In this article I remind readers about the existence of “sacrificial generations” within global capitalist history. By sacrificial generation I mean a group of people at a point in time that experiences suffering with the immanent or intentional effect of changing economic, political or social conditions, which are in turn disproportionately enjoyed by another group of people at a later period in time. I identify four areas in which there systematically exists sacrificial generations: three stages of capitalist development (state formation, capitalist property rights transition and early industrialization) and a cyclical aspect of capitalism (Polanyian-Marxian cycles). It could also be argued that the future generations which would disproportionately experience the environmental costs of past and present generations’ consumption are “climatic sacrificial generations”, but this will not be explored. Read More »
By Callum Cant, Sai Englert and Jamie Woodcock
The so-called platform economy – the distribution of, and access to work through websites and apps – continues to grab headlines and the imagination of policy makers, researchers, and journalists the world over. Much attention is given to its rapid expansion, its potential for further growth, and the large amounts of wealth generated through it.
Amongst many others, PWC (2015) published a much-quoted study, if not always critically, which projected global revenues of $335 billion in 2025. If those numbers are potentially inflated, different valuations do point to a significant financial importance. For example, in 2015 ‘17 companies operating in the platform economy were valued at over $1 billion. Of these 17, 12 were based in the US, one in India (Olacabs), one in China (Kuaidi Dache), one in Australia (Freelancer), one in New Zealand (Trademe) and one in the UK (TransferWise)’.
Alongside these macro observations, an equally large amount of ink continues to be spilt about the liberating nature of the platform for the worker (for a particularly excited account see here). The gig worker, we are told, is entering a new reality free of the constraints of oppressive 9-5 employment, far away from the controlling gaze of their manager, able to choose when to work, set their own wages, and whom to work for. A new dawn of democratised entrepreneurialism is supposedly upon us.
Yet the actual evidence is – perhaps unsurprisingly – less rosy. Across the world, platform workers are confronted with the fact that, far from liberating them (or replacing them), new technologies play a disciplining role, deepening many of the characteristics of working conditions in a neoliberal economy: ranging from insecure and precarious employment relations, to greater managerial oversight and debt control. Callum Cant has masterfully documented some of these processes in his recent book on Deliveroo riders, as Jamie Woodcock and Mark Graham have done in their critical introduction to the gig economy. Read More »
There has recently been much talk that the hegemony of the United States is crumbling, from the decline in its share of world GDP to its possible submission to a new economic power such as China. However, little has been said about the fundamental pillar that sustains the power of the United States, the US dollar.
Globally, the dollar is the most utilized currency, both in trade in products and services and in cross-border financial operations. Given the continued dominance of the US dollar as the key currency of the international monetary system, it is difficult to speak of a declining US hegemony. But how to explain the power of the dollar and the apparent immunity of the United States hegemony in times of financialization?Read More »
How should one assess a book on economic policy that takes a dim view of the state and redistribution in a country that is home to multiple and intersecting inequalities? Economic inequality and the role of the state in tackling inequality emerged as a major talking point in the last decade and it is likely that it will continue to animate academic and policy debates in the following decade too. Therefore, it would not be unreasonable to evaluate any book on economic policy based on the seriousness with which it engages with inequality and how it imagines state intervention in the economy. This review seeks to do precisely that by unpacking the conventional wisdom about the nature and role of the state presented in the book In Service of the Republic: The Art and Science of Economic Policy by Vijay Kelkar and Ajay Shah.Read More »
Nobel Laureate Esther Duflo once likened the work of economists to – tinkering and adjusting as necessary as they engage with the details of economic policy-making. The implication in this comparison is that economists generally understand economic systems and behaviour – how the pipes come together – and that the main work of the discipline is to fiddle with these components – adjusting the pressure, replacing valves – to see what works and what doesn’t.
A critique of this approach was compiled by Ingrid Harvold Kvangraven . The primary criticism is that the basic premise is flawed – we do not, in fact, have a very complete understanding of how the pipes come together. Often, we don’t even know where they are. The institutional architecture that determines economic outcomes can vary widely from one country to the next. With so much variation at the systemic-level the utility of “tinkering” at the margins is questionable.
This will interrogate some of the prevailing assumptions about the relationship between state and capital and look at why and in what ways some economies are deeply intertwined with the state. The structural conditions that actually exist in developing economies are often ignored in mainstream economic analyses – the prescription for countries with large state-owned sectors is usually some combination of more market liberalization, less protectionism, better enforcement of property rights. This ignores why the economy is structured that way in the first place, and therefore such prescriptions risk being disconnected from the reality on the ground, and thus ineffective.
Indonesia’s economic trajectory helps to illustrate this point. Despite a long history of sometimes violent anti-communist sentiment, massive portions of the economy are either partially or directly controlled by state-owned enterprises. According to Kyunghoon Kim “148 SOEs in Indonesia, and their total assets were equivalent to 56.9% of the country’s GDP.” This includes the state-owned oil and gas company Pertamina, three of the four largest banks, the state-owned electric utility PLN which owns the entire national grid, airport operators Angkasa Pura I and II which operate every major commercial airport, the telecom giant PT Telekomunikasi Indonesia and the largest toll road operator Jasa Marga, to name just a few. Read More »
India’s Finance Minister Nirmala Sitharaman has said, while replying to a discussion on the economic slowdown in the Rajya Sabha, ‘growth may have come down, but it is not a recession yet and it won’t be a recession ever’. Drawing on data up until December 2019, I evaluate to what extent India’s economy is indeed slowing down.
Figure 1: Quarterly Rate of Growth of GDP in India
No, it’s not a recession, defined strictly in technical terms, i.e. on the whole, the level of activity hasn’t fallen, even though certain crucial sectors, like automobiles, are seeing a fall. What we have instead is a slow down, a severe one at that, with falling rate of growth of GDP for five straight quarters (figure 1). The Indian government is hiding behind economic jargon to obfuscate the reality that is biting the economy. The writing is on the wall. The Indian economy is facing a severe crisis and the sooner we come to terms with it, the better. Based on a recent paper in Economic and Political Weekly, this blog discusses the changing growth levels in the Indian economy, the reasons for the recent slowdown, and some possible short and long term solutions.Read More »
The newest book by Giorgos Kallis, one of the most prolific degrowth advocates is entitled Limits: Why Malthus Was Wrong and Why Environmentalists Should Care. It is a short and accessible read which contains some important and unconventional arguments. In what follows, I will first briefly summarize the core arguments of the book, which promises to provoke important discussions on the matter of limits and subjects. Then I will reflect on the fuzziness of the primarily cultural conceptualization of capitalism, and argue that neither self-limitation nor degrowth qualifies as a mode of production, such that they could constitute an alternative to capitalism.Read More »
As the year comes to a close, we look back on our most read posts of the year. It’s been a busy year, with over 40 blog posts and two blog series (on financial inclusion and state capitalism) published. The readership of the blog has grown rapidly, the editorial board has expanded, and this year the blog was included in the Top 100 Economics Blogs of 2019 by Intelligent Economist for the first time.
Most read posts of 2019:
- Why so Hostile? Busting Myths about Heterodox Economics (by Ingrid H. Kvangraven and Carolina Alves)
- The Curious Case of M-Pesa’s Miraculous Poverty Reduction Powers (by Milford Bateman, Maren Duvendack and Nicholas Loubere)
- Using Marx as a Pejorative to Defend the Ease of Doing Business: Analysing The World Bank’s attack on CGD (by Dissenting Voices)
- The Green New Deal: Whither Capitalism? (by Güney Işıkara and Ying Chen)
- Neoliberalism or Neocolonialism? Evaluating Neoliberalism as a Policy Prescription for Convergence (by Rahul Menon)
- Rethinking the Failures of Mining Industrialisation in the African Periphery (by Ben Radley)
- An Alternative Economics Summer Reading List, 2019 (by members of Decolonising and Diversifying Economics)
- Philanthrocapitalism: How to Legitimize the Hegemony of the Rich with a “Good Vibes” Discourse (by Jorge Garcia-Arias)
- Mind the Gap: Addressing the Class Dimension in Higher Education (by Lorena Lombardozzi)
- Advocates of the SDGs have a monetarism problem (by Rick Rowden)