Agrarian Change in the Lap of Neoliberal Growth: Field perspective from India

If I had to describe three central characteristics of the Indian economy—its three defining features in the neoliberal period—they’d be i) premature de-industrialization and expansion of the services sector, ii) growth in the absence of formal job-creation, and instead an explosion of informality, and iii) the declining share of agriculture in value added even as its share in employment remains sizeable. In June-July 2019, I did intensive fieldwork in Sangli, a village in Rewari district in southern Haryana, to make sense of the ways in which these processes interact with agrarian change and play out for agrarian households, i.e. the contemporary Agrarian Question [1]. 

Sangli is in Haryana, where Green Revolution techniques (high yielding seed varieties, chemical fertilizers and pesticides, and agricultural machinery like tractors and threshers) were adopted early on. It also happens to be close to the industrial belt that extends from the national capital Delhi to its surrounding districts, where foreign capital has congregated in the neoliberal era. This makes it an interesting place to study processes of generation and re-investment of agrarian surpluses, and to peer into the relationship between “modernized” agriculture and neoliberal industrial and urban growth that has dwarfed the rural economy.

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On the perils of embedded experiments

There is growing interest in ‘embedded experiments’, conducted by researchers and policymakers as a team. Aside from their potential scale, the main attraction of these experiments is that they seem to facilitate speedy translation of research into policy. Discussing a case study from Bihar, Jean Drèze argues that this approach carries a danger of distorting both policy and research. 

Evidence-based policy is the rage, to the extent that even village folk in Jharkhand (where I live) sometimes hold forth about the importance of ‘ebhidens’, as they call it. No one, of course, would deny the value of bringing evidence to bear on public policy, as long as evidence is understood in a broad sense and does not become the sole arbiter of decision-making. However, sometimes evidence-based policy gets reduced to an odd method that consists of using randomised controlled trials (RCTs) to find out ‘what works’, and then ‘scale up’ whatever works. That makes short shrift of the long bridge that separates evidence from policy. Sound policy requires not only evidence – broadly understood – but also a good understanding of the issues, considered value judgements, and inclusive deliberation (Drèze 2018a, 2020a).

Enormous energy has been spent on the quest for rigorous evidence, much less on the integrity of the process that leads from evidence to policy. As illustrated in an earlier contribution to Ideas for India (Drèze et al. 2020), it is not uncommon for the scientific findings of an RCT to be embellished in the process. This follow-up post presents another case study that may help to convey the problem. It also illustrates a related danger – casual jumps from evidence to policy advice. The risk of a short-circuit is particularly serious in ‘embedded experiments’, where the research team works ‘from within’ a partner government in direct collaboration with policymakers.

The case study pertains to an experiment conducted in Bihar in 2012-2013 and reported in Banerjee, Duflo, Imbert, Mathew and Pande (2020)1. This is a large-scale, influential experiment by some of the leading lights of the RCT movement – indeed, a formidable quartet of first-rate economists reinforced by one of India’s brightest civil servants, Santhosh Mathew. The high technical standards of the study are not in doubt, and nor is the integrity of the authors. And yet, I would argue that something is amiss in their accounts of the findings and policy implications of this study.

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Debunking the “Eco-Fortress Nationalism” of the AOC/Markey Green New Deal

tractor, tiller, tilling, equipment, agriculture, karnataka, india, transportation, mode of transportation, land, land vehicle, field, one person, landscape, agricultural machinery, day, nature, rural scene, plant, environment, driving, farm, dirt, agricultural equipment, outdoors, farmer, 4K

Photo: Farming in Karnataka, India.

Max Ajl’s People’s Green New Deal is a brutal reminder for the American left that even the most celebrated and progressive developments in American politics are still simply American politics, in other words they are a politics for America, and America first. Ajl situates both the longer history of environmental destruction and the response to it within a planetary frame without losing sight of geographical unevenness. The book is divided into two parts. The first part is where Ajl systematically debunks the American-centrism of the Cortez/Markey Green New Deal (GND). The second part is an imagination-widening exposition of an alternative People’s Green New Deal that centers the livelihood of the majority of the world’s people by putting forth an anti-imperial and anti-capitalist framework for a just transition. 

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A need to re-examine the temporality of anti-trust action

The structure of anti-trust laws is generally and neatly divided into ex-post enforcement and ex-ante regulation of market conduct and its participants. It is a matter of social and economic policy choice as to whether any regulation should precede ‘harm’ or follow it, as is the construction of ‘harm’ across statutes. For example, the requirement of a merger notification is an ex ante means to understand and assess the market impact of a merger. On the other hand, abuse of dominant position is an ex-post assessment once the dominance has set in, which may be in the long run. The determination of abuse is subject to a rule of reason and analysis by the competition authorities. Against this background, the question is what happens in the intervening period when an undertaking is slowly and surely inching towards domination, engaging in conduct which would be punished only once it becomes dominant ? What happens to the process of concentration of markets, along with the practices in concentrated markets? These questions are not borne out of academic interest alone and are not completely answered by a simple focus on anti-competitive agreements, as will be seen below. The analysis will zoom in on the Indian market conditions to make a case for questioning the timing of regulatory intervention and proceed to show that new economic methods may be required in this task.

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The partnership trap in the Indonesian gig economy

In the last three months, there have been three strikes by gig workers in Indonesia. Problems related to harsh working conditions, injustice, and the decline in the welfare of gig workers became the main issues in the three strikes. The biggest strike was carried out by GoKilat couriers (delivery service from the Gojek platform company) for 3 days on 8-10 June 2021 involving nearly 1,500 couriers or almost 80% of active couriers on GoKilat. A day later, couriers from Lala Move went on strike spontaneously for three days by mass deactivating accounts on their platform application.

Prior to the two strikes above, on April 6, 2021, a strike was carried out by Shopee Express couriers for 1 day in Bandung, Indonesia, involving around 1,000 couriers. The Shopee Express courier strike was motivated by a cut in the payment they received. The new rules reduce courier revenue from 2,500 rupiah (US$0.17)/package to only 1,500 rupiah (US$0.10)/package and that is the only income earned by the couriers. In other words, they did not earn basic income equal to the minimum wage in the province where they work. Moreover, they did not have health insurance, decent working hours, overtime pay, leave /holiday rights, and severance pay. The working conditions were worse due to the fact that the vehicles (motorcycle) used are theirs and they had to pay fuel cost.

With such a wage system, to be able to earn the minimum wage in Bandung City in 2021 of 3,742,267 rupiah (US$263.16) per month for instance, couriers have to deliver 2,495 packages monthly—not including fuel and maintenance costs they have to pay. It means that they would have to deliver about 104 packages per day to the customers. If, on average, a package is delivered in 10 minutes, they need 17 hours per day, far above the decent 8 hours work day. This oppressive work system for gig workers is possible and there is no prohibition from the Indonesian government, due to the courier’s status as an independent contractor ormitra” (partner) for the platform company, instead of labor.

The precarious and uncertain working conditions stem from the misclassification of their employment status. Companies classifies them as “partners”, so that they could avoid the obligation to provide the minimum wage, health insurance, overtime pay, severance pay, 8 working hours per day, and holiday rights if they were labor, although the working relationships between the companies and their couriers represents the employer-employee relationships as there are shift work for the couriers, work control by the companies, requirements in recruitment such as contracts of employment, and the companies unilateral rules established by the companies.

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Community Infrastructure and the Care Crises: An Evaluation of China’s COVID-19 Experience

This blog post was originally published on the India-China Institute/The New School’s Pandemic Discourses blog.

COVID-19 has exacerbated the gendered impact of care work globally, but lessons can be learned from countries like China that have relied on community organizations for solutions.

The COVID-19 pandemic has revealed a severe care crisis throughout the world. The measures to contain the infection – lockdown, social distancing, quarantine – severely disrupted activities crucial to the basic functioning of society from cooking to cleaning, childcare, elder care and more. The experience of China shows the critical role of the community in providing essential services.

Like in many other countries, women in China assume disproportionately more care responsibilities than men. With the care crisis intensified by the pandemic, women from different socioeconomic backgrounds were all significantly affected. Urban women mostly saw themselves shouldering more household chores when hiring domestic workers or seeking extra help from family members became impossible or difficult during the lockdown. As most female migrant workers are employed in the precarious informal sector, they had to endure job losses and economic hardship, in addition to extra childcare and household chores. Female healthcare professionals risked their health working on the frontline while having to bear the added mental stress of possibly carrying the virus and spreading it to family members.

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The Changing Face of Imperialism: Colonialism to Contemporary Capitalism

By Sunanda Sen and Maria Cristina Marcuzzo

How is imperialism relevant today? How has it mutated over the past century? What are different theoretical and empirical angles through which we can study imperialism? These are the questions we deal with in our edited volume on The Changing Face of Imperialism (2018).

We understand imperialism as a continuing arrangement since the early years of empire-colonies to the prevailing pattern of expropriations, on part of those who wield power vis-à-vis those who are weak. The pattern of ‘old imperialism’, in the writings of Hobson, Hilferding and Lenin, were framed in the context of the imperial relations between the ruling nations and their colonies with political subjugation of the latter, captured by force or by commerce, providing the groundwork for their economic domination in the interest of the ruling nations. Forms of such arrogation varied, across regions and over time; including  the early European invasions of South America, use of slaves or indentured labour across oceans, and the draining off of surpluses from colonies by using trade and financial channels. Imperialism, however, has considerably changed its pattern since then, especially with institutional changes in the  prevailing power structure.

The essays in the volume offer a renewed interpretation, which include the alternate interpretations of imperialism and its changing pattern over space and time, incorporating the changing pattern of oppression which reflects the dynamics underlying the specific  patterns of oppression. The pattern can be characterised as ‘new imperialism’ under contemporary capitalism as distinct from its ‘old’ form under colonialism. The varied interpretations of imperialism  as in the literature do not lessen the significance of the common ground underlying the alternate positions, including the diverse pattern of expropriations under imperialism.

The volume offers fourteen chapters by renowned authors. In this blog, we organise them in the following manner: the first five of those deal with the conceptual basis of imperialism from different angles, the next three chapters deal with contemporary imperialism, and then the rest six chapters of book deal with India, colonialism and contemporary issues with imperialism.

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The Socialist Market Economy in China, Vietnam and Laos: A development model to embrace?

By Jo Inge Bekkevold, Arve Hansen and Kristen Nordhaug

China, Vietnam and Laos have for three decades been among the fastest growing economies in the world. In other words, three of the best growth performers in global capitalism are authoritarian states led by communist parties with socialism as the official development goal. This fact has received surprisingly little attention, especially when considering their strong performance on a wide range of development indicators. Many claim China and Vietnam indeed represent some of the most impressive “development success stories” the world has seen in recent decades. The three countries claim to have found their own model of development combining a market economy with socialism – ‘the socialist market economy’. According to official definitions, this is not capitalism, but a more sustainable and socially just way of making a market economy work for national development and the improvement of living standards. In The Socialist Market Economy in Asia: Development in China, Vietnam and Laos, an edited volume newly published by Palgrave Macmillan, we engage with the coherence, achievements and failures of this particular development model.

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