The Nobel Prize winner that predicted a crisis between nature and capital

Since 1901, December has been a time for Nobel Prizes. Only in 1969, as an afterthought, the Swedish Central Bank established the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel — a decision that was met with protests by some members of the Nobel family.

Nevertheless, a scientist who used much of his time on economics was rewarded a Nobel Prize in 1921. Admittedly, Frederick Soddy (1877–1956) received the prize in chemistry, for his work on radioactivity. But in the period from 1921 to 1934 Soddy wrote four books campaigning for a radical restructuring of the global monetary system.

I have been leafing through Soddy’s book entitled, ‘Money versus Man’, published in 1931.[i] The book opens with a full-page quote from another English polymath, John Ruskin (1819–1900).[ii] The social problems of England in the 1840s — ‘The Hungry 40s’ — and the financial crises that followed in 1847 inspired Ruskin. The mass deaths in World War I and the crisis that started in 1929 provided new inspiration to Soddy.

For Ruskin, and later Soddy, consumption was the only purpose of the economy. ‘There is no wealth but life’ is the basic message in Soddy’s long quote from Ruskin. It is on this basis we should read the title of Soddy’s book, placing money as a kind of enemy for humankind. Here is a new type of economics: we have standard neoclassical economics, based on the metaphor of equilibrium between supply and demand, and we have evolutionary (Schumpeterian) economics based on a metaphor from biology (innovations as mutations). Soddy offered us a third angle: economics rooted in physics, in the laws of thermodynamics.

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Green financialization and de-risking in Zambia’s renewable energy transition

By Simone Claar and Franziska Müller

Zambia’s has a history full of hopeful prospects and broken dreams. In the 1980s and again in the early 2010s, Zambia experienced an economic upswing. Labelled as an emerging middle-income country and called the new ‘African Tiger’, a mix of copper extractivism, an aspiring tourism sector, as well as political stability led to an impressive rise. However, the phase was short-lived, as Zambia’s political economy remains fragile: dependent on the price of copper and the world market, it is regularly on the verge of state bankruptcy due to a significant foreign debt burden. A history of structural adjustment programs in exchange for IMF loans and dependency on billion-scale Chinese loans means that Zambia became the first African country to declare bankruptcy in the wake of the Covid pandemic, first asking for a moratorium, and later for restructuring its Eurobond loans and Chinese loans. In this context, Zambia’s dependence on development financing is highly evident and deeply anchored in the state structures. Zambia’s political economy of energy and the ongoing energy transition reflect this tedious situation. Rising energy demands and lack of investment mean that widespread load shedding has become a frequent phenomenon. Climate change and recurring droughts negatively affect hydropower performance, which makes up 95 per cent of installed capacity. The current roll-out of renewable energy is a beacon of hope. Nevertheless, its financial structures give rise to the assumption that Zambia may also be the first African state where the miracle of green capitalism and “white magic” (Girvan 1978) is becoming manifest, resulting in both shiny solar panels and a loss of political and economic sovereignty. Analyzing Zambia’s energy transition’s political and financial toolbox, we delineate how green financialization and de-risking are executed based on blended development finance. 

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 A People’s Green New Deal: A Symposium

Max Ajl’s A People’s Green New Deal intervenes in current debates regarding green planning, green future, green stimuli, and eco-socialism. It surveys a wide range of existing literature on the ecological and social crisis, ranging from ruling-class “great transitions,” to eco-modernist elixirs of the right and the left which bank on technological solutions to today’s social and ecological problems. It then considers and critiques an array of liberal, left-liberal, and social democratic proposals, some of them going under the eco-socialist moniker, and shows how they rest on continued exploitation and primitive accumulation of the periphery. 

A People’s Green New Deal contributions lie in, first, using frameworks of dependency theory, accumulation on a world scale, and ecologically uneven exchange to illuminate the costs and consequences of distinct approaches to the climate crisis, left and right. Second, the book’s emphasis on agriculture, land use, and agro-ecology makes it unique amongst books on the Green New Deal and parallel debates. Its emphasis on decolonization, national sovereignty, anti-imperialism, and climate debt repayments from the North to the South is a third contribution. A fourth is how it deals with technology. 

This review forum assesses the contribution of A People’s Green New DealSakshi situates APGND in terms of a counter-epistemology to Eurocentric and empire-blind resolutions, if not really solutions, to the social and ecological crises to which mainstream Green New Deals are addressed. Sheetal Chhabria assesses APGND’s contribution to thinking on a planetary scale about appropriate planning for a just transition, while criticizing the book’s uncritical embrace of certain Indian nationalist tropes. Güney Işıkara raises questions regarding political agency and organization, the role of national-level planning in any form of national-level green transition, and how to approach anti-imperialism on a world scale.  

Read the contributions:

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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Beyond Green Restoration: An Eco-Socialist GND

Following the resolution introduced by Alexandria Ocasio-Cortez and Ed Markey, the term Green New Deal (GND) has become the gravitational center of climate action debates. On the one hand, conservatives, as well as some leftist circles, designate the AOC-Markey resolution as “socialist”. On the other hand, the term GND was first made public by Thomas Friedman in his NY Times column as a capitalistic and patriotic project which serves as “the basis of a new unifying political movement for the 21st century” (p.4). It comes as no surprise that so much political confusion accrues around the concept of a GND.

Max Ajl’s A People’s Green New Deal is the best leftist response I have read to the discussions whirling around this notion. It is clear-minded and well written. Politically, it constructs a consistent, uncompromising, anti-imperialist vision, well aware of the fact that tamed horizons are easily coopted and rearticulated by the ruling classes thanks to the elasticity of capital accumulation. Theoretically, its foundations are found in the “inherently polarizing” frameworks of dependency theory, world-system analysis, and (environmentally) unequal exchange (p.14).

Ajl evaluates GND proposals not only on the basis of targeted changes in physical production, but also in terms of their systemic implications. Some GNDs aim to preserve or strengthen capitalism, while others are designed to attack or abolish it (p.3). Correspondingly, the book is divided into two parts. The first one is concerned with what Ajl calls Capitalist Green Transitions (p.16) or “ruling class agendas” (p.20), while the second part sketches his vision of a People’s Green New Deal.

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How To Write About Pipelines

Writing about Indigenous rights or climate and environmental justice movements as a non-Indigenous person is difficult and complex. The magnitude of difficulty becomes manifold if the authorial voice falls somewhere on the white, western knowledge spectrum. What we have to say matters less than what we have learned in thinking with the Indigenous people and their knowledge forms. For non-Indigenous scholars, there is a constant need to be alert to the possibilities of reproducing colonial power structures and epistemic frameworks while engaged in knowledge production. The only way out of this conundrum is to constantly learn from Indigenous voices and epistemologies and be sensitive to structural inequities and epistemic injustices that have marred the academe. It is not adequate to merely provide nodding acknowledgement to the idea of environmental justice. Interrogating the colonial and settler colonial structures within environmental movements must be a continuous process. Particularly, the idea of Indigenous environmental justice is yet to assume the place it deserves in the literature on environmentalisms, environmental activism, or even Marxist ecology. While Black-Green solidarity and alliance is an indispensable condition for the flourishing of the environmental movements, the work towards achieving it has been disappointingly slow. These concerns resurfaced as I read Andreas Malm’s new work How to Blow Up a Pipeline.

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What Is Value? A Marxist Perspective

Marx’s critique of capitalism, and more specifically his theory of value, is still very relevant today, as I argue in my new book Fetishism and the Theory of Value: Reassessing Marx in the 21st Century.

But his work is often misunderstood, not only by orthodox economists but also by others – such as ‘greens’ – who seek inspiration in his writings. Economists, if they refer to his work at all, have tended to focus on the quantitative labour theory of value, ignoring what Marx called the qualitative theory of value: his critique of the economic categories of ‘bourgeois’ economics which mystify –  and hence also justify – the reality of what is really going on. The concept of fetishism is crucial to this theory, but by economists this has been either ignored or treated as the work of Marx the philosopher or Marx the sociologist. Marx introduces the concept of commodity fetishism in the very first chapter of Capital Volume I, where he seeks to get to grips with the mysterious phenomenon of exchange value. Rather than simplistically equating value with price – as is the practice of the market system and mainstream economics – he delves deep into the beliefs and practices that constitute and sustain the capitalist system. In other works, he applies the concept of fetishism to capital, money and interest-bearing capital. By reference to what he calls the ‘Trinity Formula’ he shows how, by presenting profit as the return on capital and rent as the return on land, both profit and rent are taken for granted, and go unchallenged. That the surplus value generated in production accrues solely to capital is treated as somehow ‘natural’.

In my book, I show the continuing relevance of Marx’s theory today, especially with regard to finance and the environment. Both the financial crisis of 2008 and the continuing crisis of environmental destruction are related to the way in which the market increasingly extends its grip over our lives: through the financialisation of everyday life, and through the use of market instruments and market principles that shape our relationship with nature.

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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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