Morten Ougaard Copenhagen Business School. mo.ikl@cbs.dk A modified Poulantzasian Perspective on Geopolitics and Capitalism Paper for the SGIR 7th Pan-European International Relations Conference, Stockholm 9-11 September 2010 1. Introduction This paper is written for a conference section on "The return of the state? Capitalism and Geopolitics after the Crisis of Neoliberalism" and a panel herein on "Theorizing the dialectics of Global Capitalism and Geopolitics". These labels situate the paper politically in the context of the present global conjuncture ("after the crisis of neoliberalism"), and academically in the context of a recent lively debate about capitalism and geopolitics which is set in the broader context of historical materialist theories of capitalism, the state, imperialism, and the international system. By way of an introduction I will offer a few comments on these contexts. The present international conjuncture (a concept that could call for a lengthy discussion in its own right) is not only marked by the aftermath of the financial crisis and the lingering recession, but also by the rise of the emerging economies, the process of adjusting formal power relations in international institutions to new realities, noteworthy in the rise of the G20 to potentially the most important global policy coordination forum, the American transition to the Obama administration with declared ambitions of ending wars, making peace in the Middle East and revitalizing American multilateralism, and the increased political attention to climate change concomitant with a disappointing outcome from COP 15 in Copenhagen. We are in an international situation that appears to be quite different from just a few years ago. The lively theoretical debates I am referring have particularly been conducted in the pages of the journals Cambridge Review of International Affairs and Historical Materialism and have 1 been triggered among other things by the surge of scholarly debate on globalization, by some key interventions in these debates, most noteworthy Hardt and Negri's Empire (2000) and David Harvey's The New Imperialism (2003), and in the real world by the Bush administration's war against Saddam Hussein. The debates have engaged with several questions that are central for historical materialist analyses of international relations and international political economy. One theme in these debates concern the question whether capitalism requires a system of multiple states for its reproduction so that the inter-state system is inherent in the capitalist mode of production (CPM), or the interstate system predated capitalism but has become essential to its continuation, or the multiplicity of states although being a historical fact is not in any way functionally related to the logic of capital. A related issue is whether geopolitics and interstate competition on one side and capitalist competition on the other represent two separate logics or one, or perhaps two relatively autonomous logics that nevertheless are parts of the same larger systemic package, and in that case, which of the two, if any, has primacy (Teschke & Lacher 2007, Wood 2002, 2006, Callinicos 2007, 2009a, 2009b). Is a more or less autonomous logic of geopolitical competition compatible at all with historical materialism's research programme, or is it a problematic import of a "realist moment" from structural neo-realism, a major intellectual rival (Pozo-Martin 2007)? These questions imply another one, namely whether a global or transnational capitalist state is emerging, as argued by Robinson (2002, 2004), is theoretically possible from the perspective of historical materialism but not today a reality in any meaningful sense, or simply impossible in capitalist society because CPM requires the interstate system. Inherent in these problems are also questions about class and the relationship between capitalists and the state. Are the contemporary bourgeoisies, as they were labelled in classical historical materialism, primarily constituted at the national level or have we seen the emergence of a transnational or Atlantic ruling class (Pijl 1998, 2007)? Answers to this question have implications for how the above questions are addressed. Another major theme has been the nature and trajectory of US hegemony. Is it in decline or is it more pervasive than ever; was the second Gulf war and the toppling of Saddam Hussein 2 a logical product of the systemic requirements of US capitalism or was it, in Sutcliffe's summary of Arrighi's analysis, a "colossal strategic miscalculation" by the Bush Administration (Sutcliffe 2006: 76, Arrighi 2005)? Is the future prospect for a world led by the US "war without end" (Wood 2003: 143 ff) or are other scenarios plausible? This again leads on to several issues of meta-theory and methodology. One question is how determinate a theory of geopolitics can be? Is the task to develop concise theory-driven models of systemic explanation that in principle would allow for prediction, or are the actual outcomes so un-determined and depending on multiple historical contingencies that theory, when charged with explaining historical outcomes, only can be an open-ended list of potential explanatory factors to be employed in empirical analysis? Furthermore, how does the issues under debate relate to the different levels of abstraction in Marx's conceptual universe, what is the appropriate movement from the abstract to the concrete when dealing with them, and how are they located in Marx's distinction between ‘formal abstractions’ and 'real abstractions'? What is the place of the theory of CPM in the larger construct of historical materialism, and what would be the proper place of notions about geopolitics? Callinicos, for instance, emphasizes that the movement form the abstract to the concrete is not an exercise in deduction; at each lower level of abstraction new 'determinations' are added through intellectual processes that cannot be reduced to a process of logical deduction, and this also pertains to geo-politics. He also maintains that "the international system is one dimension of the capitalist mode of production" (Callinicos 2009a: 103). Sam Ashman, while concurring with this (Ashman 2009: 42) also alluded to another possibility by pointing to Poulantzas' distinction between 'modes of production' that strictly speaking does not exist in reality, and the real existing "historically determined social formations" where relations of production are reproduced (Ashman 2009:41). Ashman brings this up in the context of a debate on the relevance and potency of the notion of "uneven and combined development" for the analysis of the issues at hand, and a debate about the status of this notion in the larger theoretical edifice. This theme, which I will touch upon again below, signals that an important part of the discussion relates to the understanding of how the capitalist relations of production have been reproduced at an ever larger scale historically in a world composed of multiple territorial nation states. 3 All of these questions are important and have implications for the theorization of capitalism and geo-politics but none of them are quite simple, and it is not possible to engage thoroughly with all of them in this paper. On the other hand, however, they are interlinked so that the answer to one question has implications for or depend on how others are approached. Therefore, and to give background on "where I am coming from", before I focus on a few issues that I consider particularly important I will, as a preliminary, simply assert my position on some of the questions, without trying to justify or substantiate them. 2. Preliminary remarks The first asserted premise is the validity and relevance of the distinction between relatively autonomous levels in society, the economic, the political, and the ideational. I find that if you accept the distinction at all, the notion of relative autonomy is the only acceptable alternative to the two untenable positions of absolute autonomy, i.e. no interactions or interlinkages between the levels, and no autonomy at all, which would either negate the distinction as such or make it irrelevant because everything could be reduced to one of the levels. The second premise is the distinction between two different types of theory in historical materialism, theory of modes of production and in particular CPM, and theories of social formations where modes of production exist in reality but never in pure form. In the words of Althusser: "The Capital-Labour contradiction is never simple, but always specified by the historically concrete forms and circumstances in which it is exercised" (Althusser 2005: 106) and this always takes place in concrete society that is "a 'pre-given' complex structured whole" (Althusser 2005: 193). To this I would add that such societal wholes or totalities are always in a process of ongoing development and change. Thirdly the question at hand – geopolitics and capitalism - is located in the realm of theories of social formations and not the realm of theories of modes of production. Marx's theory of capitalism has an implied political component that specifies certain non-economic societal conditions that are required for the reproduction of capitalist relations of production. 1 But 1 This is, with some modifications, a shared ground between the German capital-logic state theory and Poulantzas. 4 there is nothing in the theory to suggest that this has to be multiple nation states and not, for instance, a centralized global state. Geo-politics have consequences for how CPM is reproduced and vice versa, but these mechanisms cannot be located in the theory of the pure CPM, they must be located in the theory of social formations (Ougaard 1990, 2004, Lacher 2002: 148, several others). This implies further that the present object for analysis is the global social totality, world society or the global social formation which is the context and social space in which capitalist relations of production are being reproduced. The fifth point is more concrete and has to do with the understanding of the capitalist relations of production in contemporary world society. The central point is that both the relations of production and the forces of production have been profoundly internationalized during the second half of the Twentieth century and this process is still ongoing. Poulantzas called attention to this as early as 1974, long before the rise of the globalization discourse, in a long article aptly entitled "the internationalization of capitalist relations and the nation state" (Part I in Poulantzas 1978). One point made in this work is that the penetration of Europe by American capital induces the European states to "take charge of the interests of the dominant imperialist [i.e. American] capital within the 'national' social formation" (Poulantzas 1978: 73). The internationalization of capital further leads Poulantzas to discard the concept of a 'national bourgeoisie' and instead, “provisionally, and for want of a better word,[ …] use the term ‘internal bourgeoisie’ “ (Poulantzas 1978: 72). Since Poulantzas wrote this almost forty years ago the international division of labour has deepened considerably and the world economy has become ever more integrated, none the least as a result of the rise of transnational corporations. These processes are well documented, for instance in Dicken 2003, UNCTAD's annual World Investment Reports, and the growing literature on global commodity or values chains and production networks (e.g. Gereffi et.al. 2005). I find that some of the participants in the debate about geopolitics seriously underestimate the extent to which the forces and relations of production have been internationalized and globalized over the last half century. The notion of uneven and combined development, for instance, while descriptively of course completely correct, does not capture this deep inter5 nationalization and the associated integration of the world economy. The reproduction of the capitalist relations of production in world society is not only uneven and combined, it is also inherently expansive, a tremendous force for economic integration as well as growth, concentration and centralization on a world scale. Globally integrated production networks and transnational value chains led by transnational corporations are, along with globalized finance and the rise of emerging economies the most salient characteristics of the capitalist mode of production in today's world. The final preliminary point I want to make here is about the possibility or reality of something akin to a global or transnational state. An important clarification is that a global political superstructure does not have to take the form of a centralized bureaucratic state as we know it from national societies. Lacher seems to imply this, when he argues that a global state is necessary but impossible (Lacher 2006: 162), as if the only conceivable global political superstructure would be a centralized capitalist state writ large, capitalism following "the ideal history of its conceptual self-realization" (ibid). What I argue and has substantiated at some length elsewhere (Ougaard 2004) and also has been argued by other scholars, such as Jan Aart Scholte (2005) is that what is happening is the development of, in Scholte's terms, a poly-centred, multi-layered system of global governance that, I argue as does Robinson (2004) albeit in a different fashion, in certain ways has state-like features. This view is not about the end of the state or the end of conflict between states, it is about the transformation of the state and its integration into a larger framework (Cox 1987), where conflicts are played out in institutionalized and largely peaceful forms. Lacher, incidentally, acknowledges that there is some reality to this when he says that the notion "of an irresistible and irreversible process of economic globalization in an age in which capital has become allpowerful and reduces states to mere transmission belts or even local branches of a global empire is incomplete and one-sided, though it undoubtedly captures an important aspect of the current conjuncture" (Lacher 2006: 163). The question for this paper, however, is not to examine how far this process has evolved, whether the glass is half full, half empty, or almost empty. I posit it as a possibility and an evolving reality that is fully compatible with historical materialism and on this basis I ask 6 questions about how to analyze it if, when and to the extent it evolves, and to address the question of geopolitics and capitalism on the basis of the recognition that this is one central feature of contemporary world society, but not the only one. The first step in this discussion is to consider the concept of geo-politics and locate it in the larger theoretical framework. 3. What is geopolitics? Traditionally geo-politics referred to “the links and causal relationships between political power and geographical space” (Østerud 1988: 192). Geopolitics was the interaction between states in pursuit of control of territory by military means, whether actual or potential, by conquest, deterrence, or intervention and for purposes of territorial expansion, defence of own territory, access to raw materials, or control of transport lanes and trade routes or points of strategic value derived from their topographical features and geographic location. The notion also referred to the consequences of territorial control for relations of power and influence between states, and strong concerns with military aspects of political power runs through much of the discourse on geopolitics. In some recent contributions, however, the focus on geographical space and military matters seems to have been somewhat loosened and the notion broadened, as for instance when Callinicos writes that "geopolitics denote all conflicts over security, territory, resources and influence among states" (2007:537-8). By adding security and influence to territory and resources the notion tends to encompass all interstate conflicts. This is in line with Harvey’s usage although he does not use the term geopolitics to denote "the territorial logic of power" (Harvey 2005: 29). He writes of "the politics of state and empire", denoting "the political, diplomatic, and military strategies invoked and used by a state […] as it struggles to assert its interests and achieve its goals in the world at large" (Harvey 2005: 26) but uses it much in the same way as Callinicos uses geopolitics. In these broader usages, then, geopolitics denotes all elements and aspects of interstate rivalry, conflict and competition. 7 I find merit in both of these usages. There can be analytical value in focussing specifically on military aspects of power in their articulation with geography, and there can be value in addressing more broadly the whole spectrum of interstate interactions and power relations. The term chosen to designate each of these aspects is largely a matter of taste. What matters in the present context, however, is that following Clausewitz’ classical dictum that war is a continuation of politics by other means, geo-politics is either identical with foreign policy or an important aspect therein. This raises the question of theorizing foreign policy in the framework of historical materialist state theory. The answer to this is straightforward in Poulantzasian state theory. Foreign policy must be understood as state activities directed towards other states and societies, and in consequence this is theorized as the extra-societal or extra-territorial aspects of the state’s function. In other words: geopolitics, when seen from the perspective of a state, is to be theorized as a state function or a modality of a state function. But this is only a partial answer because ‘geopolitics’ also refers to the systemic level, indicating that certain systemic features and dynamics emerge in the interplay between states pursuing geopolitical interests whether narrowly or broadly conceived. State actions are constrained and conditioned by systemic features, and these features emerge as a result of state actions. Examples of this could be found in arguments on how the international ‘balance of power’ exerts a powerful influence on states, as claimed in very strong versions by realist and neo-realist thinking. As indicated above this is one of the contended issues in current debates whether there is room for such a ’realist component’ in a historical materialist account of international politics. I argue that if the relative autonomy of the political is accepted, and if it is accepted that the dialectic between structures and institutions on one hand and social practice on the other involves all societal levels, then the notion of a specific international political or geopolitical dynamic is compatible with historical materialist theory. But at the same time it cannot be emphasized enough that such a political dynamic always will be specified by the historical and societal context in which it operates, and this is precisely what differentiates historical materialism from a-historical and context devoid realism in this matter (Ougaard 1990, also Ashman 2009, Lacher 2002, 2006). 8 Geopolitics, in conclusion, refers to the dynamics resulting from the interplay between modalities of the extra-territorial function of multiple states. But this begs the next question, namely what is the function of the state? Here I find Poulantzas' contribution essential, but also in one respect problematic. 3. State functions in Poulantzas In Political Power and Social Classes (1973) Poulantzas introduces the concepts of the general function of the state and the modalities of this function. He defines the state’s general function as that of being the factor of cohesion for a society, or the "regulating factor of its general equilibrium as a system" (Poulantzas 1973: 45).” The modalities are different for different types of state. They may be ideological – or, as I prefer to call it, ideational -, concerning for instance education and socialization, and they may be economic and technical, for instance the construction of irrigation systems in ancient ‘Asiatic modes of production’, or the provision of material infrastructure or regulation of the business cycle in modern capitalist states. The political modality in the strict sense (ibid: 53) is the maintenance of social order and class rule. These various economic, ideational, and political functions are all to be understood as modalities of the general or overall function, which is the cohesion of society. Poulantzas proceeds to argue that this general function is inherently political, and that all modalities of this function are ‘over-determined’ by the political function. This point has generally been accepted as one of the core elements in his early theory of the state, but there are reasons to pause and take a closer look. (It should be noted that my reading on this point in diverges from that of Bob Jessop's comprehensive 1985 discussion of Poulantzas' work). The general function is discussed in close relation to the modalities of the state. All of these modalities are modalities of the general function, which is the cohesion of a class divided society. This overall function is also political, or rather, it ‘adopts a political character’ (ibid 54), exactly because “it maintains the unity of a formation” marked by ‘class domination’. In this sense the strictly political function over-determines the other modalities. Note the separate steps in this logic: First the general role – being the factor of cohesion – is identified, then the modalities – economic, ideational, and strictly political – are acknowledged and 9 described as exactly modalities of the general function, i.e. the modalities are subordinate to the general function. Then it is claimed that the political modality over-determines the rest, and hence that the general function is inherently political. And in consequence, all modalities in the final analysis are aspects of class domination. There is a tension here: first a separation between a political modality and other modalities, then a claim that all modalities are aspects of a political general function, but a function that is political in another way than the strictly political function – expressed through the word ‘over-determination’. Everything about the state’s functions is political and related to class domination, but still there is a difference between the strictly political function and for instance the technical and economic functions. They are, apparently, political in different ways. It is illuminating to follow Poulantzas’ reasoning even closer and look at the way in which he engages with the Marxist tradition in arriving to this point. He points out that Marx, Engels, Lenin and other classics have grappled with the relation between the state’s ‘technicoeconomic’ functions and its political role – or its “social function” versus “political supremacy”, as he quotes Engels as having put it (ibid 51). Even Lenin, who more than anybody else argued that the state always is an instrument of class rule, acknowledged according to Poulantzas that the state also had ‘technico-economic functions’. This has led some theorists to separate the two aspects, so that the relation of the state to society is independent of the struggle between classes, a very old thesis that is “dear to social democrats” as Poulantzas continues in a discernibly sarcastic tone. Clearly it is important for Poulantzas to counter the view that some aspects of the state’s functions are apolitical and neutral. On the other hand it is necessary to maintain the differences between the modalities, and in particular the difference between the ‘strictly political function’ and the economic and ideational functions. His solution to this problem, then, is the claim that the ‘strictly political function’ ‘overdetermines’ the general function, which in turn determines the modalities – they are but modalities of the general function – so that the general function ‘adopts a political character" (ibid 54). I see a difficulty in this proposition: how can the ‘strictly political function’ at the same time be determined by the general function of which it merely is a modality, and be the modality that over-determines the general function? How can it be true that A determines B (a modality of A), while at the same time B over-determines A? There may be a satisfactory an10 swer to this, but Poulantzas never produced it, may be because the exact meaning of the notion of ‘over-determination’ in my reading never was made clear. Be that as it may, interestingly there are in Poulantzas’ discussion arguments that point to a different solution. Remember that he wanted to counter the view that the ‘social function’ could be separated from the political one. In this regard he quotes with approval Friedrich Engels’ comment on the Asiatic mode of production that ‘the exercise of a social function was everywhere the basis of political supremacy; and further that political supremacy has existed for any length of time only when it discharged its social function” (ibid 51). In other words: the societal and political functions are interlinked, the one presupposes the other. They are different, yet one cannot separate them. To reproduce society is to reproduce a specific social order with specific relations of power; hence one cannot say that any part of the function of cohesion is apolitical in the sense of neutral. One the other hand, one cannot reproduce social order and relations of power without reproducing society, hence the societal function cannot be reduced to the political function of domination. At this point Poulantzas draws a relevant analogy: “this role of the state correspond to the twin roles of the capitalist: those of exploitation and of organization-cum-supervision of the labour process” (ibid 53). Instead of complex notions of determination and overdetermination between ‘modalities’ that correspond to the ‘regions’ of the social formation, there is here a more straightforward understanding of a duality in the functions of the state, and this duality parallels the economic duality just mentioned. If capitalism only is exploitation, and if the state’s function is to reproduce the capitalist mode of production, then the function is only to maintain dominance, it is only political. But if capitalism also is production of use value, and the reproduction and development of the capacity to produce use value, then the capitalist state’s general function as the factor of cohesion is both dominance and societal persistence and development. Thus there is an inherent duality in the overall function of the state: it is both a function of societal persistence, and a function of maintaining historically specified relations of power. The two sides presuppose each other; none of them can be reduced to or subsumed under the other, both of them are required in the theoretical analysis of the state. If society is reproduced, so are the relations of power within society, while at the other hand relations of power cannot be reproduced if society does not persist. We cannot sort out the activities 11 and performance of any state in relation to on the one hand a neutral persistence function that equally benefits all, and on the other hand the task of dominance, of securing a social order that privileges dominant classes. Persistence is always shaped by relations of power, dominance is impossible without persistence. This means that for analytical purposes we have to analyse state practices under both aspects, we have to examine the function of persistence as well as the function of dominance. Having established above that geopolitics is a modality of the external aspects of the state's function, this means that geopolitics too must be theorized as relating to both sides of this duality: to societal persistence and to the reproduction of relations of power. The question now is where this leads when applied to geopolitics and capitalism at the systemic level, generally in the current stage in the development of CPM in world society, and specifically in the present conjuncture. 4. Then uneven and partial globalization of state functions As indicated above one of the salient characteristics of contemporary world society is the rise of global governance or what I elsewhere have labelled political globalization (Ougaard 2004). When theorizing this from the perspective of the duality of state functions, my suggestion is that political globalization understood as the rise of global governance and the concomitant internationalisation of states is theorized as the uneven and partial globalization of aspects of statehood. I refer to aspects of statehood to indicate an element in Poulantzas' thinking not mentioned above, namely that for him the concept of the state covers several aspects including the state apparatuses, i.e. state institutions, the state as a structured arena for political contestation, state power, and the functions of the state. My claim is that all of these aspects are being internationalized and globalized although unevenly and only partially. This includes the state's function in both of its aspects, power and persistence. In other words, and significant in the present context, an incomplete globalized function of persistence has emerged, having as its object the persistence of the global social formation, but being only one side of a dual function that also serves to reproduce global relations of power. 12 This global state function is not materialized in a distinctly global political superstructure separate from and above the territorial nation states. Rather it is, as indicated above, a polycentred and multi-layered system that encompasses the territorial states as they are transformed in the process of internationalization and integrated in international institutions and governance networks. In addition to their roles in relation to domestic society nation states participate in and contribute to the global function of persistence while at the same time they engage in struggles over the reproduction or re-articulation of global relations of power. A basic tenet of historical materialist state theory is that states' mode of functioning is determined by the societal context; in a globalizing world this means that there is a fourfold societal determination of states: they are determined by their function in relation to domestic relations of power, to the persistence of domestic society, by their participation in a global function of persistence and their function in relation to global relations of power. The global function of persistence has some similarities to the tasks ascribed by Robinson to the transnational capitalist state but it is broader. For Robinson the transnational state is directly related to institutional underpinnings of global capitalism; it covers in other words mainly the economic modalities of the state's function (Robinson 2004). I argue that it also includes broader concerns derived from societal persistence, such as environmental sustainability, public health, education, poverty and concerns with security and order. Geopolitics, then, being a modality of a globalizing state function, is to be theorized both as an element of a global function of persistence and as an important component in reproduction and contestation of global relations of power. Furthermore, the way single states engage in geopolitical games must be theorized as shaped by the fourfold societal determination of state practice. To illustrate this, examples of persistence-related components in contemporary geopolitics can be found in joint efforts towards nuclear disarmament, avoidance of regional wars, deterring aggression, peace-making in civil wars, the combat of terrorism and piracy and so on. They represent military aspects of a global function of securing social order, but, to reiterate, such they are also elements in global power relations. Under conditions of globalization 13 geopolitics cannot be reduced to competition and rivalry between states but neither can cooperation between states be analyzed without consideration of competition and rivalry. 5. Contemporary geopolitics and the function of persistence The global persistence function relates to a world society where capitalism is the dominant mode of production and where, within this, liberal transnational capitalism, organized in particular by large transnational corporations, and rooted in the OECD countries in North America, Europe, East Asia and the pacific, is dominant. Thus, although Pijl in my judgement overstates the degree to which an ‘Atlantic ruling class’ has emerged (Pijl 1998, 2007) if the concept of class is taken in its traditional strict sense, I concur with the conclusion that there is a high degree of unity and shared interests in this liberal transnational bloc. There are differences and conflicts between varieties of capitalism within it, but these are secondary compared to common features and mutual dependencies. But in the global social formation there are other versions of capitalism, more regulated or state organized such as in India and South Africa, while in other countries CPM is articulated with remaining elements of precapitalist modes of production (e.g. Pakistan, Afghanistan, perhaps Indonesia, parts of India) or with centrally planned economic structures (China, Vietnam, Cuba, North Korea). In this context one of the most important questions is whether capitalism has become the dominant mode of production in China. This I am not equipped to answer in any definitive way, but my hunch is that there is no way back from market economy based on competing profitseeking enterprises (whether state or privately owned) and integration in the world economy. The most salient geopolitical realities of the contemporary global social formation are first the predominance of American military power and the existence of a US centred set of military alliances (NATO, the American security arrangements with Japan, South Korea, Taiwan, Australia). These alliances have, in spite of internal disagreement for instance over Iraq and Afghanistan, proven remarkably durable, also after the end of the Cold War, which is not unrelated to the internal economic and political cohesion of the liberal transnational bloc. The second salient geopolitical feature is the existence of a group of powerful and to some extent revisionist states outside of this bloc – China, Russia and India in particular. With 14 these the dominant bloc has conflicts that are deeper than those internal to the bloc and a stronger element of rivalry but there are also cooperative arrangements of various kinds, including in the military sphere. A third salient geopolitical feature is the existence of states with potential or real nuclear capability who more fundamentally reject the dominant international order, most noteworthy of course North Korea and Iran. And finally, the existence of various local or regional ‘hotspots’ that have actual or potential consequences for the larger geopolitical picture. Among these are the Israel-Palestine conflict, the complex entanglements of nationalism, radical Islamic fundamentalism, terrorism and Western intervention in the Middle East, combined with the shakiness of the Pakistan state, and the East Asian problems associated with North Korea and Chinese aspirations on Taiwan and the South China Sea. The content of the global persistence function in world society as presently configured, under current relations of power, is at the basic level about securing the reproduction of the world order in a way that is compatible with the long term expanded reproduction of capitalism in its liberal and transnational form. This means, among other things, when focussing on geopolitical aspect, the avoidance of major wars and pursuit of nuclear disarmament and other forms of arms limitations, the management of tensions and conflicts with revisionist states, but also involving them in cooperation on aspects of the global persistence function, in particular in relation to rejectionist states and hotspots. The dominant bloc has the leading role in shaping the function of persistence, but other major states are involved in various ways as well, they also participate in this function. This does not mean, however, the end of competition and rivalry among states; the duality of globalizing state functions must not be forgotten, and reproduction and contestation of relations of power are also salient features of the global political superstructure. But the cumulative weight of the arguments presented above – the deep internationalisation and integration of the world economy, the dominance of liberal transnational capitalism, the rise of global governance and political integration among states, experiences from world wars and nuclear arms races, and more – lead me to the conclusion that the persistence aspect now is dominant in relation to the power aspect. In other words, it is unlikely that geopolitical rivalry will lead to major wars among states – the above mentioned hotspots being the 15 exception. A war between any of the countries in the dominant bloc (say France –Germany, US-Japan, Europe –US) is, based on this analysis inconceivable. And a war between this bloc or parts of it and any one of the major revisionist states is also highly unlikely. They are already partially integrated in an institutionalized global persistence function and few of their aspirations are achievable with military means, and none through war with the dominant bloc – China’s aspiration on Taiwan perhaps being a significant exception. What it does mean however, is that while conflicts persist they can be and increasingly are managed in institutional and peaceful forms. In the rise of the G20 and the ascension of the “emerging economies” we seem to see precisely a peaceful and institutionalized adjustment of the global political superstructure to changed relations of power. Lenin’s dictum that adjustment to changed relations of power due to uneven economic development only can take place through war is being disproved by history once again. This does not mean, however, that everything is well for the global persistence function. Historically American hegemony has played a key role in organizing the dominant bloc and creating the global institutions and policies through which the dual global state function is exercised. Therefore, finally, some comments on American leadership in the current conjuncture. 6. Whither hegemony? The 'crisis of neoliberalism' is, in my interpretation, the failure of a specific hegemonic project (a concept developed in Jessop 1990) that placed oil and finance interests in a hegemonic position in the US power bloc, to use Poulantzas concept for the dominant classes and class fractions in a social formation (Poulantzas 1973: 296 ff), relied for popular support and legitimacy on right wing populism and neo-conservative ideology, and pursued a unilateralist foreign policy marked by over-reliance on military power and gross negligence of the persistence aspect of the US role in the global state function. Combined with neo-conservative ideological blinders, this led, among other things, to the "colossal miscalculation" in Iraq. The project was simply not viable. 16 The Obama administration, having gained office in a hard fought electoral battle, is in my interpretation trying to forge a new hegemonic project. This project is at the most basic level about securing the international conditions – political, economic and ideational - for the persistence of US society and the conditions for the long term continued expanded reproduction of capitalist relations of production and the persistence of world society on these basic conditions. But it diverges from its predecessor in several important respects. Domestically it seeks to realign the balance of forces, to reorganize the power bloc in a way that brings productive capital in the lead and reduces the power of finance and oil interest, and builds political support and legitimacy on a greater accommodation of the interests of labour and small businesses. Internationally it seeks to reorganize the global power bloc by adopting a more cooperative and multilateralist posture towards other developed capitalist power, relying less on the use of military power, to some extent upgrading the standing of the emerging powers including China and accommodating their interests. At the same time the project puts more emphasis on shared global concerns, i.e. strengthening the function of persistence, for instance with a more intense engagement in the Middle East peace process, but also maintaining a policy of containing the military power of potential challengers, particularly China, and reigning in the so called 'rogue states' such as Iran and North Korea. As to the prospects for success for establishing and consolidating this hegemonic project, firstly it is worth recalling that from the breakdown of the first post-World War II hegemonic project in the early 1970s, it took almost ten years of crisis and economic readjustment, political realignment, and ideational reorientation before the new neo-liberal project led by Reagan and Thatcher had been consolidated. Secondly there are several beneficial conditions for the Obama project to succeed. One is the deep integration of the world economy and the fact that also the emerging powers are dependent on this. Another is the fact that American transnational corporations still constitute a powerful economic force globally. Also important is the imperative of strengthening the global function of persistence particularly concerning the environment along with the fact of a much more developed system of global governance. Finally the status of the US as by far the world's strongest military power and its extensive system of alliances, always present in the background, is also a contributing condition. 17 On the other hand, it seems clear after the failures of the Bush presidency that military power is less relevant for many of the challenges a new hegemonic project is facing. The domestic dynamics of climate politics in the US cannot be changed by military means, and neither can military power compel countries like India and China to accept climate regulations against their interest. Nor can the US force China to appreciate its currency or the EU to adopt more expansionary policies, and there are glaring difficulties in using armed forces successfully in Iraq and Afghanistan. And there are other problems. Based on observing the unfolding of the Obama project in its first eighteen months, it seems rather obvious that it is meeting stiff and stubborn resistance and facing serious challenges, both internally and externally. It appears to be highly precarious on both fronts. On the other hand again, however, presently I see no viable contending global hegemonic project that could take over if this one founders, neither in the US, nor elsewhere in the world. We are, in other words, living in interesting and uncertain times. 18 References Althusser, Louis 2005 (1965). For Marx, London & New York: Verso. Arrighi, Giovanni 2005. "Hegemony unravelling – 1", New Left Review, II, 32: 23-80. Ashman, Sam 2009. "Capitalism, uneven and combined development and the transhistoric", Cambridge Review of International Affairs, 22: 1, 29-46. Brenner, Robert 2006. “What is, and What Is Not, Imperialism?”, Historical Materialism 14:4, 79-105. Callinicos, Alex 2007. "Does capitalism need the state system?" Cambridge Review of International Affairs 20: 4, 533-549. Callinicos, Alex 2009a. "How to solve the many-state problem: a reply to the debate", Cambridge Review of International Affairs 22: 1, 89-105. Callinicos, Alex 2009b. Imperialism and Global Political Economy, Cambridge: Polity Press. Cox, Robert W. 1987. Production, Power, and World Order. Social Forces in the Making of History. New York: Columbia University Press. Dicken, Peter 2004. Global Shift. Reshaping the Global Economic Map in the 21 st Century, Fourth Edition, London etc.: Sage. Gereffi, Gary, John Humphrey and Timothy Sturgeon 2005. “The governance of global value chains”, Review of International Political Economy 12:1, 78-104. Hardt, Michael and Antonio Negri 2000. Empire, Cambridge Mass.: Harvard University Press. Harvey, David 2003. The New Imperialism. Oxford: Oxford University Press. Harvey, David 2006. The Limits to Capital. New and Fully Updated Edition, London and New York: Verso. Jessop, Bob 1985. Nicos Poulantzas. Marxist Theory and Political Strategy. Houndmills: Macmillan. Jessop, Bob 1990. State theory. Putting the capitalist state in its place, Cambridge: Polity. Lacher, Hannes 2002. “Making sense of the international system: the promises and pitfalls of contemporary Marxist theories of international relations”, pp. 147-164 in Mark Rupert and Hazel Smith (eds.) Historical Materialism and Gobalization, London and New York: Routledge. Lacher, Hannes 2006. Beyond Globalization. Capitalism, territoriality and the international relations of modernity, London & New York: Routledge. Ougaard, Morten 1990. Magt og interesser i den globale samfundsformation. Bidrag til den historiske materialismes teori om internationale relationer, Aarhus: Aarhus Universitetsforlag. Ougaard, Morten 2004. Political Globalization. States, Power and Social Forces, Houndmills: Palgrave Macmillan. Pijl, Kees van der 1998. Transnational Classes and International Relations, London & New York: Routledge. Pijl, Kees van der 2007. "Capital and the state system: a class act", Cambridge Review of International Affairs 20: 4, 619-637. Poulantzas, Nicos 1973 (1968). Political Power and Social Classes. London: New Left Books (Verso Edition 1978). Poulantzas, Nicos 1978 (1974). Classes in Comtemporary Capitalism. London: Verso. French edition: Paris: Editions du Seuil. 19 Pozo-Martin, Gonzalo 2007. "Autonomous or materialist geopolitics?", Cambridge Review of International Affairs 20: 4, 551-563. Robinson, William I. 2002. ’Capitalist globalization and the transnationalization of the state’ 210-229 in Historical Materialism and Gobalization edited by Mark Rupert and Hazel Smith, London and New York: Routledge. Robinson, William I. 2004. A Theory of Global Capitalism. Production, Class, and State in a Transnational World, Baltimore and London: The Johns Hopkins University Press. Scholte, Jan Aart 2005. Globalization. A critical introduction, Second Edition. Revised and updated. Houndmills: Palgrave Macmillan. Sutcliffe, Bob 2002. “How many capitalisms? Historical Materialism in the debates about imperialism and globalization”, 40-58 in Historical Materialism and Globalization edited by Mark Rupert and Hazel Smith, London & New York: Routledge. Sutcliffe, Bob 2006. “Imperialism Old and New: A Comment on David Harvey’s The New Imperialism and Ellen Meiksins Wood’s Empire of Capital, Historical Materialism, 14: 4, 59-78. Teschke, Benno and Lacher, Hannes 2007."The changing 'logics' of capitalist competition" Cambridge Review of International Affairs 20: 4, 565-580. Wood, Ellen Meiksins 2002. ”Global capital, national states” pp. 17-39 in Mark Rupert and Hazel Smith (eds.) Historical Materialism and Globalization, London and New York: Routledge. Wood, Ellen Meiksins 2003. Empire of Capital, London & New York: Verso. Wood, Ellen Meiksins 2006. “Logics of Power: A Conversation with David Harvey”, Historical Materialism, Volume 14:4, 9-34. Østerud, Øyvind 1988. "The Uses and Abuses of Geopolitics", Journal of Peace Research no. 2, 1988. 20