Abstract

http://ssrn.com/abstract=1030976
 
 

Citations (1)



 
 

Footnotes (265)



 


 



The 'PetroChina Syndrome': Regulating Capital Markets in the Anti-Globalization Era


Stephen F. Diamond


Santa Clara University - School of Law

Fall 2003

29 J. Corp. Law 39 (2003)

Abstract:     
This article argues that the process of globalization has generated a legitimation deficit that can be the source of wasteful, even destructive, social and political conflict. I stylize this outcome as "the PetroChina Syndrome," after a leading example of the kind of activity generated in response to globalization, the PetroChina Campaign, where a coalition of labor, human rights, environmental, anti-slavery and religious groups worked together to oppose the initial public offering of a major Chinese oil company led by Goldman Sachs. The article begins with a discussion of this important but largely unexplored dimension of the anti-globalization era triggered by the 1999 demonstrations in Seattle against the World Trade Organization. The Campaign and its impact are discussed in detail.

I then examine three possible arguments that shed some light on this development, including traditional securities law approaches, the broader political context and, finally, structural changes in corporate finance. These three arguments, I argue, are helpful but not sufficient. Recent work by the economist Massimo De Angelis on John Maynard Keynes and Milton Friedman helps us shape an alternative explanation rooted in understanding changes in the institutional mechanisms of the global labor and capital markets. The displacement of the trade union and collective bargaining by globalization has pushed organized labor and other groups to look to political intervention in the capital markets as an alternative means to establish legitimacy. This intervention should be encouraged to develop new institutions to respond to the growing legitimation crisis of global capitalism.

Number of Pages in PDF File: 65

Accepted Paper Series


Download This Paper

Date posted: November 23, 2007 ; Last revised: December 14, 2013

Suggested Citation

Diamond, Stephen F., The 'PetroChina Syndrome': Regulating Capital Markets in the Anti-Globalization Era (Fall 2003). 29 J. Corp. Law 39 (2003). Available at SSRN: http://ssrn.com/abstract=1030976 or http://dx.doi.org/10.2139/ssrn.1030976

Contact Information

Stephen F. Diamond (Contact Author)
Santa Clara University - School of Law ( email )
500 El Camino Real
Santa Clara, CA 95053
United States
Feedback to SSRN


Paper statistics
Abstract Views: 834
Downloads: 101
Download Rank: 150,041
Citations:  1
Footnotes:  265

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.328 seconds