Capital and the Debt Trap by MacPherson, Ian -- Read -- Imperial Library of Trantor

Index

Capital and the Debt Trap

Contents List of Boxes, Figures and Tables Boxes Figures Tables Foreword Acknowledgements Introduction 1 The Mother of All Crises?

Introduction How it began: the sub-prime housing market in the USA Danger ahead Bursting the global bubble Wealth destruction

Homes and pensions Jobs and plants Trade and investment

Curbing the crisis

State aid to banks: solvency and nationalization Stimulus packages State spending and solvency Governments face a public debt crisis

Which strategies have been attempted to restart growth?

Technology and industrial policy Regionalism and deleveraging Investing in commodities and SMEs Regulation to contain the worst excesses by banks and lenders

Conclusion

2 Causes and Mechanisms: The Crisis as a Debt Trap

Introduction Hypotheses concerning the causes of the crisis

The individualistic hypothesis The monetary hypothesis Problematic business models The systemic reproduction hypothesis

The three traps

The consumption trap The liquidity trap The debt trap

Conclusion

3 Shifting Control versus Ownership

Introduction The relevance of discussing the organization of economic entities Ownership and control

The evolution of the concepts of ownership and control Financialization Technification

Control versus ownership in key economic functions

The investor function The producer function

Presentee owners Workers who own nothing in the firm

The consumer function

The individual consumer The case of private finance of public projects in the access economy

Conclusion

4 Cooperatives: Importance, Resilience and Rationality

Introduction Critiques of cooperatives The economic and social importance of cooperatives in the world

Economic importance Social and employment importance Economic and social contribution that cannot be measured by conventional methods

The resilience of cooperatives to the crisis Understanding the essence of the cooperative rationality

The international cooperative standards The first layer in understanding the cooperative rationality: the international definition The second layer in understanding the cooperative rationality: the operational principles

The relation with the surrounding environment The internal functioning of the enterprise The system of financial accumulation and distribution: the third cooperative principle

Cooperative values Mutuals, a very similar type of economic organization

A political economy approach to cooperatives

5 Natividad Island Divers’ and Fishermen’s Cooperative, Mexico:Managing Natural Resources to Generate Wealth

Introduction The evolution of the cooperative Internal organization, impact of the crisis and partnerships Managing natural resources Conclusion: combining long-term environmental, economic and social interests

6 Ceralep Société Nouvelle, France: David and Goliath in the Global Economy

Introduction Evolution of Ceralep up to 2003 The petition for bankruptcy From liquidation to the establishment of the cooperative Community mobilization and fund raising The Ceralep Société Nouvelle cooperative Main lessons from the Ceralep experience, as viewed by the participants

Absentee investors versus real economy producers How Ceralep was transformed into a cooperative On the cooperative model

Conclusion

7 The Desjardins Cooperative Group: A Financial Movement for Québec’s Development

Introduction Desjardins’ first steps The Great Depression: an opportunity for the Desjardins network to grow The post-war period, the 1960s and 1970s: the debate on consumption patterns The 1980s and 1990s: the North American free trade agreement and globalization The internal debate on the group’s restructuring in the 1990s Between 2000 and the global crisis: Desjardins’ big transformation The global crisis and the future Conclusion

8 The Mondragon Cooperative Group: Local Development with a Global Vision

Introduction The first stage: education and research, self-finance and entrepreneurial development (1943–79)

The very first steps Basic characteristics of a Mondragon cooperative The birth and development of the group’s support institutions

At the root of the Mondragon experience: the educational institutions Caja Laboral, the group’s bank Lagun Aro, Mondragon’s social protection system District-based groupings among cooperatives R&D

How the bank was involved in the creation and early development of the cooperatives

The second stage: economic crisis, entry into the EU, globalization (1980–91)

The crisis of the early 1980s

The reform of the social protection system Interventions to save cooperatives in times of crisis Surplus distribution ratios and wage calculation defined by a district-based grouping to adapt to the crisis

Entry into the EU and the beginning of the Mondragon group’s restructuring

The third stage: the development of the Mondragon corporation (1991–2008)

Implementing the restructuring process Expansion and internationalization New financial mechanisms Evolution in the distribution sector Exploring new activities: social services Education and academic research R&D

The fourth stage: managing the crisis (2008–10)

Impact of the crisis on Mondragon What the group is doing to counter the effects of the crisis

Attitude Short-term measures Long term measures

Conclusion: main lessons from the Mondragon group

The effort to create sustainable jobs Strong emphasis on education and training, leading to a societal project Solidarity and cooperation among enterprises, combined with a rigorous entrepreneurial approach Equilibrium and adaptation to change Is the Mondragon model replicable?

9 The Global Crisis: Mother of All Warnings

Introduction Stepping off the trodden path The direct contribution of cooperatives to the economy

Systemic contribution Incidence in key economic activities Creating shared wealth

The indirect contribution of cooperatives to the economy as a source of inspiration Change may well be on the horizon

Notes

1 The Mother of All Crises? 2 Causes and Mechanisms 3 Shifting Control versus Ownership 4 Cooperatives 5 Natividad Island Divers’ and Fishermen’s Cooperative 6 Ceralep Société Nouvelle 7 The Desjardins Cooperative Group 8 The Mondragon Cooperative Group 9 The Global Crisis

List of Interviewees Bibliography Index

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