The world capitalist system is arguably experiencing the worst crisis in its 500 year history. World capitalism has experienced a profound restructuring through globalisation over the past few decades and has been transformed in ways that make it fundamentally distinct from its earlier incarnations. Similarly, the current crisis exhibits features that set it apart from earlier crises of the system and raise the stakes for humanity.
If we are to avert disastrous outcomes we must understand both the nature of the new global capitalism and the nature of its crisis. Analysis of capitalist globalisation provides a template for probing a wide range of social, political, cultural and ideological processes in this 21st century. Following Marx, we want to focus on the internal dynamics of capitalism to understand crisis. And following the global capitalism perspective, we want to see how capitalism has qualitatively evolved in recent decades.
The system-wide crisis we face is not a repeat of earlier such episodes such as that of the the 1930s or the 1970s precisely because capital- ism is fundamentally different in the 21st century. Globalisation constitutes a qualitatively new epoch in the ongoing and open-ended evolution of world capitalism, marked by a number of qualitative shifts in the capitalist system and by novel articulations of social power. I highlight four aspects unique to this epoch.1
First is the rise of truly transnational capital and a new global production and financial system into which all nations and much of humanity has been integrated, either directly or indirectly. We have gone from a world economy, in which countries and regions were linked to each other via trade and financial flows in an integrated international market, to a global economy, in which nations are linked to each more organically through the transnationalisation of the production process, of finance, and of the circuits of capital accumulation.