[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/osf/osfxxx/pjt7x.html
   My bibliography  Save this paper

Beyond Financialisation: The Need for a Longue Durée Understanding of Finance in Imperialism

Author

Listed:
  • Koddenbrock, Kai
  • Kvangraven, Ingrid Harvold
  • Sylla, Ndongo Samba
Abstract
One of the central premises of the literature on financialisation is that we have been living in a new era of capitalism, characterised by a historical shift in the finance-production nexus. Finance has begun to behave ‘abnormally’ towards production. It has expanded to a disproportionate economic size and, more importantly, has divorced from ‘legitimate’ economic pursuits. In this paper we explore these claims of ‘expansion’ and ‘divorce’. We argue that although there has been expansion of financial motives and practices the ‘divorce’ between the financial and the productive economy cannot be considered a new empirical phenomenon having occurred during the last decades and even less an epochal shift of the capitalist system. The neglect of the needs of a self-centered economy has been the ‘normal’ and structural operation of finance in most of the former European colonies in the Global South during the last 150 years. We provide evidence to that effect with a longue durée study of the finance-production nexus in Senegal and Ghana. A main result of our empirical exploration is that an understanding of the historical developments of finance under colonialism is key for understanding how capitalist finance works globally. Such a de-centered perspective requires however a serious engagement with the concept and logics of imperialism.

Suggested Citation

  • Koddenbrock, Kai & Kvangraven, Ingrid Harvold & Sylla, Ndongo Samba, 2020. "Beyond Financialisation: The Need for a Longue Durée Understanding of Finance in Imperialism," OSF Preprints pjt7x, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:pjt7x
    DOI: 10.31219/osf.io/pjt7x
    as

    Download full text from publisher

    File URL: https://osf.io/download/5f6da9f9460809024a1b44a0/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/pjt7x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bonizzi, Bruno & Kaltenbrunner, Annina & Powell, Jeffrey, 2019. "Subordinate financialization in emerging capitalist economies," Greenwich Papers in Political Economy 23044, University of Greenwich, Greenwich Political Economy Research Centre.
    2. Jan Kregel, 2004. "Can we create a stable international financial environment that ensures net resource transfers to developing countries?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(4), pages 573-590.
    3. Decker, Stephanie, 2008. "Building Up Goodwill: British Business, Development and Economic Nationalism in Ghana and Nigeria, 1945–1977," Enterprise & Society, Cambridge University Press, vol. 9(4), pages 602-613, December.
    4. Huillery, Elise, 2014. "The Black Man's Burden: The Cost of Colonization of French West Africa," The Journal of Economic History, Cambridge University Press, vol. 74(1), pages 1-38, March.
    5. Apostolos Fasianos & Diego Guevara & Christos Pierros, 2016. "Have We Been Here Before? Phases of Financialization within the 20th Century in the United States," Economics Working Paper Archive wp_869, Levy Economics Institute.
    6. Austin, Gareth & Uche, Chibuike Ugochukwu, 2007. "Collusion and Competition in Colonial Economies: Banking in British West Africa, 1916–1960," Business History Review, Cambridge University Press, vol. 81(1), pages 1-26, April.
    7. Mr. Mauro Mecagni & Daniela Marchettini & Mr. Rodolfo Maino, 2015. "Evolving Banking Trends in Sub-Saharan Africa: Key Features and Challenges," IMF Departmental Papers / Policy Papers 2015/010, International Monetary Fund.
    8. Mr. Charles Enoch & Mr. Paul Henri Mathieu & Mr. Mauro Mecagni & Mr. Jorge I Canales Kriljenko, 2015. "Pan-African Banks: Opportunities and Challenges for Cross-Border Oversight," IMF Departmental Papers / Policy Papers 2015/004, International Monetary Fund.
    9. Ewa Karwowski & Engelbert Stockhammer, 2017. "Financialisation in emerging economies: a systematic overview and comparison with Anglo-Saxon economies," Economic and Political Studies, Taylor & Francis Journals, vol. 5(1), pages 60-86, January.
    10. Bichler, Shimshon & Nitzan, Jonathan, 2012. "Imperialism and Financialism. A Story of a Nexus," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 5, pages 42-78.
    11. Thandika Mkandawire, 1999. "The political economy of financial reform in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(3), pages 321-342.
    12. Nicolas Véron, 2012. "Financial Reform after the Crisis," World Scientific Book Chapters, in: Barry Eichengreen & Bokyeong Park (ed.), The World Economy After The Global Crisis A New Economic Order for the 21st Century, chapter 2, pages 7-28, World Scientific Publishing Co. Pte. Ltd..
    13. Benjamin Braun, 2016. "From performativity to political economy: index investing, ETFs and asset manager capitalism," New Political Economy, Taylor & Francis Journals, vol. 21(3), pages 257-273, May.
    14. Klas Rönnbäck & Oskar Broberg, 2019. "Capital and Colonialism," Palgrave Studies in Economic History, Palgrave Macmillan, number 978-3-030-19711-7.
    15. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    16. Kofi Adjei-Frimpong & Christopher Gan & Baiding Hu, 2016. "Competition in the banking industry: Empirical evidence from Ghana," Journal of Banking Regulation, Palgrave Macmillan, vol. 17(3), pages 159-175, July.
    17. Michael Bleaney & Atsuyoshi Morozumi & Zakari Mumuni, 2020. "Inflation Targeting and Monetary Policy in Ghana," Journal of African Economies, Centre for the Study of African Economies, vol. 29(2), pages 121-145.
    18. Decker, Stephanie, 2018. "Africanization in British Multinationals in Ghana and Nigeria, 1945–1970," Business History Review, Cambridge University Press, vol. 92(4), pages 691-718, December.
    19. Gareth Austin & Ewout Frankema & Ewout Morten Jerven, 2015. "Patterns of Manufacturing Growth in Sub-Saharan Africa: From Colonization to the Present," Working Papers 0071, Utrecht University, Centre for Global Economic History.
    20. Hudson, Peter James, 2017. "Bankers and Empire," University of Chicago Press Economics Books, University of Chicago Press, number 9780226459110, December.
    21. Peter Quartey, 2005. "Financial Sector Development, Savings Mobilization and Poverty Reduction in Ghana," WIDER Working Paper Series RP2005-71, World Institute for Development Economic Research (UNU-WIDER).
    22. P. J. Cain & A. G. Hopkins, 1987. "Gentlemanly capitalism and British expansion overseas II: new imperialism, 1850-1945," Economic History Review, Economic History Society, vol. 40(1), pages 1-26, February.
    23. Charles Engel & Kristin Forbes & Jeffrey Frankel, 2012. "Global Financial Crisis," NBER Books, National Bureau of Economic Research, Inc, number enge11-2.
    24. Soumaila Doumbia, 2011. "Surliquidité bancaire et « sous-financement de l'économie ». Une analyse du paradoxe de l'UEMOA," Revue Tiers-Monde, Armand Colin, vol. 0(1), pages 151-170.
    25. Nick Bernards, 2016. "The International Labour Organization and the ambivalent politics of financial inclusion in West Africa," New Political Economy, Taylor & Francis Journals, vol. 21(6), pages 606-620, November.
    26. Gerald Epstein, 2019. "The Political Economy of Central Banking," Books, Edward Elgar Publishing, number 18820.
    27. Stephanie Decker, 2011. "Corporate political activity in less developed countries: The Volta River Project in Ghana, 1958--66," Business History, Taylor & Francis Journals, vol. 53(7), pages 993-1017, December.
    28. repec:hal:spmain:info:hdl:2441/24502lcc1r91eqi8qjsc2299mq is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierre Van Der Eng, 2017. "Dealing With Liability Of Foreignness: The Case Of Philips In Australia, 1945-1980," CEH Discussion Papers 06, Centre for Economic History, Research School of Economics, Australian National University.
    2. Koddenbrock, Kai & Sylla, Ndongo Samba, 2019. "Towards a political economy of monetary dependency: The case of the CFA franc in West Africa," MaxPo Discussion Paper Series 19/2, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    3. Karthik Reddy & Moritz Schularick & Vasiliki Skreta, 2020. "Immunity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(2), pages 531-564, May.
      • Karthik Reddy & Moritz Schularick & Vasiliki Skreta, 2012. "Immunity," Working Papers 12-17, New York University, Leonard N. Stern School of Business, Department of Economics.
      • Karthik Reddy & Moritz Schularick & Vasiliki Skreta, 2013. "Immunity," Working Papers 13-04, New York University, Leonard N. Stern School of Business, Department of Economics.
      • Karthik Reddy & Moritz Schularick & Vasiliki Skreta, 2013. "Immunity," CESifo Working Paper Series 4445, CESifo.
    4. Giorgos Galanis & Giorgos Gouzoulis, 2020. "Financialisation, working conditions and contagion dynamics in developing and emerging economies," Working Papers PKWP2018, Post Keynesian Economics Society (PKES).
    5. Bucheli, Marcelo & DeBerge, Thomas, 2024. "Multinational enterprises’ nonmarket strategies: Insights from History," International Business Review, Elsevier, vol. 33(2).
    6. Isaac Abotebuno Akolgo, 2023. "Ghana's Debt Crisis and the Political Economy of Financial Dependence in Africa: History Repeating Itself?," Development and Change, International Institute of Social Studies, vol. 54(5), pages 1264-1295, September.
    7. Albina Gibadullina, 2024. "Who owns and controls global capital? Uneven geographies of asset manager capitalism," Environment and Planning A, , vol. 56(2), pages 558-585, March.
    8. Ingrid Harvold Kvangraven, 2021. "Beyond the Stereotype: Restating the Relevance of the Dependency Research Programme," Development and Change, International Institute of Social Studies, vol. 52(1), pages 76-112, January.
    9. Perry, Keston K., 2020. "The New ‘Bond-age’, Climate Crisis and the Case for Climate Reparations: Unpicking Old/New Colonialities of Finance for Development within the SDGs," SocArXiv h9s2z, Center for Open Science.
    10. repec:bla:jomstd:v:47:y:2010:i:s1:p:791-813 is not listed on IDEAS
    11. Costas Lapavitsas & Aylin Soydan, 2020. "Financialisation in developing countries: Approaches, concepts, and metrics," Working Papers 240, Department of Economics, SOAS University of London, UK.
    12. Decker, Stephanie, 2012. "The silence of the archive: post-colonialism and the practice of historical reconstruction from archival evidence," MPRA Paper 37280, University Library of Munich, Germany.
    13. Michael Goldman & Devika Narayan, 2021. "Through the Optics of Finance: Speculative Urbanism and the Transformation of Markets," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 45(2), pages 209-231, March.
    14. Ishva Minefee & Marcelo Bucheli, 2021. "MNC responses to international NGO activist campaigns: Evidence from Royal Dutch/Shell in apartheid South Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 971-998, July.
    15. Michael Goldman, 2023. "Speculative urbanism and the urban-financial conjuncture: Interrogating the afterlives of the financial crisis," Environment and Planning A, , vol. 55(2), pages 367-387, March.
    16. Sophie van Huellen & Fuad Mohammed Abubakar, 2021. "Potential for Upgrading in Financialised Agri-food Chains: The Case of Ghanaian Cocoa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 227-252, April.
    17. Ewout Frankema & Jeffrey Williamson & Pieter Woltjer, 2015. "An Economic Rationale for the African Scramble: The Commercial Transition and the Commodity Price Boom of 1845-1885," NBER Working Papers 21213, National Bureau of Economic Research, Inc.
    18. Jorge Garcia-Arias & Alan Cibils & Agostina Costantino & Vitor B. Fernandes & Eduardo Fernández-Huerga, 2021. "When Land Meets Finance in Latin America: Some Intersections between Financialization and Land Grabbing in Argentina and Brazil," Sustainability, MDPI, vol. 13(14), pages 1-37, July.
    19. Richard Waldron, 2019. "Financialization, Urban Governance and the Planning System: Utilizing ‘Development Viability’ as a Policy Narrative for the Liberalization of Ireland's Post‐Crash Planning System," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 43(4), pages 685-704, July.
    20. Akosah, Nana Kwame & Alagidede, Imhotep Paul & Schaling, Eric, 2020. "Testing for asymmetry in monetary policy rule for small-open developing economies: Multiscale Bayesian quantile evidence from Ghana," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    21. Waterbury, John, 1999. "The Long Gestation and Brief Triumph of Import-Substituting Industrialization," World Development, Elsevier, vol. 27(2), pages 323-341, February.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:osfxxx:pjt7x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://osf.io/preprints/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.