Professional Documents
Culture Documents
South Africa
Patrick Bond1
US Republican
hegemony–and
Institute, Cato
Party, Hoover
penalise NY
in Emerging Markets since the mid 1990s—as felt particularly by work-
Restore US
Buchanan,
Kissinger,
mistakes
Institute
ers, peasants, women, children, the elderly, indigenous groups and disabled
bankers'
Shultz,
Helms
people, as well as environments.16
But if this is indeed where we have come from, what, then, are the key
responses to the crisis? What reforms on the table offer what kinds of ways
Department of Economics
supervision & regulation)
Washington, DC think-
Camdessus, Greenspan,
House, 10 Downing St,
International Monetary
Treasury Department,
Organisation); various
tanks; University of
quo (transparency,
indeed as deeply-rooted in the very logic of capitalism as the (marxian)
theory suggests, what prospects are there for addressing the crisis at its roots,
World Trade
in a resurgence of popular anti-capitalism?
Fischer
3. the current array of forces.
During 1997-99, varying positions emerged about the economic crisis
Nations agencies,
France, Germany
Sachs, Krugman,
markets" + more
governments of
from different material interests and economic ideologies. While it may
Stiglitz, Soros,
"development"
World Bank?,
Many United
Wolfensohn,
today be possible to identify a few coherent positions, this may not be true
and Japan?
"imperfect
Reform
in a few months or even weeks. In short, fluidity is the only constant. Never-
Jospin
theless, we can throw caution to the wind by suggesting that as of mid-1999
five broad tendencies appear to have firmed up, representing systematic reac-
(Malaysia, China,
Key nation-states
Mugabe, Chavez
Join the system,
tions to the global financial crisis. The five positions are, from left to right,
but on much
India, South
fairer terms
what we can label a) the “New Social Movements”; b) “Third World Nation-
Mahathir,
Africa?)
alism”; c) the “Post-Washington Consensus”; d) the “Washington Consen-
sus”; and e) the “Old World Order” (see accompanying table at the end of the
essay)[see Table 1].
Peasant Organisations,
deregulation, low taxes, fiscal austerity and privatisation, high real inter-
regional coalitions;
Pollitt, Chomsky
est rates, and flexible labour markets.17 If there were problems outstanding
in the world economy, they would always merely be temporary, according
democracy
to the Consensus, to be overcome by more IMF bailouts (embarrassingly
Burkina
generous to New York bankers though they were), intensified application of
etc)
‘sound’ macroeconomic policies, augmented by greater transparency, a touch
Issue: Old World
more financial sector supervision and regulation, and less Asian cronyism.
Key institutions
Key proponents
Main argument
Consensus ‘lender of last resort’ was initially discredited, for it was seen as a
Order