Does India’s Gender Budget Need a Rethink?

India was a pioneering country when it first introduced a Gender Budget in 2001 as part of its annual Financial Year Budget. Gender Budgeting (GB) highlights the inherently different experiences in receiving financial and welfare support from the state due to their differing needs, priorities and access and serves to ameliorate the barriers to economic inclusion faced by women through a plethora of state financing. 

India’s Gender Budget Statement (GBS) has been released in two parts since 2005. Each ministry highlights allocations that are – women specific allocations where 100% of the budget for a specific scheme is assigned to women and a ‘pro-women’s’ allocation, where at least 30% of the budget for a specific scheme has been assigned to women to enhance affirmative action.

Figure 1: Proportion of women’s allocation in India’s Gender Budget

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Haemorrhaging Zambia: Prequel to the Current Debt Crisis

Following a stand-off with commercial creditors and protracted but unresolved negotiations with the IMF, Zambia defaulted on its external sovereign debt on 13 November this year. While most commentary has focused exclusively on the government’s sovereign borrowing, our own research has detected massive outflows of private wealth over the past fifteen years, hidden away on an obscure part of the country’s financial account. The outflows are most likely related to the large mining companies that dominate the country’s international trade. With many other African countries also facing debt distress, the lessons of this huge siphoning of wealth from the Zambian economy need extra attention within discussions about debt justice in the current crisis. We explain here what we’ve found.

Zambia was already debt-stressed going into the COVID pandemic. The economy was hard hit following the sharp fall in international copper prices from 2013 to 2016, especially that copper made up about 72% of its exports in 2018 (including unrefined, cathodes and alloys). Following a severe currency crisis in 2015, the government entered into negotiations with the IMF but never agreed on a programme. There was some improvement in macroeconomic outlook in 2017 due to rising copper prices, which sent international investors throttling back into optimism. However, international investors again turned against the country in 2018 in the midst of the global emerging market bond sell off, which compounded the effects of severe droughts in 2018-19. As a result, the government was already teetering on the edge of default on the eve of the COVID-19 pandemic. The economic fall-out of the pandemic has since pushed the country over the edge (see an excellent analysis here).

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Knowledge Divides

This post was originally published on Menelique Magazine, issue #3 and menelique.com.

#Black Lives Matter highlights the suppression of black lives in all aspects of society, but the public interest in the movement has been limited to systemic state racism involving the brutality of white police officers against black people. The visible and visceral discriminations in the public domain are serious and warrant such interest and concern, but this focus leaves out several other issues that are of interest to the movement. 

The intellectual marginalisation of black people is one of such relatively overlooked areas. When black intellectual suppression is recognised, it is commonly held to be a mere supply problem. In this sense, black people produce little or no knowledge, there are few or no serious black scholars to engage, or the work of black scholars is not good enough. Conventional indices appear to bear out such claims. From 1987 to 2016, for example, a World Bank report suggests that the share of Africa’s contribution to the global pool of scientific knowledge as measured by scientific databases such as Web of Science declined from 1 to under 1 per cent. 

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Return of the Bond Villains

In 1825 a Javanese prince named Diponegoro touched off a five-year, ultimately unsuccessful, war of resistance against the Dutch colonial government. As detailed by Peter Carey in his biography of Diponegoro, one of the causes was a land-rent system imposed by the Dutch on the Javanese sultanate of Yogyakarta. Under this system, landowners were encouraged to rent their estates directly to European plantation owners for the production of cash crops. This had a disruptive effect on the local economy and the Governor-General ordered it halted. But there was a catch. As the land-rent system was unwound, the Javanese landowners were forced to buy out the plantation owners in order to get control of their land back.

Many had already used the rents to buy imported luxury goods, and they fell into debt paying out large and often inflated sums to the plantation owners. The sultan was expected to back-stop these debts using payments he received from the Dutch for granting them the right to collect revenue on the kingdom’s toll roads. This created a situation where a Javanese merchant travelling from Yogyakarta to Semarang had to pay fees to the Dutch toll road agents. A portion of those fees then went to the sultan, who used them to back-stop debts being incurred by Javanese landowners as they bought back their own land back from European plantation owners.

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‘Life On These Stones Is Very Hard’ – House Helps in Covid-19 Nairobi

Photo: Eric Kioko, August 2020.

By Mario SchmidtChristiane Stephan, Kawikya Judith Musa and Eric M. Kioko 

Panic! Rush! Empty sacks! Women running! Big cars passing by! Boom! All women stare at the same spot on the road: a car passing by. Within seconds, many of them rush towards it. One who was selling roasted maize, water and a few more goods leaves her place of work opposite the road and runs towards the vehicle as well. Panic and competition are in the air. Within a few minutes, the women come back, discouragement and lack of morale palpable in their bodies and faces. “What happened?”, one of those left seated asks. “The driver didn’t think we were this many, so he closed the car´s door and left!”

This scene gives insight into dynamic moments taking place along the roadsides of Nairobi’s affluent suburbs since the onset of the Covid-19 pandemic. It displays the intensified competition characterizing the job market for informal house helps looking for work and financial or material assistance. Suburbs like Kileleshwa or Kilimani present an unusual picture to those accustomed to see African cities through photographs of slums and shantytowns. Yet, here we have elegant residential areas mushroomed in leafy environments, roads with pedestrian walkways for cycling and jogging, cosmopolitan coffee joints, posh malls, and police patrols.

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Can we electrify our way out of climate change – or do the rich also need to consume less?

As the Artic sea ice rapidly melts and the communities across the world suffer dire consequences, we are experiencing the tragedies from emitting greenhouse gases from human activities into the atmosphere. Climate scientists warn humans are running out of time to bring down CO2 in the atmosphere to stay below even 2 degrees celsius, as the planet’s ecosystems become unstable and the earth becomes increasingly uninhabitable. Arguably, we already have the policies and the technology required to combat climate change. Climate scientists at COP 21 in Paris 2015 laid out roadmaps for how to transition to clean energy in time, and these clean energy roadmaps show how more jobs are created, consumers save money, and together save life on earth as we know it.

Public discussions about how to convince people and governments to stop using fossil fuel energy take two paths. One is to emphasize that people’s lifestyles don’t have to change, as long as they electrify cars and homes–putting their faith in technological progress. The other is to emphasize climate justice and point out that many middle-income and affluent families need to consume less and share their prosperity. Lifestyle changes include living in smaller homes closer to work, flying less, eating mostly plant-based diets, and not buying so much stuff that ends up in the landfill. More broadly, re-envisioning economic growth and creating a circular economy that replaces wasteful private consumption with essential public services can improve the well-being of people today and in the future.

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Covid-19 and The Myth of Convergence: The West, the Rest and the urgent need for fiscal space in the Remainder

Imagining recovery, while a pandemic rumbles on, is an ominous task. But governments around the world have been forced to contend with this challenge. Several African, Asian and Latin American economies were in precarious financial positions before the pandemic hit. Fluctuations in global commodity prices in recent years and mounting trade deficits had already forced several African countries to request the International Monetary Fund (IMF) for a range of support mechanisms including credit facilities. Debt was already reaching alarming levels. The pandemic made economic dependencies more salient, with Zambia plunging towards becoming Africa’s first pandemic-related private debt default

The recent thrust of research championing possible convergence (often based on questionable and selective use of data) between ‘developed’ and ‘developing’ countries ignores the vast range of economic trajectories of former colonies. In slapdash cross-country economic studies, a strategic use of averages and unreliable categorisation is often used to draw generalisations about large-scale change. Sweeping claims made about a rising ‘developing’ world often fail to isolate China’s rise. There is rarely any acknowledgment that most countries’ economies remain undiversified and deeply dependent on foreign actors. The data used to make the case for convergence often relies on GDP and human development indicators, rarely mentioning let alone measuring the structural transformation of economies. Structural transformation remains one of the essential facets of economies that have ‘caught up’ historically. Whether countries can retain fiscal space after this crisis will inevitably depend on the nature of structural transformation and how that has shaped national growth and dependency within the global economy.

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COVID-19: Dying for Sustainability?

The current pandemic might temporarily slow down environmentally destructive economic growth. However, claiming that we are dying for sustainability is dangerous. The global sustainability crisis is not just driven by uneconomic growth but also increasing global inequality and social stratification.

Growthmania

Suggesting that COVID-19 is a pathway to sustainability is tempting. Transnational oil corporations have halted production. Oil prices have tumbled. Plans for new oil explorations have been halted. Shale gas companies are folding up. Air travel has plummeted. So has road travel. Consequently, emission levels have dropped. Skies have cleared. Rare and remote species of animals appear to be back in sight. As recently demonstrated elsewhere, some of this optimism is based on questionable information. Others can be questioned for comparing long-term socio-ecological change with short-term outcomes of a pandemic.

Still, humanity seems to have rediscovered its sacrosanct relationship with nature. The ramifications are wide-ranging. Some employers now recognise that work can be done from home. With so many virtual conferences now taking place, it appears that international travel is not so much needed. Maybe not so many people are needed either. Australian philosopher, Peter Singer, welcomes the death of so many old people who are no longer productive. Perhaps the reduction in unsustainable population growth could also be welcome. A world that is small and serene has come.

Is this a plausible pathway to start the journey described in The Limits to Growthfirst published in 1972? The update of that work suggests that whatever the pathway, we must have limits to growth. That is evidently the argument made by political economists such as Ezra Mishan who coined the name ‘growthmania’ in The Costs of Economic Growth, published about a decade before The Limits to Growth.

Growthmania has become even more problematic in recent times.From this perspective, only a pandemic, a major rapture like COVID-19, can disrupt the path of unsustainable growth. Humanity appears to be dying for sustainability.

Over the years, however, the critique of the degrowth movement, suggests that the story is not as simple. The current socioecological crises are far more complexUneconomic growth, as Herman Daly calls it, is only one of them.

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