Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/157979
Authors: 
Nitzan, Jonathan
Bichler, Shimshon
Year of Publication: 
1999
Citation: 
[Title:] The Political Economy of Middle East Peace. The Impact of Competing Trade Agendas [Editor:] Wright, J. J. W. [Place:] New York, NY [Publisher:] Routledge [Pages:] 73-108
Abstract: 
The purpose of this article is to offer an alternative analytical framework for understanding the long term transformation in Israel. First, we argue against the conventional separation between the “political system” and the “economic system.” This separationist approach has been popular among Israeli scholars but its analytical value is open to doubt. Second, instead of the comment aggregate/statist approach, we take the disaggregate route of political economy, accentuating the historical role played by key power groups. And, finally, rather than focus merely on domestic considerations, we claim that both the earlier military economy and the current trajectory into “peace markets” are part of a broader global developments, particularly the internationalization of business institutions and the changing nature of the capitalist nation-state. In our opinion, the sharp “U-turn” in Israeli history is intimately linked to the changing nature of capital accumulation and corporate concentration, both in Israel and in the United States. For the large core firms at the centre of the economy, which we view as principal actors in this process, accumulation and concentration are two sides of the same process. With the evolution of modern capitalism, the leading firms are increasingly driven not to maximize their profits but rather to “beat the average.” Specifically, they seek to achieve a “differential rate of accumulation” – that is, to exceed the average rate of return in the economy. However, since a differential growth in profits implies control over a growing share of the aggregate capitalized assets, for these firms the goal of accumulation means a quest for rising corporate concentration.
Subjects: 
arms
accumulation
acquisitions
capital
capitalism
centralization
competition
conflict
conglomeration
corporation
credit
crisis
debt
development
distribution
dual economy
elite
finance
globalization
growth
imperialism
distribution
IPE
Israel
labour
liberalization
M&A
merger
methodology
Middle East
military
national interest
security
oil
OPEC
ownership
Palestine
peace
politics
power
privatization
profit
ruling class
sabotage
stagflation
state
stock market
technology
TNC
United States
US
violence
war
Zionism
URL of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Book Part

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