Money-Power of Capital and Production of ‘New State Spaces’: A view from the Global South

Ilias Alami

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An array of innovative financial and monetary institutional and policy initiatives recently emerged across the Global South at various spatial scales: (1) the deployment of national ‘self-insurance’ strategies such as large foreign reserve accumulation, different forms of capital controls, and currency market interventions; (2) the multiplication of bilateral, sub-regional, and regional financial and monetary mechanisms, including currency-swaps and reserve-pooling arrangements, credit lines, bilateral aid, and development finance; (3) a growing participation and assertiveness in multilateral financial arrangements. After critically reviewing the existing literatures – the IPE of ‘policy space’ and the IPE of ‘financial statecraft’ – the paper deploys a ‘scalar-relational’ critical IPE approach and interprets these policy initiatives in terms of a crisis-driven production of ‘new state spaces’ across the Global South, in the context of the current period of credit-led capital accumulation. The paper argues that this process has been characterised by the contradictory extension, intensification and growing complexity of the tasks taken on by the capitalist state at various scale levels, resulting in the increasing entanglement of state power in the nested hierarchy of monetary relations, from the global scale to bodies and subjectivities.
Original languageEnglish
Number of pages18
JournalNew Political Economy
Early online date12 Sept 2017
Publication statusPublished - 2017


  • policy space
  • financial statecraft
  • Marxist political economy
  • state theory
  • scale debate
  • money


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