Skip to main content
×
Home
    • Aa
    • Aa

Perpetual decline or persistent dominance? Uncovering Anglo-America’s true structural power in global finance

  • Jan Fichtner (a1)
Abstract
Abstract

The prediction of America’s decline is a regularly recurring phenomenon; this also pertains to the pivotal field of global finance. This article argues that, first we have to consider the United States together with the other Anglophone countries. The English-speaking countries and territories – Anglo-America – have deep common political and socioeconomic roots, of which the unique global Five Eyes intelligence cooperation is merely one manifestation. In finance, New York and London (NY-LON) constitute the decision-making core of this transnational formation. Second, to analyse the highly complex phenomenon of structural power in the globalised international political economy we have to dig deeper to uncover truly meaningful data. Thus, this article evaluates data for nine central segments of global finance from around the year 2000 to 2014. Contrary to the assertions of many declinists, these data show that Anglo-America’s dominant structural power has been persistent during this period. Moreover, four novel visualisations show that the US-UK axis is the fulcrum of the international financial system. However, contemporary global finance is characterised by a high degree of latent fragility; significant imbalances, inequalities and contradictions persist and are even likely to grow, potentially undermining the legitimacy and the stability of the whole system.

  • View HTML
    • Send article to Kindle

      To send this article to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle.

      Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

      Find out more about the Kindle Personal Document Service.

      Perpetual decline or persistent dominance? Uncovering Anglo-America’s true structural power in global finance
      Available formats
      ×
      Send article to Dropbox

      To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your Dropbox account. Find out more about sending content to Dropbox.

      Perpetual decline or persistent dominance? Uncovering Anglo-America’s true structural power in global finance
      Available formats
      ×
      Send article to Google Drive

      To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your Google Drive account. Find out more about sending content to Google Drive.

      Perpetual decline or persistent dominance? Uncovering Anglo-America’s true structural power in global finance
      Available formats
      ×
Copyright
Corresponding author
*Correspondence to: Jan Fichtner, University of Amsterdam, Department of Political Science, CORPNET Project, P. O. Box 15578, 1001 NB, Amsterdam, NL. Author’s email: J.R.Fichtner@uva.nl
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

LeonardSeabrooke , US Power in International Finance: The Victory of Dividends (London: Palgrave, 2001)

JosephNye , ‘The twenty-first century will not be a “post-American” world’, International Studies Quarterly, 56:1 (2012), pp. 215217

SeanStarrs , ‘American economic power hasn’t declined – it globalized! Summoning the data and taking globalization seriously’, International Studies Quarterly, 57:4 (2013), pp. 817830

Kees van derPijl , ‘Is the East still Red? The contender state and class struggles in China’, Globalizations, 9:4 (2012), pp. 503516

Peter A.Hall and DavidSoskice (eds), Varieties of Capitalism: the Institutional Foundations of Comparative Advantage (Oxford: Oxford University Press, 2001)

BrunoAmable , The Diversity of Modern Capitalism (Oxford: Oxford University Press, 2003)

AndreasNölke , Tobias tenBrink , SimoneClaar , and ChristianMay , ‘Domestic structures, foreign economic policies and global economic order: Implications from the rise of large emerging economies’, European Journal of International Relations, 21:3 (2015), pp. 538567

DariuszWójcik , ‘The dark side of NY-LON: Financial centres and the global financial crisis’, Urban Studies, 50:13 (2013), pp. 27362752

MartijnKonings , ‘The institutional foundations of US structural power in international finance: From the re-emergence of global finance to the monetarist turn’, Review of International Political Economy, 15:1 (2008), pp. 3561

JonathanNitzan , ‘Differential accumulation: Towards a new political economy of capital’, Review of International Political Economy, 5:2 (1998), pp. 169216

DickBryan and MichaelRafferty , Capitalism with Derivatives: A Political Economy of Financial Derivatives, Capital and Class (Basingstoke: Palgrave Macmillan, 2006)

DuncanWigan , ‘Financialisation and derivatives: Constructing an artifice of indifference’, Competition & Change, 13:2 (2009), p. 159

DavidSarai , ‘US structural power and the internationalization of the US treasury’, in Leo Panitch and Martijn Konings (eds), American Empire and the Political Economy of Global Finance (New York: Palgrave Macmillan, 2009), pp. 7189

Eswar S.Prasad , The Dollar Trap: How the U.S. Dollar Tightened its Grip on Global Finance (Princeton: Princeton University Press, 2015)

MiguelOtero-Iglesias and MattiasVermeiren , ‘China’s state-permeated market economy and its constraints to the internationalization of the renminbi’, International Politics, 52:6 (2015), pp. 684703

EelkeHeemskerk and FrankTakes , ‘The corporate elite community structure of global capitalism’, New Political Economy, 21:1 (2016), pp. 90118

DanielHaberly and DariuszWójcik , ‘Regional blocks and imperial legacies: Mapping the global offshore FDI network’, Economic Geography, 91:3 (2015), pp. 251320

William KindredWinecoff , ‘Structural power and the global financial crisis: a network analytical approach’, Business and Politics, 17:3 (2015), pp. 495526

Sandy BrianHager , Public Debt, Inequality, and Power: The Making of a Modern Debt State (Berkeley: University of California Press, 2016)

EricHelleiner , The Status Quo Crisis: Global Financial Governance After the 2008 Meltdown (Oxford: Oxford University Press, 2014)

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Review of International Studies
  • ISSN: 0260-2105
  • EISSN: 1469-9044
  • URL: /core/journals/review-of-international-studies
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Keywords:

Metrics

Altmetric attention score