IDEAS home Printed from https://ideas.repec.org/a/sae/reorpe/v46y2014i3p308-330.html
   My bibliography  Save this article

Historical Precedents, Contemporary Manifestations

Author

Listed:
  • Thomas Marois

    (SOAS, University of London, London, UK)

Abstract

Mexican society has experienced three costly finance-related crises in 1982, 1994-95, and 2008-09. In each case the continuity of capitalist development depended in large part on state authorities drawing the worst financial risks into the state apparatus, that is, on socialization. While most understandings of socialization remain at a largely technical understanding, I argue that the socialization of financial risk in Mexico rests on distinctively class-based material and institutional processes. The processes of socialization have been historically constitutive of neoliberalism and the current phase of financial accumulation in Mexico.

Suggested Citation

  • Thomas Marois, 2014. "Historical Precedents, Contemporary Manifestations," Review of Radical Political Economics, Union for Radical Political Economics, vol. 46(3), pages 308-330, September.
    • Handle: RePEc:sae:reorpe:v:46:y:2014:i:3:p:308-330
    as

    Download full text from publisher

    File URL: http://rrp.sagepub.com/content/46/3/308.abstract
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Howard Stein, 2010. "Financial liberalisation, institutional transformation and credit allocation in developing countries: the World Bank and the internationalisation of banking," Cambridge Journal of Economics, Oxford University Press, vol. 34(2), pages 257-273, March.
    2. Demir, FIrat, 2009. "Financial liberalization, private investment and portfolio choice: Financialization of real sectors in emerging markets," Journal of Development Economics, Elsevier, vol. 88(2), pages 314-324, March.
    3. Maurice Obstfeld, 2009. "International Finance and Growth in Developing Countries: What Have We Learned?," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 63-111, April.
    4. Aaron Tornell, 2004. "Banks, Bailout Guarantees, and Risky Debt," NBER Chapters, in: Governance, Regulation, and Privatization in the Asia-Pacific Region, pages 425-453, National Bureau of Economic Research, Inc.
    5. Aaron Tornell & Frank Westermann & Lorenza Martinez, 2003. "Liberalization, Growth, and Financial Crises: Lessons from Mexico and the Developing World," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 1-112.
    6. Mr. Fabian Valencia & Mr. Luc Laeven, 2008. "Systemic Banking Crises: A New Database," IMF Working Papers 2008/224, International Monetary Fund.
    7. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
    8. Haber, Stephen, 2005. "Mexico's experiments with bank privatization and liberalization, 1991-2003," Journal of Banking & Finance, Elsevier, vol. 29(8-9), pages 2325-2353, August.
    9. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
    10. Rogozinski, Jacques, 1998. "High Price for Change: Privatization in Mexico," IDB Publications (Books), Inter-American Development Bank, number 268.
    11. José Antonio Ocampo, 2009. "Latin America and the global financial crisis," Cambridge Journal of Economics, Oxford University Press, vol. 33(4), pages 703-724, July.
    12. Costas Lapavitsas & Paulo L. Dos Santos, 2008. "Globalization and Contemporary Banking: On the Impact of New Technology," Contributions to Political Economy, Oxford University Press, vol. 27(1), pages 31-56.
    13. Maurice Obstfeld, 2009. "International Finance and Growth in Developing Countries: What Have We Learned?," NBER Working Papers 14691, National Bureau of Economic Research, Inc.
    14. Carmen M. Reinhart & M. Belen Sbrancia1, 2015. "The liquidation of government debt," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 30(82), pages 291-333.
    15. Harney, Stefano, 2010. "Accounting, risk, and revolution," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(1), pages 14-17.
    16. World Bank, 2012. "World Development Report 2013 [Rapport sur le développement dans le monde 2013]," World Bank Publications - Books, The World Bank Group, number 11843, December.
    17. World Bank, 2012. "Global Financial Development Report 2013 : Rethinking the Role of the State in Finance," World Bank Publications - Books, The World Bank Group, number 11848, December.
    18. Rogers, F. Halsey, 2010. "The global financial crisis and development thinking," Policy Research Working Paper Series 5353, The World Bank.
    19. James Crotty, 2009. "Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture'," Cambridge Journal of Economics, Oxford University Press, vol. 33(4), pages 563-580, July.
    20. José Julián Sidaoui, 2005. "Policies for international reserve accumulation under a floating exchange rate regime:the experience of Mexico (1995-2003)," BIS Papers chapters, in: Bank for International Settlements (ed.), Globalisation and monetary policy in emerging markets, volume 23, pages 216-29, Bank for International Settlements.
    21. Pratap, Sangeeta & Quintin, Erwan, 2011. "Financial crises and labor market turbulence," Journal of Monetary Economics, Elsevier, vol. 58(6), pages 601-615.
    22. Charles P. Kindleberger & Robert Z. Aliber, 2005. "Manias, Panics and Crashes," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-0-230-62804-5.
    23. Davide Furceri & Annabelle Mourougane, 2009. "Financial Crises: Past Lessons and Policy Implications," OECD Economics Department Working Papers 668, OECD Publishing.
    24. Philip Arestis & Asena Caner, 2010. "Capital account liberalisation and poverty: how close is the link?," Cambridge Journal of Economics, Oxford University Press, vol. 34(2), pages 295-323, March.
    25. Kate Bayliss, 2008. "Water and Electricity in Sub-Saharan Africa," Palgrave Macmillan Books, in: Kate Bayliss & Ben Fine (ed.), Privatization and Alternative Public Sector Reform in Sub-Saharan Africa, chapter 5, pages 88-122, Palgrave Macmillan.
    26. Stallings, Barbara & Studart, Rogério, 2006. "Finance for development: Latin America in comparative perspective," Copublicaciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1913 edited by Brookings Institution Press.
    27. Jacques Rogozinski, 1998. "High Price for Change: Privatization in Mexico," IDB Publications (Books), Inter-American Development Bank, number 16438, February.
    28. José A. Pagán & Gökçe Soydemir & José A. Tijerina‐Guajardo, 2001. "The Evolution Of Vat Rates And Government Tax Revenue In Mexico," Contemporary Economic Policy, Western Economic Association International, vol. 19(4), pages 424-433, October.
    29. Alfredo Saad-Filho & Maria de Lourdes R. Mollo, 2002. "Inflation and stabilization in Brazil: a political economy analysis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 34(2), pages 109-135, June.
    30. repec:idb:brikps:16438 is not listed on IDEAS
    31. World Bank, 2012. "World Development Report 2012 [Rapport sur le développement dans le monde 2012]," World Bank Publications - Books, The World Bank Group, number 4391, December.
    32. Teichman, Judith, 2008. "Redistributive Conflict and Social Policy in Latin America," World Development, Elsevier, vol. 36(3), pages 446-460, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahmet Zaifer, 2018. "The Acceleration of Privatization: Understanding State, Power Bloc, and Capital Accumulation in Turkey," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(4), pages 810-829, December.
    2. Ilias Alami, 2019. "Post-Crisis Capital Controls in Developing and Emerging Countries: Regaining Policy Space? A Historical Materialist Engagement," Review of Radical Political Economics, Union for Radical Political Economics, vol. 51(4), pages 629-649, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Indermit S Gill & Naotaka Sugawara & Juan Zalduendo, 2014. "The Center Still Holds: Financial Integration in the Euro Area," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(3), pages 351-375, September.
    2. Keskinsoy, Bilal, 2017. "Taxi, Takeoff and Landing: Behavioural Patterns of Capital Flows to Emerging Markets," MPRA Paper 78129, University Library of Munich, Germany.
    3. Claessens, Stijn & Ayhan Kose, M. & Terrones, Marco E., 2010. "The global financial crisis: How similar? How different? How costly?," Journal of Asian Economics, Elsevier, vol. 21(3), pages 247-264, June.
    4. Mika Nieminen, 2017. "Patterns of international capital flows and their implications for developing countries," WIDER Working Paper Series wp-2017-171, World Institute for Development Economic Research (UNU-WIDER).
    5. Gianni De Nicolo & Luciana Juvenal, 2010. "Financial integration and risk-adjusted growth opportunities: a global perspective," Working Papers 2010-012, Federal Reserve Bank of St. Louis.
    6. Kose, M. Ayhan & Prasad, Eswar & Rogoff, Kenneth & Wei, Shang-Jin, 2010. "Financial Globalization and Economic Policies," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4283-4359, Elsevier.
    7. Morris Goldstein & Daniel Xie, 2009. "The impact of the financial crisis on emerging Asia," Proceedings, Federal Reserve Bank of San Francisco, issue Oct, pages 27-80.
    8. Malgorzata A. Olszak & Mateusz Pipien, 2013. "Cross country linkages as determinants of procyclicality of loan loss provisions – empirical importance of SURE specification," Faculty of Management Working Paper Series 22013, University of Warsaw, Faculty of Management.
    9. Coeurdacier, Nicolas & Rey, Hélène & Winant, Pablo, 2020. "Financial integration and growth in a risky world," Journal of Monetary Economics, Elsevier, vol. 112(C), pages 1-21.
    10. Rakesh Mohan & Muneesh Kapur, 2012. "Liberalization and Regulation of Capital Flows: Lessons for Emerging Market Economies," Chapters, in: Masahiro Kawai & David G. Mayes & Peter Morgan (ed.), Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia, chapter 6, Edward Elgar Publishing.
    11. Abdul Rashid & Fazal Husain, 2013. "Capital Inflows, Inflation, and the Exchange Rate Volatility- An Investigation for Linear and Nonlinear Causal Linkages," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(3), pages 183-206.
    12. Markus Alzer & Ramin Dadasov, 2013. "Financial Liberalization and Institutional Development," Economics and Politics, Wiley Blackwell, vol. 25(3), pages 424-452, November.
    13. Bilgehan Tekin, 2021. "Modeling the Relation of Financial Integration-Economic Growth with GMM and QR Methods," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 8, pages 32-47.
    14. Raouf Boucekkine & Giorgio Fabbri & Patrick A. Pintus, 2018. "Short-run pain, long-run gain: the conditional welfare gains from international financial integration," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 329-360, March.
    15. Marcelo Madureira Prates, 2013. "Why Prudential Regulation Will Fail to Prevent Financial Crises. A Legal Approach," Working Papers Series 335, Central Bank of Brazil, Research Department.
    16. Steven Poelhekke, 2016. "Financial Globalization and Foreign Direct Investment," Tinbergen Institute Discussion Papers 16-098/VIII, Tinbergen Institute.
    17. Jaume Ventura & Fernando Broner, 2008. "Rethinking the effects of financial liberalization," 2008 Meeting Papers 747, Society for Economic Dynamics.
    18. Arribas, Iván & Peiró-Palomino, Jesús & Tortosa-Ausina, Emili, 2020. "Is full banking integration desirable?," Journal of Banking & Finance, Elsevier, vol. 112(C).
    19. Ali, Amjad & Ehsan, Rehan & Audi, Marc & Hamadeh, Hani Fayad, 2022. "Does Globalization Promote Financial Integration in South Asian Economies? Unveiling the Role of Monetary and Fiscal Performance in Internationalization," MPRA Paper 115304, University Library of Munich, Germany.
    20. Raouf Boucekkine & Giorgio Fabbri & Patrick A. Pintus, 2018. "Short-run pain, long-run gain: the conditional welfare gains from international financial integration," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 329-360, March.

    More about this item

    Keywords

    neoliberalism; socialization; finance; labor; Mexico; crisis;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:46:y:2014:i:3:p:308-330. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.urpe.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.