Financialization and Oligarchization

  • Shelly GottfriedEmail author


This chapter focuses on the definitive stage in the formation of an oligarchy: the financialization of the economy beginning in the late 1990s and the early 2000s. The ‘coming of age’ of modern oligarchies and the resulting market concentration were accelerated by the financialization, which originated in the liberalization of the capital markets. This reform process served to transform big business groups into oligarchic structures, often utilizing a pyramidal structure of ownership and control merging between financial and real holdings. This was twinned with extensive influence on decision-making. The chapter analyzes the financialization in the global economy through a closer examination of an illustrative case study—Israel. The way financialization was implemented in Israel is indicative of similar processes in other states, where paradigms of free and competitive market converted into a process generating a concentrated power structure with vast control over the political economy as a whole.


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© The Author(s) 2019

Authors and Affiliations

  1. 1.City Political Economy Research Centre (CITYPERC)City, University of LondonLondonUK
  2. 2.Beit Berl CollegeBeit BerlIsrael

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