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An research of the expansion economic climate, this booklet strains the factors of the current quandary within the smooth marketplace procedure, initiated centuries in the past with the institution of the industry economic climate procedure which has ended in the current progress financial system. It concludes tha

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Extra info for Towards an Inclusive Democracy: The Crisis of the Growth Economy and the Need for a New Liberatory Project (Global Issues (London, England).)

Example text

But it was not only the balance-of-power system that collapsed as a result of protectionist policies. The Gold Standard system, on which the stability of exchanges crucially depended, also could not stand the pressures of protectionism. e. the mechanism which supposedly eliminates imbalances in the balance of payments among the countries taking part in the system) to work efficiently was that adjustment should be achieved through changes in 'nominal' variables (prices, wages, interest rates) rather than through the much more painful - socially and economically - changes in 'real' variables (production, employment).

Thus, the aim to liberalize the markets in the first phase of the marketization process had the paradoxical effect of leading to more protection: either because of pressure by those controlling production to be protected from foreign competition, or because of pressure by the rest of society to be protected against the market mechanism itself. Both types of protectionism had the effect of undermining the marketization process, as we shall see in more detail in the next section. As regards protectionism in favour of those controlling the market economy, the return to protectionism in the form of tariffs and other trade restrictions was evident in the 1880s and was reinforced by the parallel rise 17 TOWARDS AN INCLUSIVE DEMOCRACY of nationalism.

Thus, conservative parties were succeeding social-democratic ones, without changing in its essentials the new socio-economic role of the state with respect to the market. Despite some spasmodic privatizations of nationalized industries, particularly in Britain, governments all over the advanced capitalist world were following full employment policies and were expanding continually the welfare state and the public sector in general. The Old Left was also, explicidy or implicitly, part of this consensus, whereas parties and organizations that supported aims which were incompatible with the above institutional framework sought outlets in extra-parliamentary opposition, alternative cultures, or even in urban guerrilla tactics in a hopeless and selfcontradictory attempt to function as catalysts for radical social change.

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