Distinctions, affiliations, and professional knowledge in financial reform expert groups

ABSTRACT

Who determines what ideas matter in reform debates? This contribution examines reform proposals from the expert groups that emerged during the recent international financial crisis. To do so it follows fractal distinctions – distinctions that replicate themselves in subsequent iterations – among the reports. Fractal distinctions, such as between ‘behaviour’ or ‘system’ as a reform focus, allow us to locate the object of regulation within expert groups, the experts' professional context and the politics behind the commissioning of work. Analysing fractal distinctions provides a useful way to understand the different stresses in reports with and without clear mandates, and the role of important members of the policy community in promoting particular reform ideas. The contribution finds that differences in ideas emerging from the financial reform expert groups reflect nested power relationships in the commissioning of work, constituent audiences and reform priorities among governing institutions, rather than distinct ‘European’ and ‘American’ ideas.

KEY WORDS:

• Expertise
• financial crisis
• financial reform
• fractal distinctions
• policy communities
• professionals.

ACKNOWLEDGEMENTS

This research was funded by the ‘Professions in International Political Economies’ project from the European Research Council (#263741-PIPES). We thank Andrew Baker, Shogo Suzuki and participants to the ‘EU in Global Financial Governance’ workshop for their valuable feedback.

Notes

1 Authors' interview, Confederation of British Industry (June 2009).

2 Author interviews, G30 report working group participant (February 2010) and Bank of England (October 2009).

3 Leonard Seabrooke directed the Warwick Commission and Eleni Tsingou was a Commissioner. We recognize that this report does not carry the same weight as reports commissioned or sanctioned by formal organizations. We include it not only for the insights into the professional dynamics of expert group writing, but also because of coverage in the financial press, including an article directly comparing it to the Bank of England's position and a report on key ideas for systemic reform in The Economist (2009, 2010).

4 Authors' participant observation. The Warwick Commission met three times prior to writing the report (January, March and June 2009). Additionally, the authors organized evidence sessions with public officials and practitioners in London (May–June 2009).

5 The Warwick Commission differed as it was half composed of political scientists, including prominent academics in the study of finance in the international political economy, such as Mark Blyth and Eric Helleiner.

6 Author interviews, US White House economic advisor (February 2009) and Bank of England (May 2009).

7 Author interview, Oesterreichische Nationalbank (May 2009).

8 Author interview, De Larosière report group member (May 2009).

Additional information

Biographical note: Leonard Seabrooke is professor of international political economy and economy sociology at the Copenhagen Business School. Eleni Tsingou is assistant professor of international political economy at the Copenhagen Business School.