Inner-city pressure and living somewhere in-between 

On a cold winter’s day in 2014, I sat awkwardly in the office of the person managing a high-rise apartment building in Johannesburg’s Central Business District (CBD). The building is a former office block that has been renovated by the city’s largest private affordable housing company and is currently rented as residential accommodation. Affordable housing is commercial rental housing that caters to people who earn too much to qualify for state-subsidised housing, otherwise known as social housing, but too little to purchase their own properties on the regular market. Rents in the building in which this incident took place range from R1325 (£65 or Ksh9695) for a studio room to R3589 (£174 or Ksh26261) for a 2-bedroom apartment. I was in the building to interview the manager about the ins and outs of her job, and to then interview tenants living there. However, our interview was interrupted by a distraught tenant. She was visibly upset, and I soon realised that she had been locked out of her apartment. Unfortunately, this was not an exceptional situation. The housing company, like others working in Johannesburg’s inner-city, use lock-outs, or the threat thereof, to ensure that tenants pay their rent. Doing research into the inner-city rental housing market over a period of two years, I had frequently heard about the threat of lock-outs, but this was my first time witnessing the effects of one actually being enforced. Several building managers had told me that they find ways to avoid having to implement them, negotiating with tenants or giving them advanced warning so that they have time to scrounge money together to make a payment and stave off punishment. In this case, however, all efforts to prevent the lock-out had failed. It was the middle of the month, and rent, usually due on the 1st, still had not been paid. The building manager therefore had no choice but to adhere to the demands of her job, even though this had obviously disturbing and upsetting consequences. However, to mitigate the harm caused to the tenant and her young child, the manager, who also lives in the building, arranged for them to sleep in her own apartment that night, whilst they tried to locate some funds to begin repaying the debt. In this case, the pressures induced by fluctuating fortunes and a ruthless cost-recovery business model, as well as the strain to personal relations and consciences this induces, became stark.  

Although people living in affordable housing generally have stable salaries and employment, as the incident above shows, they too can experience downturns in luck, lose money and jobs and find themselves out on the street. Thus, whilst the plight of chronically un(der)employed people and those living in informal settlements is cause for concern and rightly receives much critical attention, it is important to bear in mind that the middle-classes too are caught between Johannesburg’s extremes. In what follows, I trace the (pre-covid-19) experiences of people living in social and affordable housing in inner-city Johannesburg. As will become clear, their lives are shaped by economic pressure, as they work hard to pay their rent and forgo other forms of social interaction whilst striving to get by. At the same time, they also encounter other forms of pressure, as they contend with difficult and unpleasant environments and navigate spaces marked by fear of crime and concerns about safety.  

Other pieces in this blog series have argued that pressure can be theorised as an imbalance between (real or imagined) economic demands and concomitant abilities to fulfil them. However, imbalances also extend beyond economic concerns and encompass desires about living situations, ease of daily life, and safety and security. In inner-city Johannesburg, pressure emanates from the fact that the prevailing urban reality does not match people’s aspirations for central accommodation that is close to jobs, schools and social services, but also provides comfort, peace of mind and liveable environments. Faced with this mismatch or imbalance between aspirations and reality, people are forced to live in-between, to reside somewhere and make do, whilst aspiring to be elsewhere, but simultaneously knowing that there are few avenues through which this aspiration can be realised. The cumulative effects of this pressure is a form of resignation and detachment, a sense of living in-between and accepting what one can get from a vastly unequal socio-economic landscape.  

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Financial Inclusion and the Future of Social Protection Policy

The economic impacts of the COVID-19 pandemic have resulted in major setbacks in addressing global poverty levels. The UN predicts significant delays in reaching a number of the Sustainable Development Goals and the World Bank reports a two-decade reduction in eliminating extreme poverty. In this context, almost every country in the world has expanded, adapted, or developed new social protection measures. Some 1.3 billion people were assisted through this expansion of social protection over the course of the pandemic, from stimulus cheques to caregiver benefits to supports for informal workers (Gentilini et al., 2020). By far the most popular form of support were direct cash transfers (CT), with many governments expanding coverage or eliminating conditionalities entirely.

Like many observers, I was initially hopeful that these expansions would provide opportunities to address the significant gaps in our social protection systems, particularly as the most vulnerable (women, informal workers and migrants) are often excluded. Unfortunately, this does not seem to be the case. Pandemic specific transfer programs lasted, on average, only 3.3 months, with only 7% extended beyond this (Gentilini 2021). Prior to the pandemic, some 4 billion people lacked social protection coverage. The limited duration of these measures, coupled with the long-run effects of disrupted employment, means we are effectively back to where we started—even as the pandemic shows no signs of abating in much of the world.

What has emerged instead are significantly different approaches to adapting the welfare state in a context of continuous and ongoing livelihood crises.     

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Financialisation of healthcare in Brazil: new evidence

By Norberto Montani Martins, Carlos Ocké-Reis and Daniel Drach

The covid-19 pandemic is showing how important universal health systems are. As the virus continues to devastate communities and economies, many governments have started to look at them with different lens. Investing in public health systems should be mandatory, but austerity policies in peripheral countries are still the priority. Moreover, the increasing financialisation of the health sector produces conflicts that constraint the achievement of a truly universal and comprehensive public healthcare. This is what we address in our recent paper, where we argue that lead firms in the provision of healthcare plans seem to have become platforms for the accumulation of wealth by financial investors, a process that is making shareholder value the main guiding principle of firm behaviour.

A good example of such contradictions is Brazil. A universal health system called the Unified Health System (Sistema Único de Saúde, or SUS) was established in the 1988 Constitution. However, it would be misleading to affirm it has provided universal access and comprehensive care: since its inception, SUS faced an inadequate low level of public spending that jeopardized its mission. In the 2000s, the Brazilian government eventually increased public spending in healthcare, but a kind of paradox emerged as it also set up many policies to foster private healthcare and private accumulation in that sector (e.g., health-related tax expenditures).

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Why Austerity is Not the Solution to the Policing Crisis

“Defund the Police” is a powerful slogan. It articulates a vision of a better world that so many of us on the left want to live in. A world free from the arbitrary state violence on display in the killings of George Floyd, Breonna Taylor, and Eric Garner. At the same time, either implicitly or explicitly, it also expresses a strong desire to address the problems that afflict American society with redistribution instead of violence through the provisioning of public goods such as education, health care, housing, and the like. To be sure, I want more than anything to live in this world, one without policing and with robust social democratic programs like universal single-payer health care and guaranteed housing. However, the politics of defund the police is not how we get from here to there.    

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Problems with a bottom-up approach to governance reform: Evidence from India

There is a neoliberal consensus pioneered by Hayek and Tiebout in the 1940s and 1950s in the idea that a market economy-like organisation of sub-national units in a federation will result in overall gains in institutional performance. Literature has focused on the efficiency gains to be derived from making sub-national units competitive guided by the principle that devolved government is better able to respond to voters’ choices. This rests on the assumption that local and national needs vary significantly. In this article, I ask whether the prioritisation of service delivery in healthcare and education sectors is indeed something that varies across states in India. The Indian federal system has been increasingly under pressure to devolve power to the states since the economy was set on a path to liberalisation. Initially, this pressure came from the outside, through international institutions (Bretton Woods, largely) but this opportunity was instantaneously accepted by sub-national politicians who promoted, rightly, the cause of their constituencies. This has taken shape in the form of reduced centralised monitoring of service delivery, and the funds previously allocated to this end are now being directly transferred to states who have unconditional leeway to allocate it to various uses. This occurred too suddenly without a mechanism in place to safeguard and ensure the equitable delivery of essential services in healthcare and education, and an ever widening gap among states.

fig1Source: Data from CMIE States of India, RBI

Building on to this, we also have inter-regional issues due to clustering economies. Some states benefit whilst others (often, the poorer ones) lose out by disgraceful margins. There is a race to the bottom on regulatory easing for corporations, and inter-state bargaining for central resources is competitive, rather than cooperative. Transplantation of a European approach to governance and institutions in the Indian context has meant that natural resources are being plundered by sub-national governments to promote corporate interests, as their citizens remain deprived. Public hospitals and primary healthcare infrastructure are slowly decaying into obscurity as shiny, private health players enter the market. This is the same case within the education sector, cheap, private schools largely targeting the middle class are driving away resources and interest away from the public school system, which in its crippled state cannot justify a case to be the recipient of sub-national governments’ interest. Read More »

Ephemeral universalism in the social protection response to the COVID-19 lockdown in the Philippines

By Emma Lynn Dadap-Cantal, Andrew M. Fischer and Charmaine G. Ramos

Since March 2020, the Philippines has implemented one of the world’s strictest and longest lockdowns in response to the COVID-19 pandemic, which has caused severe disruptions in peoples’ livelihoods. The government’s emergency social protection response, the ‘Social Amelioration Program’ (SAP), has also been notably massive, introducing one-off near-universal income protection. It is an insightful case given that the country’s existing social assistance system has been celebrated as a model for developing countries, even though it has been mostly bypassed in the emergency response. Moreover, the country’s highly stratified and fragmented social policy system has resulted in implementation delays and irregularities that have fostered social hostilities and undermined the potential for such momentary universalism to have lasting transformative effects.

The Philippine government first imposed its ‘community quarantine’ on 15 March, which has since been extended until 30 June. Thus far, the pandemic has not been severe relative to evolving global indicators, with 302 confirmed infections per million people and 11 confirmed deaths per million people as of 25 June (although at only 5,760 tests per million people, these confirmed rates are likely to be significantly underestimated). However, as elsewhere in the Global South, the lockdown has thrown the country into an employment crisis given that more than 60 percent of its workforce is informal, most in precarious situations even when earning above the official poverty line.

In response, the government rolled out the ‘Social Amelioration Program’ (SAP), comprising at least 13 different schemes and with an estimated total budget equivalent to as much as 3.1 percent of the country’s GDP [1]. The largest scheme is the Emergency Subsidy Program (ESP), which has been allocated 200 billion Philippines pesos (PhP; about 3.5 billion euros), more than three times the combined budget of all the other schemes.Read More »

COVID in Pakistan, the Role of Middle-Classes and the Unprecedented Demand for a New Social Contract

Screenshot 2020-06-21 at 10.15.40

A conversation with and Dr. Juvaria Jafri and Dr. Aasim Sajjad.

Aasim Sajjad Akhtar is Professor of Political Economy at the National Institute of Pakistan Studies, Quaid-e-Azam University and a founder of the Awami Workers Party (AWP).  His research has focused on state theory, informality, colonial history, rise of the middle classes and social movements in Pakistan. His latest book is ‘The Politics of Common Sense: State, Society and Culture in Pakistan’.

 Juvaria Jafri is a Lecturer in International Political Economy at City University. Her research is on financial development in Pakistan, including inclusive finance, fintech, and impact investing strategies. Her latest co-edited book is ‘Geofinance between Political and Financial Geographies: A Focus on the Semi-Periphery of the Global Financial System.’

Introduction

The full impact of the COVID-19 pandemic on developing countries is still unfolding. While many countries have managed to achieve some stability in eliminating the spread of the crisis, others are struggling on various fronts. In South Asia, India has received much global attention owing to the violence of a hasty lockdown which was imposed without warning and an accompanying social safety net. Other countries in the region including Bangladesh, Srilanka and Nepal also continue to grapple with the existential question of how to ensure that contagion control does not come at the expense of destroying livelihoods. 

In this interview we focus on the situation in Pakistan. We invited Aasim Sajjad and Juvaria Jafri to address some questions related to the current situation in Pakistan. The following four questions were designed to provide a glimpse of how the pandemic is impacting the existing socio-economic structure of the Pakistani economy particularly focusing on class inequality, fin-tech as a potential solution and the activist and citizen-led first historic demand for a long-term welfare package. 

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