I’m giving the following talk at the 13th AIPEN Workshop to be held at the University of Melbourne on 9th and 10th February 2023 – thanks to Dr Sara Meger and colleagues for organising.
From Jones to Sunak: How The City and Financialised Hedge Funds Shape The United Kingdom’s Political Economy
Rishi Sunak’s rapid ascension to becoming Prime Minister of the United Kingdom in October 2022 signalled how financialisation and capital accumulation shape the United Kingdom’s political economy. This paper investigates how Sunak’s career in Goldman Sachs and in the hedge funds the Children’s Investment Fund Management and Theleme Partners gave him the reputation and the decision-making skills to outflank former Prime Minister Liz Truss, whose Trussonomics fiscal policies sought to provide unfunded tax arbitrage for her 1% donors. The blow up in October 2022 of Liability Driven Investment leveraged strategies in United Kingdom pension funds created a classic Bagehot-style run on the gilt: financial markets reacted by deligitimating Truss and instead backing Sunak. I show how Sunak was able to use the unique meso-level (organisational) strategic subcultures of hedge funds to accumulate capital and to gain valuable tactical skills for his subsequent political career, from COVID-19 crisis alpha (reflected in Theleme Partners’ position size in the pharmaceutical firm Moderna), to pursuing new fiscal and monetary policies that reflected the City’s Big Bank deregulation experience under former Prime Minister Margaret Thatcher in the 1980s, far more than Liz Truss’s wishful idolisation of Thatcher as a leadership symbol. Global political economy lessons are drawn for future capital accumulation in Sydney (Australia), Tokyo (Japan), and Singapore financial hubs, despite the high likelihood of a bear market and continued geopolitical volatility. The likely result despite counter-hegemonic demands will be a version of the Matthew Effect: the (already) successful will become more successful.
On Friday, I’m presenting at the 12th Australian International Political Economy Workshop on the ‘Çorporations and Power’ panel. You can download my presentation slides here. Thanks to AIPEN and The University of Queensland for a travel bursary to attend and present at the Workshop.
Update: an iPhone recording of the AIPEN talk can be heard here.
I’m presenting at the Australian International Political Economy Network’s 11th Workshop on 6th February 2020 at the University of Sydney on political economist Branko Milanovic, Australia’s liberal meritocratic capitalism, and my PhD work on mobilisational counter-power. You can now read the talk abstract, hear the audio, and view the PowerPoint sides. Thanks to AIPEN for a travel grant to attend the 11th Workshop.
The draft programme is now out for the 11th Australian International Political Economy Network Workshop to be held on 6th and 7th February at the University of Sydney.
I am giving a talk on 6th February called Australia’s Liberal Meritocratic Capitalism and the Political Economy of Mobilisational Counter-Power (abstract).
AIPEN and the University of Sydney have kindly awarded me a travel stipend to attend the Workshop.
The abstract for a paper (to be written – accepted 29th November 2019) for the Australian International Political Economy Network‘s 11th annual Workshop, to be held at the University of Sydney on 6th and 7th February 2020:
Australia’s Liberal Meritocratic Capitalism and the Political Economy of Mobilisational Counter-Power
City University of New York’s political economist Branko Milanovic (Capitalism, Alone, Harvard University Press, 2019) has argued that Western countries like Australia personify a ‘liberal meritocratic capitalism’ that contrasts with China’s rising one-party ‘political capitalism’. However, Australia is currently experiencing significant social conflicts – illustrated by economic recession fears, corporate wage theft disclosures, inequality-based social stratification, and growth in climate change activist movements like Extinction Rebellion – that highlight divisive tensions in Milanovic’s ‘liberal meritocratic capitalism’. This paper draws on recent PhD qualitative research at Monash University to further develop the political economy microfoundations of an analytical theory of counter-elite driven change: mobilisational counter-power. I use process tracing to explore these significant social conflicts and what they may mean, in particular, for transdisciplinary narratives about ecological crisis, financialisation and labour exploitation.
Keywords: liberal meritocratic capitalism; microfoundations; mobilisational counter-power; political economy; process tracing