The framework focuses on institutional changes and leaves out the most crucial features of a capitalist economy. The 2008 economic recession was caused by problems with the main drivers of the economy. In a capitalist economy, the main drivers of the economy are market relations, capital-labor relations, and accumulation of capital. VoC framework assumes that these drivers are analyzed under the institutional theory which claims that, under the different varieties of capitalism, the features are different, but compatible with the economic systems (Witt, 2010). As described below, recent economic recession proves that VoC fails to effectively analyze the most important features of a capitalist economy.
The economic recession is best understood as the result of processes which were intended to deal with the 1970s crisis. These processes extended to the next quarter century. It is well known that neo-liberalism was the project used to deal with 1970 economic crisis. This is project legitimized policies that restored and consolidated capitalist power (Reavis, 2012). It was characterized by the use of state power to protect the interest of a few powerful capitalist. This led to money being given priority as capital thereby leading to the elimination of production circuits and the creation of financial circuits.