are predicted to constitute a global welfare regime, showing that they are moving to shore up the faltering stability of unregulated global capitalism.     

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.     

Corporations and the law: Historical lessons for contemporary practice

Abstract

This article examines the role of the courts, especially the Supreme Court, in facilitating the development of a capitalist economy and enhancing corporate power. Theoretically, I employ an approach which treats the law as a constitutive process. I first survey key legal developments in the nineteenth century through which the courts fostered and nurtured the development of a capitalist economy. Then I analyze the post‐New Deal era, examining the transformation of economic doctrines by the Supreme Court to legitimate a newly emergent corporate‐administrative state. In the last part of the article I use this historical analysis to address contemporary issues for the Left of how to bring about fundamental change in the United States. I discuss the degree to which the law can be used as a means of progressive reform and how strategic legal choices are related to the debate about social movement, discourse, class‐based, and political strategies for change.     

A genealogy of corporate governmentality in the realm of the ‘merchant-king’: the Netherlands Trading Company and the management of Dutch paupers

Abstract

The emergence of the modern corporation occurs at the same time as that of the modern state and liberal governmentality, although its role in the development of ‘bio-power’ has not been carefully examined. This article examines the royal use of corporations to manage the poor through work creation schemes and hence effect a capitalist transformation of the eastern Netherlands; specifically, the creation of the Dutch textile industry. These work creation schemes drew on the cameralistic ‘police sciences’ that Foucault cites in his genealogy of bio-power. This article traces the means by which cameralistic disciplinary techniques for the control of paupers were adopted by entrepreneurs who replaced Willem I, the ‘merchant-king’ as the ‘visible hand of the market’. It highlights the origins of managerialism in ‘social’ not ‘political economy’.     

A Response to Giorgios Kallis’ Notions of Socialism and Growth

ABSTRACT

Kallis’ discussion of degrowth in a transition to socialism is misleading and substantially detached from the current context, especially with recurring cataclysms due to climate change and the requirements to implement a programme to prevent even worse outcomes while there is a narrowing window of opportunity to do so. The fallacies of Kallis’ arguments originate in his misinformed account of economic and physical growth relative to thermodynamics and ecological processes, his feeble grasp of capitalist relations, and his gross misrepresentation of socialist, and specifically ecosocialist, thought.     

What Is Political Science? What Should It Be?

This paper examines the five myths that govern political science: that it studies politics; that it is scientific; that one can study politics cut off from the other social sciences and history; that the state is neutral; and that the bulk of the work in the discipline furthers the cause of democracy. Within political science, there have been three main approaches to criticizing these myths: a moderate one that treats the elements in these myths as more or less disconnected; a radical one that sees a systemic connection between these elements; and a Marxist one that names this system "Capitalism" and privileges the role of the capitalist state in explaining both politics and political science.     

The fraying of the socio‐economic fabric of Hong Kong

Abstract

Since the 1980s, Hong Kong has undergone momentous socio‐economic changes, which in turn have greatly affected public attitudes toward society and the economy. Interpersonal trust and the sense of community have weakened. Hong Kong as a society is increasingly seen as unfair in the sense that it is not perceived as a land of opportunities for the hardworking. The capitalist rules of the game are increasingly considered by the people to be unacceptable. Public demands for more governmental intervention in the economy, particularly in the area of income redistribution, are increasingly raised. Nascent feelings of class antagonism are palpable as economic inequalities are getting worse. As social conflicts of various kinds proliferate, public anxieties about Hong Kong's fraying socio‐economic fabric have come to the fore. People expect the government and the legal institutions to strengthen social order. At the same time, however, public trust of all social, economic and social authorities is declining. Accordingly, as social discontent and anxieties accumulate, the socio‐economic system of Hong Kong will face serious challenge in the years ahead.     

Punk Subculture in Mexico and the Anti-globalization Movement: A Report from the Front

This article explores some strands of the current movement against capitalist globalization. It examines the affinity between punk subculture and autonomous politics taking the Mexican punk scene as an example. Based on participant observation it describes what Bourdieu would call the habitus of punk in Mexico. Recorded music, subcultural style and political ideas arrive into this habitus where they are selectively adopted. Thus, attempts to articulate punk in Mexico to the "anti-globalization" movement are somewhat different than in the United States and Canada.     

Enigma of all enigmas: Capitalist takeover? Assessment of the post-mao economic transformation

Post-Mao’s economic reforms have led many China analysts to observe that post-Mao China has been moving toward capitalism or “capitalist takeover” has occurred in post-Mao China. This observation has a significant implication both for the US foreign economic policy and in the study of regime change in post-Mao China. The purpose of this article is to revisit and reassess the economic transformation in post-Mao China to obtain a holistic understanding of the central reality in post-Mao China on the one side, while on the other to rebut the assertion of “capitalist takeover” in post-Mao China. Through a systematic survey of party documents, policy statements, leaders’ speeches, official newspapers and magazines, general academic studies on the post-Mao reform in English and in Chinese, this article examines the post-Mao economic transformation along the three key empirical dimensions in terms of systemic change: the existence of capitalist elements, the ownership structure, and the role of the market in the Chinese economy. The findings based on fresh empirical evidence suggest that China has not made any significant change from communism toward capitalism in any of those fields despite the considerable change made in the past 20 years. Sujian Guo was a former policy analyst at the Party Central Committee during 1987–1991. He is currently a Ph.D. candidate in Political Science at the University of Tennessee, Knoxville, writing a dissertation entitled “The Totalitarian Model Revisited: Assessing the Post-Mao Regime Change.” His areas of specialization are Comparative Politics, International Relations and Political Methodology. His research interests have focused on comparative communist and post-communist studies, democratic transition/democratization, regime change in post-Mao China, China/Asian politics. His publications include numerous articles in some of the above areas. His most recent articles appeared inCommunist and Post-Communist Studies, Issues & Studies, andJournal of Northeast Asian Studies.     

资本主义代议制民主政治制度的元批判——马克思《路易·波拿巴的雾月十八日》新释

《路易·波拿巴的雾月十八日》是多个学科公认的经典名著。但国内外学者对其的解读却往往囿于各自的学科意识,忽视了其作为一篇时事政治评论的创作初衷。基于政治事件史的视角,以马克思《资本论》中成熟的思想作为分析的出发点,能发现马克思在对阶级斗争和国家原理的分析过程中还揭示出了资本主义代议制民主政治制度的本质性缺陷,即"代表"的分裂问题;制度本身无法避免成为保守势力倒转历史车轮的工具;自由主义与民主主义无休止的斗争。这些缺陷使得资本主义国家在周期性经济危机的影响下一直无法摆脱政治困境的周期性反复。当代随着经济危机的反复爆发与萧条的普遍蔓延,各种"煽动者"又开始普遍在资本主义国家政坛上崭露头角,并导致了一系列"黑天鹅"事件的发生。此时重温《路易·波拿巴的雾月十八日》更应别有一番意趣。     

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.     

Commodity,gift and mass-gift: on gift–commodity hybrids in advanced mass consumption cultures

Abstract

Developing their earlier arguments against the centrality given to capitalist relations in economic analysis, J. K. Gibson-Graham's recent work has sought to outline the contours of a ‘postcapitalist politics’ based on a more diverse set of economic arrangements. Their aim is to go beyond the level of critique to explore economic alternatives; at the same time, their account is levelled at the pessimism of the ‘resigned’ left.     

The Global South is dead,long live the Global South! The intersectionality of social and geographic hierarchies in global capitalism

Abstract

This article explores two critical approaches to the study of the continuing relevance of the North—South divide. One is based on a postcolonial politics of difference and stresses the fundamental geographic divergences between the North and South. The other, referred to as the global capitalism school, argues that the North—South divide is rendered obsolete by social divisions, represented by the rise of a transnational capitalist class. I criticize the former due to its dismissal of the idea of capitalism as a universal force. In regards to the latter, to determine whether the primary fault line in global capitalism revolves around transnationally organized classes, I conduct an interpretive analysis of the world views of capitalist elites in Latin America. My findings demonstrate the complex, intersecting nature of different axes of identity, and contradict this literature by suggesting the continuing relevance of a place-based North—South divide. In other words, neither position can by itself elucidate the contours of our contemporary global economic system. What I propose is a framework that captures the intersectionality between the social and geographic within a universal story of capitalist globalization. The key is to conceptualize how global capitalism operates as a universalizing force, but not a homogenizing one.     

Not All are Aboard: Decolonizing Exodus in Joon-ho Bong’s Snowpiercer

This article interprets Joon-ho Bong’s Snowpiercer (2013) as a political allegory. First, we compare Bong’s film to Danny Boyle’s Sunshine (2007) and Christopher Nolan’s Interstellar (2014), two contemporaneous films about ecological crises. We argue that Snowpiercer exposes the limits of technocratic environmentalisms that obscure the links between ecological degradation, capitalist development, and colonial domination. Second, we put Bong’s film into conversation with autonomist Marxist and postcolonial accounts of social domination and transformation. We argue that Snowpiercer is about whether or not contemporary political economy has rendered the emancipatory strategies of recent centuries obsolete. Framed this way, the film proposes that global order is still capitalist and colonialist, but that Left projects must surpass state socialism and anti-colonial nationalism. What we call Bong’s “decolonial exodus” is the demand for a real alternative to both the ideology that there is no alternative to the existing order and the pseudo-alternative of authoritarian populism.     

Beyond the Developmental State: The Cultural Roots of "Guerrilla Capitalism" in Taiwan

This article seeks to contribute to the emerging literature on moving "beyond the developmental state" by tracing the important role of "guerrilla capitalism" in Taiwan's political economy. The success of small and medium enterprises (SMEs) with little linkage to the state in Taiwan strongly suggests that more than state leadership must have been involved in the island's "economic miracle." The SMEs are quite important for the overall economy, especiaiiy the export sector where they have long accounted for more than half of total exports. Their success has resulted from the practice of "guerrilla capitalism" which includes aggressive and even audacious pursuit of business opportunities, extreme flexibility in rapidly filling even small orders, atten tion to quality and design, audacious bidding, participation in complex networks of subcontracting, and only partial observation at best of government regulations and international laws, such as those regarding intellectual property rights. The emergence of guerrilla capifalism, in turn, can be explained by the long-sfanding challenge in Chinese history to "official" Confucianism by a "heterodox counterculture" that is quite conducive to entrepreneurship and small-scale business activities.     

Governing the future: the European Central Bank’s expectation management during the Great Moderation

Abstract

The experience of the global financial crisis has sparked renewed interest in the role of futurity in the capitalist economy in general and in the formation and coordination of expectations under uncertainty in particular. Economic sociologists have carefully studied the ‘defuturizing’ technologies devised by private actors, but have tended to neglect the increasingly pivotal part played by central banks. Political economists have had more to say on central banks, but have focused on institutional issues rather than on the concrete practices of central banking. Making an original contribution to both literatures, this paper traces the construction and subsequent evolution, up to 2007, of the European Central Bank’s communicative apparatus. Drawing on official documents and on interviews with both ECB staff and market participants, the paper shows how this apparatus created the conditions for the formation and coordination of private sector expectations. The insights from this empirical analysis into the performative dimensions of ‘credibility’ and ‘knowledge’ in monetary governance contribute directly to ongoing debates about the recent extension of the ECB’s communicative apparatus through forward guidance and quantitative easing.     

Red green prospects in Ireland

“Ireland is the “Emerald Isle” in popular imagination. There is certainly some truth in this, since of all European countries the Republic of Ireland is the least ecologically ravaged. Ireland has been spared many of the ecological problems that afflict other Western capitalist countries due principally to its relatively underindustrialized nature. It is therefore a rather special case in the general development of red!green political dialogue of the type that typifies the realignment of European oppositional politics along an emerging continuum stretching from red/green/new social movements to conservative/christian democratic/neo‐fascist parties. The decks have now been cleared for the construction of a viable Irish eco‐social politics.”