- Created: Wednesday, 01 February 2017 11:51
- Written by David Yaffe
20 years ago ‘globalisation’ was the latest fashionable term to describe the all-pervasive forces of a rampant capitalism. It was said to be a new stage of capitalism in which multinational companies and financial institutions, attached to no particular nation state, moved their capital around the world in search of the highest returns, and in so doing created a truly global market and global capital. At the time FRFI explained that, far from being new, globalisation was a return to those unstable features of capitalism which characterised imperialism before the First World War. It had begun to recreate the very conditions which produced those dramatic shocks to the international capitalist system that led to the revolutionary developments in the first decades of the 20th century. It reflected a deep crisis of the capitalist system that would soon lead the most powerful capitalist countries into a renewed struggle over world markets and global spheres of interest, into brutal wars in less developed parts of the world, into a new process to redivide the world according to economic power.1
Until the late 2000s, Martin Wolf, chief economic commentator at the Financial Times, was an enthusiastic advocate of neo-liberal globalisation. In 2002, the deepening crisis of the capitalist system forced him to raise the question whether the global expansion of capitalism had come to a halt and was about to be reversed. Will the second era of global capitalist integration, he asked, end like the first, which went into reverse between 1914 and 1945, after inter-imperialist rivalries led to war and socialist revolution in Russia? Wolf’s answer was no. Conditions he assured us were very different this time.2 Today, 14 years on, he is no longer convinced.