UNLV Theses, Dissertations, Professional Papers, and Capstones 2009 A Perspective of global capitalism James Soller University of Nevada Las Vegas Follow this and additional works at: https://digitalscholarship.unlv.edu/thesesdissertations Part of the International and Area Studies Commons, International Economics Commons, International Law Commons, and the International Relations Commons Repository Citation Soller, James, "A Perspective of global capitalism" (2009). UNLV Theses, Dissertations, Professional Papers, and Capstones. 130. http://dx.doi.org/10.34917/1385074 This Thesis is protected by copyright and/or related rights. It has been brought to you by Digital Scholarship@UNLV with permission from the rights-holder(s). You are free to use this Thesis in any way that is permitted by the copyright and related rights legislation that applies to your use. 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A PERSPECTIVE OF GLOBAL CAPITALISM by James Soller Bachelor of Arts University of Nevada, Las Vegas 2005 A thesis submitted in partial fulfillment of the requirements for the Master of Arts in Political Science Department of Political Science College of Liberal Arts Graduate College University of Nevada, Las Vegas December 2009 Copyright by James Soller 2010 All Rights Reserved THE GRADUATE COLLEGE We recommend that the thesis prepared under our supervision by James Soller entitled A Perspective of Global Capitalism be accepted in partial fulfillment of the requirements for the degree of Master of Arts Political Science Jonathan Strand, Committee Chair Mark Lutz, Committee Member Dennis Pirages, Committee Member David Hassenzahl, Graduate Faculty Representative Ronald Smith, Ph. D., Vice President for Research and Graduate Studies and Dean of the Graduate College December 2009 ii ABSTRACT A Perspective of Global Capitalism by James Soller Dr. Jonathan R. Strand, Examination Committee Chair Associate Professor of Political Science University of Nevada, Las Vegas Since the 1970s, the political-economic structure of global society has undergone drastic restructuring. International political economy is concerned with providing explanations for these changes. This thesis will provide an alternative view of international relations that is often marginalized in the mainstream literature. It will be argued that global society needs to be understood under the historical context of capitalism and the class relations that stem from it. Central to this argument is a Gramscian derived articulation of hegemony. Thus, hegemony will be conceptualized in this thesis as a transnational class that governs over global society through consent and coercion. While hegemony is usually understood as a dominant state or a collection of powerful states, the state-centric perspective that has persisted in international political economy will be rejected. Moreover, the driving force behind the reorientation of production, finance, institutions, ideas and social relations in recent decades is a transnational class movement of capitalism or what will be referred to in this thesis as neo-liberal hegemony. From this perspective, neo-liberal hegemony can be understood as a class configuration of productive forces, institutions, transnational firms, intellectuals, political elites and most importantly the role of ideas. iii ACKNOWLEDEMENTS I would like to extend my gratitude to professor Jonathan Strand in the political science department. Without his guidance, instruction and dedication, I would not have been able to complete this thesis. I would also like to thank the other faculty and staff members of the political science department who have been helpful and supportive since I began the graduate program in 2005. Furthermore, I would like to dedicate this thesis to the following people. First, my mother and father who have worked hard their entire lives without the slightest complaint. It is people like them who represent the true working classes of society. This work is also inspired by and dedicated to the many wonderful people, from different parts of the world, which I have been fortunate enough to meet in the last few years. Lastly, this thesis is dedicated to the lovely, intelligent and beautiful Ms. Yumi Kabasawa. iv TABLE OF CONTENTS ABSTRACT ....................................................................................................................... iii ACKNOWLEDEMENTS .................................................................................................. iv CHAPTER 1 INTRODUTION ........................................................................................ 1 Building on a Gramscian Perspective ............................................................................. 2 Chapter Overview ........................................................................................................... 6 CHAPTER 2 THEORETICAL PERSPECTIVE ............................................................. 9 The Limitations of Structural Realism and Liberal IPE ................................................ 11 Historical Materialism in IPE ........................................................................................ 20 CHAPTER 3 MARX, GRAMSCI, HEGEMONY AND STRUCTURE ..................... 23 Marx’s Historical Materialism ...................................................................................... 24 Gramsci and Hegemony ................................................................................................ 31 Gramsci and Counter-Hegemony .................................................................................. 35 Hegemony at the International Level ............................................................................ 38 Neo-liberal Hegemony and the State ............................................................................ 39 CHAPTER 4 KEYNESIANISM TO NEO-LIBERALISM ......................................... 45 Neo-liberalism Defined ................................................................................................. 45 Post-War Keynesianism ................................................................................................ 46 The Antithesis to Keynes .............................................................................................. 49 Structural Transition: From the 1970s Onward ............................................................. 54 The Chicago School and Chile ...................................................................................... 59 Reaganism ..................................................................................................................... 64 CHAPTER 5 MOVING TOWARD THE WASHINGTON CONSENSUS ................ 72 From ISI to Debt Crisis ................................................................................................. 73 Changing Nature of the IMF and World Bank .............................................................. 82 Structural Adjustment Before the Washington Consensus ........................................... 84 The Washington Consensus .......................................................................................... 89 CHAPTER 6 THE RECORD OF STRUCTURAL ADJUSTMENT PROGRAMS .. 100 Poverty and Inequality ................................................................................................ 102 Growth ......................................................................................................................... 107 The Consequences of Perpetual Debt .......................................................................... 109 The Liberal Assessment .............................................................................................. 118 Who does the IMF Benefit? ........................................................................................ 124 CHAPTER 7 CONCLUSION .................................................................................... 129 Beyond Neo-liberalism ............................................................................................... 136 v BIBLIOGRAPHY ........................................................................................................... 139 VITA ............................................................................................................................... 146 vi CHAPTER 1 INTRODUCTION Since the end of the Bretton Woods era, 1 the world has undergone a significant structural transformation. Neo-liberalism is a term that is commonly used to describe the contemporary order of global capitalism. This transformation can be attributed to a movement on the right to dismantle the post-war Keynesian policy regime and patterns of redistribution in the third world. In recent years, neo-liberal discourse has persistently won out in the battle of ideas, productive practices and perceptions of common sense pertaining to world order. This has resulted in a profound effect on both domestic and international forces. Moreover, the expansion of free market forces and neo-liberal ideas has engendered globalization. In the developed north, neo-liberalism has been consolidated through a hegemonic