This study explores the cultural evolution of finance through the analysis of monetary incentives and their impact on financial innovation. Through an interdisciplinary approach, it investigates how financial practices have changed due to economic and cultural pressures, and how these changes have driven new forms of innovation in global financial markets. The results reveal that monetary incentives play a crucial role in the evolution of financial structures, promoting the adoption of new (...) technologies and financial products that have transformed the global economy. This article highlights the importance of understanding the interplay between culture and finance in order to anticipate future trends in the industry. (shrink)

This article advances towards the reconceptualization of financial innovation. It examines the calamitous role of financial innovation in the global financial crisis, developing a non-rational theorization of finance within the social economy that factors in the role of affect. Outlining the foundations for such an approach, the analysis draws on Thorstein Veblen and Georges Bataille, whose work encompasses psycho-social conceptions of political-economic agency. From the more anthropological lens of Veblen and Bataille's theorizations, it is possible (...) to move beyond instrumentalist accounts of financial innovation premised on pecuniary expedients and aspirations of market completion. As we argue, in a broader affective economy, contemporary financial innovation serves invidious ends, providing a means of attaining social distinction, constituting a medium for violent expenditure and bestowing access to sovereign expression on its purveyors. Highlighting the non-rational dimension of financial markets prompts a reconsideration of the nature of crisis and the means of its redress. (shrink)

This special section explores the intersection of social finance and financial innovation in contemporary technologies of relational finance. The articles that follow study detailed cases of contemporary experiments in payments, money and credit-debt relations. By way of introduction, in this short piece we outline three paradoxes at the heart of these experiments: the feudal life of capitalist financial innovation; the social life of supposedly asocial crypto-currencies; and the market life of relational financial dissent.

continent. 1.1 (2011): 22-25. The Author gratefully acknowledges the financial support of CAPES (Coordenação de Aperfeiçoamento do Ensino Superior), Brazil. From the multifarious subdivisions of semiotics, be they naturalistic or culturalistic, the realm of semiotics of value is a ?eld that is getting more and more attention these days. Our entire political and economic systems are based upon structures of symbolic representation that many times seem not only to embody monetary value but also to determine it. The connection (...) between monetary and linguistic exchanges is self-evident: the former requires the latter and develops in direct relation to it. Creative experimentation and design of digital systems of value exchange are blossoming on the web. Dr. Gilson Schwartz, an economist turned media theorist and professor at the University of São Paulo, adopted the concept of Iconomics, originally created by Michael Kaplan, an author concerned with the linguistics of economic value. Empowering local communities and unlocking new levels of value creation and representation via digital technologies are the main goals of Dr. Schwartz’s projects, aiming at the re-designing of our relationship to the economic value of imagination and the social control of property. Schwartz is Assistant Professor at the School of Communication and Arts of the University of São Paulo, a former Chief Economist at BankBoston, Brazil and Advisor to the President of the National Social and Economic Development Bank (BNDES). FURTHER READING: Kaplan, Michael. “Iconomics: The Rhetoric of Speculation.” Public Culture . 15.3 (2003): 477-493. Renata Lemos-Morais: You have recently produced and directed a short documentary about Creative Currencies in Latin America. Could you tell us a bit about its process and its findings? Gilson Schwartz: The “Creative Currencies” project is a work-in-progress platform which unfolds as an action research agenda connected both to the production of audiovisual content and the development of social currency software. The initiative dates back to 2003 when I led an experimental project supported by the Presidency of Brazil. At that time, we issued paper currency in a small, touristic village in the Northeast Region which stimulated local cultural projects. But it was only in 2009 that the Central Bank of Brazil acknowledged “social currencies” as a legitimate economic agenda, calling for more debate at the I Financial Inclusion Forum. This year, the monetary authorities organized a second forum that also opened the room to discussions on mobile payment systems and new perspectives on poverty alleviation via State subsidies. The Ministry of Culture funded the “Creative Currencies” project in 2009-2010 and our next stage in this discovery process is to be supported by the National Social and Economic Development Bank (BNDES). In short, there is genuine interest among public officials in different areas and public funding for social currencies is on the rise in Brazil. However, after all these years we are still at a very early stage of research and practice. Some of the most successful initiatives (such as Banco Palmas) actually evolved out of local monetary creation to become correspondent banking operations for commercial banks and other financial groups. After eight years of price stability and social inclusion, Brazil stands out as a major opportunity for social experimentation, even the Grameen Bank is now entering the Brazilian market and many NGOs are geared towards different forms of entrepreneurialism in the base of the pyramid, riding solidarity economic models, microfinance and microcredit for local development. It is yet to be seen, however, whether these developments are just one more stage of “bankarization”, that is to say, an extension of regular banking services or actually a new form of social and symbolic self-determination at the local level. So far, the Central Bank of Brazil is open to new forms of credit and local finance as long as they are strictly territorial and very close to barter among the poor. In other words, whether the process of monetary creation could be made to fit an open source paradigm is yet to be seen. Community banking and social currencies might as well end up as just another channel for access to and use of banking services. The “Creative Currencies” project aims at promoting the discussion of more fundamental issues, such as the limits of central banking, the prospects for local financial development and the possibility of creating and managing financial icons as cultural assets. The purpose of this project is to produce short documentaries that will bear testimony to this evolving regulatory framework while inducing more discussion about the fundamental iconomic issues concealed in the process of money and wealth creation. RLM: What new potential is there in applying digital technologies to currency creation? GS: Globalization is a result of the virtualization of money, that is, the overcoming of illusions such as the “gold standard”. Money is an icon created by institutions, not on supposedly natural or material foundations but out of political and financial interests. The “dollar standard” is an outstanding evidence of this phenomenon and Kaplan´s paper, the first to use the expression “iconomics”, insists on the rhetoric and semiotic effects associated to a supposedly scientific model of money creation and management. This is a fundamental change that was perceived and discussed much before the digitalization of the world by unorthodox economists such as John Maynard Keynes since the early 20th century. The digitalization of global financial flows accelerated this immateriality and the creation of the Euro was yet another evidence of the political foundations of currencies. The banking establishment, however, is keen on the idea that scientific formulae hold the key to sound money creation. Keynesianism has been repeatedly associated to “inflationism” while the supposedly sound monetary policies of the Orthodoxy serve well the political and financial interests of a technocratic elite. Corporate media also serve this fictitious depiction of the monetary process despite the cyclical bust of monetary rules and financial regulations. The internet, however, has created numerous opportunities for the disintermediation in industries such as film, music and commodities. There is no reason to doubt that the financial industry can also be transformed by Peer-to-Peer (P2P) infrastructures. Money is media as well. Credit is but confidence. Once people realize that the distributed computing power of networks can also be the platform to weave new monetary and credit operations, there is room for grassroots emancipation out of the established owners of monetary institutions. So far, however, there has been a privatization of monetary management and there is not a clear path or model for the emergent (P2P) property democratization that is inherent to the internet. Digital assets, however, clearly have an inherent potential to escape central control and proprietary regulatory frameworks. RLM: How are social networks transforming the ways in which we exchange value? Do you believe that online influence and reputation might be translated into a new kind of currency? GS: The foundation for social currencies as envisaged by solidarity economics is the territory. Authorities are willing to concede local monetary creation as long as it is restricted to poor neighborhoods, as a proxy to barter. In this relevant but limited context, reputation, personal knowledge and informal ties form the matrix of local or “proximity” finance which are expected to keep credit and leverage to a sustainable level. Anything beyond that should and would lead to an integration of local finance into the established banking system. However, inasmuch as the internet promotes virtual territories and reputation is now subject to all sorts of digital manipulation and stardom becomes an everyday cultural process among teenagers and elders alike, the territorial “foundation” is substituted for more complex patterns of solidarity, cooperation and exchange that reach beyond the physical territory and even the “human.” Digital assets embody knowledge, technology, cultural and educational values that are exchanged at a global scale beyond the control of democratic States (Chinese-like intervention is the exception, not the rule). Hacktivism is unstoppable and so is monetary hacktivism. Especially in the Third World, mobile communications fast became conveyors of money transfers and other appropriation strategies. Banking and telecom sectors already battle for the control of these emerging markets and, as a matter of fact, have so far contributed to the containment of these processes. Governments serve these moguls and have usually adopted a wait-and-see attitude. If open source hardware and grassroots social movements combine to challenge these proprietary battles, then social networks may evolve into new forms of social capital and thus form the ground on which to design and implement social currencies. The global financial crisis, as well as the dollar demise, are an event of such a proportion that social networks may open the path for emancipator subjects to seize the opportunity. RLM: What are some of the social experiments that you think are revolutionizing the way in which value is exchanged? GS: There is a broad evolution of economic systems towards the valuation of intangible assets such as knowledge, reputation and sustainability. There are many examples of local as well as global events that call the traditional systems of exchange into question, from carbon credits to educational bonuses, digital barter frameworks and locally based solidarity and fair trade networks. These emerging examples, no matter how different in nature or scale, represent a challenge to the traditional value creation schemes and theories which are based on use and exchange value, supply and demand. This is not to say that utility and labour or scarcity are to be totally dismissed, but there is now an emerging perception that value is also a function of behavioral codes, symbolic patterns and the energy of institutional frameworks. The plasticity of digital platforms is relevant insofar as intellectual property becomes the central source of value creation. But when you discuss the property rights of public goods such as the environment or basic social rights (of minorities or localities), then a new paradigm seems to emerge. RLM: Are gaming and online storytelling digital practices that might have an impact on the way new currencies are created and developed? GS: “Play money” has been one of the early and most intriguing phenomena associated to the diffusion of virtual worlds. These virtual currencies have also been prone to “boom and bust” dynamics, speculation and pure theft (Second Life scams were common and led to “intervention” by the owners of the game). Storytelling is a major source of value, that is, the value of attention and the markets for audience. There are plenty of private monies created and managed by corporate entertainment groups, telecom operators (via mobile virtual network operators) and marketing frameworks. The casino economy, as already depicted by Keynes and other unorthodox economists, is always storytelling about future states of the world, confidence building and leverage of animal spirits. The novelty of current events is not the fictitious nature of any form of capital, but the potential for digital democratization of controls over the imaginary nature of value creation. But this is just a potential, a possibility, a figment that more often than not is appropriated by centralized and opaque private powers. The game industry is a testbed for new connections between storytelling and money creation. RLM: Monetary value was originally connected to the scarcity of precious metals, such as gold. Our entire monetary system seems therefore to function according to a logic of scarcity. Do you believe it is possible to reverse this logic into a logic of abundance? GS: The gold standard was a fiction itself, the “scarcity” is always produced by institutions that regulate confidence and access to credit. The key issue is not to fabricate abundance, but to question the institutions which produce scarcity out of any standard, gold or whatever. Central banks are at the service of private banks in the creation and management of scarcity. RLM: The promise that nanotechnology holds for our future is one of radical abundance (or so say transhumanists). The possibility of creating any kind of material substance through nanoengineering seems each day more feasible. What would this possibility entail in terms of systems of value exchange? GS: Nanotechnology, environmental concerns and grassroots appropriation of distributed knowledge are the frontiers of a new horizon of energy creation and management. Social groups in charge of managing scarcity for the sake of wealth and power concentration must be held accountable for the destruction of our future. Once this key political conundrum is accounted for, new systems of value exchange and even a non-mercantile society will come into existence. Revolutionary theorists such as Marx envisaged transformation via the extreme clash of contradictions between capital and labour. This approach has never led to a change in the systemic logic of scarcity for the sake of social control. We are once again facing the threshold of large scale societal change, but the outcome of the current crisis should come from our imagination, not from yet another paradox of abundance and scarcity. As long as we remain attached to the materiality of value, the illusion of freedom will but reinforce the massive manipulation of necessity. RLM: What do you think is the role of crowdfunding in this context? GS: Crowdsourcing as well as crowdfunding are examples of the peer to peer opportunities that come along with distributed computer power. However, the power structure behind wealth and scarcity creation may or may not be changed by crowd management. But it should not be taken at face value, so to speak. The stock market of course is an early form of crowdfunding without calling into question the proprietary framework of the companies offering their investment projects to the market. Any market is a form of crowdsourcing, that is to say, of distributed forms of supply and demand matchmaking. The wealth of networks, however, depends on the contractual ecosystem, the institutional framework, the channeling of social imagination, not on the purely quantitative distribution of bids and offers. I see economics as supply, demand and code. Once you have access to the code, once openness becomes part of the game, then there is a chance of crowd behavior becoming collective intelligence and sustainable imagination. RLM: Is the development of digital currencies headed towards a pluralistic ecology in which many micro currency systems co-exist, or is it penetrating the mainstream monetary system? If it is affecting the mainstream financial system, what would be its effect in the long-term? GS: The same issue is at stake both at local and global levels. The global system is, as a matter of fact, an unstable ecosystem of “micro currencies” whereas the dollar has so far exerted an overwhelming influence. Local currencies and private monies coexist with national currencies only to the extent that the Central Bank admits, for instance, that grassroots monetary emissions remain territorial and strictly connected to poverty. However, the question of how new developments in digital technologies and nanotechnologies might alter not only our current monetary systems but also our understanding of value in itself, is still an open question. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Justice Not GreedRichard A. HoehnJustice Not Greed Edited by Pamela Brubaker and Rogate Mshana Geneva: WCC Publications, 2010. 224 pp. $14.00The World Council of Churches (WCC) Advisory Group on Economic Matters (AGEM) advises the WCC and congregations on global economic issues. AGEM members from diverse backgrounds produced the papers in this volume. The introduction is by Rogate Mshana, WCC director for Peace, Justice, and Creation. Samuel Kobia, (...) general secretary of the WCC from 2004–9, introduces the rationale and role of AGEM in the global financial crisis. The book ends with a statement on just finance and the economy of life, adopted by the WCC Central Committee in September 2009. Justice Not Greed will be most useful in settings where there is interest in the intersection of ethics, the economic crisis, and Christianity in relation to the global economy, as well as among those who wish to follow the WCC. As expected [End Page 208] of conference papers, there is not a systematic development of an argument but overlapping ethical and economic analyses. All, however, are opposed to the status quo because of its manifest injustice, especially the impact on poor people.If one were to impose a thematic development, it might go something like this, allowing for individual differences among the authors. Decolonization has resulted in a lopsided, Western, capitalist economic system predicated on greed (Jan Pronk), described by other authors as a beast or a cancer (vivid but unhelpful metaphors since the crisis was caused by humans, not nature). The world lacks appropriate international structures. We need new global institutions, a new global financial architecture that is predicated on, or at least takes into account, justice. Congregations, the ecumenical movement, and the WCC could play a significant role in helping the United Nations move toward such a system.Several authors hope that the global crisis will provide a moment when such a change might become possible (e.g., Alexander Cobham’s “Blood-Stained Silver Lining”). Pamela K. Brubaker, Kim Yong-Bock, Roel Aalbersberg, Rienzie Perera, and Geevarghese Mor Coorilos examine questions related to the Bible, ethics, theology, a culture of “enough for all” (Musa Panti Filibus), the church as moral community, the ecumenical movement, and principles for an alternative economic system. Mariana Issa Zureikat argues for “econo-morals,” applying moral values to economic analyses. Thomas H. Kang advocates the capabilities approach of Amartya Sen and Martha Nussbaum. Marcos Arruda suggests an economy of world solidarity with the “gross happiness index” as a standard for measuring progress. While most chapters include economic analysis, John Dillon wades into some nitty-gritty causes of the current financial crisis, with a positive nod toward the (never adopted) Keynes plan for the Bretton Woods system of monetary management. Marie-Aimee Tourres lays out impacts on the developing world, as does Xiao Lian from a Chinese perspective. Most of these authors argue for such global solutions as a global reserve system and a global tax system.Justice Not Greed presents thoughtful, sometimes passionate papers that could form a basis for lively discussion. Yet real-world solutions often come down to the practice of democracy and political will. Unfortunately, it is not clear that the ecumenical movement possesses the will or the means to effect change because local organizing for political change is not a high priority at any level. [End Page 209]Richard A. HoehnChrist the Servant Lutheran ChurchCopyright © 2012 The Society of Christian Ethics... (shrink)

In our global economy knowledge-based industry is takingmore importance. Recent years have seen the success of anincreasing number of start-up companies, most technology-basedenterprises financed by private persons or companies, or through venture capital funds and public offering. In manyyears, those companies are faced at certain critical momentswith matters involving intellectual property rights, insiderinformation and raising money. These facts all have an ethicaldimension. There is an increasing need for ethical behaviourfrom all parties involved. A code of conduct of all (...) partiesshould be applied. This paper describes the growth processof a company and the valuation of an innovation project. Itwill overview a number of ethical issues, at different stagesin the innovation business, and in the lifetime of a start-upcompany, such as the problems of intellectual property, theconfidentiality of information, the negotiation processbetween the entrepreneur and the financier, the marketingof raising funds and of an IPO, and finally the informationand insider trading. The paper concludes with aplea for increased ethical ethical behaviour and the needfor rules of best practice for all parties: the inventor,the entrepreneur, the financial investor, and other stakeholders. (shrink)

This book presents a thorough and critical evaluation of the monetary and financial system prevalent in Western economies. Further, it seeks to explain why this system so often leads to financial crises and why they have been dealt with unsatisfactorily in the past. In order to provide answers to these questions, the book investigates the monetary and financial system from a multidisciplinary perspective, with a strong focus on the ethical value choices which throughout history have (...) shaped the monetary and financial legal system. In the closing chapters, the book also advances a detailed proposal for a New Global Monetary Order, one based on altruism, as an alternative to the neoliberal values dominant today. (shrink)

This article on the evolution of economic and monetary policy in Belgium, which turned the "sick man of Europe" into one of the stronger European economies and allowed it to enter into EMU, stresses the role of the monetary authorities as a stabilising force in Belgium. It gives a detailed analysis of how these changes have allowed Belgium to regain the confidence of both monetary authorities and international investors after the devaluation of 1982. The policy responses to (...) the oil shock at the beginning of the seventies broke with the policy mix which had until then been practised. Both the wage formation process andf iscal policy clearly spiralled out of control, the chiefresult of which was a drastic loss in international competitiveness. As a consequence, the current account showed a large deficit, the traditional level at which public deficit had stood rose dramatically, unemployment exploded and the financial structure of most corporations became fragile.A drastic realignment of economic policy started with the devaluation of the Belgian franc in 1982. This devaluation was accompanied by a series of measures aimed at preventing the inflationary pressures from triggering further devaluations, and hence at restoring credibility. These measures included restrictive fiscal policies and real wage cuts. By 1987 this recovery policy had successfully restored Belgian competitiveness, reduced the government deficit and restored the balance ofpayments equilibrium. Although public policies became less restrictive during the period 1988-1993, the central bank continued to gain international credibility. Significant stepsin this process were the abolition of the dual exchange rate system, the decision to peg the Belgian franc to the most stable currency in the ERM and the reform of the money markets in Belgium. The latter in particular helped to increase the central bank's independence, since this reform implied total control by the central bank over short term interest rates, it reduced significantly the automatic credit lines of the fiscal authorities with the central bank and it stipulated that revaluations of gold reserves should no langer be used to finance government budget deficits. By 1992 international credibility had been restored to such a degree that the Belgian franc became a strong currency during the 1992 crisis, obliging the central bank to come to the rescue of the weaker currencies under attack in September 1992 with a speculative inflow of capital of about 200 billion BEF. However this restored credibility continued to be fragile, as became evident during the 1993 exchange rate crisis when the Belgian franc was vigorously attacked by international speculation.The insufficient alignment of public and monetary policies proved to be at the heart of the financial problems of the 1993 crises. The Belgian government relaunched its policies of budgetary restriction and wage moderation, brought together in what was called the 'Global Plan'. This realignment of public policies to monetary policy swiftly restored the credibility of the Belgian franc, so that as early as January 1994 the Belgian franc converged to its central parity with an interest differential vis-à-vis the German mark of only about 2 %. This differential declined progressively. Indeed the global plan restored the confidence of the investors in Belgian economic policy. Financial markets now fully believed in the entry of Belgium into EMU and from then on no major difficulties were to arise. (shrink)

ABSTRACT Asset‐market bubbles occur dependably in laboratory experiments and almost as reliably throughout economic history—yet they do not usually bring the global economy to its knees. The Crash of 2008 was caused by the bursting of a housing bubble of unusual size that was fed by a massive expansion of mortgage credit—facilitated, in turn, by the longest sustained expansionary monetary policy of the past half century. Much of this mortgage credit was extended to people with little net (...) wealth who made slender down payments, so that when the bubble burst and housing prices declined, their losses quickly exceeded their equity. These losses were transmitted to the financial system—including banks, investment banks, insurance companies, and the institutional and private investors who provided liquidity to the mortgage market through structured securities. It seems that many of these institutions became insolvent; it is certain that they became illiquid. Liquidity loss and solvency fears created a feedback cycle of diminished financing, reduced housing demand, falling housing prices, more borrower losses, and further damage to the financial system and eventually the stock market and the real economy. There are important parallels with the housing and financial‐market booms that led up to the Crash of 1929 and the Great Depression. (shrink)

Academic entrepreneurship and the formation of spin-offs from educational institutions have been consolidated as essential elements to promote innovation and stimulate economic growth worldwide. However, the evolution of these initiatives shows marked differences between developed countries and emerging economies, such as Colombia. This study focuses on analyzing how research in this area has progressed, identifying the key factors that determine the success of spin-offs and suggesting a framework for action for Colombia in comparison with international dynamics. The findings reveal a (...) shift in research attention from prioritizing the creation of spin-offs to a greater focus on their long-term performance and sustainability. At the international level, the relevance of technology transfer, strategic alliances between universities and industry and the efficient management of technological resources are highlighted. On the other hand, in the Colombian context, research tends to focus on institutional aspects, cultural factors and support regulations, underestimating the analysis of the performance of spin-offs after their creation. This paper aims to contribute to the formulation of policies and strategies that promote not only the emergence but also the sustainability of academic spin-offs in Colombia, seeking to align their practices with international standards in order to maximize their impact on the economic and social development of the country. (shrink)

Apocalyptic thinking has a long religious and political tradition, but what place does it occupy within the temporal universe of contemporary capitalism? In this essay, we use the figure of the eschaton to draw out the loaded and ambiguous character of the future as it emerges through the condition of indebtedness. This entails a departure from political economy accounts of capitalist futurity, which stress the structural logic of financial speculation, in favour of an existential account that begins instead (...) with the cosmology of money and debt. We argue that finance capital’s fixation on the future has produced a very specific form of apocalyptic imagination, characteristic of financial society and built on a libidinal economy of leverage. Rather than offering an ecstatic end to the global process of financialization, financial eschatologies bind the contemporary subject to debt and indebtedness to the very end: an endless apocalypse, premised on the ends of finance itself. (shrink)

Securitization is considered to be one of the biggest financial innovations of the last century. It is also regarded as both a catalyst and a solution to the 2008 financial crisis. Once a popular method of financing the mortgage and consumer credit markets, aspects of the global securitization market are now struggling to revive. In this paper, I discuss the role that ethics played in securitization prior to the 2008 financial crisis and find that it is (...) not an obvious story of moral failures, but rather that it lies in more subtle elements of the financial system. The ethics uncertainty role in the securitization story is one of flawed incentives and the shifting of responsibility for handling risk. The role of securitization and the ethics of risk transfer have rarely been discussed explicitly in the literature. The historical origins of securitization and lessons learned from previous flawed uses of the process are also provided. I also detail the various global institutional reform proposals that have taken place. Moving forward, it is crucial to understand the causes, consequences, and ethical implications of securitization in the financial crisis so as to help individuals and managers better assess risk, align incentives, and design appropriate policy responses. (shrink)

The various institutional reforms which have led since the end of the 70s to the « privatisation of currency » have formed the main base on which the subsequent power of finance has been built, and, concurently, the dismantling of Welfare could take place. Core of this was the so-called autonomy of central banks, as their « umbilical cord » to national treasuries was severed. From then on, deficit financing and « keynesian » social expenditures became near-impossible. Emphasizing the autonomy (...) of central banks from politics was mostly an institutional mutation meant to free monetary policies from social pressure and make it totally subordinate to rent creation and financial accumulation. No wonder then that « securitisation » of the public debt closely followed on the prohibition to deficit financing social expenditures. And then the outcome was not a reduction, but an explosion of public debt! And as debt servicing becomes a principal item on the budget, the « excessive costs » of welfare provisions is blamed, and a further break-down of social services is called for. It is in the same vein that price inflation is controlled, but assets inflation and speculative bubbles dominate « developped » economies. Meanwhile, in order to compensate for increasing income inequalities and diminishing welfare benefits, an exacerbated form of « private households deficit spending »has come into its own, as witnessed by the subprime crisis and mounting credit card defaults. So we are moving from an entitlements-based provision of social goods to one based on the pure logic of capital and its cycles. The only way out lies in the resocialisation of currency, profound fiscal reforms, the demise of rent-seeking, and the institution of an universal « basic income ». (shrink)

Globalization is often discussed as if it were a recent phenomenon relating primarily to the development of world financial markets and improvements in information and travel technologies. But globalization is an ancient process, beginning with mercantile and cultural exchanges and facilitated by advances in transportation. In the twentieth century, the results of globalization can be seen in the rise of global capitalism and in the construction of a global economy. Most recently, the process of globalization (...) has moved beyond the world of finance, however, into areas still traditionally thought of as national concerns, such as culture and healthcare. It is no surprise, therefore, that increasingly the challenges the United States is confronting in healthcare, biotechnology, and the environment are simultaneously faced by the international community as a whole. In the wake of the HIV pandemic, growing environmental consciousness, and a series of sensational advances in biotechnology, there is a dawning realization that problems such as improving public health, regulating advances in biotechnology, and achieving sustainable environmental development transcend national borders. In other words, bioethics concerns are global in nature. (shrink)

This article argues that the key crisis that has overtaken today’s global economy is the classical capitalist crisis of over-accumulation. Reaganism and structural adjustment were efforts to overcome this crisis in the 1980s, with little success, followed by globalization in the 1990s. The Clinton administration embraced globalization as the “Grand Strategy” of the United States, its two key prongs being the accelerated integration of markets and production by transnational corporations and the creation of a multilateral system of (...) class='Hi'>global governance, the pillars of which were the World Trade Organization, the International Monetary Fund and the World Bank. The goal of creating a functionally integrated global economy, however, stalled, and the multilateral system began to unravel,thanks among other things to the multiple crises created by the globalization of finance, which was the main trend of the period. In response partly to these crises, partly to increasing competition with traditionally subservient centre economies, and partly to political resistance in the South, Washington under the Bush administration has retreated from the globalist project, adopting a nationalist strategy consisting of disciplining the South through unilateralist military adventures, reverting to methods of primitive accumulation in exploiting the developing world, and making other centre economies bear the brunt of global adjustments necessitated by the crisis of over-accumulation. (shrink)

The financial applications of data technology have enabled the rise of Chinese fintech industries. As part of people's everyday lives, fintech apps have helped companies collect vast amounts of user data for business profit and social good. This paper takes an open-systems approach to study the constructs of this emerging idea of data governance, particularly its operational logic, involved stakeholders, and socio-cultural consequences in the context of fintech industries in China. It asserts that data governance at the company (...) level has been realized through three types of tasks: standardization, configuration, and monetization of big data. These tasks are oriented by the imperative of business innovation which is considered pivotal for the company to survive the competition. An ensemble of internal and external actors joined the governing process, but internal actors hold the stake. The goal of innovation drives the companies to speedily collect data from a wider variety of sources, thus having to establish more sophisticated systems to manage and utilize those data. These complicated systems, however, have urged the government to strengthen regulatory controls alongside the general support of business innovation. This study unveils the performative aspects of big-data-based innovation at fintech firms. It also helps to understand the pathology of the innovation-governance paradox shared in the data economy in the global context. (shrink)

In this Article I argue that the global credit crunch of 2007-2009 is the result of the multifaceted phenomenon of liquidity illusion. Fundamentally, the problem of liquidity illusion derives from the hollow conceptualization of "liquidity" in mainstream financial theory and practice. Represented most recently by the market completion theory, this paradigm has led to a widespread misunderstanding of the dynamics of the relationship between the process of financial innovation and the liquidity of the financial system. In (...) order to unpack the political economy of liquidity illusion from other factors in the leadup to the global credit crunch, this Article builds upon Hyman Minsky’s vision of financial innovation and crisis. Challenging mainstream views of the liquidity-enhancing process of financial innovation, I identify the three pillars of liquidity illusion in the recent 2002-2007 bout of securitization: a) the paradigm of self-regulating finance; b) the role of Ponzi finance; and c) the function of private authority, namely credit rating agencies. (shrink)

The discussion concerning the patenting of academic knowledge is already closed for many people. It has become a type of credo, solemnly intoned at all levels: universities must commercially valorize the knowledge that they generate as extensively as possible.The public means that are reserved for universities can never increase at the same rate as the mounting costs for highly specialized research. So universities, if they want to work at the top level, must increasingly appeal to private resources. Universities are increasingly (...) forced to aim at contract research, sponsorships, commercialised service, the patenting of technical findings, and spin-offs: Cash for knowledge!The pressure for the unfettered commercialisation of academic knowledge does not only come from within the universities. The message also comes from the politicians and those who are committed to economic prosperity. They argue that the commercialisation of intellectual property contributes to new employment because it makes new industrial developments possible and reinforces the competitiveness of ventures. They make it seem that universities form the motor of the knowledge economy.In a country without considerable natural resources and with extremely high personnel costs, innovation is of vital importance. Few convictions are equally as expressly avowed at so many differing forums. The direction of the march seems clear.It was once different. The knowledge that was acquired, deepened, preserved, and transmitted within the universities was not for sale. In fact, its sale could present difficulties because academic knowledge has never answered to the properties of a marketable thing. Use does not deplete knowledge and if you consider it your mission to bring to light knowledge, you do not want to exclude anyone from making use of it.Academic knowledge could thus not be an object of trade, at least so long as nobody was intent on keeping that knowledge secret, and so long as nobody appealed to regulations, whereby one could restrict the legal use of that knowledge. Today neither of these strategies are taboo within academic centres. The patenting of all forms of qualifying knowledge is even encouraged.A patent assumes, on the one hand, that one makes public the knowledge upon which a technique rests, while one, on the other hand, can grant use of that technique exclusively to who one gives a licence, whether or not for a fee. This system is put forth as attractive for all parties. The researchers can keep up with technical details, and the entrepreneur can commercialise the finding. Everyone is happy.Or perhaps not? Are there reasons to be concerned that universities must increasingly submit themselves to the laws of the market? Are there arguments for evaluating academic performance differently than the performance of entrepreneurs? Must one regret that knowledge is commercialised as much as possible?The proponents of the commercial orientation point out that all kinds of new incentives will give a new impetus to the old academic system and will increase the relevance of academic research. They seem to dismiss resistance to the renewal as a nostalgic outpouring of a privileged group that used to have it too good, a group that for too long knew to retreat too safely back into a series of unworldly problems.The opponents of the economically oriented approach fear that the proper character of the academic mission will be lost. They fear that the loss of academic autonomy will make the specific function that a university fulfils within society impossible. In what sense?In our society, there is not one type of sphere, and there is not one valid set of standards, the basis upon which performances are evaluated, functions are judged, or objectives commended. There are strongly divergent spheres and each have their own specific function. The laws that apply in one sphere do not necessarily have authority in another sphere, and the standards that apply in one sort of relationship often have little or no meaning in another relationship.Each sphere recognises its own standards and answers to its own system of exchange for compensation, approval, and recognition. What applies in the sphere of law does not necessarily apply in the sphere of someone’s personal friendships, or is not applicable among family members. What applies in trade does not necessarily apply in the sphere of art.Even more, things go wrong when the autonomy of these spheres is not respected. Within the domain of art, love and friendship, monetary laws are not valid, at least in a healthy situation. That is not to say that the rules that apply within the free market would be wrong or unethical – far from it. It seems self evident that these laws are valid under the condition that they apply in the environment to which they belong, and that one respects these limits.This applies for all spheres. It would be unjust if one would apply the standards of friendship to the spheres of jurisprudence or education. Manifestly, it seems self evident not to define justice as a univocal principle that must be extended with the same consistency in every type of sphere. Rather, it is just to respect the individual character of the normative relationship that applies in the diverse spheres of life, and to prevent one sphere from colonising another.Justice assumes that one prevents the political sphere from stipulating what must be said, or concealed, within the academic sphere. Academics must answer alone to that which is expected of them within the academic sphere. Political pressure may exert no influence on this. Why cannot one say the same about economic pressure?Do we run the risk that the economic sphere will colonise the academic sphere just as the economic sphere previously colonised the sphere of media? What must one imagine in this supposed risk? In what sense should economic laws threaten the academic sphere?In the academic sphere, it is traditional to follow one’s own interests and investigate anything whatsoever without having to ask if this knowledge is useful for something or how the fruits of this research fit within the economic context. The academic search for a better understanding of everything has an unconditional character.The manner in which researchers evaluate the performance of each other seldom has to do with the economic effects that their findings have, but with their reliability, the meticulousness with which they were checked, the scrupulousness with which the sources were collected, and the honesty with which they were communicated. The function of the academic is to collect and refine knowledge, and to bring to light the truth.By doing so, universities offer a type of foot-hold within society. They make it possible that a place exists where one can be obedient to what lets itself appear most truthfully today. Nobody has to fear, at least as long as the autonomy of the academic sphere is respected, that the communication of a particular subject was rhetorically coloured in function of a commercial interest, was applied according to the wishes of the sponsor, was brought into conformity with what was agreed upon by the financiers, or answered to the demands of a patent.It is possible that the influence of the commercial sphere shall be less dramatic than pessimistic academics imagine, but nothing indicates the opposite. Today we are giving a new strategy power, and nobody knows how the magician’s apprentice will bring it off.This forms the context of the questions that we shall try to answer together this number of Ethical Perspectives, and we will restrict our discussion to patents. We are aware that the discussion about patents illuminates just one part of the problems, which have to do with the relation of the worlds of academia and commerce. But there is a reason for confining oneself to an aspect of this problematic relationship. If one were to broaden the scope of inquiry further, one would risk missing the complexity of the subject matter already covered, and be consigned to a far too general and aimless debate.We have brought together a number of specialists, jurists, ethicists, and people with practical experience with the field. They shall introduce us into the problematic, confront us with their points of view, and help to answer our questions: Are there moral limits to the patenting of academic knowledge? Is patenting always the most efficient strategy? Does not perhaps the university sell its soul if it gradually leaves itself subject to the laws of the market?We will begin by asking how in particular a university should proceed with the patenting of knowledge. Modern universities were inspired by the ideals of the Enlightenment, which was characterised by the open distribution of unselfishly pursued knowledge.The privatisation and commercialisation of knowledge would seem to conflict with this traditional vision. Jürgen Mittelstrass and Bart Pattyn provide a theoretical and historical basis for protecting the autonomy of university research from the corrupting aspects of the market economy.But, are there reasons for giving up the traditional outlook? Few or no universities have not chosen to patent discoveries, but how is one to proceed within the framework of the university, once one has obtained patent protection? Can one pursue a policy of using these protected intellectual rights to secure the fruits of knowledge for financially weaker groups, or do circumstances compel the universities to be exclusively driven by market forces?Those are the kinds of questions that Gilles Capart and Geertrui Van Overwalle of the KU Leuven will deal with.Sigrid Sterckx of the university of Ghent will answer the question: can patents be morally justified?Paul Belleflamme of the Université Catholique de Louvan La Neuve writes concerning the economic evidence of patents, and the real effect of incentives. Are there any economic facts that can demonstrate the effectiveness of patenting?Then we give the floor to Christopher May of the University of Lancaster, who looks at the question of how universities have to deal with the global information society. (shrink)

The four books under review form part of a resurgent social science interest in elites as obligatory entry points in understanding changing relations of power and growing inequalities in a post-organized capitalism. All four books demonstrate, in differing but often complementary ways, that in an age of formal meritocracy, rising powers, government outsourcing, weightless information economies, financial deregulation, and increasingly dense digitized networked information and communication systems, elites have changed. Their mobile lives, their ability to feel at ease in (...) almost any situation, and their role as intermediaries connecting different spheres of cultural, economic and political life are defining features of the new, truly global elites. The four books demonstrate the enduring influence of Bourdieu as a theorist of elites and showcase methodological and conceptual innovations to further develop comparative research. (shrink)

In noise we hear the possibility of a signal, indeed different signals, and in the multiplicity of signals we hear noise. With variation and selection comes dynamic evolution, a contingent state, one that could be otherwise. The term ‘polemogenous’ (from the French, polémogène) means that which generates polemics. And polemics are creative. If everyone, every system, were to reason in the same way, there would be silence. Every remark would be redundant, having no informational value. Thus noise is not bad. (...) The essence of finance economics, like all that is social in nature, is a forming of meaning. Whatever cannot be formed meaningfully is not available to the system. This unavailability, as ‘noise’, is the dynamic difference (noise/information) that scintillates the system. Information, like morality, is polemogenous – it stirs contention. Without noise and the possibility of its conversion to information there would be no opportunities to exploit. This paper applies a systems theoretical understanding of observation to conceive of finance economics as the economy’s means of observing its noise and capitalizing on that polemic. Niklas Luhmann’s method is utilized to explicate some ideas on noise by financial economist Fischer Black, who suggests the incomprehensible is computable. This is finance. The fact that logical grounds, absolute deductions, and clear calculations are claimed to be rare in finance is no barrier to understanding it. Rather, this polyphonic and polemogenous information-selection is the ‘ground’ of finance, not as totalizing logic, but as different difference-production for the sake of deriving economic opportunity. (shrink)

This article politicises the discourse of emerging markets in global finance. The black-boxed appearance of credit markets easily obscures the significant amount of subjective evaluation and cultural work that underpins capital flows. This article reveals the colonial, masculine, and racial imagination that informs the articulation of emerging markets as geographies of risk and profit. This brings into view the postcolonial nature of contemporary finance and how colonialism’s regimes of power and knowledge remain crucial for the reproduction of the (...) global political economy. To illustrate this point, the article highlights the sociality of credit practices. Contrary to their mathematical appearance, credit is a relationship with the future, mediated by social imaginations of trust. Focusing on emerging markets as ‘risk-versus-reward’ investments, this article examines the long-term colonial histories embedded in modern investment discourses. The article aims to show the continuing relevance this history plays for emerging market economies in modern financial markets and their political economies. (shrink)

Based on detailed analysis of thousands of confidential World Bank documents, this book demonstrates that the World Bank lies at the centre of the major changes in global education of our time. It outlines the evolution of World Bank lending policies in education, and assesses the policy impact of the Bank's educational projects, looking at how it has: shaped the economic and social policies of many governments, including policies that affect education been an influential proponent of the rapid expansion (...) of formal education systems around the world, financing much of that expansion been instrumental in forging those policies that see education as a precursor to modernisation served as a major purveyor of Western ideas about how education and the economy are, or should be, related. Following on from the success of the first edition, this revised edition covers topical issues of globalisation and looks into the political debate concerning aid to developing countries. It will be of enormous value to those studying, or working in, educational policy in developing countries, international organisations and financial institutions, and aid agencies. (shrink)

In 2002, as part of its urban policy, the city of Kristiansand set up a giant foundation, for the purpose of soliciting projects, talents and strategies for growth in the city’s cultural economy. There was conflict over core values in the promotion of culture and heritage, and discussion on the transformation of power and democracy. The article assesses the challenges facing the foundation “Cultiva”, including institutional ramifications related to régimes of public planning and governance. Cultiva introduces new discourses (...) of culture in urban development, with impacts on both the outside perception of the city and the everyday culture among the inhabitants of Kristiansand. (shrink)

International political economy identifies declining nominal interest rates, securitization, and financial liberalization as drivers of rising housing prices. Despite witnessing these common credit shocks, however, developed economies experienced divergent trends in housing inflation since the 1980s. We offer a comparative political economy explanation of variation in house prices, arguing that by restraining household incomes, wage-setting institutions can blunt financial liberalization’s inflationary impact on housing markets. Employing quantitative analysis and a comparative study of Ireland and the Netherlands, (...) we uncover two findings. First, countries where political coalitions in the export sector held veto powers over those in the nontraded sector in national wage setting realized lower housing inflation. Second, the impact of sectoral coalitions on housing prices in OECD countries is similar to that of financial variables. Our results suggest that the organization of labor politics continues to play an important role in mitigating the destabilizing effects of global finance on developed economies. (shrink)

As the aftershocks of the latest economic meltdown reverberate throughout the world, and people organize to physically occupy the major financial centers of the West, few experts and even fewer governments have dared to consider a world without the powerful markets that brought on the crash. Yet, as François Morin explains in _A World Without Wall Street?_, this is the very step that needs to be taken as quickly as possible to avoid a perpetual future of dehumanizing working conditions, (...) devastated ecosystems, and the submission of public policies to private interests. In this insightful and radical take on global finance, Morin recommends nothing less than a revolutionary reconstruction of the international monetary system. More, he recommends that the laws of societies be reformed so that the power of management may be shared among all of the actors involved in production, not concentrated in the hands of the few. This shift, argues Morin, will transform the monetary system into a common good for all of humanity, rich or poor. With Wall Street at the center of the very power structure that needs to be dismantled, Morin takes broad aim at the purely speculative financial games and arcane instruments by which the global economy and its citizens are held captive. In this very timely and provocative book, Morin bravely offers a way forward—instead of simply triaging a hemorrhaging system, he persuasively asks us to consider a subversive reinvention. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Buddhist-Christian Studies 22 (2002) 31-46 [Access article in PDF] Remedying Globalization and Consumerism: Joining the Inner and Outer Journeys in "Perfect Balance" Judith Simmer-Brown Naropa University One hundred forty years ago, Abraham Lincoln wrote in a prophetic voice: I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country.... Corporations have been enthroned and an era of (...) corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed. 1As the global economy has grown and the economic gap between the poor nations and the rich nations has become enormous, we are realizing Lincoln's nightmare.Globalization has effects more devastating than Lincoln could have imagined. What do we mean by globalization? The president of Nabisco once defined it as "a world of homogeneous consumption." 2 It is a world in which everyone, no matter what latitude or longitude, eats the same food, wears the same clothing, and derives pleasure from the same entertainment. It is the world of McDonald's, Holiday Inn, James Bond movies, Nike shoes, and Coca-Cola. Noam Chomsky, in a lecture at Boston College, described globalization as the "new face of capitalism." 3 It is a network of power centered in corporate interests and financial institutions that controls the flow of capital in order to promote the financial interests of those in power to the detriment of all others. The strategies of globalization have to do with centralizing all power in financial interest, reducing all value to money, and subsuming governments to the interests of the corporations. According to Chomsky, the strategies employed by the transnational network are designed to consolidate this control:Buy the executive branch of the states involved;Own the legislative branch through lobbyists, campaign contributions, and term extensions, or whatever else may work; [End Page 31]Set the conditions in which policy is determined, asserting the power of global capital;Control the doctrine and information systems, especially to invent new needs in order to bolster a culture of fashionable consumption. 4The players in this transnational network reside in the wealthy countries of the world, especially the governments of the G8, and most especially the United States. The global dominance of the International Monetary Fund and the World Trade Organization is funded by U.S. dollars funneled to them by the network. Yet this capital is not really exchange of cash; instead, it is speculation. Chomsky commented: In the last twenty-five years, there has been a huge explosion of financial institutions and financial capital, most of it speculative, with little actual capital in the economy. The flow of capital is $1.5 trillion per day, very little of it productive. Ninety-five percent of it is destructive and speculative. The return time on investments is very rapid; eighty percent has a return time of a week, and often it is less than a day. This daily flow of capital in international markets is twice the total foreign exchange of all states together. This concentrated power is interlinked, determining states' decisions. 5States are no longer autonomous agents; transnational economic interests have taken precedence over national sovereignty, regional power, and military concerns.The impact on developing countries and rural economies is devastating. The global monoculture is eradicating cultural diversity, replacing locally adapted forms of production with industrial systems divorced from natural cycles. Agriculture has become centrally managed and chemically dependent, delivering a narrower range of transportable foods to the international market. This, of course, robs the vitality of local communities and moves a greater proportion of villagers into urban life, creating megalopolises. Because everyone becomes dependent upon the same resources, "globalization creates efficiency for corporations, but it also creates artificial scarcity for consumers, thus heightening competitive pressures.... Globalization means the undermining of the livelihoods and cultural identities of the majority of the world's peoples." 6... (shrink)

As the aftershocks of the latest economic meltdown reverberate throughout the world, and people organize to physically occupy the major financial centers of the West, few experts and even fewer governments have dared to consider a world without the powerful markets that brought on the crash. Yet, as François Morin explains in A World Without Wall Street?, this is the very step that needs to be taken as quickly as possible to avoid a perpetual future of dehumanizing working conditions, (...) devastated ecosystems, and the submission of public policies to private interests. In this insightful and radical take on global finance, Morin recommends nothing less than a revolutionary reconstruction of the international monetary system. More, he recommends that the laws of societies be reformed so that the power of management may be shared among all of the actors involved in production, not concentrated in the hands of the few. This shift, argues Morin, will transform the monetary system into a common good for all of humanity, rich or poor. With Wall Street at the center of the very power structure that needs to be dismantled, Morin takes broad aim at the purely speculative financial games and arcane instruments by which the global economy and its citizens are held captive. In this very timely and provocative book, Morin bravely offers a way forward—instead of simply triaging a hemorrhaging system, he persuasively asks us to consider a subversive reinvention. (shrink)

The relevance of this topic is determined by the processes of “globalization 4.0”, taking place in a new industrial revolution, which brings about both positive and negative consequences in science, medicine, engineering, financial sphere, geopolitical, and cultural dimensions. Digital technologies based on software and social networks become more effective and integrated, causing transformation in all spheres of the global economy. The purpose of the study is to analyze the development of smart technologies in medicine in conditions (...) of “Globalization 4.0”. The objective of the study is social and philosophical analysis of the “globalization 4.0” phenomenon and the revolutions that preceded itin the context of these revolutions the problems of smart technologies in medicine are developing; the study of the interaction problems of society, man and innovations in the sphere of medicine as mutually determined phenomena of human existence that satisfy, enrich and complement each other. The state of theme study that initiated problem solution: the concept of “globalization 4.0” entered the scientific world due to the works of Klaus Schwab, a German economist, founder and president of the World Economic Forum in Davos, the author of the book “The Fourth Industrial Revolution”. Various aspects of this phenomenon that influenced its formation were reflected in the articles and monographs of Ukrainian scholars - V. Voronkova, V. Lukianets, O. Kravchenko, L. Ozadovska, V. Liakh, V. Pazeniuk, C. Raida, and others, as well as a series of Western scholars such as Ken Robinson, Samuel Greengard, Aarathi Prasad, Martin Ford, Kevin Kelli and others. Study methodology. The study methodology includes analysis of new smart technologies phenomena in medicine in the context of “globalization 4.0” that is developing in front of our eyes and is built on the basis of an integrated approach in the context of interdisciplinary character. The article uses such methods of scientific knowledge as analysis and synthesis, measurement, transition from abstract to concrete, synergistic approach, due to which it was possible to analyze complex problems of smart technologies in medicine. The scientific novelty of the study – is the identification of interaction problems between man, society and medicine in the conditions of “globalization 4.0”, which contribute to the formation of a new technological space. Results of the study: the positive and negative effects of “globalization 4.0” for the development of society, medicine and human beings are analyzed; the future scenarios in overcoming of dangerous diseases for humanity are revealed. Conclusion - the feature and fundamental difference of “globalization 4.0” is the synthesis of these technologies and their interaction in physical, digital and biological domains. (shrink)

Trust can be thought of as a three place relation: A trusts B to do X. Trustworthiness has two components: competence (does the trustee have the relevant skills, knowledge and abilities to do X?) and willingness (is the trustee intending or aiming to do X?). This chapter is about the willingness component, and the different motivations that a trustee may have for fulfilling trust. The standard assumption in economics is that agents are self-regarding, maximizing their own consumption of goods and (...) services. This is too restrictive. In particular, people may be concerned with the outcomes of others, and they may be concerned to follow ethical principles. I distinguish weak trustworthiness, which places no restrictions on B’s motivation for doing X, from strong trustworthiness, where the behaviour must have a particular non-selfish motivation, in finance the fiduciary commitment to promote the interests of the truster. I discuss why strong trustworthiness may be more efficient and also normatively preferable to weak. In finance, there is asymmetric information between buyer and seller, which creates a need for trustworthy assessment of products. It also creates an ambiguity about whether the relationship is one of buyer and seller, governed by caveat emptor, or a fiduciary relationship of advisor and client. This means that there are two possible reasons why trust may be breached: because the trustee didn’t realise that the truster framed the relationship as a fiduciary one, or because the trustee did realise but actively sought to take advantage of the trust. Correspondingly, there are two possible types of agent: normal people who are not always self-regarding and who are trust responsive (if they believe that they are being trusted then they are likely to fulfill that trust), and knaves, after Hume’s character who is always motivated by his own private interest. We can increase the trustworthiness of normal people by getting them to re-frame the situation as one of trust, so they will be strongly trustworthy (i.e. change of institutional culture), and by providing non-monetary incentives (the correct choice of incentive will depend on exactly what their non-selfish motivation is). Knaves need sanctions, which can make them weakly trustworthy. However, this is a delicate balance because sanctions can crowd out normative frames. We can also increase the trustworthiness of financiers by making finance less attractive to knaves; changing the mix of types in finance could help support the necessary cultural change. (shrink)

Background: Using the power of Internet, crowdfunding platforms are currently changing the traditional landscape of fundraising. Social media-based IT platforms in particular are bringing the creators of crowdfunding projects closer than ever to potential investors. A large variety of factors function as determinants of individuals' intention to participate in crowdfunding and have an intertwined impact on funding as the ultimate project goal.Objectives: For a better understanding of investor behavior in social media-based crowdfunding projects, this paper covers identifying, analyzing, and classifying (...) general and specific factors of investor motivation, based on the literature in the field.The main focus is the relationship between the affordances provided by social media-based crowdfunding platforms and the psychological determinants of investor motivation in innovative start-up projects.Methods: Using IEEE Explore, Clarivate Web of Science, ScienceDirect, and Scopus, we conducted a systematic review of the existing research on the emerging role of crowdfunding as a disruptive technology in financing the start-up innovative projects. The paper explores the main determinants of investor motivation and aims to streamline the success factors in crowdfunding campaigns.Results: A total of 1,216 publications were identified after searching the aforementioned databases and, upon refining the results, 515 articles were considered for the final sample. After reading the titles and abstracts, the sample was reduced to 78 articles that were read in-depth and synthesized in accordance with the defined research questions. The selected articles were clustered into three main categories: general studies, determinants of investor behavior, and success factors.Conclusions: In the new global economy, crowdfunding platforms have become the nexus between the emerging creators of innovative products and services and the necessary funding sources. This connection is possible via a cumulative collection of contributions from multiple investors recruited from the audience of the selected platform, without time or space constraints. However, the determinants of the investment decision are very different in the case of social media-based crowdfunding platforms compared to determinants in the mainstream environment. This paper surveys these motivators and reveals how platform features can be used to persuade individuals to make a financial contribution toward the success of a project. (shrink)

Many political theorists have turned to the dramatic political events of the post-9/11 world – terrorism, war, and the erosion of civil liberties – for insight into our changing sense of the political. Yet few have examined the economic dimensions of these events or sought to learn what they might tell us about the changing nature of political community today. This article seeks to fill this gap by drawing on the work of Michel Foucault and Georgio Agamben to examine the (...) intimate and changing relationship between the political and the economic in the contemporary world. Now more than ever, there is a particular conception of politics at stake in global efforts to govern economic relations. Global economic institutions like the IMF and World Bank are policing the definition of political community and, in doing so, extending the scope of liberal governmentality. At the same time, the character of their implementation and justification is that of the sovereign exception, as state autonomy must continually be breached through extensive conditionality in order for it to be re-established in the form of a more ‘sound’ political and economic order. This is a sovereign exception with a difference: for the norm that is being established is one that necessarily limits the scope of sovereign power in the interests of market freedom. Paradoxically, while the economy is often the exception to politics as usual, is it an exception that simultaneously enables and constrains the possibility of exercising sovereignty itself? (shrink)

The large number of hungry people in a global economy based on industrialization, privatization, and free trade raises the question of the ethical dimensions of the worsening food crisis in the world in general and in developing countries in particular. Who bears the moral responsibility for the tragic situation in Africa and Asia where people are starving due to poverty? Who is morally responsible for their poverty - the hungry people themselves? the international community? any particular agency or (...) institution? In the context of Article 3 of the UN Declaration of Human Rights, which states that "Everyone has the right to life, liberty and security" (UNDHR, 1948), the ethical question of poverty and hunger becomes a major human concern that should be discussed publicly and resolved by whatever means available. But how can the poor and hungry realize their right to life and security if their very survival is at stake? This paper maintains that responsibility for global poverty at present lies in recent neo-liberal trends in the global economy and with those individuals and organizations who, though small in number, have acquired a disproportionate share of the world's assets and financial resources. That being the case, it is suggested that our monetary and financial policies are in need of drastic changes with regard to global responsibility towards the hungry and impoverished. (shrink)

Science and technology policy is both faced by unprecedented challenges and itself undergoing seismic shifts. First, policy is increasingly demanding of science that it fixes a set of epochal and global crises. On the other hand, practices of scientific research are changing rapidly regarding geographical dispersion, the institutions and identities of those involved and its forms of knowledge production and circulation. Furthermore, these changes are accelerated by the current upheavals in public funding of research, higher education and technology development (...) in the wake of the economic crisis. The paper outlines an agenda for science & technology policy studies in terms of a research programme of a ‘cultural political economy of research and innovation’ (CPERI). First, the implications of the overlapping crises for science policy analysis are discussed. Secondly, three rough constellations of contemporary approaches to science policy are critically compared, namely: a techno-statist Keynesian governance; a neoliberal marketplace of ideas; and co-productionist enabling of democratic debate. CPERI is then introduced, showing how it builds on the strengths of co-production while also specifically targeting two major weaknesses that are of heightened importance in an age of multiple crises, namely neglect of political economy and the concept of power. (shrink)

1.- Introduction: articulating Hayek’s evolutionary argument with his socialist calculation dispute I completely agree with Bruce Caldwell (Caldwell 1988b: 74-75; Caldwell 1988a) that it is precisely within the conceptual and theoretical framework of the debate on the possibility of socialist calculation that Hayek definitively breaks with the standard static equilibrium approach to the market economy and finds out that the central problem of economics is related to the complex question of social coordination. From the Hayekian standpoint, this problem cannot (...) be solved without articulating a genuine theory about the role and the use of knowledge in society.1 This forms the hard core of what I will call the Hayekian theoretical argument. But one can find a much different kind of argument in Hayek, i.e. an evolutionary argument. I will characterize this argument as the Hayekian empirical argument. Hayek first exposed the essential elements of this genuine argument systematically in Law, Legislation and Liberty (see especially Hayek 1973). But in Hayek’s last book (Hayek 1988), socialism is still analyzed from this evolutionary standpoint , and as such socialism is considered by Hayek to be the major problem not only of economic theory but also, more globally, of Western civilization itself. In that book, published the year before the Soviet Union collapsed, Hayek showed himself to be absolutely confident that economic analysis could prove that socialism was not only a social blunder and a political failure, but above all a formidable scientific error. My reading of Hayek’s work is that this evolutionary argument has to be linked to the first one, which is of a more theoretical nature as far as economics is concerned. Indeed, while the evolutionary argument puts forward a completely different conceptual framework tightening the theoretical argument, it first of all displaces the gist of Hayek’s claim against socialism.. (shrink)

This article provides excerpts and highlights from the insights of twenty global leaders, business executives, and sustainability experts who gathered at the Esalen Institute in California for four days in March 2002 to discuss how to best leverage change toward an environmentally sustainable and socially equitable global economy. The conference topic was sparked by the path-breaking book Natural Capitalism, which outlines an expanded vision of capitalism suitable for the environmental era. The natural capitalism model is qualitatively different (...) from industrial era capitalism in that it counts both humanity and ecosystem services as valid sources of capital in addition to the traditionally recognized sources, financial and manufactured. One early adopter of natural capitalism, CEO of the Atlanta -based carpet tiling company, Interface, shared how increased efficiency and greater employee and customer satisfaction have resulted. Although some of the conference participants forecasted that globalization is likely to bring humanity face-to-face with a planetary-wide environmental, financial, and social crisis, the overall message of this gathering was positive. Through the imaginative implementation of evolutionary and biomimicry design models in the cultural, financial, and economic spheres, novel solutions to global problems already are being discovered, and, if such innovative and solutions-oriented design thinking can spread rapidly enough, humanity may be able to ameliorate-or even obviate-the deleterious effects of globalization. (shrink)

We assess the organizational culture in the finance industry in relation to the global financial crisis and consider the potential of cultural change to improve the financial sector. To avoid biases, we build on the person–organization fit literature and develop a novel, indirect method for assessing organizational culture that revolves around relationships between employees’ personal traits and their career success in the industry or organization under study. We analyze personal values concerning the pursuit of private gain (...) versus personal values concerning caring for others and consider whether employees that value self-enhancement more and self-transcendence less enjoy more career success relative to their peers when working in finance than when working in other industries. Results do not reveal any sort of cross-industry differences that would implicate the finance industry’s culture in the financial crisis. Instead, we find the opposite, namely that strong self-enhancement values and weak self-transcendence values go together with less career success in the finance industry compared to other industries. Hence, if anything, the culture in the finance industry does not seem to resonate well with professionals that seek to pursue personal gain at the expense of clients’ welfare. Implication is that cultural change has little potential to improve the financial system. Meanwhile, the method for assessing organizational culture indirectly by analyzing relationships between employees’ traits and their career outcomes has wider applicability, particularly when relying on scores or measures obtained directly from the people concerned is likely to render biased evidence. (shrink)

In this topical book, Boudewijn de Bruin examines the ethical 'blind spots' that lay at the heart of the global financial crisis. He argues that the most important moral problem in finance is not the 'greed is good' culture, but rather the epistemic shortcomings of bankers, clients, rating agencies and regulators. Drawing on insights from economics, psychology and philosophy, de Bruin develops a novel theory of epistemic virtue and applies it to racist and sexist lending practices, subprime mortgages, (...) CEO hubris, the Madoff scandal, professionalism in accountancy and regulatory outsourcing of epistemic responsibility. With its multidisciplinary reach, Ethics and the Global Financial Crisis will appeal to scholars working in philosophy, business ethics, economics, psychology and the sociology of finance. The many concrete examples and case studies mean that this book will also prove useful to policy-makers and regulators. (shrink)

Introduction. The emerging paradigm of socio- cultural development of the Russian Federation’s local communities is conditioned by the trans- formation of production and economic practices based on the concept of a multi-layered economy and multifunctionality emerging under the pressure of globalization on the development of localities. The desire to preserve and maintain socio-cultural traditions, customs, and values is an axiological guideline for developing local communities. The growing social vulnerability of communities creates certain conditions for losing identity, ability (...) for self-identification, and leads to the destruction of socio-cultural identity. The purpose of the study. The article analyzes the problem of socio-cultural evolution when modern- izing production and economic activity generating factors causing the transformation of culture and sociality of local communities, thus determining the processes of integration and disintegration of socioculture. Methods. Sociocultural analysis provides an op- portunity to reveal the main directions of sociocul- tural development of local communities, to explain the essence of interaction, mutual influence and unification of local communities into an interactive socio-cultural space with compatible formations and components. Scientific novelty of the research. The author dis- plays the models of culture and sociality transfor- mation reflecting the processes of modification of the local communities’ lifestyle that determine the transition from the paradigm of sustainable tradi- tional socio-cultural development to the paradigm of innovative transformations. Results. The problem of sociocultural integration and disintegration is associated with globalization processes that generate contradictions of globality and locality. The processes of integration/disin- tegration of the local communities’ sociocultural development are conditioned by the culture and sociality evolution of the constructing model of socio-cultural behavior. The pressure of globaliza- tion plunges the socio-cultural space into a state of diffusion, instability. Historically established traditions, norms, values are transformed into intermediate forms that help to adapt to new living conditions, neutralize the negative consequences of modernization. Territorial sociocultural formations are being formed, within the framework of which attempts are being made to preserve the tradition- al socio-cultural environment. Conclusions. The dynamics of sociocultural pro- cesses determines the emergence of multidirec- tional poles of sociocultural life: from the desire to preserve the traditional socio-cultural environment, to the full acceptance of the meaningful qualities of liberal socio-culture, which destroys the sociocul- tural identity of local communities. (shrink)

Today, dramatically increasing economic inequality, imminent climatological calamity, and a global pandemic now place the timeless debate over capitalism into stark relief. Though many seek to pin the blame on capitalism’s excesses, they would do well to recall the historical record of socialism’s deficiencies, namely, stifling innovation, lumbering inefficiency, and stagnation. Fortunately, our moral psychology affords a middle way between these two extremes. For while economic incentives have a tendency to let our civic and prosocial impulses atrophy from disuse, (...) these can also be rekindled when we are faced with highly compelling reasons to think and act for the greater good of all concerned. The coronavirus pandemic now unfolding might well offer us an opportunity to instill a culture of heightened moral self-awareness spurring a more virtuous form of capitalism. (shrink)

In the era of the knowledge economy, the improvement of national innovation systems is playing a significant role in the global entrepreneurship ecosystem. Entrepreneurs are accelerating international intellectual property applications to be competitive. What remains to be explored is the evolution of international intellectual property network in the globe. With the application of social network analysis and intellectual property application database, the global innovation network structure from 2000 to 2019 is explored. Results showed that in the period (...) 2000–2019, the global innovation network has been expanding rapidly from a sparse network to a dense and complex one. Patent application is unevenly distributed in the globe. Countries such as the US, China, and Canada have been the top countries flowing in, while Japan, Korea, EU, and Switzerland have been the main countries flowing out. Global innovation network shows an obvious “core-periphery” pattern. The distribution pattern presents a quadrilateral structure with the four core regions of “US, Japan, EU, and China” as the apex. This analysis contributes to the visualization of the global layout of intellectual property and the evolution trend by analyzing intellectual property application networks. This can provide important experience reference for enterprises to study the global entrepreneurship ecosystem. (shrink)

We assess the organizational culture in the finance industry in relation to the global financial crisis and consider the potential of cultural change to improve the financial sector. To avoid biases, we build on the person–organization fit literature and develop a novel, indirect method for assessing organizational culture that revolves around relationships between employees’ personal traits and their career success in the industry or organization under study. We analyze personal values concerning the pursuit of private gain (...) versus personal values concerning caring for others and consider whether employees that value self-enhancement more and self-transcendence less enjoy more career success relative to their peers when working in finance than when working in other industries. Results do not reveal any sort of cross-industry differences that would implicate the finance industry’s culture in the financial crisis. Instead, we find the opposite, namely that strong self-enhancement values and weak self-transcendence values go together with less career success in the finance industry compared to other industries. Hence, if anything, the culture in the finance industry does not seem to resonate well with professionals that seek to pursue personal gain at the expense of clients’ welfare. Implication is that cultural change has little potential to improve the financial system. Meanwhile, the method for assessing organizational culture indirectly by analyzing relationships between employees’ traits and their career outcomes has wider applicability, particularly when relying on scores or measures obtained directly from the people concerned is likely to render biased evidence. (shrink)

With the rapid development of society, all walks of life need the support of the Internet of Things, and the financial industry is no exception. This article integrates blockchain technology with supply chain finance and builds a supply chain financial alliance architecture based on blockchain technology and an underlying model of the Ethereum blockchain system suitable for supply chain finance. We innovated new supply chain finance models and operating mechanisms and proposed business scenarios for supply chain finance from (...) the perspective of blockchain. Taking into account the actual operation of the blockchain supply chain financial platform, the principal-agent model and the incentive theory are applied, and the supply chain financial accounts receivable model is taken as an example in the case of complete information and incomplete information. The incentive mechanism between the service provider of the chain supply chain financial platform and the core enterprise promotes the better implementation of blockchain technology and supply chain finance. Based on the existing theoretical research, this paper identifies the key influencing factors of the supply chain’s cross-enterprise incentive mechanism. These influencing factors system includes two dimensions: transaction factors and relationship factors. Transaction factors include resource dependence, uncertainty, and cooperation experience; relationship factors include corporate reputation, trust level, and relationship commitment. Based on the nature of the incentive mechanism, information sharing and revenue sharing are extracted as the measurement dimensions of the supply chain’s cross-enterprise incentive mechanism. On this basis, this article draws on the existing enterprise life cycle division method and constructs a hypothetical model of the influencing factors of the incentive mechanism in the incubation period, the growth period, and the maturity period. Relevant data was collected through questionnaires, and SPSS and AMOS software were used to perform statistical analysis, reliability analysis, exploratory factor analysis, confirmatory factor analysis, and structural equation hypothesis testing on the data. The performance of each influencing factor in different stages of the enterprise’s life cycle and the importance of each influencing factor in the same life cycle stage are obtained. (shrink)

The global development of human embryonic stem cell science and its therapeutic applications are dependent on the nature of its engagement at national and international levels with key cultural values and beliefs concerning the moral status of the early human embryo. This article argues that the political need to reconcile the promise of new health technologies with the cultural costs of scientific advance, dependent in this case on the use of the human embryo, has been met by (...) the evolution of bioethics as a political community, transnational network, and bureaucratic device. Bioethics has become the political means for the creation of a global moral economy where the trading and exchange of values is normalized and legitimated. As a result of such trading, value compromises are produced capable of legitimizing the regulatory policies necessary for maintaining public trust in the new science. (shrink)

This article analyzes the Turkish central bank's “managed uncertainty” policy after the global financial crisis. During 2010–14, the central bank intentionally generated uncertainty around short-term interest rates, using the level of predictability faced by financiers as a tool to buffer the domestic economy from volatile capital flows. How did the central bank implement this unconventional policy? Building on interview data and public texts, the article argues that the surge in capital inflows after the crisis sourced a debt-led, (...) financialized economic growth model and deepened Turkey's reliance on external financing. The central bank could diverge from the financial sector's policy preferences despite Turkey's increased foreign capital dependence because the availability of low-cost, ample, private funding opportunities temporarily expanded policymakers’ room to maneuver. However, operating vis-à-vis an unsustainable growth regime, the central bank had to revert to orthodoxy in 2014 due to declining investor confidence and capital flight. This article contributes to the literature on the structural power of finance by demonstrating how finance derives its structural power from funding financialized growth, not productive investments. It also shows that financial structural power varies based on the source and cost of external financing beyond the degree of foreign capital dependence. (shrink)

This article explores modern interpretations of the phenomenon of glocalization that is based on the idea of the multidimensional, more just and decentralized world. Globalization as a specific model of cultural dynamics is formed on the basis of network forms of social self-organization and electronic forms of communication. It is noted that to date there have been four models describing the correlation between global and local, universal and particular in the culture of "late" modernity. The first is unification's (...) model of the cultural and information space describes the destructive cultural processes in modern social, that is faced a challenges of globalization and experiencing pressures of global media and network communication technologies. In the context of the first model, glocalization appears as the general globalization's trend that is manifested in different variants of the regional world economy. The second model is the differentiation of socio-cultural spaces that is focused on the explication of the causes and factors of negative globalization's manifestations. The third model is hybridization, in which glocalization appears as a process of continuous mixing and hybridization of cultures. The fourth model is deterritorialization. It contains the main cultural manifestation of globalization – the distancing of social relations and social processes from specific loci of physical space. As a result, the article notes five dynamic "landscapes" of globalization are formed: ethnic, technical, financial, media landscape, ideological. Summarizing the views on the essence of the above-mentioned models, the author argues that glocalization is becoming an innovative form of coexistence of a multitude of original peoples, traditions and cultures in the context of globalization. (shrink)

Incentives for improving research productivity at universities prevail in global academia. However, the rationale, methodology, and impact of such incentives and consequent evaluation regimes are in need of scrutinization. This paper explores the influences of financial and career-related publishing incentive schemes on research cultures. It draws on an analysis of 75 interviews with academics, senior university administrators, and journal editors from China, a country that has seen widespread reliance on international publication counts in research evaluation and reward systems. (...) The study focuses on humanities and social sciences as disciplinary sites, which embody distinct characteristics and have experienced the introduction of incentive schemes in China since the early 2000s. Findings reveal tensions between internationalization and indigenization, quality and quantity, integrity and instrumentalism, equity and inequity in Chinese academia. In particular, we argue that a blanket incentive scheme could reinforce a managerial culture in higher education, encourage performative objectification of academics, and jeopardize their agency. We thereby challenge ‘one-size-fits-all’ policymaking, and suggest instead that institutions should have the opportunity to adopt an ethical and ‘human-oriented’ approach when developing their research incentives and evaluation mechanisms. (shrink)

Entrepreneurship plays an indispensable role in the economic development and poverty reduction of emerging economies like Vietnam. The rapid development of technologies during the Fourth Industrial Revolution (Industry 4.0) has a significant impact on business in every field, especially in the innovation-focused area of entrepreneurship. However, the topic of entrepreneurial activities with technology applications in Vietnam is under-researched. In addition, the body of literature regarding entrepreneurial finance tends to focus on advanced economies, while mostly neglecting the contextual differences in developing (...) nations. Therefore, this research contributes to these topics by investigating the main characteristics of a high potential market for entrepreneurs in Vietnam, which is the English language training market (ELTM). It also aims at indicating the impacts of technology on the entrepreneurial firms within this market, with an emphasis on financing sources. To answer the research questions, this study employs a qualitative analysis and conducts 12 in-depth, semi-structured interviews with entrepreneurs and researchers in the field. The key findings in our study highlight the main contributing factors to the growth of the market, both universally and context-specific for a developing nation like Vietnam. It also lists the leaders in each market segment and the industry’s potential profit margin. The results also show that most entrepreneurs in the ELTM utilized private sources of finance rather than external ones, such as bank loans. It again confirms the idea from previous works that even with the rapid development of the economic and technological landscape, entrepreneurial activities in general barely benefit from additional sources of funding. However, it also points out the distinct characteristics of the ELTM that may influence these financing issues; for example, English training services usually collect revenues from customers before delivering their classes. This is of advantage for entrepreneurs in this area and helps significantly reduce the financial barriers. These findings, which are among the first attempts to contribute to a better understanding of entrepreneurial opportunities in the Industry 4.0 in Vietnam, provide valuable insights for policymakers and entrepreneurs, as well as investors. (shrink)

Over the last decade, and culminating in the 2008 global financial meltdown, there has been an erosion of trust and a concomitant rise of distrust in domestic companies, multinational enterprises, and political economies.In response to this attrition, this article presents three arguments. First, we suggest that trust is the “glue” of any viable political economy, and we propose that the stakes of violating public trust are particularly high in light of the asymmetry between trust and distrust. Second, (...) we identify a constellation of key barriers to overcoming distrust that companies face in the current environment: (1) corporate mind-sets that promote a preoccupation with quantification, hierarchical leadership models, and “blind trust” in authority; (2) the anonymity of core stakeholders; (3) the agency of the media as a driver of the political economy; and (4) firm-centric models of stakeholder relationships.Third, we argue that, notwithstanding these challenges, these phenomena are not fatal and can be addressed through a holistic transformation in corporate culture. Such a transformation might include a shift to collaborative leadership models and replacing authority models with responsibility, a “names and faces” approach to stakeholders through cases and stories, more egalitarian communication exchanges with external stakeholders, and a reprioritization of the firm as a vital element among others within a system rather than the central core of a network.We conclude that the value of trust at the individual, institutional, national, and global levels cannot be overstated. Without a reinvigoration of trust in our political economies, at all levels, the future of an economically vibrant planet is indeed bleak. (shrink)

Political Economy and the Novel: A Literary History of 'Homo Economicus' provides a transhistorical account of homo economicus (economic man), demonstrating this figure's significance to economic theory and the Anglo-American novel over a 250-year period. Beginning with Adam Smith's seminal texts - Theory of Moral Sentiments and The Wealth of Nations - and Henry Fielding's A History of Tom Jones, this book combines the methodologies of new historicism and new economic criticism to investigate the evolution of the homo economicus (...) model as it traverses through Ricardian economics and Jane Austen's Sanditon; J. S. Mill and Charles Dickens' engagement with mid-Victorian dualities; Keynesianism and Mrs Dalloway's exploration of post-war consumer impulses; the a/moralistic discourses of Friedrich von Hayek, and Ayn Rand's Atlas Shrugged; and finally the virtual crises of the twenty-first century financial market and Don DeLillo's Cosmopolis. Through its sustained comparative analysis of literary and economic discourses, this book transforms our understanding of the genre of the novel and offers critical new understandings of literary value, cultural capital and the moral foundations of political economy. (shrink)

Innovation is strongly associated with survival and growth of all kind of organizations in a global competitive economy. Moreover, nowadays companies are increasingly questioned on how they deliver innovative solutions to deep-seated problems, such as poverty. Our research aims to understand how Economy of Communion companies respond to this challenge by applying the logic of gratuitousness and giving. This paper examines the altruistic behaviour of EoC leaders and the connection with organizational innovation, necessary for firm’s survival in (...) the long-term. We analyse these connections through a qualitative descriptive case study of three Spanish EoC companies. The findings reveal altruistic behaviours of leaders seeking the Common Good. Innovation derives from the desire to help others, such as employees and customers. Moreover, the findings reveal that a culture of dialogue among employees, managers and the whole organisation enhances risk-taking and, therefore, innovation The paper contributes to our understanding of how EoC companies are able to reconcile innovation with the ideal of altruism, distinctive of the Economy of Communion. We believe that this study opens up a wide range of future research opportunities on the antecedents of an innovative organizational culture. (shrink)