Jane Pollard - Gendering Capital

BLOG – WEEK 4 – Friedrich Fürstenberg

Jane Pollard - Gendering capital: Financial crisis, financialization and (an agenda for) economic geography

Jane Pollard starts her work with a very interesting statistic contemplating the devastating consequence of the financial crisis (2008). “In the UK alone, government bailouts, cash injections and other guarantees for the banks have reached £1.162 trillion” (p. 403). She furthermore suggests that one of the main triggers leading to the crises was the role of masculinity in the financial sector, also understood as “gentlemanly capitalist” or “testosterone capitalism”(p.404). Pollard explains that economic decisions are not only based on rational thought but also on gender. The main argument she aims to construct in this paper is that there were gendered dynamics that took place and can be regarded as a important cause for the crises.

Pollard explains that there has been a shift in financial crises over the course of history in terms of geography. While the main crises used to hit the global north there has been a shift towards the global south. She argues however, that feminist researchers have argued that one should not only look at the consequences regarding the south but also focus on gender issues. It is apparent that the gender role gets neglected in the north and this aspect needs more attention. After the Bretton Woods agreement the financial system transformed to neoliberal deregulation, which eased capital mobility and trade. Through deregulation financial institutions were able to take more risks, however, became increasingly dependent on debt-financed consumer demand. The consequence of is that it has given the financial sector more powers as it allows them privatize state industries. Pollard argues that feminist literatures have exposed gendered “models, methods, assumptions and practices” (p.406). Furthermore, certain theories such as the socialist capital theory or the ideology that human beings are autonomous are problematic in terms of gender. The social influence and the concept of trust is solely based on male dominance in the finance world. Moreover, there are biases in terms of neoclassical growth and macro-economic adjustment policy. Feminists have argued that there is a concept of a ‘male breadwinner bias’. A good example highlighting this is when Pollard argues that women in the Asian financial crises were far more likely to become unemployed. She argues that “Women working in so-called informal work, or in home-based enterprises or piece-rate work – low paid and usually lacking any non-wage benefits – are especially vulnerable to economic downturns” (p. 409). This is an important point because it demonstrates that males have a more secure position in the employment market.

Another point that Pollard makes is that as a cause of increased production as a cause of demand, has created inequalities for women in developing nations. The “access to education, food and medical care is being reduced to many parts of the world”(p. 410), this is due to rising prices and charges for public service. The consequence is the withdrawal from school to help in household tasks and the first victims tend to be females. Furthermore Pollard explains more recent and postcolonial gender struggles in terms of economic-geographical research. One of the main features that feminists focus on is the movement beyond formal spaces of waged work. She addresses the importance of everyday practices of “informal production, caring, love and reciprocity” (p. 412). It is essential to regard the diversity in households and how that directly influences financial networks. Feminists argue that households shape power relations “gender, class and generation” (p.413). The rise of asset inflation, such as a home for instance, becomes a speculative asset and a second income, yet, lastly creates unbalances in gender. If a male is the owner of a property it weakens the position of the women, as they are not the legal owners.

Pollard achieves to offer a broader empirical scope of economic geography and suggests that gender needs to be considered. The role of the female is often bias in the financial sector, an example of this is the following: “In discussions of financial elites, men are frequently cast as testosterone-fuelled, competitive and risk seeking, while women are often characterized as ‘emotional’” (p.415) The work allows the reader to understand that gender is an important factor when analyzing the financial sector, however, the discourse is often neglected. She also argues that the subprime crises should be used as an opportunity to look at broader cultural and moral shifts. Feminist literature can be a key resource in understanding economic geography and to moreover to have a critical response to recent developments.