Agricultural production, sectoral imbalances and inflation in Albania: A Kaleckian view

The current remarkable surge in inflation is considered to be a nearly global phenomena (Reinhart and Lucker 2022), affecting both developed and developing nations. While there may be common drivers of inflation, such as factors associated with the Covid-19 pandemic followed by Russia’s invasion of Ukraine, there are considerable variations in the causes of it, especially with reference to developing countries, including Albania. Drawing on Kalecki’s (1976) Essays on Developing Economies, I argue that there are also domestic factors attributed to the increase in inflation that resides in the structural sectoral imbalances of the Albanian economy.  

Rising prices in Albania sparked protests across the country in March 2022. The protests highlighted the rise in food prices which increased by more than 9% compared to March in the previous year; with the price of bread being the main contributor to such increase. With Albanians spending more than 42% of their total budget on food, rising prices of ‘necessities’ adds more pressure to the poor households to make ends meet. Nearly a quarter of Albanians, 640,000 people, already live in poverty (Kote 2022) and soaring prices in the economy could push people further into poverty. But what is pushing food prices to soar in a country where agricultural land accounts for 24% of overall land, a good Mediterranean climate, and water resources, all of which are crucial for agricultural development? Despite these favourable conditions, the productive capacity of Albania’s agriculture sector to meet domestic demand for food and feed meets is only one third (World Bank, 2022a).  

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Beyond ideology, we need an emergency tax for emergency times: What the UK could learn from tax debates in Latin America

Paying for the energy price guarantee has highlighted a deep political cleavage around tax ideology. Reframing windfall as emergency will be critical to leverage a change in direction. 

Tax is always contentious. Debates surrounding who should pay, how much, and where the revenues are redistributed to are the heart of state power and national and global political economies. No one likes paying taxes but seeing tax only through the lens of either powerful interest groups or electoral politics misses the extent to which the contemporary tax debate in the UK, in particular in relation to so-called ‘windfall’ taxes on energy companies is driven by ideology. Ideas of tax – which ones should be levied, at what rate, to whom – are embedded in wider ideas of state and the role of government in socio-economic life. In the UK, political parties that call for higher taxes are associated with an interventionalist and redistributive state, while those who argue for low taxes believe in individual responsibility and markets. But the UK is currently facing an unprecedented economic crisis and the decision not to backdate taxes on the extraordinary profits energy companies have been making to pay for state intervention in energy markets in September 2022 has been based on ideology, underpinned by a set of ideals and ideas, when what is needed is a pragmatic response to an emergency. If opposition parties could move away from the language of ‘windfall’ that suggests the need to ‘punish’ companies for excess profits and speak instead of the need to come together to respond a national emergency, it might have helped them cut through the government’s ideology approach. To do so, there are lessons that can be learned from elsewhere, in this case Latin America.

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Neoliberal capitalism and the commodification of social reproduction, from our home to our classroom

It is official: we are getting ready for another round of industrial action in the UK higher education sector. For those who may be wondering what the current UCU national strike 2021-22 is all about, a short recap may help. Higher education UCU members are striking because of planned pensions cuts that risk pushing academic staff into ‘retirement poverty’; to fight against ever-growing labour casualisation in universities; and because of the growing inequalities of gender, race and class the UK higher education sector has nurtured in the last five decades. Colleagues at Goldsmith – to whom we shall extend all our support – are also fighting against planned mass staff redundancies.

We – higher education workers and students – were on this picket before, so many times, fighting other policies deepening the process of commodification of education. We were on this picket fighting cuts in real wages – which education workers are still experiencing. We were on this picket to fight against the trebling of university fees for our BA students. At SOAS, where I work, we were on this picket to fight against cuts to our library, against Prevent, against the deportation of SOAS cleaners on campus ground – an event which remains the darkest chapter of SOAS industrial relations and for which the university has not yet apologised in recognition of the harm caused to the SOAS 9 and to all our community. We hope the school will acknowledge the need to do so, so that we can move forward, together.

We were at other demonstrations and on other picket  lines, protesting against austerity, in the aftermath of the 2008 financial crisis, against climate change, against racism and in support of Black Lives Matter, against gender violence. The picket really is a sort of archive, which can be consulted backward to reconstruct a history of attacks to our rights – at work, at home, or both.

And if we consult this archive, we can clearly see a pattern emerging in the last decades, a pattern which in fact connects neoliberal Britain with many other places in the world economy, which have also experienced processes of neoliberalisation. All the pickets and demonstrations, become a sort of tracing route; we can reconnect the dots spread across a broader canvas. These dots design a specific pattern; that of a systematic attack to life and life-making sectors, realms and spaces.

Neoliberal capitalism, starting from the 1980s, has promoted a process of systematic de-concentration of resources in public sectors, and particularly in so-called ‘socially reproductive sectors’, that is those that regenerate us as people and as workers. This attack has been massively felt in the home, which has become a major battleground for processes of marketization of care and social reproduction. The withdrawal of the state from welfare provisions, the rise and rise of co-production in services (i.e. the incorporation of citizens’ unpaid labour in public service delivery;  a practice further cheapening welfare) –  and processes of partial or full privatisation of service delivery in healthcare and education have generated massive reproductive gaps. These gaps have been filled through outsourcing of life-making to others. Homes have become net users of market-based domestic and care services. The in-sourcing of nannies, au-pairs, and elders carers, from a vast number of countries in the Global south and transition economies have remade the home as a site of production and employment generation, at extremely low costs.

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Theory from the South, or Reading the Global Order from the Antipodes

By John and Jean Comaroff

There appears to be a growing echo, slowly reverberating around the world, that, for good, ill, or both, Africa is the future, a harbinger of Europe’s history-to-come. Experts may debate the reasons for this: among them, a significant population bulge heavily skewed toward youth; an urban “revolution” unique in the current era; burgeoning consumer markets, rising middle classes, and accelerating techno-development; also, a propensity to repurpose material practices both foreign and homegrown, thus to remake modernity for late modern times. Says Keith Hart (2017:2), basing his prediction on the long historical relationship between demography and economy, “Sooner or later, Africa and Europe will change rank order.” The former – Africa, the continent that once signified the West’s prehistoric past and remains a perennial “basket case” in the jaundiced eyes of Euro-America – is now frequently taken to prefigure what lies ahead for humanity at large.

A decade or so ago, our Theory from the South explored this proposition and its implications for the social sciences, one of them being that Africa, as an “ex-centric” location (Bhabha 1994) and ground-zero of the Global South, has become a privileged axis from which to theorize the emerging world order of the twenty-first century. In so doing, it provoked a great deal of argument and, among northern intellectuals unused to the idea that their hemisphere may not be the font of all knowledge and theory-work, frank skepticism.

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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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Whose Anger? A Review of Angrynomics

The recent ‘insurrection’ on Capitol Hill should put an end to any liberal illusions that 2021 would usher in, in Biden’s words, a return to decency. Surreal images of the QAnon Shaman roaming the US Senate may yet become one of the defining photographs of the Trump presidency. In many ways it is symbolic of the President himself – inchoate and unashamedly atavistic yet, emboldened by law and order, obstructive and corrosive.

Many of these themes are touched upon in Eric Lonergan and Mark Blyth’s short book Angrynomics. In many senses it is a timely book, published just weeks after the murder of George Floyd and in the midst of the largest global recession since the Second World War, these are fertile grounds for anger. Certainly there is very little to dispute about Lonergan and Blyth’s premise:

“We have an abject failure of policy. Rather than presenting a major programme of economic reform, the global political elite has offered nothing substantive, instead choosing either to jump on the bandwagon of nationalism or insist that nothing fundamental is wrong… The political classes, bereft of ideas, are now desperately peddling old ideologies and instincts, or pursuing bizarre distractions like Brexit.”

As a result of this abject failure, people are angry. They are either publicly anger or privately angry. That public anger either manifests itself in moral outrage (think, for instance, of an Extinction Rebellion protest) or tribal rage (for example, and this is used in the book, fans at a football match). Private anger, meanwhile, gives us an insight into the daily micro-stresses of people’s lives. This is the Lonergan and Blyth typology of anger.

Whose Anger?

While the authors are clear that “we need to draw a clear distinction between legitimate public anger and cynical manipulation of tribal anger for political ends” (22), their analysis often fails to live up to the task. Through the centrality of “legitimate moral grievances in the Rust Belt” in explaining the election of Trump (25) and the “real stressors” of immigration driving the Brexit vote (111-112), Angrynomics ends up sidestepping important discussions of race for an overly simplistic explanation of class.

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Sino State Capital and the Strengthening of Serbian Stabilitocracy

Chinese labour workers and their team manager laying the tracks on the Belgrade-Stara Pazova section of the Belgrade-Budapest railway. Source: author’s own.

The Belgrade-Budapest Railway has been lauded as the flagship Belt and Road project of the wider Central and Eastern European (CEE) region, and as such is promoted by Beijing as a successful template for Sino-CEE cooperation concluded via the 17+1 initiative, established in 2012 to foster relations between China and 17 CEE countries. In its host context of Hungary and Serbia, the investment has been politicised from the get-go, wherein criticism has largely focused on the project’s violation of EU public procurement rules, which require competitive dialogue and open-tender processes for projects of substantial size.

We would expect the Belgrade-Budapest Railway to be subject to greater scrutiny in both Hungary, as an EU member state, and Serbia, where external legitimacy of the EU is an important cornerstone of regime legitimacy, stemming from broad-based support for EU integration and cooperation. While this has played out in Hungary where there have been protests and where the EU launched infringement proceedings against the construction for non-compliance, the Serbian section has proceeded relatively unhindered.

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Developmental Agency under the Radar: Developmental States and Coalitions in Dependent Market Economies and Low-Tech Sectors

In a recent paper co-authored with László Bruszt and published in a Special Issue of Review of International Political Economy, we identify a developmental state in the least likely  of times – the period of hegemonic neoliberalism in the 1990s and early 2000s –  and the least likely of places, namely the post-socialist Central Eastern European (CEE) economies conventionally described as FDI-dependent Dependent Market Economies (DMEs). 

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