The
current global economic crisis has been covered extensively within
academic literature and the wider (social) media alike. Few, however,
have tackled the topic with the ambition of questioning capitalism
itself. John Hilary’s book The Poverty of Capitalism: Economic Meltdown and the Struggle for What Comes Next(Pluto
Press, 2013) is a welcome exception here. In this blog post, I will
provide a critical engagement with this excellent analysis of capitalist
crisis and moves towards alternatives.
The power of transnational capital
The
global garments industry is closely controlled by brand names and
retailers, who relentlessly squeeze suppliers in producing more cheaply.
Unsurprisingly, working conditions in this sector are characterised by
super-exploitation with a disregard for issues such as health and
safety. The recent collapse of
the Rana Plaza factory in Bangladesh, when more than 1000 people were
killed is only one of the most extreme examples of the consequences of
poor working conditions in this sector. In relation to food production,
‘as with the garments sector, the production, distribution and
consumption of food are already dominated by a small number of giant
transnational corporations who seek to determine what is grown and what
is eaten in all corners of the globe. As with the extractive sector,
capital has become increasingly aggressive in its attempts to
appropriate the natural resources necessary for its further expansion:
land, seeds, water and
the genetic building blocks of life itself’ (P.118). In short, global
capitalism has intensified exploitation across borders with the peoples
of the Global South bearing yet again the brunt of the onslaught.
The rise of the BRICS and CSR as hopes for alternatives?
John
Hilary dismisses hopes that the rise of the BRICS, Brazil, Russia,
India, China and South Africa, will result in a dramatic change in
global capitalism. Yes, the balance of power in the global economy is
changing, but capitalism itself has not been undermined. ‘Instead of the
traditional division between the capital-exporting countries of the
North and the capital-importing countries of the South, the increasing
accumulation of capital in the semiperiphery has generated a new wave of
imperialism from the emerging economies themselves’ (P.34). At the same
time inequality across the globe is increasing between countries, but
also within countries and the BRICS are no exception here. ‘In the
emerging economies of India and China, similar increases in inequality
have taken place against the backdrop of hundreds of millions living in
absolute poverty (P.18). Interestingly, the position of transnational
capital has actually been strengthened rather than weakened as a result
of the rise of the BRICS. ‘The G20’s decision to resurrect the failed
institutions of twentieth-century globalization
in the interests of transnational capital represents the greatest
structural continuity between the new world order and the old’ (P.29).
What alternatives beyond capitalism?
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| Photo by seven-resist |
As
important as all these examples of change are, it is this aspect of the
book where I find myself in slight disagreement with John Hilary. I am
not convinced that the majority of the ‘global justice movement’ has
declared itself opposed to capitalism as such rather than criticising
the most negative outgrowths of neo-liberalism. Nor does the
re-emergence of the state as an important actor of development in Latin America
point towards a future beyond capitalism. As John Hilary acknowledges
himself, at the national level ‘several of the “pink” governments have
actually augmented the power of capital both nationally and
internationally, maintaining their socially progressive credentials
through pro-poor welfare programmes, but at the expense of any
structural change’ (P.146). Capitalism as such is not challenged. Is
John Hilary slightly too optimistic when assessing the current potential
for moves beyond capitalism? Perhaps, but then there are many studies
simply re-asserting the dominance of capitalism. In a way, it is
refreshing that The Poverty of Capitalism goes into the opposite direction.
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| Photo by Sterneck |
The
struggle over the future world order is open ended. It is these
struggles, which can function as vehicles, ‘by which to develop an
international class consciousness over and against the very real
challenges posed by globalization
to transnational solidarity’ (P.116). Solidarity is always the result
of concrete struggles, and it is in this respect, that John Hilary’s
positive assessment of the current situation may be justified. Hence, to
conclude with his words, ‘the struggle for alternatives beyond
capitalism is what makes another world possible. Even in the midst of
crisis, that world is already coming into view’ (P.161).
An impressive book, a must read for all those interested in transformative change beyond capitalism!
The official Andreas Bieler blog can be found here.
Prof. Andreas Bieler
Professor of Political Economy
University of Nottingham/UK
Personal website: http://andreasbieler.net
12 November 2013Distributed by RINF Alternative News
