A behavioral approach to the political and economic inquiry into the nature and causes of the wealth of nations

Deirdre McCloskey's Bourgeois Dignity (2010) represents another breakthrough work in her career, and the second volume in a multi-volume work on the economic and intellectual history of western civilization. In a sense, the subtitle of the book explains well what this volume is all about – why economics cannot explain the modern world. An important modifier would be – modern economics cannot explain the modern world – because much of what McCloskey argues is the resurrection of an older argument that was associated with classical liberal political economists from Smith, Bastiat, Mises, Hayek and Friedman. Fundamentally, she reasserts the power of ideas to shape the world. McCloskey's narrative is simple and compelling – materialist stories (whether technological, genetic, or institutional) do not work; incentive based stories do not provide a complete picture of why some countries grew rich while others remained poor, let alone for the exact timing for the divergence in the wealth and poverty of nations with the Industrial Revolution in the 18th and 19th century. McCloskey proposes that incentive based explanations must reside within a broader narrative that addresses values and beliefs, as well as institutions, technologies, and material conditions. In doing so, McCloskey paves the way for a true behavioral approach to a political and economic inquiry into the nature and causes of the wealth of nations.     

Polanyi,Hayek and embedded neoliberalism

ABSTRACT

Written originally on the seventieth anniversary of the publication of Friedrich von Hayek’s The Road to Serfdom and Karl Polanyi’s The Great Transformation, this article critically analyses how the ideas of Hayek and Polanyi have been deployed to understand neoliberalism. It argues that dominant scholarly interpretations tend to miss the significance of each thinker to an understanding of neoliberalism, as well as some of the key dynamics of neoliberal forms of capitalist regulation. Drawing upon the work of Polanyi, the article advances the concept of embedded neoliberalism. From the 1970s neoliberal regulations became deeply embedded in a series of institutions, class relations and ideological norms. This helps to explain both the durability of neoliberalism, and the onset of crisis in 2008. In this context, Hayek’s ideas are best understood as providing a malleable set of concepts underpinning neoliberal ideology, rather than the chief causal agent in the neoliberal transformation of states and economies.     

Managerial power in the German model: the case of Bertelsmann and the antecedents of neoliberalism

ABSTRACT

Our article extends research on authoritarian neoliberalism to Germany, through a history of the Bertelsmann media corporation – sponsor and namesake of Germany’s most influential neoliberal think-tank. Our article makes three moves. Firstly, we argue that conceptualizing German neoliberalism in terms of an ‘ordoliberal paradigm’ is of limited use in explaining the rise and fall of Germany’s distinctive socio-economic model (Modell Deutschland). Instead, we locate the origins of authoritarian tendencies in the corporate power exercised by managers rather than in the power of state-backed markets imagined by ordoliberals. Secondly, we focus on the managerial innovations of Bertelsmann as a key actor enmeshed with Modell Deutschland. We show that the adaptation of business management practices of an endogenous ‘Cologne School’ empowered Bertelsmann’s postwar managers to overcome existential crises and financial constraints despite being excluded from Germany’s corporate support network. Thirdly, we argue that their further development in the 1970s also enabled Bertelsmann to curtail and circumvent the forms of labour representation associated with Modell Deutschland. Inspired by cybernetic management theories that it used to limit and control rather than revive market competition among its workforce, Bertelsmann began to act and think outside the postwar settlement between capital and labour before the settlement’s hotly-debated demise since the 1990s.     

Market/society: mapping conceptions of power,ideology and subjectivity in Polanyi,Hayek, Foucault,Lukács

ABSTRACT

In light of discussions around the common anniversary of the publication of Karl Polanyi’s The Great Transformation and F.A. Hayek’s The Road to Serfdom, this article puts these texts – iconic representations of social democratic and neoliberal political theory – into conversation with Michel Foucault’s subsequent, influential critique of neoliberalism, The Birth of Biopolitics. There are interesting points of contact in the way each text constructs its argument, even as they arrive at distinct positions vis-à-vis the material and subjective nature of market society, while nevertheless sharing an opposition to Marxian approaches. Yet the work of Polanyi and Hayek’s Marxian contemporary, Lukács’ History and Class Consciousness, offers precisely a critical framework for understanding the relationship between markets, liberty and society in which the material and the subjective need not be read as antagonistic. It is thus also examined here, in an effort to shed light on how discussions of contemporary neoliberalism are framed.     

‘Our world was made by nature’: constructions of spontaneous order

ABSTRACT

This article explores the concepts of spontaneity and spontaneous order, in particular their deployment by Friedrich Hayek and Karl Polanyi. Although in many respects these thinkers were poles apart, the article identifies a point of convergence. They both mobilize the concept of spontaneity in a manner that naturalizes a particular social process: for Hayek, the market economy, for Polanyi, society’s protective movement that arises in reaction against the market economy. To contextualize the uses of spontaneity by Hayek and Polanyi, I trace its evolution, with reference to Leibniz, Mandeville, and the thinkers of the Scottish Enlightenment. Having sketched the ways in which earlier thinkers understood spontaneity, I turn finally to Hayek and Polanyi. I argue that their invocations of spontaneity and spontaneous order contribute to a downplaying of relations of domination and exploitation. While Hayek sees the market system as the exemplar of spontaneous order, for Polanyi, the concept of spontaneity underpins his belief that the protective countermovement is a ‘natural’ reaction to the evils of market society; as such, power relations pass beneath the radar.     

Behavioral economics has two ‘souls’: Do they both depart from economic rationality?

In this paper, I argue that behavioral economics, far from being a monolithic theory, consists of two different ‘souls’ and that a fundamental asymmetry exists between them, with regard to the nature of the departures from the economics’ ‘canonical model’ they focus on. While a first class of departures deals with the major cognitive limitations and systematic biases in decision-making affecting economic behavior, a second research area investigates deviations from the classic assumption that economic agents are systematically driven by the pursuit of material self-interest. Even though on methodological grounds the two research areas share a broadly inductive approach – as they both aim at incorporating the major results obtained through several empirical methods (in particular, via experimental work) into formal economic analysis –, I claim that rather different methodological conclusions and regulatory and policy implications can be drawn, depending on the cognitive or social nature of the departures from the standard economic model under study.     

Rethinking and Revising Goode’s Contribution to Global Family Change

Abstract

This essay provides a comprehensive overview of William J. Goode’s contribution to the study of global family and social change. I begin by describing Goode’s theoretical perspectives and outlining his theses dating back to the 1960s. I then provide an assessment of where and why some of his predictions proved wrong and elaborate on what we have learnt on changes in families at the global level over the past half century. Lastly, I speculate on how Goode would rethink his arguments nowadays in light of fifty years of new evidence and scholarly developments – both theoretical and methodological. In so doing, I highlight shortcomings of current approaches and outline directions for future family research and theorizing.     

In search of value: Vienna School of Art History,Austrian value theory and the others

The search of value that developed toward the end of the 19th century may be interpreted as peculiar to Austrian economists seeking to analyze and define the problem of value theory. Nevertheless, this interpretation leaves aside certain other significant disciplines where the idea and methods of the search of value were applied and came to fruition. One of the disciplines alluded to was art history. Alois Riegl, a prominent member of the Vienna School of Art History, created an original and fully applicable theory of monuments resulting from his thoughts on the question of cultural heritage preservation in Austria–Hungary. His theory of value is largely consonant with not only the value theory proposed by the Austrian economists, but also with the current theories of culture economics; in this respect, it is important to note that Riegl's theory could be interpreted similarly or identically within different disciplines of the Arts.     

Development by popular protection and Tunisia: the case of Tataouine

ABSTRACT

Recently a debate re-emerged between Adel Samara and Samir Amin on the state role in delinking – subjecting a social formation’s relationships to the world-system to a domestic, popular law of value. I suggest the arguments turns on the agent helming development. Amin’s agent is slightly more ambiguous than Samara’s, reflecting de-linking is modelled on postrevolutionary planning in Maoist China, with an explicit state role, whereas Samara, theorizing development under military occupation, spurned the state. The article assesses the arguments against contemporary Tunisia. It shows how flourishing Tunisian struggles track Samara’s development by popular protection (DBPP). The subject of history is masses engaged in struggle with state-mediated accumulation. It focuses on Tataouine’s 2017–2018 ElKamour protests. It argues Amin (1) articulates an antisystemic ideology, crucial amidst ideological disarray; (2) offers ideas for changes in financial architecture – holding programmes amidst capitalist advance; (3) build up the delinking framework which DBPP expands.     

Endocrine state is the physical manifestation of subjective beliefs

Over the past two decades, economists have begun to incorporate evidence from neuroscience into applied economic research. While some progress has been made, the wider economics profession has yet to embrace the new field of “neuroeconomics.” I argue here that a broad reconciliation of emerging evidence from neuroscience with conventional economic decision theory can be achieved by emphasizing the critical role of neuroendocrine signaling molecules and their receptors. Many of these molecules are amenable to measurement and manipulation in laboratory settings, and most have – when viewed in light of their natural history – a parsimonious interpretation as representing what economists refer to as subjective beliefs.     

Neoliberalisation,the social investment state and social work

ABSTRACT

This article focuses on the challenges to social work evolving from two major discourses contributing to the common sense contextualising social work within the new spirit of capitalism and the governing of the soul. Beside neo-liberal ideas and values challenging social work values and the welfare state, the question is also about managerialism. To what extent is the social worker able to contribute to liberating, reflexive critique, or exert pastoral power? I have chosen to see how the idea of the social investment state may be linked to Rose’s and Foucault’s ideas about expanding governmentality and end my discussion by relating to some of the early writing on social work’s challenges in confronting ideas and practices interpreted as neoliberalisation moves.     

Edward Shils’ Turn Against Karl Mannheim: The Central European Connection

This paper traces Edward Shils’ transition, during World War II, from enthusiasm to harsh criticism of Karl Mannheim, the Hungarian-born sociologist of knowledge. While serving in London, Shils drew upon a direct and explicit intellectual assault on Mannheim by fellow emigrés to England. Even while Shils maintained regular contact with Mannheim, Shils was exposed to an often vituperative dismissal of Mannheim’s work by Karl Popper and Friedrich Hayek, in the pages of the London School of Economics (LSE) journal Economica. After the war, when both Popper and Shils joined the LSE faculty—Hayek’s affiliation dated to 1931—Shils’ encounter with their critiques was deepened. And in these early postwar years, Shils became close friends with yet another emigré Mannheim critic, Michael Polanyi. Combined, these sustained and sophisticated criticisms helped wrest Shils from his interwar, Mannheim-friendly intellectual coordinates. The implications for Shils’ later propagation of the “mass society theory” label are considered.     

Starting somewhere different: methodological cosmopolitanism and the study of world politics

In this article, I contribute to the debate on Ulrich Beck's idea of ‘methodological cosmopolitanism’ from a political science perspective. How fruitful is Beck's idea for the study of world politics? How can a political science perspective turn ‘methodological cosmopolitanism’ into a more transdisciplinary subject of debate? Guided by these questions, I speak to two audiences. First, I offer political scientists a distinct strategy for empirical ‘cosmopolitan political science’ research. At the heart of this strategy is a novel object of research, the ‘cosmopolitan outlook’, understood as a discourse that breaks with the ‘national outlook’ to open possibilities for a world beyond ‘reflexive modernization’. With that, I shift the perspective from structure to discourse and broaden the normative grounds on which to assess cosmopolitan reality. Rather than just considering the emergence of normative cosmopolitan ideals, I build into cosmopolitan research the normative, empirical question of whether we see an emergence of a world beyond reflexive modernization. Second, I address scholars outside the field of political science who are interested in methodological cosmopolitanism by offering the ‘cosmopolitan outlook’ as a novel object of study that could also be explored from other disciplinary perspectives and by proposing they put the question of the purpose of methodological cosmopolitanism centre stage. This question can, I argue, constitute grounds for substantial debates on methodological cosmopolitanism not already precluded through disciplinary premises and concerns. Contributing to such a transdisciplinary debate, I distinguish between the long‐term and immediate purpose of methodological cosmopolitanism, the former being about the development of a cosmopolitan language and grammar and the latter about empirical explorations of the reality of the ‘cosmopolitan outlook’, eventually and in a collective and transdisciplinary endeavour building up to contribute to the former.     

Climate riskscapes in world port cities: situating urban‐cosmopolitan risk communities via Ulrich Beck's comparative tactics

Building on empirical research into translocal connections among world port cities in addressing shared challenges of climate risk mitigation and adaptation, in this article I review two widespread tendencies in urban studies – methodological city‐ism and methodological globalism respectively – as a springboard for articulating a methodologically cosmopolitan alternative. This alternative, I argue, involves epistemological issues of how to interrogate ‘the urban’ as assemblages that constitutively draw together the near and the faraway, as well as more practical issues of mobile, multisited, and comparative urban research methods. Empirically, I compare the ways in which urban actors stage global climate risks on the waterfronts of four world cities – Hong Kong, Rotterdam, Yokohama and Copenhagen – to argue that such a comparative tactic of variable ‘riskscapes’ helps situate Ulrich Beck's notion of urban cosmopolitan risk communities more thoroughly into urban studies. In such ways, I suggest, Beck's methodological cosmopolitanism is germane to studying ongoing and far ranging transformation in world political geography, in which transurban networks, communities, and governance arrangements come to complement nation‐state centred institutions. Such conclusions must be tempered, however, by the deployment of Beck's equally strong impetus towards comparative attention to the varieties of second modernity; and doing so, I conclude, aligns well with ongoing transformations in urban studies itself.     

Futurelessness,migration, or a lucky break: narrative tropes of the ‘blocked future’ among Serbian high school students

ABSTRACT

This article uses ethnographic discourse analysis to understand how Serbian high school students at ‘Belgrade Professional’ (BP) respond to coursework and discussions about their individual futures. Contextualizing the conversations at BP within broader local and international social forces, the paper shows how students’ perceptions of their future chances are mediated by both the school’s outdated promises of secure skilled employment and a broad understanding of Western liberal democracies as ‘meritocratic’. In short, I argue that BP students recognize the elective ‘choice biography’ as a real pathway to adulthood. However, they primarily imagine the choice biography as existing outside of Serbia, while feeling constrained by – even hostile to – such an idea within the country. To counter choice biography framings of futures in Serbia, students mobilize a discourse I call the ‘blocked future’, comprised of three related narrative tropes informed by the decades-long recession: domestic futurelessness, meritocracy abroad, and local chance. These narrative tropes illuminate the emerging cultural structures in Serbia which reflect how people cope with and processes the conflicting structural demands and unfulfilled promises of the post-socialist transition in everyday life.     

The power to transform? Mexico’s ‘Fourth Transformation’ under President Andrés Manuel López Obrador

ABSTRACT

We engage in a conjunctural analysis of political change (Gramsci; Hall), power (Lukes) and transformation (Polanyi) to inquire into López Obrador’s political project; ‘The Fourth Transformation’ from July 2018 until December 2019. We analyse characteristics and consequences of the use of power by López Obrador as concerns the ‘power to do what?’ in the name of the 4T, shadowed by structural constraints. Additionally, inquiring the paradox of neoliberal ideas underlying changes in the Federal Public Administration in the name of austerity and the fight against corruption. We conclude that López Obrador is not exploiting this historical conjuncture to bring about ‘the primacy of politics over economics,’ and that signs have yet to emerge of a comprehensive transformation of the neoliberal economic foundations, from a structural analysis perspective. The paradox of neoliberal ideas underlying the 4T is coupled with a peculiar, backward-looking vision for national transformation; a ‘retro-formation’ in the making.     

Working precarious careers trajectories: tracing neoliberal discourses in younger workers’ narratives

ABSTRACT

The aim of this article is to explore how, in the context of the post Global Financial Crisis (GFC), some Italian younger workers in a specific geographical region in Italy recount their work trajectories. Drawing on narrative interviews with ten participants (aged between 24 and 30) as part of a research project carried out in the Autonomous region of Aosta Valley in Italy, the article traces discourses closely associated with neoliberalism – the discourses of the entrepreneurial self, employability and self-responsibilisation – through which subjects’ work experiences take shape. Moreover, the analysis highlights how locality, one’s personal relation with the geographical territory, makes more complex the younger people’s negotiations in crafting themselves vis-à-vis precarious employment opportunities and wider socio-economic dynamics in respect of precarious employment opportunities.     

Switching labels: The role of Weberian ideas in market change. A case study of the German wine market

How do cultural ideas shape market construction? What do ideas ‘do’ to actors in markets? The paper presents an empirical case study of the reconstitution of the German wine market following an EU legislative intervention. I use Bourdieu's theory of fields to analyse the actors’ economic, social and cultural capitals and the impact of these capitals on the actors’ positioning in the political debate. Sensitised by recurring problems in the empirical data analysis, I then, however, argue that Weber's notion of ideas, as presented in his famous switchmen metaphor, is better suited than, or indeed should serve as a complement to, Bourdieu's frame of analysis. It is better suited, I argue, because it refers to a unique and irreducible source of culture while Bourdieu's capitals remain ‘tools' in a struggle for power and dominance in the field.