States and the Masters of Capital: Sovereign Lending, Old and New

The ability of states to borrow private capital depends on their creditworthiness, which has recently changed due to a shift in the social composition of financial markets. Quentin Bruneau argues that an old world of merchant banking families gave way to a new one dominated by large companies that rely on quantifiable data to describe and compare states. This book raises questions about the history of sovereign lending and suggests that another major transformation may be on the cusp.

Format: Hardback
Length: 240 pages
Publication date: 13 December 2022
Publisher: Columbia University Press

The ability of states to secure private capital for their endeavors has been subject to rigorous assessments of their creditworthiness, a practice that has been in place for some time. However, Quentin Bruneau contends that this phenomenon is relatively recent, arising as a result of a significant shift in the social composition of financial markets. Bruneau's research delves into the financiers who have lent capital to sovereigns over the past two centuries, revealing profound changes in their identities, goals, and forms of knowledge. He demonstrates how an old world, characterized by merchant banking families driven by both profit and status, gradually gave way to a new one dominated by large corporations, such as joint stock banks and credit rating agencies, solely focused on maximizing profits. These financial institutions, lacking the extensive personal connections to sovereigns that their established rivals possessed, resorted to a different form of knowledge to describe and compare states: statistics. During this epochal shift, which occurred only a few decades ago, financial markets fundamentally reconceived states. Instead of being known individually, they became mere numbers on a page. This book raises important questions about the history of sovereign lending and sheds light on the current nature of the relationship between states and financial markets. It also suggests that a significant transformation may be underway in this domain.

Dimension: 229 x 152 (mm)
ISBN-13: 9780231204682