So anyway, yes, Harvey says neoliberalism is quasi-independent of states. I've just been trying to understand how. I'm going to read Mark Blyth's book Great Transformations next. — frank
The idea, I imagine, is that neoliberalism - although frankly I would prefer to talk here simply of capitalism - has interests and imperatives that simply do not coincide with states. So like, if you take the primary function of the state to be either say, the consolidation of sovereignty over a territory, or uncharitably, to extract the resources of a territory for the purposes of an exploiting class, the interests of capitalism - endless expansion of accumulation - do not coincide that of states.
With respect to neoliberalism in particular, you can see how this operates when states enter into commercial agreements with regard to the privatization of public resources. In these cases states cede sovereignty so that private companies take control of public resources - sometimes with 'perks' like reduced tax rates, laws that restrict competition, exceptions for environmental controls etc. And more than half the time these companies are multinationals which end up funnelling money offshore, so your population is left holding the bag of increased living costs while profits leave the country.
As an aside, Wood's
Empire of Capital, which I'm reading now, is working towards making the case that "capitalism is unique it its capacity to detach economic from extra-economic power, and that this, among other things, implies that the economic power of capital can reach far beyond the grasp of any existing or conceivable, political or military power. At the same time, capitalism's extra-economic power cannot exist with the support of extra-economic force; and that extra-economic force is today, as before, primarily supplied by the state". I'm just on the early, historical bits (dealing with the Roman, Spanish, Arab, Dutch empires etc), so I haven't got to the meat of the argument just yet, but I thought it was relevant.
(If you want to get mad, read
this shit: "Virginia’s 2006 contract with two private firms to build toll lanes on the Capital Beltway requires the state to compensate the companies whenever carpools exceed 24 percent of traffic in carpool lanes for the next forty years—“or until the builders make $100 million in profits.”; In 2008, the private consortium that owns the Northwest Parkway in Denver, Colorado, opposed improvements to a nearby public road, pointing to contract language that barred improvements—for 99 years—on city-owned roads that might divert traffic and “hurt the parkway financially.”; The state of Indiana had to reimburse the private company operating the Indiana Toll Road $447,000 in 2008 because the state waived the tolls of people who had to evacuate during severe flooding. The company also refused to allow state troopers to close the toll road during a snowstorm because it would hurt profits.")