Hostname: page-component-78c5997874-8bhkd Total loading time: 0 Render date: 2024-11-05T04:06:36.179Z Has data issue: false hasContentIssue false
  • English
  • Français

The Return of the State?

Published online by Cambridge University Press:  01 February 2011

Jacobus Delwaide
Jacobus Delwaide*
Affiliation:
Faculty of Economic, Political and Social Sciences and Solvay Business School, Vrije Universiteit Brussel, Pleinlaan 2, 1050 Brussels, Belgium. E-mail: [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

Massive government-financed rescue operations for banking and insurance industries in the United States and in Europe, seeking to contain the financial crisis that culminated in 2008, amounted to ‘the biggest, broadest and fastest government response in history.’1 This ‘great stabilisation,’ as The Economist called it, resulting in ‘quasi’ or ‘shadow nationalization,’2 cast doubt on the notion, fashionable at the height of the neoliberal wave, that the state was essentially on its way out, as many of its tasks and responsibilities were oozing steadily and irreversibly toward the market. The state and, by the same token, the political seemed back – with a vengeance, triggering solemn announcements of ‘the return of the state’ and ‘the end of the ideology of public powerlessness.’3 Observers concurred. ‘Free-market capitalism, globalization, and deregulation’ had been ‘rising across the globe for 30 years,’ yet that era now had ended: ‘Global economic and financial integration are reversing. The role of the state, together with financial and trade protectionism, is ascending.’4 Triggering a perceived ‘paradigm shift towards a more European, a more social state,’ even in the United States and in China, the crisis was seen to herald a move ‘back towards a mixed economy.’5 The question, meanwhile, remained: had the state indeed withdrawn as much during the neoliberal era as is often assumed?

Type
Focus: Globalization
Information
European Review , Volume 19 , Issue 1 , February 2011 , pp. 69 - 91
Copyright
Copyright © Academia Europaea 2011

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.)

References

1. The Great Stabilisation, The Economist, 383(8662, 19 December 2009), p. 13.Google Scholar
2. Rescue of Banks Hints at Nationalization, The New York Times, 16 January 2009, p. B1.Google Scholar
3.French President Sarkozy (2009) cited in Nicolas Sarkozy défend un Etat ‘entrepreneur’ et régulateur, Le Monde, January 8.Google Scholar
4.Altman, R. C. (2009) Globalization in retreat. Foreign Affairs, 88(4, July/August), pp. 2–7.Google Scholar
5.Rogoff, K., Yergin, D., cited in Bennhold, K. (2009) Is Europe’s welfare system a model for the 21st Century? International Herald Tribune, 27 January.Google Scholar
6.Gamble, A. (2009) The Spectre at the Feast: Capitalist Crisis and the Politics of Recession (Houndmills: Palgrave Macmillan), p. 13.CrossRefGoogle Scholar
7.Strange, S. (1996) The Retreat of the State: The Diffusion of Power in the World Economy (Cambridge: Cambridge University Press).CrossRefGoogle Scholar
8.Schmidt, V. A. (2009) Putting the political back into political economy by bringing the state back in yet again. World Politics, 61(3), pp. 516–546, 516, 519.CrossRefGoogle Scholar
9.Bobbitt, Ph. (2002) The Shield of Achilles: War, Peace and the Course of History (London: Penguin), pp. 213–242.Google Scholar
10.Scharpf, F. (1991) Crisis and Choice in European Social Democracy (Ithaca, NY: Cornell University Press); W. Streeck (1998) Industrielle Beziehungen in einer internationalisierten Wirtschaft. In U. Beck (ed.) Politik der Globalisierung (Frankfurt: Suhrkamp), pp. 169–202; Ph. G. Cerny (2000) Structuring the political arena: public goods, states and governance in a globalizing world. In: R. Palan (ed.) Global Political Economy: Contemporary Theories (London: Routledge), 21–35; S. Sassen (2006) Territory, Authority, Rights: From Medieval to Global Assemblages (Princeton, NJ: Princeton University Press), p. 196; W. Korpi (2003) Welfare-state regress in Western Europe: politics, institutions, globalization and Europeanization. Annual Review of Sociology 29, pp. 589–609; T. Kuen Kim and K. Zurlo (2009) How does economic globalisation affect the welfare state? Focusing on the mediating effect of welfare regimes. International Journal of Social Welfare, 18, pp. 130–141, 138–139.Google Scholar
11.Friedman, T. L. (1999) The Lexus and the Olive Tree: Understanding Globalization (New York: Farrar, Strauss & Giroux), p. 87.Google Scholar
12.Rodrik, D. (2000) Governance of economic globalization. In: J. S. Nye and J. D. Donahue (eds) Governance in a Globalizing World (Washington, DC: Brookings Institution Press), pp. 347–365, 354.Google Scholar
13.Rodrik, D. (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth (Princeton, NJ: Princeton University Press) ch. 7.CrossRefGoogle Scholar
14.Stiglitz, J. E. (2002) Globalization and its Discontents (New York: W.W. Norton), pp. 21–22.Google Scholar
15.Held, D. (1998) Democracy and globalization. In: D. Archibugi, D. Held and M. Köhler (eds) Re-imagining Political Community: Studies in Cosmopolitan Democracy (Stanford, CA: Stanford University Press), pp. 11–27.Google Scholar
16.Habermas, J. (1998) Die postnationale Konstellation: Politische Essays (Frankfurt: Suhrkamp) part II.Google Scholar
17.Rosenau, J. N. and Czempiel, E.-O. (eds) (1990) Governance Without Government: Order and Change in World Politics (Cambridge: Cambridge University Press).Google Scholar
18.Gilpin, R. (2001) Global Political Economy: Understanding the International Order (Princeton, NJ: Princeton University Press), pp. 377–403.CrossRefGoogle Scholar
19.Keohane, R. O. and Nye, J. (2000) Introduction. In: J. Nye and R. O. Keohane (eds) Governance in a Globalizing World (Washington, DC: Brookings Institution Press), pp. 1–41, 14. Also D. Rodrik (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth (Princeton, NJ), pp. 196, 205–211.Google Scholar
20. See, for example, Keane, J. (2003) Global Civil Society? (Cambridge: Cambridge University Press).CrossRefGoogle Scholar
21.Zürn, M. (1998) Regieren jenseits des Nationalstaates: Globalisierung und Denationalisierung als Chance (Frankfurt am Main: Suhrkamp), p. 254.Google Scholar
22.Slaughter, A.-M. (1997) The real new world order. Foreign Affairs, 76(5, September/October), pp. 183–197; A.-M. Slaughter (2005) A New World Order (Princeton, NJ: Princeton University Press).CrossRefGoogle Scholar
23. See, for example, Scholte, J. A. (2007) Civil society and the legitimation of global governance. Warwick: CSGR Working Paper No. 223/07, March.Google Scholar
24.Hurrell, A. (2005) Power, institutions, and the production of inequality. In: M. Barnett and R. Duvall (eds) Power in Global Governance (Cambridge: Cambridge University Press), pp. 33–58.Google Scholar
25.Ikenberry, G. J. (2003) What states can do now. In: T. V. Paul, G. J. Ikenberry and J. A. Hall (eds) The Nation-State in Question (Princeton, NJ: Princeton University Press), pp. 351–371.Google Scholar
26.Cohen, B. J. (2008) International Political Economy: An Intellectual History (Princeton, NJ: Princeton University Press), p. 119.CrossRefGoogle Scholar
27.Bobbitt, Ph. (2002) The Shield of Achilles: War, Peace and the Course of History (London: Penguin), p. 229.Google Scholar
28. See, for example, Gilpin, R. (2002) The Challenge of Global Capitalism: The World Economy of the 21st Century (Princeton, NJ: Princeton University Press); D. Rodrik (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth (Princeton, NJ: Princeton University Press), p. 20.Google Scholar
29.Campbell, J. L. (2003) States, politics, and globalization: why institutions still matter. In: T. V. Paul, G. J. Ikenberry and J. A. Hall (eds) The Nation-State in Question (Princeton, NJ: Princeton University Press), pp. 234–259, 246; P. Hirst and G. Thompson (1996) Globalization in Question: The International Economy and the Possibilities of Governance (Cambridge: Polity Press), p. 31; K. H. O’Rourke and J. G. Williamson (1999) Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy (Cambridge, MA: MIT Press); K. H. O’Rourke and J. G. Williamson (2000) When did globalization begin? (Cambridge, MA: National Bureau of Economic Research) NBER Working Paper W 7632.Google Scholar
30.Garrett, G. (1998) Global markets and national politics: collision course or virtuous circle? International Organization, 52(4, Fall), pp. 787–824, 790.CrossRefGoogle Scholar
31.Gilpin, R. (2001) Global Political Economy: Understanding the International Order (Princeton, NJ), p. 376. The torch of this ‘tragic Western experience’ may be taken over, Gilpin cautioned, by ‘the developing economies of Asia, Africa, and elsewhere.’CrossRefGoogle Scholar
32.Mosley, L. (2003) Global Capital and National Governments (Cambridge: Cambridge University Press), pp. 282–283.Google Scholar
33.Rodrik, D. (2000) Sense and nonsense in the globalization debate. In: J. A. Frieden and D. A. Lake (eds) International Political Economy: Perspectives on Global Power and Wealth (London: Routledge), pp. 461–470, 464.Google Scholar
34.Polanyi, K. (1957) The Great Transformation: The Political and Economic Origins of Our Time [1944] (Boston: Beacon);Google Scholar
Katzenstein, P. (1985) Small States in World Markets: Industrial Policy in Europe (Ithaca, NY: Cornell University Press);Google Scholar
Ruggie, J. G. (1994) Trade, protectionism and the future of welfare capitalism. Journal of International Affairs, 48(1, Summer), pp. 1–11, 11;Google Scholar
Garrett, G. (1998) Global markets and national politics: collision course or virtuous circle? International Organization, 52(4, Fall), pp. 787–824, 796, 798;CrossRefGoogle Scholar
Boix, C. H. (1998) Political Parties, Growth and Equality (Cambridge: Cambridge University Press), pp. 226–227;CrossRefGoogle Scholar
Swank, D. (1998) Funding the welfare state and the taxation of business in advanced market economies. Political Studies, 46 (4), pp. 671–691, 676–677;CrossRefGoogle Scholar
O’Rourke, K. and Williamson, J. G. (1999) When did globalization begin? (Cambridge, MA) NBER Working Paper W 7632;Google Scholar
Stiglitz, J. E. (2002) Globalization and its Discontents (New York: W.W. Norton), p. 47.Google Scholar
35.Rodrik, D. (1998) Why do more open economies have bigger governments? Journal of Political Economy, 106(5), pp. 997–1032, 998;CrossRefGoogle Scholar
Rodrik, R. (2000) Sense and nonsense in the globalization debate. In: J. A. Frieden and D. A. Lake (eds) International Political Economy: Perspectives on Global Power and Wealth (London: Routledge), pp. 461–470, 464–465.Google Scholar
36.Bhagwati, J. (2004) In Defense of Globalization (Oxford: Oxford University Press), p. 233.Google Scholar
37.Cohen, B. J. (2008) International Political Economy: An Intellectual History (Princeton, NJ: Princeton University Press), p. 156,CrossRefGoogle Scholar
Cohen, B. J. (2002) International finance. In: W. Carlsnaes, T. Risse and B. A. Simmons (eds) Handbook of International Relations (London: Sage), 429–447;CrossRefGoogle Scholar
also Weiss, L. (2003) Is the state being ‘transformed’ by globalisation? In: L. Weiss (ed.) States in the Global Economy: Bringing Domestic Institutions Back In (Cambridge: Cambridge University Press), pp. 293–317.CrossRefGoogle Scholar
38.Mosley, L. (2003) Global Capital and National Governments (Cambridge: Cambridge University Press), p. 24.Google Scholar
39.Flanagan, R. J. (2006) Globalization and Labor Conditions: Working Conditions and Worker Rights in a Global Economy (Oxford: Oxford University Press) chs 4, 6.CrossRefGoogle Scholar
40.Weiss, L. (1999) Globalization and national governance: antinomy or interdependence? In: M. Cox, K. Booth and T. Dunne (eds) The Interregnum: Controversies in World Politics, 1989–1999 (Cambridge: Cambridge University Press), pp. 59–88; T. Iversen and T. R. Cusack (2000) The causes of welfare state expansion: deindustrialization or globalization? World Politics, 52, pp. 313–349; E. Huber and J. D. Stephens (2001) Development and Crisis of the Welfare State: Parties and Policies in Global Markets (Chicago: University of Chicago Press); D. Swank (2002) Global Capital, Political Institutions, and Policy Change in Developed Welfare States (Cambridge: Cambridge University Press).Google Scholar
41.Swank, D. (2003) Withering welfare? Globalisation, political economic institutions, and contemporary welfare states. In: L. Weiss (ed.) States in the Global Economy: Bringing Domestic Institutions Back In (Cambridge: Cambridge University Press); M. Estevez-Abe, T. Iversen, and D. Soskice (2001) Social protection and the formation of skills: a reinterpretation of the welfare state. In: P. A. Hall and D. Soskice (eds) Varieties of Capitalism: The Institutional Foundations of Comprarative Advantage (New York: Oxford University Press), pp. 146–183, 176; T. Iversen (2005) Capitalism, Democracy, and Welfare (Cambridge: Cambridge University Press) ch. 2.Google Scholar
42.Kuttner, R. (2008) The Copenhagen consensus: reading Adam Smith in Denmark. Foreign Affairs, 87(2, March/April). Also M. Lykketoft (2009) Das Dänische Modell: Eine europäische Erfolgsgeschichte (Berlin: Friedrich Ebert Stiftung, December) www.fes.de/ipa. The historical experience of welfare state development, from Scandinavia to the United States, suggests that cultural homogeneity and stable ethnic relations have indeed enhanced social support for an encompassing welfare state. See H. Kitschelt (1995) The Radical Right in Western Europe: A Comparative Analysis (Ann Arbor: The University of Michigan Press), p. 263.Google Scholar
43.Ramesh, M. (2003) Globalisation and social security expansion in East Asia. In: L. Weiss (ed.) States in the Global Economy: Bringing Domestic Institutions Back In (Cambridge: Cambridge University Press), pp. 83–98.CrossRefGoogle Scholar
44.Nooruddin, I. and Simmons, J. W. (2009) Openness, uncertainty, and social spending: implications for the globalization-welfare state debate. International Studies Quarterly, 53(3), pp. 841–866.CrossRefGoogle Scholar
45.Plümper, T., Troeger, V. E. and Winner, H. (2009) Why is there no race to the bottom in capital taxation? International Studies Quarterly, 53(3), pp. 761–786.CrossRefGoogle Scholar
46.Boix, C. H. (1998) Political Parties, Growth and Equality: Conservative and Social Democratic Economic Strategies in the World Economy (Cambridge: Cambridge University Press), p. 225, G. Garrett (1998) Global markets and national politics: collision course or virtuous circle? International Organization, 52(4, Fall), pp. 787–824, 796, 818; S. Berger (2000) Globalization and politics. Annual Review of Political Science, 3, pp. 43–62, 56; D. Swank (2002) Global Capital, Political Institutions, and Policy Change (Cambridge: Cambridge University Press), p. 3; C. Hay (2006) What’s globalization got to do with it? Economic interdependence and the future of European welfare states. Government and Opposition, 41(1), pp. 1–22; V. A. Schmidt (2009) Putting the political back into political economy by bringing the state back in yet again. World Politics, 61(3), pp. 516–546, 525–538.CrossRefGoogle Scholar
47.Freeman, R. B. (2000) Are your wages set in Beijing? In: J. A. Frieden and D. A. Lake (eds) International Political Economy: Perspectives on Global Power and Wealth (London: Routledge), pp. 343–352;Google Scholar
Weiss, L. (1999) Globalization and national governance: antinomy or interdependence? In: M. Cox, K. Booth and T. Dunne (eds) The Interregnum: Controversies In World Politics, 1989–1999 (Cambridge: Cambridge University Press), pp. 76–77;Google Scholar
Rodrik, D. (2000) Sense and nonsense in the globalization debate. In: J. A. Frieden and D. A. Lake (eds) International Political Economy (London: Routledge), pp. 461–470.Google Scholar
48.Flanagan, R. J. (2006) Globalization and Labor Conditions: Working Conditions and Worker Rights in a Global Economy (Oxford: Oxford University Press), p. 182.CrossRefGoogle Scholar
49.Rodrik, R. (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth (Princeton, NJ: Princeton University Press), p. 202.CrossRefGoogle Scholar
50.Krugman, P. (1994) Competitiveness: a dangerous obsession. Foreign Affairs, 74(2, March/April), pp. 28–44; R. Gilpin (2001) Global Political Economy: Understanding the International Order (Princeton, NJ: Princeton University Press), p. 365.CrossRefGoogle Scholar
51.Sassen, S. (2006) Territory, Authority, Rights: From Medieval to Global Assemblages (Princeton, NJ: Princeton University Press), p. 315.Google Scholar
52.Flanagan, R. J. (2006) Globalization and Labor Conditions: Working Conditions and Worker Rights in a Global Economy (Oxford: Oxford University Press), p. 93.CrossRefGoogle Scholar
53.Gilpin, R. (2001) Global Political Economy: Understanding the International Order (Princeton, NJ), pp. 365–366; K. O’Rourke and J. G. Williamson (1999) When did globalization begin? (Cambridge, MA: National Bureau of Economic Research) NBER Working Paper W 7632, p. 93; D. Rodrik (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth (Princeton, NJ: Princeton University Press), p. 240.CrossRefGoogle Scholar
54.Flanagan, R. J. (2006) Globalization and Labor Conditions: Working Conditions and Worker Rights in a Global Economy (Oxford: Oxford University Press), pp. 5, 112; D. Rodrik (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth (Princeton, NJ: Princeton University Press), p. 241; R. Kuttner (2008) The Copenhagen consensus: reading Adam Smith in Denmark. Foreign Affairs, 87(2, March/April); S. P. Huntington (2004) Who Are We? America’s Great Debate (New York: Simon & Schuster).CrossRefGoogle Scholar
55.Flanagan, R. J. (2006) Globalization and Labor Conditions: Working Conditions and Worker Rights in a Global Economy (Oxford), p. 111.CrossRefGoogle Scholar
56. See, for instance, Bhagwati, J. (2004) In Defense of Globalization (Oxford: Oxford University Press), pp. 193, 244–252; D. Rodrik (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth (Princeton, NJ: Princeton University Press), p. 228.Google Scholar
57.Flanagan, R. J. (2006) Globalization and Labor Conditions: Working Conditions and Worker Rights in a Global Economy (Oxford: Oxford University Press), chs 2, 4, 7.CrossRefGoogle Scholar
58.De Bièvre, D. (2004) Governance in International Trade: Judicialisation and Positive Integration in the WTO (Bonn: Max Planck Institute for Research on Collective Goods, MPI Collective Goods Reprint No. 2004/7), pp. 6, 11, 14, 16.Google Scholar
59.Tarasofsky, R. G. (2005) Strengthening international environmental governance by strengthening UNEP. In: W. Bradnee Chambers and J. F. Green (eds) Reforming International Environmental Governance: From Institutional Limits to Innovative Reforms (Tokyo: United Nations University Press), pp. 66–62.Google Scholar
60.Keohane, R. O. and Nye, J. (2000) Introduction. In: J. Nye and J. D. Donahue (eds) Governance in a Globalizing World (Washington, DC: Brookings Institution Press), pp. 1–41, 31; E. Hartwick and R. Feet (2003) Neoliberalism and nature: the case of the WTO. The Annals of the AAPSS, 590 (November), pp. 188–211, 202; G. P. Sampson (2005) The World Trade Organization and global environmental governance. In: W. Bradnee Chambers and J. F. Green (eds) Reforming International Environmental Governance (Tokyo: United Nations University Press), pp. 124–149.Google Scholar
61.Charnovitz, S. (2005) A world environment organization. In: W. Bradnee Chambers and J. F. Green (eds) Reforming International Environmental Governance (Tokyo: United Nations University Press), pp. 93–123.Google Scholar
62.Levy, M. A., Keohane, R. O. and Haas, P. M. (1993) Improving the effectiveness of international environmental institutions. In: P. M. Haas, R. O. Keohane and M. A. Levy (eds) Institutions for the Earth: Sources of Effective International Environmental Protection (Cambridge, MA: MIT Press), pp. 397–426, 409; R. O. Keohane, P. M. Haas and M. A. Levy (1993) The effectiveness of international environmental institutions. In: P. M. Haas et al (eds) Institutions for the Earth; Sources of Effective International Environmental Protection, pp. 3–24; Ph. H. Pattberg (2007) Private Institutions and Global Governance: The New Politics of Environmental Sustainability (Cheltenham: Edward Elgar).Google Scholar
63.Sampson, G. P. (2005) The World Trade Organization and global environmental governance. In: W. Bradnee Chambers and J. F. Green (eds) Reforming International Environmental Governance (Tokyo: United Nations University Press), pp. 124–149; J. Pauwelyn (2005) Judicial mechanisms: is there a need for a World Environment Court? In: W. Bradnee Chambers and J. F. Green (eds) Reforming International Environmental Governance (Tokyo: United Nations University Press), pp. 124–149; J. Browne (2004) Beyond Kyoto. Foreign Affairs, 83(4, July/August), pp. 20–32, p. 21; D. G. Victor (2001) The Collapse of the Kyoto Protocol and the Struggle to Slow Global Warming (Princeton, NJ: Princeton University Press), p. 111; M. A. Levi (2009) Copenhagen’s inconvenient truth. Foreign Affairs, 88(5, September/October), pp. 92–104.Google Scholar
64.The New York Times (2009) Editorial: Copenhagen, and beyond. 21 December, p. A30.Google Scholar
65.Le Monde, (2009) Les affaires du monde soumises au tandem Chine-Etats-Unis, 20 December. China, one observer argued, seeing ‘its real common interest with other large developing countries such as India, Brazil, and South Africa,’ entered here into a form of alliance that is not new, as it ‘has long worked closely with India to hold global environmental negotiations hostage (such as the Montreal Protocol negotiations in the late 1980s) until it gets exactly what it wants.’ E. Economy (2009) Copenhagen: The Real China Take-Away. Council on Foreign Relations, Asia Unbound blog, 31 December. http://blogs.cfr.org/asia/2009/12/31/copenhagen-real-china-take-away/Google Scholar
66.Begley, S. (2009) Good riddance to Copenhagen. Newsweek.com, 18 December, www.newsweek.com/id/227515, citing David Victor.Google Scholar
67.Cohen, B. J. (2003) Monetary governance in a world of regional currencies. In: M. Kahler and D. A. Lake (eds) Governance in a Global Economy: Political Authority in Transition (Princeton: Princeton University Press), pp. 136–167; B. Eichengreen (2003) Governing global financial markets: international responses to the hedge-fund problem. In: M. Kahler and D. A. Lake (eds) Governance in a Global Economy (Princeton: Princeton University Press), pp. 168–198; W. Mattli (2003) Public and private governance in setting international standards. In: M. Kahler and D. A. Lake (eds) Governance in a Global Economy (Princeton: Princeton University Press), pp. 199–225.Google Scholar
68. E.-U. Petersmann (2001) Time for integrating human rights into the law of worldwide organizations: lessons from European integration law for global integration law. Jean Monnet Working Paper 7/01. http://www.jeanmonnetprogram.org/papers/01/012301.html; De Bièvre, D. (2004) Governance in International Trade: Judicialisation and Positive Integration in the WTO (Bonn: Max Planck Institute for Research on Collective Goods, MPI Collective Goods Preprint No. 2004/7), p. 5; http://papers.ssrn.com/sol3/papers.cfm?abstract_id=566501; D. De Bièvre (2007) The EU regulatory trade agenda and the quest for WTO enforcement. In: D. De Bièvre and C. Neuhold (eds) Dynamics and Obstacles of European Governance (London: Edward Elgar), pp. 77–93, 78; G. P. Sampson (2005) The World Trade Organization and global environmental governance. In: W. Bradnee Chambers and J. F. Green (eds) Reforming International Environmental Governance: From Institutional Limits to Innovative Reforms (Tokyo: United Nations University Press), pp. 124–149.Google Scholar
69.De Bièvre, D. (2004) Governance in International Trade: Judicialisation and Positive Integration in the WTO (Bonn: Max Planck Institute for Research on Collective Goods), pp. 10–11.Google Scholar
70.Levy, J. D. (2006) The state after statism: form market direction to market support. In: J. D. Levy (ed.) The State after Statism: New State Activities in the Age of Liberalization (Cambridge, MA: Harvard University Press), pp. 367–393, 368.CrossRefGoogle Scholar
71.Sassen, S. (2007) A Sociology of Globalization (New York: W.W. Norton) c. 7.Google Scholar
72.Weiss, L. (1998) The Myth of the Powerless State (Ithaca, NY: Cornell University Press), p. 38, W. D. Coleman (2003) Governing global finance: financial derivatives, liberal states, and transformative capacity. In: L. Weiss (ed.) States in the Global Economy: Bringing Domestic Institutions Back In (Cambridge: Cambridge University Press), pp. 271–292, 272, 289.CrossRefGoogle Scholar
73.Sassen, S. (1996) Losing Control? Sovereignty in an Age of Globalization. The Schoff Lectures (New York: Columbia University Press), p. 27; S. Sassen (2007) A Sociology of Globalization (New York: W.W. Norton), pp. 53–57.Google Scholar
74.Levy, J. D. (2006) The state after statism: from market direction to market support. In: J. D. Levy (ed.) The State after Statism: New State Activities in the Age of Liberalization (Cambridge, MA: Harvard University Press), pp. 367–393, 381.CrossRefGoogle Scholar
75.Levy, J. D. (2006) The state after statism: from market direction to market support. In: J. D. Levy (ed.) The State after Statism (Cambridge, MA: Harvard University Press), pp. 367–393, 371–372, citing A. Gamble (1994) The Free Economy and the Strong State (Houndmills: Macmillan) and S. Vogel (1996) Freer Markets, More Rules: Regulatory Reform in Advanced Industrial Countries (Ithaca, NY: Cornell University Press).CrossRefGoogle Scholar
76.Gamble, A. (2009) The Spectre at the Feast: Capitalist Crisis and the Politics of Recession (Houndmills: Palgrave Macmillan), p. 90, referring to M. Moran (2003) The British Regulatory State: High Modernism and Hyper-Innovation (Oxford: Oxford University Press).CrossRefGoogle Scholar
77.Gamble, A. (2009) The Spectre at the Feast (Houndmills: Macmillan), pp. 88, 96.CrossRefGoogle Scholar
78.Gamble, A. (2009) The Spectre at the Feast (Houndmills: Macmillan), p. 83.CrossRefGoogle Scholar
79.Gamble, A. (2009) The Spectre at the Feast (Houndmills: Macmillan), pp. 63, 82.CrossRefGoogle Scholar
80.Gamble, A. (2009) The Spectre at the Feast (Houndmills: Macmillan), p. 95.CrossRefGoogle Scholar
81.Polanyi, K. (1957) The Great Transformation: The Political and Economic Origins of Our Time [1944] (Boston: Beacon).Google Scholar
82. ‘In the contemporary era, as in the industrial revolution, the state has played a vital role in the construction of the digital economy through policies of deregulation, market-making, and reregulation.’ Zysman, J. and Newman, A. (2006) The state in the digital economy. In: J. D. Levy (ed.) The State after Statism: New State Activities in the Age of Liberalization (Cambridge, MA: Harvard University Press), pp. 271–300, 279.Google Scholar
83. Cf. Elliott, D. J.and Baily, M. N. (2009) Telling the narrative of the financial crisis: not just a housing bubble. The Brookings Institution, 23 November. http://www.brookings.edu/~/media/Files/rc/papers/2009/1123_narrative_elliott_baily/1123_narrative_elliott_baily.pdfGoogle Scholar
84.Wallison, P. J. (2009) Cause and effect: government policies and the financial crisis. Critical Review, 21(2–3), pp. 356–376.CrossRefGoogle Scholar
85.Jablecki, J. and Machaj, M. (2009) The regulated meltdown of 2008. Critical Review, 21(2–3), pp. 301–328.CrossRefGoogle Scholar
86.Wolf, M. (2009) Fixing Global Finance: How to Curb Financial Crises in the 21st Century (New Haven: Yale University Press), p. 195.Google Scholar
87.Underhill, G. R. D. and Zhang, X. (2008) Setting the rules: private power, political underpinnings, and legitimacy in global monetary and financial governance. International Affairs, 84(3), pp. 535–554, 536.CrossRefGoogle Scholar
88.Kern, A., Dhumale, R. and Eatwell, J. (2006) Global Governance of Financial Systems: The International Regulation of Systemic Risk (Oxford: Oxford University Press), p. 252, See also H. Davies and D. Green (2008) Global Financial Regulation: The Essential Guide (Cambridge: Polity).Google Scholar
89.Bernanke, B. (2009) Extended interview. Time.com, 16 December, http://www.time.com/time/specials/packages/printout/0,29239,1946375_1948023_1947253,00.htmlGoogle Scholar
90.Bini Smaghi, L. (2009) Why global rules to prevent another crisis are so elusive. Europe’s World (Autumn) http://www.europesworld.org/NewEnglish/Home_old/Article/tabid/191/ArticleType/articleview/ArticleID/21485/Default.aspx; also K. Dervis (2009) Developing economies can help cure global imbalances. FT.com, 28 December, http://www.ft.com/cms/s/0/1e2af6aa-ed8e-11de-ba12-00144feab49a.htmlGoogle Scholar
91. Bernanke warns on imbalance risks. Financial Times, 19 October 2009, http://www.ft.com/cms/s/0/b54963ee-bcc6-11de-a7ec-00144feab49a.html?nclick_check=1Google Scholar
92.Bernanke, B. S. (2010) Speech to the American Economic Association, quoted in Lax oversight caused crisis, Bernanke says. The New York Times 4 January, p. A1, The Federal Reserve chairman specified: ‘Stronger regulation and supervision aimed at problems with underwriting practices and lenders’ risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates.’Google Scholar
93.Bernanke, B. (2009) Extended interview. Time.com, 16 December, http://www.time.com/time/specials/packages/printout/0,29239,1946375_1948023_1947253,00.htmlGoogle Scholar
94.Stiglitz, J. E. (2009) The anatomy of a murder: who killed America’s economy? Critical Review, 21(2-3), pp. 329–339, 338.CrossRefGoogle Scholar
95.Zingales, L. (2009) Capitalism after the crisis. National Affairs (Fall), pp. 22–35, 31–34. With its March 2009 Public-Private Investment Program, Zingales noted, the Obama administration ‘set up the most generous form of subsidy ever invented for Wall Street,’ essentially giving private investors in toxic assets ‘a subsidy of $2 for every dollar they put in.’ Federal Reserve Chairman Bernanke, for his part, felt the need to point to the support given to small business and to emphasize: ‘I was a professor. I never worked for Wall Street. I have no connections on Wall Street. In fact, when I first became chairman, I was criticized in some quarters for not being close enough, or knowing enough about Wall Street.’ Extended interview. Time.com, 16 December 2009, http://www.time.com/time/specials/packages/printout/0,29239,1946375_1948023_1947253,00.htmlGoogle Scholar
96. In the US, this share rose from 10% in the early 1980s to 40% in 2007. Other aspects of ‘financialization’ were ‘the growing proportion of profits that nonfinancial firms…were making from financial transactions and investments,’ sometimes estimated to run as high as 40% during the 2000s, from 10% in the 1950s and 1960s – a broad trend across OECD countries, and the growing emphasis on the maximization of shareholder value by firms’ managers. Deeg, R. and O’Sullivan, M. A. (2009) Review article: the geopolitical economy of global financial capital. World Politics, 61(4), pp. 731–763, 756–757.CrossRefGoogle Scholar
97.Friedman, J. (2009) A crisis of politics not economics: complexity, ignorance, and policy failure. Critical Review, 21(2–3), pp. 127–183, 133–135.CrossRefGoogle Scholar
98.Elliott, D. J.and Baily, M. N. (2009) Telling the narrative of the financial crisis: not just a housing bubble. The Brookings Institution, 23 November. www.brookings.edu.Google Scholar
99.Sinclair, T. (2005) The Masters of Capital: American Bond Rating Agencies and the Politics of Creditworthiness (Ithaca, NY: Cornell University Press), p. 5, cited in B. J. Cohen (2008) International Political Economy: An Intellectual History (Princeton, NJ: Princeton University Press), p. 117.Google Scholar
100.Gamble, A. (2009) The Spectre at the Feast: Capitalist Crisis and the Politics of Recession (Houndmills: Palgrave Macmillan), p. 152.CrossRefGoogle Scholar
101.Deeg, R. and O’Sullivan, M. A. (2009) Review article: the geopolitical economy of global financial capital. World Politics, 61(4), pp. 731–763, 750.CrossRefGoogle Scholar
102.Schmidt, V. A. (2009) Putting the political back into political economy by bringing the state back in yet again. World Politics, 61(3), pp. 516–546, 539.CrossRefGoogle Scholar
103. The British prime minister, Gordon Brown, called in October 2008 for a ‘global way of supervising our financial system,’ turning the IMF into an international central bank and placing financial supervision in the hands of an international body, proposals which ‘were met with some halfhearted support, notably in Europe…’ Acharya, V. V., Wachtel, P. and Walter, I. (2009) International alignment of financial sector regulation. In: V. V. Acharya and M. Richardson (eds) Restoring Financial Stability: How to Repair a Failed System (Hoboken, NJ: Wiley), pp. 377–376, 373; L. Bini Smaghi (2009) Why global rules to prevent another crisis are so elusive. Europe’s World (Autumn), www.europesworld.org.CrossRefGoogle Scholar
104.Eichengreen, B. and James, H. (2001) Monetary and financial reform in two eras of globalization. In: M. Bordo, A. M. Taylor and J. M. Williamson (eds) Globalization in Historical Perspective (Chicago: University of Chicago Press), pp. 37, 39.Google Scholar
105.Thirkell-White, B. (2009) Dealing with the banks: populism and the public interest in the global financial crisis. International Affairs, 25(4), pp. 689–711, p. 710.CrossRefGoogle Scholar
106.Wade, R. (2008) Financial regime change? New Left Review, 53(Sept.–Oct.), pp. 5–21, 21.Google Scholar
107.Federal Reserve Chairman Bernanke (2009) Extended interview. Time.com, 16 December, http://www.time.com/time/specials/packages/printout/0,29239,1946375_1948023_1947253,00.htmlGoogle Scholar
108.Deeg, R. and O’Sullivan, M. A. (2009) Review article: the geopolitical economy of global financial capital. World Politics, 61(4), pp. 731–763, 735.CrossRefGoogle Scholar
109.Levy, J. D. (ed.) (2006) The State after Statism: New State Activities in the Age of Liberalization (Cambridge, MA: Harvard University Press).CrossRefGoogle Scholar
110.Posner, E. (2009) Making rules for global finance: transatlantic regulatory cooperation at the turn of the millennium. International Organization, 63(4), pp. 665–699, 694.CrossRefGoogle Scholar
111. See Waltz, K. (1970) The myth of national interdependence. In: Ch. P. Kindleberger (ed.) The International Corporation (Cambridge, MA: MIT Press), K. Waltz (1999) Globalization and governance. PS: Political Science and Politics, 32(4, December), pp. 693–700; K. Waltz (2000) Structural realism after the Cold War. International Security, 25(1, Summer), pp. 5–41; S. D. Krasner (1999) Sovereignty: Organized Hypocrisy (Princeton: Princeton University Press); J. J. Mearsheimer (2001) The Tragedy of Great Power Politics (New York: Norton), pp. 11, 18, 364.Google Scholar
112.Hurrell, A. (2005) Power, institutions, and the production of inequality. In: M. Barnett and R. Duvall (eds) Power in Global Governance (Cambridge: Cambridge University Press), pp. 33–58, p. 49.Google Scholar
113.Cohen, B. J. (2008) International Political Economy: An Intellectual History (Princeton, NJ: Princeton University Press), pp. 81, 175.CrossRefGoogle Scholar
114.Rodrik, R. (2000) Sense and nonsense in the globalization debate. In: J. A. Frieden and D. A. Lake (eds) International Political Economy: Perspectives on Global Power and Wealth (London: Routledge), pp. 461–470, p. 463.Google Scholar
115. M. Weber (2000) Wirtschaft und Gesellschatft, 5: Die Stadt [1922] (Tübingen: Mohr) ch. 2; Sassen, S. (2006) Territory, Authority, Rights: From Medieval to Global Assemblages (Princeton, NJ: Princeton University Press) ch. 2; D. Landes (1998) The Wealth and Poverty of Nations (New York: W.W. Norton) ch. 3; H. Spruyt (1994) The Sovereign State and Its Competitors: An Analysis of Systems Change (Princeton, NJ: Princeton University Press); B. Buzan and R. Little (2000) International Systems in World History: Remaking the Study of International Relations (Oxford: Oxford University Press); Ch. Tilly (1990) Coercion, Capital, and European States, AD 990–1990 (Oxford: Blackwell); R. Jackson (2007) Sovereignty: The Evolution of an Idea (Cambridge: Polity); B. Anderson (2006) Imagined Communities: Reflections on the Origin and Spread of Nationalism (London: Verso); A. Marx (2003) Faith in Nation: Exclusionary Origins of Nationalism (Oxford: Oxford University Press); E. Weber (1976) Peasants into Frenchmen. The Modernization of Rural France, 1870–1914 (Stanford, CA: Stanford University Press).Google Scholar
116.Brooks, S. and Wohlforth, W. C. (2000/2001) Power, globalization, and the end of the Cold War. International Security, 25(3, Winter), pp. 5–53.CrossRefGoogle Scholar
117. Rendering highly developed states less susceptible to conflict, developing states more. Brooks, S. G. (2005) Producing Security: Multinational Corporations, Globalization, and the Changing Calculus of Conflict (Princeton: Princeton University Press).CrossRefGoogle Scholar
118.Mastanduno, M. (2009) System maker and privilege taker: U.S. power and the international political economy. World Politics, 61(1, January), pp. 121–154, 154.CrossRefGoogle Scholar
119.Ikenberry, G. J. (2001) After Victory: Institutions, Strategic Restraint, and the Rebuilding of Order After Major Wars (Princeton, NJ: Princeton University Press) chs 6 and 7.CrossRefGoogle Scholar
120.Cohen, B. J. (2008) The international monetary system: diffusion and ambiguity. International Affairs, 84(4), pp. 455–470, 458.CrossRefGoogle Scholar
121.Cohen, B. J. (2008) International Political Economy: An Intellectual History (Princeton, NJ: Princeton University Press), p. 116.CrossRefGoogle Scholar
122.Ikenberry, G. J. (2001) After Victory: Institutions, Strategic Restraint, and the Rebuilding of Order After Major Wars (Princeton, NJ); D. A. Lake (2007) Escape from the state of nature: authority and hierarchy in world politics. International Security, 32(1), pp. 47–79.CrossRefGoogle Scholar