Braudel, capitalism, and the new economic sociology

Research Foundation of SUNY Braudel, Capitalism, and the New Economic Sociology Author(s): Giovanni Arrighi Source: Review (Fernand Braudel Center), Vol 24, No 1, Braudel and the U.S.: Interlocuteurs valables? (2001), pp 107-123 Published by: Research Foundation of SUNY for and on behalf of the Fernand Braudel Center Stable URL: http://www.jstor.org/stable/40237257 Accessed: 19/12/2013 23:58 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive We use information technology and tools to increase productivity and facilitate new forms of scholarship For more information about JSTOR, please contact support@jstor.org Research Foundation of SUNY and Fernand Braudel Center are collaborating with JSTOR to digitize, preserve and extend access to Review (Fernand Braudel Center) http://www.jstor.org This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BraudelyCapitalismeand the New EconomieSociology Giovanni Arrighi THE NEW ECONOMIC SOCIOLOGY AND ITS DOUBLE SILENCE ON CAPITALISM AND BRAUDEL thefactthatcapitalismtendsto become the sole subject Despite matterof économies,neitherthe termnor the concepthas as ofacadémieécorecognizedbyreprésentatives yetbeen universally nomies"(Sombart,1951: 195) These remarksbyWernerSombartwho firstintroducedthe concept of capitalismin the social sciences-refer to the earlytwentieth Theyapplywitha venCentury The statement that"capitalism late twentieth to thè Century geance tendsto become the sole subjectmatterof économies"is certainly But thereptruertodaythanitwas at thebeginningof theCentury of académieéconomiesuse thetermor theconceptof résentatives less frequently even todaythantheydid a hundredyears capitalism ago nature In lightof theeminently (and increasingly) metaphysical ofacadémieéconomies,we shouldnotbe surprisedbythisgrowing discrepancybetweenitsactualsubjectmatterand itssemanticand in myviewis thefactthat conceptualapparatus.Farmoresurprising be in a can observed a similardiscrepancy subdiscipline(Economie in at the of that Century beginning thetwentieth emerged Sociology) reactionto the metaphysicaldispositionsof académie économies influencedbytheGermanHistoriPioneeredbyeconomistsstrongly cal School- mostnotablyMax WeberandJosephSchumpterbesides Sombarthimself-the subdisciplinewas importedinto the United versions:TalcottParsons'"structuralStatesintworadicallydifférent version.For Karl and functionalist" version; Polanyi's"substantivist" more than 40 yearsafterits transplantin the United States,ecoREViEW, xxiv, 1, 200 1, 107-23 This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions 107 108 GiovanniArrighi nomicsociologylanguishedas an académiediscipline,althoughone of the by-produets of the Parsonianversion("modernizationthein thrived the fieldof developory") newlycreatedinterdiseiplinary mentstudies.Startingin thèmid-1980's,however,thèsubdiscipline experienceda sudden renaissancegivingrise to whatits practitionersliketo cali theNew EconomieSociology The New EconomieSociology,liketheold, is firstand foremost a reactionto whatParsonshad earliercalled "The Imperialismof Economies;"thatis,thetendencyoféconomiesto setitselfup as the social scienceand, at thesame time, one and onlytruly"scientific" to invadethedomainsoftheothersocialscienceswithitsdeduetive rationalistic theoreticalapparatus.Like methodologyand formally the originalEconomie Sociology,it was also a reactionagainstthe real or imagined"economicism"of Marxism.Whetherliberai or Marxist,"economicism"is the true bete noire in "antithesis"to whichEconomie Sociologyboth old and new have definedthemselves.In spiteof theNew EconomieSociology'sdaims to be a rethatI havebeen able to vivaloftheold, thisis theonlycommonality findbetweenthetwo Byitsown admission,whatmakestheNew EconomieSociology and "em"new"in relationto theold is itsemphasison "networks" beddedness."Networksand embeddednesswere of courseprésent in Polanyi'ssubin theold EconomieSociologyas well,particularly But even in Polanyi,let alone in theearlierpiostantivist synthesis neers,theydid not oecupythecentralpositionthattheyhave come to occupyin theNew EconomieSociology.The diesis thatmarkets are embeddedin social networkshas been themainweapon in the New EconomieSociology'scritiqueof theeconomists'beliefin selfregulatingmarketsas thèbeginningand end of ali social theory the is anotherdifférence: Less recognizedbutmorefundamental New Ecoof the "social-interacüonist" "micro," approach distinctly nomieSociologyin comparisonwiththedistinctly "macro,""socialold Economie of the Sociology.Withrareexcepsystemic" approach that are the networks tions, investigatedlinkindividualeor small shortperiodsoftime.In anyevent,anyinvestigroupsoverrelatively of and "large processes,"to use Charles structures" gation "big outsidetherealmof Tilly'sexpressions(1984), lie almostcompletely the New Economie Sociology,and so does anythingresembling return Braudel'slonguedurée,an issue to whichI shallpresently This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 09 is a thirddifférence, Evenlessrecognizedand morefundamental first two: the to the in related disappearancefromtheNew only part EconomieSociologyof the centraltheoreticalconcernof theoriginal EconomieSociologywithcapitalismas historicalsocial System The extentofthisdisappearancecan be gaugedfromtheréférences to "capitalism" in The Handbook of EconomieSociology,a text pre- sentedby its editorsas "a generaiStatementand consolidationof work in economiesociology,in ail itsmanifesta[the]accelerating tions duringthepast tenyears"(Smelser& Swedberg,1994: vii) or thederivedadjective"capitalist" appearsin Although"capitalism" thetitleofordyone of thebook's 31 chapters,accordingto thesubject index 15 of the 31 chaptersand 51 of the 797 pages referto "capitalism."On doser inspection,mostof thèseréférencesare not to "capitalism"but to whatMarx,Weber,and otherwritersof an traditionhad to sayabout capitalism.In onlyfive earlieror différent chaptersand fourteenpages is theterm"capitalism"chosenbythe Butifwe look for usefulsignifier as a minimally authorsthemselves somethingmorethana passingréférenceto such thingsas "market capitalism,""statecapitalism,""organizedcapitalism,""managerial capitalism"and thelike,thecountdropsto a singleréférencein an almost800-pagebook The référencereads: Labor marketshâve formedchieflyundercapitalism,thesystemof productionin whichholdersof capital,backed bylaw and statepower,make the crucialdécisionsconcerningthe characterand allocationofwork(Tilly& Tilly,1994: 286) I hâve dwelton theNew EconomieSociologyand itssilenceon "capitalism"forthreemainreasons.First,amongthedisciplinesand subdisciplinesofthesocialsciencesas practicedin theUnitedStates Fernand (leavingaside workcarriedout at BinghamtonUniversity's Braudel Center) economie sociologyseems to me the most likely ofBraudel'swork.The factthatithas almostcompletely interlocutor ignoredBraudel'sworkis in itselfa measureof thelack of validor SecforthatworkamongU.S socialscientists valuableinterlocutors lack New Economie the for Sociology's ondly,in myviewthereasons of interestin Braudel'sworkare prettymuchthesame as thosefor its silenceon capitalismas historicalsocial System.Understanding thelatteris essentialtounderstanding whyBraudelhas failedtofind validor valuableinterlocutors amongU.S social scientists.Finally, the related to and closely above, it is myconvictionthatthe New This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions 110 GiovanniArrighi EconomieSociology,or forthatmatterthèsocialsciencesin generai, can learnto speakmeaningfully about capitalismas historicalsocial to terms with Braudel'snotionoflonguedurée System onlybycoming and his implicittheoryof historicalcapitalism.Let me deal briefly witheach of thèsethreepoints On thèfirstpointthereis notmuchto sayotherthancheckonce again The HandbookofEconomieSociologyfor référencesto Braudel Accordingto thèname index,only4 of thè31 chaptersand ofthè 797 pages hâve référencesto Braudel.One of thèseis a mereréférence to Braudel as an authorityon a spécifiehistoricalfact.That leavesthreetwo-pageréférencesto Braudel'sideas:one to Braudel's to worldcapitalism(Hamilton, attempito linkWesterncivilization about thèpossibility 1994: 188-89); anotherto Braudel'sskepticism of developinga singletheorycapturingthè essence of ali markets that have existedhistorically (Swedberg,1994: 255-56); and yet as one approach anotherto Braudel'sconceptof "world-economy" thè others to understanding relationshipbetween trade, among of human activity(Irwin& thè and spatialdistribution transport, Kasarda, 1994: 355-56) Withthè partialexceptionof thè thirdwhichoccursin thècontextofan open-endedsurveyofthèliterature on a spécifietopic-none of thèseréférencesconsistsof seriousengagementsin a dialogue or conversationwithBraudel.The use of and accidentai.And of Braudel is strictly one-sided,instrumental, course thisconcernsthè small minorityof economie sociologists who at leastuse Braudel.The vastmajority just ignoreshim The double silenceof thèNew EconomieSociologyon "capitalism"and on Braudelhas a singleroot:itsdistinctly "micro,""socialat most or eventinteractionist," approachto conjuncture-oriented ofBraudelto thèsocial economyand society.The greatcontribution sciencesis to have shownthatcapitalismcan be understoodonly and longue-durée-orìented approach througha "macro,""structural," a more in line with an such abandoned generai approachHaving tendencyof thè social sciences-thè New Economie Sociologyhas aboutcapitalism itscapacitybothofspeakingmeaningfully forfeited as historicalsocialSystemand ofappreciatingthètheoreticalsignifiof sucha System cance of thèBraudelianreconstruction This bringsme to thèthirdand mostimportantpoint-thèconis a necessary tention,thatcomingto termswiththisreconstruction conditionforthèNew EconomieSociologyand thè social sciences aboutcapitalism.This moregenerallytolearnto speakmeaningfully This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 111 contentionis largelybased on myown expériencein dealingwith historicalcapitalismthrougha dialoguewithBraudel.This is an ongoingdialogue thathas so farmaterializedin twobooks (Arrighi, 1994;Arrighi& Silveret al., 1999) and severalpublishedand unpublishedpapers(especiallyArrighi,1998; 1999; Arrighi,Hui & Hung, 1999) on thèdevelopmentofworldcapitalismas historicalsocialsystem.It is a dialoguethathas also led me to rereadin an altogether new lightsome of the classictextsof the old Economie Sociology and supplémentsto Brauand discoverin themusefulcompléments historical of del's reconstruction capitalism.In whatfollows,I shall firstsketchwhatI foundmostusefulin Braudelformyown reconstructionof historicalcapitalism.I shall thentryto show thatthe most promisingwayforthe New Economie Sociologyto learn to speak about capitalismis to enterinto a dialogue withBraudel's work BRAUDEL ON CAPITALISM ofcapitoourunderstanding Braudel'smostcrucialcontribution restson threecloselyrelateddaims talismas historicalsocialSystem The firstis thattheessentialfeatureofhistoricalcapitalismoverits has been its"flexibility" longuedurée,thatis, overitsentirelifetime, and "eclecticism"ratherthanthèconcreteformsit assumedat diftimes.The seconddaim is that,worldférentplaces and at différent the financialratherthanthe commercialor industriai historically, arenas has been the real home of capitalism.And the thirdis that withstatesratherthanmarketsis whathas enabled theidentification to capitalism triumphin themodem era For whatconcernsthefirstdaim, Braudelstrongly emphasizes and for and that"unlimited adaptation" flexibility" "capacity change ofcapseemto himthemostessentialfeaturesofthègeneraihistory in italism."If thereis, as I believe,a certainunity capitalism,from West,it is hère above ail thirteenth-century Italyto thepresent-day thatsuchunitymustbe locatedand observed"(1982: 433) In certain periods,evenlongperiods,capitalismdid seem to "specialize,"as in into the when "[it]movedso speetacularly the nineteenthCentury, led "to indus This of new world many try." regard specialization idenits 'true' as the final which industry gave capitalism flowering But this is a short-term view tity." This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions GiovanniArrighi 112 thèmostadvanced [After]thèinitialboom ofmechanization, kindof capitalismrevertedto edecticism,to an indivisibility of interestsso to speak,as ifthècharacteristic advantageof Standingat thècommandingheightsof thèeconomy,today just as muchas in thèdaysofJacquesCoeur (thèfourteenthcenturytycoon)consistedpreciselyof nothavingto confine oneself to a single choice, of being eminentlyadaptable, hence non-specialized(1982: 381; emphasisin thè originai; 1991: 213) amendedas indicatedin Wallerstein, translation Althoughthèemphasishèreis on rejectingthèpracticestiliprédominantamongMarxistsand Weberiansalikeof identifying capiBraudel'sremarksapplyalso to thèidentitalismwithindustrialism, ficationof capitalismwith commerce.This is evidentfromhis ofcapital," seconddaim thatwhattodaywe calithè"financialization farfrombeinga newbornchildofthèearly(letalone late) twenüeth has been a constantof capitalisthistory Century, Hilferding sees theworldofcapitalas a rangeofpossibila veryrécentarrivai ities,withinwhichthèfinancialvarietyas he sees it-has tendedto winout overtheothers,penetrating themfromwithin.It is a viewwithwhichI am willingto of capitalism concur,withthèprovisothatI see theplurality as goingbacka longway.Financecapitalismwas no newborn childofthe1900's;I wouldevenarguethatin thepast-in say incommercial Genoa or Amsterdam-^/fowmg· a waveofgrowth capitalismand theaccumulationofcapital on a scale beyondthe financecapitalismwas already normalchannehfor Investment, in a positionto takeoverand dominate,fora whileat least, ail the activitiesof the businessworld(Braudel, 1984: 604; emphasisadded) The point is elaboratedfurtherin Braudel's discussionof the withdrawalof the Dutch fromcommercearound 1740 to become of thiskind,suggestsBrau"thebankersof Europe." A withdrawal is a récurrent del, tendency.The same tendencyhad world-systemic Italy,and againaround alreadybeen in évidencein fifteenth-century 1560, when the leading groupsof the Genoese businessdiaspora fromcommerceto exerciseforabout 70 yearsa graduallywithdrew rule over European financescomparableto thatexercisedin the at BasletwenüethCentury Settlement bytheBankofInternational This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 113 "a rule thatwas so discreetand sophisticatedthathistoriansfora longtimefailedto noticeit."AfterthèDutch,thètendencywas replicated by the English duringand afterthe Great Depression of 1873-96, when thè end of "thèfantasticventureof thè industriai révolution"createdan overabundanceof moneycapital(Braudel, 1984: 157, 164, 242-43, 246) ventureof so-calledFordism-KeynesAfterthe equallyfantastic ianism,U.S capitalsincethe1970'shas followeda similartrajectory Braudeldoes notdiscussthefinancialexpansionofour days,which gainedmomentumin the 1980's,thatis,afterhe had completedhis we can easilyrecand Capitalism on Civilization Nevertheless, trilogy of finance "rebirth" in latest this capitalyetanotherinstance ognize whichin thepasthas been reversaito "eclecticism" ofthatrécurrent associated with the maturityof a major capitalistdevelopment "[Every]capitalistdevelopmentofthisorderseems,byreachingthe stage of financialexpansion,to hâve in some sensé announcedits it [is] a sign ofautumn"(Braudel, 1984: 246, emphasis maturity: added) of"financial Braudel'scharacterization expansion"as a symptom of ofa particularphase capitalistdevelopmentis closely ofmaturity relatedto his conceptualizationof capitalismas thè top layerof a The lowestand untilveryrecentlybroadest structure three-tiered layeris thatof an extremelyelementaryand mostlyself-sufficient economy.For wantof a betterexpression,Braudel called thisthe thesoil into life,"thestratumof thenon-economy, layerof material whichcapitalismthrustsitsrootsbutwhichitcan neverreallypenetrate"(1982: 21-22, 229) Above [thislowestlayer],cornesthefavouredterrainof the bewithitsmanyhorizontalcommunications market economy, markets:hèrea degreeofautomaticcoortweenthedifférent dination usually links supply,demand and prices Then alongside,or ratherabove thislayer,cornesthezone of the wherethe greatpredatorsroam and the law of anti-market, thejungle opérâtes.This-todayas in the past,beforeand afterthèindustriairévolution-is thereal home of capitalism (Braudel,1982: 229-30, emphasisadded) As Braudelunderscores,thetop layerthatconstitutes"thereal and less exploredthanthe home of capitalism"is less transparent thè market of intermediate economy.The transparenceof the layer This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions 114 GiovanniArrighi activitiesthatconstitute thelayerofmarketeconomyand thewealth of data (particularly data) thatthèseactivities quantitative generate, arena"ofhistorical made this have intermediate layerthe"privileged and social scientific inquiry.The layersbelowand above themarket instead are "shadowyzones" (zonesd'opacité).The bottom economy layerof materiallifeis "hardto see forlack of adequate historical documents."The upperlayer,in contrast,is hardto see because of of theactivitiesthatconstitute and complexity theactualinvisibility itssubstance(Braudel,1981: 23-24; Wallerstein,1991: 208-09) At thisexaltedlevel,a fewwealthymerchantsin eighteenthGenoa could throw centuryAmsterdamor sixteenth-century whole sectorsof thè European or evenworldeconomyinto confusion,froma distance Certain groups of privileged actorsare engagedin circuitsand calculationsthatordinary people knew nothingof Foreign exchange,for example, whichwas tiedto distanttrademovementsand to thecompliforcrédit,was a sophisticatedart open cated arrangements at most.To me, thissecond shadowy to a initiâtes few only zone,hoveringabove thesunlitworldofthemarketeconomy its upper limitso to speak,representsthe and constituting favoreddomainof capitalism Withoutthiszone, capitalism is unthinkable:thisis where it takesup residenceand prospers(Braudel,1981: 24) And this,of course,is wherecapitalismhas once again takenup whole residenceand prosperedin the 1980's and 1990's,throwing sectorsof the global economyintoconfusionfroma distance.We effects and fundamental shalllaterreturnto thèdisruptive instability financial of ofhistoricalcapitalismin itsrécurrent expansion phases examineBraudel'sthirddaim conFor now,however,let us briefly cerningthe long-termvitalityof historicalcapitalism.This is the daim thatcapitalismhas prosperedoverthecenturiesbecause ofits ofthemarketeconomy,but notwiththetransparency identification, withincreasingly powerfulstates withthe whenitbecomesidentified Capitalismonlytriumphs of the that In first state its when it is thè state, greatphase, ofVenice,Genoa, and Florence,powerlay Italiancity-states in thè hands of thè moneyedelite In seventeenth-century Holland the aristocracyof the Régentsgovernedfor the This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 115 benefitand evenaccordingto thedirectivesof thebusinessmen, merchants,and money-lenders Likewise,in England the Glorious Revolutionof 1688 markedthe accession of businesssimilarto thatin Holland (Braudel, 1977: 64-65; emphasisadded) And has not "business"been the businessof the U.S government,notjust in the 1920's underCoolidge,but also and especially in the 1980's and 1990's underReagan, Bush,and Clinton?Is not theUnitedStatesgovernedforthebenefitand evenaccordingto the and mondirectivesof corporations,privatefinancialinstitutions, UnitedStates-as in the eyedélites?To be sure,in twentieth-century in seventeenth-century Holland and in eighteenthItaliancity-states, of stateand and nineteenth-century England-the interpénétration challengedand subject to ups and capital has been recurrently downs.Butin each instance,includingtheUnitedStates,at no time more evidentthan in the course of the was the interpénétration financialexpansionsthatmarkedboth the "triumph"and the "autumn" of capitalismat everystage of its developmentas worldhistoricalsocial System thereis an AlthoughBraudeldoes notmakethepointexplicitly, betweenhissecondand thirdclaimconcerning différence important thè generaihistoryof capitalism.The second and thirdclaimsare and capacity both consistentwiththe firstthatunlimitedflexibility forchangeand adaptationare essentialfeaturesofhistoricalcapitalism Nevertheless,the second claim emphasizescontinuity/recurMorespecifirence,whereasthethirdemphasizeschange/évolution financial of the the récurrence expansionssignais conjunctural cally, and capacityforchangeand adaptationofhistoricalcapiflexibility talism.Whenever,theaccumulationof capitalproceeds"on a scale theleadingagenciesof beyondthenormalChannelsofInvestment," capitalistdevelopmenttendto withdrawfromindustry/commerce and spéculation.The identifito engagein financialintermediation of states in cationof capitalismwith increasingsize and complexity, and capacityforchangeand contrast,signaisitsstructural flexibility The states with which capitalismbecomes identifiedat adaptation social Systemare each stage of its developmentas world-historical constructs than différent the ones it had become identified quite withat earlierstages This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions 116 GiovanniArrighi Taken jointly,Braudel's threedaims concerningthe essential featuresof historicalcapitalismrevealimmediately the difficulties involvedin analyzingand theorizing or evenjust speakingmeaningfullyabout thephenomenon.Not onlyis therealhomeofcapitalism a "shadowyzone." Not onlyis capitalismsometimesat home (as in thecourseoffinancialexpansions)and sometimesawayfromhome intotradeand production).On top of (as whenitplungesmassively formand all that,itbecomesidentified withstatesof ever-changing substance.No wonderthateconomiesociologistsfocusingon spécifieplaces and spécifietimesfindit hard to turncapitalismintoa meaningfulobjeetof analysis theproblèmethatdevelopmenttheoryfaces Thus,inintroducing in the 1990's,Douglas Kinkaidand AlejandroPortesappeal toJean Baudrillard'sdictumthat"inthis'capitalist'societycapitalcan never actuallybe graspedin its présentreality"-"italwaysstaysa length ahead" of the criticswho try"to run afterit Capital cheats.It doesn'tplaybytherulesof critique." While not directedpreciselyat the field of development studies,Baudrillard'scausticcommentary aptlyportraysits contemporarydilemmas.As we near mid-pointin the last itis apparentthattheworld decade ofthetwentieth Century, of nationsis at once integrateci economicallyand sociallyto and an unprecedentedextent,and yetbesetbyfundamentally and existence national of disparateconditions increasingly for prospects change(Kinkaid& Portes,1994: 1) Froma Braudelianperspective,theproblemis not thatcapitalism "cheats."Rather,it is thatcriticsand observersgenerallyfailto horizonneeded to grasptherulesof the adopt thespatial-temporal combinationofdisparatelocai and thè ever-changing capitalistgame conditionsunder whichthe game is played out No matterhow manyof thèse local conditionswe analyzeseverallyand comparatherulesofthecapitalistgamewillremainbeyondour grasp tively, For the firstand mostimportantof thèserulesfrombeginningto of the locales and end has been preciselya continuaireshuffling and instrumensectorswithwhichcapitalismbecomes temporarily tallyidentified This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 117 TOWARDS A THEORY OF CAPITALIST HISTORY In seekingreasons forBraudel's failureto findvalid/valuable in U.S socialscience,histendencyto privilègedescripinterlocutors cornesto mind.The idea thatBraudel tionovertheoryimmediately was a greathistorianbut a poor theoristis a commonplacethatI oftenheard even in Binghamton'sBraudelianenclave.Even ifthis were a true and meaningfulstatementthoughI doubt thatit is either-it would be no excuse for not takingseriouslyBraudel's social System.As Michel account of capitalismas world-historical Lai's disMorineauhas underscoredin respondingto Cheng-chung missalofBraudelon thègroundthathe cüdnotbase hisworkon an adequate theoreticalmodel, it is not clear what model Braudel should hâve trustedsince théoriesof politicaieconomyhâve capsized so manytimes,forcingtheorists"to re-dotheircalculationsat everycrisis,expressingsometimesrepentanceand sometimesunanswerabletruisms"(1997: 629-30) Indeed, whattheoreticalmodel should Braudel hâve trusted-we mayadd paraphrasingSombartwhenthesilenceon capitalismof thesocial sciencesin generaiand of économiesin particularhas grownin directproportionto the extentthatcapitalismhas become the sole subjectmatterof économies? Economies,notesMorineau,"hasnotbeen able to throwlighton the future,nor has it managedto providethe keyto changesthat took place in thepast,"because it "developedfromintuitionsthat were 'genial' but fromthè startill-adaptedto real situationsand, became more and more illowingto the forceof circumstances, adapted as theyearspass by." And so the firsttaskis to establishwhat has been and whatthe présentis Knowledgeof the laws of astrophysics does notexemptone frompeeringat thesky.FernandBraudel's book is theéquivalentof a historical-geographical map of economie life.It fulfillsan essentialfunction.I am sure thattheresolution-in theopticalsenséoftheterm-is notyet Lai's hope for broughtintofocus,and I shareCheng-chung elucidationof themechanisms-bothnowand in theirdevelopment.It does not seem to me impossiblea priorito approachthem.However,one willreachthemonlybyimpugning obsolete economie théories,the historians'reflexin This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions 118 GiovanniArrighi bowingdownbeforemagicalformulaeand theircosyrefuge in studying a narroweventin a narrowtimespan and within a narrowgeographicalarea Thus the merk of Civilisation etcapitalisme économie matérielle, maylie in stimulating in a realdialogueamonghistorians, economists,sociologists, a tightening up ofresearchand a bettergraspingofissues;in short,thepursuitof a granddesign(Morineau,1997: 630) This bringsus back to the questionof whyBraudel'sworkhas of failedto stimulatesuch a dialogueevenamongthepractitioners the New Economie Sociology.For not onlydo thèse practitioners fullysubscribeto thecontentionthateconomietheoryis ill-adapted the to real situations.In addition,theypridethemselvesof fighting écomodeis of theoretical of the "dean" but unrealistic imperialism modeis(Hirsch, nomieswithdata-driven, "dirty-hands" interpretative disMichaels& Friedman,1990: 41-42, 46) And yet,thisempiricist Economie done to the New has Sociology position nothing bring intoa dialoguewithBraudel'swork involvedin the The problem,I suspect,lies in the difficulties kindofworld-historical analysisthataecordingtoBraudelis essential on ofthecapitalistdynamic.Thus,commenting to an understanding note a and Capitalism, strikes Civilization regarding TUly pessimistic thepossibility of followingintoBraudel'sfootsteps Ifconsistency be a hobgoblinoflittleminds,Braudelhas no troubleescapingthedemon.WhenBraudelis notbedeviling he parades indécius withour demandsforconsistency, sion.ThroughoutthesecondvolumeofCivilisation matérielle, betweencapitalhe repeatedlybeginstotreattherelationship istsand statemakers, thenveersaway Preciselybecause theconversationrangesso widely,a look back overthethird volume's subjeet matterbringsastonishment:The grand thèmesof thefirstvolume-population,food,clothing,techdisappeared! Shouldwe have nology-havealmostentirely else froma man of Braudel'stemper?He expectedanything itséléments;fondling a approaches problembyenumerating the itsironies,contradictions, and complexities; confronting various théoriesscholarshave proposed; and givingeach theoryitshistoricaldue The sum of ali théoriesis, alas, no theory If Braudel could not bring off the coup, who could? Perhapssomeone else willsucceed in writinga "total This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 119 history"thataccountsfortheentiredevelopmentof capitalAtleast ismand thefüllgrowthofthèEuropeanstateSystem forthetimebeing,we are betterofftreatingBraudel'sgiant essayas a sourceofinspirationratherthana modelofanalysis Exceptwitha Braudellendingit extrapower,a vesselso largeand complexseems destinedto sinkbeforeit reaches thefarshore(Tilly,1984: 70-71, 73-74) Tilly'srecommendationis thatwe deal withmore manageable The more manageable unitsof analysisthanentireworldSystems unitshe prefersare thè componenteof particularworldSystems, such as networksof coercionthatdüsterin statesand networksof exchangethatdusterin regionalmodesofproduction.Bysystematicallycomparingthèsecomponente,we maybe able "to fixaccounts and processeswithinparticularworldSystems of spécifiestructures to historicallygrounded generalizationsconcerningthose world (Tilly,1984: 63, 74) Systems" Knowledgeaboutcomponentsis ofcourseessentialto an understandingof the totality.But no matterhow much knowledgewe acquireabout thecomponents,we shallfailto graspthemostessentialfeatureof thècapitalistgame if,as Braudeldaims, thatfeature ofthecomponentswithwhichthe consistsofa continuaireshuffling identiand instrumentally keycapitalistplayersbecome temporarily thisprocess fiedin theirceaselesspursuitofprofit.Comprehending of ceaselesschangeand adaptationalso requiresan analysisof networksof coercionand exchangethatdüsterin spécifiestatesand markets,as Tillyrecommends.But theparticularnetworksthatwe in processesof analyzemustbe selectedbecause of theircentrality and marketsas of states of the level at the System capitalistexpansion markets.In states and of individuai level at the a whole,ratherthan mapofworld makingthissélection,Braudel'shistorical-geographical but an useful a me not to seems indispensablestaring just capitalism point Braudel'snotionoffinancialexpansionsas the More specifically, of closingphase majorcapitalistdevelopmentsenables us to break downthedevelopmentofworldcapitalismintodistinctcycles,each exconsistingof a phase of material(thatis, commercial-industrial) pansion followedbya phase of financialexpansion.These cycleswhichI hâve called "systemic cyclesofaccumulation"-are centered on (indeed engenderedby) the activitiesof the particulargovern- This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions GiovanniArrighi 120 mental-business complexesthataccordingto Braudelhâve led the worldcapitalistSystem, firsttowardsthe materialand thentowards thefinancialexpansionsthatjointlyconstitute thecycles-theGenoese-Iberiancomplexin thelong sixteenthCentury, the Dutch comin the the British seventeenth Century, complexin thelong plex long and the United States complex in the long nineteenthCentury, It followsthatbyinvestigating thenetworksspun twentieth Century the thèse we elucidate by complexes properties,notjust of thèse but also of theexpandingworldcapitalistSystem spécifienetworks, 1994; (Arrighi, Arrighi& Silveret al., 1999;Arrighi& Moore,2001) Braudel'sworkis less usefulwhenwe startlookingforplausible and consistentexplanationsof thepatternsof récurrenceand évolutionthatit bringsto our attention.Braudeldoes indeed describe morethanhe theorizes.Thisdoes notmean,however,thatBraudel's foundationsor thatwewouldhâvebeen lacktheoretical descriptions betteroffif Braudel had describedless and theorizedmore.Ail it means is thatin uncoveringtheimplicittheoreticalfoundationsof Braudel's work and in explainingthe patternsthat Braudel describes,we are prettymuchon our own Braudelis as eclecticas thècapitalismhe Althoughtheoretically describes,itis not truethatin his case the"sumofail théoriesis hisaccountofcapitalism no theory,"as Tillydaims For underlying we can detecta theoreticalconstructthathas manylineagesbutalso The affinities withverysolid theoreticalframeworks some striking is withSchumpeter'sThe Theory moststrikingof thèseaffinities of Economie (1961 [1911]) Althoughto myknowledgeno Development one (Braudelincluded)has so farnoticedit,a close parallelcan be establishedbetweenBraudel'sand Schumpeter'sconceptualization of capitalismin relation(and in opposition)to a marketeconomy Terminologiesdifferbut theconceptsare muchthesame Braudel'sconceptof"market economy"("withitsmanyhorizontal and "a degreeofautomarkets" betweenthedifférent communications andprices"[1982: demand maticcoordination usually[linking] supply, flowof to Schumpeter's 229-30]) corresponds conceptof"thecircular thiscircularflow"leavesno gapsbeeconomielife."Once established, ofwants.Both and thesatisfaction effort tweenoutlayor productive are automatically (Schumpeter,1961: 38) Somesynchronized" wherein thecircularflow"a demandis,so to say,readyawaiting every comwithout supply,and nowherein the[flow]are thèsecommodities 1961:8) pléments"(Schumpeter, This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 121 The individuaihouseholdor firmacts accordingto empirdeterminedmanicallygivendata and in equallyempirically therecorrespondssomewhere To each contribution ner in thesystema daim of anotherindividuai And since ail knowfromexpériencehow much theymustcontributein orderto getwhattheywant,havingregardto the condition the circular thateach share involvesa certaincontribution, mustcancel flowofthesystemis closed,and ail contributions to which the distributhe whatever out, principleaccording 1961: tionis made (Schumpeter, 8-10) and automaticcoordinationof In thiseconomyof transparent demandand supply,capitaland capitalismare no less at home than as forBraudel,capiin Braudel'smarketeconomy.For Schumpeter, in thesenséthatitcan onlyexistand prostalismis the"anti-market" a continuai disruptionfroma distanceof the circular per through flowofeconomielife.His "capitalist economy"is a[t]hatformofeconomie organizationin whichthe goods necessaryfornew producfromtheirsettledplace in the circularflowby tionare withdrawn of purchasingpower created ad hoc" Capital is the intervention this but purchasingpower-notpurchasingpoweringenerai, nothing forthepurpose butpurchasingpowercreatedand used specifically of destroyingan existingcircularflowand creatinga new one in market"is always,as it viewof a profit.Hence, the money/capital were,the headquartersof the capitalistsystem,fromwhichordeïs go out to itsindividuaidivisions"(Schumpter,1961: 116-26) thereare also manydisAlong withtheseand otheraffinities, and Braudel's construet between ideo-typical Schumpter's crepancies historicalconstruet.It is not clear,however,whichconstruetwould gain more from mutuai elucidation.While Braudel's construet would undoubtedlygain in consistencyand darity,Schumpeter's wouldgainatleastas muchin concretenessand historicity construet ofthe mobilization Similarconsidérations applytoanysystematic theoreticalrépertoireof the social sciences thatwe maywant to undertakein orderto explainwhatBraudeldescribesbut does not crises,as wellas explain.Thus, Marx'stheoryof overaccumulation for mobile interstate that Weber'sdiesis capitalconsticompétition of the [modem] era" distinctiveness tutes "the world-historical in explainingtheréin useful are view 1978: 354), (Weber, my very currenceof lengthyperiods of fìnancialexpansionand the emer- This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions GiovanniArrighi 122 gencein thècourseof suchexpansionsofevermorepowerfulcomand businessorganizationscapable ofleadplexesof governmental a new materialexpansion(Arrighi, towards world capitalism ing 1994: 220-38; Arrighi& Silveret al., 1999: 31-35) Throughthè mobilizationof thèse and otherthéories,we can explainwhatremains unexplainedin Braudel But again, the théoriesthemselves and concreteness willgreatlygainin historicity forsocialsciIn short,Braudel'sworkoffersmanyopportunities entistsin generaiand economie sociologistsin particularto show relevantratherthan the theirworthin theorizingthe historically thatis,preciselywhereone wouldexpecttheir"comparairrelevant, for tiveadvantage"to lie Above all, it offersa goldenopportunity about and economie sociologiststo learn to speak meaningfully theorizehistoricalcapitalism.RolandBarthesonce wrote eventually thata potentsurreptitious powercarnefromthatwhichcouldnotbe named By refusingto name capitalism,académie économiesbuttressesthesurreptitious powerthatcapitalismdérivesfrommasqueras market economy.A dialoguewithBraudelis thesurestway ading of uncoveringwhatcapitalismhas reallybeen and is REFERENCES Century: Money,Power,and theOriginsofourTime.LonArrighi,Giovanni(1994) TheLong Twentieth don and New York: Verso RethinkingtheNon-Debates Arrighi,Giovanni(1998) "Capitalismand theModernWorld-System: of the 1970s,"Review,XXI, 1, Win 113-29 Arrighi,Giovanni (1999) "Globalization,State Sovereignty,and the 'Endless*Accumulationof in theWorldEconomy Capital,"in D Smith,D Solinger8cS Topik, eds., Stateand Sovereignty London: Routledge,53-73 Arrighi,Giovanni;Hui, Po-keung& Hung, Ho-fung(1999) "HistoricalCapitalismEast and West." Unpubl paper presentedat the Conference"The Rise of East Asia: 500, 150 8c50 Year Perspectives,"Institutefor Global Studies in Culture,Power and History,The Johns Hopkins Universitv, Baltimore,Dec Arrighi,Giovanni & Moore,Jason (2001) "CapitalistDevelopmentin World-HistoricalPerspective,"in R Albritton,M Itoh, R Westra8c A Zuege, eds., PhasesofCapitalistDevelopmentBooms,Crisesand Globalization.London: Palgrave,56-75 in theModernWorldSystem Arrighi,Giovanni8cSilver,Beverlyet al (1999) Chaosand Governance Minneapolis:Univ of MinnesotaPress and Capitalism.Baltimore,MD: Johns onMaterialCivilization Braudel,Fernand(1977) Aflerthoughts Hopkins Univ Press I: TheStructures and Capitalism,15th-18thCentury, Braudel,Fernand(1981) Civilization ofEveryday Life.New York: Harper and Row II: The WheeUofCommerce Braudel,Fernand(1982) Civilizationand Capitalism,15th-18thCentury, New York: Harper 8cRow III: ThePerspective Braudel, Fernand (1984) Civilizationand Capitalism,15th-18thCentury, ofthe World.New York: Haroer 8cRow This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 123 Hamilton,GaryG (1994) "Civilizationsand the Organizationof Economies," in N.J Smelser& R Swedberg,eds., TheHandbookofEconomieSociology Princeton,NJ:PrincetonUniv Press, 183-205 Hirsch, Paul; Michaels, Stuart 8c Friedman,Ray (1990) "Clean Models vs DirtyHands: Why fromSociology,"in S Zukin8cP DiMaggio,eds., Structures Economies Is Différent ofCapital: New York: CambridgeUniv Press,39-56 TheSocial Organization oftheEconomy Irwin,Michael D 8cKasarda,JohnD (1994) "Trade,Transportation,and Spatial Distribution,"in Princeton,NJ:PrinceN.J Smelser8cR Swedberg,eds., TheHandbookofEconomieSociology ton Univ Press,342-67 NationalDevelopment: Kinkaid,Douglas 8c Portes,Alejandro,eds (1994) Comparative Societyand of NorthCarolina Press Economyin theNewGlobalOrder.Chapel Hill, NC: The Univ n Morineau,Michel(1997) "A FreshLook at FernandBraudel, JournalofEuropeanEconomieHistory, XXVI, 3, Win.,627-30 New York: OxfordUniv Press ofEconomieDevelopment Schumpeter,Joseph (1961) The Theory Princeton, Smelser,NeilJ 8cSwedberg,Richard,eds (1994) TheHandbookofEconomieSociology NJ:PrincetonUniv Press Sombart,Werner(1951) "Capitalism,"in R A Seligman 8cA Johnson,eds., Encyclopedia ofthe Vol III New York: Macmillan,195-208 Social Sciences, in N.J Smelser& R Swedberg,eds., The Swedberg,Richard(1994) "Marketsas Social Structures," HandbookofEconomieSociology Princeton,NI: PrincetonUniv Press,255-82 Huge Comparions.New York: RussellSage LargeProcesses, Tilly,Charles (1984) Big Structures, Tilly,Chris 8cTilly,Charles,(1994) "CapitalistWork and Labor Markets,"in N.J Smelser8c R Princeton,NJ:PrincetonUniv.Press,283Sociology Swedberg,eds., TheHandbookofEconomie 312 SocialScience.Cambridge:PolityPress Wallerstein,Immanuel(1991) Unthinking This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions [...]... Row II: The WheeUofCommerce Braudel,Fernand(1982) Civilizationand Capitalism,1 5th-18thCentury, New York: Harper 8cRow III: ThePerspective Braudel, Fernand (1984) Civilizationand Capitalism,1 5th-18thCentury, ofthe World .New York: Haroer 8cRow This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY. .. JSTOR Terms and Conditions GiovanniArrighi 120 mental-business complexesthataccordingto Braudelhâve led the worldcapitalistSystem, firsttowardsthe materialand thentowards thefinancialexpansionsthatjointlyconstitute thecycles-theGenoese-Iberiancomplexin thelong sixteenthCentury, the Dutch comin the the British seventeenth Century, complexin thelong plex long and the United States complex in the long nineteenthCentury,... and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 121 The individuaihouseholdor firmacts accordingto empirdeterminedmanicallygivendata and in equallyempirically therecorrespondssomewhere To each contribution ner in thesystema daim of anotherindividuai And since ail knowfromexpériencehow much theymustcontributein orderto getwhattheywant,havingregardto the condition the circular thateach share... more and more illowingto the forceof circumstances, adapted as theyearspass by." And so the firsttaskis to establishwhat has been and whatthe présentis Knowledgeof the laws of astrophysics does notexemptone frompeeringat thesky.FernandBraudel's book is the quivalentof a historical-geographical map of economie life.It fulfillsan essentialfunction.I am sure thattheresolution-in theopticalsenséoftheterm-is... PhasesofCapitalistDevelopmentBooms,Crisesand Globalization.London: Palgrave,56-75 in theModernWorldSystem Arrighi,Giovanni8cSilver,Beverlyet al (1999) Chaosand Governance Minneapolis:Univ of MinnesotaPress and Capitalism.Baltimore,MD: Johns onMaterialCivilization Braudel,Fernand(1977) Aflerthoughts Hopkins Univ Press I: TheStructures and Capitalism,1 5th-18thCentury, Braudel,Fernand(1981) Civilization ofEveryday Life .New York: Harper and. .. dialogueevenamongthepractitioners the New Economie Sociology. For not onlydo thèse practitioners fullysubscribeto thecontentionthateconomietheoryis ill-adapted the to real situations.In addition,theypridethemselvesof fighting écomodeis of theoretical of the "dean" but unrealistic imperialism modeis(Hirsch, nomieswithdata-driven, "dirty-hands" interpretative disMichaels& Friedman,1990: 41-42, 46) And yet,thisempiricist... certaincontribution, mustcancel flowofthesystemis closed ,and ail contributions to which the distributhe whatever out, principleaccording 1961: tionis made (Schumpeter, 8-10) and automaticcoordinationof In thiseconomyof transparent demandand supply,capitaland capitalismare no less at home than as forBraudel,capiin Braudel'smarketeconomy.For Schumpeter, in thesenséthatitcan onlyexistand prostalismis the" anti-market" a... économiesbuttressesthesurreptitious powerthatcapitalismdérivesfrommasqueras market economy.A dialoguewithBraudelis thesurestway ading of uncoveringwhatcapitalismhas reallybeen and is REFERENCES Century: Money,Power ,and theOriginsofourTime.LonArrighi,Giovanni(1994) TheLong Twentieth don and New York: Verso RethinkingtheNon-Debates Arrighi,Giovanni(1998) "Capitalismand theModernWorld-System: of the 1970s,"Review,XXI,... grasp tively, For the firstand mostimportantof thèserulesfrombeginningto of the locales and end has been preciselya continuaireshuffling and instrumensectorswithwhichcapitalismbecomes temporarily tallyidentified This content downloaded from 113.108.133.58 on Thu, 19 Dec 2013 23:58:06 PM All use subject to JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 117 TOWARDS A THEORY OF CAPITALIST... and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 119 history"thataccountsfortheentiredevelopmentof capitalAtleast ismand thefüllgrowthofthèEuropeanstateSystem forthetimebeing,we are betterofftreatingBraudel'sgiant essayas a sourceofinspirationratherthana modelofanalysis Exceptwitha Braudellendingit extrapower,a vesselso largeand complexseems destinedto sinkbeforeit reaches thefarshore(Tilly,1984: ...BraudelyCapitalismeand the New EconomieSociology Giovanni Arrighi THE NEW ECONOMIC SOCIOLOGY AND ITS DOUBLE SILENCE ON CAPITALISM AND BRAUDEL thefactthatcapitalismtendsto become the sole subject... JSTOR Terms and Conditions BRAUDEL AND THE NEW ECONOMIC SOCIOLOGY 09 is a thirddifférence, Evenlessrecognizedand morefundamental first two: the to the in related disappearancefromtheNew only part... degreeofautomaticcoortweenthedifférent dination usually links supply,demand and prices Then alongside,or ratherabove thislayer,cornesthezone of the wherethe greatpredatorsroam and the law of anti-market, thejungle