Friday, September 06, 2019

Loretta Napoleoni – Rogue Economics



What links the growth in sex trade in Eastern Europe, fishing piracy in the North Sea and professional players of the online computer game World of Warcraft? According to Loretta Napoleoni they are all examples of the rise to dominance of a terrifying form of economic activity which she calls rogue economics.

In this ambitious work she attempts to show, through a wide ranging account of contemporary organised crime, that the period since the fall of the Berlin Wall is defined by the dominance of economics over politics. According to Napoleoni, "Rogue economics is not exceptional but endemic, a dark force encrypted in our social DNA, constantly lurking in the background of the societies in which we live."

Napoleoni sees a constant fight in history between politics and the tendency of rogue economics. At various times political institutions have reined in rogue economics, and given people some control over it. However, the fall of the "communist regimes", she argues, unleashed rogue economics on an unprecedented scale.

The fall of these regimes is combined with the spread of globalisation and the weakening of the nation state, which erodes politics even further in its fight against rogue economics. Despite Napoleoni's dramatic and innovative language, these are not new ideas. The argument that globalisation has weakened the nation-state and its control over the economy has been repeated consistently in recent years, but this has not made it true.

Her separation of politics and economics also misrepresents dramatically the nature of the economy. The spread of neoliberalism did not involve a retreat of politics and the nation-state. Rather the policies that drove back gains in wages and working conditions and spread privatisation both within the West and in the developing world were driven through politically.

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