Rethinking global market governance: Crisis and reinvention?

Politics and Society

Volumn 39, Issue 3, 2011, Pages 299-314

  Pinto, Sanjay ^a   Macdonald, Kate ^b   Marshall, Shelley ^c,d  

^a HARVARD UNIVERSITY   (United States)

^b UNIVERSITY OF MELBOURNE   (Australia)

^c MONASH UNIVERSITY   (Australia)

^d AUSTRALIAN NATIONAL UNIVERSITY   (Australia)

Author keywords

financial crisis; global governance; institutional reform

Indexed keywords

EID: 80052281437     PISSN: 00323292     EISSN: 15527514     Source Type: Journal    
DOI: 10.1177/0032329211415499     Document Type: Article

References (41)

1. Charles Kindleberger and Robert Aliber, Manias, Panics, and Crashes: A History of Financial Crises, 5th ed. (Hoboken, NJ: John Wiley, 2005).
2. Tamara Lothian and Roberto Unger, Crisis, Slump, Superstition and Recovery: Thinking and Acting Beyond Vulgar Keynesianism (2011), http://works.bepress.com/tamara_ lothian/10.
3. Raghuram Rajan, Fault Lines: How Hidden Fractures Still Threaten the World Economy (Princeton, NJ: Princeton University Press, 2010).
4. Gary Gereffi and Frederick Mayer, Globalization and the Demand for Governance(Geneva: International Institute for Labor Studies, 2006), pp. 39-58 in The New Offshoring of Jobs and Global Development by Gary Gereffi.
5. Karl Polanyi, The Great Transformation (Boston: Beacon, 2001).
6. Rawi E. Abdelal and John G. Ruggie, "The Principles of Embedded Liberalism: Social Legitimacy and Global Capitalism," in New Perspectives on Regulation, ed. David Moss and John Cisternino (Cambridge, MA: Tobin Project, 2009). As some interpreters of Polanyi have noted, his work contains two understandings of the embeddedness concept. One understanding is more quantitative, suggesting that the embeddedness of markets differs by degree. According to this understanding, less embeddedness implies that markets are governed more strongly by basic forces of supply and demand, rather than being submitted to the control of various social interests and institutions. A second understanding is more qualitative, related to Polanyi's contention that market activity is "always embedded" in the social, and implies that differences in kind need to be specified rather than merely distinguishing situations of more or less embeddedness. Both meanings are important, and we refer only to the first sense of the term in the main text largely for purposes of simplicity. See Fred Block, "Introduction," in Polanyi, Great Transformation; Kurtulus Gemici, "Karl Polanyi and the Antinomies of Embeddedness," Socioeconomic Review 6 (2008): 5-33.
7. Like the contributions by Ocampo and Wade, this introductory piece is focused largely on intergovernmental organizations. A more comprehensive discussion of international organizations would devote greater attention than we do to nongovernmental organizations.
8. John Gerard Ruggie, "International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order," International Organization 36, no. 2 (1982): 379-415.
9. Abdelal and Ruggie, "Principles of Embedded Liberalism."
10. J. F. J. Toye, Dilemmas of Development: Reflections on the Counter-revolution in Development Economics (Cambridge, MA: Blackwell, 1993).
11. Joseph E. Stiglitz, Globalization and Its Discontents (New York: Norton, 2002).
12. Robert Wade, "After the Crisis: Industrial Policy and the Developmental State in Low-Income Countries," Global Policy 1, no. 2 (2010): 150-61.
13. Kevin Gallagher, "Policy Space to Prevent and Mitigate Financial Crises in Trade and Investment Agreements" (G-24 Discussion Paper Series, United Nations Conference on Trade and Development, 2010). The United States in particular has pushed for less stringent capitals control in bilateral and regional agreements with other countries.
14. Ha-Joon Chang, Kicking Away the Ladder: Development Strategy in Historical Perspective (London: Anthem, 2002). Kevin P. Gallagher, "Understanding Developing Country Resistance to the Doha Round," Review of International Political Economy 15, no. 1 (2008): 62-85. Gallagher notes there is space for the use of industrial policy within the World Trade Organization. In particular the poorest countries are afforded a nontrivial measure of special and differential treatment. However, instruments such as export subsidies and local content rules are no longer permissible.
15. Dani Rodrik, "Growth after the Crisis," in Globalization and Growth: Implications for a Post-crisis World, ed. Michael Spence and Danny Leipziger (Washington, DC: Commission on Growth and Development, 2010), pp. 125-150.
16. Christina Romer, "Lessons from the Great Depression for Economic Recovery in 2009." Presented at the Brookings Institution, Washington, D.C., March 9, 2009.
17. Friedrich A. von Hayek and Bruce Caldwell, The Road to Serfdom: Text and Documents: The Definitive Edition, vol. 2, Collected Works of F. A. Hayek (New York: Routledge, 2008).
18. Ibid.
19. Abdelal and Ruggie, "Principles of Embedded Liberalism."
20. Polanyi, Great Transformation; K. Sabeel Rahman, "Conceptualizing the Economic Role of the State: Laissez-Faire, Technocracy, and the Democratic Alternative," Polity 43 (2011): 264-86.
21. Peter Evans, "Is an Alternative Globalization Possible?" Politics & Society 36, no. 2 (2008): 271-305.
22. Many have discussed possibilities for greater democracy at the global level. See, for example, Joshua Cohen and Charles F. Sabel, "Global Democracy?" NYU Journal of International Law and Politics 37 (2006): 763-97; Anne-Marie Slaughter, "Building Global Democracy," Chicago Journal of International Law 1, no. 2, 2000; pp. 223-229; Terry Macdonald and ate Macdonald, "Non-electoral Accountability in Global Politics: Strengthening Democratic Control within the Global Garment Industry," European Journal of International Law 17, no. 1 (2006). pp. 89-119.
23. David Held, Danny Quah, and Mary Kaldor, The Hydra-Headed Crisis, Global Policy (2010): Published February 28, 2010. Retrieved from: http://www.globalpolicyjournal.com/ articles/global-governance/hydra-headed-crisis
24. The Tobin tax idea was originally proposed by economist James Tobin in the early 1970s.
25. Amrita Narlikar, International Trade and Developing Countries: Bargaining Coalitions in the GATT & WTO, vol. 13, RIPE Series in Global Political Economy, Routledge/RIPE Studies in Global Political Economy (New York: Routledge, 2003).
26. At its founding, the G8 comprised six countries and was the G6.
27. Alice H. Amsden, The Rise of "the Rest": Challenges to the West from Late-Industrializing Economies (Oxford, UK: Oxford University Press, 2001).
28. It is worth noting, however, that the principles articulated by Wade could actually take voting shares away from small, poor countries. Wade argues that there needs to be a firmer basis for membership in any grouping such as the G20, and suggests that region, population size, and economic size as measured by GDP are all criteria that should be considered. Adopting these criteria would make the G20 more representative in important ways, but it would still leave the G20 as a forum for countries that are already influential and economically well off. This solution would not make space for less powerful countries that otherwise lack a voice in international fora.)
29. Rodrik, "Growth after the Crisis."
30. Sabeel Rahman, "Conceptualizing the Economic Role."
31. David Harvey, A Brief History of Neoliberalism (New York: Oxford University Press, 2005).
32. Jacob S. Hacker and Paul Pierson, "Winner-Take-All Politics: Public Policy, Political Organization, and the Precipitous Rise of Top Incomes in the United States," Politics & Society 38, no. 2 (2010): 152-204.
33. Devesh Kapur, "The IMF: A Cure or a Curse?" Foreign Policy 111 (1998): 114-29.
34. David Craig and Doug Porter, "Poverty Reduction Strategy Papers: A New Convergence," World Development 31, no. 1 (2003): 53-69.
35. Rhonda Evans and Tamara Kay, "How Environmentalists 'Greened' Trade Policy: Strategic Action and the Architecture of Field Overlap," American Sociological Review 73, no. 6 (2008): 970-91.
36. Steffen Bauer and Frank Biermann, "The Debate on a World Environment Organization: An Introduction," in A World Environment Organization: Solution or Threat for Effective Governance, ed. Bauer Steffen and Frank Biermann (Hants, UK: Ashgate, 2005), pp.1-23.
37. Gereffi and Mayer, "Globalization and the Demand for Governance."
38. Macdonald and Macdonald, "Non-electoral Accountability."
39. Rudd, "The Children of Gordon Gecko," The Australian, October 6, 2008, 8.
40. Granted, in Greece and other countries, austerity measures have pushed through by left and center-left governments.
41. Another criticism of many private governance initiatives involving developing country suppliers is that participation by workers is often minimal. The increased mobilization of industrial workers in China and other developing countries could help to alter this situation, raising prospects for new forms of international labor solidarity.