Commentary on Political Economy

Monday 1 August 2011


One aspect that Stephens mentions but fails to confront in his Column is a point that Gavyn Davies also raises in his FT Blog: the fact that corporations use the mobility of capital across nation-states "to discipline" governments and force decisions on them. That is certainly right, and it is one more reason why any "action" must start directly at the politico-institutional level, and with a good dose of inter-national co-operation as well if it is to succeed. This militates in favour of international co-ordination and co-operation because it may help in future to limit the ability of capital to blackmail governments.

For the rest, we all know how increasingly political institutions are looking like "criminal associations", like sets of gangsters or bandits - starting from the Chinese Politburo all the way to the Capitol in Washington. The farce that goes by the name of "debt ceiling negotiations" is as evident an instance as we could get!

1 comment:

  1. So many enemies, so little time.

    What's needed is a detente. This would smooth over the wrinkles of antagonism.

    It would take the form of a balance of power. This would involve a power transfer. This is how it is done.