Domestic structures, foreign economic policies and global economic order: Implications from the rise of large emerging economies

Abstract

The rise of the large emerging economies of Brazil, India and China can easily be counted among the most important contemporary structural changes in the global political economy. This article attempts to determine whether these countries have a common institutional model for governing their economies and addresses the implications of these commonalities for global economic institutions. The approach consists of three major steps: first, a general ideal type for encompassing capitalism in these large emerging economies is constructed, and dubbed 'state-permeated market economy'; second, we compare these countries empirically, with regard to the features highlighted by the ideal type and in contrast to other varieties of capitalism; and, finally, we extrapolate some long-term implications for the global economic order, based on the assumption that foreign economic policies will be informed by domestic institutional structures. Based

Economic causes of the Eurozone crisis: the analytical contribution of Comparative Capitalism

“…Scharpf, 2011;Gabor and Ban, 2012;Hall, 2012Hall, , 2014Höpner and Schäfer, 2012;Hancké, 2013a, b;Johnston et al, 2013;Panagiotarea, 2013;Becker, 2014a;Höpner and Lutter, 2014;Kuokštis, forthcoming;Streeck, 2014;Beramendi et al, 2015b), but also tensions within the global political economy, due to a shift of production towards emerging markets (e.g. Nölke and Vliegenthart, 2009;Nölke, 2011;Bohle and Greskovits, 2012;Kalinowski, 2013;De Ville and Vermeiren, 2014;Vermeiren, 2014;Nölke et al, 2015). On the other side, some CCC scholars find their prime source of inspiration not in ( post-)VoC, but in the (institutionalist) Regulation perspective, Dependency theory and post-Kaleckian macroeconomics.…”

International financial regulation and domestic coalitions in state-permeated capitalism: China and global banking rules

“…Drawing on concepts developed in Comparative Capitalism, we can explain preferences in international economic negotiations by looking at domestic capitalist institutions, while assuming that states will try to prevent international institutions that strongly interfere with those institutions that support domestic capitalist development (Fioretos, 2010(Fioretos, , 2011Nölke, 2011;Kalinowski, 2013;Nölke et al, 2014). From this perspective, the dominating role of state factions and of national capitalists is not unique to China, but rather typical for the type of capitalism that has been evolving in large emerging economies such as India and Brazil.…”

“…At the core of the article is the assumption that different models of capitalism provide important analytical leverage for understanding the behavior of (emerging) economies in international institutions. In line with an emerging research program on 'second image IPE', we link the comparative institutional study of capitalism with the analysis of broader global institutions and structures (Fioretos, 2010(Fioretos, , 2011Nölke, 2011;McNally, 2012;Kalinowski, 2013;Vermeiren, 2014;Nölke et al, 2014).…”

Second image revisited: The domestic sources of China’s foreign economic policies

“…However, at least from an International Political Economy perspective, the most interesting question is whether the increasing importance of China will lead to a different, more statist model of global capitalist regulation, if compared with the current liberal model. So far, this question has only been addressed by a number of popular, somewhat speculative treatments (Choate, 2009;Bremmer, 2010), while comprehensive empirical studies have only just begun (McNally, 2012;Nölke et al, 2014).…”

“…The latter have been characterized as 'state-permeated market economies' (Nölke, 2012 and this issue;Nölke et al, 2014), given the pre-dominance of close networks between public authorities and private domestic capital. The most prominent application of comparative capitalism categories to Chinese foreign economic policies has been developed by McNally (2012 and this issue).…”