Cost Conference 2012

The debate about the consequences of the financial crisis for democracy is still at an early stage, but gained momentum in the second half of 2011 due to the ongoing insecurity of the financial system. Many established intellectuals, including Jürgen Habermas, support the claim that democracy literally disappears in the unfolding process of the financial crisis. We want to investigate the accuracy of this claim, as well as identify and evaluate empirical evidence and political consequences that can be drawn from the events and proceedings of the crisis.

The question of democracy in the wake of the financial crisis is multifaceted:

• Financial coup d´etat: The ability of finance capital to exercise power via the scenario of a possible meltdown of the whole financial system caused state leaders to socialize the debts of financial actors. Against the background of such an apocalyptic scenario, democratic choice was absent; all states reacted along more or less similar lines. Is this a sign of new trends towards the convergence of national varieties of capitalism?
• The prehistory of the crisis: how did alliances between political elites and capitalists (especially financial capital) that have emerged since the 1990s contribute to a sell-out of national wealth?
• Elite indecision: The reactions of political elites to the financial crisis reflected not only an incapability to act, but the bail-out programs and the resulting state debts also caused further limits to democratic governance and prescribed austerity politics in the long run.
• Centralization of decision-making: The way in which bail-out programs and other emergency measures were put into practice sidestepped the rights of national parliaments. This raises concerns about growing authoritarian tendencies in policy-making. Reactions of national governments to the protests that erupted in France, Spain, Greece and the UK were extraordinarily repressive compared to the past.
• Lack of strategies: There is no viable future accumulation strategy in OECD countries which could enhance the participation of populations in the wealth of the nations. The mobilizations of the Left are powerless, while the new protest movements still have no organized plan to regain democratic control.

In the 2012 Conference, we plan to address the following topics:

• The Euro-Crisis
• Restructuring the State: Welfare and Austerity, Parliaments and Executive Decision-making
• Economic Democracy
• Inequality and Democracy
• Crisis Management, Elite Disorientation
• International Relations: New Hierarchies between Nations
• Democracy on the National Level: New Hierarchies between Classes
• Resistance and Civil Society

For the detailed COST conference program please click here.

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