Growth and Development in the Global Political Economy Recent institutional changes have seen the increasing dominance of globalization and neoliberalism in the world economy. As markets have been deregulated, privatization and unproductive government spending have been promoted. Yet the greater volatility of capitals, the emergence of many financial crises, a decline in trust, and environmental problems have cast doubt on the effectiveness of neoliberal globalization. This book studies the impact of neoliberal globalization on growth and development in the world economy. It scrutinizes whether new social structures of accumulation or modes of regulation have emerged to promote long-term socioeconomic performance in the global economy during the early years of the twenty-first century. Special reference is given to the specific performance of neoliberal governance; transnational corporations; global institutions of money, trade, and production; international relations of war and terrorism; financial institutions; and the family-community environment. It is a comprehensive analysis of the degree to which institutional development has managed to promote socioeconomic performance in the global economy. It also presents a thorough policy program of action for long wave upswing in the world economy. It will be especially useful for those scholars and students concerned with issues of governance, global political economy, institutions, and macroeconomics. Phillip Anthony O’Hara is Professor of Global Political Economy and Governance and Director of the Global Political Economy Research Unit, at Curtin University, Perth, Australia. He won the European Association for Evolutionary Political Economy “2002 Gunnar Myrdal Prize” for Marx, Veblen and Contemporary Institutional Political Economy (Elgar, 2000); is the editor of Global Political Economy and the Wealth of Nations (Routledge, 2004) as well as the Encyclopedia of Political Economy (Routledge, 2001, paper edition). He is the author of over 60 articles in scholarly journals and edited books, such as the Review of International Political Economy, Review of Radical Political Economics, Journal of Economic Issues, Review of Social Economy, and European Journal of the History of Economic Thought. Reviews of Growth and Development in the Global Political Economy “I am delighted to endorse Phil O’Hara’s new volume. Many years ago I examined his Honours dissertation at Murdoch University on Marx’s theories of crisis. It was an outstanding piece of scholarship and I recognised then that a star had been born. His many contributions since show how right I was! Growth and Development in the Global Political Economy is the jewel in his crown. It contains a superb intertwining of historical, political, economic and institutional analysis of modern global capitalism, its successes and failures. It is also a critique of the claims of neoliberal analysis, and the provision of an alternative illuminating analysis; combined with detailed suggestions for the creation of institutions that will go some way towards ensuring that potential sustainable development will be achieved in a manner that helps all the world’s citizens and preserves the physical environment for future generations. O’Hara has written a notable book which ought to be read by all serious economists, social scientists, concerned citizens, politicians and policy makers.” Professor G.C.Harcourt, Cambridge University, UK. “In Growth and Development in the Global Political Economy, Phil O’Hara critically surveys the contemporary performance of the world economy, and comes to some very poignant results. The trends associated with neoliberal globalisation are shown to be complex, contradictory and conflicting. Global deregulation, greater rule of capital, and expansion of market relations have produced asymmetrical results. On the one hand, there has been more mobility of capital, foreign direct investment, and global bank credit; but also financial instability, insufficient demand, global conflict and declining trust and sociality. These contradictory results have, on balance, inhibited global growth and development through a continuation of long wave downswing, which can only be rectified by significant changes in institutions and governance. Phil O’Hara has produced a masterly work that shows how the economic, political and cultural factors interplay in the global political economy.” Professor Howard J.Sherman, University of California, USA. “In this original and provocative work, Phil O’Hara provides a comprehensive critique of neoliberalism on a world scale. He applies the ‘social structures of accumulation’ (regulation school) approach to the explanation of long-term socioeconomic change, constructing a model of the Global System of Power and Accumulation that integrates financial, political, cultural and military dimensions of the new world disorder. O’Hara analyses the hegemonic role of the United States and the associated international economic institutions, and identifies some fundamental contradictions, both economic (effective demand failure, financial crises) and social (growing anomie, collapse of family and community relations). These contradictions, he argues, inhibit global economic development and generate international political tensions, causing terrorism and war. O’Hara concludes by proposing a far-reaching and coherent set of alternatives to neoliberal global governance. Growth and Development in the Global Political Economy is required reading for anyone with a serious interest in political economy or international relations.” Professor John King, La Trobe University, Australia. “Over the last decade Phil O’Hara has emerged as a major contributor to political economy, the holistic analysis of the relation of power and culture to the economic process. In Growth and Development in the Global Political Economy he brings together a broad literature and applies it to the present era of neoliberal globalization. He addresses the central question as to whether or not this USA-hegemonic governance regime is likely to provide a stable trajectory of growth and accumulation. In analysing this complex question O’Hara examines governance in its broadest sense, including culture and identity politics, family structure and gender relationships, financial architecture, international trade, and corporate power. O’Hara concludes that substantial social reform will be necessary to convert the present institutional configuration to a sustainable, progressive path, and offers a stimulating overview of this necessary reform. No one is doing better work than O’Hara in holistic, evolutionary political economy; this book deserves a very wide readership.” Professor James Ronald Stanfield, Colorado State University, USA. “In this book, Philip O’Hara grapples with the big issues of contemporary political economy. He asks where the world system is heading and finds serious trouble ahead. Utilizing a methodological framework that stresses the interplay of institutions and economic outcomes, he offers a critique of the dominant neoliberal model, with its faith in the free market as the centerpiece of society. He makes a convincing case that neoliberalism is not bringing an economic rebirth, as its advocates claim, but rather is serving as an obstacle to economic and social development. Growth and Development in the Global Political Economy contributes to the growing literature that points out that the neoliberal emperor truly has no clothes.” Professor David M.Kotz, University of Massachusetts at Amherst, USA. Routledge Frontiers of Political Economy 1 Equilibrium versus Understanding Towards the rehumanization of economics within social theory Mark Addleson 2 Evolution, Order and Complexity Edited by Elias L.Khalil and Kenneth E.Boulding 3 Interactions in Political Economy Malvern after ten years Edited by Steven Pressman 4 The End of Economics Michael Perelman 5 Probability in Economics Omar F.Hamouda and Robin Rowley 6 Capital Controversy, Post Keynesian Economics and the History of Economics Essays in honour of Geoff Harcourt, volume one Edited by Philip Arestis, Gabriel Palma and Malcolm Sawyer 7 Markets, Unemployment and Economic Policy Essays in honour of Geoff Harcourt, volume two Edited by Philip Arestis, Gabriel Palma and Malcolm Sawyer 8 Social Economy The logic of capitalist development Clark Everling 9 New Keynesian Economics/Post Keynesian Alternatives Edited by Roy J.Rotheim 10 The Representative Agent in Macroeconomics James E.Hartley 11 Borderlands of Economics Essays in honour of Daniel R.Fusfeld Edited by Nahid Aslanbeigui and Young Back Choi 12 Value, Distribution and Capital Essays in honour of Pierangelo Garegnani Edited by Gary Mongiovi and Fabio Petri 13 The Economics of Science Methodology and epistemology as if economics really mattered James R.Wible 14 Competitiveness, Localised Learning and Regional Development Specialisation and prosperity in small open economies Peter Maskell, Heikki Eskelinen, Ingjaldur Hannibalsson, Anders Malmberg and Eirik Vatne 15 Labour Market Theory A constructive reassessment Ben J.Fine 16 Women and European Employment Jill Rubery, Mark Smith, Colette Fagan, Damian Grimshaw 17 Explorations in Economic Methodology From Lakatos to empirical philosophy of science Roger Backhouse 18 Subjectivity in Political Economy Essays on wanting and choosing David P.Levine 19 The Political Economy of Middle East Peace The impact of competing trade agendas Edited by J.W.Wright, Jr 20 The Active Consumer Novelty and surprise in consumer choice Edited by Marina Bianchi 21 Subjectivism and Economic Analysis Essays in memory of Ludwig Lachmann Edited by Roger Koppl and Gary Mongiovi 22 Themes in Post-Keynesian Economics Essays in honour of Geoff Harcourt, volume three Edited by Claudio Sardoni and Peter Kriesler 23 The Dynamics of Technological Knowledge Cristiano Antonelli 24 The Political Economy of Diet, Health and Food Policy Ben J.Fine 25 The End of Finance Capital market inflation, financial derivatives and pension fund capitalism Jan Toporowski 26 Political Economy and the New Capitalism Edited by Jan Toporowski 27 Growth Theory A philosophical perspective Patricia Northover 28 The Political Economy of the Small Firm Edited by Charlie Dannreuther 29 Hahn and Economic Methodology Edited by Thomas Boylan and Paschal F.O’Gorman 30 Gender, Growth and Trade The miracle economies of the postwar years David Kucera 31 Normative Political Economy Subjective freedom, the market and the state David Levine 32 Economist with a Public Purpose Essays in honour of John Kenneth Galbraith Edited by Michael Keaney 33 Involuntary Unemployment The elusive quest for a theory Michel De Vroey 34 The Fundamental Institutions of Capitalism Ernesto Screpanti 35 Transcending Transaction The search for self-generating markets Alan Shipman 36 Power in Business and the State An historical analysis of its concentration Frank Bealey 37 Editing Economics Essays in honour of Mark Perlman Hank Lim, Ungsuh K.Park and Geoff Harcourt 38 Money, Macroeconomics and Keynes Essays in honour of Victoria Chick, volume 1 Philip Arestis, Meghnad Desai and Sheila Dow 39 Methodology, Microeconomics and Keynes Essays in honour of Victoria Chick, volume 2 Philip Arestis, Meghnad Desai and Sheila Dow 40 Market Drive and Governance Reexamining the rules for economic and commercial contest Ralf Boscheck 41 The Value of Marx Political economy for contemporary capitalism Alfredo Saad-Filho 42 Issues in Positive Political Economy S.Mansoob Murshed 43 The Enigma of Globalisation A journey to a new stage of capitalism Robert Went 44 The Market Equilibrium, stability, mythology S.N.Afriat 45 The Political Economy of Rule Evasion and Policy Reform Jim Leitzel 46 Unpaid Work and the Economy Edited by Antonella Picchio 47 Distributional Justice Theory and measurement Hilde Bojer 48 Cognitive Developments in Economics Edited by Salvatore Rizzello 49 Social Foundations of Markets, Money and Credit Costas Lapavitsas 50 Rethinking Capitalist Development Essays on the economics of Josef Steindl Edited by Tracy Mott and Nina Shapiro 51 An Evolutionary Approach to Social Welfare Christian Sartorius 52 Kalecki’s Economics Today Edited by Zdzislaw L.Sadowski and Adam Szeworski 53 Fiscal Policy from Reagan to Blair The Left veers Right Ravi K.Roy and Arthur T.Denzau 54 The Cognitive Mechanics of Economic Development and Institutional Change Bertin Martens 55 Individualism and the Social Order The social element in liberal thought Charles R.McCann, Jr 56 Affirmative Action in the United States and India A comparative perspective Thomas E.Weisskopf 57 Global Political Economy and the Wealth of Nations Performance, institutions, problems and policies Edited by Phillip Anthony O’Hara 58 Structural Economics Thijs ten Raa 59 Macro economic Theory and Economic Policy Essays in honour of Jean-Paul Fitoussi Edited by K.Vela Velupillai 60 The Struggle Over Work The “End of Work” and employment alternatives in post-industrial societies Shaun Wilson 61 The Political Economy of Global Sporting Organisations John Forster and Nigel Pope 62 The Flawed Foundations of General Equilibrium Theory Critical essays on economic theory Frank Ackerman and Alejandro Nodal 63 Uncertainty in Economic Theory Essays in honor of David Schmeidler’s 65th birthday Edited by Itzhak Gilboa 64 The New Institutional Economics of Corruption Edited by Johann Graf Lambsdorff, Markus Taube and Matthias Schramm 65 The Price Index and its Extension A chapter in economic measurement S.N.Afriat 66 Reduction, Rationality & Game Theory in Marxian Economics Bruce Philp 67 Culture and Politics in Economic Development Volker Bornschier 68 Modern Applications of Austrian Thought Edited by Jürgen G.Backhaus 69 Ordinary Choices Individuals, incommensurability, and democracy Robert Urquhart 70 The Labour Theory of Value Peter C.Dooley 71 Capitalism Victor D.Lippit 72 Macroeconomic Foundations of Macroeconomics Alvaro Cencini 73 Marx for the 21st Century Edited by Hiroshi Uchida 74 Growth and Development in the Global Political Economy Social structures of accumulation and modes of regulation Phillip Anthony O’Hara