The economist who exposed the hypocrisy of the free market

The economist Alice Amsden’s work unmasked the dirty secret underlying capitalist development: it relied on states breaking all the rules of the free market. But her work also showed that industrialization required corporate discipline, not welfare.

For American defenders of economic liberalism and free markets, China’s rise has been deeply disorientating. Unmoved by concerns about the market distorting effects of picking winners, the Communist Party of China has engaged in a focused campaign of industrial policy, using the state to discipline firms that have gone on to become globally competitive.

For the economist Alice Amsden, who came to prominence in the late 1980s for her writing on global development and died in 2012, the success of China would not have come as a surprise. Amsden began her career as powerful development institutions such as the World Bank were touting deregulation and privatization as solutions to global poverty. But the experience of the postwar years, in which South Korea — a recurring object of study for Amsden — used industrial policy to drag itself into middle income status, was a refutation of the orthodoxies rehearsed at Davos and in the International Monetary Fund.

The embrace of state subsidies to firms, tariffs, and large-scale infrastructure spending under Joe Biden and Donald Trump’s presidencies is partly a concession to the kind of developmentalist thinking advocated by Amsden. However, Amsden, a fellow traveler, if not devotee, to Marxism offered a more ambivalent assessment of the records of late industrializing nations like South Korea and China than defenders of Biden/Trumponomics are perhaps willing to countenance. For her, the repression of labor was as important to the success of these nations as large-scale economic coordination.

Read More »

Rethinking Economic Development from the Household: Property, Resilience, and Institutional Adaptation in Rural China

What if the story of economic development doesn’t begin with the market, but with the household? And what if property, often assumed to be a static bundle of rights, is better understood as a dynamic institution—adaptive, historically layered, and relational?

These questions sit at the heart of my recent research, which I had the opportunity to present at the Open University’s legal histories conference Land and Property Beyond the Centenary. While my work focuses on property governance and transformation in rural China, its implications stretch far beyond. It challenges dominant liberal narratives about property and development by presenting institutional change as a process of negotiated adaptation shaped by vulnerability and crisis, rather than a linear path towards free markets and individual ownership.

At its core, this work brings into dialogue three theoretical frameworks that are rarely combined: resilience theory, Martha Fineman’s vulnerability jurisprudence, and evolutionary institutional economics inspired by Thorstein Veblen. Together, they offer a rich toolkit for reimagining how development happens—and for whom.

Read More »

C. T. Kurien and Rethinking Economics

Born in 1931, C. T. Kurien contributed to rethinking economics through his various writings, particularly books and his vision for a practical B.A degree in Economics at Madras Christian College (MCC), an autonomous college situated in Chennai, a port city in Southern India. Besides MCC, another institution he contributed to was Madras Institute of Development Studies (MIDS), a research-only institute, also in Chennai. Kurien passed away in July 2024 aged 93.

This blog post provides a brief introduction to Kurien’s life and economics.

Read More »

The Ideal Amount of Work and Leisure

Narayana Murthy, the founder of Infosys, has attracted significant attention for his in which he advises Indian youth to work 70 hours a week to contribute to the nation’s growth. Mr. Murthy,  who also happens to be the father-in-law of the UK’s Prime Minister Rishi Sunak, supports his advice by drawing parallels to the post-war recoveries of Germany and Japan. He suggests that Indian corporate leaders should similarly consider increasing employees’ working hours to enhance productivity

In my view, Mr. Murthy’s advice is ignorant and misinformed at best, or highly malicious at worst. In either case, it is profoundly misguided. In this blog, we will critically assess his statement, examining both its intent and factual accuracy. This discussion will also lead to broader reflections on the themes of work and leisure

Read More »

An acknowledgement of women’s work in economics – hits, misses, and a long road ahead

By and Surbhi Kesar

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2023 was awarded to Claudia Goldin, professor of economics at Harvard University, for “having advanced our understanding of women’s labour market outcomes”. Goldin is now one of three women who have been awarded the prize, and, more importantly, this is the first time that the prize recognises research that makes a fundamental distinction between economic outcomes of men and women. Her work makes significant contributions to both the empirical and theoretical aspects of the theme, particularly in the context of the US.

Empirically, she applied innovative ways to unearth data for women’s labour market outcomes in the US at a time when the labour force surveys only collected this information for men. This allowed her to uncover the long-term trend of economic outcomes for women. Her work revealed that there was no linear relationship between economic growth and development and the women’s labour force participation. Instead, bringing together cross-country evidence and historical data, she empirically established a U-shaped relationship between women’s employment and economic growth. This implies that at low levels of economic growth, larger share of women tend to participate in the labour market, largely in agriculture. However, with economic growth and a sectoral shift away from agriculture, women’s participation faltered. Goldin argued that the “income effect” — the rise in household incomes alongside economic growth along with the increasing use of technology in agricultural activities — may explain women’s initial withdrawal from employment. However, beyond a certain level of economic growth, women’s participation rose as their education levels increased and as more white-collar emerged by replacing the factory jobs that are often stigmatised for women.

Read More »

The South Asia to Gulf Migration Governance Complex – Edited by Crystal A. Ennis and Nicolas Blarel: Review

Migration Governance: Moving Away from “Uncle Always Knows”

Almost everyone on social media has that one Instagram friend who posts bronzed pictures in Santorini, or screenshots of champagne flutes atop the Burj Khalifa, the Dubai skyline looming in the background.  To those internationals for whom travelling on holiday was an annual rite of passage, the pandemic’s travel restrictions resulted in adventures that were inopportunely thwarted. Conversely, to economic migrants everywhere, the implications of banned travel, whether by air, train, or foot, equated directly with the fundamental ability to survive. The scrambles of governments worldwide to gauge appropriate responses to COVID-19 was understandable, inasmuch the magnitude of the event was entirely unprecedented, and the need to contain its spread dire. Yet, one of the largest follies of the pandemic remains undebated: instinctive government responses moved to ban travel without duly considering the global interconnectedness of labour markets in the modern age. Belonging to one state but working in another meant that with travel bans, economic migrants were either shackled to their workplaces, away from their families; or held back from gainful employment whilst trapped at home. In most contexts, migrants are to countries like an unknown opening band at a music concert: the audience does not fundamentally care, and everybody is simply waiting for the headline act. In their origin states, migrant workers often escape the focus of governments who are more concerned with those who remain behind. In the meanwhile, the countries to which they migrate often look at them as charity, despite these workers’ crucial role in economic development. Since they belong to places differently, being of and from multiple geographies at once, migrant workers have shifted typical state-worker relationships to a new realm. What, therefore, does good governance look like for an individual- a migrant– who is from several places at once?

Multiple answers to this question can be gleaned from . As the title suggests, the volume focuses on the South Asia-Gulf migration nexus. There are various considerations that render this book highly topical. First, the movement of people around the world, particularly for employment, has outmoded traditional conceptions of citizenship and a worker’s relationship with a state. This necessitates the re-engineering of these traditional conceptions of citizenship in ways that account for a dynamic and modern global workforce which is constantly on the move. Second, a fitting place to start thinking about the redefinition of worker-state relations is from the lens of workers emigrating from South Asia into the Arab Gulf. These geographies are of particular significance given the staggering volume of South Asian emigrants in the Arab Gulf, with over 80 percent of the region’s labour force being comprised of migrants, as Blarel and Ennis describe in their introduction. Governing this sizeable migrant workforce is what is collectively termed Kafala, a complex set of legal and policy frameworks centred around an employer-oriented visa sponsorship system. For years now, the Kafala system has come under severe criticism from human rights groups for rendering low-wage migrant workers in various conditions of modern day slavery, most recently with the . Further compounding the importance of the South Asia-Gulf nexus is the phenomenon of South-South migration, where the Gulf’s ambitious development projects tend to drive largescale demands for a workforce that can be tailored to expand and contract as per their whimsy (Ennis and Blarel; Hamadah; Walton-Roberts et al). Above all, this volume is timely given the now universal tussle between the need for good governance and sustainable worker livelihoods on the one hand, versus competing pressures for labour market flexibility on the other (Devkota; Babar; Hamadah).

Read More »

Working Overtime or Being Laid Off: The Pressure under Hopelessness among Workers in Chinese Internet Companies

“I’ve been working until 1:00 am or later, then getting up at 8:00 am to continue working this week, but my mentor still pointed out a lot of problems that need to be reworked. But there’s no space to escape, if I don’t work harder, I would be laid off in the next quarter. I couldn’t imagine if I lost this job, either I had a rich family to rely on or had some indispensable skills. Now there’s massive laid-off everywhere due to the economic downturn, and it would be extremely hard to find another job if I’m being dismissed. The most probable result of my life would be nothing.”
– Linda, a 26-year-old operation specialist in Tiktok, Shanghai

In China’s bustling urban centers, a significant number of young individuals are employed in Internet firms, driven by the desire for a more promising future characterized by secure employment and affordable housing. Linda’s experienced colleagues at Tiktok, who worked diligently like her, underwent a transformation in their lives. Originating as diligent students from rural or small-town backgrounds as Linda, known as “,”(“小镇做题家”) they excelled academically, performing well in entrance exams and securing places in top universities. While they lacked broader perspectives and social networks, they nonetheless successfully transitioned into urban elites with competitive salaries, stock shares and options from China’s most valuable company in the early years, becoming firmly established in first-tier cities.

However, this once cherished aspiration has been shattered due to the end of rapid growth and the impossibility of significant salary advancements. The soaring property prices in China, especially in big cities, make it impractical for most people to purchase an apartment in such a metropolis, diminishing the chances of achieving such an exciting miracle. Returning to their smaller hometowns or cities is a challenging prospect for these individuals, primarily due to the limited Internet-related job opportunities outside major urban hubs such as Beijing and Shanghai. Furthermore, young individuals like Linda, who often belong to the first generation of college graduates in their families, face immense expectations of securing respectable employment and surpassing their parents’ financial achievements. These young people are swashed down by hopelessness.

Overtime pressure still grows under hopelessness. According to Chinese labor law, workers should not work more than eight hours a day or 40 hours a week, and overtime is restricted to 36 hours a month. However, staff in the Internet sector, especially at big tech firms, face unpaid compulsory overtime, . The pervasive in Chinese internet companies is exemplified by the widespread adoption of the (working from 9 am to 9 pm, six days a week) and the (work six days a week, every other week).  Despite the alarming occurrences of sudden due to long working hours, which serve as a warning to society, the common issue of excessive overtime work remains largely unchanged.

Read More »

Colonialism and Indian Famines: A Response

Tamoghna Halder criticized one of my writings on nineteenth-century Indian famines. Halder distorts my views and wrongly implies that I suppressed data. He misreads the very nature of the Indian famine debate, thinking it is about facts. It is not. It is about method, about how economic historians and development scholars should read the history of climatic shocks. The piece demands a response and a clarification of the issues involved.

Read More »