Political Economy

of Development
High-end Capitalism
[Recap by Poppy S.
Winanti]

EPP-S1-HI PSW - 2006 1

 Development of capitalism

 Colonialism
 Post-colonialism: Regulated
capitalism and the Bretton
Woods System
 Globalization

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 Regulated Capitalism
 A result of compromise between open
international markets and the development of the
domestic welfare state: ‘embedded liberalism’
(Ruggie, 1982)
 It reconciled liberal multilateralism with the new
domestically oriented priorities to combat
unemployment and promote social welfare
(Helleiner in Ravenhill, 2005)
 Such a system contributed to the unprecedented
period of sustained growth in the world capitalist
economy from World War II to the early 1970s
when capitalism entered a worldwide crisis
(Brecher & Costello, 1994).

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 The New Corporate Strategies
(Brecher & Costello, 1994)
 Capital mobility  the ability to move capital
around the world
 Restructuring the corporation  emerging
paradigm of networked production as
concentration of control combined with
decentralization of production
 National policies  liberalization,
deregulation, privatization in order to become
more competitive in the global economy
 International Institutions  IMF, World Bank,
the WTO

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 Neoliberal Economic Globalization
[Scholte, 2000]

 Market forces will bring prosperity,

liberty, democracy and peace to the
whole of humankind
 General policies:
- Liberalization of cross-border
transactions
- Deregulation of market dynamics
- Privatization of both asset
ownership and the provision of social
services

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 Neoliberal Economic Globalization
[Gills, 2000]

Characteristics:
 Protection of the interests of capital & the
expansion of the process of capital accumulation
on world scale
 A tendency towards homogenization of state
policies and state forms to the protection of the
interests of capital & the process of capital
accumulation on world scale
 The formation and expansion of a new tier of
transnationalized institutional authority ‘above the
states’
 The exclusion of dissident social forces from the
arena of state policy-making

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