Market Liberalism and Economic Patriotism in the Capitalist World-System (International Political Economy Series)

This volume broadens the scope of 'comparative capitalism' within the Varieties of Capitalism (VoC) tradition. It endorses the employment of multiple perspectives, including critical political economy, institutionalist systems of capitalism, structuralist-dependency scholarship and world-systems theory. The contributors deal with the theory of economic patriotism in a conceptual framework, as well as case studies regarding rent-seeking behaviour, the patronage state in Hungary and Poland, the conflict between national regulation and the European legal framework and the perspective of wage relations in the European institutional framework. The book concludes with the legacy of developmentalism and dirigisme in a core-periphery relation, based on the French state and a range of non-European cases including Iran, Brazil and Egypt. Tamás Gerőcs is Research Fellow in the Institute of World Economics at the Hungarian Academy of Sciences, Hungary. His research field of interest is Eastern European semi-peripheries with a special regard for economic transformation in Hungary. Miklós Szanyi is Professor at the University of Szeged and Director of the Institute of World Economics at the Hungarian Academy of Sciences, Hungary. He has carried out extensive research work in the field of East-Central European transition, the role of multinational companies in the restructuring of CEE economies, spatial concentration processes in the region and the political economy of the transition process. Acknowledgements 6 Contents 7 Contributors 9 Abbreviations 11 List of Figures 14 List of Tables 15 Chapter 1: Introduction 16 References 21 Chapter 2: Economic Patriotism, the Politics of Market-Making, and the Role of the State in Twenty-First-Century Capitalism 23 Economic Patriotism 24 Economic Patriotism and the State in Contemporary Capitalism 29 Conclusion: The Political-Economic Debate of Our Age 33 References 34 Chapter 3: Liberal Versus Organised Capitalism: A Historical-Comparative Perspective 35 Introduction 36 Theories of Intertemporal Comparison of Capitalisms 38 Polányi’s Pendulum and Theories of Organised Capitalism: A Phase Model 43 The Crisis of the Liberal Phase of Capitalism and the Nucleus of a New Organised Phase of Capitalism 47 Conclusion 51 References 53 Chapter 4: Dependent Market Economies and Wage Competition in Central and Eastern Europe 57 Introduction 57 An Overview of the Literature: What Explains Lower Wages in Central and Eastern Europe? 60 Our Approach, Data, and Methods 63 The Role of Economic Structure and Workforce Composition 66 The Role of Sectors and Occupational Levels 68 Conclusions: Wage Differences and Productivity Differentials 73 References 78 Chapter 5: The Place of Rent-Seeking and Corruption in Varieties of Capitalism Models 81 Introduction 81 Profits Versus Rents 83 Changing and New Forms of Rents 85 Institutional Consequences of Rent 90 Class Reproduction Through the Accumulation of Human and Cultural Capital 91 The Role of Rents in Post-Communist Capitalist Societies 93 Consequences of Inequalities 102 Conclusions 103 References 109 Chapter 6: The Emergence of the Patronage State in Central Europe: The Case of FDI-Related Policies in Hungary Since 2010 112 Introduction 112 Economic Patriotism and Changing Power Relations Among the Elites of CEE 114 Elites 115 Networks 118 The Emergence of Economic Patriotism 121 CEE Relevance 124 Empirical Evidence from Hungary 125 Positive and Negative Impacts: And Criticism—Of the FDI-Led Development Model 126 Hostile Actions in Hungary 129 Selective-Advantage Measures: The Strategic-Partnership Program 131 Survey Results 132 Conclusion 133 References 137 Chapter 7: Member State Economic Patriotism and EU Law: Legitimate Regulatory Control Through Proportionality? 140 Introduction 140 Member State Economic Patriotism and the EU Single Market 142 Testing National Policies for Compliance with EU Law 146 Hungarian Economic Patriotism and Its Limits Under EU Law 150 Conclusions 157 References 162 Chapter 8: Economic Patriotism and Liberalism in Present-Day France: Changing Role of the State in French Economy 165 Introduction 165 Waves of Nationalizations 166 Twenty Years of (Re)privatization 169 Asset Management 173 Conclusion 175 References 178 Chapter 9: The Resistance Economy: Iranian Patriotism and Economic Liberalisation 181 Why Iran? 182 Historical Background 183 The Islamic Republic of Iran 184 Industry in Iran 185 Development Plans 186 Economic Reforms 187 Sanctions 188 The Resistance Economy and Iranian Patriotism 189 How to Create a Resistance Economy? 190 Conclusion 191 References 193 Chapter 10: New Developmental Experiments in Two Emerging Economies: Lessons from Brazil and Egypt 195 Introduction 195 The Roots of the State-Led Developmentalist Approach 197 New Developmental Experiments After the Turn of the Millennium 199 The Context of New Developmental Experiments After the Turn of the Millennium 200 Social Contracts in Brazil and Egypt at the Turn of the Millennium 202 The Quality of Policy-Making and Questions of Institutionalisation 203 Economic Policy Orientation: Developmentalist Biases in Public Policies 206 Post-2010 Troubles and Struggles in Brazil and Egypt 209 New Economic-Policy Directions in Brazil (2016–) and Egypt (2014–) 212 Lessons and Conclusions 219 References 222 Chapter 11: Conclusion: The Formation of a New Patrie in the Multipolar World-System 225 References 237 Index 239 This volume broadens the scope of 'comparative capitalism' within the Varieties of Capitalism (VoC) tradition. It endorses the employment of multiple perspectives, including critical political economy, institutionalist systems of capitalism, structuralist-dependency scholarship and world-systems theory. The contributors deal with the theory of economic patriotism in a conceptual framework, as well as case studies regarding rent-seeking behaviour, the patronage state in Hungary and Poland, the conflict between national regulation and the European legal framework and the perspective of wage relations in the European institutional framework. The book concludes with the legacy of developmentalism and dirigisme in a core-periphery relation, based on the French state and a range of non-European cases including Iran, Brazil and Egypt. Tamás Gerőcs is Research Fellow in the Institute of World Economics at the Hungarian Academy of Sciences, Hungary. His research field of interest is Eastern European semi-peripheries with a special regard for economic transformation in Hungary. Miklós Szanyi is Professor at the University of Szeged and Director of the Institute of World Economics at the Hungarian Academy of Sciences, Hungary. He has carried out extensive research work in the field of East-Central European transition, the role of multinational companies in the restructuring of CEE economies, spatial concentration processes in the region and the political economy of the transition process. Front Matter ....Pages i-xvii Introduction (Miklós Szanyi)....Pages 1-7 Economic Patriotism, the Politics of Market-Making, and the Role of the State in Twenty-First-Century Capitalism (Ben Clift)....Pages 9-20 Liberal Versus Organised Capitalism: A Historical-Comparative Perspective (Andreas Nölke, Christian May)....Pages 21-42 Dependent Market Economies and Wage Competition in Central and Eastern Europe (Jan Drahokoupil, Agnieszka Piasna)....Pages 43-66 The Place of Rent-Seeking and Corruption in Varieties of Capitalism Models (Péter Mihályi, Iván Szelényi)....Pages 67-97 The Emergence of the Patronage State in Central Europe: The Case of FDI-Related Policies in Hungary Since 2010 (Miklós Szanyi)....Pages 99-126 Member State Economic Patriotism and EU Law: Legitimate Regulatory Control Through Proportionality? (Márton Varju, Mónika Papp)....Pages 127-151 Economic Patriotism and Liberalism in Present-Day France: Changing Role of the State in French Economy (Miklós Somai)....Pages 153-168 The Resistance Economy: Iranian Patriotism and Economic Liberalisation (Erzsébet N. Rózsa, Tamás Szigetvári)....Pages 169-182 New Developmental Experiments in Two Emerging Economies: Lessons from Brazil and Egypt (Judit Ricz)....Pages 183-212 Conclusion: The Formation of a New Patrie in the Multipolar World-System (Tamás Gerőcs)....Pages 213-226 Back Matter ....Pages 227-233