Austerity and State Rescaling

2021 ◽  
pp. 71-90
Author(s):  
Jonathan S. Davies
Keyword(s):  
Financial Crisis ◽  
Local Governments ◽  
Global Financial Crisis ◽  
Local State ◽  
Fiscal Rules ◽  
Place Marketing ◽  
Political Capacity ◽  
Revenue Streams ◽  
The Global Financial Crisis ◽  
National Governments

The story of austerity is entwined with experiments in city-regionalism, authoritarianism, fiscal and political centralisation and downloading or scalar dumping. Interpenetrating institutional, territorial and scalar restructurings have significant implications for politics and governing cultures, and relations between local states and citizens. This chapter focuses on the evolving powers and liabilities accruing to sub-national governments in the period since the Global Financial Crisis, read through revenue streams, fiscal rules and changes to spatial and jurisdictional capacities. The key finding across the eight cities is that municipalities face a variable and increasing mix of upward and downward constraints undermining their political capacity. Considered from the standpoint of governability, state rescaling in the period since the Crisis has tended to consolidate disciplinary neoliberalism, creating additional pressures on local governments to reinforce their tax bases through place-marketing. These processes also make cities more governable for national and provincial elites, pushing local state mechanisms into closer alignment with the administrative and financial priorities of upper tier apparatuses.

Perceptions of the global financial crisis in the US, UK, Canada and Australia: a comparative editorial analysis of the legitimacy of finance

2016 ◽  
Vol 18 (1) ◽  
pp. 1-25 ◽  
Author(s):  
John Mikler ◽  
Sundran Rajendra ◽  
Ainsley Dianne Elbra
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Free Market ◽  
Regulatory Reform ◽  
Economic Sectors ◽  
The Us ◽  
Neoliberal Ideology ◽  
The Global Financial Crisis ◽  
Mainstream Press ◽  
National Governments

The Global Financial Crisis (GFC) is seen as arising from a new social structure of accumulation that institutionalised a neoliberal form of capitalism post the 1980s. This gave rise to “financialization,” which has increased both the power of financial markets over other economic sectors, and of financial market actors over national governments. However, while the neoliberal ideology underpinning financialization had a global impact, it sprang from the leading free market economies of the US and UK and was most readily embraced by states sharing their institutional support for it, such as Australia and Canada. But to what extent has it been questioned in these states since the crisis? In this article we examine perceptions of the legitimacy of finance via a 6 year comparative study of editorials in the mainstream press over 2007–2012. We do so because shifts in perceptions of the legitimacy suggest the extent to which the GFC produced the potential for more fundamental institutional change. We find that rather than this legitimacy having been undermined, or transformed, existing viewpoints instead hardened over the period considered. This indicates that, despite regulatory reform, the power of finance remains relatively unchanged.

scholarly journals Insolvent Local Government: German Approaches to Prevention

2014 ◽  
Vol 9 (2) ◽  
Author(s):  
Thomas Duve ◽  
Wolfgang Drechsler
Keyword(s):  
Financial Crisis ◽  
Local Government ◽  
Local Governments ◽  
Global Financial Crisis ◽  
Empirical Basis ◽  
Financial Pressure ◽  
Budget Crisis ◽  
The Global Financial Crisis ◽  
Municipal Autonomy ◽  
Do So

The global financial crisis is affecting local governments particularly strongly. The threat of insolvency looms large for many local governments, and therefore, it is unfortunately very timely to examine this issue. Can genuine bankruptcy occur, should it be allowed to occur, can it be prevented, and if it cannot be, how can it be managed well? In order to do so, the current essay sets out to investigate, on an empirical basis, how Germany has so far (i.e., before the crash) dealt with the issue of municipal insolvency. This pre-crisis approach also underlines the importance of the topic, because it shows that even in more or less financially solid times, municipalities were already exposed to high financial pressure. Now, the crisis has increased the number of municipalities facing a budget crisis. The results of the present investigation can assist in dealing with the consequences of the crisis. On account of its high and indeed paradigm-setting level of municipal autonomy, the possibility of drawing lessons from Germany should be particularly interesting.

scholarly journals Constitutionalisation of Fiscal Rules in Times of Financial Crises – a Cure or a Trap?

2021 ◽  
pp. 94-112
Author(s):  
Łukasz Kielin
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Fiscal Rules ◽  
Economic Downturn ◽  
Policy Rules ◽  
Eu Member States ◽  
The Third ◽  
Global Pandemic ◽  
The Global Financial Crisis

The global financial crisis of 2008 undoubtedly had a significant impact on the constitutional regulation of economic and financial matters. As a consequence of economic downturn six EU Member States (Germany, Spain, Slovakia, Slovenia, Italy and Hungary) have amended their constitutions. With economic crisis caused by global pandemic of, the new discussion about constitutional fiscal policy rules is expected. New economic downturn is one of the most important challenges for the constitutional fiscal rules, which undoubtedly will verify their functioning and effectiveness. The main purpose of this paper is to find out if constitutional fiscal policy rules is a cure or trap in times of financial crisis. According to the hypothesis adopted, constitutional fiscal rules can be an effective tool. The article has the following structure. In the first and second part I describe constitutional fiscal rules. The third part concerns the method of constitutionalisation. Subsequently, I am focus on effectiveness of constitutional fiscal policy rules. The last part of the article contains conclusions.

On the formation of a New Paradigm of fiscal Policy

2013 ◽  
pp. 152-158 ◽  
Author(s):  
V. Senchagov
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Domestic Demand ◽  
Real Economy ◽  
New Paradigm ◽  
Monetary Aggregate ◽  
The Past ◽  
The Global Financial Crisis

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

ASPEK ETIK DAN SISTEMIK DALAM EKONOMI DAN BISNIS ISLAM

ALQALAM ◽  
2014 ◽  
Vol 31 (1) ◽  
pp. 187
Author(s):  
Budi Harsanto
Keyword(s):  
Financial Crisis ◽  
Business Ethics ◽  
Moral Hazard ◽  
Global Financial Crisis ◽  
Financial Institution ◽  
Research Question ◽  
Academic Journals ◽  
Lehman Brothers ◽  
The World ◽  
The Global Financial Crisis

The fall of Enron, Lehman Brothers and other major financial institution in the world make researchers conduct various studies about crisis. The research question in this study is, from Islamic economics and business standpoint, why the global financial crisis can happen repeatedly. The purpose is to contribute ideas regarding Islamic viewpoint linked with the global financial crisis. The methodology used is a theoretical-reflective to various article published in academic journals and other intellectual resources with relevant themes. There are lots of analyses on the causes of the crisis. For discussion purposes, the causes divide into two big parts namely ethics and systemic. Ethics contributed to the crisis by greed and moral hazard as a theme that almost always arises in the study of the global financial crisis. Systemic means that the crisis can only be overcome with a major restructuring of the system. Islamic perspective on these two aspect is diametrically different. At ethics side, there is exist direction to obtain blessing in economics and business activities. At systemic side, there is rule of halal and haram and a set of mechanism of economics system such as the concept of ownership that will early prevent the seeds of crisis. Keywords: Islamic economics and business, business ethics, financial crisis 

Mobilising resiliency in times of economic hardship: Emerging themes in migrant worker remittance payments

2014 ◽  
Vol 7 (2) ◽  
pp. 159-167
Author(s):  
Kevin Garlan
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Migrant Worker ◽  
Economic Hardship ◽  
Priority Areas ◽  
Mobile Payments ◽  
Payment Methods ◽  
The Future ◽  
Emerging Themes ◽  
The Global Financial Crisis

This paper analyses the nexus of the global financial crisis and the remittance markets of Mexico and India, along with introducing new and emerging payment technologies that will help facilitate the growth of remittances worldwide. Overall resiliency is found in most markets but some are impacted differently by economic hardship. With that we also explore the area of emerging payment methods and how they can help nations weather this economic strife. Mobile payments are highlighted as one of the priority areas for the future of transferring monetary funds, and we assess their ability to further facilitate global remittances.

The Pandemic Exposes an Ailing US Governance Model

2020 ◽  
Vol 119 (820) ◽  
pp. 310-316
Author(s):  
Alasdair Roberts
Keyword(s):  
Financial Crisis ◽  
Developing World ◽  
Global Financial Crisis ◽  
Political Polarization ◽  
Washington Consensus ◽  
The Past ◽  
Governance Model ◽  
Governance Challenges ◽  
The Global Financial Crisis ◽  
Current Governance

Since the 1990s and Bill Clinton’s embrace of key parts of Ronald Reagan’s legacy, mainstream US governance has been guided by a bipartisan consensus around a formula of shrinking the federal government’s responsibilities and deregulating the economy. Hailed as the ultimate solution to the age-old problem of governing well, the formula was exported to the developing world as the Washington Consensus. Yet growing political polarization weakened the consensus, and in a series of three major crises over the past two decades—9/11, the global financial crisis, and the COVID-19 pandemic—US policymakers opted for pragmatism rather than adherence to the old formula, which appears increasingly inadequate to cope with current governance challenges.

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