Crisis of world capitalism: Core-periphery inequality

Xxxx Xxxxx Xxxxxx xxxxxxxx at
Tue Jan 9 17:24:12 MST 2001

ops, this went weird..


> I am forwarding this to the list. It is a useful summary of number of
> crises facing the world economy since the 1970s, written from a world
> systemic perspective. Ignore the part on Tom Kemp though. He is part of a
> discussion on the specifics of US economy (whether its growth is exogenous
> or endogenous etc..)

> comradely,
> Xxxx
> ---------
> Regarding Kemp, I think he is off the mark because core capital,
> especially that of the US, had been de-industrializing since the 1950s.
> I don't think there is a "classic" form of recovery that is, by Kemp's
> implication, "internal."  As for the seventies recession, it hasn't ended,
> and regarding its relation to deindustrialization, it is as though Kemp as
> the tail wagging the dog.  The global down turn intensified the need for
> core capital to move abroad, and prior deindustrialization, especially
> product-cycle changes in East Asia, contributed to make that possible.
> Regarding the East Asian crisis, it may be seen as part of the ongoing
> downturn or B-phase.  It can be compared to the 70's downturns, as Soros
> implies, as a fulfillment of the core de-industrialization process.  But I
> also happen to believe that there are other key interstate changes
> occurring during the 1970-present era, including the proliferation of the
> mafioso-like tactics pursued by the US to preserve its hegemony (the
> effect of which, given the structural transformations of the world-economy
> since 1945, acts like a lever toward the formation of a world-empire --
> see Negri and Hardt, 2000).  This would include, besides instigating wars
> (Bosnia, Gulf) and cold war escalation that have the same effect, the
> Structural Adjustment Policies, which, in furthering de-industrialization,
> have likewise caused economic-financial chaos in those recipient
> "industrializing" (East Asia) or "de-industrializing" (Russia)
> semi-peripheries which in turn has resulted in massive capital flows back
> to the safe shores of US markets, inflating US share prices, and
> increasing the US take of global capital before being sent abroad again
> back into those recipient areas to purchase goods at consequently greatly
> deflated prices.
> Soros may correctly judge that the limits to those capital flows have been
> reached for a time.  Which is why he supposes things must get worse before
> they get better, i.e. there must be more deflationary chaos in the (semi)
> periphery so core capital can go back to purchase (invest) at lower
> prices. If so, he seems to suggest that de-industrialization and the
> programs of its promotion, are nearing the apex of their maximum effect
> (at least in the short to run of 5-10 years).  And it may be that we are
> in a classic 5-year downturn at the end of this process with recovery
> coming in, say, 2004. If Wallerstein is accurate, the following recovery
> would mark the start of a 25-30 year upswing not seen since the 1945-70
> period.
> Elson E. Boles
> Assistant Professor, Historical Sociology
> University of Science and Arts of Oklahoma
> 2108 S. 19th St.
> Chickasha, OK 73018
> --
> Xxxx Xxxxx Xxxxxx
> PhD Student
> Department of Political Science
> SUNY at Albany
> Nelson A. Rockefeller College
> 135 Western Ave.; Milne 102
> Albany, NY 12222


Xxxx Xxxxx Xxxxxx
PhD Student
Department of Political Science
SUNY at Albany
Nelson A. Rockefeller College
135 Western Ave.; Milne 102
Albany, NY 12222

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