The marginalist revolution in the late nineteenth century marked the beginning of the end of classical political economy and the birth of what came to be known as neoclassical economics (Sandelin et al. 2002). All three pioneers of marginal utility theory—Carl Menger (1871), William Jevons (1888), Léon Walras (1954) —referred to scarcity as the starting point for economic analysis. Through the work of these pioneers, especially Menger’s, the centrality of scarcity became a core premise for the advancement of contemporary neoclassical economics (see Hayek 2004:19; Robbins 1998:277). As a result, virtually every neoclassical economic textbook refers to scarcity—even though the field of economics is becoming increasingly differentiated.
I have argued in my research that scarcity problems are, and will remain, an important sub-set of problems, but we need to include sufficiency and abundance problems as well (Daoud 2007, 2010, 2011a, 2011b, 2015, 2017). Under scarcity, economics will give us insights about how people optimize their behavior to get as much as possible out of their limited resources. Neoclassical economics is mainly interested in what we can call allocation problems under a scarcity assumption. If actor A has a set of resources R, that is scarce in relation to fulfilling a set of wants W. Neoclassical economics tells us that a rational actor will optimize his or her resources in such a way that person can derive as much utility U as possible given the circumstances. These types of problems are central to many social science issues—they face governments allocating a limited budget to a myriad of popular demands, they face the individual in deciding if he or she should go to university or take a job. As social scientist, we need to keep analyzing these situations.Read More »
Is it time for dependency theory to make a comeback? Its central idea is that developed (”core”) countries benefit from the global system at the expense of developing (”periphery”) countries—which face structural barriers that make it difficult, if not impossible, for them to develop in the same way that the already developed countries did. As neo-classical economics came to dominate the field in the 1980s, the theory lost prominence and traction. Given the vast imbalances that persist within and among nations in the global economy today, it’s an opportune time to revisit the framework.
To that end, INET’s Young Scholars Initiative (YSI) has released a new e-book, Conversations on Dependency Theory. The volume, released by YSI’s Economic Development Working Group, comprises interviews with 13 scholars from around the world who express a variety of viewpoints on the meaning and relevance of dependency theory in today’s context.
As the 2018 elections in Zimbabwe draw near, the political contest on which political party is best suited to steer the country towards a better future will be dominated by the economic agenda during campaigns. The kind of language that both ZANU PF and the opposition coalition led by the MDC (M) will use to persuade the electorate has become all too familiar.
On the one hand will be the nationalist/patriotic discourse celebrating land reform and advancing the programme for indigenisation and economic empowerment. Inherently connected to that is a sharp criticism of global imperial machinations against Zimbabwe through sanctions against a party determined to defend the fruits of its economic transformation following the fast track land reform programme. Underlying this discourse is the argument that Zimbabwe is using local economic transformation to challenge the worst excesses of enduring global imperialism. ZANU PF will again depict the opposition, particularly the MDC, as a movement that is severely compromised by collusion with the imperialist west to the extent that it will struggle to balance local national interests against those of the British and American governments.
Offering an alternative narrative to this discourse is opposition politics that will claim that the more immediate struggle is against nationalist authoritarianism. Making reference to the unending economic crisis, the opposition will argue that the ruling party presided over a poor human rights record, economic collapse characterised by high deindustrialisation, record unemployment, the informalisation of the economy and hyperinflation in the period between 2000 to 2009; as well as its contrasting current excesses of severe illiquidity. The suggested alternative will be re-engagement with the global economy through attracting investment and creating jobs for all.Read More »
This new Working Paper studies the economics books which – judged by the number of editions – were the most influential between 1500 and 1849, and compares these to what is represented in accounts of the history of economic thought today. The most interesting outcome of this work is that if we assume some degree of correlation between the influence of a text and the number of editions published, the publication history we present here suggests that some authors who were once influential are now being neglected.Read More »
This month, four prominent Marxists met at The New School in New York to debate the relevance of imperialism. The debate was related to the publication of Prabhat Patnaik’s (Jawaharlal Nehru University) new book A Theory of Imperialism (written with Utsa Patnaik). With him in the panel were geographer David Harvey (CUNY), political scientist Nancy Fraser (The New School), and economist Duncan Foley (The New School). Economics Professor Sanjay Reddy (The New School) moderated the debate. The main question for the panelists was: Is ‘Imperialism’ a relevant concept today? A fruitful debate followed, suggesting that contemporary imperialism is crying out for analysis and critique.
Read More »
This blog post attempts to proffer insights on the possible influence of prevailing economic circumstances and how they may play out in political dynamics in the run-up to the 2018 elections. Zimbabwean politics has been intensely competitive since the formation of the MDC in 1999, giving the ruling ZANU PF the most effective challenge since independence. Nowhere, however, did the opposition come any closer to clinching electoral victory than in 2008 where they were eventually talked into sharing power after a violent build up to the run-off elections. The two parties will face each other again in 2018 and the question that remains is whether the efforts at ‘grand coalition’ building will address the deficiencies of the opposition. However, as 2018 draws near, it is becoming crystal clear that the structural constraints facing the economy is already setting the battlelines for political parties. Therefore, debates on ‘grand coalition’ building in one way or another will have to address the question of the economy in a manner that will resonate with the ordinary men. The political parties that will see beyond electoral fraud and malpractices in their strategies will most likely have more traction with voters.Read More »
A story is told that a few years after independence in 1964, Kenneth Kaunda, Zambia’s first president, visited one of the mines in the mineral rich Copperbelt Province and was immediately struck by the complete absence of Zambians in senior management positions. He proceeded to ask the mine owners as to when they reasonably thought Zambians would be ready to occupy positions of influence within the country’s mining sector. With straight faces, the mine owners responded “not before 2003, Mr. President.”Read More »
I was privileged recently to spend a little time in The Gambia, whose people recently overthrew a megalomaniacal, authoritarian and in many respects vicious President, Yahyeh Jammeh, in an extraordinary democratic moment, due to their courage and the timely supportive action of other countries in West Africa (and very little if at all due to support from major powers, apart from their role in placing some effective limits on prior abuses and eventually supporting a Security Council resolution that helped to legitimize the ECOWAS action).
I was able to observe a moving event in which members of the country’s diaspora, from Alaska to Taiwan and from Cape Verde to Sweden, most of whom were active in opposition (and quite a number of whom were highly educated professionals successful in the countries to which they have departed) assembled to meet the new President and to express their pleasure at the New Gambia as well as their sincere hopes for the future. Conversations with ordinary Gambians reveal general relief and enormous optimism. Arguably, the current juncture provides the first opportunity since the country’s independence in 1965 for a broad ranging public conversation on the ends and means of development.Read More »