Tag Archives: Jessop

State Capitalism Part I – Dorit Geva on Hungary’s Ordonationalism and the Parallels to Russia

Novatek Polska in Germany – a good example of a hybrid state corporation with transnational reach

A shortish first post on ‘state capitalism’ in Russia [actually there’s a previous post on this in relation to Covid and the state]. Defining state capitalism for me is important – as a precursor to more authoritatively talking about what I mean by the ‘incoherent state’ – an idea I’ve been playing with for a while now. Another reason for my interest in the term ‘state capitalism’ is that it is linked – for better or worse – with the meaning of neoliberalism in Russia.

I’m prompted to blog about it now because yesterday I read this great article by Dorit Geva on Orbán’s Hungary. I tweeted a few excerpts which provoke comparison to Russia. Here they are slightly edited: Geva argues that ‘ordonationalism’ entails: (1) a nationalist state invested in flexibilizing domestic labour; (2) state capture as means to control access to domestic accumulation; (3) a novel regime of social reproduction, linking financialization, flexibilization of labour, and a marked decline in social support. It’s interesting to reflect on the comparability with Russia where these destabilizing currents lead to the authoritarian state being forced to step in and find a (sticking-plaster) solution – this chimes with the various ‘manual control’ moments in Russian politics where elites are forced to ‘correct’ overzealous policy that threatens to completely impoverish citizens and provoke a coalescence of protestpension reform is one example of a “безальтернативно” policy that got watered down. Indeed the pension reform row-back was not some neat trick to show Putin masterfully ‘correct’ an unjust proposal, but an indication of the ‘living dead’ influence on economic policy in Russia. The so-called ‘Petersburg liberals’ still have political heft and they are still constructing policy from the same tired old flatpack Ikea version of the Washington Consensus, despite most of the rest of the developed world moving on more shabby-chic Keynesianism, post-Covid. Discussion here not specifically on pensions, but on the development of factionalism in the elite as reflected in such conflicts. Discussion here on the pension changes as neoliberal policy.

Bob Jessop’s strategic-relational approach gets a nod from Geva in her article, and this approach is quite important to me because I think it is underemphasised on work on Russia for various reasons. More on that another time.

[From a wiki:  “the state has differential effects on various political and economic strategies in a way that some are more privileged than others, but at the same time, it is the interaction among these strategies that result in such exercise of state power. This approach is called the “strategic-relational approach” and can be considered as a creative extension and development of Marx’s concept of capital not as a thing but as a social relation and Antonio Gramsci’s and Nicos Poulantzas’s concept of the state as a social relation, something more than narrow political society.”]

Funnily enough, an undergrad student (!) yesterday made a similar point to Geva’s but about Putinism. Geva writes that ‘Orban [is] contemporary manifestation of Bonapartism‘ emerging from a crisis of hegemony and class deadlock. Geva again: ‘Bonapartism for the neoliberal age; a political solution to the crisis of hegemony produced by neoliberalism, and whose strategy for accumulation of power is to take control of the state as primary arbiter over accumulation of capital’. According to this analysis, states struggle with hegemonic consent, thus turn to increasingly authoritarian policies to advance neoliberal projects that exacerbate their disruptive tendencies. Orban shows it’s possible to fortify hegemonic rule through advanced neoliberalisation. Geva cites Ian Bruff’s work on this point – a key reference for those interested in how authoritarianism is the present vector for sustaining neoliberal politics. I include a section on Bruff’s relevance to the Russian context in my article – I’ll expand on this in a future post.

Toplišek called the Hungarian path ‘counter-neoliberalisation’, incl. re-nationalization of key sectors, protectionism. However, ‘re-nationalization’ needs to be understood as form of financial nationalism which extends the logic of neoliberalism – not wholly a counterneoliberal’ move. Examples: Fidesz’s bank levy; national oligarchic dependents carving out sectors for exclusive rent collection; pension fund nationalisation – the volume of state-owned assets increased by two-and-a-half times between 2010 and 2015. Nonetheless, while there is no ‘political neoliberalism’, à la Stephanie Mudge, instead we get the central social policy plank of workfare, and individualised contractual relations, low corporate taxes and many other examples that reveal intensified neoliberal tendencies via ordonationalist policy. Geva concludes with a balancing statement: “Where Orban’s post-neoliberal prebendalism cannot fill a market niche, such as with the auto-manufacturing industry, he leaves those sectors to investment by global capital.” This is very close to my own work on transnational corporations’ place in the Russian economy. The case study of Special Economic Zones features in my work.

Some of this post relates to ideas from an article I’m writing for Sotsvlasti – a social science journal in Russia. I will expand on that in my next post, where I’ll also return to Ilya Matveev’s work on Russia as a state-capital-neoliberal hybrid. My ‘job’ right now it to try to put ethnographic skin on the political economy bones of that argument. I have some good interviews with people that went to work on contracts in the Far North for Novatek (which might serve as an example of a hybrid state-private corporation), but I need more time in the field to develop this material. I also have a lot of unused material on the SEZ in Kaluga – a ‘state within a state’ that echoes the political economic organisation of the former Soviet-era closed town I made a study of in my last book.