The global financial crisis, triggered by the subprime mortgage crisis in the USA, raises an important issue—namely, private production without the control of private property. The credit system has concentrated increasingly large social assets into the hands of financial institutions governed by a few people. This paper argues that the use of social capital for private production has played a key role in causing the subprime mortgage crisis. The credit and banking systems have abolished the private nature (...) of capital and have instead provided a basis for organizing and implementing social production. However, these systems have not “overcome the antithesis between the character of wealth as social and as private.” Therefore, it behooves us to explore what we can learn from the US financial crisis concerning how best to protect social interests, i.e., how to make the social capital produce for society. (shrink)

Adding to contemporary debates about the relationship between financialization and neoliberalism, this article investigates their entanglement at the level of subjectivity. Primarily, the article argues that financialization and neoliberalism are converging to produce a new form of subjectivity, post-profit homo œconomicus, an always indebted but credit-seeking enterprise. The value of this approach, the article demonstrates, is that it provides theoretical tools capable of grasping the differential production of subjectivity across the uneven and unequal striations of contemporary neoliberal society, from (...) precarious workers of the gig economy to financial sector elites. The article examines two figures who have become central to public and academic debates about neoliberalism and financialization – the low-waged, precarious worker and the indebted student – to consider how neoliberal subjectivity is produced and distributed unevenly. It concludes that within these fragmentary socioeconomic positions are different instantiations of always indebted but credit-seeking human capital. (shrink)

Contemporary general equilibrium theory is characteristically short-run, separated from monetary aspects of the economy, and as such does not deal with long-run problems such as capital accumulation, innovation, and the historical movement of the economy. These phenomena are discussed by growth theory, which assumes a given or shifting production function, and in turn cannot therefore deal with the fundamental problem of growth, namely how the production function is derived. Thus traditional theories have a common weakness in that they divorce (...) real economic growth from the activities of the financial sector. This book provides a much-needed synthesis of growth theory and monetary theory. Professor Morishima draws on the work of Schumpeter, Keynes and the pre-war neoclassical economists to formulate a capital-theoretic general equilibrium theory. (shrink)

Against the background of the contemporary debate about financialisation, the paper conceptualises the capitalist labour economy as fundamentally a monetary system. It argues that money is not a capitalist means of organising its labour economy but that it is rather a capitalist end. The argument examines and finds wanting conceptions of money in political economy, including Keynesianism and neoliberalism, and argues that the debate about financialisation is fundamentally based on the propositions of political economy. It holds that Marx’s critique of (...) political economy conceives of money as the form of value and expounds money-making as the purpose of the capital labour economy. Thus, the labour theory of value is fundamentally a monetary theory of value, labour is the means of valorisation, and that is, of money in process, and as such capital. Making money out of money is capital as its most rational. In the form of credit, money posits wealth as a claim on future surplus value. (shrink)

This paper contends that Marx develops in Volume III of Capital an incisive conceptual framework in which excessive credit creation, indebtedness and speculation play a critical and growing role in the reproduction of social capital on an extended basis; however, given the decentralised and anarchic nature of capitalist production, the credit system does so in a highly erratic and contradictory manner which only postpones the inevitable day of reckoning. The paper also highlights Marx's relatively neglected but (...) highly important analysis of the separation of ownership from management in the advanced capitalism of his day, England, and its modern-day implications for excessive risk-taking and debt-fuelled speculation up until the eve of the crash. More importantly, the paper argues that in Volumes II and III, Marx implicitly connected the expanding role of credit (which he associated with the development of capitalism) to a significant reduction in the turnover period of capital, thereby boosting the rate of surplus-value, and countering in a highly erratic and contradictory manner, the fall in the rate of profit. The growing role of credit has been relatively ignored in the Marxian literature as an important counteracting factor to the law of the declining rate of profit. It is not mentioned at all by Marx in his famous Chapter XIV, Vol. III of Capital where he discusses other important counteracting forces to the falling rate of profit, nor by Engels (in this particular context) who edited both Volumes II and III. (shrink)

In 1948, when the State of Israel was founded, 125,000 people were members of credit cooperative societies, which provided over 20 percent of all market financing. For several years this number continued to rise, reaching a total of 250,000 members in more than 100 credit cooperative societies. Credit associations — part of the thriving cooperative movement of early Zionism — symbolized the attempt to create a new and just Jewish society by fusing socialist and capitalist ideals. From (...) the mid-1950s, however, in a rapid process of centralization of Israel’s capital market and financial institutions, almost all credit associations were absorbed into Israel’s commercial banks and dissolved. Today, Israel’s two largest banks control over 63 percent of credit provision, and 90 percent of credit is provided to less than 1 percent of borrowers. The official policy of the Bank of Israel is to rule out the establishment of credit associations, credit unions or other non-bank financial institutions. In the light of current renewed interest in "social businesses," i.e., innovative business models designed to achieve desired social outcomes, this Article traces the waning of credit associations in Israel, and the role law has played in that process. Their disappearance from the capital market marked not only a change in economic policy, but also the final abandonment of the ideals which underlay the provision of cooperative financial services: mutuality, partnership and solidarity. (shrink)

ABSTRACT By means of the high ratings that they awarded to subprime mortgage‐backed bonds, the three major rating agencies—Moody's, Standard & Poor's, and Fitch—played a central role in the current financial crisis. Without these ratings, it is doubtful that subprime mortgages would have been issued in such huge amounts, since a major reason for the subprime lending boom was investor demand for high‐rated bonds—much of it generated by regulations that made such bonds mandatory for large institutional investors. And it is (...) even less likely that such bonds would have become concentrated on the balance sheets of the banks, for which they were rewarded by capital regulations that tilted toward high‐rated securities. Why, then, were the agencies excessively optimistic in their ratings of subprime mortgage‐backed securities? A combination of their fee structure, the complexity of the bonds that they were rating, insufficient historical data, some carelessness, and market pressures proved to be a potent brew. This combination was enabled, however, by seven decades of financial regulation that, beginning in the 1930s, had conferred the force of law upon these agencies' judgments about the creditworthiness of bonds and that, since 1975, had protected the three agencies from competition. (shrink)

The importance of overt levers of business political influence, notably campaign donations and lobbying, has been overemphasized. Using executive branch policymaking during the Obama administration as a case study, this article shows that those paths of influence are often not the most important. It places special emphasis on the structural power that large banks and corporations wield by virtue of their control over the flow of capital and the consequent effects on employment levels, credit availability, prices, and tax (...) collection. At times, business disinvestment, combined with demands for government policy reforms, constitutes a conscious “capital strike,” which has the potential to shape political appointments, legislation, and policy implementation. At other times, the threat of disinvestment, the hint of a drop in “business confidence,” or rhetoric about job creation is sufficient to achieve those objectives. The present analysis has important implications for our understanding of political power and social change in capitalist economies. (shrink)

This essay is a think piece that takes a labor and capital perspective on science to discuss two chief concepts: credit and exploitation. Credit, as the symbolic currency of science, has been central to how we understand the moral workings of science in the twentieth century. But our lived experience of changes in the political economy of science also alerts us to the notion that credit may not be applicable to a robust analysis of science in (...) the past and in the present. Scientific exploitation, the evidence of which usually prompts an effort to redistribute credit, may offer only a partial picture of the labor structure of science. Self-exploitation, an implicit understanding of how scientists may approach their work, has never been fully articulated but is nevertheless a useful descriptive notion. (shrink)

Israel Kirzner is to be credited for clarifying and developing the theory of capital and interest set out by Ludwig von Mises and for articulating and defending the pure time preference theory of interest. A revisiting of Mises and his critics suggests that the pure time preference theory is best formulated in terms of economic actions and then applied to the anticipated consequences of those actions. Differences between the Misesian and Knightian reckonings of time preference are to be understood (...) in terms of the contrasting conceptions of a zero time preference. Parallels between the time preference theory of interest and a leisure preference theory of wages are explored. Austrian economics is deemed healthy despite lingering puzzles about its theories of interest and wages.On doit au Professeur Kirzner la clarification et le développement de la théorie du capital et de l’intérêt dans la lignée de Ludwig von Mises et l’articulation et la défense de la théorie de l’intérêt comme étant la préférence pure pour le temps. Une relecture des travaux de Mises et de ses critiques suggère qu la théorie de la préférence pure pour le temps est mieux formulée en termes d’actions économiques et ensuite appliquée aux conséquences anticipées de ces mêmes actions. Les différences entre les acceptions Misessiennes et Knigtienne de la préférence pour le temps doivent être comprises en termes de conceptions différentes d’une préférence nulle pour le temps. Les rapprochements entre la théorie de l’intérêt comme préférence pour le temps et la théorie des salaires comme préférence pour les loisirs sont explorés. L’économie autrichienne est jugée saine en dépit des énigmes persistantes qui entourent ses théories de l’intérêt et des salaires. (shrink)

Credit unions are one of the most widely established corporate entities in the financial systems of most of the world’s nations. Their historical support to the financing needs of small savers, as well as their assimilation into the framework of contemporary microfinance, gives them an important specific weight in the economic-financial literature of our time. In this sense, our research has carried out a systematic review of the main contributions focused on the area of credit unions over the (...) period 1936–2020, using Scopus and WoS as bibliographic databases. In summary, the main countries, journals, authors, articles, and the main collaborative research networks at the level of authors or countries have been analyzed. In the same way, the implementation of strategic diagrams based on Callon’s procedure has facilitated the classification of the most important terms linked to financial cooperativism, which has served to detect future lines of research related to the terms : asymmetric-information, capital-provision, cooperative-principles, customer-reduction, gender-issues, neoinstitutionalism, poverty, and urban-economy. (shrink)

The author thematizes the operation of the political market of attention that is propelled by the willingness of citizens to credit populist leaders with their digital political labour. Mutual, nevertheless unequal, exchange of attention leads to the formation of a spiral of attention. Its expansive character is sustained by the strategically subsidized recognition of populist leaders. Accumulated attention, i. e. attention capital, is the resource that is used to maintain populist networked public spheres, while citizens are proletarianized: they (...) are invited to apply their labour power to distributing political ideas but are pevented from evaluating the influence of competing public actors. (shrink)

Recent research suggests that many microfinance institutions increasingly focus on financial performance at the expense of the social component of their dual objectives. Existing studies typically assume that capital providers and managers mainly drive this so-called mission drift. In this study, we investigate whether ‘personal mission drift’ at the credit officer level can further explain the reduced emphasis on poorer clients among microfinance institutions. We present both qualitative and quantitative evidence that more experienced credit officers tend to (...) serve fewer vulnerable clients. Specifically, we show that all else being equal, credit officer experience is negatively correlated with the provision of small loans, loans to young clients, and loans to clients with disabilities. Our qualitative analysis suggests that perceived client risk and preferences for increased time efficiency mainly drive more experienced credit officers’ relative neglect of more vulnerable clients. This drift appears to be reinforced by the industry’s incentive schemes. Therefore, credit officer incentives and training should be designed to prevent this mission drift, which is observed at the microfinance institution level but is actually initiated at the credit officer level. (shrink)

The Urbanization of Capital. This article analyses the creation of capitalist urban space during the socalled « Keynesian », or « Fordist », epoch and the transition from this epoch to the era of so-called « post-Fordism » which we are currently experiencing. The production of a spatial fix which is specific to each phase of development is, for capitalism, both a means of managing its internal contradictions, thus ensuring its survival, and of displacing these contradictions onto a new (...) terrain. This terrain is the result notably of the tensions and constraints inherent in the spatial fix inherited from the previous period and remodelled by the constant transformation of the mode of production. The Keynesian urban space, constituted by cities oriented towards demand, and moulded by the joint intervention of state planning and credit-based finance, is succeeded by the post-Fordist city, which is reshaped by intensified interurban and interregional competition, and by the exacerbation of the polarisation of, and separation between, social classes. The reproduction of social relations by and through space poses new problems, at the same time that it opens new possibilities, for class struggles and alternative socialist projects. (shrink)

This paper evaluates the economic assumptions of economic theory via an examination of the capitalist transformation of creditor–debtor relations in the 18th century. This transformation enabled masses of people to obtain credit without moral opprobrium or social subordination. Classical 18th century economics had the ethical concepts to appreciate these facts. Ironically, contemporary economic theory cannot. I trace this fault to its abstract representations of freedom, efficiency, and markets. The virtues of capitalism lie in the concrete social relations and social (...) meanings through which capital and commodities are exchanged. Contrary to laissez faire capitalism, the conditions for sustaining these concrete capitalist formations require limits on freedom of contract and the scope of private property rights. (shrink)

In Capital and Ideology, Thomas Piketty poses the intriguing thesis that ideology, or ideas about how society should be governed, is a powerful determinant for how society will be governed-as long as we take advantage of historical switch points. In this review essay I challenge this thesis by pointing out that many powerful ideas have run aground because of countervailing institutional arrangements. Oftentimes, they are leftovers from earlier times that precede the change and are now strategically employed for reconstituting (...) private wealth. Clearly, ideology and institutions are deeply intertwined. I credit Piketty for putting ideology on the map of institutionalists in history, political sciences, sociology, and law. I therefore call for more research on the interaction of ideas and institutions. (shrink)

In his text, the author develops the notion of trust as a condition for the possibility of any relational anthropology. Referring to the root associated with trust as the foundation of the relationship, he takes a position in the dispute about the primal nature of trust or perfidy; believes that in the abusive practices of credit and debt there is a reversal of the meaning of what is a necessary element of human life, relationships based on trust. Perfidy is (...) possible precisely because there is trust. On the basis of such concepts, he develops an analysis of events in the global economy at the turn of the 20th and 21th century, especially the financialization, based on the ideas of such authors as Arrighi, Bourdieu, Eichegreen, Pobłocki and Stiegler but also Lacan. (shrink)

Especially during the brief post-revolutionary period before the rise of Stalinism, certain thinkers in the Soviet milieu offered some attention-worthy reflections regarding Freud’s body of work. In particular, Luria and Vygotsky put forward thoughtful Marxism-informed assessments of the metapsychology and methodology of psychoanalysis. And strong cross-resonances are audible between these Soviet thinkers’ reflections and the early stages of Western Marxism’s rapprochement with Freud, starting in texts by Reich and Fenichel and continuing with the Frankfurt School, of whose members Marcuse arguably (...) furnishes the most sophisticated and sustained engagement with analysis. In this essay, I argue that Luria, Vygotsky, Reich, Fenichel, and Marcuse share in common a fundamentally correct insight according to which the theory of drive (Trieb) is a load-bearing pillar for any psychoanalytic Marxism. Moreover, not only is the Freudian metapsychological concept of drive applicable to and productive of Marxism and its form(s) of materialism—echoing Lacan’s claim that Marx invented the symptom, I contend, here and elsewhere, that Marx’s mature critique of political economy already anticipates the later analytic idea of Trieb. In fact, I would go so far as to credit Marx with (also) being the inventor of the analytic drive (albeit avant la lettre). (shrink)

Since ancient times the practices and ethics of bankers and banking in general have undergone a great deal of criticism. While lending is motivated by profit, and while households are not explicitly coerced into borrowing money, the justice of a system which exploits workers and at the same time encourages them to borrow money in order to maintain a certain standard of living can be viewed as sometimes unfair and perhaps immoral. The value of goods, according to St. Thomas Aquinas (...) and Karl Marx, should mostly reflect the value of labor embodied in them, and for that reason, labor should be compensated fully for its work. For these reasons, Aquinas and Marxian economists offer somewhat similar and at the same time different views on both the labor theory of value as well as on the morality of certain banking practices. If credit and the banking system also bring about crisis and the greater concentration and centralization of capital, then the morality of these outcomes also needs to be examined. (shrink)

This article documents the response of cooperative institutions that were required to adhere to new capital adequacy regulations traditionally geared for profit-maximising organisations. Using data from the Australian credit union industry, we demonstrate that the cooperative philosophy and internal corporate governance structure of cooperatives will lead management to increase capital adequacy ratios through the application of accounting window dressing techniques. This is opposite to the intended purpose of template regulation aimed at efficiently increasing operating margins and lowering (...) risk. Our results raise several debatable issues regarding the ethics of accounting management and the imposition of one-shoe-fits-all external regulation. (shrink)

This article focuses on the collective leadership of the civilian authorities of the British Channel Islands during the Nazi Occupation (1940-1945), and draws lessons from their ethical performance. The first part of the article determines that local officials in the Channel Islands disposed of operative margins, but that - in the interest of collaboration - these were not always used to the full. This article then details institutional factors that contributed to commonalities between the two bailiwicks of Jersey and Guernsey, (...) as they faced up to occupation. The second part of this article follows up with the dissimilarities, one of which is that Guernsey travelled further down the road to collaboration than her sister island. Social capital depletion is credited as being responsible for this; and this situation was further compounded by lack of 'ethical leadership'. The final part explores the relationship between social capital and leadership ethics, suggesting that virtue serves as a catalyst for social capital stock in crisis situations. The core research outcome is that ethical leadership produces tangible efficiency and moral effects in situations of extreme duress (such as Nazi Occupation) where one could have expected very little or no scope for such a thing. This is an uplifting message that runs counter to scepticism as to the practical value of business ethics. Implications are drawn with regard to the challenge of reconciling MNE activities with the moral complexity posed by globalization. (shrink)

To grasp current trends within capitalism without abandoning the framework of Marx’sCapitalwe need to return to the category of ‘fictitious capital’ and make it central to our explanations. Based on the 2012 Isaac and Tamara Deutscher Memorial Lecture, this essay combines reflections on Marx’s account of ‘fictitious capital’; an investigation of the role of bills of exchange; and an analysis of the recent turmoil in British and US banking. It looks at the way the opium trade, financed through (...) the London bill market, integrated a constellation of interests in the City with the labour of peasant households in India as parts of a unified accumulation process. Opium was vital to the fortunes of British capitalism for most of the nineteenth century. The merchant banks that were the mainstay of Britain’s form of capitalism were also the key element in the re-emergence of global finance in the postwar period. The concluding part of the paper deals with the current banking crisis and follows Hilferding in arguing that by providing liquidity to the markets for fictitious capital, speculation plays a crucial role in sustaining profitability for the bigger capitals. (shrink)

Modernity is a stage in societies’ development that is the corollary of enlightenment. It has variously been conceived to be the ultimate moment in the unfolding of human history in the sense that norms and values, and practices and institutions are nearly or at their most perfect. However, the conceived prelude to or realization of utopia does not accord with reality in many specific modern societies, even those that are generally considered to be the forerunners of modernity. In Africa, the (...) onset of modernity and its extension into the diverse realms of human beings’ lives has entailed norms and values, and practices and institutions that are the genesis of dystopia. This article examines the ambivalent nexus of modernity and human rights in Africa from the onset of the modernization project to date. Using critical theory, the article argues that although modernity is credited with the birth of human rights, in Africa its primary actors, namely capital, the markets, and the state, are either ambivalent to and/or causal to widespread and deep human rights violations. The human rights violations are systemically and systematically cast as incidental and spurious rather than the hallmarks of modernity. Judicial, political, and educational institutions act and reiterate their capacities to address the incidental/spurious human rights violations, despite abundant evidence that, as part of modernity, these institutions are ambivalent to human rights and, therefore, can only mask the reality and perpetuate human rights violations. This general stance is the consequence of the pervasive logic of capital. This article explains how this pervasive phenomenon in its various forms, such as state capitalism and global capitalism, coupled with neopatrimonialism, has impacted the institution and practice of human rights in Africa. The analysis concludes that though modernity is credited with the birth of human rights regimes, its historicity has been causal of significant violations of human rights. The violations unleashed by capital are exacerbated by political elites who, in their processes of policy-making and budgetary deliberation, and implementation, marginally conceive nation-extensive notions of common good. Consequently, violation of human rights is rampant. (shrink)

ABSTRACT Capital regulations stemming from the Basel accords created incentives for banks to securitize mortgages, even risky ones; hold them at a correspondingly low Basel risk weight; or shift them off of banks' balance sheets to obtain even greater leverage. Securitization was praised by economists and regulators for dispersing risks to investors across the world, providing greater resilience to the financial system. However, since in reality banks tended to hold onto securitized assets—either on their balance sheets or off of (...) them, in off‐balance‐sheet entities—the accumulated credit risk remained with the banks, especially in the “shadow banking sector.” This explains the heightened vulnerability of the financial system to a sudden collapse. (shrink)

Capital regulations stemming from the Basel accords created incentives for banks to securitize mortgages, even risky ones; hold them at a correspondingly low Basel risk weight; or shift them off of banks' balance sheets to obtain even greater leverage. Securitization was praised by economists and regulators for dispersing risks to investors across the world, providing greater resilience to the financial system. However, since in reality banks tended to hold onto securitized assets—either on their balance sheets or off of them, (...) in off‐balance‐sheet entities—the accumulated credit risk remained with the banks, especially in the “shadow banking sector.” This explains the heightened vulnerability of the financial system to a sudden collapse. (shrink)

This paper develops a political economic explanation of the 2007–9 US subprime crisis which focuses on one of its central causes: the transformation of racial exclusion in US mortgage-markets. Until the early 1990s, racial minorities were systematically excluded from mortgage-finance due to bank-redlining and discrimination. But, then, racial exclusion in credit-markets was transformed: racial minorities were increasingly given access to housing-credit under terms far more adverse than were offered to non-minority borrowers. This paper shows that the emergence of (...) the subprime loan is linked, in turn, to the strategic transformation of banking in the 1980s, and to the unique global circumstances of the US macro-economy. Thus, subprime lending emerged from a combination of the long US history of racial exclusion in credit-markets, the crisis of US banking, and the position of the US within the global economy. From the viewpoint of the capitalist accumulation-process, these loans increased the depth of the financial expropriation of the working class by financial capital. The crisis in subprime lending then emerged when subprime loans with exploitative terms became more widespread and were made increasingly on an under-collateralised basis – that is, when housing-loans became not just extortionary but speculative. (shrink)

In this article we try to estimate the activity of the banking institution in the General Government which used the pre-war apparatus of The National Bank of Agriculture. The bank was one ofthe largest banks realising the aim delineated by the government of the Second Polish Republic, such as the support of agricultural reform in the mid-war period. German authorities in the General Government used assets of the bank for other tasks. They were eager to use The National Bank of (...) Agriculture and the Polish staff employed in the bank in order to liquidate fast and effectively the mid-war assets of the bank. Leaving The National Bank of Agriculture was also good for Polish staff in the bank. Raising pre-war debts was the only way to guarantee salary and pensions forthe employees of the National Bank of Agriculture and taking care of them in the hard life of occupation. The activity of the National Bank of Agriculture in the General Government was also profitable for a part of debtors as they could pay the pre-war credits earlier. One reason for agriculture farms becoming poorer and even ruined was war actions and the occupation. However, the farmers could save money and gather capital more easily. When they often sold food in secret, they got a large amount of money. In many cases, paying back the pre-war debt was the only reasonable way of getting rid of almost valueless money, although it did not mean that it was done without doubts. In the beginning, many people claimed that they would give it back to whom they had borrowed from. However, after a while the patriotism of farmers who were debtors was overcome by the willingness to have no debts and leave children in a new condition. The period of German occupation and increasing inflation was used for paying back the debt in valueless money, not only by farmers but also by owners of the large mansions such as Earl Adam Branicki. (shrink)

This chapter contains sections titled: Yoga for Women? The Yoga Body as ‘Capital’ Yoga as a Beauty Practice Conclusion: Yoga for Everybody.

Finance orthodoxy views finance capital as privately supplied, inherently scarce, and limited to assets accumulated by rentiers and held in financial institutions to be “intermediated” between virtuous savers and needful end users. But this “intermediated scarce private capital” orthodoxy is false and profoundly antagonistic to both democracy and productive investment. This article offers a more accurate portrayal that captures the critical role the public plays in generating and allocating its own full faith and credit in monetized form. (...) The financial system then looks like a franchise arrangement in which the public is franchiser and the institutions dispensing its full faith and credit are its franchisees. A post-capital-scarcity account of publicly underwritten finance explicitly recognizes both the propriety and the necessity of the public’s taking an active role in modulating and allocating its credit aggregates across the economy it constitutes. (shrink)

Through the personal stories of managers running global business, this book takes an inside look into the dilemmas of managers who are asked to make profits ethically according to the dictates of their company's ethics code. It examines what companies `think" they are doing to help managers in those situations and how those managers are actually affected. Thanks to the boost from the 1991 Sentencing Guidelines which minimizes penalties for companies with ethics codes caught in ethical wrongdoing, more than 85% (...) of US companies and two thirds of all Canadian companies and half of all European companies now have Codes of Ethics. Yet, over and over, we hear of stories of personal dilemmas and conflicts experienced by individual managers navigating those business waters in other cultures. "Eileen Morgan does an excellent job of mapping the course for navigating the previously uncharted global ethical waters. By identifying best practices, she leads the reader on a journey from Surviving, to Understanding to Knowing the ethical issues that frequently confront international business people. This is a must read for anyone who wants to successfully compete in world markets." -Michael J. Litwin, Executive Vice President, Chief Credit Officer, Heller Financial, Inc. "Eileen Morgan has combined the pragmatic concerns of the individual manager with the moral concerns that come from personal-life history, cultural roots, and corporate ethical culture …This book focuses on the constructive task of formulating and using an "ethical map," and is sure to be a tonic to conscientious managers who want to navigate cross-cultural commerce with integrity. It has done a superb job of creating order out of the complexity of cross-cultural moral experience by insisting that the complexity must be honored and appropriated rather than ignored or suppressed." -Dr. Richard Beauchamp, Professor of Ethics, Christopher Newport University "In this groundbreaking book, Eileen Morgan has provided scores of real-life examples and developed a framework for approaching ethical leadership in international business. This is mandatory reading for anyone involved in global management today...This is an important book on an important subject." -Stephen H. Rhinesmith, Ph.D. Author, A Manager's Guide to Globalization "Eileen Morgan provides us with a much needed roadmap for how to walk the path of ethical leadership with practical feet. She reminds us that ethical decision-making is a critical aspect of every day leadership, and that we can all choose to be 'ethical pioneers' in our companies and our communities. Every leader engaged in global business can benefit from the lessons and stories included in this book." -Christi A. Olson, Ph.D. Chair, Telecommunications Management Department, Golden Gate University "Eileen Morgan's thoughtful analysis of 'ethical capital' should be read by anyone who does business in a global environment…Morgan's book presents the issue clearly, comprehensively and compellingly, demonstrating that ethics is an indispensable aspect of individual leadership and organizational credibility. …It provides a clear roadmap for business leaders who need to communicate their commitment to integrity and accountability to their employees, their partners, and their customer, making their 'ethical capital' one of their most valuable assets." -Nell Minnow, Principal, Lens, The Corporate Governance Investors "Eileen Morgan gives excellent insight into ethical practices. She focuses on business but her insights have general application. This book also describes differences in ethical interpretation that can arise between diverse cultures. Ms. Morgan has made an excellent contribution to understanding the benefit of positive ethical practices." -David C. Lincoln, Sponsor, Lincoln Center for Applied Ethics, College of Business, Arizona State University President, Arizona Oxides, LLC · First in-depth look at how managers in global companies actually bridge the gap between their organizations and their daily decisions · Explains the need for internal and external ethical operations¦and how organizations often create confusion rather than clarity with the label of "ethics". (shrink)

A series of meetings, in search of industrial equity, started in Worcester, Massachusetts, August, 1867, disclosed a belief that the solution of the labor problem will not be found in trades monopolies, special legislation to reduce the hours or increase the wages of service, co-operation on present methods of ownership, exchange, and finance, or other expedients, by restricting competition, to remove evils which natural forces would expel if allowed a chance; but rather in opportunity and reciprocity, in the unrestricted liberty (...) to create and equitable exchange of values which only asks government to step out of the way. In the progress of thought, service appeared to be the source of wealth, and the true basis of exchange; while interest, rent and profit or dividends seemed inadmissible, except for work done or risk incurred. The use of one's credit was found to be a natural right, antecedently independent of human law, and free money the destined mediator between labor and capital. After this faith was reaffirmed in the Boston Convention of January, 1869, we were agreeably surprised to learn that substantially the same conclusions had been reached, by a different line of argument, twenty years before, in a series of articles published in a Worcester County newspaper over the signature of "Omega." Reprinted in 1850 and 1857, these essays generously placed at our disposal by their author, we now have the pleasure of reissuing for general circulation. The truths stated in them are as fresh and practicable today as they were twenty years ago, and the public is better prepared to receive them. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Music, Mind, and Morality:Arousing the Body PoliticPhilip Alperson (bio) and Noël Carroll (bio)I. IntroductionIf like Aristotle one agrees that the responsibility of philosophy is to offer as comprehensive a picture of phenomena as possible, then one must admit that sometimes the methods and goals of analytic philosophy stand in the way of getting the job done properly; they may even distort one's findings. This is not said in order (...) to eschew analytic philosophy. It is simply a reminder that sometimes we need to stand back and check to reassure ourselves that the tail is not wagging the dog.One example of where this danger looms is in the philosophy of art. In the eighteenth century the Modern System of the Arts was born.1 It included the practices that we think nowadays are the appropriate inhabitants of art schools and art centers and the legitimate beneficiaries of programs like the National Endowment for the Arts in the United States. These arts included poetry, painting, sculpture, music, dance, and sometimes gardening. These are what we might call the arts with a "capital A."This is a different way of understanding the notion of the arts and the nomenclature from which they derive in Latin and Greek. For Socrates, Aristotle, and Plato, arts were simply any skilled practice. Poetry, for Aristotle at least, was an art, but so were navigation, medicine, and statecraft. And there were, of course, the martial arts. What happens with the emergence of the Modern System of the Arts—otherwise known as the Fine Arts, or the Beaux Arts, or, for us, the Arts with a capital A—is that a subset of the arts in the Greco-Roman sense were selected out and christened as a class unto itself, [End Page 1] different from the other "small a" arts. Whereas once upon a time chemists and painters might have been grouped together in the same guild in virtue of the fact that both types of workers ground substances, such as pigment; with the advent of the Modern System of the Arts, chemists and painters became first and foremost categorically different.However, the consolidation of the class of Arts with a capital A demanded a theoretical answer to the question of what criterion an art form had to meet in order to gain membership in the Modern System of the Arts. The first suggestion was that a candidate practice had to possess the capacity to imitate the beautiful in nature. This was not a definition that had legs. For when absolute or pure instrumental music—or, as Peter Kivy calls it, music alone2 —took center stage as the most important form of music as well as the Art with a capital A to which all the other arts putatively aspired, the criteria for entry into the Modern System of the Arts had to be reconceived. Since music alone could not creditably be described as the imitation of the beautiful in nature (or, for that matter, the imitation of anything else), a new license for practicing Art with a capital A had to be found. And this has become one of the animating tasks of the analytic philosophy of art.But the analytic philosophy of art comes with a certain bias toward discharging this task. It is committed to finding an essentialist answer to resolving the question of what warrants citizenship in the republic of Art (with a capital A). That is, what makes something an Artistic practice or, for that matter, a work of Art such that it is different from other things? What separates the Arts and the artworks from everything else?Perhaps not surprisingly, one of the most popular and recurring proposals here is that the Arts are what are primarily intended to promote aesthetic experience where that has formerly been characterized as disinterested pleasure but, more recently, as experience valued for its own sake. Experience valued for its own sake, of course, is virtually by definition conceptually independent from any other end, whereas the practices that do not belong to the Modern System of the Arts are primarily devoted to securing other ends—useful or utilitarian ends, knowledge... (shrink)

Systemic financial risk is one of the most significant collective action problems facing societies. The Great Recession brought attention to a tragedy of the commons in capital markets, in which market participants, from the first-time homebuyer to Wall Street financiers, acted in ways beneficial to themselves individually, but which together caused substantial collective harm. Two kinds of risk are at play in complex chains of transactions in financial markets: ordinary market risk and systemic risk. Two moral questions are relevant (...) in such cases. First, from the standpoint of interactional morality, does a person have a moral duty to avoid risk of harm to others if their financial transactions contribute in some way, however small, to the loss or harm? This article identifies the conditions in which persons are morally responsible in such cases. Second, from the standpoint of institutional morality, how should society distribute the risk of harm associated with massively complex financial markets? This question is considered in the context of the home mortgage credit market. Luck egalitarianism, in particular a Dworkinian insurance scheme to allocate risks and resources relating to mortgage credit and private home ownership, offers substantial promise. (shrink)

Large exchange markets, big money, interest-bearing credit, big landholdings, proletarian masses, imperial expansion and even ‘capital’ or ‘salaried workers’, are not in themselves specific, unique institutional features of Modern Capitalism. This article argues that the features that characterize Modern Capitalism are a massive emergence of ‘free’, monetized wage labour, a self-propelled rush to unbounded world expansion and the progressive conversion of expropriated and privatized land into a monetized commodity, as well as a radically new use of the ancestral (...) social institutions of money and credit as an instrument for financing the production of commodities to obtain a surplus in the form of monetary profit, but also to generate expropriatory social debt relations. This article explains these dynamic historical forces and their importance for political philosophy and for legal and economic history and economics and sheds some light on the relationship between ‘capitalism’ and ‘modernity’. (shrink)

The paper explores the incentive structures and the structurally rigid social hierarchies inherent in the polarizing logic of modern credit money and the mutual constitution of money’s sovereign and biopolitical dimensions. It is argued that the monetary system constitutes a major transitory channel for the logic of financial capital to transcend the limitations of sovereign spaces and to transform itself into a biopolitical force. The relationship between the material and the subjective – or the sovereign and the biopolitical (...) – dimensions of money is seen as di-polaric rather than di-chotomic – as a mutually constitutive whole between relational dynamics and the normalizing opportunity structures which govern such interaction. If the sovereign and the biopolitical dimensions of money indeed constitute distinct but inseparable moments of the same totality, there would appear to be more room for strategic combination of heterogeneous analytical practices in emancipatory scholarship than what some of the traditional notions of the epistemological politics of power and sovereignty might suggest. (shrink)

Ethicmentality is an innovative book. It blends ethics with mentality to capture the interdependence of ethical life and social life creatively. The book is also innovative because of the way this interdependence is explored. By focusing on practical ethical behavior in today’s economy, business, and society, Michela Betta has advanced an understanding of ethics freed from the burden of moral theory. By introducing a new type of analysis this book also contributes to methodological innovation. Familiar issues are revisited through the (...) notion of ethicmentality. Capitalist economy is presented in terms of a mentality embedded in society, culture, and politics. Government is revealed as mentality about how to govern economically through market freedom rather than human rights. The rise of the financial economy is described as challenging the traditional capitalist mentality of equal opportunities. A money mentality around debts and owing is perceived as having replaced credit and owning, and the rise of corporation managers as having destroyed the old mentality of ownership. Ethicmentality shows the potential of constructive critique from economic, business, and society perspectives. It also breaches traditional limits by developing the idea of ethical capital and entrepreneurial ethics. Ethical thinking is infused with the Aristotelian notion of virtues and moderation to reflect about modern work. Ethicmentality helps us see the complexity of social and personal life. Given the pervasive nature of mentality and ethics’ focus on individual deliberation, ethicmentality represents their productive combination, a new blend for ethical and social analysis. (shrink)

The authenticity of the company’s accounting information is an important guarantee for the effective operation of the capital market. Accounting fraud is the tampering and distortion of the company’s public disclosure information. The continuous outbreak of fraud cases has dealt a heavy blow to the confidence of investors, shaken the credit foundation of the capital market, and hindered the healthy and stable development of the capital market. Therefore, it is of great theoretical and practical significance to (...) carry out the research on the identification and governance of accounting fraud. Traditionally, accounting fraud identification is mostly based on linear thinking to build the fraud identification model. However, more and more studies show that fraud has typical nonlinear characteristics, and the multiobjective of fraud means also determines the limitations of using the linear model for identification. Considering that the traditional identification methods may have the defects of model setting error and insufficient information extraction, this paper constructs the support vector machine and logistic regression model to identify accounting fraud. The support vector machine is used to improve the learning ability and generalization ability of unknown phenomena, and the explanatory power of each variable to the whole model is identified by the logistic regression model. This paper breaks through the linear constraint hypothesis and explores the model setting form which is more suitable for the law of corporate fraud behaviour to extract the fraud identification information more fully and provide more powerful support for investors to effectively identify fraud. (shrink)

Agricultural intensification and extensification are standard responses to ecological and economic vulnerability among smallholder communities. Climate change has exacerbated this vulnerability and thrown the complexity of and critical need for managing a healthy natural resource base while increasing on-farm productivity into sharp light. Sustainable intensification is one of many mechanisms for accomplishing this balancing act. This study examines the adoption of sustainable intensification practices, namely input packages focused on tef row planting—designed to boost yield and promote more efficient use of (...) inputs. This study utilized a mix methods approach to survey 115 smallholder farmers in the South Wollo zone of the Amhara region in Ethiopia. This study found that cash and capital, more so than contact with the AIS, influenced farmers’ decisions to adopt row planting input packages. Khat production was an important source of cash for inputs and was more likely to be available to farmers with irrigation schemes. Long-term, farmers who cultivate khat may not successfully engage in SI, as khat replaces traditional food crop production in the region. Yet, for farmers who do not grow khat, long-term investment in SI practices is unlikely unless access to affordable credit options is improved. (shrink)

In today's age of restrictionism, a growing number of countries are closing their gates of admission to most categories of would-be immigrants with one important exception. Governments increasingly seek to lure and attract “high value” migrants, especially those with access to large sums of capital. These individuals are offered golden visa programs that lead to fast-tracked naturalization in exchange for a hefty investment, in some cases without inhabiting or even setting foot in the passport-issuing country to which they now (...) officially belong. In the U.S. context, the contrast between the “Dreamers” and “Parachuters” helps to draw out this distinction between civic ties and credit lines as competing bases for membership acquisition. Drawing attention to these seldom-discussed citizenship-for-sale practices, this essay highlights their global surge and critically evaluates the legal, normative, and distributional quandaries they raise. I further argue that purchased membership goods cannot replicate or substitute the meaningful links to a political community that make citizenship valuable and worth upholding in the first place. (shrink)

Was Marxism a variety of German Idealist self-actualization in economic form? A deeply flawed blueprint for social engineering? A catechism for post-colonial insurgencies? the intellectual foundations of modern social democracy? In this wide ranging summation, Sullivan tackles the multi-tentacled reach of Marx's legacy, and explores both the limits and the lasting significance of his ideas. Structured around three obstacles to freedom - poverty, corruption and banality - the work engages both Marx and his critics in addressing unresolved issues of the (...) current social and political order. As such, the work, after two introductory chapters, leaves behind Marxology and its familiar cast of characters (Bernstein, Kautsky, Adorno, Lukacs, Fanon, Horkheimer, Marcuse, etc.) to address both neo-Marxist and non-Marxist interpretations of these obstacles. These include growth-led poverty alleviation, human capital theory, current debates on rent-seeking and public choice theory, weaknesses in Frankfurt School approaches to mass culture, and emerging trends in cyberspace and leisure consumption. Marx for a Post-Communist Era is credited as a foundational theoretical source in a wide range of contemporary studies. Some examples include a government-sponsored anti-corruption report in Peru, a study of neoliberalism and education reform in the UK, and an urban planning essay on museum spaces and the public good. (shrink)

In his recent work The Myth of Dialectics John Rosenthal presents a forceful polemic against Hegel and Marxists sympathetic to the Hegelian legacy. The methodology Hegel employed, his metaphysical assertions, his rejection of the principles of formal logic, and the political implications of his standpoint, are all fundamentally incompatible with Marx’s perspective, according to Rosenthal. While Rosenthal grants that Marx did make use of Hegelian motifs in his theory of value, even this is not to Hegel’s credit: the very (...) perversity of Hegel’s thought made it useful for the comprehension of the perversity of capital. In this paper I argue that a close and reasonably charitable reading of Hegel’s Logic reveals a quite different picture of his methodology and ontological commitments from that presented by Rosenthal. While there are profound substantive differences between the Hegelian and Marxian 1 perspectives on capitalist society, it is not the case that Hegel’s Logic is homologous with capital. The Logic provides helpful conceptual resources for a critique of capital. In the final section of the paper five areas are briefly sketched in which Hegelian dialectical logic remains of contemporary interest. (shrink)

This paper situates the subprime crisis in the context of the performance of the American economy over the last twenty-five years. The restructuring of the US economy is briefly reviewed, followed by an examination of some of the contradictions of the neoliberal model. Particular emphasis is placed on understanding the reasons behind stagnant investment, and how the US finance-led accumulation-régime has become dependent upon, and threatened by, credit-creation delinked from the financing of fixed-capital formation. I argue that while (...) the defeat of the remnants of the New-Deal/Civil-Rights liberal-democratic coalition has provided the political context for the bold re-assertion of the prerogatives of capitalist owners, the neoliberal model has not provided a path out of problems of stagnation and growing debt-dependency that presently plague the US economy. Further, I argue that evidence suggests that the post-1982 restoration of profitability that underpinned the relative improvement of US economic performance has peaked, and that compelling historical and theoretical reasons exist to expect that the profit-rate will decline in the coming decade. This will introduce additional stresses on the current debt-structure of the US economy, triggering a period of prolonged crisis and economic dislocation. The conclusion is that the US economy faces the spectre of a protracted crisis associated with the reassertion of the falling rate of profit. (shrink)

Source: Author: Uzoamaka S. Chigbu, Chijindu Promise Ubah, Ezeji E. Chigbu The level of bank development has a determinant effect on the growth potentials of a developing economy. In response, this study examined the impact of banking sector development on foreign investment inflows in the West African countries of Nigeria and Ghana. The study relied on secondary data for analysis and made use of multiple regression technique. However, to ensure the authenticity of our result, Augmented Dickey-Fuller unit root test and (...) Johansen Cointegration techniques were respectively employed to test for the presence unit root and long-run equilibrium relationship in the exogenous variables. Additionally, causal relationships were tested with Granger Causality. It was revealed that banking sector development has a significant influence on foreign investment inflows in the two West African countries. Specifically, domestic credit to private sector and bank deposit rate has significant influence on foreign investment inflows in both countries. Whereas domestic credit to private sector is directly related to the dependent variable in Ghana, it is related inversely in Nigeria. It was also discovered that bank lending rate is significantly and positively related to foreign investment in Ghana. Intermediation efficiency and profitability of banks should be improved by enhancing the capital structure and adopting the appropriate lending rate especially in Nigeria as measures to attract more inflows of foreign investment in both countries. ]]>. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Fiction and Theory of MindBrian BoydWhy We Read Fiction: Theory of Mind and the Novel, by Lisa Zunshine; 198 pp. Columbus: Ohio State University Press, 2006. $59.95Lisa Zunshine's Why We Read Fiction aims "to put the cognitive-evolutionary concept of the Theory of Mind on the map of contemporary literary studies" (p. 84). Any literary critic who has stumbled upon this active research program in recent clinical, cognitive, comparative, developmental (...) and evolutionary psychology will have realized that Theory of Mind (ToM)—our intuitive systems for understanding the minds of others—must be relevant to literature. As someone who has long deplored its neglect in literary studies (often on the very pages of this journal) I regret to report that as a cartographer of this new terrain Zunshine has an unsteady hand.As its title suggests, her book makes a large claim: that we read fiction in order to give ourselves a cognitive workout, to exercise our capacity for ToM. We normally understand readily four levels of embedded intentionality (you doubt that Brian accepts that Lisa knows what Robin says), but we find it rapidly more difficult to handle further levels. Fiction often pushes "our ability to process embedded intentionalities beyond our cognitive zone of comfort" (p. 130). Why We Read Fiction also makes a second, implicit but no less central, claim: that analyzing fiction in terms of ToM offers criticism greater explanatory power, precision, and clarity. [End Page 590]Zunshine's explicit claim seems unlikely. All peoples tell and attend to fictions, but as Zunshine sometimes concedes not all these fictions push the boundaries of ToM. Many individuals and groups, perhaps most, especially enjoy fiction that does not involve high-level ToM, such as myth, fairy tale, and action adventure stories from epics to Westerns or martial arts movies. Children already engage in pretend play and enjoy stories compulsively long before they attain a uniquely human, yet still imperfectly developed, level of ToM in their fifth year. How can fiction be explained in terms of setting stiff challenges to our capacity for ToM, when so many children and adults enjoy fiction that makes no exceptional demands?Fiction can experiment with ToM, with, for instance, multiple levels of embedded intentionality. Barth's virtuoso exercise "Menelaiad" (1968) involves seven degrees of embedding, but the story feels, and is meant to feel, comically overloaded. Less flamboyant but more searching experiment with our capacity to comprehend minds, like Tolstoy's in Anna Karenina, may involve at its most original only one, two or three levels of intentionality: Stiva's thoughts alone, brilliantly evoked in the opening chapter, or his thoughts about Dolly's feelings or his own thoughts, or his thoughts about Dolly's thoughts about his feelings.Zunshine acknowledges that fiction places varied emphases on ToM, but dwells only on examples that support her case, and ignores many kinds of fiction that do not. More damaging still, the examples she does draw on fail to provide the support she thinks they do, thus undermining both her first claim, that fiction provides an intense ToM workout, and her second, that analyzing fiction through ToM sharpens and strengthens criticism. Interpreting fiction with an explicit awareness of ToM can have this effect, but Zunshine inadvertently reveals dangers rather than opportunities.Since texts are the hard evidence in literary study, we need to see in detail how Zunshine handles them. Her first display example comes from Woolf's Mrs Dalloway. She cites:And Miss Brush [Lady Bruton's secretary] went out, came back; laid papers on the table; and Hugh produced his fountain pen; his silver fountain pen, which had done twenty years' service, he said, unscrewing the cap. It was still in perfect order; he had shown it to the makers; there was no reason, they said, why it should ever wear out; which was somehow to Hugh's credit, and to the credit of the sentiments which his pen expressed (so Richard Dalloway felt) as Hugh began carefully writing capital letters with rings [End Page 591] around them in the margin, and thus marvelously reduced Lady Bruton's tangles to sense, to grammar such as the editor of the Times... (shrink)

State sovereignty is closely intertwined with, but not limited to, control over territory and people. It has long been recognized that control over monetary affairs is a critical part of genuine sovereignty. In this Article, I go a step further and argue that the relevance and importance of territorial versus monetary sovereignty has shifted in favor of the latter. This shift goes hand in hand with the rise of credit-based financial systems. Such systems depend, in the last instance, on (...) backstopping by an entity with control over its own money supply and no binding survival constraints. Only states with monetary sovereignty fit this pattern. All others are de facto more like private entities, which by definition cannot manipulate their own survival constraint. States can surrender their monetary sovereignty directly by adopting another currency or by issuing their own debt in foreign currency and under foreign law. They also compromise their sovereignty by permitting unlimited capital inflows denominated in currencies other than their own. This is because in times of crisis they will not be able to rescue the domestic financial system from its tendency to self-destruct without subjecting itself to a sovereign debt crisis and the implied need to rely on a lifeline from other states or supranational entities. (shrink)