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Article

Timo Jütten

Recognition can be understood as a positive acknowledgment or affirmation of a person’s existence, identity, rights, or achievement. It is sometimes said to be a necessary condition for self-confidence, self-respect, and self-esteem. Although the concept has origins in Hobbes, Rousseau, Fichte, and Hegel, it has come to renewed prominence since the early 1990s, when philosophers such as Charles Taylor and Axel Honneth developed theories of recognition. These showed that the need for social recognition underlies many social and political movements from struggles for civil and labor rights to modern multiculturalism. In social and political philosophy, Honneth has argued that three forms of social recognition—affective care, equal respect, and social esteem—are preconditions of individual autonomy and that the principles governing these three forms of recognition should be the core of a conception of social justice. According to the theory of recognition, modern capitalist society can be evaluated as a recognition order that institutionalizes the distribution of respect and social esteem according to people’s individual achievements in their contributions to socially shared goals. Methodologically, Honneth uses an approach of normative reconstruction. Rather than constructing principles of justice on the basis of hypothetical agreement, he reconstructs the normative principles that are immanent in our social practices and institutions and sometimes contain a “normative surplus” that points beyond the status quo. This approach has been very productive in elucidating the importance of social recognition in the sphere of work, but critics have suggested that it limits the scope of radical social criticism. Honneth has proposed the concept of ideological recognition, where there is a chasm between the evaluative promise entailed by a form of recognition and its material fulfilment, in order to address this problem. More generally, critics have questioned whether recognition must be understood as positive rather than ambivalent, because this limits the scope of misrecognition and means that phenomena such as interpellation or objectification cannot easily be analyzed as forms of misrecognition.

Article

Finance is frequently, but incorrectly, judged a technical matter best left to experts. Equally mistaken is the exasperated conclusion encapsulated in the phrase “people, not profits,” which holds that capitalism, private investors, and markets are simply evil. Finance is necessary for economic development, but also has profound, and often unexamined, implications for social and political spheres. Channels for financial intermediation may be public or private, and national or foreign, implying tradeoffs among organizational forms. Public banks typically are superior in providing public goods and implementing national strategic plans, but private banks and capital markets normally are more efficient, assuming competitive markets. Savings may be sought within the national economy or from abroad, with domestic savings implying a smaller pool yet less subsequent international vulnerability, and foreign inflows offering potential abundance at the cost of external dependence. This framing yields four ideal-types of long-term finance (LTF): national public finance from state development banks; national private finance from domestic private banks and capital markets; foreign public finance via bilateral or multilateral aid or state investment (including from non-traditional lenders, such as China); and foreign private finance sourced from global investors seeking returns. Both national public and foreign public finance dominated long-term investment in Latin America in the early postwar decades of import-substituting industrialization. In the 1970s through the 1990s, they were succeeded by foreign private bank loans, followed by crisis and retrenchment. In the 21st century global political and market conditions brought a resurgence of foreign capital, including from both global private investors and non-Western public sources. Worries about problems arising from Chinese public finance to Latin America are likely overblown, as the quantity remains small, except in some Bolivarian Alliance countries. However, private foreign inflows, strongly promoted by Western-led multilateral actors, from the Organisation for Economic Co-operation and Development (OECD) to the World Bank, during the 2010s, may be more problematic. Excessive dependence on private securities markets funded by globally mobile capital often undercuts achievement of other valued societal goals such as reducing inequality and ensuring democratic accountability. Notwithstanding their predictable flaws, it may be time for a reemphasis on national, and possibly regional, public development banks.