Towards a New Political Economy of Food: State Capitalism and the Emergence of Neomercantilism in the Global Food System

The current restructuring of the global food system and its sociopolitical and economic coordinates has significance for comprehending the broader configuration and transformation of the contemporary global political economy. Much of the food regime literature to date has focused on power relations between the Global North and the Global South, and the neoliberal characteristics of the corporate food regime. However, this literature has often overlooked the nuances in varieties of capitalism and largely ignored the rise of ‘state capitalism’, the emergence of ‘neomercantilism’ and the incipient importance of South- South relations in the global food system. This paper contends that the neoliberal corporate food regime is in a period of transition – and the analytical contours of this emergent food regime cannot be adequately comprehended without recognising the importance of neomercantilism and the ways in which this paradigm shift is reshaping the dynamics of the global food system. This transition is typified by the proliferation of state-owned enterprises (SOEs) and sovereign wealth funds (SWFs) that are intensifying competition for natural resources across the globe. This paper examines the emergence of neomercantilism and its constitutive role in the evolving global food regime and evaluates the question – ‘To what extent does this emergent paradigm contradict or reaffirm a neoliberal food regime?’ It situates this contemporary conjecture in the global food regime within the context of a transition from a unipolar world order under US hegemony towards a multipolar order and a multipolar global food system. This transition is characterised by the rise of Brazil, Russia, India and China (BRICs), and the emergence of state capitalism and neomercantilism. Additionally, the dynamics of the proliferation of these entities and their role in securing global supply chains for food, feed and fuel through the acquisition of foreign land and natural resources, are also examined.