The state has become exclusively concerned with the interests of globalised capital and the domestic corporate-financial oligarchy aligned with it. The income squeeze on peasants is one consequence
Central to the “reforms” introduced in 1991 was not a “retreat of the state” in favour of the “market” as is commonly supposed, but a change in the nature of the state. This change was not necessarily a conscious decision; it was more a “spontaneous” outcome of the introduction of the “reforms” themselves.
Since the “reforms” entailed the opening of the economy to freer cross-border flows of goods and capital, including of finance which is highly mobile and whose sudden outflow can precipitate a financial crisis, the state under a “reform regime” necessarily has to ensure that the “confidence” of the international financiers in the economy remains intact. State policy therefore must always be to their liking.
This means that instead of a state that apparently stands above all classes even while promoting capitalist development, and that protects traditional petty producers, including the peasantry and the workers, against encroachments by capital, despite being a bourgeois state, as was the case earlier, the “reform regime” creates a state that becomes exclusively concerned with the interests of globalised capital, and the domestic corporate-financial oligarchy aligned with it.
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