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Globalization of Financial Capitalism and its Impact on Financial Sovereignty
Abstract
Under the influence of neo-liberalism, financial liberalization initiated by developed countries has transformed industrial capitalism into financial capitalism and subsequently brought about the globalization of financial capitalism. Despite the respite after the financial crisis of 2008, the resurgence of globalization of financial capitalism will be unavoidable. Globalization of financial capitalism, an economic phenomenon as well as a social, political, and legal phenomenon, may have a significant impact on the financial sovereignty of countries around the world. In an era of globalization of financial capitalism, how to safeguard the financial sovereignty has become a serious challenge for all countries, especially developing countries.
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Notes
For detailed discussions on the rise, features, and effects of financial capitalism, see Zhou and Li (2013).
For detailed discussions on the nature and effects of globalization of financial capitalism, see Li and Zhou (2014).
For a survey on the definitions of “state sovereignty,” see Ren (2007).
For example, in International Monetary Fund (IMF), at least 85% of total votes are required for the approval of any proposal, and the United States holds 16.75% of total votes, which effectively gives the United States a super voting power.
For example, Wang Yang, currently the deputy prime minister of the State Council and a member of the 25-member politburo which is the top decision-making body of China, has repeatedly required that members of Communist Party of China (CPC) should read The World Is Flat when he headed the provincial committee of CPC in Chongqing City and Guangdong Province. It was reported that in 2007, upon his recommendation, the daily sales of The World Is Flat increased from about 100 copies to more than 1,000 copies in Chongqing (Du 2013).
The data are available at http://data.worldbank.org/indicator/NV.IND.MANF.ZS, accessed February 6, 2015.
The Leading Group for Financial and Economic Affairs (Zhonggong Zhongyang Caijing Lingdao Xiaozu) is an inner group of the Central Committee of the CPC in charge of leading and supervising economic and financial work of both the CPC Central Committee and the State Council. The Group is headed by CPC general secretary or prime minister of the State Council.