Category: Institutions

On recentring women鈥檚 grassroots struggles to decolonise FinTech narratives

serenanatileLeave a comment

Drawing realised by artist Pawel Kuczy艅ski for Serena Natile’s book

I came to the study of fintech as a feminist socio-legal scholar researching the gender dynamics of South-South migration. While doing fieldwork in Kenya for my PhD in 2012, I came across M-Pesa, a mobile money service used by locals as an instrument for transferring money from urban to rural areas. From the start of my research in 2011 to the completion of my PhD in 2016, ongoing studies on M-Pesa were mainly celebratory. It was acclaimed as an innovative instrument for poverty reduction, development, and gender equality and was enthusiastically supported by donors and international financial institutions such as the World Bank and the International Monetary Fund (IMF), as well as by tech entrepreneurs and corporate philanthropy. Its success story was so uncontested that I decided to change my research question to focus on the gender dynamics of digital financial inclusion, rather than on my initial interest, migration.

The key narrative of M-Pesa鈥檚 success in terms of gender equality was, and still is, that it facilitates women鈥檚 access to financial services, providing them with a variety of opportunities to improve their own livelihoods and those of their families, their communities, and ultimately their countries. In the specific case of M-Pesa, a basic-mobile-phone-enabled money transfer service is considered more accessible and available than transferring money via mainstream financial institutions such as banks, and more reliable and secure than informal finance channels such as moneylenders or the handling of cash via rotating credit and savings associations (ROSCAs). This claim is based on three assumptions: first, that women have less access to financial services than men have; second, that women would use their access to finance to support not only themselves but also their families and communities; and third, that digital financial services are better than informal financial channels because they overcome the limits of cash, ensuring traceability and security. These assumptions motivated advocacy and investment in digital financial inclusion projects and the creation of ad hoc programmes and institutions, all strongly focused on the question of how digital technology can be used to facilitate women鈥檚 access to financial services.

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Is women鈥檚 access to land path dependent? Evidence from Punjab (Pakistan)

hanazahirLeave a comment

Women have historically been excluded from formal land rights in the Indian subcontinent. For its rural population, land remains the most prevalent and significant asset, making bequests of land parcels the main channel through which women can acquire land (Gazdar, 2003; Nelson, 2011; Agarwal, 1994).  Customary land rights prevented inheritance along gendered lines and in colonial times, these laws were codified to prevent the sale and purchase of land parcels (Nelson, 2011). To what extent and how have such gendered patterns of land ownership persisted in different areas of Punjab in Pakistan? To what extent is there path dependence in gendered land ownership? Those are the research questions I鈥檒l tackle in this blog post.

In 2015, the Government of Punjab introduced a series of reforms aimed at enforcing women鈥檚 existing legal land rights in the process of inheritance. One enforcement mechanism introduced was making it the responsibility of local revenue officials to ensure that after the death of a landed individual, each heir would be transferred their inherited share in the land parcel by revenue officials even if the family did not initiate an inheritance mutation process. In addition, paper-based land records originating from the era of British colonial rule were digitized and stored in a central database. The new system made it mandatory to conduct in-person biometric verification of all heirs (male and female) of the deceased for an inheritance mutation case to move forward with the official transfer of land parcels. The introduction of these enforcement mechanisms made an historically exclusive inheritance mutation process more inclusive towards women. But fieldwork suggests that previous patterns of land ownership continue to be repeated in Punjab putting women at a disadvantage. In this blog post I unpack some of these findings, which raise questions about land reform alone as the solution to gendered division of land ownership. Instead, I find that the manner in which old patronage structures interacted with the British colonial system has had lasting implications on the way in which land is distributed.

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Combining dependency theory and the regulation school: Understanding economic rents in Burkina Faso

Juliette AlendaLeave a comment

Dependency theory is experiencing some kind of comeback and has been discussed at length on the 黑料社区 blog. However, one criticism that often comes up when researchers work on the phenomenon of dependency is the fact that the separation between the spheres of periphery and centre may be too simple, insofar as the working class is also exploited in the countries of the centre, and the elite also benefits from such a system in the periphery. While some strands of dependency theory may provide important angles for analysis of trade between the Global North and South, such analysis also risks pitting development in the center against underdevelopment in the periphery. It is worth noting, however, that many dependency theorists did not think of the world in such binary terms, but rather centered class analysis in their frameworks.

In our recent work, we approach the problem of dependence slightly differently in an attempt to nuance our analysis. Dependence is linked to the country’s international insertion, , and is reflected in and unfavourable terms of trade. However, 鈥榙ependent鈥� countries have followed varied trajectories, which need to be analysed in their context, as dependency is not black and white. Let鈥檚 zoom in on West Africa. There, dependency is mainly based on . A rent is defined as obtaining income without contributing to the production of additional goods and services. In a , we have sought to understand a very specific historical case, representing an important rentier economy that was also well integrated into the global economy. We have sought to combine dependency and to understand the stability of such a rentier economy. Let鈥檚 explore the economic history of Burkina Faso.

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The evolution of mainstream economics in five political-economic questions

Aabid FirdausiLeave a comment

The trajectory of mainstream economics can be understood in terms of how the discipline historically responded to moments of crises by attempting to 鈥渢heoretically fix鈥� the understandings related to five core 鈥渜uestions鈥� of capitalist political economy 鈥� namely land, trade, labour, state, and legal-institutional framework. This involved legitimising improvements in land that led to the dispossession and the destruction of the commons, justifying free trade based on comparative advantage as opposed to mercantilist state intervention, reducing labour to a factor of production that was supposedly rewarded based on its marginal productivity and hence not being exploited, legitimising state intervention to stabilise capitalism and developing a legal-institutional framework to protect markets from popular democratic pressures. These 鈥渢heoretical fixes鈥� served to ideologically legitimise, preserve, and perpetuate the core content of capitalist social relations even as it corresponded with the modification of the surface-level appearances of capitalism.

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The Co-evolution of Diversity in Property and Economic Development: Evolutionary Economics and the Vertical Dimension (Part 2)

tingxulaw3 Comments

Having laid out the horizontal dimensions of diversity in property in Part 1, I here offer a critique of the assumption in mainstream economics that all kinds of property institutions need to be or will be transformed into private property to promote economic development. I also reflect on my previous work that applies and develops Darwinian mechanisms of variation, inheritance, and selection鈥攚hich has been extensively discussed in evolutionary biology and evolutionary economics鈥攖o study property regime transformation in China.

While working on , Professor Erik Reinert introduced me to two very important books and encouraged me to think about the relevance of the work of Darwin and Veblen to study property regime transformation in China: by Stephen Jay Gould (1941-2002), Harvard biologist and historian of science; edited by Erik himself and Francesca Viano. Erik also introduced me to the work of evolutionary economists including of Columbia University.

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The Co-evolution of Diversity in Property and Economic Development: Key Concepts and the Horizontal Dimension (Part 1)

tingxulaw2 Comments

This blog post builds on the 鈥業nstitutions, Economic Development, and China鈥檚 Development Policy for Escaping Poverty鈥� piece and comprises two parts dealing with the key concepts (Part 1) and mechanisms (Part 2) for evaluating the co-evolution of diversity in property and economic development. I argue that diversity in property plays a key role in economic development and that there are two dimensions that are important for examining the co-evolution of diversity in property and economic development鈥攈orizontal (Part 1) and vertical (Part 2).

In this post, I offer a critique of the assumption in mainstream economics that private property is the only kind of property institutions that can stimulate and preserve economic development (I am, of course, not the first to offer critiques of this assumption; for existing studies, see e.g., ). I focus on the meaning of 鈥榙iversity in property鈥�, which concerns the horizontal level analysis.

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Institutions, Economic Development, and China鈥檚 Development Policy for Escaping Poverty

tingxulaw8 Comments

I recently have had opportunities to reread the works of Professors Erik Reinert and Peer Vries and to reflect on my previous work on the relationship between institutions, economic development, and China鈥檚 development policy for escaping poverty. Professors Reinert and Vries have studied, along with a few other distinguished economists and economic historians, 鈥榩overty traps鈥� at national and transnational levels for decades (eg, Serra 1613; Landes 1998; Reinert 2007; Reinert 2009; Vries 2013). Both argued that innovation and structural change are the keys to escaping poverty.

Professors Reinert鈥檚 and Vries鈥檚 work on economic development has brought the work of Joseph Schumpeter (1883-1950) to light. In this blog post, I will review how the work of Schumpeter, Reinert, and Vries helps us explore three key questions: First, what kind of development does a country need to escape poverty? Second, what kind of institutions can promote development? Third, how to develop? These three questions are crucial to understand China鈥檚 escape from poverty.

Professors Reinert鈥檚 and Vries鈥檚 arguments can be well supported by China鈥檚 national development policy. Below are a few highlights of rich empirical evidence. In 1984 the Chinese government proposed a development-oriented poverty reduction policy to replace the previous aid reliance policy (Central Committee of the Communist Party of China and the State Council 1984; for critiques of relying on massive foreign aid to escape poverty, see e.g. Moyo 2009; Hubbard and Duggan 2009; Banerjee and Duflo 2011). On 18 January 1992, Deng Xiaoping (1904-1997, leader of the PRC from 1978 to 1989) made a famous speech in his Southern Tour, emphasising that 鈥榙evelopment is the absolute principle鈥� (fazhan cai shi ying daoli). Since then, China鈥檚 economic development has entered a new stage. In 1994 the Chinese government fully adopted the development-oriented poverty reduction policy as a national policy.

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A need to re-examine the temporality of anti-trust action

Anushka mLeave a comment

The structure of anti-trust laws is generally and neatly divided into ex-post enforcement and ex-ante regulation of market conduct and its participants. It is a matter of social and economic policy choice as to whether any regulation should precede 鈥榟arm鈥� or follow it, as is the construction of 鈥榟arm鈥� across statutes. For example, the requirement of a means to understand and assess the market impact of a merger. On the other hand, abuse of dominant position is an ex-post assessment once the dominance has set in, which may be in the long run. The determination of abuse is subject to a rule of reason and analysis by the competition authorities. Against this background, the question is what happens in the intervening period when an undertaking is slowly and surely inching towards domination, engaging in conduct which would be punished only once it becomes dominant ? What happens to the process of concentration of markets, along with the practices in concentrated markets? These questions are not borne out of academic interest alone and are not completely answered by a simple focus on anti-competitive agreements, as will be seen below. The analysis will zoom in on the Indian market conditions to make a case for questioning the timing of regulatory intervention and proceed to show that new economic methods may be required in this task.

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