Is There an Opportunity to Establish the Social-Capitalism in the Post Socialist Transition?

Recently Claus Offe has put the question that concerns the fate of the European model of social capitalism: Can the model of social capitalism survive the European integration in the context of certain contemporary tendencies? Offe has presupposed that the mentioned model is challenged by the processes of globalization and the integration of the post socialist countries into the European Union. The working hypothesis of the article is that there is an opportunity to provide a coherent answer to this question. The article consists of two parts. In the first part the author starts with the Polanyis socio-economic theory and emphasises the importance of this approach for the analysing of the tendencies of capitalism in Western Europe and in the post socialist countries. The author argues that with the Polanyis theory we are able to explicate the forms of the embedded liberalism in Western Europe after 1945 and the orientation of non-embedded neo-liberalism and the functioning of the workfare state after the crisis of the Keynesian welfare state. Despite the tendencies of the globalisation projected by neo-liberalism, the central element of the social capitalism, namely, the welfare state, remains with the dimensions of the continuity. In the next part the author points out that there is an asymmetrical structure between the Western-Europe and non-Western part of Europe concerning the socialisation of capitalism. The neoliberalisation in accordance with the model of the transfer of ideal-type of capitalism is more strongly implemented in the countries of transition. In addition, the mentioned theoretical approach provides opportunities to explain the failures of implementing of neo-liberalism in the post socialist countries. On the basis of the endorsing of the socio-economic aspects we can adress the issue pointed out by Offe.Karl Polanyi, Transition, Social capitalism, Welfare state

Post-communist Welfare Capitalisms: Bringing Institutions and Political Agency Back In

This article explores the post-communist worlds of welfare capitalism in Central, Eastern and South Eastern Europe, including the successor states of the former Soviet Union. It discusses recent developments, whilst offering some additional theoretical reflections on the key factors that have shaped welfare state change over time. The text explores key institutional features characterising these worlds of welfare capitalism in transition. In order to highlight the actions of political elites in the market, we discuss the notions of “state-enabled”, “state-influenced” and “state-interfered” market economies. In this article, we introduce the term “captured welfare systems” to refer to the ways in which some states and political elites interfere in the market in order to capture resources. In the conclusion, we move beyond classical approaches to institutional change based on path-dependency and lock-in arguments, drawing attention to the importance of bringing institutions and political agency back into the analysis of welfare and its transformations.political economy of welfare capitalism, captured welfare system, Central and Eastern Europe, South Eastern Europe, former Soviet Union

Discussing the common(s) in neoliberal Capitalism: from Ontology to Politics

This article intends to think the relationship between neoliberal capitalism and the common(s). First, it ties to define the common both in ontological and political terms, stressing the similarities and differences between the common, commons and common goods. Then, it characterizes their relationship with neoliberal capitalism in terms of dispossession, expropriation and configuration. Finally, it discusses if the common can be thought as an alternative form of cooperation and self-government with regards to neoliberalism and to what extent it can be posed as a complete alternative to the state

4. Mercantilism

The rise of the national state and the expansion of Europe, which have just been described, were accompanied by the further development of commercial capitalism along lines already laid down in the later Middle Ages. The most notable fact about capitalism between 1500 and 1789 was its overall growth, not so much in the development of new techniques (at least not until the very end of the period) as in the wider use and elaboration of old ones. The New Monarchy and its successors afforded protection to businessmen and something resembling a national market. In addition, the government with its military and other needs sometimes provided business with its best customer. The expansion of Europe stimulated capitalism by greatly increasing the physical volume of trade. Beyond that, the larger stock of money, for which this expansion was primarily responsible, encouraged business by fixing a money economy more definitely on Europe, contributing to a rising price level, and making available a larger supply of capital in a convenient form. All in all, capitalism affected directly the lives of a considerably larger percentage of Europe\u27s population in 1789 than it did in 1500, although most of the Continent was still definitely agricultural. Moreover, by 1789 the spirit of capitalism was much more commonly accepted than it had been three centuries earlier. Those who desired it could even find the profit motive now couched in religious terms. [excerpt

Indian Capitalism: A Case that doesn’t Fit?

Abstract: This paper critically examines the ‘Varieties of Capitalism’ (VoC) School’s approach to constructing typologies of capitalisms with reference to the specific case of Indian capitalism. It emphasizes that two factors related to its origin and initial emergence remain crucial for explaining many of the key and sometimes very specific outcomes being generated by the operation of Indian capitalism in its current stage. These factors are, firstly, that Indian capitalism was born out of the womb of capitalist colonialism, and secondly, that no thoroughgoing agrarian transformation happened in India before or after independence. These have strongly conditioned capitalist development in India after independence, first under a more statist and protectionist regime till 1991 and subsequently under a more open and market‐oriented policy in the era of globalization. The transformational impact of this development has been consequently limited, even in comparison to other late‐industrializing Asian capitalisms, and insufficient to transcend these factors. Yet changes have happened over time, which lie behind the break state economic policy made with the past in 1991. The paper argues that such a combination of continuity and change poses some vexing problems for the characterization of contemporary Indian capitalism as a particular variety.Varieties of Capitalism; India; Third World

Comparative capitalisms, ideational political economy and French post-dirigiste responses to the global financial crisis

This article advances the case for the more systematic incorporation of ideational factors into comparative capitalisms analysis as a corrective to the rational choice proclivities of the Varieties of Capitalism approach. It demonstrates the pay-off of such an ideationally attuned approach through analysis of French capitalist restructuring over the last 25 years, placing it in comparative context. A modus operandi for such ideational explanation is elaborated through delineating different national conceptions of the market, and setting out their impacts on practices of market-making. The claim made in this article is that understanding the evolution of French capitalism requires recognition of the ongoing market-making role of the French State, in combination with the French conception of the market and its embedding within a social context characterised by the inter-penetration of public and private elitist networks of France's ‘financial network economy’ which remains substantially intact. The ideational dimension is crucial because French understandings of the market and competition, the ideational building blocks of market-making, inform French state interventions and leave footprints on French institutions and market structures, and the evolutionary trajectory of French capitalism. In charting this trajectory, this article deploys the concept of post-dirigisme. We map out the parameters and causes of the post-dirigiste condition in France through examination of French bond market development, privatisation, the shift from a government- to a market- dominated financial system, and French capitalism's internationalisation. It then uses post-dirigisme to explain French state responses to the financial crisis and the banking bailout, noting how state actors, in concert with the banking elites, actively facilitated dominant market positions of French international champions

Capitalism, Information and Democracy

Debate as regards the relation between democracy and information has been dominated by the concept of public sphere, one that has presupposed over recent decades state subsidy of information and communication resources. In contrast, this article reviews criticisms presented by pro-market analyses of inadequacies of state involvement. It proceeds to examine and engage their argument that capitalism is capable of meeting the informational needs of people when left to its own devices, especially in an era of new media developments. Capitalism can even be presented as an information system that is, in key respects, inherently democratic. The essay continues to address a further pro-market view, which suggests that concern for information in democracies is misplaced. This position contends that capitalism is crucial for liberal democracy, but that an information infrastructure - especially one subsidized by the state - is not vital for democracy's effective functioning. The policy advice of this position is unambiguous: keep the state out of information and communications domains

'Habitation vs. improvement' and a Polanyian perspective on bank bail-outs

The bank bail-outs enacted by the Brown government in the wake of the 2007 credit crunch have had a distinctive political character. Despite the government's pronouncements on the merits of swift and decisive interventions, I argue that this does not amount to a return to the interventionist regulatory form associated with post-war British welfare capitalism. The Polanyian distinction between 'habitation' and 'improvement' is used to show that the bail-outs were designed by contrast to defend the underlying deregulatory logic of the existing financial regime. The only real change of note was to uncover forcibly the often hidden influence of the state in the making and regulation of an ostensibly market-led neoliberalism and the creation instead of a much more overt state-led neoliberalism. Habitation strategies were incorporated into a structure of financial deregulation, making it more rather than less difficult to rejuvenate state capacities consistent with enhancing societal welfare. The bank bail-outs offered short-term salvation for distressed firms within the financial sector without providing the state with socialised control over the conduct of banking business in order to promote forms of social policy consistent with post-war British welfare capitalism