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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Exploring the Platform Political Economy of Self-Help in Africa

Informal savings group in Tarime district, Tanzania. Photo: Daivi Rodima-Taylor

Self-help groups can be found in many areas of Africa—including the chama groups of Kenya, isusu of Nigeria, and stokvels of South Africa (Ardener and Burman 1995). Their customary rotating credit arrangement is also popular among African diaspora communities (Hossein 2018; Ardener 2010). A significant rise has occurred in these groups at the wake of the neoliberal restructuring reforms of the 1980s-90s, with a decline in formal sector employment and state-funded producer cooperatives. At present, these mutual support groups are targeted by FinTech platforms as well as conventional banks with various financial products and software apps. My recent research explores of the contentious interplay between the formal and informal finance in these emerging digital interfaces in Africa. It studies the intersection of FinTech with the social economies of African mutual help groups in Kenya and South Africa, situating this dynamic in longer-term colonial legacies and present-day policies of extractive financialization (Rodima-Taylor 2022).

Informal mutual support groups with their saving-credit patterns have long served as an inspiration for the development industry. The initially successful Grameen micro-finance model drew on pre-existing reciprocities and mutually negotiated liability in largely informal contexts. However, as the microfinance formula shifted from socially situated lending towards ‘fast-scaling’ and universalizing group lending in an expanding range of localities, the industry was faced with repayment crisis (see Haldar and Stiglitz 2016). The recent conceptual shift from microfinance to digital financial inclusion foregrounds mobile payments and fee-based service delivery, with payment industry also experimenting with new sources of value such as customer data (Maurer 2015). Microloans have remained an important part of the digital financial inclusion enterprise, with poorly regulated lending apps fueling over-indebtedness. As informal savings groups and mutual support associations have become central in the livelihoods in many low-income communities, I suggest that more attention is needed to the intersection between the self-help groups and FinTech initiatives in the global South.

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Informal employment and the social reproduction of value

In the last year, the rise and spread of the COVID-19 pandemic has laid bare the fictitious nature of some of the categories we deploy to conceptualise the world of labour. Indeed, it has revealed the contingent nature of the separation between productive and reproductive spaces, times and realms when it comes to labour processes.

According to estimates produced by Janine Berg, Florence Bonnet, and Sergei Soares, when the crisis hit, around 30% of North American and Western European workers were in occupations that could allow home-based work, as opposed to only 6% of sub-Saharan African and 8% of South Asian workers. This is to say that in the Global North, the pandemic could de facto manufacture million homeworkers overnight, following national lockdowns. In many cases, these would still be contributing to formal sectors of the economy.

It is rather unsurprising that this shift to homeworking could not materialise in the Global South. Labour relations here are largely characterised by informal employment, in its double character – namely, employment in the informal economy and informalised employment in otherwise formal settings. While homeworking represents one segment of informal employment, its major share is composed instead of precarious forms of casual employment, far more difficult to immediately insource in home-settings. By the time the crisis hit, according to the ILO, informal employment constituted 69.6 percent of employment in the Global South and, given the share of working people it hosts, it constituted over 60 percent of total employment on our planet.

One of the key characteristics of informal employment is the interpenetration between productive and reproductive dynamics, activities and realms. The ever-growing reality of informal employment forces us to reflect and revise theories of value generation and extraction, and ultimately the basis of exploitation worldwide. That is, they force us to re-engage in the study of key Marxian categories of analysis, in ways that may account for how the majority on earth labours. These ways must necessarily account for the centrality of social reproduction in the working of labour processes and relations worldwide.

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A crisis like no other: social reproduction and the regeneration of capitalist life during the COVID-19 pandemic

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Back to work!

As the COVID-19 health crisis deepens, it looks increasingly clear that the short-term collapse in global output is likely to exceed that of any recession in the last 150 years – that is, in the entire history of capitalism. The ILO estimates that the crisis will lead to the destruction of 195 million jobs. Hence, after discussing at length the epidemiology of the COVID-19 pandemic, media attention is now increasingly focused on how to restart the global economic engine. We may still be mourning our dead, but time seems to have come to discuss how we guarantee economic survival that, under capitalism, is based on production and work. Here in the UK, from where I am writing this piece, getting ‘Britain back to work’ is becoming the new mantra for the government, even if its own leader is still recovering from the virus. Similar concerns are debated across the world, as the pandemic has by now clearly turned from a planetary health threat into a planetary economic threat. Yet, getting the world ‘back to workain’t no easy endeavour, whilst maintaining social distancing. Global capitalism is based on social interactions. In fact, its global phase has aimed at erasing social distancing, not just between working people but also between countries, markets, commodities and consumers. But at present, the way in which we are used to regenerate life under capitalism would literally kill us, and this is no small print in explaining the impasse of the COVID-19 crisis. It should be the starting point to analyse it. Ultimately, before turning into a crisis of production, the current pandemic has created a systemic crisis of social reproduction. As argued by Tithi Bhattacharya, the pandemic has shown the centrality of life-making activities for the working of capitalism. Moreover, it has also shown the value of care, as well as the stark ‘care inequalities’ experienced by different communities and individuals across the globe. By all means, this is a reproductive crisis like no other before. Read More »