Lambert here: This is a fun read. I must say that for one of my temperament, a “productive incoherence thesis” is attractive! And who among us is not a fan of Albert O. Hirschman?
Ilene Grabel, Professor of International Finance at the University of Denver, is interviewed by C. J. Polychroniou, a political economist/political scientist who has taught and worked in universities and research centers in Europe and the United States, and is a member of Truthout’s Public Intellectual Project. Cross-posted from Triple Crisis.
C. J. Polychroniou: It’s been ten years since the outbreak of the financial crisis, and the verdict on the effect of that crisis on global financial governance remains largely ambiguous. Nonetheless, all this may soon change as a result of the publication of your recent book titled When Things Don’t Fall Apart: Global Financial Governance and Developmental Finance in an Age of Productive Incoherence. In this book, you argue that much has in fact changed since the East Asian financial crisis of 1997-98 and especially since the global financial crisis of 2008. In what ways has global financial governance changed over the last couple of decades?
Ilene Grabel: I argue that the contradictory effects of the East Asian financial crisis (EAFC) of 1997-8 laid groundwork for consequential (albeit paradoxical) shifts in several dimensions of global financial governance and developmental finance that deepened during and since the global crisis. The EAFC solidified neoliberalism through the leverage granted to external and domestic actors who had been previously unable to secure liberal reform prior to the crisis. The