towards popular capitalism

Could tax reform help us out of the recession? Barry Bracewell-Milnes, a former economic director of the CBI and currently an independent consultant, urges tax reform and abolition as the sort of supply-side stimulus the economy needs.     

Inequality and capitalism

By participation in lotteries, people reject the goals of equality of outcome or of opportunity - fortunately because both are infeasible.     

The recapitalization of capitalism

La crise économique actuelle a conduit à en terminer avec la politique d'après-guerre, fondée sur les principes keynésiens de la croissance dirigée, du plein-emploi et de l'état providence. Dans de nombreux pays capitalistes, des efforts sont faits maintenant pour 'recapitaliser le capitalisme'. Ceci entraîne des réductions dans le secteur public et une expansion du secteur privé, mettant principalement l'accent sur l'industrie et sur l'exportation. Mais la crise n'est pas seulement d'ordre économique; elle a des répercussions sur tout l'ordre social, et cet article examine les idées de quelques-uns des plus importants défenseurs politiques et universitaires des idées et des attitudes qui servent à légitimer la nouvelle politique. La conclusion est que la force de la stratégie de recapitalisation dépend, en partie, de la qualité de la gauche, qui se doit d'élaborer immédiatement un programme à court terme, sur lequel elle puisse fonder une opposition efficace.     

Network capitalism: the role of human resources in penetrating the China market

In the West, there is growing awareness that connections can be pivotal to a firm's success in gaining competitive advantage in the global arena. This paper compares Western networking with guanxi (connections) prevalent in Confucian societies. Guanxi are built between and among people. Hence the effective deployment of human resources is critical to the success of building such relationships. Data from forty West European multinationals with operations in China were collected. Where relevant, these were compared with the findings of Hong Kong firms in China. Specifically, the paper examined (1) how large European multinationals perceive the characteristics of guanxi ; (2) the importance of guanxi for market entry and long-term success in China; and (3) how guanxi is built and maintained by European companies in China. While the European companies have been able to establish a presence in China, their moderate level of satisfaction with performance there may be attributable to their inability to build very strong and appropriate guanxi with the relevant authorities. This may stem from their use of expatriates to staff senior management positions and insistence upon sole or majority-equity ownership to allow for maximum control. The implications for international human resource management are discussed.     

The financial sector and the future of capitalism

Financial sector innovation and development since the 1970s contributed to global prosperity, but increased the probability of bank failures. The post-2007 financial crisis was one of many crises with idiosyncratic catalysts but common underlying causes. Public policies, such as deposit insurance, with moral hazard implications increased the likelihood of crises, and cheap money exacerbated the situation by encouraging highly leveraged investments. The policy challenge is to address moral hazard without repressing the financial sector. This is not the end of capitalism, but a reminder of the difficulty in policing the financial sector which is at the heart of capitalist economies.     

The dynamic efficiency of capitalism

Variants of Lancaster's original model on the inefficiency of capitalism have continued to interest scholars. In a slight extension of the original finite-horizon model of Lancaster the possibility of more or less completely efficient outcomes is shown in the present paper. Such results are effected by the introduction of standard trigger strategies and soft trigger strategies defined in the present paper.     

The urban process under capitalism: a framework for analysis

L'objectif de cet article est d'esquisser une problématique générale pour l'interprétation du processus urbain capitaliste. A cette fin, deux thèmes apparentés, l'accumulation et la lutte de classes, sont examinés. Un examen de la théorie marxiste de l'accumulation mène à une compréhension théorique du rôle de l'investissement dans le cadre bàti en relation avec l'ensemble de la structure et des contradictions du processus d'accumulation. Plus précisément, l'investissement dans le cadre bâti est perçu en relation avec les différentes formes de crise qui peuvent surgir sous le capitalisme. Une séléction d'exemples empiriques est présentée et discutée afin d'illustrer comment le support théorique est relié à l'évidence historique. Ceçi permet de mettre à l'intérieur d'une perspective théorique cohérente les ‘long cycles’ d'investissement observés, ainsi que les changements geógraphique des fluxes d'investissements. Ensuite la manière dont le cadre bâti lui-même exprime et contribu aux crises capitalistes est examinée. Il est demontré que sous le capitalisme il existe une lutte perpetuelle selon laquelle le capital essaye de construire un environnement propre à son image seulement pour le détruire avec la réapparition d'une nouvelle crise. L'analyse considère alors comment la lutte de classes—c'est à dire la réaction organisée de la force du travail aux déprédations du capital—influence la direction et la forme de l'investissement dans le cadre bâti. D'un intérêt particulier est la manière dont la lutte de classes au lieu du travail se trouve déplacée à travers le processus urbain vers des luttes centrées autour de la reproduction de la force du travail au foyer. Quelques exemples de ces luttes sont présentés afin d'illustrer comment elles se rattachent à la lutte fondamentale au point de production en même temps qu'elles influencent la direction et la forme de l'investissement dans le cadre bâti.     

Social and strategic innovation: extending the varieties of capitalism to asian countries

International Entrepreneurship and Management Journal - This article empirically analyzes how institutional context affects the nature of firms´ innovation—social and/or...     

A stochastic differential game of capitalism

We develop a stochastic differential game of capitalism to analyze the role of uncertainty. In the deterministic game, the firm’s rent is completely taxed away and the firm stops investing completely. In the stochastic game, the government does not tax the firm’s rent completely. The firm posts a positive rate of investment if the firm’s rent exceeds the labor’s income. Although the cooperative solution is indeterminate, cooperation is always Pareto optimal compared to the non-cooperative Markovian Nash equilibrium. For individual rationality, we apply a payoff distribution procedure based on Yeung and Petrosyan (2006) to derive a subgame-consistent solution.     

Desperately seeking capitalism: Solidarity and Polish industrial relations in the 1990s

This article examines the contradictory and complex role played by Solidarity in the transformation of Poland since 1989. The organisational and ideological development of Solidarity is traced from 1980 through to 1994 in an attempt to explain an approach best described as ‘desperately seeking Polish capitalism’.     

Re-connecting capitalism: prospects for the regulatory reform of the employee interest in UK takeovers

This article draws upon the disconnected capitalism thesis (DCT) to analyse UK takeovers and their implications for workers. The DCT refers to the disconnect between the source of value creation (the labour process) and the wider political economy. Specifically, we highlight a particular aspect of this disconnect whereby those who create value and have a long-term stake in firms (employees and managers at the firm level) are disconnected from decisions regarding takeovers, as a consequence of wider economic and political trends (processes of financialisation/marketisation and associated state support for a neoliberal takeover regime). We outline these trends and argue the case for a re-connect, which will require empowering employees and managers to have more influence in takeover decisions and, in turn, disempowering shareholders and financial intermediaries. The article thus highlights the regulatory space for takeovers and considers feasible policy options, a set of interlinked regulatory changes, which will in particular require a more assertive state.