Dependence and ecology in contemporary Latin America, part 2: Limits to sub-imperial autonomy

Brazilian agribusiness’s fervour for Soybean cultivation has manifested itself domestically as much, if not more so, than externally, with deforestation accelerating as plantations abound with similar velocity in both the Brazilian Amazon and the Paraguayan Chaco. The domestic intensification of Soybean cultivation can, in large part, be attributed to growing demand from China, the world’s primary soybean consumer (Song et al, 2009). China is the largest market for both Paraguayan and Brazilian soy, with both nations essentially relying on continued Chinese imports to balance their trade deficits (Giraudo, 2020). Accordingly, the impact of Chinese demand on Brazilian agriculture, and on other resource sectors across the region (Ganchev, 2020; Oviedo, 2015), replicates many of the dynamics previously mentioned with regards to Brazilian ‘Subimperialism’ in Paraguay.

As soybeans are typically exported with minimal processing, and monocrop agriculture generates comparatively little employment (Giraudo, 2020), few of the benefits of the soybean supply-chain are appropriated within Brazil. Meanwhile, cheap Brazilian soybeans indirectly support the Chinese labour system by lowering the price of staple foods, especially pork, allowing Chinese manufacturers to keep wages low, thereby maintaining the competitiveness of Chinese exports (Wise & Veltmeyer, 2018). With Chinese demand likely to remain high, it seems inconceivable that either the Brazilian or the Paraguayan economies will wean themselves off of soy and will instead remain conditioned by, and dependent on, the whims of the Chinese industrial system

Furthermore, this integration of soybeans into the Chinese industrial economy exacerbates the existing China-Brazil trade imbalance. 98.4% of Chinese exports to Brazil are manufactures, whilst the majority of Brazilian exports to China are primary-resources, with soybeans representing the single most valuable export-commodity (Jenkins, 2012). Low-price Brazilian commodities thereby fuel an industrial system which exports value-added goods back to Brazil, creating a trade-deficit which entrenches the nation’s dependence on the industrialised core, reproducing the fundamental dynamics observed by dependency theorists in the mid-twentieth century (Frank; 1966; Prebisch, 1962).

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Gendering the debt crisis: Feminists on Sri Lanka’s financial crisis

By Kanchana N. Ruwanpura, Bhumika Muchhala and Smriti Rao

Countless images of women carers flitted through April-July 2022 on Sri Lankan television screens, social media, and newspapers. Carers with young children, mothers with new-borns leaving them with equally young children while they stood in queue for gas or kerosene, children doing their homework on tuk-tuks while their parents got in line for petrol and diesel. Yet, Sri Lankan policy pronouncements rarely mention working-class women. In a country where women comprise 52% of the population, this is astounding. Especially so when the dominant three foreign exchange earners for the country – garments, tea exports and migrant workers to the Middle East – rest on the efforts of women workers. 

In the current response to Sri Lanka’s debt crisis, the voices and needs of working-class women are once again being ignored by policymakers, despite the evidence all-around of women intensifying their unpaid labour even as the conditions under which they perform paid labour deteriorate. 

As feminist economists, our argument is straightforward: debt justice is a feminist value and principle. And at the core of our understanding of debt justice is the principle that working class women cannot be made to pay for the ‘odious debt’ generated by the recklessness and corruption of (almost entirely male) Sri Lankan political elites.

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The Co-evolution of Diversity in Property and Economic Development: Evolutionary Economics and the Vertical Dimension (Part 2)

Having laid out the horizontal dimensions of diversity in property in Part 1, I here offer a critique of the assumption in mainstream economics that all kinds of property institutions need to be or will be transformed into private property to promote economic development. I also reflect on my previous work that applies and develops Darwinian mechanisms of variation, inheritance, and selection—which has been extensively discussed in evolutionary biology and evolutionary economics—to study property regime transformation in China.

While working on our co-authored paper, Professor Erik Reinert introduced me to two very important books and encouraged me to think about the relevance of the work of Darwin and Veblen to study property regime transformation in China: Full House: The Spread of Excellence from Plato to Darwin by Stephen Jay Gould (1941-2002), Harvard biologist and historian of science; Thorstein Veblen: Economics for an Age of Crises edited by Erik himself and Francesca Viano. Erik also introduced me to the work of evolutionary economists including Professor Richard Nelson of Columbia University.

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The Co-evolution of Diversity in Property and Economic Development: Key Concepts and the Horizontal Dimension (Part 1)

This blog post builds on the ‘Institutions, Economic Development, and China’s Development Policy for Escaping Poverty’ piece and comprises two parts dealing with the key concepts (Part 1) and mechanisms (Part 2) for evaluating the co-evolution of diversity in property and economic development. I argue that diversity in property plays a key role in economic development and that there are two dimensions that are important for examining the co-evolution of diversity in property and economic development—horizontal (Part 1) and vertical (Part 2).

In this post, I offer a critique of the assumption in mainstream economics that private property is the only kind of property institutions that can stimulate and preserve economic development (I am, of course, not the first to offer critiques of this assumption; for existing studies, see e.g., Kennedy 2011). I focus on the meaning of ‘diversity in property’, which concerns the horizontal level analysis.

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Institutions, Economic Development, and China’s Development Policy for Escaping Poverty

I recently have had opportunities to reread the works of Professors Erik Reinert and Peer Vries and to reflect on my previous work on the relationship between institutions, economic development, and China’s development policy for escaping poverty. Professors Reinert and Vries have studied, along with a few other distinguished economists and economic historians, ‘poverty traps’ at national and transnational levels for decades (eg, Serra 1613; Landes 1998; Reinert 2007; Reinert 2009; Vries 2013). Both argued that innovation and structural change are the keys to escaping poverty.

Professors Reinert’s and Vries’s work on economic development has brought the work of Joseph Schumpeter (1883-1950) to light. In this blog post, I will review how the work of Schumpeter, Reinert, and Vries helps us explore three key questions: First, what kind of development does a country need to escape poverty? Second, what kind of institutions can promote development? Third, how to develop? These three questions are crucial to understand China’s escape from poverty.

Professors Reinert’s and Vries’s arguments can be well supported by China’s national development policy. Below are a few highlights of rich empirical evidence. In 1984 the Chinese government proposed a development-oriented poverty reduction policy to replace the previous aid reliance policy (Central Committee of the Communist Party of China and the State Council 1984; for critiques of relying on massive foreign aid to escape poverty, see e.g. Moyo 2009; Hubbard and Duggan 2009; Banerjee and Duflo 2011). On 18 January 1992, Deng Xiaoping (1904-1997, leader of the PRC from 1978 to 1989) made a famous speech in his Southern Tour, emphasising that ‘development is the absolute principle’ (fazhan cai shi ying daoli). Since then, China’s economic development has entered a new stage. In 1994 the Chinese government fully adopted the development-oriented poverty reduction policy as a national policy.

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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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