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1. the Rise of Authoritarian Capitalism in the Twenty-First Century

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1. the Rise of Authoritarian Capitalism in the Twenty-First Century JOBNAME: Bloom PAGE: 1 SESS: 3 OUTPUT: Wed Feb 10 09:01:02 2016 1. The rise of authoritarian capitalism in the twenty-first century As the twenty-first century dawned there was fresh optimism for the triumph of democracy over political authoritarianism. The end of the Cold War supposedly signaled the “end of history” and with it the rise of liberal democracy and the demise of authoritarian regimes worldwide. Associated with this promise was the spread of economic capitalism internationally. It was to be an era of peaceful democratic markets. As one commentator at the time famously declared: What we may be witnessing is not just the end of the Cold War, or the passing of a particular period of post-war history, but the end of history as such: that is, the end point of mankind’s ideological evolution and the universalization of Western liberal democracy as the final form of human government. (Fukuyama, 1989) Yet the first decade of the new millennium has belied these optimistic expectations. While it is indeed an age of capitalist globalization, political authoritarianism has not only survived but seems to be gaining new steam. Moreover, it has done so in the name of preserving marketization nationally and trans-nationally. This apparent contradiction between economic liberalization and polit- ical authoritarianism has raised questions about the contemporary role of capitalism as a positive force for democratization. Rather than transition- ing previously totalitarian states toward democracy and deepening it within perceived established liberal states, globalization has instead been theorized as enhancing despotism and repressive policies. Economic liberalization is increasingly viewed as a national “shock” that requires an oppressive sovereign state to implement and maintain its commonly unpopular “reforms” (Klein, 2007). This has also brought to the forefront deeper concerns regarding the fundamental relation of capitalism to authoritarianism. In this regard, economists are pointing to the inherent function of marketization for creating and sustaining political oligarchy (Piketty, 2014). These fears have only been exacerbated following the 1 Peter Bloom - 9781784713157 Downloaded from Elgar Online at 09/27/2021 07:01:27AM via free access Columns Design XML Ltd / Job: Bloom-Authoritarian_capitalism / Division: 05BloomChapter1_FINAL /Pg. Position: 1 / Date: 9/12 JOBNAME: Bloom PAGE: 2 SESS: 6 OUTPUT: Wed Feb 10 09:01:02 2016 2 Authoritarian capitalism in the age of globalization financial crisis of 2008 alongside the rising power of authoritarian “great powers” internationally. At stake then is how to account for this paradox, that the more economically liberal a country becomes, the greater its reliance on authoritarianism seems to be across contexts. More precisely, to illumin- ate how the deepening of marketization worldwide is contributing to the strengthening of explicitly dictatorial regimes and the illiberal policies progressively pursued by traditionally democratic states. What are the underlying dynamics driving this diverse “authoritarian capitalism” in the twenty-first century? How to explain the rise of authoritarian capitalism in the age of globalization? What does this reveal about the more fundamental relationship between political authoritarianism and eco- nomic capitalism? AIM These concerns are especially pressing given the resurgence of political authoritarianism in the twenty-first century. Indeed the new millennium has been witness to the appearance and strengthening of explicitly despotic and non-democratic regimes, notably Russia and China, all extolling their exclusive ability to properly and successfully guide their country’s market transition. Just as worrying has been the growth of “illiberal democracies” (Zakaria, 1997; Velasco, 2013) whose authori- tarian social policies belie their stated formal democratic institutions and economic commitment to liberalization. Somewhat less explored but in a similar vein have been fears regarding the authoritarian characteristics of established liberal democratic nations within “developed” liberal demo- cratic capitalist economies associated with such policies as the “War on Terror” and “War on Drugs” (Henry et al., 2005; Steger, 2008). Many continue to fear the strengthening of the so-called “imperial executive” within these nominally democratic regimes in the new millennium (Schlesinger, 2004; O’Hehir, 2014; Yuhan, 2004). What is at the root of this emerging and seemingly universal rise of “authoritarian capitalism”? How, specifically, are contemporary processes of economic globalization not only not diminishing these established forms of authoritarianism but positively contributing and reinforcing them in the present era? To answer these questions it is necessary to approach anew a more fundamental question – what is the general relationship between economic capitalism and political authoritarianism? In addressing this deeper concern it is then possible to begin addressing how globalization is currently reflective of and evolving this relationship Peter Bloom - 9781784713157 Downloaded from Elgar Online at 09/27/2021 07:01:27AM via free access Columns Design XML Ltd / Job: Bloom-Authoritarian_capitalism / Division: 05BloomChapter1_FINAL /Pg. Position: 2 / Date: 8/2 JOBNAME: Bloom PAGE: 3 SESS: 6 OUTPUT: Wed Feb 10 09:01:02 2016 The rise of authoritarian capitalism in the twenty-first century 3 in the making of diverse forms of “authoritarian capitalism.” Crucial to such an investigation is to ask in what ways is the structural spread of capitalism internationally giving rise to renewed desires for an authori- tarian politics and the legitimization of authoritarian policies? POLITICAL AUTHORITARIANISM AND GLOBALIZATION This book explores the relationship of economic capitalism and political authoritarianism within the contemporary era of globalization. The examination of this relationship has taken on increased importance with the rise of authoritarian capitalist states on the one hand and the deployment of authoritarian-style politics by ostensibly liberal demo- cratic countries on the other. The proliferation of such a politics alongside intensified economic policies of marketization across the globe represents the emergence of diverse forms of authoritarian capitalism nationally and internationally. This manuscript illuminates the political legitimization and spread of capitalism through these different but connected authoritarian politics. This analysis emerges out of these present-day challenges and attempts to contribute to a wide range of existing literature on this topic. Traditionally marketization has been inexorably linked with processes of democratic transition. More precisely, economic liberalization is meant to be a necessary condition for democratization (see most notably Dahl, 1989; Lipset, 1959; Moore, 1967; Muller, 1995). To this end, economic and political liberalization are theorized to have a complementary rela- tionship, as the former creates the required conditions for the latter. Here, the emerging bourgeois class, formed in the transformation to a market economy, exists as an independent force challenging dictatorial rule and catalyzing the shift to liberal democracy. It follows logically, from this perspective, then that as marketization spreads globally so too will democracy. Nevertheless, this dominant perspective has long been challenged by critical, especially Marxian, scholarship emphasizing the strong function of the state in maintaining capitalist, and often oligarchic, relations (Jessop, 1990; Plamenatz, 1992; Poulantzas, 1978). Here, governments worked in conjunction with dominant capitalist classes to ensure elite rule, facilitating political authoritarianism both informally and at times formally. Historically these theories were supported by the persistence of politically authoritarian yet economically capitalist states throughout the developing world during the Cold War period (see for instance Canak, Peter Bloom - 9781784713157 Downloaded from Elgar Online at 09/27/2021 07:01:27AM via free access Columns Design XML Ltd / Job: Bloom-Authoritarian_capitalism / Division: 05BloomChapter1_FINAL /Pg. Position: 3 / Date: 8/2 JOBNAME: Bloom PAGE: 4 SESS: 4 OUTPUT: Wed Feb 10 09:01:02 2016 4 Authoritarian capitalism in the age of globalization 1984; Robison, 1988; Serra, 1979). However, with the fall of the Soviet Union there was a renewed optimism about the positive role of market- ization for fostering new democratic regimes (Fukuyama, 1989). This debate has expanded recently to encompass broader discussions of the relation of democratization with globalization. Scholars increas- ingly focus on the effect of international factors such as marketization for positively producing democratic governments in replacement of authori- tarian regimes (Drake, 1998; Whitehead, 1996). This positive view of economic liberalization as a force for democratization and against authoritarianism conforms to previous modernization theories. Economic globalization, in this sense, serves as a catalyst for a political liberaliza- tion globally. These theoretical assumptions, moreover, stand as a strong justification for policies of privatization across contexts in both develop- ing and developed countries. However, this positive relation has been put into question. By contrast, recent evidence suggests that policies of economic capitalism tend to weaken the prospect for political democracy nationally (O’Neal, 1994). Notably it is said to incentivize
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