Jürgen Kocka's analysis of the financialization process in advanced economies, characterized by the liberalization of financial markets and the shift from managerial to market-based capitalism.
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[...] Thus, the abandonment of the international monetary system of Bretton Woods, the liberalization of capital markets, and the deregulation of part of the economy were decided by certain governments. In addition, J. Kocka highlights how the financial sector can develop autonomously and independently of other economic activities. Referring to statements made by J. Stark, former economic director of the European Central Bank J. Kocka writes 'the finance sector had long since ceased to serve other sectors of activity, because it had become too important and now functioned on an auto-referential mode' (p. [...]
[...] Kocka, 'credit and, with it, debt have been characteristic of capitalism since its inception' (p. 111). What is at work here in the process of financialization is the sharp increase in indebtedness. This affects all economic agents, from states to businesses, and households (cf. the answer to question 3). The third characteristic of the financialization of the richest economies is linked to the transition from a managerial capitalism to a market-based capitalism and investors. In other words, power within companies has gradually shifted from managers (i.e. [...]
[...] This process unfolds in three main characteristics. [...]
[...] Debt occupies a major place in the process of financialization. To testify to this, J. Kocka invokes a distinction made by the German sociologist Ralf Dahrendorf. According to him, the most advanced economies have passed from a 'savings capitalism' system to a 'credit capitalism' system (p. 113). This evolution is particularly noticeable through the strong increase, over the past few years, in debt rates. This concerns all economic agents and, first and foremost, states, whose public debt has strongly increased since the 1970s and particularly following economic and financial crises. [...]
[...] Managerial capitalism refers to a particular form of capitalism. Like other types of capitalism, managerial capitalism is based on private ownership of the means of production and the accumulation of capital through the pursuit of profit. This form of capitalism is distinguished, however, by the importance given to 'managers'. These individuals are placed at the head of companies by their owners, that is to say, shareholders or holders of capital. These individuals delegate in some way the management of the companies they hold. [...]
