Advertisement

Unusual Bedfellows? The IMF, Tackling Inequality and Social Democratic Policy Renewal

  • Ben CliftEmail author
Chapter
Part of the Building a Sustainable Political Economy: SPERI Research & Policy book series (SPERIRP)

Abstract

Methodological nationalism is hard-wired into social democratic thought and practice. The methodological nationalism which characterised the political economy of social democracy as a political movement in the twentieth century is a crucial source of the problems facing social democratic renewal today. This chapter proposes small steps towards social democratic policy thinking beyond the national—focusing on the confluence of interest in tackling inequality between Bretton Woods institutions and European social democracy. It considers the post-crash re-centring of the IMF and the contours of egalitarian policy space. Since the crash, Bretton Woods institutions such as the IMF have taken on the inequality (and jobs) agenda in new and interesting ways. Indeed, they are arguably more visible and vocal campaigners on tackling inequality than many social democratic parties.

References

  1. Archibugi, D. (2004). Cosmopolitan Democracy and Its Critics: A Review. European Journal of International Relations, 10(3), 437–473.CrossRefGoogle Scholar
  2. Archibugi, D., & Held, D. (1995). Cosmopolitan Democracy. Cambridge: Polity.Google Scholar
  3. Babb, S., & Buira, A. (2005). Mission Creep, Mission Push and Discretion: The Case of IMF Conditionality. In A. Buira (Ed.), The IMF and the World Bank at Sixty. London: Anthem Press.Google Scholar
  4. Bailey, D. J., De Waele, J.-M., Fabien, E., & Mathieu, V. (Eds.). (2014). European Social Democracy During the Global Economic Crisis: Renovation or Resignation? Manchester: Manchester University Press.Google Scholar
  5. Ball, L., Furceri, D., Leigh, D., & Loungani, P. (2013). The Distributional Effects of Fiscal Consolidation (IMF Working Paper WP/13/151). Washington, DC: International Monetary Fund.CrossRefGoogle Scholar
  6. Ban, C. (2015a). Austerity Versus Stimulus? Understanding Fiscal Policy Change at the International Monetary Fund Since the Great Recession. Governance, 28(2), 167–183.CrossRefGoogle Scholar
  7. Ban, C. (2015b). From Designers to Doctrinaires: Staff Research and Fiscal Policy Change at the IMF. In G. Morgan, S. Quack, & P. Hirsch (Eds.), Elites on Trial. Bingley: Emerald Group Publishing Limited.CrossRefGoogle Scholar
  8. Berg, A., & Ostry, J. D. (2011). Inequality and Unsustainable Growth: Two Sides of the Same Coin? (IMF Staff Discussion Note SDN/11/08). Washington, DC: International Monetary Fund.Google Scholar
  9. Best, J. (2003). From the Top-Down: The New Financial Architecture and the Re-embedding of Global Finance. New Political Economy, 8(3), 363–384.CrossRefGoogle Scholar
  10. Best, J. (2005). The Limits of Transparency: Ambiguity and the History of International Finance. Ithaca: Cornell University Press.Google Scholar
  11. Blyth, M. (2003). The Political Power of Financial Ideas. In J. Kirshner (Ed.), Monetary Orders: Ambiguous Economics, Ubiquitous Politics. Ithaca, NY: Cornell University Press.Google Scholar
  12. Boughton, J. M. (2001). Silent Revolution: The International Monetary Fund 1979–1989. Washington, DC: International Monetary Fund.Google Scholar
  13. Brassett, J. (2010). Cosmopolitanism and Global Financial Reform: A Pragmatic Approach to the Tobin Tax. Abington: Routledge.CrossRefGoogle Scholar
  14. Brassett, J., & Bulley, D. (2007). Ethics in World Politics: Cosmopolitanism and Beyond? International Politics, 44(1), 1–18.CrossRefGoogle Scholar
  15. Chopra, A. (2014). The IMF Was Right to Criticize UK Fiscal Policy. Peterson Institute for International Economics Realtime Economics Issues Watch blog. Available at: https://piie.com/blogs/realtime-economic-issues-watch/imf-was-right-criticize-ukfiscal-policy.
  16. Chwieroth, J. M. (2010). Capital Ideas: The IMF and the Rise of Financial Liberalization. Princeton: Princeton University Press.Google Scholar
  17. Clift, B. (2003a). French Socialism in a Global Era. London: Continuum.Google Scholar
  18. Clift, B. (2003b). The Changing Political Economy of France: Dirigisme Under Duress. In M. Ryner & A. Cafruny (Eds.), A Ruined Fortress? Neo-liberal Hegemony and Transformation Europe. New York: Rowman & Littlefield.Google Scholar
  19. Clift, B. (2011). The Frozen Pendulum: The Ideological, Organisational and Electoral Travails of French Socialism. Renewal: A Journal of Labour Politics, 19(1), 16.Google Scholar
  20. Clift, B. (2018). The IMF and the Politics of Austerity in the Wake of the Global Financial Crisis. Oxford: Oxford University Press.Google Scholar
  21. Clift, B., & McDaniel, S. (2017). Is this Crisis of French Socialism Different? Hollande, the Rise of Macron, and the Reconfiguration of the Left in the 2017 Presidential and Parliamentary Elections. Modern & Contemporary France, 25(4), 403–415.CrossRefGoogle Scholar
  22. Dahrendorf, R. (1990). Reflections on the Revolution in Europe. Piscataway: Transaction Publishers. Google Scholar
  23. Davidson, P. (2007). Interpreting Keynes for the 21st Century: Volume 4: The Collected Writings of Paul Davidson. Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
  24. Ferrera, M. (2005). The Boundaries of Welfare. Oxford: Oxford University Press.CrossRefGoogle Scholar
  25. Ferrera, M. (2009). Solidarity Beyond the Nation State? Reflections on the European Experience. In O. Cramme & P. Diamond (Eds.), Social Justice in the Global Age. Cambridge: Polity.Google Scholar
  26. Furceri, D., & Loungani, P. (2013). Who Let the Gini Out? Finance & Development, 50(4), 25–27.Google Scholar
  27. Gamble, A. (1990). Britain in Decline. Basingstoke: Macmillan.CrossRefGoogle Scholar
  28. Gamble, A. (2009). Moving Beyond the National: The Challenges for Social Democracy in a Global World. In O. Cramme & P. Diamond (Eds.), Social Justice in the Global Age. Cambridge: Polity.Google Scholar
  29. Ghosh, A., Kim, J., Ostry, J., Qureshi, M., & Mendoza, E. (2013). Fiscal Fatigue, Fiscal Space and Debt Sustainability in Advanced Economies. Economic Journal, 123(566), 4–30.CrossRefGoogle Scholar
  30. Giddens, A. (1994). Beyond Left and Right: The Future of Radical Politics. Stanford: Stanford University Press.Google Scholar
  31. Glyn, A. (Ed.). (2001). Social Democracy in Neoliberal Times: The Left and Economic Policy Since 1980. Oxford: Oxford University Press.Google Scholar
  32. Glyn, A. (2006). Capitalism Unleashed: Finance, Globalization, and Welfare. Oxford: Oxford University Press.Google Scholar
  33. Grabel, I. (2003). Ideology, Power and the Rise of Independent Monetary Institutions in Emerging Economies. In J. Kirshner (Ed.), Monetary Orders: Ambiguous Economics, Ubiquitous Politics. Ithaca, NY: Cornell University Press.Google Scholar
  34. Grabel, I. (2011). Not Your Grandfather’s IMF: Global Crisis, ‘Productive Incoherence’ and Developmental Policy Space. Cambridge Journal of Economics, 35(5), 805–830.CrossRefGoogle Scholar
  35. Gray, J. (1996). After Social Democracy (p. 47). London: Demos.Google Scholar
  36. Gray, J. (1998). False Dawn. London: Granta.Google Scholar
  37. Hacker, J. S., & Pierson, P. (2010). Winner-Take-All Politics: How Washington Made the Rich Richer—And Turned Its Back on the Middle Class. New York: Simon and Schuster.Google Scholar
  38. Hall, P. (1986). Governing the Economy. Cambridge: Polity.Google Scholar
  39. Hayward, J. (2007). Fragmented France: Two Centuries of Disputed Identity. Oxford: Oxford University Press.CrossRefGoogle Scholar
  40. Heller, M. P. S. (2005). Understanding Fiscal Space (IMF Policy Discussion Paper PDP/05/4). Washington, DC: International Monetary Fund.Google Scholar
  41. Hirst, P. (1999). Has Globalisation Killed Social Democracy? The Political Quarterly, 70(s1), 84–96.CrossRefGoogle Scholar
  42. IEO. (2011). IMF Performance in the Run-Up to the Financial and Economic Crisis: IMF Surveillance in 2004–07. Washington, DC: International Monetary Fund. Available at: http://www.ieo-imf.org/ieo/files/issuespapers/Crisis_Final_Issues_Paper_Web.pdf.
  43. IEO. (2016). The IMF and the Crises in Greece, Ireland and Portugal. Washington, DC: International Monetary Fund.Google Scholar
  44. IMF. (2010, October). World Economic Outlook. Washington, DC: International Monetary Fund.Google Scholar
  45. IMF. (2011). 2011 Triennial Surveillance Review—Overview Paper (approved by SPR). Washington, DC: International Monetary Fund.Google Scholar
  46. IMF. (2013). Key Aspects of Macroprudential Policy. Washington DC: International Monetary Fund.Google Scholar
  47. IMF. (2014, October). World Economic Outlook. Washington, DC: International Monetary Fund.Google Scholar
  48. Jospin, L. (1995). Propositions pour la France 1995–2000. Paris: PS Presse.Google Scholar
  49. Jospin, L. (1999). Modern Socialism. London: Fabian Society.Google Scholar
  50. Jospin, L. (2001). My Vision of Europe and Globalization. Cambridge: Polity.Google Scholar
  51. Keynes, J. M. (1980). The Collected Writings of J.M. Keynes: Vol. 25 Activities 1940–44: Shaping the Postwar World: The Clearing Union (D. Moggridge, Ed.). Cambridge: Cambridge University Press.Google Scholar
  52. Lagarde, C. (2012, June 8). Completing the Task: Financial Sector Reform for Stability and Growth. Speech hosted by the Süddeutsche Zeitung, New York. https://www.imf.org/en/News/Articles/2015/09/28/04/53/sp060812a.
  53. Lagarde, C. (2014, May 27). Economic Inclusion and Financial Integrity—An Address to the Conference on Inclusive Capitalism. London. Available at: https://www.imf.org/external/np/speeches/2014/052714.htm.
  54. Lipton, D. (2013). David Lipton’s Opening Remarks at Fiscal Forum: The Evolving Role of Fiscal Policy. International Monetary Fund. Available at: http://www.imf.org/external/np/seminars/eng/2013/fiscal/. Accessed May 2, 2017.
  55. Moschella, M. (2011). Lagged Learning and the Response to Equilibrium Shock: The Global Financial Crisis and Imf Surveillance. Journal of Public Policy, 31(2), 121–141.CrossRefGoogle Scholar
  56. Ostry, M. J. D., Berg, M. A., & Tsangarides, M. C. G. (2014). Redistribution, Inequality, and Growth (IMF Staff Discussion Note SDN/14/02). Washington, DC: International Monetary Fund.CrossRefGoogle Scholar
  57. Ostry, J. D., Ghosh, A. R., Kim, J. I., & Qureshi, M. S. (2010). Fiscal Space (IMF Staff Position Note SPN/10/11). Washington, DC: International Monetary Fund.CrossRefGoogle Scholar
  58. Ostry, J. D., Loungani, P., & Furceri, D. (2016). Neoliberalism: Oversold. Finance & Development, 53(2), 38–41.Google Scholar
  59. Parti Socialiste. (2010a). Texte de la Convention nationale Pour unenouvelle donne internationale et européenne adopté à l’unanimité le 9 octobre 2010. Paris, PS Presse. http://www.parti-socialiste.fr/static/8739/convention-internationale-texte-definitif-avec-tous-les-amendements.pdf?issuusl=ignore.
  60. Parti Socialiste. (2010b). Convention égalité réelle Texte présenté lors de la convention nationale Samedi 11 décembre 2010. Paris, PS Presse. http://www.parti-socialiste.fr/static/9373/samedi-suivez-la-convention-egalite-reelle-en-direct-73415.pdf?issuusl=ignore.
  61. Peet, R. (2009). Unholy Trinity: The IMF, World Bank and WTO. London: Zed Books.Google Scholar
  62. Pierson, C. (1995). Socialism After Communism. Cambridge: Polity.Google Scholar
  63. Pierson, C. (2001). Hard Choices: Social Democracy in the 21st Century. Cambridge: Polity.Google Scholar
  64. Piketty, T. (2014). Capital in the 21st Century. Cambridge, MA: Harvard University Press.Google Scholar
  65. Piketty, T. (2015). Putting Distribution Back at the Center of Economics: Reflections on Capital in the Twenty-First Century. Journal of Economic Perspectives, 29(1), 67–88.CrossRefGoogle Scholar
  66. Polanyi, K. ([1944] 2001). The Great Transformation: The Political and Economic Origins of Our Time. (2nd Beacon Paperback). Boston, MA: Beacon Press.Google Scholar
  67. Przeworski, A. (1985). Capitalism and Social Democracy. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  68. Ruggie, J. (1982). International Regimes, Transactions and Change: Embedded Liberalism in the Post-war Economic Order. International Organization, 36(2), 379–415.CrossRefGoogle Scholar
  69. Ruggie, J. (1983). International Regimes, Transactions and Change: Embedded Liberalism in the Postwar Economic Order. In S. Krasner (Ed.), International Regimes. Ithaca, NY: Cornell University Press.Google Scholar
  70. Soederberg, S. (2004). The Politics of the New International Financial Architecture: Reimposing Neoliberal Domination in the Global South. London: Zed Books.Google Scholar
  71. Smith, W., & Brassett, J. (2008). Deliberation and Global Governance: Liberal, Cosmopolitan, and Critical Perspectives. Ethics & International Affairs, 22(1), 69–92.CrossRefGoogle Scholar
  72. Stiglitz, J. E. (2002). Globalization and Its Discontents. New York: W. W. Norton.Google Scholar
  73. Stiglitz, J. E. (2012). The Price of Inequality: How Today’s Divided Society Endangers Our Future. New York: W. W. Norton.Google Scholar
  74. Stiglitz, J. E. (2015). The Origins of Inequality, and Policies to Contain It. National Tax Journal, 68(2), 425.CrossRefGoogle Scholar
  75. Thirkell-White, B. (2005). The IMF and the Politics of Financial Globalization. Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
  76. Varoufakis, Y. (2017). Adults in the Room: My Battle with Europe’s Deep Establishment. London: Bodley Head.Google Scholar
  77. Vasilopoulou, S., Halikiopoulou, D., & Exadaktylos, T. (2014). Greece in Crisis: Austerity, Populism and the Politics of Blame. JCMS: Journal of Common Market Studies, 52(2), 388–402.Google Scholar
  78. Wade, R. H. (2001). Capital and Revenge: the IMF and Ethiopia. Challenge, 44(5), 67–75.CrossRefGoogle Scholar
  79. Wade, R. H. (2003a). The Invisible Hand of the American Empire. Ethics & International Affairs, 17(2), 77–88.CrossRefGoogle Scholar
  80. Wade, R. H. (2003b). What Strategies are Viable for Developing Countries Today? The World Trade Organization and the Shrinking of ‘Development Space’. Review of International Political Economy, 10(4), 621–644.CrossRefGoogle Scholar
  81. Webb, R. (2000). The Influence of International Financial Institutions on ISI. In E. Cardenas, J. Ocampo, & R. Thorp (Eds.), An Economic History of Twentieth-Century Latin America: Volume I: The Export Age. New York: Springer.Google Scholar
  82. Woo, J., Bova, M. E., Kinda, M. T., & Zhang, M. Y. S. (2013). Distributional Consequences of Fiscal Consolidation and the Role of Fiscal Policy: What Do the Data Say? (IMF Working Paper 13/195). Washington, DC: Institute for International Economics.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of Politics and International StudiesUniversity of WarwickCoventryUK

Personalised recommendations