黑料社区 – Page 6 – A Critical Perspective On Development Economics

So, Global or International Development: Why Not Both? Marx in the Field, Planetary Immanent Development, and Centering Political Economy in Development Studies

October 12, 2023October 2, 2023 alemezzadriLeave a comment

In a compelling new contribution in the journal Development and Change, a political economy collective led by builds a strong case against calls to 鈥渦niversalize鈥� Development Studies shifting the focus from 鈥淚nternational鈥� to 鈥淕lobal鈥� Development. Indeed, many such calls at universalization 鈥� at least in the two influential 鈥減andemic papers鈥� the collective thoroughly revises, one is main-authored by and the other by 鈥� are misguided. As convincingly argued by the collective, these calls tone down the structural historical nature of the Global North-Global South divide; they erase development paradigms and understandings from the Global South and trivialize the nature of challenges emerging from long histories of colonialization and plunder, which still regenerate along global value chains and networks, as authors like have shown, as well as distinct regimes of social reproduction and contemporary crises, such as the COVID-19 pandemic, as I explain here and .

Yet, universalizing and globalizing are not the same thing; they can be operated in distinct ways, and through entirely different intellectual projects. Moreover, the discipline of Development Studies, in its mainstream dominant avatar, badly needs 鈥済lobalizing,鈥� given its Eurocentrism 鈥� yet in ways that center the experiences in/of the majority world; think through plural frameworks and locations; and speak to the extraordinarily diverse material realities and practices of power, inequality, and subordination across our planet. Crucially, such experiences, realities, and practices are, at once, the result of trajectories mediated by the Global North-Global South Divide, as emphasized in critical International Development frameworks, yet also always been global in nature 鈥� calling for Global Development lenses 鈥� unlike what narrow development economic theorizing heavily relying on modernization theory has and still suggest/ed. Ultimately, one may wonder: in the debate between 鈥淚nternational鈥� and 鈥淕lobal鈥� Development, why and what exactly do we need to choose?

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

October 10, 2023 surbhi kesarLeave a comment

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 鈥渉aving advanced our understanding of women鈥檚 labour market outcomes鈥�. 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鈥檚 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鈥檚 labour force participation. Instead, bringing together cross-country evidence and historical data, she empirically established a U-shaped relationship between women鈥檚 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鈥檚 participation faltered. Goldin argued that the 鈥渋ncome effect鈥� — the rise in household incomes alongside economic growth along with the increasing use of technology in agricultural activities — may explain women鈥檚 initial withdrawal from employment. However, beyond a certain level of economic growth, women鈥檚 participation rose as their education levels increased and as more white-collar emerged by replacing the factory jobs that are often stigmatised for women.

Decolonising development with Frantz Fanon

October 9, 2023September 24, 2023 benjaminselwynLeave a comment

The great cultural theorist Stuart Hall called Frantz Fanon鈥檚 The Wretched of the Earth 鈥榯he bible of decolonisation鈥� as it encapsulated the urge for freedom across the colonial world (). Fanon illuminates how racism represented an organising principle for capitalist classes by systematically devaluing the lives of the majority of the world鈥檚 population. 鈥楩or centuries the capitalists have behaved like real war criminals in the underdeveloped world,鈥� he wrote. 鈥楧eportation, massacres, forced labour, and slavery were the primary methods used by capitalism to increase its gold and diamond reserves, and establish its wealth and power鈥� ().

One of the reasons for Fanon鈥檚 popularity among those who want to decolonise development is that he argued that post-colonial countries should forge their own paths to development rather than attempting to follow already developed countries. 鈥楾he Third World must not be content to define itself in relation to values which preceded it,鈥� he warned. 鈥橭n the contrary, the underdeveloped countries must endeavour to focus on their very own values as well as methods and style specific to them.鈥�

Not only did Fanon explain the horrors inflicted by colonialism upon native populations; crucially, he also conceived of real human development as a process rooted in a collective labouring class (comprising workers and poor peasants) transcending capitalist brutality.

However these two elements of his thought 鈥� the critical identification of the violence of colonialism, and a real human developmental alternative to it 鈥� have often been disconnected by thinkers influential to the decolonial movement. This represents a dangerous misinterpretation of Fanon. It obscures his vision of a decolonised world and the social forces able to construct it.

What Pressure Produces: The Generative Aspects of Pressure amidst Urban Displacement in Dakar

October 3, 2023September 19, 2023 gunvorjonssonLeave a comment

Figure 1: The old terminus building in Dakar, known simply as 鈥淟a Gare鈥�

During my early days of fieldwork in the old city centre of Dakar, Senegal, I was sitting with the trader Fatim in her tiny market stall under a tattered, weather-worn parasol. Fatim watched over her goods that were balanced on top of some old, repurposed metal drums. The rusty tracks of the former Dakar-Niger railway line stretched out on the ground behind us, forming the backdrop to this small outdoor market. A few dozen other rickety stalls were lined up along the old platform that led to the abandoned terminus building known simply as 鈥�La Gare鈥� (Figure 1). Fatim thrust her arm out to indicate the space around her and exclaimed, 鈥極ften, when people come here, they look around and say, 鈥淭here is nothing here! …Some people think the market at the Terminus (March茅 de la Gare) doesn’t exist anymore, so they don’t come鈥�.

The Terminus (La Gare) was the last station at the end of the Dakar-Niger railway line. The line had formerly connected the landlocked Malian capital, Bamako, to the Senegalese capital on the Atlantic coast. During the first decade of decolonisation a thriving Malian wholesale and retail market – le March茅 de la Gare 鈥� had emerged at the Dakar Terminus. When I arrived in Dakar in 2013 to conduct fieldwork, however, the passenger train, on which the Malian shuttle traders supplying the market had travelled, was no longer running; and the flourishing Malian market at the Terminus no longer existed. In 2003, under pressure from the World Bank, the Malian and Senegalese governments had privatized the formerly State-owned rail network. In 2009, the Senegalese passenger train running between the Malian border and Dakar was discontinued. In the same year, the Malian market at the Dakar terminus was bulldozed by Senegalese authorities, supposedly to make way for 鈥淭he Seven Wonders of Dakar鈥� (, accessed 7^th of June 2023) – a prestigious, but as yet unfinished, construction project.

In this blog post I explore how the traders evicted from the Terminus had responded to persistent uncertainty and economic pressure following the demolition of their market. Rapid and unequal urban developments are occurring across the world, and particularly in the fast-growing cities of Africa. Such developments lead to disruption, uprooting and disorientation, creating immense economic and psychological pressures on urban traders whose livelihoods depend on working in a specific location in the city and accessing certain infrastructures and networks in that space, to connect with suppliers, customers, and middlemen. The following analysis explores what is produced by these pressures 鈥� not in a naively optimistic sense of 鈥済ood things emerging鈥� from pressure, but in a temporal sense of understanding the long-term outcomes produced by pressure. Specifically, I argue that the economic uncertainty and sense of disorientation and uprootedness associated with eviction from the Dakar Terminus had led to a kind of urban diasporic formation among the displaced traders. The analysis thus contributes a temporal perspective on pressure, showing what urban dwellers鈥� responses to pressure may generate in the longer term.

De-dollarisation and Internationalisation of Other Currencies: Geopolitics and Implications for Dollar Diplomacy

September 26, 2023September 6, 2023 sangitafgaziLeave a comment

By Sangita Gazi and Christabel Randolph

, International Monetary Fund (IMF) states that 鈥榌t]he dollar鈥檚 share of global foreign-exchange reserves fell below 59 percent in the final quarter of last year, extending a two-decade decline鈥�. However, surprisingly, the decline in the dollar is not associated with the 鈥榠ncrease in the shares of the pound sterling, yen, euro, and other long-standing reserve currencies.鈥� Instead, the shift in the dollar鈥檚 share in the reserve currency system went in two directions鈥攁 quarter into the Chinese renminbi and three-quarters into the currencies of smaller countries that have historically played a limited role as reserve currencies. This piece examines the shifts underlying this trend with a focus on increased regional alliances in trade and payment systems technology. We conclude with forecasts and implications for a more multipolar monetary order and 鈥榙ollar diplomacy.鈥�

Since the onset of the Covid-19 pandemic, geopolitical tensions and economic stagnation have led to fragmentation in cross-border trade and payment systems. The ongoing Ukraine-Russia conflict and international sanctions imposed by the Western economies have also contributed to this situation by causing disruptions for countries with trade relationships with Russia, particularly for essential commodities like fuel, grain, and oilseed. Moreover, many countries are running low on U.S. dollar reserves amidst inflation, prompting them to consider alternative currencies for cross-border trade settlements. This is further exacerbated by the aggressive rate hikes by the Federal Reserve in an attempt to contain domestic inflation within the U.S. The historical correlation between the U.S. dollar and commodity prices has been disrupted for the first time. As a result, evidence suggests a degree of regional fragmentation in trade-related activities and the use of alternative currencies, leading to a shift away from the U.S. dollar as the primary currency for international trade. For instance, in March 2023, the yuan was the most widely used global currency, surpassing the U.S. dollar and euro.

Further, central banks from emerging markets and developing economies seek to diversify their foreign currency reserve composition. The shift began in April 2022, after key Russian banks were removed from SWIFT following Russia鈥檚 invasion of Ukraine. China increasingly uses the yuan to buy Russian commodities, such as oil, coal, and metals, settling their bilateral trade with Russia in Chinese currency instead of dollars. In a similar effort, India has made several initiatives to create bilateral trade relationships with countries like Bangladesh, the United Arab Emirates, and Malaysia to internationalize the rupee and use it to settle cross-border trades. This trend toward exploring alternative currencies may affect the global financial landscape. Still, its impact about newer currencies鈥� volatility and regulatory systems.

Review:* Special issue of Africa Development by Post-Colonialisms Today**

September 18, 2023September 1, 2023 rcbushdfc940d4baLeave a comment

A new calendar year ushers in the usual array of tropes on Africa. They include why the continent is failing, what it should be doing better and why it has so much resilience in dealing with its own frailty. Overwhelmingly, Western institutions (NGOs, credit rating agencies, etc.) repeat tired mantras of the international 铿乶ancial institutions, ignoring the insights of African scholar activists and the historical backdrop to the continent鈥檚 contemporary crises. Neglect of such analysis leads to the failure to understand why and how different African countries are in the mess that they are and why the mess has structural continuities and conjunctural discontinuities. The antidote to Western-centric analysis is the superb collection of essays in a special issue of Africa Development, a journal of the Council for the Development of Social Science Research in Africa (CODESRIA), which emerged from the Post-Colonialisms Today project. The range and insight of the collection is difficult to capture in a short review, but there are two continuous themes among contributors: the importance of revisiting the historical past and the signi铿乧ance of sovereignty, or the absence of it.

Financial Statecraft and its Limits in the Semi-Periphery

September 12, 2023August 31, 2023 karasgdavidLeave a comment

Over the past decade, two, intertwined research agendas on (IFS) and (SF) have proposed to identify how an increasingly finance-dominated global capitalism incorporates the (Semi-)Peripheries.

The IFS research agenda recognizes that a 鈥渟ubordinate鈥� national currency comes with a risk premium increasing the costs of financing public debt 鈥� in other words, the current, US dollar-based currency hierarchy acts as a structural fiscal constraint in the Global South, limiting the scope for badly needed public investments. Foreign capital 鈥� in the form of foreign currency-denominated sovereign and private debt-, foreign aid, and foreign direct investment – is then to this artificial and unfair developmental constraint.

The SF agenda examines how this straightjacket on fiscal space has been further compounded with the liberalization of global capital mobility over the past forty years, diffusing credit-based accumulation strategies from the Core to the Peripheries: from socially and environmentally vital public goods and transformative industrial policies towards developmentally regressive strategies of accumulation driven by speculation and asset-price inflation.

Programmatic visions for liberating (semi-) peripheral economies from the dual constraints of a national fiscal space suffocated by the global currency hierarchy and globally mobile capital flows which deepen financialization are underdeveloped. Two scales of action are plausible: At the international level, , but it remains uncertain what forms of international financial solidarity and collaboration, if any, will materialize under its aegis. The national level comprises an alternative scale as the State continues to be perceived as the most likely candidate for ringfencing domestic social, environmental, and developmental objectives from the pressures of global capital mobility and the structural constraints of the global currency hierarchy.

In a with P谋nar E. 顿枚苍尘别锄, we study the politics governing the management of money in Hungary and Turkey, two semi-peripheral economies where the executive has built a vast array of direct and indirect tools to intervene in monetary policy, retail banking and credit allocation to manage financial subordination.

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

September 4, 2023August 25, 2023 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.