COOPT, EMPTY, EVISCERATE: Nievas and Piketty on Unequal Exchange

By Güney Işıkara and

The recent paper by Gastón Nievas and Thomas Piketty, has gained substantial praise as well as criticism in a short period of time. Their empirical endeavor is impressive: the authors compiled and published a large dataset of balance of payments, including traded goods, services, direct transfers, and income from foreign labor and capital assets. This is a gruelling task in itself, and the dataset will certainly provide the foundations for many fruitful studies. For many academic economists, Nievas and Piketty’s own interpretation of the data constitutes one such great contribution for it puts forward, as the title of their paper suggests, that modern inequalities across regions and countries have their roots in colonial extraction and unequal exchange characterizing international trade until today. 

We on the other hand argue that the paper falls behind the state of perception of international inequalities in the Marxist tradition, dependency and structural economics literature. It (1) grasps global inequality as the outcome of a collection of distortions of the capitalist market mechanism rather than as an intrinsic feature of the latter; (2) consequently, proposes structural reforms to alter the power asymmetries in international trade, without an appropriate model of those power relations and why they exist in the first place; (3) lacks an adequate theory of production, value and price to understand the exchange relations at stake; and (4) artificially separates the term unequal exchange from the existing literature on trade inequalities, value transfers, and drain of wealth.  

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The white saviour industrial complex and global AI governance

In the realm ofĀ , the ā€˜white saviour’ trope has long been a subject ofĀ . This phenomenon, often rooted in colonialist attitudes, positions Western individuals or entities as benevolent rescuers of non-Western communities, usually without acknowledging or addressing systemic multidimensional inequalities, colonial/racial privilege, and local agency of indigenous communities. The white saviour complex has not only perpetuatedĀ Ā but has alsoĀ Ā the efforts and voices of those it claims to help.

As artificial intelligence (AI) has emerged as a global force to potentially , we see a new manifestation of the white saviour industrial complex within emerging global AI governance.

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The state in Africa is a colonial state

Map of Africa from 1583

The default unit of analysis for many economists when dealing with national economics is the state. Yet, in economics textbooks ā€˜the state’ is often assumed to be a neutral actor exogenous to economic processes. It is assumed to be the same – in essence – everywhere. This conception is based on a Eurocentric view of the state, which assumes all states are ahistorical Westphalian nation states based on Enlightenment principles. However, states are not neutral, but deeply shaped by historical processes. Analyses of ā€˜states’ in economics – country analyses, country data, evaluations of so-called ā€˜macroeconomic fundamentals’ – must be rethought by taking the complexities of the state in Africa into account in their conceptualisations, analyses and policy proposals. In this piece, I unpack how the African state evolved as a colonial project and the implications of it being mischaracterized as neutral state.

A state like no other

The state in Africa has been mischaracterized as a neutral institution devoid of a problematic history which affects its present. In its simplest terms, the state is an institution of governing, i.e., a political organization whose main aim is to establish and maintain security, law and order within its geographic jurisdiction. In economics, the state is discussed and perceived as a one size-fit-all institution, one that is and must be similar in Europe, Asia, Africa, and the Americas. The African state, in particular, has been presented as if it is similar to other states, especially in Europe and the United States of America to which it must aspire.

Moreover, the African has been evaluated and judged on the basis of other perceived progressive states, especially those on the western hemisphere. That states are the same is both untrue, misleading, and ahistorical. African states are very different from other states as they are products of conquest, colonialism, genocides, epistemicides and slavery. It was created to support these processes and it still dispenses them mainly through violence. Those who colonised African countries did so not only to access markets and raw materials, but to displace epistemologies and decentre the colonized; and in the process they centered the colonising countries as the centre of knowledge production and essence of humanity. This is the origin of the superiority of liberal economics as the dominant way of understanding and doing economics in Africa.

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Decolonising for Whom? Recentring grassroots struggles and voices in the ā€˜decolonising fintech’ narrative

By and

Over the last few years ā€˜decolonisation’ has become an increasingly popular subject in Western academia. Broadly considered the process of recognising and undoing the intellectual and institutional structures that enabled and maintain the reproduction of imperial power, calls for decolonisation have opened uncomfortable debates about epistemological privilege, forcing us to confront biases and injustices and to revisit hidden histories and visions for the future. While these debates remain essential, particularly at a time of political authoritarianism, racism, and violence, they also highlight the contradictions in Western academia between decolonisation as a fashionable conceptual trend and its real commitment to justice.

In formerly colonised communities, generational consciousness of colonial oppression and struggles to recover land, property, wealth, and political institutions have created a lived experience of the long-term consequences of colonialism, usually conceptualised as ā€˜coloniality’, that is not a concept but a reality. This experience has shaped movements and protests in the Global South, including within universities. An example is the movement in South Africa, which followed the significant decline of government subsidisation of universities with discriminatory consequences for the disadvantaged Black population without historical wealth and economic privilege. Similar protests concern the recognition of and fight against pillars of colonial power including philanthropists such as British colonialist Cecil , who accumulated wealth by appropriating land, enslaving people and extracting resources, and used that wealth to shape knowledge production.

Other significant protests involve resistance against such as Western financial infrastructures, corporations and international institutions i.e. the International Monetary Fund (IMF) and the World Bank. A  recent example is the ongoing youth-led (Gen Z) round of protests in Kenya , motivated by demands to reject the IMF-supported that, if approved, would have imposed a fresh round of government cuts to basic services and austerity measures on Kenyans. The young people protesting in the streets of Nairobi showed awareness of the colonial legacy and long-term impact of the 1980s structural adjustment policies (SAPs) on the lives of people – particularly those at the lower end of the income distribution, and demanded economic sovereignty as the only way to achieve social justice. The protests were successful in impeding the adoption of the Bill, but many young people paid with their lives, as the government deployed a deadly military response to the protests. 

The demands for decolonisation are based on ending economic and epistemological oppression, two interrelated aims, each grounded in colonialism. Reclaiming knowledge and the economic means that allow its production and dissemination has always been at the centre of decolonisation as an opportunity to remake societies, nations, and the world itself for the better. In its fight for justice, decolonisation is a grassroots struggle against colonial and neo-colonial rulers and rules, as well as against all global and local actors and structures that enable and reinforce those rules. For this reason, grassroots voices need to be at the centre of any decolonisation project.

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Misreading Indigenous Politics: A Eulogy for the Eurocentric Left

Response to

In the latest issue of the London Review of Books under the title of ā€œRed Power: Indigenous Political Strategies,ā€ Thomas Meaney has written a review of three recent award-winning books by historians of Native North America: Pekka HƤmƤlƤinen’s Indigenous Continent; Ned Blackhawk’s The Rediscovery of America; and Nick Estes Our History is the Future. In some ways, the review is impressively learned. Meaney uses the occasion to canvass a generations-spanning array of scholarship on the history of Native North America and engages figures, events, and historiographic questions of which only a very small body of Native and non-native scholars on these topics are even aware.

Marks of erudition aside, Meaney is out to weave together a broader narrative that extends beyond the historical bona fides of these books. The key moment in setting up this narrative comes after Meaney has raised his readers’ hopes by opening with a quite historically literate summary of European settler expansionism and Indigenous peoples’ responses to it. In the paragraph that then really begins the substance of his review, Meaney pivots: ā€œbut recent roadmaps of the historiography either sidestep material questions or mistake a colonized mindset for progressivist one.ā€ This is where Meaney divides the three books under review into three categories of political and historical errors: HƤmƤlƤinen’s revisionist history overstretches the notion of ā€œempireā€ in his account of ā€œIndigenous powerā€ by labeling the Lakota (and in earlier work, the Comanche) as such. (I agree with this critique, so I leave it aside in this review). Blackhawk represents a trend of scholars of Native history and federal Indian law who ā€œhave so thoroughly internalized constitutional ideology that they seem not to notice how their cause has been instrumentalized by the most fanatically libertarian segment of American society.ā€ And finally, ā€œa nominally [!] left-wing Native scholarshipā€ that romanticizes Indigenous experiences, engaging in a politics of authenticity. The latter is how Meaney represents the work of Lakota scholar Nick Estes.

After establishing these categories, Meaney argues that these various limitations are ā€œall the more regrettable because the 20th century offered examples of Indigenous co-operation with the left, cases contemporary political theorists have examined with more care than their historian peers.ā€ This is a strange thing to assert at the outset, given that there was no recognizable anticolonial ā€œleftā€ in the US settler colony that Native nations could possibly have ā€œcooperatedā€ with in the 19th century. The consensus on the necessity and inevitability of land dispossession and structural predation cut across almost all categories of white society, including almost all of those on the far left of the political spectrum. Moreover, this included, as many others have noted, some key figures in the history of African-American political thought such as Douglas and Du Bois. What these historians—particularly Blackhawk and Estes—ask us to do is to suspend some assumptions about what constitutes the commitments of ā€œthe leftā€ at all, given the deep investments of American republicanism and many later iterations of US leftism (let alone the liberalism of the Democratic Party) in colonial dispossession or just racialized indifference.

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

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’ll tackle in this blog post.

In 2015, the Government of Punjab introduced a series of reforms aimed at enforcing women’s 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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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.

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Structural Transformation: Then and Now

by C.R.Yadu and Sahil Mehra

A major theme that dominates the literature on development economics is the narrative of ā€˜Structural Transformation’, which, based on the experience of developed economies, envisages a gradual ā€˜modernisation’ of the economy. This process is expected to unfold in a similar way across the economies of global South, where the importance of non-agriculture/high-productivity/capitalist sectors in terms of both contribution to national income and labour employment would increase and that of agriculture/low-productivity/pre-capitalist sectors would fall, ultimately leading to dissolution of this dualist structure of the economy (Lewis, 1954; Kaldor, 1967; Kuznets, 1968). This transformation is expected to bring productivity gains across all sectors, reduce poverty, and lead to high levels of economic prosperity. According to Monga and Yifu Lin (2019), structural transformation is ā€œarguably the single most significant concept and social goal in the global quest for prosperity and world peace.ā€

However, many of the economies of the global South have not been able to undergo this expected path of structural transformation. For example, in 2019, for sub-Saharan Africa, the average contribution of agriculture to GDP has been around 14% while the proportion of population employed in agriculture is 53%. The GDP contribution and employment figures range from 8% and 27% for East Asian and Pacific economies to 17% and 42% for South Asia respectively (World Development Indicators, 2021).

The dominant narrative, largely propagated by international agencies like the World Bank, still advocates the validity of the process of structural transformation, continues to use this framework to understand the labour and employment transition in the global South, and advocates policies to achieve the same. In contrast, within various critical strands of literature, there is an increasing realization that the nature and pattern of structural transformation that unfolded in the global North might not be replicable in the global South (Dorin, 2017; Scherrer, 2018; Breman, 2019). Building on some of these criticisms, we argue that the possibilities of attainment of a North-style structural transformation remains bleak in the contemporary global South. This is majorly because the socio-economic and political context which facilitated the process of structural transformation of the economies in the global North is no longer available to the global South. The process in the North was, to a large extent, fostered by colonialism which allowed these economies to undertake expropriation and extraction of resources, without much concern for ecological limits, as well as to transfer a proportion of their population to the newly found lands in the temperate regions. Given the significant changes in the structure of capitalism now as compared to the earlier phase, it is worthwhile to investigate the possibilities of the global South experiencing the envisaged path of structural transformation.

In the following sections, we elaborate on why the received wisdom in development economics no longer provides an adequate framework to understand capitalist development in the global South.

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