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Neo-Liberalism, the Third Way and Anti-Globalisation

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Neo-Liberalism, the Third Way and Anti-Globalisation The Clash of Globalisations Historical Materialism Book Series Editorial Board Paul Blackledge, Leeds – Sebastian Budgen, Paris Jim Kincaid, Leeds – Stathis Kouvelakis, Paris Marcel van der Linden, Amsterdam China Miéville, London – Paul Reynolds, Lancashire VOLUME 8 The Clash of Globalisations Neo-Liberalism, the Third Way and Anti-Globalisation by Ray Kiely BRILL LEIDEN • BOSTON 2005 This book is printed on acid-free paper. Library of Congress Cataloging-in-Publication Data Kiely, Ray, 1964– The clash of globalisations : neo-liberalism, the third way, and anti- globalisation/by Ray Kiely. p. cm. — (Historical materialism book series, ISSN 1570–1522 ; v. 8) Includes bibliographical references and index. ISBN 90-04-143 18-1 (alk. paper) 1. Globalization. 2. Anti-globalization movement. I. Title: Clash of globalizations. II. Title. III. Historical materialism book series ; 8. JZ1318.K54 2005 303.408'2–dc22 2004065466 ISSN 1570-1522 ISBN 90 04 14318 1 © Copyright 2005 by Koninklijke Brill NV, Leiden, The Netherlands. Koninklijke Brill NV incorporates the imprints Brill Academic Publishers, Martinus Nijhoff Publishers and VSP. All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from the publisher. Authorization to photocopy items for internal or personal use is granted by Brill provided that the appropriate fees are paid directly to The Copyright Clearance Center, 222 Rosewood Drive, Suite 910, Danvers, MA 01923, USA. Fees are subject to change. PRINTED IN THE NETHERLANDS To Emma and Will, with love Contents Acknowledgements ........................................................................................ xi Chapter One Introduction .......................................................................... 1 PART ONE ACTUALLY EXISTING GLOBALISATION Chapter Two Capitalism, Globalisation and Uneven Development .................................................................................................. 13 2.1 Globalisation theory: Giddens and Castells ................................ 14 2.2 Capitalism, the state and uneven development .......................... 25 2.3 Conclusion .......................................................................................... 46 Chapter Three From Bretton Woods to Neo-Liberal Globalisation .... 48 3.1 The Golden Age: post-war capitalism, 1947 to 1973 .................. 49 3.2 The end of the Golden Age and the rise of neo-liberalism ...... 56 3.3 Neo-liberalism in the 1980s ............................................................ 63 3.4 Summary ............................................................................................ 77 Chapter Four Globalisation and the Third Way in the 1990s .............. 81 4.1 The globalisation project 1: globalisation and the Third Way revisited .............................................................................................. 82 4.2 The globalisation project 2: the Third Way and development ...................................................................................... 87 4.3 The reality of globalisation 1: the new economy in the United States ...................................................................................... 96 4.4 The reality of globalisation 2: emerging markets in the 1990s 102 viii • Contents 4.5 Global finance and US hegemony .................................................. 109 4.6 The WTO and the expansion of free trade .................................. 117 4.7 Conclusion: Third-Way ideology and the reality of globalisation ........................................................................................ 125 Chapter Five Globalisation, Inequality and Poverty ............................ 126 5.1 Economic globalisation: trade, investment and finance ............ 127 5.2 Globalisation and growth, poverty and inequality .................... 136 5.3 Globalisation and uneven development: US hegemony, and the end of ‘labour-friendly’ and ‘development-friendly’ régimes ................................................................................................ 149 5.4 Conclusion: globalisation and the anti-globalisation movement .......................................................................................... 159 PART TWO ‘ANTI-GLOBALISATION’ Chapter Six The Politics of Anti-Globalisation and Alternative Globalisations .................................................................................................. 165 6.1 What is wrong with actually existing globalisation? .................. 166 6.2 Alternatives to anti-globalisation .................................................. 176 6.3 Conclusion: globalisation and spaces of resistance .................... 189 Chapter Seven Civil Society 1. National Social Movements and Anti-Globalisation Politics ............................................................................ 192 7.1 Progressive politics: old and new Lefts ........................................ 194 7.2 Social and political movements in the South .............................. 204 7.3 Social movements and the ‘new’ politics of resistance: an assessment .................................................................................... 210 7.4 Conclusion: social movements, cultural politics and the commons ............................................................................................ 222 Contents • ix Chapter Eight Civil Society 2. No Sweat, No Debt, No War: Transnational Social Movements and Global Civil Society .................... 226 8.1 Transnational capital and global resistance .................................. 227 8.2 No debt .............................................................................................. 229 8.3 International trade unionism and no sweat ................................ 232 8.4 War and the anti-globalisation movement .................................. 242 8.5 Conclusions: global solidarity, the nation-state and transnational civil society ................................................................ 250 Chapter Nine Anti-Globalisation and Progressive Politics: Capitalism, Socialism and Populism in the Twenty-First Century ...... 255 9.1 The progressiveness of capitalism .................................................. 256 9.2 Alternatives within capitalism ........................................................ 262 9.3 Agency, globalisation and anti-globalisation ................................ 275 9.4 Conclusion: alternatives to capitalism? ........................................ 286 Chapter Ten Conclusions .......................................................................... 292 10.1 Globalisation as process ................................................................ 292 10.2 Globalisation as project .................................................................. 293 10.3 Globalisation as outcome .............................................................. 297 10.4 The clash of globalisations ............................................................ 299 References ........................................................................................................ 301 Index ................................................................................................................ 319 Acknowledgements Thanks to Sebastian Budgen, Denis Cattell, Matthew Caygill, Stephen Chan, Alejandro Colas, Paul Gormley, Paul Kennedy, Jim Kincaid, Jens Lerche, Iain Macrury, Alan O’Shea, Ash Sharma, Subir Sinha, Peter Waterman, for support, discussion and inspiration over the course of writing this book, even if some may be unaware of their influence. More generally, thanks to those intellectuals who remain committed to progressive social transformation, and whose work continues to be inspired by this aspiration, rather than the narrow dictates of technocratic, Third-Way academia. Chapter One Introduction From the 1990s onwards, globalisation became the key concept, both in academic debate and in mainstream political discourse. In the Western world, it came to be closely associated with the Third- Way political project, which proposed a radical centre ground that transcended statist socialism (in its Stalinist and social-democratic forms) and neo-liberal market fundamentalism. Globalisation was a term commonly used by Bill Clinton and Tony Blair in particular, and, in Britain at least, academic debate and political project embraced, through the work of Anthony Giddens. In the advanced capitalist countries, the idea of a new economy was championed, in which the old boom- bust cycles of industrial capitalism were replaced by ongoing economic growth boosted by the information-led, ‘new economy’. At the same time, it was claimed that the developing world could get in on the act too, through the adoption of liberal policies that would attract investment, boost trade, and promote long-term growth. Initially, such investment would be based on the attraction of cheap labour, as this was how the West had developed, and, in the long run, increased investment would promote economic growth, and with this growth higher wages and better living conditions would result. 2 • Chapter One In terms of the economy then, globalisation was said to refer to an increasingly interdependent world. Information flows transcended nation- states, and knowledge was deemed to be the main source of value in the post-industrial
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