Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-26T07:01:33.092Z Has data issue: false hasContentIssue false

1 - NATIONAL GOVERNMENTS AND GLOBAL CAPITAL: A RECASTING

Published online by Cambridge University Press:  14 January 2010

Layna Mosley
Affiliation:
University of Notre Dame, Indiana
Get access

Summary

More recently, however, as the downward-ratcheting logic of electoral politics has placed a death grip on their economies, they [states] have become – first and foremost – remarkably inefficient engines of wealth distribution. … Moreover, as the workings of genuinely global capital markets dwarf their ability to control exchange rates or protect their currency, nation-states have become inescapably vulnerable to the discipline imposed by economic choices made elsewhere by people and institutions over which they have no practical control. … Second, and more to the point, the nation-state is increasingly a nostalgic fiction.

For creditor states, global finance is an opportunity moderated by a measured risk. For debtor states, it can be the new tyrant.

When throngs of protestors mobilized around the Free Trade Area of the Americas (FTAA) summit in Quebec, the World Bank/International Monetary Fund (IMF) meetings in Washington and Prague, and the World Trade Organization (WTO) ministerial meetings in Seattle, their target was economic globalization. Although these activists represented a variety of interests and viewpoints, they shared a refrain: a narrow set of political elites, corporations, and investors were directing globalization and global economic institutions, making them unaccountable and inherently undemocratic. In the financial realm, protestors contend that government economic policies are chosen largely by an “electronic herd.” This herd represents the twenty-first century analog to the British prime minister Harold Wilson's “gnomes of Zurich” (an epithet for Swiss currency traders, said to necessitate the 1967 devaluation of the pound) and to the 1980s' “bond market vigilantes.”

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2003

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×