Financial crisis, activist states and (missed) opportunities

Abstract

Purpose

This article seeks to discuss three key issues raised by the recent financial crisis: the rise of “activist states”; a new focus on the geopolitical effects of finance; and possible future social implications of the rapid response to crisis.

Design/methodology/approach

The paper provides an analytical overview of three of the implications of the current crisis, and introduces the idea of the “activist state” in financial markets.

Findings

The article focuses on three issues raised in connection with the recent crisis: the rapid rise of “activist states” as a result of impaired liquidity; the bringing to light of long‐neglected geopolitical spaces of finance; and the opportunities for improved social aims communication and lobbying which result from future analyses of responses to the crisis.

Originality/value

The article's focus is on the interface between finance and politics. The article introduces the idea of a financial “activist state” as a public entity which behaves like an activist shareholder in the market. The article also suggests that the political and banking reaction to the current crisis can be seen in terms of opportunities to improve communication of social, political and policy aims in the future.

Citation

Caprotti, F. (2009), "Financial crisis, activist states and (missed) opportunities", Critical Perspectives on International Business, Vol. 5 No. 1/2, pp. 78-84. https://doi.org/10.1108/17422040910938695