Colonialism and Indian Famines: A Response

Tamoghna Halder criticized one of my writings on nineteenth-century Indian famines. Halder distorts my views and wrongly implies that I suppressed data. He misreads the very nature of the Indian famine debate, thinking it is about facts. It is not. It is about method, about how economic historians and development scholars should read the history of climatic shocks. The piece demands a response and a clarification of the issues involved.

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The Academic Labour Movement: Lessons from the New School and Beyond

“At its best, one of the most creative activities is being involved in a struggle with other people, breaking out of our isolation, seeing our relations with others change, discovering new dimensions in our lives … it [is] a powerful collective experience”.

Silvia Federici, 1984

News broke on the very last day of 2022 that members of the New School’s part-time faculty (PTF) union – ACT-UAW 7902 – had voted to ratify a new five-year contract, following what some are calling the longest adjunct strike in American history (Hamberg, 2022). A ’tentative agreement’ was reached on December 10th, after almost a month of strike action where more than 1,600 PTF members had taken to the picket line. Their existing contract had expired, and there was no sign of a satisfactory renewal. The dispute was multifaceted, but primarily concerned poor pay, uncompensated labour time, general job security and health insurance coverage.

The agreement solidified a historic pay increase (the largest PTF at the New School have ever received), as well as an enhanced offer for paid family leave, improved terms for annualisation, compensation for labor performed outside of the classroom and improvements in health care access (Hamberg, 2022). Whilst there is much to be celebrated in these gains, for the New School community this was a month-long struggle marked with uncertainty, tension, and growing hostility. The disconnect between the university’s administration and its community of faculty and students was made painfully, publicly evident. Observers couldn’t help but call hypocrisy on an institution founded on radical values employing “corporate union-busting tactics … antithetical to [its] progressive heritage” (Hamberg, 2022).

Much can be gleaned from this contained episode: the state of higher education following a period of its incessant marketisation; the power of organised labour to rally against exploitation; the role higher education specifically can play in a wider workers’ movement. This blog post will attempt to place the New School’s recent ACT-UAW 7902 strike in its wider context, that of an (inter)national worker movement, both within the higher education sector and beyond. By doing this, I will elicit some of the unique contributions academics, other university workers and students themselves can offer such a movement.

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Structural Transformation: Then and Now

by C.R.Yadu and Sahil Mehra

A major theme that dominates the literature on development economics is the narrative of ‘Structural Transformation’, which, based on the experience of developed economies, envisages a gradual ‘modernisation’ of the economy. This process is expected to unfold in a similar way across the economies of global South, where the importance of non-agriculture/high-productivity/capitalist sectors in terms of both contribution to national income and labour employment would increase and that of agriculture/low-productivity/pre-capitalist sectors would fall, ultimately leading to dissolution of this dualist structure of the economy (Lewis, 1954; Kaldor, 1967; Kuznets, 1968). This transformation is expected to bring productivity gains across all sectors, reduce poverty, and lead to high levels of economic prosperity. According to Monga and Yifu Lin (2019), structural transformation is “arguably the single most significant concept and social goal in the global quest for prosperity and world peace.”

However, many of the economies of the global South have not been able to undergo this expected path of structural transformation. For example, in 2019, for sub-Saharan Africa, the average contribution of agriculture to GDP has been around 14% while the proportion of population employed in agriculture is 53%. The GDP contribution and employment figures range from 8% and 27% for East Asian and Pacific economies to 17% and 42% for South Asia respectively (World Development Indicators, 2021).

The dominant narrative, largely propagated by international agencies like the World Bank, still advocates the validity of the process of structural transformation, continues to use this framework to understand the labour and employment transition in the global South, and advocates policies to achieve the same. In contrast, within various critical strands of literature, there is an increasing realization that the nature and pattern of structural transformation that unfolded in the global North might not be replicable in the global South (Dorin, 2017; Scherrer, 2018; Breman, 2019). Building on some of these criticisms, we argue that the possibilities of attainment of a North-style structural transformation remains bleak in the contemporary global South. This is majorly because the socio-economic and political context which facilitated the process of structural transformation of the economies in the global North is no longer available to the global South. The process in the North was, to a large extent, fostered by colonialism which allowed these economies to undertake expropriation and extraction of resources, without much concern for ecological limits, as well as to transfer a proportion of their population to the newly found lands in the temperate regions. Given the significant changes in the structure of capitalism now as compared to the earlier phase, it is worthwhile to investigate the possibilities of the global South experiencing the envisaged path of structural transformation.

In the following sections, we elaborate on why the received wisdom in development economics no longer provides an adequate framework to understand capitalist development in the global South.

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Limits to Supply Chain Resilience: A Monopoly Capital Critique

As the COVID-19 pandemic expanded across the world in early 2020, it generated the “first global supply chain crisis.”1 Global supply chains represent the integrative structure of contemporary global capitalism, and any disruption to them potentially threatens the functioning of the system itself.

In response to the crisis, the global supply chain community, encompassing academics and policymakers keen to promote their purported benefits, are proposing ways to increase supply chain “resilience.” The notion has been defined by the World Trade Organization and Asian Development Bank as “the ability of these chains to anticipate and prepare for severe disruptions in a way that maximizes capacity to absorb shocks, adapt to new realities, and re-establish optimized operations in the shortest possible time.”2 Enhanced global supply chain resilience is to be pursued through a range of policies to be implemented by lead firm managers and supported by states.

While global supply chains are promoted as generating positive gains—for firms and workers, North and South—there is mounting evidence to suggest that they represent organizational forms of capitalism designed to raise the rate of surplus value extraction from labor by capital and facilitate its geographic transfer from the Global South to the Global North. As demonstrated in a previous Monthly Review article (“World Development under Monopoly Capitalism,” November 2021), global supply chains have contributed to dynamics of concentration in leading firms, and a marked shift in national income from labor to capital across much of the world.3

Capitalism, as Karl Marx observed, is rooted in the exploitation of labor by capital through the latter’s ability to extract surplus value from the former.4 It is characterized by dynamics of concentration and centralization of capital, where fewer and larger firms increasingly dominate each economic sector. These dynamics are intrinsically related to capitalism’s uneven geographical development and the reproduction of geopolitical tensions and rivalries. As Harry Magdoff once wrote:

Centrifugal and centripetal forces have always coexisted at the very core of the capitalist process.… Periods of peace and harmony have alternated with periods of discord and violence. Generally the mechanism of this alternation involves both economic and military forms of struggle, with the strongest power emerging victorious and enforcing acquiescence on the losers. But uneven development soon takes over, and a period of renewed struggle for hegemony emerges.5

In fact, a recent World Bank publication explicates how the COVID-19 crisis is exacerbating capitalism’s inner monopolistic tendencies:

COVID-19 could cause a further rise in corporations’ market power because large corporations are in the best position to withstand the economic downturn and deploy new technologies.… In the past three recessions, the share prices of US firms in the top quartile across 10 sectors rose by an average of 6 percent whereas the share prices of those in the bottom quartile fell by 44 percent. The same divergence has been evident since the start of the COVID-19 outbreak.6

This article argues that the resilience agenda represents an ideological justification and fortification of these very same tendencies—of labor exploitation, of concentration and centralization of capital, and of an increasingly geopolitical dimension to capitalist competition.

Following this introduction, the first section of this article outlines the emerging notion of resilience as formulated within the global supply chain community. The next section discusses how the first response by firms and states to the COVID-19 crisis was to make workers bear the brunt of the crisis. The concluding section identifies the geopolitical dynamics of resilience, focusing on the White House’s 2021 report, Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth.7

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Hierarchies of Development podcast: Season 2

In collaboration with EADI and King’s College, London, Developing Economics has launched Season of the Hierarchies of Development podcast. The podcast offers long format interviews focusing on enduring global inequalities. Conversations focus on contemporary research projects by critical scholars and help us understand how and why structural hierarchies persist. Join hosts Ingrid Kvangraven (KCL/DE) and Basile Boulay (EADI) for this series of discussions on pressing issues in the social sciences.

The podcast was developed with editing support from Jonas Bauhof. Listen to old episodes and subscribe to get updates on new episodes here (you can choose your preferred platform).

In the first episode is on monetary hierarchies we speak to Karina Patricio Ferreira Lima (University of Leeds, UK) about hierarchies in money and finance, core-periphery dynamics of inflation, the role of the International Monetary Fund in assessing debt sustainability, and much more. Listen on Spotify with the link below.

The evolution of mainstream economics in five political-economic questions

The trajectory of mainstream economics can be understood in terms of how the discipline historically responded to moments of crises by attempting to “theoretically fix” the understandings related to five core “questions” of capitalist political economy – namely land, trade, labour, state, and legal-institutional framework. This involved legitimising improvements in land that led to the dispossession and the destruction of the commons, justifying free trade based on comparative advantage as opposed to mercantilist state intervention, reducing labour to a factor of production that was supposedly rewarded based on its marginal productivity and hence not being exploited, legitimising state intervention to stabilise capitalism and developing a legal-institutional framework to protect markets from popular democratic pressures. These “theoretical fixes” served to ideologically legitimise, preserve, and perpetuate the core content of capitalist social relations even as it corresponded with the modification of the surface-level appearances of capitalism.

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Colonialism and the Indian Famines: A response to Tirthankar Roy

Responding to Sullivan and Hickel’s recently published research article (in World Development) and an opinion article (in Al Jazeera), Tirthankar Roy, points out how the authors are wrong in claiming that British colonial policies caused several famines in India. All that is fine, except that these articles neither investigate nor come up with any original claim regarding the causes of famines in colonial India. The central claim in their research article is that capitalism did not necessarily result in an improvement of human welfare in the 19th century – contrary to the relatively popular belief that it did. In the opinion piece, they argue the same, but solely with a focus on the negative impact of British colonial policies in India in terms of excess deaths, decline in wages and living conditions. In order to support this distinct set of claims, among other supporting evidence and quantitative techniques, Sullivan and Hickel cite one existing claim (from prior literature) that colonial policies induced multiple famines in India. And yet, as the term colonialism has become a triggering point for Roy in recent years, he titles his shadow boxing exercise as “Colonialism did not cause the Indian famines”. If the intention of Roy is to refute Sullivan and Hickel’s original claim, he fails at it miserably. If the intention of Roy is to weaken Sullivan and Hickel’s set of supporting evidence, one may argue that he does so at least partially, but that’s true only for the opinion piece (and not the research article). However, I will argue in this response why Roy fails to achieve even that! This leaves one to speculate Sir Tirthankar Roy’s real intentions, which is not the task of the current article.

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Amartya Sen’s Work Shows Us the Human Cost of Capitalist Development

Indian economist Amartya Sen has posed a devastating challenge to the dominant capitalist understanding of development. But Sen’s own analytical framework doesn’t go far enough in exposing the inherently exploitative logic of capitalism.

Amartya Sen is one of the most influential thinkers about development in the contemporary world. Since the 1970s, he has published widely across the disciplines of economics and philosophy. He received the Nobel Prize for Economic Science in 1998. In 2010, Time magazine rated Sen as one of the world’s one hundred most influential people.

There is a predominant notion of development trumpeted by international institutions, many academics and journalists, and politicians of most stripes. It holds that economic growth provides the basis for human development. Given that under capitalism, economic growth is for the most part rooted in capital accumulation, “growth-first” notions of development are essentially capital-first notions.

This way of thinking places capitalist firms, managers, and the states that back them at the helm of the human development project. It conveniently excuses the ways in which such growth generates, and is often based upon, novel forms of poverty and oppression for workers. Sen’s writings pose a major challenge to the growth-first/capital-first idea of development.

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