The 2008 Global Crisis and State-Capital Relations in East Asia: A Critique of Decoupling Thesis

Abstract

Purpose: After the 1997 Asian Crisis, the role of East Asian states in the global economic system began to be assessed through the decoupling thesis. However, the spread of the 2008 crisis to the East Asian region and the states’ responses to mitigate its effects demonstrate the need to evaluate the region beyond the decoupling thesis. This study aims to analyze state-capital relations in East Asia and assess its integration into the global economy beyond this thesis. Methodology: The restructuring of state capacity before the 2008 crisis and the connections of regional states with the global financial system will be analyzed through the cases of China, South Korea, and Japan. Findings: The decoupling thesis does not adequately explain the connections between East Asian manufacturing, the export-led growth strategy, and global finance and demand. Emphasizing the global framework of financialization enhances understanding of the region’s position. Implications: The study demonstrates that East Asian states with export-led growth models are deeply connected to the global economy through trade and financial relations before and during the crisis. To this end, the discussions on restructuring state capacity in state-capital relations, regional cooperation, and national manufacturing dependent on global demand and investment are presented, positioning East Asian states within the framework of global financialization. It is also explained that the form of state-capital relations in the region does not serve as an alternative to this framework but rather aims to stabilize it. Limitations: In the study of East Asia, only the experiences of three cases are examined, while further discussions on state-class relations and related changes in social policies are reserved for future research.

Keywords

• 2008 crisis
• East Asian economies
• Decoupling thesis
• State-capital relations

2008 Küresel Krizi ve Doğu Asya’da Devlet-Sermaye İlişkileri: Ayrıklaşma Tezinin Bir Eleştirisi

Öz

Amaç: 1997 Asya Krizinin ardından Doğu Asya devletlerinin küresel ekonomik sistem içerisindeki konumu ayrıklaşma tezi üzerinden değerlendirilmeye başlamıştır. Ancak 2008 krizinin Doğu Asya bölgesine yayılması ve krizin etkilerini azaltmak için devletlerin verdiği tepkilere bakılacak olursa bölgeyi ayrıklaşma tezinin ötesinde değerlendirmenin gerekliliği ortaya koyulmaktadır. Bu çalışmada Doğu Asya’da devlet-sermaye ilişkileri incelenerek bu tezin ötesinde bir küresel ekonomiye entegrasyon tahlili yapmak hedeflenmektedir. Yöntem: 2008 krizi öncesinde devlet kapasitesinin yeniden yapılandırılması ve bölge devletlerinin küresel finansal sistem ile olan bağları Çin, Güney Kore ve Japonya örnekleri üzerinden ele alınacaktır. Bulgular: Ayrıklaşma tezi Doğu Asya’daki imalatın ve ihracata dayalı büyüme stratejisinin küresel finans ve talep ile olan bağlarını açıklayamamaktadır. Finansallaşmanın küresel çerçevesine yapılan vurgu bölgenin konumunu anlamaya olanak sağlamaktadır. Sonuç ve Katkılar: Çalışma ihracata dayalı büyüme modeline sahip Doğu Asya devletlerinin küresel ekonomiye derinden bağlı olduğunu kriz öncesinde ve sırasındaki ticari ve finansal ilişkiler üzerinden göstermiştir. Bu amaçla devlet-sermaye ilişkilerinde devlet kapasitesinin yeniden yapılandırılması, bölgesel iş birlikleri ve küresel talep ve yatırıma bağlı olan ulusal imalat tartışmaları ele alınmış ve Doğu Asya’daki devletler küresel finansallaşma çerçevesi içine yerleştirilmiştir. Bunun yanı sıra bölgenin devlet-sermaye ilişkilerinin aldığı biçimin bu çerçeveye alternatif oluşturmadığı, onu istikrarlı kılmayı hedeflediği açıklanmıştır. Sınırlılıklar: Doğu Asya üzerine olan çalışmada sadece üç vakanın deneyimleri ele alınmış ve ayrıca devlet-sınıf ilişkileri ve bununla alakalı olarak sosyal politikalardaki değişimlere dair tartışmalar ileriki araştırmalara bırakılmıştır.

Anahtar Kelimeler

• 2008 Krizi
• Doğu Asya ekonomileri
• Ayrıklaşma tezi
• Devlet-sermaye ilişkileri

Kaynakça

1. Akyüz, Y. ve Boratav, K. (2003). The Making of the Turkish Financial Crisis. World Development, 31(9), 1549-1566.
2. Amsden, A. H. (1989). Asia’s Next Giant: South Korea and Late Industrialization. Oxford: Oxford University Press.
3. Arner, D. W., Lejot, P. ve Schou-Zibell, L. (2008). The Global Credit Crisis and Securitization in East Asia. Capital Markets Law Journal, 3(3), 291-319.
4. Athukorala, P. ve Kohpaiboon, A. (2010). China and East Asian trade: the decoupling fallacy, crisis and policy challenges. İçinde R. Garnaut, J. Golley ve L. Song (Ed.). Chına: The Next Twenty Years Of Reform And Development (ss. 193-221). Canberra: ANU E Press.
5. Baran, P. A. ve Sweezy, P. M. (1966). Monopoly Capital. New York: Monthly Review Press.
6. Bernanke, B. S. (2009). Asia and the Global Financial Crisis. İçinde R. Glick ve M. M. Spiegel (Ed.), Asia and the Global Financial Crisis. Asia Economic Policy Conference (ss. 11-23). Alınan web sitesi: https://www.frbsf.org/economic-research/wp-content/uploads/sites/4/Conference_volume.pdf#page=19.
7. Chang, H. J. (2006). The East Asian Development Experience: The Miracle, the Crisis and the Future. Londra: Zed Books.
8. Chari, V. V. ve Kehoe, P. J. (2003) Hot Money. Journal of Political Economy, 111(6), 1262-1292.

9. De Beule, F. ve Van Den Bulcke, D. (2013). The impact of the global economic crisis on foreign direct investment: the case of China. İçinde E. Florence ve P. Degraigne (Ed.), Towards a New Development Paradigm in Twenty-First Century China: Economy, Society and Politics (ss. 49-66). Londra: Routledge.
10. Epstein, G. A. (2005). Introduction: Financialization and the World Economy. İçinde G. A. Epstein (Ed.), Financialization and the World Economy (ss. 3-17). Cheltenham: Edward Elgar Publishing.
11. Erdem, N. (2007). A Hot Debate: Financial Crises in Turkey, Mexico and South Korea. İçinde A. H. Köse, F. Şenses ve E. Yeldan (Ed.), Neoliberal Globalisation as New Imperialism (ss. 129-151). New York: Nova Science Publishers.
12. Fidrmuc, J. ve Korhonen, I. (2010). The Impact of the Global Financial Crisis on Business Cycles in Asian Emerging Economies. Journal of Asian Economics, 21, 293-303.
13. Florence, E. ve Defraigne, P. (2013). Introduction. İçinde E. Florence ve P. Degraigne (Ed.), Towards a New Development Paradigm in Twenty-First Century China: Economy, Society and Politics (ss. 1-9). Londra: Routledge.
14. Fung C., Ben, S., George, J., Hohl, S. ve Ma, G. (2011). Public asset management companies in East Asia – Case studies. Bank for International Settlements Documents No. 9355. Alınan web sitesi: https://elischolar.library.yale.edu/ypfs-documents/9355.
15. Garnaut, R. (2010). The turning period in China’s economic development: a conceptual framework and new empirical evidence. İçinde R. Garnaut, J. Golley ve L. Song (Ed.), Chına: The Next Twenty Years Of Reform And Development (ss. 19-39). Canberra: ANU E Press.
16. Glick, R. ve Hutchison, M. (2009). Navigating the trilemma: Capital flows and monetary policy in China. Journal of Asian Economics, 20, 205-224.
17. Golstein, M. ve Xie, D. (2009). The Impact of the Financial Crisis on Emerging Asia. İçinde R. Glick ve M. M. Spiegel (Ed.), Asia and the Global Financial Crisis. Asia Economic Policy Conference (ss. 27-80). Alınan web sitesi: https://www.frbsf.org/economic-research/wp-content/uploads/sites/4/09_Goldstein.pdf.
18. Grimes, W. W. (2011). The Future of Regional Liquidity Arrangements in East Asia: Lessons From the Global Financial Crisis. The Pacific Review, 24(3), 291-310.
19. Guillén, A. (2012). Europe: The Crisis Within a Crisis. International Journal of Political Economy. 41(3), 41-68.
20. Inaba, M. (2011). Increasing Poverty in Japan: Social Policy and Public Assistance Program. Asian Social Work and Policy Review, 5(2), 79-91.
21. James, W. E.; Park, D., Jha, S. (2008). The US Financial Crisis, Global Financial Turmoil, and Developing Asia: Is the Era of High Growth at an End? ADB Economics Working Paper Series No: 139.
22. Jeon, B. N. ve Wu, J. (2014). The Role of Foreign Banks in Monetary Policy Transmission: Evidence from Asia During the Crisis of 2008-9. Pacific-Basin Finance Journal, 29, 96-120.
23. Johnson, C. (1999). The Developmental State. İçinde M. Woo-Cumings (Ed.), The Developmental State (ss. 32-61). Cornell: Cornell University Press.
24. Jones, R. ve Yoo, B. (2011). Japan's New Growth Strategy to Create Demand and Jobs. OECD Economics Department Working Papers, No. 890. Paris: OECD Publishing.
25. Kadogawa, Y., Khut, V., Ong, L. L., Poonpatpibul, C., Shimizu, J. ve Wang, H. (2018). Asia and the CMIM in the Evolving International Monetary System. AMRO Working Paper 18-01.
26. Khor, H. E. ve Kee, R. X. (2008). Asia: A Perspective on the Subprime Crisis. MPRA Paper No. 9995, 19-23.
27. Kim, K. (2009). Global Financial Crisis and the Korean Economy. İçinde R. Glick ve M. M. Spiegel (Ed.), Asia and the Global Financial Crisis. Asia Economic Policy Conference (ss. 277-284). Alınan web sitesi: https://www.frbsf.org/wp-content/uploads/Panel_Kim.pdf.
28. Kim, W. (2009). Rethinking Colonialism and the Origins of the Developmental State in East Asia, Journal of Contemporary Asia, 39(3), 382-399.
29. Koojaroenprasit, S. (2012). The Impact of Foreign Direct Investment on Economic Growth: A Case Study of South Korea. International Journal of Business and Social Science, 3(21), 8-20.
30. Lee, H. ve Rhee, C. (2012). Lessons from the 1997 and the 2008 Crises in Korea. Asian Economic Policy Review, 7, 47-64.
31. Lemoine, F. (2013). China’s integration into the world economy: successes and new challenges. İçinde E. Florence ve P. Degraigne (Ed.), Towards a New Development Paradigm in Twenty-First Century China: Economy, Society and Politics (ss. 11-28). Londra: Routledge.
32. Liang, Y. (2010). Interdependency, Decoupling, and Dependency. International Journal of Political Economy, 39(1), 28-53.
33. Lucarelli, B. (2012). Financialization and Global Imbalances: Prelude to Crisis. Review of Radical Political Economics, 44(4), 429-447.
34. Marazzi, C. (2010). The Violence of Financial Capitalism. California: Semiotext(e).
35. Orhangazi, Ö. (2011). “Financial” vs. “Real”: An Overview of the Contradictory Role of Finance. İçinde P. Zarembka ve R. Desai (Ed.), Revitalizing Marxist Theory For Today’s Capitalism (ss. 121-151), Bingley: Emerald Group Publishing.
36. Park, Y. C. (2011). The Global Financial Crisis: Decoupling of East Asia – Myth or Reality? ADBI Working Paper Series No: 289.
37. Park, Y. J. (2017). Strengthening ASEAN+3 Regional Financial Arrangements: A New Framework Beyond CMIM. East Asian Economic Review, 21(1), 59-80.
38. Peng, I. ve Wong, J. (2008). Institutions and Institutional Purpose: Continuity and Change in East Asian Social Policy. Politics & Society, 36(1), 61-88.
39. Saad-Filho, A. (2011). Crisis in Neoliberalism or Crisis of Neoliberalism? Socialist Register, 47, 242-260.
40. Sato, T. (2009). Global Financial Crisis: Japan’s Experience and Policy Response. İçinde R. Glick ve M. M. Spiegel (Ed.), Asia and the Global Financial Crisis. Asia Economic Policy Conference (ss. 277-284). Alınan web sitesi: https://www.frbsf.org/wp-content/uploads/Panel_Sato.pdf.
41. Sawyer, M. (2013). What is Financialization? International Journal of Political Economy, 42(4), 5-18.
42. Solinger, D. J. ve Hu, Y. (2012). Welfare, Wealth and Poverty in Urban China: The Dibao and Its Differential Disbursement. The China Quarterly, 21(1), 741-764.
43. Stiglitz, J. E. (2005). More Instruments and Broader Goals: Moving toward the Post-Washington Consensus. İçinde Wider Perspectives on Global Development (ss. 16-49). New York: Palgrave Macmillan.
44. Stubbs, R. (2009). What ever happened to the East Asian Developmental State? The unfolding debate, The Pacific Review, 22(1), 1-22.
45. Sussangkarn, C. (2011). Chiang Mai Initiative Multilateralization: Origin, Development, and Outlook. Asian Economic Policy Review, 6, 203-220.
46. Thirkell-White, B. (2007). The International Financial Architecture and the Limits to Neoliberal Hegemony. New Political Economy, 12(1), 19-41.
47. Tille, C. (2012). Sailing Through This Storm? Capital Flows in Asia During the Crisis. Pacific Economic Review, 17(3), 467-488.
48. Vollmer, U. ve Bebenroth, R. (2012). The Financial Crisis in Japan: Causes and Policy Reactions by the Bank of Japan. The European Journal of Comparative Economics, 9(1), 51-77.
49. Williamson, J. (2009). A Short History of the Washington Consensus. Law & Business Review of the Americas, 15(7), 7-24.
50. Yang, L. Ve Huizenga, C. (2010). China’s Economy in the Global Economic Crisis: Impact and Policy Responses. İçinde S. Dullien, D. J. Kotte, A. Marquez ve J. Priewe (Ed.), The Financial and Economic Crisis of 2008-2009 and Developing Countries (ss. 119-149). New York: United Nations.