Subordinate Financialization in Emerging Capitalist Economies
In the explosion of literature on financialization, there is a much smaller but growing interest in what the phenomenon means for emerging capitalist economies (ECEs). Much of the literature that focuses on the advanced capitalist economies lacks a clear theory of financialization. The theory of financialization draws a necessary distinction between processes which are cyclical in nature, and secular changes in the relations of capitalist accumulation. By highlighting the potentially negative implications, the chapter shows that, while by no means pre-destined, financialization as experienced in ECEs may serve to further cement their subordinate position in the global structure. The first transformation of global capital accumulation considered crucial to conceptualize financialization phenomena in ECEs is the internationalization of production, that is, the creation of global networks of production, transforming value creation and labor relations. Financialization can become a crucial factor in determining a firm’s “competitiveness” both between lead firms and within the network itself.