Book Chapter – Taking Back Control? The Future of Western Democratic Capitalism

In: Chu, Yun-han and Yongnian Zheng, eds., The Decline of the Western-Centric World and the Emerging New Global Order: Contending Views. Routledge 2020, 37-57.

More than a quarter century after the end of the Cold War, the international state system is in turmoil, both within and between states. The fundamental cause of the growing disorder is the rapid progress of capitalist “globalization”, outpacing the capacity of national societies and international organizations to build effective institutions of political-economic governance. Increasing debt, rising inequality and unstable growth, especially but not exclusively in capitalism’s core countries, indicate a general crisis of governability. As states have become embedded in markets, rather than the other way around, they are governed more by politically unaccountable “market forces” than by their citizens and governments. Global markets and corporations, on their part, are governed only weekly if at all by improvised and often non-governmental institutions of so-called “global governance”. New problems – political conflicts over interests, values and identities, as well as technocratic puzzles and dilemmas, in national and international politics – are appearing almost by the day. Systemic disarray gives rise to a widespread sense of uncertainty. What may be in store for the capitalist world is a period of extreme unpredictability in which structures that had been taken for granted are dissolving without new structures taking their place. (…)

Previously published as an article in Efil Journal of Economic Research, Vol. 1 (2018), No. 3, 30-47. To be downloaded here.