Financialization goes South: Foreign capital flows and financial accumulation in emerging markets

Soener, Matthew

doi:10.1177/00207152221133058

Cited by 2 publications

(5 citation statements)

References 88 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The logic of short-circuited accumulation via interest-bearing capitalin Marx's terms, M-M′ instead of M-C-M′-became increasingly dominant. This turn of events redirected the flow of finance capital from the semi-periphery to the core states and provided impetus to the financial expansion (Arrighi 1994;Arrighi, Silver, and Brewer 2003;Krippner 2011;Soener 2022). This is implicit in Figure 4.…”

Section: Figure 4 Real Interest Rates and Global South Net Transfers ...mentioning

confidence: 96%

“…Financialization thus transformed the brief challenge to undervaluation of global South energy represented by the oil price revolution into a new wave of global North financial accumulation via interest-bearing capital invested in the global South and in Eastern Europe. While states and peoples in these regions saw their fortunes plummet with the debt crisis, capitalists across both North and South, meanwhile, saw their profits recover-especially financial profits (Duménil and Levy 2004b;Durand 2017;Soener 2022). Via its financial dominance global North jwsr.pitt.edu | DOI 10.5195/JWSR.2023.1159 capital weathered its accumulation crises by transferring the weight of adjustment onto semiperipheral and peripheral economies and ecologies.…”

Section: Figure 4 Real Interest Rates and Global South Net Transfers ...mentioning

confidence: 99%

“…This finance-led regime has been extended to global South economies. However, asSoener (2022) shows, just as…”

mentioning

confidence: 99%

“…The brief oil price revolution that resulted in part from the Organization of Petroleum Exporting Countries' (OPEC) efforts, then, represented a challenge to longstanding patterns of unequal ecological exchange whereby global North accumulation was subsidized by low-cost global South resources. Managing this challenge evolved into a globalization of contradictions: simultaneously kickstarting a process of financing debt-led growth in the semi-peripheral zone and redirecting the dominant accumulation regime into a finance-led one (Arrighi 1994;Krippner 2011;Soener 2022). Furthermore, in the second section I show how this finance-led resolution to the accumulation crisis ultimately entailed a transfer of the costs of adjustment to global South economies and ecologies-reproducing unequal exchange via debtservicing (Martinez-Alier 1997).…”

mentioning

confidence: 99%

See 3 more Smart Citations

Weathering the Crisis

Ortiz

2023

JWSR

View full text Add to dashboard Cite

This article unpacks the relational nexus between financialization and energy—in this case oil—that shaped the 1970s world-economic crisis and that is again central in the convergence between climate change and accumulation crises. Focusing on these critical moments when profitable opportunities for capital narrow and the world-system enters a period of turbulence, I explain the ways in which energy and finance have been central in crisis formation and, in turn, in capitalists’ search for ways out of crises. Starting with a discussion of the 1970s global conjuncture, I explain the role of the “energy crisis” in the first general recession of post-World War II era. I show how the oil price hike of the early 1970s—which compounded the core’s accumulation crisis while also representing a challenge to unequal trade by dramatically revaluing a key global South export—was channeled into fuel for global North financial accumulation via petrodollar recycling and global South debt. Building on this history, I provide a brief examination of this nexus between finance and energy in the ongoing climate crisis. Today the global capitalist class profits from continuing fossil-fueled accumulation and, increasingly, from the grafting of financial instruments onto socio-ecological disruptions.

show abstract

Section: Figure 4 Real Interest Rates and Global South Net Transfers ...mentioning

confidence: 96%

Section: Figure 4 Real Interest Rates and Global South Net Transfers ...mentioning

confidence: 99%

“…This finance-led regime has been extended to global South economies. However, asSoener (2022) shows, just as…”

mentioning

confidence: 99%

mentioning

confidence: 99%

See 2 more Smart Citations

Weathering the Crisis

Ortiz

2023

JWSR

View full text Add to dashboard Cite

show abstract

“…Such self‐discipline has in turn been matched by the financialization of Southern debtor countries, in particular the financialization of government finances beyond the most creditworthy countries of the global South, and into the least creditworthy countries (Koddenbrock et al., 2022; Soener, 2022). Indeed, the US Federal Reserve has not raised interest rates by nearly as much now as it did in the early 1980s.…”

Section: Introductionmentioning

confidence: 99%

The Return of Debt Crisis in Developing Countries: Shifting or Maintaining Dominant Development Paradigms?

Fischer,

Storm

2023

Development and Change

View full text Add to dashboard Cite

In the aftermath of the COVID‐19 pandemic, much of the global South has been immersed in a debt crisis of a breadth and depth not seen since the early 1980s. The debt distress was apparent before the pandemic and the situation over the last decade is best described as a slow burn, which the pandemic and war in Ukraine ignited in often sudden and dramatic ways. However, what remains a surprising feature of the ongoing situation has been the avoidance so far of a generalized domino effect, unlike previous systemic Southern debt crises. This fact does not diminish the severity of the consequences given that the containment of crisis has been achieved by regular and persistent applications of austerity and adjustment programmes with deleterious impacts on development in poor countries. This article frames the Debate by exploring these aspects of the current Southern debt crisis, focusing on its deeper structural drivers versus the role of more proximate triggers of the crisis; the similarities or differences with past crises of recent decades; and the degree to which anything has in fact changed in orthodox responses to crisis management. A theme that emerges from the more heterodox scholarship profiled by this Debate is that the current crisis and its responses are maintaining the dominant development paradigm of the last 40 years, rather than eliciting a shift away from it. There is a continued adherence to neoliberal ideology in macroeconomic policy making and to the punitive subordination of developing countries in debt distress, through crisis responses, to the Northern and especially US‐centred international financial system. Ignoring the very strong similarities to the past, especially the 1982 debt crisis that ushered in this paradigm, risks repeating the lost decades to development that followed.

show abstract

Financialization goes South: Foreign capital flows and financial accumulation in emerging markets

Cited by 2 publications

References 88 publications

Weathering the Crisis

Weathering the Crisis

The Return of Debt Crisis in Developing Countries: Shifting or Maintaining Dominant Development Paradigms?

Contact Info

Product

Resources

About