Review of Radical Political Economics

Published by SAGE Publications
Online ISSN: 0486-6134
Publications
Article
This paper is a case study of the changing labor process at Charles Circle, an abortion clinic in Boston. The material is based on interviews with two women who were active in the abortion movement and worked at the clinic dur ing its first four years of operation.
 
Article
Winona La Duke, the author of "Native America, the Economics of Radioactive Colonization, " is an Anishinaabe Indian currently living on the White Earth Reservation in Minnesota. Using as examples uranium development in the Navajo Nation and in the Laguna Pueblo of New Mexico. She shows how Native Americans have been forced into dependence on the mining companies. Rather than viable economic development of the reservations, the fruits of uranium mining have been lung cancer and radioactive contamination.
 
Article
This paper examines the relationship between the health care system and the political environment in contemporary China. By looking at the example of rural health care, one can see the close interaction between the health care system and the political context in which it is embedded.
 
Article
This version (one of three), published in the Review of Radical Political Economics, 1977, pp.81-103, contains an appendix where I first laid out, in print, my "circuit of the reproduction of labor power", a theoretical innovation designed to situate investment in public health into Marx's analysis of the reproduction of capital and to complement his three circuits spelled out in the first section of Volume II of Capital. A more general application of this circuit was presented in chapter 3 of my book Reading Capital Politically published a year later.
 
Article
Current medical definitions of health and disease are inadequate for an understanding of public health problems. The narrowest attribute causa tion to agents of disease (e.g., germ theory); the widest (e.g., medical ecology) take into account some social factors like behavior and culture. All focus on the individual rather than the collectivity. The evidence reviewed in this article, drawn mainly from England during the industrial revolution and the rise of capi talism, suggests that changes in health status are related to class struggle and to the international division of labor. An historical approach is adopted to expalin how health and disease came to be defined medically and why politics and economics were rejected as irrelevant to medicine. The holistic perspective of Marxism, which permits analysis of the dynamic interaction of public health, social organization, and the mode of production, is offered as the basis for a socialist alternative.
 
The volume value of the net stock of different types of produced assets per employed (index = 100 for the year 2000).
The value ratios (in percent) of the net stocks of produced assets to GDP.
Article
Using Swedish historical national accounts, this paper shows that, up to the 1970s, there has been a secular rise in the national capital/output ratio and a secular fall in the rate of exploitation, which tended to depress the profit rate. In Sweden, the nominal capital/output ratio increased fastest during the transition from primitive to accelerated accumulation in the 19th century. Since the 1970s, these secular trends have been reversed, which is connected to flexible accumulation that slims down the inventory stock to a minimum and destroys old consensus between capital and labor. JEL classification:B51, E11, N13, N14
 
ARIMA models: Parameter Estimates 
Sample Autocorrelations and Partial Autocorrelations of the Rate of Profit 
P-Values for Unit Root Tests Variable Dickey-Fuller Phillips-Perron 
] 
Descriptive Statistics of the Augmented Duménil and Lévy Data 
Article
The law of the tendential fall in the rate of profit has been at the center of theoretical and empirical debates within Marxian political economy since the publication of volume III of Capital. An important limitation of this literature is the relative paucity of modern econometric investigations of the behavior of the rate of profit. The central objective of this paper is to remedy this lacuna. We investigate the properties of the profit rate series utilizing the methods of time series econometrics. The evidence suggests that the rate of profit is non-stationary. We also specify a test of Marx’s law of the tendential fall in the rate of profit with a novel econometric model that explicitly accounts for the counter-tendencies and their time series properties. We find weak evidence of a long-run downward trend in the general profit rate for the U.S. economy for the period 1948-2007. JEL Codes: B51, C22, E11.
 
Article
This study reveals a direct link between profitability and stability. To make the demonstration, we develop and then estimate a short-run dynamic disequilibrium model of a capitalist economy, with money, in which agents react to the observation of disequilibria. The condition for the stability of the general level of activity is expressed as a function of the reactions of economic agents. An increased reaction by quantities to disequilibria between supply and demand, on the part of firms, jeopardizes stability. It is demonstrated empirically that the variations of the profit rate influence this degree of reaction and, therefore, impact on stability. -Authors
 
Decomposition of the profit rate determinants, Brazil, 1953-2003 (compound annual growth rate) 
Article
This paper investigates the profit rate in Brazil between 1953 and 2003. There was a tendency for the profit rate to fall during the period under study determined mainly by the declining productivity of capital. There were three phases in the behavior of the profit rate. In the first phase, between 1953 and 1973, it slowly declined; in the second, from 1973 to late 1980s, it fell sharply; in the third, from late 1989 to 2003, it increased moderately. These phases correspond to the institutional arrangements of the Brazilian economy, respectively, to the import substitution industrialization (ISI) during the golden age of capitalism, to the crisis and rupture of ISI, and to neoliberalism. JEL classification: E25, N16, O30
 
Quarterly sales fluctuation ( = variance) 1980-1991*
Medium-term sales fluctuation ( = variance) 1980-1991* **
Medium-term fluctuation ( = variance*) of employee jobs; both industries; per period
Summary of results
Article
The paper analyzes a dual industry structure and its effects as hypothesized by segmentation theory. A dual industry structure refers to the simultaneous existence of two groups of firms within an industry which differ in terms of bargaining power and product and labor market performance: sales and job fluctuation levels should be higher in the dominated group, and job security lower. Empirical analysis of the clothing industry in the Netherlands for the period 1980-1992 confirms the hypotheses for the largest part. JEL classifications: J42, L14, L11
 
Article
Integrating insights from strategic bargaining analysis with the cooperative conflicts approach, this paper explores the implications of conjugal violence against women and women’s resistance to violence for bargaining processes and outcomes. It is argued that analyses of conjugal violence must situate strategic behavior in social context, thus problematizing theoretical and empirical analyses that point to a direct negative correlation between women’s economic resources and violence. The paper concludes with a brief discussion of policy implications. JEL classifications: D13, D19
 
Article
Frederic Lee’s laudable attempt to expand heterodox economists’ academic rights is vitiated by his narrow conception of pluralism as tolerance. The author proposes an alternative view of academic pluralism that is more consistent with the epistemological assumptions and ethical requirements of academic freedom, and more conducive to the flourishing of heterodox economics—and economics at large—as a scholarly community. JEL classification: A20, B40, B50
 
Article
An asymmetrical choice approach is followed to analyse the link between corporate control, social choice and capital accummulation ; based on the explicit recognition of the existence of different classes in modern capitalist economies. It is argued that all existing attempts to explore the issue are insufficient in that they are based on a classless or classes do not matter-framework. We suggest that corporate decisions with regard to retentions do constrain the possibilities of choice over the consumption-saving patterns, of all - but a controlling subset of the owners - classes of the economy. Under plausible assumptions this acts beneficially on potential capital accumulation : a phenomenon due to, and being a specific characteristic of, todays large joint stock companies.
 
Article
Capitalism has undergone drastic transformations over the last thirty years. Among critics, theses about the financial nature of the process of accumulation have been prominent. One of these is the theory by French economist François Chesnais (1998, 2005) whose main proposition is that, as of the late 1970s, capitalism would be reproducing itself by means of an accumulation regime in which financial valorization prevails. In this article, I attempt to show that the current crisis is a crisis of this regime of accumulation, and to reflect upon the situation and prospects for Brazil in this context. JEL classification: B51; G01; E01
 
Article
This paper is a case study of a particularly important and well known experiment in participatory economic democracy, participatory budgeting (PB) in Porto Alegre under the Workers’ Party. Its intention is to draw both positive and negative lessons from this experience. There are three fundamental parts to the paper. The first part sets the frame for understanding this experiment by reviewing several relevant considerations of participatory democracy in general, and then describing the institutional structure of Porto Alegre’s PB. The second part is an empirical investigation for this case of three central issues in participatory economic democracy: participation, the nature of choices, and the resulting redistribution. A third part considers a number of limitations of the PB process as it occurred in Porto Alegre from the perspective of economic democracy.JEL classification: H72, R50
 
Article
Complementing previous, often ignored criticism of the AD-AS model - to the effect that this widely-used construction is inherently inconsistent - this note argues that a (rare) defence of the model by Peter Kennedy fails to convince and that the model does indeed, as alleged, give rise to confusing and misleading expositions of the working of the macroeconomy. JEL classification: A22, B22, E10.
 
Article
The South African Constitution guarantees the right to water, which is reinforced by a national Free Basic Water policy. However, water delivery is a local government function, which, in the absence of a national regulator, is largely operated as a commercial service. Using the lens of the Mazibuko water rights case—the first South African test case on the right to water—this article examines the conflict between a progressive rights-based model, which views water as a social good, and the commercialized model, which treats water as a source of revenue instead of a public service. The article finds in the legal iterations of the Mazibuko applicants the potential for a new, more equitable approach to water services. This is despite the set-back occasioned by the ultimate legal defeat in the Constitutional Court in late-2009. JEL codes: I31, H41, K32, Q25
 
Article
The historical patterns of access to water and other areas of public service delivery in South Africa have been markedly skewed. Despite the reversal of the regime and the fact that South Africa is a middle-income country, there are a significant number of people who are water-poor and poor in governance and institutional capacity to manage water. The recurring themes in integrated water resource management, reticulation pipes, weirs and pumps, stream flow regulations, and ecological requirements are dominant in water sector discourse and are alienating for those who do not master the language. There are constraints determined by racial, economic, or social structures that retain and reproduce dominant power relations. The paper considers the relationship between knowledge, agency, and shame and posits that unequal relations of power and knowledge restrict agency, jeopardize the building of trust, and may perpetuate feelings of shame. The role of the state in opening up water policy networks and redressing issues of knowledge, power, and agency is critical. JEL codes: Q25, Q34, Q28, H75
 
Article
In a seminal paper on Marxian business cycle theory, Goodwin (1967) presented a model which assumed that a higher wage share leads to lower investment and thus a general economic slowdown. In contrast Kalecki (1971) was arguing that a higher wage share would have an expansionary effect because the consumption propensity out of wage income is higher than that out of profit income. Based on a general model that allows for wage-led as well as profit-led demand regimes, this paper estimates the effects of a change in the wage share on aggregate private domestic demand with quarterly data for 12 OECD countries. JEL classification: E11, E12, E20, E22, E25
 
Article
While acknowledging that the AD-AS model is sometimes applied carelessly, this note defends this analytical framework against charges that it is internally inconsistent, empirically unrealistic, and unable to clarify major controversies in macroeconomic theory and policy. JEL classification: A22, B22, E10
 
Article
This paper argues that the standard AD-AS framework as presented in intermediate macroeconomic textbooks is (1) internally logically inconsistent and (2) empirically unrealistic. The logical inconsistency is because the AD and AS curves represent two mutually exclusive theories of the relation between output and the price level in the same economy. The empirical unreality is that it assumes that, when there is excess supply, prices will fall, and furthermore, falling prices will return the economy to full employment. Neither of these assumptions is valid for our economy today. The paper focuses specifically on Mankiw’s presentation of AD-AS in his best-selling textbook. JEL classification: A22, E10
 
Article
Thanks to the anti-HIV/AIDS measures of international and non-governmental organizations, Cambodia has been considered a successful case in preventing the transmission of the virus. Declaration of such a victory for the Cambodian case is premature, however, given that HIV prevalence continues to rise among women and, according to Cambodian health officials, another wave of epidemic could occur soon. This study discusses how the implementation of neoliberal economic policies without counterbalancing social policy measures undermines the sustainability and effectiveness of such short-term measures by creating a risky environment for the epidemic. Trade liberalization policies have exacerbated poverty, mobility, and gender inequality, making women more susceptible and vulnerable to HIV/AIDS. JEL classification: I18, F13, O19
 
Article
This article analyzes the nature of micro-entrepreneurship in Argentina and relates it to the empirical evidence available for other Latin American countries. It focuses on whether the sector resembles the neoclassical view, characterized by the risk-taking nature of the entrepreneurial activity, or if it is a precarious form of employment of last resort. The evidence confronts the neoclassical view of the micro-entrepreneur sector. It is argued that self-employment should be interpreted as functional to the capital accumulation process and not as a residual activity. JEL classification: J23, L25
 
Article
The surge in academic work on globalization has made several of the topics dear to authors of the dependency school relevant once again. Therefore a reconsideration of dependency theory seems to be appropriate. There are at least two approaches to dependency. This paper analyzes critically their similarities, differences and limitations, in particular regarding the role of technology, and international finance in the explanation of center and periphery interactions. The evolutions of the ideas on dependency in Latin America are evaluated. The reduced relevance of strict definitions of the technological division of labor, and the theoretical problems caused by the effective industrialization of several countries in the periphery, the debt crisis, and the failure of the neoliberal agenda are also discussed. In the era of globalization and great transformations in the international economy the 'new' dependency seems to be financial in nature.
 
Article
For several decades workers’ participation in management was a persistent demand of the left. In the neoliberal era it became, in a twisted way, a reality for some workers. Team organization of production, reduction of supervisory staffing, and a constant drive for productivity improvement became the norm, requiring broader managerial involvement by workers in their activities. Workers’ control of production remains on the radical agenda, but with broader implications. Workers’ control of production implies dramatic changes in the relationship between capital and labor, and with them development of alternative forms of production and distribution. JEL classification: J54, B51, L23
 
Article
The idea that capital flows accelerate and decelerate in response to differential rates of return on real investment is common to virtually all of economic theory. This paper examines the nature of this process, especially the relationship between returns in the stock market and returns on real investment. Shaikh (1998) makes the case that the rate of return on new physical (real) investment is the “required” rate of return for the stock market and that competitive forces produce a rough equalization between these two rates of return, what he terms “turbulent arbitrage.” In contrast to neoclassical theories of perfect competition, with its notions of perfect information and convergence to a uniform rate of return, the notion of “turbulent arbitrage” is a dynamic process that requires a tendency toward convergence as well as the constant differentiation of profit rates (Botwinick 1993). Data on rates of return at the country, industry, and firm level for Japan, Germany, the United Kingdom, and the United States are analyzed and correlated with Shaikh’s “incremental rate of return on real investment” which, it is argued, is the target of the equalization process. Statistical and econometric tests based on time series methods and pooling techniques support the hypothesis that the rate of return on equity prices is linked to the incremental return on real investment. In addition, this association is examined for two industries—steel and retail trade—across these same four countries. Global and domestic equity markets are found to be significantly correlated with the incremental returns for the steel industry but not for the retail trade sector. JEL classification: G15, F02, C33
 
Article
For a decade or two after World War II it seemed possible that the USA, much of Europe, and many other societies around the world had learned enough from two world wars and violent political shifts to steer clear from the suppressive politics and suicidal economies they had just barely survived; that the time had come to work for functioning democracies. To one degree or another that was acted upon in all of the rich and some of the newly independent countries; but only for a while. From the 1970s on social intelligence and decency began an always more dangerous lurch back toward raw capitalism and autocracy; the USA in the lead. Year by year, the rich and powerful recovered and increased their political strength at home. That done at home, they (the USA and other long-standing imperialists) set about to have the newly-independent colonies open their doors for corruption; and economic exploitation among them has become even deeper than in the "good old days." Thus, although "institutions" have changed on the surface in both the rich "big six" and in most of Latin America and Africa and much of Asia, not only has the exploitation of the many by the few deepened, but the efforts for genuine freedom and independence have been derailed. Among those processes many by-products has been the rise and deepening of always spreading and deepening terrorism. Although it is unlikely that its ways and means will produce the victory sought, it is quite likely that it will contribute to the next — and last world war. First I turn to the rising dangers among the powerful nations.
 
Share of Transactions Conducted at Market Prices (percent of transaction volume) 
Breakdown of Industrial Value Added by Controlling Shareholder, Electronic and Telecom Equipment 1998 2003 
Urban Employment by Type, in millions
Share of Parts and Components in Total Manufacturing Trade, in percent 
Article
The consensus among economists is that China’s post-1978 market reform policies have produced one of the world’s greatest economic success stories. Some progressives believe that China is now capable of serving as an anchor for a new (non-U.S. dominated) global economy. A few claim that the reform experience demonstrates the workability (and desirability) of market socialism. This article is critical of these views. Its four main conclusions are as follows: first, the reforms have led to the restoration of capitalism, not a new form of market socialism. Second, the gains attributed to the reforms have been seriously overstated. Early successes were largely due to the economic foundation established during the pre-reform Mao era. Moreover, the reform process has begun to undermine this foundation, increasing the country’s dependence on foreign investment, technology, and markets. Third, the reforms have produced an increasingly exploitative growth process, one that generates considerable wealth for a minority at unacceptably high cost for the majority. Finally, the reforms also produced a growth process whose logic led it to become enmeshed in, and dependent upon, a broader process of transnational restructuring, one controlled by transnational capital. As a result, China is not only incapable of serving as an anchor for an alternative global economy, its accumulation dynamics actually contribute to the strengthening of existing structures of power and the global imbalances and tensions they generate. JEL classification:O53, P30, F23
 
Article
This article explores a radical pedagogical method for democratizing the classroom that generates rich, engaged, student-led discussions. The approach is grounded in the notion that democratic participation in the classroom is a worthy goal of radical pedagogy, that students must be adequately prepared in order to take on greater responsibility in the classroom, and that greater learning occurs when students take a more active role in the learning process. Careful sequencing of discussions and assignments is used to turn over responsibility for the course to students gradually, without sacrificing the depth and sophistication that instructors want to achieve in the classroom. The result is a classroom in which all students participate and in which thoughtful, informed discussion and debate is the primary mode of engagement. JEL classification: A22, B5
 
Article
This paper applies the feminist concept of epistemological communities to the project of promoting pluralism in the economics discipline. It argues that the review process should require that reviewers are part of the same epistemological community. It argues that a political conception of pluralism based on tolerance is more appropriate than methodological pluralism. JEL classification: A11, B40, B50
 
Article
The reform of water policies in Brazil has involved a combination of regulatory norms and economic-incentive instruments. Nonetheless, contrary to its formal objectives, the process has largely failed to prevent widespread environmental impacts and growing spatial and sectoral conflicts. The main reason for such failures is the perverse influence of market rationality, which is particularly evident in the reorganization of the public sector, the quantification of the monetary value of water, and the payment for environmental services. JEL codes: Q25, Q28, Q, 56
 
Article
The aim of the paper is to develop a new approach to inflation based on Manes circuit of capital and the structural price equation which is hown to be simultaneously determined with the circuit equation. The feedback effect of any disequilibrium in the circuit has some important consequences for the price equation. The reduced form of the model shows in particular bow the ecchange rate and the interest rate can influence the general price level in addition to other determinants of the price equation, namely a productivityvariable and an input pricevariable. This constitutes a major improvement over other approaches to inflation in which the exchange rate fluctuation is neglected, the hypothesis of a closed economy being assumed, and the definition of money is reduced to a umieraire.
 
Article
This is a theoretical article exploring the relationship between financial fragility, derivative trading, and financial crisis. It synthesizes the work of Hyman Minsky (1977, 1985), Jan Toporowski (2001), and Dick Bryan and Michael Rafferty (2006). The decade immediately after 1971 is presented as a key period with key events that shaped a Wall Street revolution that now drives world capitalism. Balance sheet computations of expected profitability emerge as the main driver of a contemporary capitalism that is inherently more competitive than before. Debt, credit, and liquidity, therefore, play crucial parts in a world system where banks and corporations have been joined by new rentier institutions in riskier speculative business activities that now characterize the system. The conclusions are largely Keynesian “. . . when the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done.” JEL classifications: G12, P1
 
Article
In his recent work, Robin Hahnel defends a monolithic metric of economic desert: to each according to effort or sacrifice. I criticize from an egalitarian standpoint this meritocratic distributive principle on theoretical, practical, and normative grounds. I also question his argument that in market socialism the allocation of labor cannot accommodate an egalitarian distribution of labor income; his not unfamiliar argument rests on a fatal theoretical error that conflates the allocative and distributive functions of market prices. I treat Hahnel’s work in the context of larger issues about competing concepts of justice and the distributive institutions that might suit them. JEL classification: A13, P1, P2
 
Article
The centrality of social labor to Marxist epistemology and the need to understand relations between capitalist production, strictly defined, and incompletely marketized forms of work require a relatively broad concept of value. Not simply a theory of price, the utility of the concept of value lies precisely in its ability to mediate between understanding the abstract truths of labor’s centrality to social life and the complex concreteness of the real world economy. The logical necessity and practical utility of the proposed interpretation is illustrated in relation to state and domestic labor. JEL classification: B51, B54, J01
 
Article
This paper addresses the impacts of global “social distancing” on employers and workers and examines community-based worker center strategies to mitigate those impacts. Through a case study of El Centro Humanitario, Denver’s human rights center for immigrant day laborers, the paper addresses how community organizations can respond to social distancing by “organizing the unorganized,” and crafting strategies such as worker-owned cooperatives to promote workers’ rights while reconnecting workers to their work and to each other. JEL classification: L31, L33, P32
 
Article
This paper assesses the ideological arguments that sustain the belief that the private sector is more efficient than the public, which persist despite ambiguous empirical evidence. It argues that the privatization agenda rests on normative assumptions about “economic efficiency” that fail to adequately address the social goals of water and sanitation provision. The debate on “efficiency” should therefore be re-centered to consider “social efficiency” and the negative effect that privatization has on citizenship rights. JEL codes: A13, N70, Q25
 
Article
There is a pervasive presumption in the literature on political economy that substantial use of competitive markets is appropriate and necessary for organizing economic activity. Markets, however, are undemocratic, inefficient, and incentivize anti-social behavior. These short-comings are often minimized or accepted as necessary evils because of the belief that there is no alternative to market structures. This belief is mistaken. Sophisticated alternative models of economic organization, such as participatory economics, have been proposed which are substantially more consistent with important social values. We contend that in light of these alternatives, the presumption in favor of markets should be reversed and market proponents should carry the burden of proof of demonstrating why, given their numerous shortcomings, markets should continue to occupy a privileged position as the default mode of economic organization. JEL classification: A13, L10, P16
 
Average Annual Growth Rate of GDP and its Components over Four Periods 
provides the 
Compound Average Growth Rates of Real Urban Household Income, Rural Household Income, and GDP over Four Periods 
Article
This paper analyzes the growing role played by exports and investment in China’s rapid economic growth since 1978. It examines the reasons for the shift over time in China’s growth model, which occurred in stages, and it questions the sustainability of the recent dependence on exports and investment. It proposes structural changes in China’s growth model and considers the obstacles to such changes. JEL classification:O53, F43, O11
 
Article
This paper argues that China’s current model of development led by exports and investment is not sustainable for economic, social, and environmental reasons. The accumulation of economic, social, and environmental imbalances could potentially lead to a major crisis for China and the global economy. The paper proposes a progressive economic program that could help China move towards a more equitable and ecologically sustainable model of development. JEL classification: E60, O53, P30
 
Article
China’s sustained rapid economic growth in the post-1978 reform era, which is also the era of capitalist globalization, is of worldwide importance. This growth experience has been based mainly on China’s internal dynamics. In the first half of the era, economic growth was driven by improvement in both allocative efficiency and productive efficiency. From the early 1990s until the present time, however, economic growth has been increasingly based on dynamic increasing returns associated with a growth path that is characterized by capital deepening. In both periods, the growth paths and their associated institutional frameworks appear to contradict principles of the free market economy: the mainstream doctrines of globalization. In the form of an analytical overview, this paper seeks to explain and interpret the dynamics and developmental implications of China’s economic transformation. The analytics draws on a range of relevant economic theories including Marxian theory of capital accumulation, post-Keynesian theory of demand determination, and Schumpeterian theory of innovation. It is posited that these alternative theoretical perspectives offer better insights than mainstream neoclassical economics in explaining and interpreting China’s economic transformation. JEL classificationO14, O53, P36
 
Article
This article investigates citations metrics as an institutional phenomenon from two perspectives: first it tries to articulate the role of citation metrics within a Gramscian framework; second it compares citation patterns from orthodox and heterodox economic journals to gain insights on the current economic discourse. Complementary to this general question the role of the Review of Radical Political Economics within citation metrics will be discussed. JEL classification: A14, B50, B51
 
Article
This paper examines the effect of class conflict on industrial location both theoretically and empirically. It demonstrates that there is a sound theoretical basis and empirical support for the conclusion that U.S. industries have chosen to abandon agglomeration and scale economies in order to secure a distribution of income that favors capital at the expense of labor. The decline of the U.S. manufacturing belt is examined with reference to union density, bargaining power, and the effects that large-scale production plants have on these factors. The meat packing industry in the postwar United States serves as a case study to establish the specific ways that class conflict has shaped the scale profile and geographic distribution of production plants. The paper builds upon the class conflict approach to urban and regional economics pioneered by Matthew Edel and David Gordon and aims to demonstrate its explanatory power. JEL classification: R30, J51, B51.
 
Article
The purpose of this paper is to bring class compromise back into the study of South Korean political economy and present it as a possible alternative to the overwhelmingly one-sided neoliberal trajectory in South Korea. The process and conditions under which positive class compromise is acquired are identified in terms of the Polanyi-Gramsci nexus. This perspective suggests that the restoration of state-led developmentalism would be unfeasible under a democratic regime, while the implementation of a purely neoliberal blueprint may lead to unproductive class conflict. Employing this theoretical framework, I examine possibilities for positive class compromise in the context of the simultaneous transitions—democratization and neoliberalization—in South Korea. JEL classification: B5, H7, O53, P5
 
Article
The Kyoto Protocol entered into force on February 16, 2005. Emissions reductions targets established by the protocol will be met by domestic policies and by three international flexible mechanisms: clean development, joint implementation, and emissions trading. Following a value-theoretic and class-based approach, the purpose of this paper is to analyze these flexible mechanisms. In particular, the paper investigates the nature and adoption of flexible mechanisms, and their class and environmental links and implications. Carbon-intensive capitalist firms and developed economies are found to be exerting great influence on the shaping and implementation of flexible mechanisms. Environmental effectiveness and justice, and equal sustainable development raised and claimed by worker-citizens, social movements, local communities, and developing countries have not been secured. Thus flexible mechanisms do not present a real challenge to current institutions and practices for sustainable climate conditions for the workers-citizen of the world. JEL classification: B5, P1, Q4
 
Tariff options: To commodify (A, B) or decommodify (C)? Source: Author  
Johannesburg Water pricing: existing convex tariff curve (2001), and ideal-type concave curve Source: Johannesburg Water tariffs (2001), and author estimates  
The impact of price on Durban water consumption by different income groups: 1997 (lower price, higher volumes) to 2003 (higher price, lower volumes)
Article
Conflicts in the water sector are now well-known, and also increasingly researched by economists, particularly in relation to major ideological differences over state-run versus privatized municipal systems. A major dividing line is over how to access and sustain the financing required to expand and maintain municipal grids. In the context especially of third world urban processes, a crucial determinant is whether market-based pricing of water can generate health benefits to justify new capital investments. Such benefits have typically required strong public systems that offer adequate water supply (with sufficient proximity to source) at an affordable price. A variety of financial and fiscal pressures emerged since the 1980s, leaving full cost recovery as the core practice required by international aid agencies, multilateral financiers, and multinational corporations. Those firms were attracted by high potential profits which, ultimately, could not be realized (in part because of currency deterioration and profit repatriation problems), and hence systems were not maintained or expanded, and health benefits not realized. As commodification of water spread during the era of globalization, so too did an international civil society network demanding—and often winning— decommodification of water and deglobalization of water-capital, returning service delivery to local public institutions, often on grounds of improved public health. JEL classification:D63, H44, L95, Q25
 
Article
This paper suggests a way to determine the “monetary expression of labor” (the “MELT”) in today’s regime of inconvertible credit money, a way that is consistent with Marx’s general theory of money and is quantitatively the same as Marx’s determination of the MELT in the case of the inconvertible fiat money of his time. In order to explain this method of determination of the MELT in the case of modern inconvertible credit money, the paper first reviews Marx’s determination of the MELT in the case of commodity money and in the case of the inconvertible fiat money of his time. The final section of the paper discusses the similarities and the differences between my interpretation and Saros’s (2007) interpretation of the MELT in the case of inconvertible fiat money. JEL classification: B51, E11
 
Nonfinancial Corporation (NFC) Profits before Tax as a Percentage of Net Worth (with IVA [Inventory Valuation Adjustment] and CCA [Capital Consumption Adjustment]). Source: Flow of Funds Tables F.102, B.102.
Annual Stock Turnover Rate: New York Stock Exchange. Source: New York Stock Exchange 2001 Fact Book and www.nyse.com.
Article
The evolution of financial markets in the neoliberal era has created serious problems for large nonfinancial corporations already harmed by the slow aggregate demand growth and destructive competition of the period. Financial market pressures led to shorter planning horizons, a declining allegiance of stake-holders to long-term corporate goals, and a large increase in the percentage of cash flow paid to financial market agents. The net result is a "neoliberal paradox": financial markets demand that corporations achieve ever higher profits, while product markets make this result impossible to achieve. The neoliberal paradox helps explain the outbreak of financial accounting fraud in the late 1990s.
 
Article
According to the Okishio theorem, profit-maximizing firms will not introduce new techniques which, when adopted by all firms, reduce the rate of profit. This paper presents a simple model which shows that this conclusion need not hold under imperfect competition. The model excludes working-class pressures for increased real wages - the supply of labor is infinitely elastic at a given money wage rate - and it is assumed that firms aim to maximize profits. It is shown that, if the economy starts from an initial position with a low organic composition, then the rate of profit will fall. Asymptotically, the profit rate approaches a long-run equilibrium value, but the model may explain some of the observed decline in profitability during the early stages of industrialization.
 
Top-cited authors
Stephen Marglin
  • Harvard University
James R. Crotty
  • University of Massachusetts Amherst
Duncan K. Foley
  • The New School
Dominique Levy
  • French National Centre for Scientific Research
Fred Moseley
  • Mount Holyoke College