Financial Reform Or Business As Usual? CRESC Assesses the Evidence N October, CRESC’S ‘Alternative Report on the Global Financial Markets
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ESRC Centre for Research on Socio-Cultural Change CRESCNews ISSUE 10 FEBRUARY 2010 Financial Reform or Business as Usual? CRESC Assesses the Evidence n October, CRESC’s ‘Alternative Report on the global financial markets. Drawing on about the social value of finance which have UK Banking Reform’ made waves in the research produced by a 12 strong working been re-used since 2008 to deflect any re- Idebate about the extent to which the group of CRESC researchers and outside regulation which threatens to harm the government should increase regulation in the practitioners, CRESC’s public interest Report competitive position of the City of London financial sector following the 2008 crash in challenged the old City of London arguments [continued on Page 2] In this issue: New CRESC Director: CRESC’s Alternative Report on Banking Reform p2 Welcome to John Law Researching Transformative Events: Witness Seminars as Method p3 Researching the City p4 London Olympic Legacy p5 New Research p6 The challenge of the digital p7 Picturing Rank p7 Anish Kapoor p8 Welcome to John Law p9 Q & A: Meral Özbek p10 ohn Law is joining CRESC in April. Following the departure of one of CRESC’s founding CRESC Conferences p11 directors Tony Bennett, John is moving from Lancaster to the Chair of Sociology at the JOpen University. He’ll be working closely with OU colleagues Marie Gillespie and New Working Papers p12 Sophie Watson as a CRESC Centre Director, and will be convening the new Social Life of Method (SLOM) research theme with Evelyn Ruppert and Mike Savage. John’s background is interdisciplinary. [continued on page 9] www.cresc.ac.uk CRESC News Issue 10 February 2010 THEME 1: REMAKING CAPITALISM CRESC’s Alternative Report on Banking Reform Adam Leaver and Karel Williams [continued from p1] It was thus unsurprising Exhibit 1: An analysis of the Bischoff Report to CRESC researchers that in December’s Pre- Public Sector Budget Report the government announced a 60 Years (9%) tax on banking bonuses and the New Year’s Media honours list then pointedly omitted bankers, 71 Years (11%) including the outgoing Lord Mayor. These changes marked the end of the cosy deferential relation between British political Para-Finance Industry City 205 Years classes and London’s financial elites .The 36 Years 495 years (31%) bonus tax proposal predictably sparked a (5%) 75% hostile reaction from the City. As Angela Knight of the British Bankers Association warned, the tax was ‘populist, political and Fund penal’. Management 66 Years It is likely that CRESC’s ‘Alternative Report on (10%) UK Banking Reform’* contributed to the shift Non-City in opinion in the preceding months. Earlier in 167 years 2009, the Treasury White Paper Reforming 25% Financial Markets accepted the Bischof and Financial Wigley reports’ narrative about the benefits Infrastructure of financial services to the British economy. 38 Years (6%) Banking The Alternative Report was taken up in the 186 Years (28%) Observer and the Guardian whose first leader (16 October 2009) praised CRESC’s "excellent corrective" to the finance lobby’s "fairy story" about taxes paid and jobs created. Number of panelists: 21 Subsequent coverage in the Guardian and Total number of years experience: 662 Average number of years experience: 32 Financial Times focused on the Report’s political analysis of excessive "insider" Source: Publicly available information on the members of the Bischoff Working Group influence. (i.e. jobs in consultancy, accounting and law been made, the answer is that finance sector The tax revenues from the finance sector are dependent on finance) added another insiders and lobbyists had undue influence now offset by the immediate cost of bank 500,000 workers. According to these figures over the Bischof and Wigley reports. As CRESC bail-out. In the five years up to 2006/7, the the finance sector (directly and indirectly) calculated, the Bischoff committee members finance sector paid and collected £203 billion employs less people than British had 75% of their 662 years of work in taxes in the UK, but the immediate, manufacturing. experience in the City or City-related services. upfront cost of the UK bail-out was £289 Another Guardian first leader (26 November billion, and this could rise potentially to Finally, finance concentrates rather than 2009) used these results to lambast official £1,183 billion. This is a pro cyclical sector diffuses prosperity because of the reports, like the Walker Report on bank which socialises its losses so that the tax geographical clustering of wholesale governance, as "chaps talking to chaps and payer is largely responsible when the bubble employment in East London. Highly paid coming up with a few limp proposals that bursts. investment banking jobs are heavily clustered need not inconvenience anyone too much". within the City Mile and Canary Wharf, whilst In finance, rising profitability on the upswing So CRESC helped make the financial crisis into retail banks do not create jobs as they must does not translate into new jobs. By 2007 the a democratic issue. control high street and back office head count finance sector directly employed around 1 as they attempt to deliver shareholder value. * downloadable from the home page of our million workers (mainly in retail), which was web site at www.cresc.ac.uk. no more than in 1991. Indirect employment If we ask why these points had not previously 2 CRESC News Issue 10 February 2010 THEME 2: REFRAMING THE NATION Researching Transformative Events: Witness Seminars as Method Francis Dodsworth ver the course of the last year work in participants stimulate one another’s Theme 2 has taken a new memories, or react to discoveries about Omethodological direction with the use others’ perspectives or motivations that were of the witness seminar as a research format. unknown to them at the time the events took In research carried out in concert with place. This approach prevents the discussion CRESC’s affiliated ‘Tuning In’ project, and of the subject from being dominated by the along with researchers in Theme 3, two perspective and concerns of the researchers witness seminars were held on a) the involved, giving a good sense of what the Bangladesh Liberation War of 1971, which participants considered important and the saw the establishment of Bangladesh as an extent to which they agreed about this. We independent state, and b) the fall of the found it also gave significant insights into the Berlin Wall in 1989, which marked the end of operation of the BBC World Service which the post-war settlement in Eastern Europe might not have been evident from individual and the beginning of the fall of communism. interviews. These two witness seminars drew together The witness seminars were important events members of the BBC World Service who in themselves, both for the researchers and reported on these seminal events at the time, hopefully for the participants, providing a many of whom had not seen one another form of commemoration and camaraderie as since the events took place, along with other well as a source of information for further agents involved in the processes they study. However, we did not want to make the reported on. witness seminars the end of our research, A witness seminar is essentially a form of rather we sought to use them as a way of group interview in which participants in the stimulating a new research trajectory. events under discussion can meet together to Therefore we used the information and debate their role in and perception of the perspective we gained from these seminars issues. The format was devised in the 1980s to frame a new set of questions or an array of as a means of studying the recent past by the traditional oral history interviews that Institute for Contemporary British History allowed us to follow up the issues raised in (now the Centre for Contemporary British the seminars in more depth and to offer History) at the Institute of Historical critical engagement with some of the Research. Unlike traditional oral history, comments made. which relies on individual interviews carried out by a researcher, the witness seminar allows the participants to interact with one another, taking the conversation in different directions as new details or perspectives are A witness seminar is essentially a form of group uncovered. Although usually mediated by an academic chair with a set of issues they ask interview in which participants in the events under the panel to address, this gives much more “discussion can meet together to debate their role in freedom to the participants to engage with one another and may draw out issues that and perception of the issues. would otherwise have remained buried as ”3 CRESC News Issue 10 February 2010 THEME 3: GOVERNING CULTURES: CITIES, POLICIES AND HERITAGE Researching the City Sophie Watson esearching the City is a significant new research initiative in Theme 3 to Rcomplement those research areas that were already thriving - notably an engagement with the relationship between governance and culture, in particular museums and the heritage sector. This initiative takes forward the notion of the city as a tool of government and pushes it into an exploration on how the materiality of urban space intersects with urban cultures. The notion of materiality encompasses the importance of economic processes in understanding cities as well as the idea of the city as a built environment which ‘solidifies’ social and cultural processes in visible and material ways. Buildings and built environments are thus read as texts which reveal embedded social and cultural processes. Visual signs, symbols and artefacts Shanghai Skyline are key here. So too are the ways in which governmental policies act to embed social involved in a program of work arguing for a social practice, infrastructure and and cultural relations in particular urban conceptualization of the making of urban institutional organisation in the government spaces and forms.