During the late 1960s, the long post-war economic boom which had characterised the advanced capitalist countries began to fade away. In its wake came an equally long era of stagnation, decline, and political and economic turbulence. Unemployment, inflation, falling profitability, business failures and bankruptcies were the new order of the day, and it became commonplace to see fearful headlines about the possible collapse of the global financial system or even of accumulation itself.

Behind the economic turbulence and political transformations of recent decades is the transition from the nationstate phase of world capitalism to a new transnational phase. While many detractors of globalization focus on global trade, the process is driven by the transnationalization of capital ownership, which in turn leads to the rise of a transnational bourgeoisie that sits at the apex of the global order. Parallel to the transatlantic and transpacific integration of capital there has been an integration of Southern capitalists (...) into the emergent system of transnational capital. A transnational hegemony is replacing a declining U. S. hegemony, although supra-national structures are still not capable of providing the economic regulation and political conditions for global capitalism to function smoothly. In this period of extraordinary conflict, upheaval, and uncertainty, the role of popular classes will be crucial. But their struggles must take on a transnational perspective and engage in transnational organizing. (shrink)