Daniela Gabor Profile picture
Mar 29, 2021 15 tweets 9 min read Read on X
my paper on the new Development as Derisking paradigm, or #WallStreetConsensus, or Washington Consensus updated for age of financial globalisation, is now out!

thanks to @BJMbraun @nssylla @squirrelista @NanCAlexander @clariscap @crystalsimeoni

onlinelibrary.wiley.com/doi/full/10.11…
it all started here, a life time ago, when evidence of the portfolio glut chasing development assets in the Global South was not so difficult to come by

every time you read 'gap' or 'partnership' in climate/development conversations, these are code-words for derisking state

this creates safety net for holders of development assets, protecting their profits from

demand/political/climate/liquidity and currency risks. Image
paper develops the concept of 'green financialization':
1. Financiers as epistemic guardians of green/dirty taxonomies - greenwashing!
2. Strategies to arbitrage dirty finance regulations
3. Strategies to transfer the costs of greenwashing to the state via de‐risking Image
WSC is also a claim to power - @BJMbraun 's infrastructural power - that private finance wields to new areas of social life

#WallStreetConsensus in @FT today - António Guterres, secretary-general of the UN, calling for Derisking to mobilise private finance for development as a solution to the incoming debt crisis (h/t @AnnPettifor )

ft.com/content/abcd97… Image
last December, with @nssylla, we traced how #WallStreetConsensus hides in the Trojan Horse of the Macron Doctrine

the #WallStreetConsensus research agenda is rich:

1. The politics of the derisking state.

we shouldnt assume that ideas baked in Global North travel seamlessly to countries down South - what are local strategies for rolling out derisking state, what role for political elites? Image
It is no coincidence that 'Liquidity' is now at the core of global debates on debt vulnerability and debt relief

and president of @el_BID calls for derisking to mobilise private finance for development Image
you know we're in post Trump times when WB president calls for G20 countries to push private creditors in their jurisdictions into debt negotiations, as 'voluntary participation doesnt work' Image
Speaking of varieties of, and resistance to, derisking
one of the things I learnt early as a political economist is to ask 'works for whom?' instead of 'does it work?'

the #WallStreetConsensus is a political strategy to ensure that the climate crisis works for private finance.

theguardian.com/business/2021/…
Green(washed) conditionality/structural adjustment is coming soon to a debt distressed country near you, and it will be drawn from the Wall Street Consensus repertoire!

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Daniela Gabor

Daniela Gabor Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @DanielaGabor

Oct 17
#WallStreetConsensus & its failure to mobilise trillions in @FT

4 things missing:
a) hegemonic dominance of 'mobilising private finance' in development/climate
b) asking why hegemony
c) mushrooming scaling up initiatives
d) do we want success?

ft.com/content/481dc5…
a) Mobilising private finance remains global game - (Bridgetown, Biodiversity COP16, 4th Financing for Development conf) & national game (UK Labour gov, Brazil/Colombia/Chile decarbonisation).
*The world's most powerful political narrative that doesnt deliver
b) hegemonic not (just) because Big Finance is powerful, but postneoliberal, transformative state cant get rid of neoliberal macro - independent central bank dominating fiscal.

without macroinstitutional change- How do we pay for transformation- only one answer: private finance
Read 7 tweets
Sep 29
this is what financial capitalism looks like -

when Big Finance occupies the state and takes over the social contract, nurses struggle, grandparents struggle, parents struggle, renters struggle, private equity flourishes.
Institutionally owned nursing homes:

Read 6 tweets
Sep 9
what Draghi's report on Europe's competitiveness tells us about political economy of post-neoliberalism

1. The good:
kills neoliberal industrial policy = innovation policy while 'infant industries' is back, baby!
Image
no punches pulled on the Commission's Net Zero Industrial Act, the 2022 attempt to respond to Biden's Inflation Reduction Act with a lot of derisking talk but no money (ahem, European Sovereignty Fund) Image
Climate policy is industrial policy, and the other way around.

An important reminder that EU's climate policy was once ambitious, state-driven decarbonisation. Image
Read 10 tweets
Aug 23
Brian Deese w new #WallStreetConsensus proposal: Climate Marshall Plan & its derisking arm, Clean Energy Finance Authority.

Not old Marshall Plan 90% financed with US grants, but a derisking project, counterpoint to China's BRI & cleantech dominance

foreignaffairs.com/united-states/…
the Clean Energy Finance Authority would subsidize foreign demand for US cleantech - or derisk BlackRock renewable assets in say, Kenya with subsidies/guarantees. Image
nothing in this proposal from a top Kamala Harris advisor suggests US should enable technology transfers to countries wishing to pursue their own domestic cleantech capabilities.

in #WallStreetConsensus, Global South are consumers of American cleantech, with American dollars.
Read 7 tweets
Apr 16
Two amazing Global South progressives and a Nobel prize winner walk into an Oxfam panel on post-neoliberalism Image
Stiglitz: w neoliberalism, the growth of financial markets changed the political game tremendously
Lula 's special advisor @AAbdenur - clear mismatch - Global North openly exposing industrial policy but pushing IMF/World Bank to continue with austerity and partnerships for hyper-financialisation
Read 12 tweets
Mar 25
missing from this @FT account of the rapid rise of infrastructure as an asset class is the sustained effort that G20 governments have put into derisking infrastructure assets for institutional capital - this is the derisking state in action #WallStreetConsensus Image
@FT with @BJMbraun we've termed this a weak derisking macrofinancial regime - a set of policies (as in the G20 Infrastructure as an Asset Class agenda, or World Bank Maximising Finance for Development) that seeks to mobilise private capital into infrastructure
osf.io/preprints/soca…
Image
BlackRock 's recent acquisition of GIP is a bet that governments - under ideological or real constraints on fiscal space - will not pursue public infrastrucuture projects but instead continue to derisk private capital

Read 6 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(