10++

!""# %&'(&)*
+,-,&*. !-/#* -/0 12(*(*3 45&26(/6 7(/-/8& 1-9(,-:(*5 (/ ;&<(8" -/0 =>2#&?, by Thomas
Marois. Cheltenham, LK. Edward Elar, 2012. Hardback. I$BN 9780857938572,
(online price) 63.00, 288 paes.

In the post1980 era ot tinancial dereulation and liberalization, there has been an
explosion in the size, siniticance, and power ot tinancial markets and institutions.
The role ot tinance in the tunctionin ot the economy has become more and more
important. Heterodox economists ot various strands have produced critical accounts
ot this phenomenon - now widely reterred to as tinancialization. Nevertheless, most
ot these analyses remained tocused on the experiences ot core capitalist countries,
especially the L$A, and there is still much need tor critical analyses that theorize the
role ot tinance in the rest ot the world. +,-,&*. !-/#* -/0 12(*(* represents an attempt
in this direction by tocusin on Mexico and Turkey's transitions to neoliberalism atter
1980, and investiatin why neoliberalism took on a particularly tinanceled torm.
Thomas Marois labels the current phase ot capitalist accumulation in these economies
emerin tinance capitalism," which denotes the tusion ot the interests ot domestic
and torein tinancial capital in the state apparatus as the institutionalized priorities
and overarchin social loic uidin the actions ot state manaers and overnment
elites, otten to the detriment ot labor" (p. 10). The analysis ot this emerin tinance
capitalism" is built on the premises that states and banks are social relations, labor is
vital to emerin tinance capitalism, and tinancial crises are constitutive because their
resolution provides the justitication tor transtormations privilein the power ot
tinancial capital. In the tirst chapter ot the book, Marois contextualizes his study ot
Mexico and Turkey, and moves on to the premises ot the book in the second one.
The third chapter analyzes the history ot postwar development in Mexico and Turkey,
and the next tour chapters provide a detailed discussion ot the rise ot tinance
capitalism in these countries trom 1980 onwards.
Five points can be made about the eneral aruments ot the book. First,
Marois's analysis is built on the understandin that, instead ot lookin at banks,
states, and industry as discrete and historically tixed entities, one should see them as
historically variable institutions which encompass social, political, and economic
aspects. In liht ot this, the consolidation ot tinance capitalism in Mexico can be seen
as a process where Mexican state and overnment elites have led the restructurin ot
the state tinancial apparatus in ways that have institutionalized the interests ot
tinancial capital over and above other social interests" (p. 162). On the other hand,
the rise ot tinancial capitalism in Turkey was the outcome ot a process where
throuh the historical evolution ot material constraints and institutionalizations ot
power relations beneticial to tinancial capital and debtled neoliberal strateies ot
rowth . there has been a tusion ot the interests ot tinancial capital into the state
apparatus" (p. 196).
$econd, Marois arues that neoliberal transtormations are not simply
impositions trom the outside as is arued by some critics ot neoliberalism. They are
the results ot both the interests ot domestic elites and the imperatives ot world
markets workin hand in hand. In the Turkish case, domestic advocates actively
brouht about the neoliberal restructurin ot the Turkish state and society in ways
!""# %&'(&)*

10+5

that increasinly tavored tinancial capital. . Consecutive overnments promoted
tinancial liberalization and exposed domestic bankin to world market competitive
imperatives while state authorities manipulated the state banks' developmental
missions and cratted a stroner state tinancial apparatus to support neoliberal
restructurin" (p. 99). Meanwhile, Turkish capitalists thouht that market
liberalization would allow them to restore protitability and power throuh reater
interation into the world market and the suppression ot oranized labor" (p. 101).
Third, while most critical analyses ot neoliberalism consider tinancial crises as
disruptive, Marois hihlihts the constitutive role ot crises in the emerence ot
tinance capitalism. Neoliberal restructurin and the rise ot tinance have led to
recurrent tinancial volatility, and tinancial crises have become a reular teature ot the
modern era. However, instead ot challenin the social rule ot neoliberal capitalism
and the mountin power ot tinancial capital, the resolutions to crises have
institutionally tortitied tinancial interests within capital accumulation, social
reproduction, and the state" (p. 37). This arument is in line with empirical studies
which show that tinancial crises seem to benetit international tinancial capital and
sements ot domestic capital, while structural chanes implemented to remedy the
situation usually turther the power ot capital in eneral (Dutour and Orhanazi 2007,
2009).
Fourth, Marois arues that there is little to ditterentiate between lare (private
and public) domestic and lare torein banks in the sense that both tollow similar
strateies ot drivin down labor costs and exploitin state tinancial support. His
arument is that, while private bank ownership remains sutticient to explain a bank's
protit and marketoriented operational strateies, private ownership is no loner
necessary under emerin tinance capitalism" (p. 38). This could be a contentious
point as it would require more detailed empirical analysis to support this claim.
Last, Marois tollows Oerard Dumenil and Dominique Levy (200+) in detinin
tinancial capital as the upper traction ot capitalist owners and the tinancial
institutions under their control" (p. 1+). In this very broad detinition ot tinance, not
only tinancial institutions, but also all larescale capital, are included aside trom small
businesses and shareholders. As David M. Kotz (2011) points out, in this detinition,
tinance turns out to more or less coincide with bi capital, perhaps with small
tinancial institutions thrown in" (p. 8). This diminishes the analytical use ot the
concepts ot tinance and tinance capital. It tinancial capital is detined to include more
or less all bi capital, then statements, such as the interests ot tinancial capital
increasinly represent the common interests ot all capitals," lose their analytical
explanatory power.
Overall, +,-,&*. !-/#* -/0 12(*(* is a welcome contribution to the bureonin
literature ot political economic analysis reardin the role ot tinance in modern
economies and could help enerate a much needed discussion.

34562 728-/5-4(
9-0(2 :-* ;/('&2*(,<

34562 728-/5-4( (* -/ -**"=(-,& >2"?&**"2 "? &="/"@(=* -, 9-0(2 :-* ;/('&2*(,<. A*,-/BCD EFC2#&<GH

10+6

!""# %&'(&)*
!"#"$"%&"'

Dutour, Mathieu and zr Orhanazi. International Financial Crises. $coure or Blessin in Disuise."
%&'(&) "+ %,-(.,/ 0"/(1(.,/ 2."3"4(.* 39, 3 (2007). 3+2350.
---. The 200001 Financial Crisis in Turkey. A Crisis tor Whom." %&'(&) "+ 0"/(1(.,/ 2."3"45 21, 1
(2009). 101122.
Dumenil, Oerard and Dominique Levy. 6,7(1,/ %&*89:&31; %""1* "+ 1<& =&"/(>&9,/ %&'"/81("3. Cambride, MA.
Harvard Lniversity Press, 200+.
?"1@, David M. A(3,3.(,/(@,1("3 ,3- =&"/(>&9,/(*4B" In %&/,1("3* "+ C/">,/ 0")&9, edited by Oary Teeple and
$tephen McBride, pp. 118 Toronto, Canada. Lniversity ot Toronto Press, 2011.


!,.# 1" A8// 247/"54&31, by Robert Pollin. Cambride, MA. MIT Press, 2012.
Hardcover. I$BN 9780262017572, $1+.95, 208 paes.

Atter the near collapse ot the tinancial system and the Oreat Recession,
unemployment has siniticantly increased worldwide. Accordin to the ILO Olobal
Employment Trends 2013 report - a special edition warranted by the lobal
employment crisis - the lobal unemployment rate is around six percent. This
translates into a total ot 197 million unemployed, and this number does not even
include the 39 million that dropped out ot the labor market. The report estimates
that, in 2013, the number ot unemployed will reach 202 million. Ot these, 73.8
million are youn people, comprisin a youth unemployment rate ot 12.6 percent.
While risin unemployment is puttin downward pressure on waes in advanced
economies, 397 million workers across the lobe are livin in extreme poverty and
+72 million cannot address their basic needs. In the L$, the unemployment rate
reached almost ten percent atter the crisis, which constitutes about tourteen million
people out ot a labor torce ot 153 million. Addin underemployed and discouraed
workers into this tiure, the rate climbs to 16.5 percent, which corresponds to 25
million people.
Robert Pollin enaes in an attempt to understand unemployment and discusses
how it could be tackled in the L.$. context. !,.# 1" A8// 247/"54&31 starts with the
question. Why should we care about tull employment. First, Pollin arues, it is a
matter ot basic ethics to create an economy with an abundance ot decent
employment opportunities," because the notion ot equal rihts tor everyone sutters in
the absence ot this kind ot economy. How can we claim that everyone in society has
equal rihts when those who are unemployed are not able to participate on a solid
tootin in the lite ot their community." (p. 1+5). $econd, at the individual level, it is
obvious that income is central to havin a decent lite. Beyond that, your job is also
crucial tor establishin your sense ot security and seltworth, your health and satety,
your ability to raise a tamily, and your chances to participate in the lite ot your
community" (p. 7). Third, at the macroeconomic level, hih employment levels would
lead to hiher purchasin power as well as hiher investment and rowth.
Is tull employment possible at all under capitalism. Takin up this question,
Pollin reviews aruments trom Karl Marx, ]ohn Maynard Keynes, Michal Kalecki,
Milton Friedman, and William Phillips. Followin a discussion ot these authors'