Letters from Tomis

Book Review

Panitch, Leo, and Sam Gindin. The Making of Global Capitalism: The Political Economy of American Empire. Verso, 2012.

Overview and Purpose

Panitch and Gindin present a compelling reinterpretation of global capitalism, shifting the focus from multinational corporations (MNCs) or financial markets to the decisive role of the U.S. state. They argue that the diffusion and consolidation of capitalism worldwide is owed less to the free market itself than to deliberate strategies orchestrated by American political structures and institutions. This bold thesis reconfigures mainstream narratives that often celebrate globalization as an autonomous market-driven force.

Structure and Theoretical Foundations

The work unfolds across a detailed introduction and seven thematic chapters:

1. Making of the American State as a Globalizer – Traces historical development from the Civil War era to the post-World War II reorganization.

2. Finance, State, and Imperialism – Analyzes how U.S. policy stabilized the dollar system and created global finance infrastructure.

3. Capital-over-Labour Regimes – Explores labor relations, managerial pivots, and the dexterity of American capital in varied global settings.

4. Neoliberalism as U.S. Statecraft – Dissects neoliberal institutionalization, with attention to Washington Consensus and Bretton Woods.

5. Crisis and Hegemonic Decline – Interrogates the 2008 crisis and the shifting global order.

6. Resistance and Alternatives – Chronicles global social movements seeking emancipatory re-running of capitalism.

7. Toward a New Globalism – Offers a consummate vision of socialist internationalism from a Panitch-Gindin lens.

The authors’ theoretical stance draws from Marxist political economy, dependency theory, and Gramscian conceptions of hegemony. Their method is historical-materialist, merging archival documentation with political-institutional analysis.

Strengths

• Conceptual Clarity: The assertion that global capitalism is an active project of the American state substantially advances and revitalizes debates about globalization.

• Empirical Rigor: The historical scope—from late 19th century empire-building to the 2008 crash—is meticulously researched. Case studies (e.g., multilateral institutions, IMF, WTO, GATT) are grounded in archival detail.

• Intellectual Synthesis: Blends Marxist anatomy of capital accumulation with Gramsci on hegemony; fuses economic history, international relations, and political sociology.

• Critical Relevance: By highlighting the political underpinnings of globalization, the work politicizes the field, urging us to re-evaluate where agency truly lies.

Critiques and Limitations

• US‑centric Focus: While their thesis centers the U.S., critics might argue it overlooks emergent capitalist arrangements driven by other powers—particularly China—from the late 20th century onward.

• Ambiguity on Agency: The authors occasionally vacillate between structural explanations and strategic coherence—raising questions: was U.S. globalization always intentional or reactive?

• Prosaic Readability: At over 500 pages, its erudition comes at the cost of dense prose and repetitive exposition; non-experts may struggle, although serious scholars will be rewarded.

Key Quotes

• “Global capitalism is not a foreign burden that fell onto the U.S.—it was fashioned through the capacity and determination of American state institutions.”

• “Neoliberalism must be understood not as a spontaneous uprising of markets, but as an ideological and institutional project of American empire.”

Comparative Context

Against more orthodox takes by thinkers like Thomas Friedman (flat-world economics) or Douglass North and Barry Weingast (rational-choice economic historians), Panitch and Gindin offer a resistive and politically embedded option. They sit well alongside scholars such as David Harvey (on imperialism), Noam Chomsky (on U.S. state power), and Giovanni Arrighi (on cycles of accumulation).

Conclusion

The Making of Global Capitalism is a significant scholarly intervention that challenges complacent imaginaries of globalization as a faceless, naturistic process. By insisting on the decisive role of U.S. state power, Panitch and Gindin not only reshape debates in political economy but also provide vital tools for critical analysis and activist strategy. Dense and unrelenting at points, the book rewards careful reading and remains essential for scholars of global political economy, Marxist theory, and international relations.