This May, the squares will explode in a frenzy of popular resistance against the diktat of finance capital — and Frankfurt will be one of our key battlegrounds.
Via the Interventionist Left in Germany
International Solidarity versus Crisis, War & Capitalism
Via the Interventionist Left in Germany
International Solidarity versus Crisis, War & Capitalism
Ready, Steady, Go!
Come to Frankfurt. Join the action days from 16th to 19th May 2012:
Fight the dictate of Troika, EU Commission, European Central Bank (ECB) and International Monetary Fund (IMF).
Under the slogan Rien ne va plus! we will block one of Europe’s most important financial centers. In thousands we will send a visible signal of global solidarity – against crisis, war and capitalism.
We place our actions and protests in the context of the progressing struggles for self-determination, freedom and dignity all over the world — such as the uprisings and revolutions of the Arab Spring, the social struggles and general strikes in Greece, the indignados movement in Spain and the worldwide protests of the Occupy movement. We are not alone and our voices can be heard all over the world.
During the past few years, capitalism has been through one of its toughest crisis ever and the mother of all questions is back on the agenda: how much longer will the world be able and willing to pay for this system? Even here in Germany, it is time for rebellious movements: loud, resolute, challenging and anti-capitalistic:
“There is no such thing as society”
We place our actions and protests in the context of the progressing struggles for self-determination, freedom and dignity all over the world — such as the uprisings and revolutions of the Arab Spring, the social struggles and general strikes in Greece, the indignados movement in Spain and the worldwide protests of the Occupy movement. We are not alone and our voices can be heard all over the world.
During the past few years, capitalism has been through one of its toughest crisis ever and the mother of all questions is back on the agenda: how much longer will the world be able and willing to pay for this system? Even here in Germany, it is time for rebellious movements: loud, resolute, challenging and anti-capitalistic:
“There is no such thing as society”
Currently, the EU has to accept the end of its ideology of unlimited growth and competition. In response to the rampaging instability of the EU system, the IMF, ECB and European Commission have simply declared war on any kind of social security. Margaret Thatcher, the dinosaur among neoliberals, once said that “there is no such thing as society”. A strategy that runs like a red thread through recent history, the negation of society was the ideological basis for the military coup in Chile in the early 1970s, and it is a crucial element of the current EU dictates against Greece.
From the point of view of the ruling system, such an approach is only logical: the European project has always been an imperial project — integrative and at the same time authoritarian in terms of domestic policies, and aggressive on a global level in its attempts to reduce trade barriers and to enhance the military effectiveness of the EU as a global player. The EU confers the freedom of movement only to its own citizens. External borders, however, have long been sealed off and restrictive, while brutalizing refugee policies have always been integral part of the European apartheid.
From the point of view of the ruling system, such an approach is only logical: the European project has always been an imperial project — integrative and at the same time authoritarian in terms of domestic policies, and aggressive on a global level in its attempts to reduce trade barriers and to enhance the military effectiveness of the EU as a global player. The EU confers the freedom of movement only to its own citizens. External borders, however, have long been sealed off and restrictive, while brutalizing refugee policies have always been integral part of the European apartheid.
Under these circumstances, people in Greece have never had and will never have a chance. Even the ruling class knows that, eventually, all technocratic attempts to overcome the crisis will fail. Only opposition movements will be able to develop new social and political solutions. Society has to re-invent for itself. The solution, not only for Greece, is the insurgent community.
The euro crisis is also a lesson about Germany’s dominance within the EU. That is why we want to put the focus of the action days on defying the principles of national competitiveness and national consensus. Not only is Germany imposing harsh austerity and restructuring programs on countries on the periphery of Europe, but it also benefits from these programs. The massive armament activities of Greece, with Germany being an important business partner, are among the principal reasons for the national bankruptcy of the country, and one condition for the “EU assistance” is for Greece to settle its debts arising from weapon deals. Not even one cent of these billions of euros will reach the Greek people.
Furthermore, Germany is the economic superpower at the heart of Europe and the informal boss of the EU. It makes all the other EU countries feel its dominant position. This arrogance has triggered the ongoing Greek-bashing campaign mainly pushed forward by the BILD-Zeitung, Germany’s least serious tabloid, but not only by the tabloid: in February 2010, the CEO of Bosch (a multinational corporation) and other German managers called for the exclusion of Greece from the EU because the country is “run-down and an unbearable burden for the supportive society.”
Furthermore, Germany is the economic superpower at the heart of Europe and the informal boss of the EU. It makes all the other EU countries feel its dominant position. This arrogance has triggered the ongoing Greek-bashing campaign mainly pushed forward by the BILD-Zeitung, Germany’s least serious tabloid, but not only by the tabloid: in February 2010, the CEO of Bosch (a multinational corporation) and other German managers called for the exclusion of Greece from the EU because the country is “run-down and an unbearable burden for the supportive society.”
Global Crisis – Global Solidarity
What we are facing is not just the euro crisis and galloping national debts — what we are dealing with is a severe crisis that has been going on for decades and is responsible for the devastating living conditions of an ever-growing number of people, particularly in the Southern hemisphere. People starve to death, die of curable diseases, live on the streets or on garbage dumps. It is more than obvious that capitalism neither satisfies the basic needs of the majority of the world’s population, nor respects their right to live in dignity.
This major problem, however, has never been a crucial aspect in global politics. On the contrary, the focus of institutions such as the IMF, World Bank, G8 and NATO lies on “crisis management” and security policy because the global crisis has always been a crisis of imperial dominance and hegemony. From this point of view, the euro crisis, like the war on terror, is only about preserving the current system and making sure that everything works smoothly at whatever price.
In this context, we have to consider the entire picture: the war on Afghanistan and the European process, Camp X-Ray in Guantanamo and the war on refugees in the Mediterranean Sea, the centers of well-being and the regions that live in precarity and lawlessness, capitalist waste economy and the destruction of social and political values through the omnipresent power of the market. Everybody can see that this system is heading straight into a dead end.
However, if we search the reasons for the crisis in misguided economic policies, the greed of speculators or the criminal activities of American rating agencies we do not only kid ourselves but also produce pseudo-criticism of capitalism and enhance the idea that there is such thing as “good capitalism”. Taking refuge in the comforting theory that what we are facing is one of the “normal” crises of the capitalist system does not help either, as this has been used to back up a considerable number of recent political decisions on war or imperial expansion. Consequently, if we want radical changes, we have to radically review all explanations that seem too simple, incorrect or even full of anti-Semitic stereotypes.
This major problem, however, has never been a crucial aspect in global politics. On the contrary, the focus of institutions such as the IMF, World Bank, G8 and NATO lies on “crisis management” and security policy because the global crisis has always been a crisis of imperial dominance and hegemony. From this point of view, the euro crisis, like the war on terror, is only about preserving the current system and making sure that everything works smoothly at whatever price.
In this context, we have to consider the entire picture: the war on Afghanistan and the European process, Camp X-Ray in Guantanamo and the war on refugees in the Mediterranean Sea, the centers of well-being and the regions that live in precarity and lawlessness, capitalist waste economy and the destruction of social and political values through the omnipresent power of the market. Everybody can see that this system is heading straight into a dead end.
However, if we search the reasons for the crisis in misguided economic policies, the greed of speculators or the criminal activities of American rating agencies we do not only kid ourselves but also produce pseudo-criticism of capitalism and enhance the idea that there is such thing as “good capitalism”. Taking refuge in the comforting theory that what we are facing is one of the “normal” crises of the capitalist system does not help either, as this has been used to back up a considerable number of recent political decisions on war or imperial expansion. Consequently, if we want radical changes, we have to radically review all explanations that seem too simple, incorrect or even full of anti-Semitic stereotypes.
To talk capitalism means to think globally
Capitalism in the Western industrialized nations means the synthesis of the whole territory, including industrialized agriculture, highways, soulless housing estates, job agencies, commercialized wild-life parks and event management, the human being as an entrepreneur without relationships. The same capitalism in global terms still means: distribution wars, repression, disempowering the population, putting entire regions under a permanent state of emergency.
Thus it is obligatory for everyone who claims the right to individual and social self-determination to question the system as a whole. “Real democracy” will work only without capitalism; there is no longer an alternative. After a long absence, the concept of revolution has been put back on the agenda by the Arab Spring. Not only the political conditions in Tunisia and in Egypt have been turned upside-down, but the society itself. People have learned that basic social changes are possible; they got back the freedom and the dignity to decide on their own futures. And this is only the beginning.
Thus it is obligatory for everyone who claims the right to individual and social self-determination to question the system as a whole. “Real democracy” will work only without capitalism; there is no longer an alternative. After a long absence, the concept of revolution has been put back on the agenda by the Arab Spring. Not only the political conditions in Tunisia and in Egypt have been turned upside-down, but the society itself. People have learned that basic social changes are possible; they got back the freedom and the dignity to decide on their own futures. And this is only the beginning.
We hope to see you in Frankfurt and are looking forward to it as a next step in international mobilizations after the G8 in Heiligendamm 2007 and the NATO summit in Strasbourg 2009. We all need such events that pool our forces into efficient action because mass civil disobedience promotes emancipatory processes and collective opposition.
The imperial power already retreats from public places as possible spaces for protest and riots. After the announcement that protests will take place against the summits of G8 and Nato on 18th – 21st May , Obama has declared to move the meeting from Chicago to Camp David.
Let’s go. Take the square!
Does business occupy a privileged position in capitalism? Why do indebted countries not default more often? And do we really live in a democracy?
Over the past year, in addition to setting up, editing and writing for ROAR, I have kept busy with research for a PhD thesis at the European University Institute in Florence, Italy. My project, which investigates the structural power of the financial sector in sovereign debt crises, takes a comparative-historical perspective and looks at the evolution of debtor-creditor relations in contemporary capitalism — from the 15th century until today — and with a particular focus on three major debt crises in the neoliberal era: Mexico in the 1980s, Argentina in 1999-’02 and Greece in 2009-’12.
While I haven’t started the research itself (I’m off to Mexico for the first round of fieldwork later this summer), I have written two papers that deal with the broad thematics of my topic. One looks at the ‘invisible hand’ of the financial sector in sovereign debt crises; the other at business power in democratic capitalism. Since I spent quite a bit of time writing these assignments that no one other than my supervisor will read, I decided to publish them on ROAR for public consumption. Those of you who want to get a more in-depth perspective on some of the themes we’ve covered on ROAR might find this interesting.
I have posted the abstracts of the papers along with a link to the PDF files below. I welcome any comments, criticisms and witticisms you may have. More importantly, if you have any academic writings to send us (2,000-10,000 words), we would be happy to consider publishing them in the ROAR Working Paper series. We accept contributions on topics related to any of the ROAR thematics (see categories in left-hand sidebar). Send me an email here.
N.B.: If you get a blank document when downloading the PDF files, please try using another browser. We’re having some compatibility issues, especially with Safari. Chrome and Firefox should work.
Structural Power: The ‘Invisible Hand’ of the Financial Sector in Sovereign Debt Crises
Adam Smith once argued that an ‘invisible hand’ guides economic activity in the free market. In response, Joseph Stiglitz quipped that the hand is only invisible because it is not there. In this paper, I will argue that the invisible hand does exist – it just does not regulate economic activity as much as it influences the political process. Building on the work of Susan Strange, I aim to demonstrate how three decades of structural change in the global political economy have greatly enhanced the structural power of the financial sector, with important consequences for the (mis)management of sovereign debt crises. The goal of the paper is to answer a simple question as posed by Eichengreen (2002): “why aren’t there more debt restructurings?” To answer this question, I will first outline why Eichengreen’s interpretation of crisis management is empirically questionable and theoretically insufficient. After briefly outlining the role of hegemonic neoliberal ideology in sustaining the interests of the financial sector, I will propose Strange’s notion of structural power as a theoretical construct that can help us overcome some of the shortcomings in mainstream scholarship on debt crises. Concluding with a brief case study, I will contend that Argentina’s critical default is entirely congruent with structural power analysis.
Download the full paper here.The Political Economy of Business Power: Comparative and International Perspectives
Three decades since Charles Lindblom caused waves by arguing that business occupies a privileged position in democratic capitalism, interest in the study of business power appears to have all but evaporated from the field of comparative politics. This paper aims to contribute to its recent revival by resuscitating Lindblom’s central claims and placing them in a more global perspective. By means of two short case studies – on Europe’s policy response to climate change and the eurozone debt crisis – I aim to elucidate three core contentions: (1) business always has structural power, even when capital mobility is low; (2) in times of crisis, even if a policy area is of high salience and business appears to be losing out to societal pressure for regulation or redistribution, business still wields disproportionate influence in its ability to shape the form and efficacy of policy outcomes; (3) for a proper appreciation of the privileged position of business, we need to integrate Comparative Political Economy (CPE) and International Political Economy (IPE) into a unified political economy of business power. Finally, I aim to show that these claims are not incompatible with the persistence of business conflict and the possibility of business defeat
15M: a year on, the struggle of the indignados continues
Anniversary of 15-M movement marked by deepening crisis, massive bank bailout and fears of eurozone break-up. The indignation only grows stronger.
We are witnessing an remarkable convergence of historic currents. Today, as the indignados celebrate the first anniversary of a movement that shook the very foundations of Spanish society and sparked a global wave of occupations, the representatives of the Old World are once again gathering in Brussels and Berlin to discuss contingency plans for the increasingly likely break-up of the eurozone. As the old world crumbles, the new one struggles to be born.Exactly a year after thousands of protesters swarmed into Puerta del Sol and set up an autonomous political space within the square, Spain has been dragged into the heart of the European debt crisis. The country’s borrowing costs spiked to their highest ever levels yesterday as financial markets trembled in the face of a silent run on the banks and an impending Greek exit from the eurozone.
Fearing that Spain might be next in line to need a bailout — or be forced out of the single currency — investors massively fled to the ‘safe haven’ of German bonds. At the same time, the indignados launched a campaign to close the public’s accounts at Bankia, the country’s largest real estate lender, which was bailed out with public money last week. At 10bn euros, the total cost of the bailout roughly equals the total cuts being made in the public education system.
As thousands gather for participatory assemblies in Puerta del Sol and squares across the country, the newly elected French President Francois Hollande flew to Berlin to meet with Angela Merkel and European finance ministers once again huddled together in Brussels to discuss the fate of the eurozone. The past days have seen a radical escalation of market panic as a deadlock in Greek coalition talks increased speculation about the break-up of the single currency.
This morning, the Guardian reported that “European leaders and financial markets brace for a Greek exit from euro,” noting that a “return to the drachma nears amid a political impasse in Athens and open discussion in Brussels of a possible end to the single currency.” Meanwhile, the Financial Times writes that “fears that the eurozone’s firewall will prove insufficient to shield Spain and other embattled countries against the effects of a possible disorderly Greek exit from the currency union hit European financial markets.”
With unemployment at a staggering 25 percent (over 50 percent for young people) and 350.000 families having lost their homes since 2007, the social crisis in Spain is increasingly starting to resemble that of Greece. According to the National Statistics Institute, over one in five Spaniards now live in poverty. Yet while the economy is rapidly contracting, the government still had the wit to announce the most radical austerity measures on the continent.
The fear among economists and the restive Spanish population is that the announced budget cuts will feed into a negative spiral, further reducing growth, raising unemployment and thereby feeding into further mortgage defaults and house evictions. With the Spanish banking system still ailing from the collapse of a massive real estate bubble, the deepening recession and deluge of defaults is likely to lead to more bank failures — and therefore more bailouts.
But the indignados will have none of it. Determined to create alternative networks of direct democracy, self-organization and mutual aid, the Spanish are organizing hundreds of events, workshops and thematic assemblies across the country today to disseminate public awareness about possible alternatives and discuss future pathways for the movement. With the spectacular images of hundreds of thousands gathering in Puerta del Sol last Saturday, the movement has clearly demonstrated that, far from fading away, popular indignation is only growing stronger in the face of this deepening crisis.
Last night, at the very well-attended general assembly in Puerta del Sol, one slogan continued to resonate from the crowds: “De Norte a Sur, de Este a Oeste, la lucha sigue, cueste lo que cueste.” From North to South, from East to West, the struggle goes on, whatever the cost. Here on the squares of Spain, as one historic current coincides with another, the New World struggling to be born slowly watches the old being torn asunder.
http://www.youtube.com/watch?v=P7C0_Gf0GR8&feature=player_embedded
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