THE ARRIGHI’S CONCEPT OF CAPITAL ACCUMULATION CYCLES AND ITS APPLICATIONS
Evgeny V. BALATSKY
Doct. sci. (econ.), professor, director, Macroeconomic Research Center, Financial University under the Government of the Russian Federation, Leading Staff Scientist, Central Economics and Mathematics Institute of the Russian Academy of Sciences (CEMI RAS), Moscow, Russia
Doct. sci. (econ.), professor, director, Macroeconomic Research Center, Financial University under the Government of the Russian Federation, Leading Staff Scientist, Central Economics and Mathematics Institute of the Russian Academy of Sciences (CEMI RAS), Moscow, Russia
TERRA ECONOMICUS, 2018, Vol. 16 (no. 1),
The article discusses the main elements of the concept of capital accumulation cycles created by Giovanni Arrighi in the 90s of the XX century. In particular, the author analyzes the problem of the relationship between power, strength and capital, the symbiosis of which acts as the essence of capitalism. The main attention is paid to the idea of Arrighi that capitalism throughout its history has sought not to initiate, but to limit competitive processes in order to ensure a high return from capital. Two stages in the formation of the capital accumulation cycle are discussed: territoriality, which may be internal and external, and capitalization, which in turn happens may be national and cosmopolitan. It is shown in what ways all known world capital accumulation centers (WCAC) – Genoa (Venice), Holland, Great Britain and the USA – provided comfortable business conditions and thereby regulated the amount of profit. Reveals the psychology of entrepreneurs that allow territorial expansion and coordination mechanism of group interests of the businessmen and power possessors. The importance of technological rationality for competition of the second–tier states with the acting WCAC is studied on the example of the UK–Germany and US–Japan country pairs. The basic concepts of capital accumulation cycles, such as signal and terminal crises, as well as local and systemic turbulence, are discussed. To explain the emergence of two phases of the accumulation cycle – territoriality and capitalization – the idea of the presence of the production-trade and financial sectors of the economy own cycles of development, which are in the against phase to each other is used. Particularly discussing the possibility of the occurrence of the fifth capital accumulation cycle with WCAC in China. The tragedy of the figure of Donald Trump, who, as an expression of America’s national interests, faces opposition from national capital, whose interests do not coincide with the policy of the President, is shown. Is addressing four global consequence of the onset of the fifth capital accumulation cycle.
Keywords: cycle; capital; power; expansion; return of profit; competition
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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606
Founder: Southern Federal University
ISSN: 2073-6606