Building a Sustainable Political Economy: SPERI Research & Policy – serie

Colin Hay argues that the crisis in which we are still mired is best seen as a crisis of growth and not as a crisis of debt. It is a crisis of and for an excessively liberalised form of capitalism and the Anglo-liberal growth model to which it gave rise.

What has gone wrong with economics? Economists now routinely devise highly sophisticated abstract models that score top marks for theoretical rigour but are clearly divorced from observable activities in the current economy. This creates an 'uneconomic economics', where models explain relationships in blackboard rather than real-life markets.

Britain remains mired in the most severe and prolonged economic crisis that it has faced since the 1930s. What would it take to find a new, more stable and more sustainable growth model for Britain in the years ahead? This important volume written by a number of influential commentators seeks to provide some answers.

The authors suggest that China's renewable energy system, the largest in the world, will quickly supersede the black energy system that has powered the country's rapid rise as workshop of the world and for reasons that have more to do with fixing environmental pollution and enhancing energy security than with curbing carbon emissions.

Craig Berry assesses UK economic policy in the wake of the financialcrisis through the lens of the austerity agenda, focusing on monetary policy,economic rebalancing, industrial and regional policy, the labour market,welfare reform and budgetary management. He argues that austerity is gearedtowards a resurrection of financialisation and the UK’s pre-crisis economic model,through the transformation of individual behaviour and demonisation of thestate. Cutting public spending and debt in the short term is, at most, asecondary concern for the UK policy elite. However, the underlying purpose ofausterity is frequently misunderstood due to its conflation with a narrowdeficit reduction agenda, not least by its Keynesian critics. Berry alsodemonstrates how austerity has effectively dismantled the prospect of acentre-left alternative to neoliberalism.

This book opens a window into how two ambitious countries – India and Brazil – are seeking to become knowledge powers in the 21st century. As the knowledge economy became the preferred way of conceptualising the economy and its future direction, in the more economically-advanced countries, our search for understanding also followed the same direction. This generated a body of work that has neglected countries that, like India and Brazil, are attempting to make the leap into knowledge economies. Muzaka explores these motivations and the ways in which they have inspired a number of institutional reforms in India and Brazil. The author offers an investigation of the role the state in shaping the respective intellectual property systems pertaining to the pharmaceutical and agro-biotechnology sectors and the multiple social conflicts that have unfolded as a result.

Britain remains mired in the most severe and prolonged economic crisis that it has faced since the 1930s. What would it take to find a new, more stable and more sustainable growth model for Britain in the years ahead? This important volume written by a number of influential commentators seeks to provide some answers.

This book opens a window into how two ambitious countries – India and Brazil – are seeking to become knowledge powers in the 21st century. As the knowledge economy became the preferred way of conceptualising the economy and its future direction, in the more economically-advanced countries, our search for understanding also followed the same direction. This generated a body of work that has neglected countries that, like India and Brazil, are attempting to make the leap into knowledge economies. Muzaka explores these motivations and the ways in which they have inspired a number of institutional reforms in India and Brazil. The author offers an investigation of the role the state in shaping the respective intellectual property systems pertaining to the pharmaceutical and agro-biotechnology sectors and the multiple social conflicts that have unfolded as a result.

‘This book is different from most other attempts to understand the politics of Indian economic development. Breaking down the last 65+ years of Indian development into several episodes of growth, it provides a rich set of insights into the political economy of the Indian development process and is a valuable addition to the literature.’ –Pranab Bardham, University of California, Berkeley, USA‘Sustained economic growth in the world's largest democracy is critically important to human well-being, but the ups and downs of growth in India are not well-understood. This book provides a fresh and insightful approach to understanding what drives the starts of booms and the onset of slowdowns.’ –Lant Pritchett, Harvard University, USA‘This is a little book with big arguments. The authors' explanation of the changing character of the deals done between political and business elites makes for the most original contribution to studies of the political economy of Indiandevelopment since Pranab Bardhan's seminal work of the early 1980s’ –John Harriss, Simon Fraser University, Vancouver, CanadaThis book moves beyond the usual economic analysis of the Indian growth story and provides a fresh perspective on the determinants of growth episodes in post-independence India, based on its political economy. Using a robust and novel technique, the authors identify four such episodes during this period. The first, running from the 1950s to 1992, was mostly characterized by economic stagnation, with a nascent recovery in the eighties. The second, covering the period 1993 to 2001, witnessed the first growth acceleration in the economy. A second acceleration ran from 2002 to 2010. The fourth and final episode started with the slowdown in 2010 and continues to this day. The book provides a theoretical framework that focuses on rent-structures, institutions and the polity, and demonstrates how changes in these can explain the four growth episodes. Kar and Sen argue that the transitions from one growth episode to another can be explained by the bi-directional relationship between growth outcomes and institutional arrangements, and by the manner in which institutional arrangements and their transitions are determined by the political bargains struck between the elite groups in Indian society.

This book analyses the changing nature of the British economy and the consequences of Brexit upon its place within the European economic space. The overhang from the global financial crisis, the Eurozone crisis, the political negotiation of prolonged economic downturn and now the spectre of ‘Brexit’ provide the backdrop for various forms of capitalist restructuring designed to restore competitiveness and prosperity. This re-structuring has clear implications for existing European growth models, the structural imbalances and inequalities which characterise the British economy, the fortunes of the City of London and competing financial districts internationally, and the prospective strategies of progressive politics in this context. Adopting a broadly critical political economy lens – which gives analytical weight to the relationship between economic and political dynamics – the book will draw on the research of eminent scholars to assess divergence in the foundations of economic competitiveness and their social repercussions.

The 2008 financial crisis rocked British capitalism to its foundations. More than a decade after the crash, the country is still dealing with its consequences. This book explores the extent to which British capitalism has been reconfigured in this tumultuous period. Advancing an in-depth analysis of the political economy of New Labour, the Coalition and the period after Brexit, the book argues that deep structural weaknesses have been re-embedded within British capitalism. The Coalition promised to eliminate the deficit in one parliament and to ‘rebalance’ the British economy. It did neither. Instead, real wages slumped, uneven development intensified and productivity stagnated. An era of volatile post-crisis politics - exemplified by Brexit, the May government and the rise of Corbyn - emerged in this context, threatening the foundations of the old order. This book is required reading for students and scholars interested in the fractious political economy of British capitalism after the crisis.“Lavery’s book on the flawed political economy of Britain’s hybrid variant of capitalism after the 2008 financial crisis is a tour de force. It is theoretically sophisticated, historically informed, conjuncturally nuanced, empirically robust and provides a solid basis for analysing developments following the Brexit debacle, whatever these might be.”—Bob Jessop, Lancaster University, UK“If you are not yet familiar with Scott Lavery’s work, you very soon will be, as it is becoming increasingly difficult to overlook. With a clear mastery of both the politics and the economics of Coalition attempts to reduce the size of the state, Lavery shows with compelling precision how far and how quickly post-crisis Britain travelled from New Labour’s previous ‘one nation’ approach to macroeconomic governance.”—Professor Matthew Watson, University of Warwick, UK“British capitalism was changed but not reformed after the financial crisis, and its deep pathologies now find expression in political volatility and ideological polarisation. In a persuasive and rich analysis Scott Lavery shows how we got to this point and what the future might hold.”—Andrew Gamble, University of Sheffield, UK

Wellbeing, resilience and sustainability are three of the most popular ideas in current usage and are said to represent a much-needed paradigm shift in political and policy thinking. This book is unique in bringing the three concepts together as representing a new trinity of governance. Here we introduce some of the commonalities between the ideas, particularly their concern with distinctive human capacities that shape who we are and that imply a particular relationship to our wider social and natural environments. The book explains what is distinctive about the three ideas and why they are currently popular. In particular, we are concerned with how these ideas contribute to governance ‘after the crisis’, and how questions of social, political and economic uncertainty influence the ways in which these main arguments are developed. The book will appeal to those studying these ideas, how they apply to politics, political economy and governance, and to the wider public and policy-makers in these fields.

The concept of the political legacy, despite its importance for institutionalist and historically-minded political analysts more generally, remains both elusive and undeveloped theoretically. This book seeks to address that oversight by building on existing studies which have approached the notion of a legacy to offer a clear definition and operationalisation of the term which might be used to inform future research. Legacies we view as traces of the past in the present; the claim to the existence of a legacy is both a causal and a counter-factual claim. We propose, in the light of this, a multi-dimensional approach to gauging political legacies, reflecting on some of the theoretical, analytical and methodological concerns which need to be addressed in establishing credible claims to their existence. These we develop and illustrate with respect to the literature on Thatcherism.

The concept of the political legacy, despite its importance for institutionalist and historically-minded political analysts more generally, remains both elusive and undeveloped theoretically. This book seeks to address that oversight by building on existing studies which have approached the notion of a legacy to offer a clear definition and operationalisation of the term which might be used to inform future research. Legacies we view as traces of the past in the present; the claim to the existence of a legacy is both a causal and a counter-factual claim. We propose, in the light of this, a multi-dimensional approach to gauging political legacies, reflecting on some of the theoretical, analytical and methodological concerns which need to be addressed in establishing credible claims to their existence. These we develop and illustrate with respect to the literature on Thatcherism.

This book demonstrates the variation in the reaction of the UK’s ‘big four’ banks – RBS, Lloyds, Barclays and HSBC – to the Great Financial Crisis 2008. Over a decade on from the financial crisis, this book asks: have banks in the UK learned lessons from the crisis? Bank learning in the UK after the Great Financial Crisis is something we need to know more about. Whether banks are now safer and more likely to aid rather than disrupt the economy are important questions of social relevance. Through a documentary analysis of Britain’s ‘big four’ banks in the post-crisis decade (2008–2018), this book demonstrates that while some institutions have become more risk averse and display positive signs of learning, others have shown little evidence of change. The book uses notions of agency, path dependency and structural competitive pressures to explain these inter-bank variations of behaviour. This book contributes to wider post-crash structural debates about growth, markets, and regulatory reform, showing how the agency of banks has played a vital role in driving the reform process.

This book demonstrates the variation in the reaction of the UK’s ‘big four’ banks – RBS, Lloyds, Barclays and HSBC – to the Great Financial Crisis 2008. Over a decade on from the financial crisis, this book asks: have banks in the UK learned lessons from the crisis? Bank learning in the UK after the Great Financial Crisis is something we need to know more about. Whether banks are now safer and more likely to aid rather than disrupt the economy are important questions of social relevance. Through a documentary analysis of Britain’s ‘big four’ banks in the post-crisis decade (2008–2018), this book demonstrates that while some institutions have become more risk averse and display positive signs of learning, others have shown little evidence of change. The book uses notions of agency, path dependency and structural competitive pressures to explain these inter-bank variations of behaviour. This book contributes to wider post-crash structural debates about growth, markets, and regulatory reform, showing how the agency of banks has played a vital role in driving the reform process.

Since the creation of the Department for International Development, the purpose of UK development policy and aid has changed significantly. This book provides a comprehensive evaluation of these changes, their causes, and their implications. It argues that UK development aid as an act of solidarity, economic justice, or redistribution, which has always been undermined by donor interest and colonialism, has been abolished. The authors present a new framework for understanding the UK’s current approach to development policy and aid, the ‘nationalisation’ of aid, which prioritises narrow domestic commercial and political interests at the expense of sustainable development and the UK’s international reputation. Based on new quantitative and qualitative data, the book offers a nuanced and comprehensive exploration of the UK's approach to aid and development, contributing to broader discussions on the evolving nature of development assistance and its implications. With a combination of rigorous research methods and insightful analysis, it not only advances scholarly understanding within the fields of Politics, International Relations, Development Studies, and International Political Economy, but also provides practical guidance for policymakers and practitioners seeking to navigate the complexities of contemporary development assistance.

Since the creation of the Department for International Development, the purpose of UK development policy and aid has changed significantly. This book provides a comprehensive evaluation of these changes, their causes, and their implications. It argues that UK development aid as an act of solidarity, economic justice, or redistribution, which has always been undermined by donor interest and colonialism, has been abolished. The authors present a new framework for understanding the UK’s current approach to development policy and aid, the ‘nationalisation’ of aid, which prioritises narrow domestic commercial and political interests at the expense of sustainable development and the UK’s international reputation. Based on new quantitative and qualitative data, the book offers a nuanced and comprehensive exploration of the UK's approach to aid and development, contributing to broader discussions on the evolving nature of development assistance and its implications. With a combination of rigorous research methods and insightful analysis, it not only advances scholarly understanding within the fields of Politics, International Relations, Development Studies, and International Political Economy, but also provides practical guidance for policymakers and practitioners seeking to navigate the complexities of contemporary development assistance.

This book examines the rise of exclusionary neoliberalism by assessing how far-right populist actors impact economic policy change. Drawing on the case of the Austrian Freedom Party, the book illustrates how neoliberalism emerged as a far-right political project in Austria. Tracing the Freedom Party´s ideational history, the book describes the making of the exclusionary neoliberal state through its establishment in the 1980s, its implementation in the early 2000s and how exclusionary neoliberalism was sustained after the Great Financial Crisis of 2008. The book thereby provides important insights on how domestic politics respond to challenges imposed by globalization and international market integration, and explains the less obvious ways in which exclusionary nationalist ideas can be deeply entangled with neoliberalism. The book will appeal to all those interested in far-right populism and its interrelation with political economy.

This book examines the rise of exclusionary neoliberalism by assessing how far-right populist actors impact economic policy change. Drawing on the case of the Austrian Freedom Party, the book illustrates how neoliberalism emerged as a far-right political project in Austria. Tracing the Freedom Party´s ideational history, the book describes the making of the exclusionary neoliberal state through its establishment in the 1980s, its implementation in the early 2000s and how exclusionary neoliberalism was sustained after the Great Financial Crisis of 2008. The book thereby provides important insights on how domestic politics respond to challenges imposed by globalization and international market integration, and explains the less obvious ways in which exclusionary nationalist ideas can be deeply entangled with neoliberalism. The book will appeal to all those interested in far-right populism and its interrelation with political economy.

Crisis has become a ubiquitous feature of contemporary life which is increasingly dominated by financial collapse, global pandemics, geopolitical upheavals, and climate breakdown. Too often, however, the contours, causes and consequences of crises are taken for granted. Adapted from the popular SPERI Presents... podcast series Crisis Point, this volume seeks to understand the role of crisis in the development and reproduction of capitalism. Each chapter is an interview with an expert political economy scholar, also weaving through the editors’ own analysis. By examining capitalism's historical crises, the volume makes sense of contemporary crisis dynamics from housing to populism to climate. Combining the theoretical and historical rigour of scholarly analysis with an accessible conversational style, the volume makes intelligible the structural drivers of crisis for scholars, students, activists and informed observers of global politics alike.

Critically synthesising a range of disparate literatures and debates, this book asks what is at stake in mounting a decisive response to the ‘socio-ecological crisis’ - a crisis of humanity’s relationship with the rest of nature that places social life as we know it in jeopardy. Martin Craig proposes that political economists within and beyond the field of political ecology make an indispensable contribution to the diagnosis of this crisis and the formulation of prescriptions for its resolution. In a wide-ranging yet concise exposition, he assess the fraught relationship between capitalist societies and the biosphere of which they are a part, and urges a renewed emphasis on political-economic structure and strategy when considering responses to the crisis. The result is a proposal for a critical yet inclusive research enterprise – 'ecological political economy' – within which a wide variety of researchers can readily participate.

This book explains the place of oil in the economic and political predicaments that now confront the West. Thompson explains the problems that the rising cost of oil posed in the years leading up to the 2008 crash, and the difficulties that a volatile oil market now poses to economic recovery under the conditions of high debt, low growth and quantitative easing. The author argues that the 'Gordian knot' created by the economic and political dynamics of supply and demand oil in the present international economy poses a fundamental challenge to the assumption of economic progress embedded in Western democratic expectations.

This book challenges amoral views of finance as the leading realm in which mammon – wealth and profit – is pursued with little overt regard for morality. The author details an enhanced ethical emphasis by leading Anglo–American professionals in the aftermath of the 2007–8 global financial crisis. Instead of merely stressing expert knowledge, professionals sought to overcome the alleged impossibility of serving “two masters” – mammon and God – by embracing religious finance, socio-economic inequality, sustainability and other overtly moral issues. Continuities in liberal values and ideas, however, limited the impact of this enhanced ethical emphasis to restoring the professional authority, as well as to more fundamentally reforming of Anglo–American finance following the most severe period of instability since the Great Depression. Providing a nuanced account of post-crisis change and continuity in a crucially important industry, Campbell-Verduyn advances a dynamic, process-based understanding of authority that will appeal to international political economists and sociologists alike.

This book explores two recent crises in British political economy: the crisis of 1976–9, for which the trade unions were impugned, and the 2007 economic crisis, for which bankers were (at least initially) blamed. The author argues that the “crisis resolution” of the former – principally the Thatcherite reforms of the 1980s – led to the emergence of the banking crisis. Further, Kirkland demonstrates how narratives of blame have emerged and were used in both instances to promote specific agendas. Narrations of blame and crises were used to curb the trade union powers in the 1980s, whilst the 2007 crisis was quickly reframed as one of excessive government spending, which in turn has led to policies of austerity.

This book analyses the discourses of economic liberalization reform in six Western European countries – Germany, France, the United Kingdom, the Netherlands, Switzerland and Austria. It provides systematic empirical evidence that policy-related discourses are much more than noise; rather, they are detailed expressions of institutional complementarities and political struggles. The author posits that the more open a discourse, the broader the range of perceived interests, which, in turn, increases the intensity of conflicts. Similarly, the more public discourse centres on coordination, the more intense actors need to engage with opposite interests, which most probably intensifies political disputes as well. Moreover, Wueest argues that the formation of a consensus within the political mainstream has left a vacuum for outsider parties such as Syriza in Greece and Podemos in Spain to feed on the contentiousness of economic liberalization policies.

This book explores the politics of local economic development in Northern England. Socio-economic conditions in the North – and its future prospects – have become central to national debates in the UK. The status of Northern regions and their local economies is intimately associated with efforts to ‘rebalance’ the economy away from the South East, London and the finance sector in the wake of the 2008 financial crisis. The contributors to this volume focus in particular on the coalition and Conservative governments’ ‘Northern Powerhouse’ agenda. They also analyse associated efforts to devolve power to local authorities across England, which promise to bring both greater prosperity and autonomy to the deindustrialized North. Several chapters critically interrogate these initiatives, and their ambitions, by placing them within their wider historical, geographical, institutional and ideological contexts. As such, Berry and Giovannini seek to locate Northern England within a broaderunderstanding of the political dimension of economic development, and outline a series of ideas for enhancing the North’s prospects.

This book provides a timely warning of the dangers still present and building in the global economic system, whose frailty was exposed by the global financial crisis, and the Eurozone crisis it spawned. The contributors to this volume draw on SPERI’s work on the political economy of growth, stagnation, austerity and crisis, and placing each in the context of the wider environmental crisis.

This book investigates the causes and consequences of crisis in four countries of the Eurozone periphery – Greece, Spain, Portugal and Ireland. The contributions to this volume are provided from country-specific experts, and are organised into two themed subsections: the first analyses the economic dynamics at play in relation to each state, whilst the second considers their respective political situations. The work debates what made these states particularly susceptible to crisis, the response to the crisis and its resultant effects, as well as the manifestation of resistance to austerity. In doing so, Parker and Tsarouhas consider the implications of continued fragilities in the Eurozone both for these countries and for European integration more generally.