Category Archives: Financialization

Upcoming Talk: Open University, London

Philip Mader and I will be presenting (for the first time!) the introductory chapter for the Routledge International Handbook of Financialization, which we wrote together with Daniel Mertens, on May 23 in London. Our talk is part of a one-day workshop at the Open University, organized by Pauline Gleadle and Stuart Parris, on the conceptualization and operationalization of financialization.

More information, including the possibility to register for the workshop, can be found here.

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Filed under Events, Financialization, Handbook, Publications

Out Soon: Business Interests and the Modern Welfare State

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I’m very happy to see the new edited volume by Dennie Oude Nijhuis, Business Interests and the Development of the Modern Welfare State, is coming out in July 2019. The volume offers “a synthesis on the question of business attitudes towards and its influence over the development of the modern welfare state.” Chapters consist of both historical country case studies and comparative chapters with country focus on Germany, Finland, the Netherlands, Switzerland, the United Kingdom and the United States. Policy aras covered include active labor market policies, educational policies, employment protection legislation, healthcare, private pension programs, and work‐family policies.

My own chapter in this volume explores how the financialization of the political economy during the last quarter of the 20th century has influenced business preferences for occupational pensions. I argue that capital funding has important ramifications for business preferences towards occupational pensions. With capital funding, the extent to which these plans can protect against the social risks associated with old age has become partially dependent on the financial risks stemming from capital funding. Financialization thus turns an influential argument in the business interests scholarship on its head, namely that, depending on size and industry, employers might be willing to incur higher risks to gain more control over social welfare provisions: as financialization reduces the possibilities for control over occupational pension provisions, employers will be more likely to adopt political preferences aimed at risk reduction. My argument builds on a comparative case study of business groups in the United States and the Netherlands.

 

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Filed under Financialization, Pension Funds, Publications, United States, Welfare State

Upcoming Talk: KU Leuven

Friction spaces poster

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April 1, 2019 · 9:06 am

Out Now: SER Forum on Political Economy

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I am very pleased to announce that the discussion forum on “new approaches in political economy” is now available here on the Socio-Economic Review website. The forum brings together essays by Bruno Amable, Aidan Regan, Sabina Avdagic, Lucio Baccaro on Jonas Pontusson, and myself on new developments within the field of (comparative) political economy. The forum is a continuation of our discussion started at the 2018 SASE Meeting in Kyoto. Or, per the abstract:

The discussion on ‘New Approaches to Political Economy (PE)’ gives us a state-of-the-art overview of the main theoretical and conceptual developments within the concept of political economy. Thereby, it invites us to broaden our knowledge regarding manifold novel approaches, which make use of more complex methods to study the less stable, less predictable, but faster changing realities of smaller or bigger geographical regions. In this discussion forum, Amable takes a closer look on the nature of ‘conflict’ as well as the relationship between conflict and institutional change or stability. After stressing the relevance of comparative capitalism in general, Regan also zooms in on the political conflicts in comparative political economy from three different perspectives (electoral politics, organized interest groups and business-state elites), where he finds new avenues, tensions and research agendas are opening up. From a different perspective, Avdagic reviews the broad developments in the field of political economy with respect to the supply and demand side of redistributive policy. Thereafter, Baccaro and Pontusson sketch an alternative ‘growth model perspective’, which puts demand and distribution at the center of the analysis. Finally, Van der Zwan analyses the usefulness of financialization studies for the study of (comparative) political economy.”

 

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Harvard Panel on YouTube

Our panel on financialization and inequality at the Harvard Law School conference on money as a democratic medium can now be viewed on YouTube or below. Hear Gerald Epstein, Rana Foroohar, Rebecca Spang and yours truly speak on this important topic, under the inspired chairpersonship of Sandy Brian Hager.

For a recap of the conference and all other video presentations, follow this link.

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CFP: ECPR General Conference

3621486017_55be943c58_bPhoto credit: Klearchos Kapoutsis

Together with Daniel Mertens, I am co-organizing one of the panels at the 2019 ECPR General Conference in Section 11: Changing Political Economies and Welfare States. Our panel aims to analyze comparatively how the welfare state and the financial system are mutually intertwined, adopting a broader conception of finance which includes not just financial actors and their interest organizations, but also financial ideas and narratives.

From the CFP: “Scholars of the welfare state have shown how traditional welfare arrangements are challenged by new kinds of risks that have emerged in the late twentieth century. Among these risks is the process of financialization. It refers to the growing influence of financial markets and financial actors over the productive economy and over society at large, affecting the welfare state in several ways. For instance, welfare provisions may rely on financial market investment for funding while financial arrangements have also been touted as alternative sources of welfare (e.g. through asset-based welfare) and governments have developed new financial activities in order to maintain current welfare provisions. Furthermore, several indirect effects of financialization affect the sustainability of mature welfare states, such as growing indebtedness and social-economic inequalities.

Against this background, the panel has two aims: First, it hopes to reintegrate scholarship on welfare and finance to come to a better understanding of how the welfare state and the financial system are mutually intertwined, both historically and comparatively. Furthermore, we hope to approach the panel theme using a broader conception of finance: to include not just financial actors and their interest organizations, but also financial ideas and narratives, norms and practices that interact at different scales of the modern polity.”

Check out the CFP here!

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Filed under ECPR, Events, Financialization, Welfare State

Upcoming Talk: NIAS Seminar

This Thursday, I will be presenting new research in the seminar series of the Netherlands Institute of Advanced Studies.

My paper presents a historical case study of the investment politics of Dutch pension fund for public employees, ABP (Algemeen Burgerlijk Pensioenfonds). Combining both quantitative and qualitative analysis, the research maps the financial flows between ABP and the broader political economy before and after WW2, while at the same time shedding light on the political considerations that informed the fund’s investment policies. I show how over time ABP’s investment politics became increasingly caught between the political interests of the state on the one hand and the dictates of dominant financial theories on the other hand.

The history of the ABP is indicative of the centrality of pension funds to the Dutch political economy. Contrary to traditional bank-based or stock-market based systems, the presence of these large funds have allowed the Netherlands to combine a generous welfare state with high financial development. Still, as the case study shows, the ongoing financialization of the welfare state has coincided with a depoliticization of pension investment. The result is a loss of public control over the flows of capital that emanate from the Dutch pension funds on the one hand and growing instability within the private pension system on the other hand.

This is unpublished work. Please e-mail, if interested in the paper.

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Source: H.W. Groeneveld, “De kosten onzer sociale verzekering,” De Werkgever, February 1925, p.37.

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Filed under Events, Financialization, Instituut GAK, Nederland Pensioenland, NIAS, Pension Funds