Financialization,totality and planetary urbanization in the Chilean Andes

In a context of planetary urbanization, where vast swathes of the countryside are being enclosed on an ongoing basis in order to support a sprawling urban system, the relationship between finance and land-use change needs to be brought to the forefront. By engaging with Henri Lefebvre’s ideas of levels and totality, this paper draws analytical connections between the financialization of the transnational mining industry and the production of the financialized urban everyday in geographies of extraction. The paper does this by looking at the case of Pascua Lama, a multibillion open-cast mine to be developed in Chile by a major mining company in the context of the current global gold rush. Through this case, I show how a set of strategies pursued by financiers and corporate managers thousands of kilometers away from the extraction site, resulted in fractured spaces of urbanization shaped by socioecological plunder, dispossession and geographically uneven financial landscapes.     

Seeing financialization? Stylized facts and the economy multiple

One of the most prominent stylized facts about contemporary capitalism concerns its “financialization.” Like all economic stylized facts, however, facts about financialization are recognized by some commentators and not by others. This article offers one explanation why. It argues that the claims we can make about “the economy” depend upon how we envision that economy in the first place. The economy can be pictured in myriad ways – it is multiple, not singular – and different pictures of it enable the identification of different stylized facts about it. So it is with financialization. The article illustrates this by examining the history of two different traditions of picturing the economy. One – national accounting – increasingly has enabled financialization to be seen; the other – mainstream economics – generally has not.     

New dynamics of rent gap formation in New York City rent-regulated housing: privatization,financialization, and uneven development

ABSTRACT

To explain newfound investor interest in rent-regulated multifamily housing in New York City since 2001, this paper analyzes the transformation in ownership and management of the Riverton Houses, a large rent-regulated housing complex in northern Manhattan. The paper finds new dynamics of rent gap formation at work; rather than depressed capitalized rent attracting investment, increasing potential rent provides a new mechanism for opening rent gaps. The Riverton Houses case shows how three factors increase potentials rents: 1) changes in rent control law that provide new avenues to increase rents, 2) new financial actors and institutions that have higher expectations for risk and return, and 3) longer-term processes of uneven development at the urban scale. Altered rent gap dynamics under processes of privatization, financialization, and uneven urban development complicate the geography of reinvestment beyond a reinvested core and gentrifying periphery. Instead, the urban frontier is drawn recursively within urban space.     

Capital and conscience: poverty management and the financialization of good intentions in the San Francisco Bay Area

Social impact investing differentiates itself from traditional investing by claiming to create public social benefits alongside private profits. Globally, municipal governments are increasingly looking to this model to fund urban social services and poverty management. Through a case study of social impact investing in affordable housing in the San Francisco Bay Area, I deconstruct the financial and ideological underpinnings of this model to understand how private profits are drawn from local geographies of impoverishment. Analyzing social impact investing as a poverty politics reveals how it places preexisting, state-subsidized systems of poverty management into social impact investing portfolios, dividing impoverished spaces into new hierarchies of deservingness by incorporating private investors’ visions of what will help low-income tenants. But these processes also fail to subsume social life within housing financed in this manner, as tenant practices subverting those idealized by the state and investors persist alongside the generation of private profits.     

Oil ‘futures’: Shell’s Scenarios and the social constitution of the global oil market

This article explores the relationship between the oil industry’s representation of operating conditions in key sites of extraction and the constitution of oil futures markets. An analysis of Shell Oil’s recent Scenarios publications, the ‘Trilemma Scenarios to 2025’ and subsequent ‘Scramble and Blueprints Scenarios to 2050’, provides insight into both the (global) social construction of oil prices and the oil industry’s reaction to social resistance in its operating environment - whether in the form of movements for resource sovereignty or climate change activism. Examining the implications of these two Scenario publications for key sites of Shell investment, the Nigerian Niger Delta and the Canadian Tar Sands, the article demonstrates that understanding the discursive implications of ‘peak oil’ for the petroleum industry requires contextualizing discussions of ‘scarcity’ within business agents role in shaping oil futures markets, and private industry’s interest in the ongoing development of unconventional fossil fuel sources. While the role of deregulated futures trading receives little attention in the Shell Scenarios, speculative trading - and thus perception concerning supply among business agents - is central to shaping global oil prices and thus the social conditions of the oil market.     

Fixing financialization in the credit-constrained city

The financialization of urban development occurs even under conditions of credit constraint. The paper demonstrates that credit scarcity is an important and under-examined driver of policy improvisation and institutional development. Using the case of Tucson, Arizona, we show that local and extra-local interests overlap and cross-pollinate to produce unique hybrids – geographically specific and contingent institutional forms cultivated by local growth machines to attract outside financial interests. These dynamics are illustrated with a sales-tax-based tax increment financing district that employs “enhanced financings” to attract extra-local sources of debt and equity. We find that the financialization of urban development in the credit-constrained city is not just a process of abstraction, but also of particularization in which extra-local dollars flow through embedded local networks. We conclude with a call for greater attention to the intersections of finance and urban life in “ordinary cities”.     

Examining the influence of intellectuals on commodity speculation

Global food price volatility began shortly after Gorton and Rouwenhorst (2004, 2006) recognized that commodity index speculation was financially underexploited by institutional investors. Pro-commodity speculation and pro-index speculation arguments were not new, but gained new significance when the US Mortgage and Global Financial crises began to unfold and investors were looking for new places to funnel money. The literature has linked financial speculation by index funds and hedge funds to global food price volatility and the food riots in 2008 and 2011. The literature, however, leaves readers with the perception that index funds and hedge funds alone created the recent wave of commodity futures speculation. This paper argues that a small but important group of intellectuals were vital to the promotion and regulation of commodity speculation by index funds and hedge funds, which has affected the world as a whole.     

From financialization to operations of capital: Historicizing and disentangling the finance–farmland-nexus

This largely programmatic paper offers a new way of thinking through the incorporation of farmland into financial markets. Building on the notion of “operations of capital”, it sketches analytical entry points for scrutinizing the inner workings of agri-finance capital formation. The concept of operations can make two useful contributions to the existing discussion. First, it helps provide a more nuanced historicization of the entanglement between finance and farmland. Finance has a long history of penetrating agriculture and the new quality of the contemporary coupling of finance and farmland only becomes fully visible when adopting a more nuanced historical perspective. Rather than imagining the history of capitalism as one where industrial capitalism gives way to financialized capitalism, the concept of operations sensitizes us for the situated modes, processes and practices of financial economization that have reworked economy, society and nature at specific historical conjunctures.Second, it allows us to move beyond simply treating “financialization” as explanans. Shifting attention to the situated practical activities of global finance, it eventually helps us explore central categories of financial economization (“capital”, “resources”, “property” and “value”) as practical accomplishments rather than taking them for granted. Only then can we come to terms with how finance works through farmland in different geographical settings. Empirical material from an ongoing research project will support my arguments.     

Hegemony and resistance: Disturbing patterns and hopeful signs in the impact of neoliberal policies on small-scale fisheries around the world

This paper reviews the major themes and contributions of this Special Issue in light of a broader social science literature on how to conceptualize small-scale fisheries, the role of the state in facilitating or limiting neoliberalism, and the failure of neoliberal policies to improve conservation. It concludes with a look at ways in which neoliberalism is being undermined by emerging alternatives.     

Privatization,financialization and ocean grabbing in New Brunswick herring fisheries and salmon aquaculture

The growing literature on individual transferable quotas (ITQs) and on intensive salmon aquaculture and its negative impacts on the environment and other users of related marine space has been little connected to the developing literature on financialization and to the literature on ocean grabbing within fisheries. This paper seeks to address this gap through a case study of the recent history of herring fisheries and intensive aquaculture in New Brunswick, Canada, exploring how specific neoliberal processes – including privatization and marketization (in herring fleet ITQs and aquaculture lease systems), (re)regulation, financialization and globalization – have interacted to support the reshaping of regional fisheries from mixed small-scale, family-based, petty commodity fisheries towards vertically-integrated, corporate, financialized fisheries characterized by ocean grabbing.