Financialization and Deindustrialization in the Southern European Periphery

Abstract

Historically, Southern European countries have shared a 'semi-peripheral' model of capitalism which has been characterized by fundamental fragilities in the production system. The financialization induced by the EMU has rendered these economies more fragile and unstable. Liberalization and market reform policies have taken southern economies onto the path of a credit-based and passively-extroverted financialized economy that trap them into a low-cost-of-wages search of competitiveness. However, the lack of autonomy in macroeconomic policies has weakened Southern opportunity to react to the financial crisis. The 'internal devaluation' policies that followed have caused a deep and thorough process of de-industrialization. This has sped-up the centralization of the European economy that has its centre in a narrow space within Paris,

Youth Extremism as a Response to Global Threats?

“…For the purpose of our argument, we assume that the various theoretical conceptualizations of globalization do not have much empirical effects in terms of threat generation, and this for three main reasons. First, there is an evidence that growing global financialization can bring adverse economic effects such as deindustrialization, unemployment and relative socio-economic deprivation (Kaya, 2012;Tori & Onaran, 2015;Gambarotto, Rangone & Solari, 2019), thus realistic threats (unemployment, relative deprivation) which all have the potential to generate compensatory responses, and, have we argue, especially among the youth. Second, as some political scientists argue, if globalism is not a phenomenon in and of itself, there is a growing prevalence of political discourses arguing for its existence and emphasizing its supposed effects and/or benefits.…”

“…For the purpose of our argument, we assume that various theoretical conceptualizations of globalization do not have much empirical effects in terms of threat generation for three main reasons: First, there is evidence that growing global financialization can bring adverse economic effects such as deindustrialization, unemployment and relative social-economic deprivation (Gambarotto et al, 2018; Kaya, 2012; Tori & Onaran, 2015). These realistic threats have the potential to generate compensatory responses, especially among the youth.…”

Financialization, confidence, and sovereign debt markets: The role of Credit Default Swaps in the Southern European debt crisis

“…In approaches from comparative and international political economy, the concept of financialization capitalizes on various visions of the evolution of world market economies (Lapavitsas and Powell, 2013; Nolke, 2016; Stockhammer, 2011). Concepts such as the financial turn of the economy (see Krippner, 2011), financial capitalism (Ertuk et al, 2008), subordinated (Lapavitsas and Powell, 2013), or semi-peripheral financialization (Becker, 2014; Gambarotto and Solari, 2015; Gambarotto et al, 2019; Rodrigues et al, 2016) emerged in scholarly literature, shedding light on how different national institutional systems and growth regimes interact with the expansion of finance and public/private indebtedness.…”

Projekt razvoja Wi-Fi sistema za mobilno upravljanje senčil

“…Batiston et al (2018) presented empirical evidence on the patterns of increasing financialization in the EU in the last two decades, an analysis of its possible adverse effects on several objectives of the EU 2030 agenda, including inclusive growth, innovation, inequality and financial stability. Gambarotto, Rangone and Solari (2019) suggested that liberalization and market reform policies have taken southern EU economies onto the path of a credit-based and passivelyextroverted financialized economy that trap them into a low-cost-of-wages search of competitiveness and deindustrialization. Svilokos and Burin (2017) tried to evaluate the process of financialization and its impact on the process of deindustrialization in the EU by detecting the significant and negative impacts of the process of financialization on value added of industry sector, as well as on the employment in the industry sector.…”