The Transformations of Contemporary Capitalisms: Seven Lessons

Capitalism is a constantly evolving socio-economic regime impelled by two core mechanisms: endo-metabolism, that is, the self-transformation of an autonomous system driven by endogenous forces, and hybridization, that is, the emergence of new configurations following failed attempts to mimic a canonical model. This vision, inspired by régulation theory, has generated a series of investigations from which seven main lessons can be derived. Firstly, East Asia has shown that the inevitability of underdevelopment could be overcome under favourable circumstances. Secondly, the various East Asian capitalisms are not a mere repetition of mature industrial ones: they display distinctive institutional architectures. Thirdly, a precise comparative analysis falsifies the hypothesis that geographical proximity implies similar capitalism brands that should converge in the long run. Fourthly, the Chinese trajectory shows that radically new configurations may emerge, built upon a surprising complementarity between typical capitalist competition and the State’s ability to monitor technological catching up and even leapfrogging. Fifthly, the patient building of complementarities between institutional forms, the productive system and specialization implies more interdependence than head-on competition among the different socio-economic regimes, provided that a stable international regime prevails. Sixthly, radical uncertainty about the future of international relations prevails nowadays because they are being transformed by converging pressures: the limits reached by global value chains, the rise of nationalist movements and governments and diverging national interests around the design of a new multipolar international regime. Consequently, all past development strategies have to be reassessed, especially those which used to rely upon direct foreign investment coupled with export-led growth: inward-looking development is now a top priority on many national agendas. These findings might help to construct a development strategy for Vietnam.