Teaching feminist economics to gender-blind policymakers in Hanoi

On 21 August I posted a blog for the International Association of Feminist Economics, of which I am a founder-member.  The post can be read here.

Wealth inequality in the UK

From www.inequalitybriefing.org, an excellent visual overview of the state of inequality in the UK today.

Global wealth inequality -- what you never knew you never knew

From www.therules.org, an excellent brief overview of historical and contemporary global inequality.

How to feed a growing world

An exciting round-table (that is more than an hour long, but worth it) with activist and best-selling author Raj Patel (Stuffed and Starved, Food Rebellions, and The Value of Nothing), geneticist Molly Jahn (former USDA Deputy Under Secretary and University of Madison-Wisconsin professor), and award-winning chef Marcus Samuelsson (owner of Red Rooster restaurant in Harlem, author, and UNICEF Ambassador)to dispel myths about population growth and food security.

Overpopulation: the making of a myth

An excellent tutorial introduction as to the creation of the myth that the world is overpopulated.



As some students have remarked, in the words of Raj Patel, 'scratch a Malthusian and you'll find a racist.'

Putting growth in its place: Amartya Sen and Jean Dreze on India's political economy in the 21st century

This is an excellent article by Jean Dreze and Amartya Sen on India's social and economic performance in the 21st century. It was first published in Outlook.

www.outlookindia.com | Putting Growth In Its Place

who speaks for Africa?

I have admired Bob Geldof for a long time. Here, in answering why 2 white men should presume to speak for Africa, he offers a spot-on answer:

http://www.theglobeandmail.com/news/world/g8-g20/video/who-speaks-for-africa/article1562615/

land grabbing in Africa

I have just been sent this excellent report from the NHK World Service on land grabbing in Africa. It is well worth the 9 minutes it takes to view. Note that the first 8 seconds the screen is blank.

hypocrisy over Haiti

The horrific earthquake that struck near Port-au-Prince, Haiti's capital, on Tuesday has apparently destroyed large parts of the city and will result in tens of thousands of deaths: the Haitian Prime Minister is already saying at least 100,000 have died. As communications were restored, the world started to respond: the US, United Kingdom, France, Canada, Germany, China, Mexico and Venezuela all pledged immediate support in terms of personnel, cash and supplies, while the Inter-American Development Bank, the United Nations and the World Bank have all released money to be used for emergency relief.

No one should doubt the extent of Haiti's need in the face of the worst earthquake to rock the country in 200 years. But the reality is that the need has been present in Haiti for decades. The response of the global community to the calamity is necessary: but Haitians have been living in a calamity for years. More to the point, some of the very countries that are rushing to the aid of the country are the ones that are responsible for the systemic calamity that Haitians have had to endure. The hypocrisy in evidence over the Haitian earthquake is breathtaking: the countries and their corporations that have mired Haiti in poverty must now be seen to be 'doing something' because a global media event demands a response. They rush in, having created the very conditions that enabled the earthquake to be so deadly.

Haiti, the first country to overthrow colonial slavery and achieve independence, is the poorest country in the western hemisphere. Two-thirds of its population of 10 million live on less than US$2 a day, and two-thirds of the population still live and work in the countryside. Yet Haiti is a prime example of the fact that poverty is not a naturally-occurring phenomena: it is created, and has been created in Haiti.

Between 1957 and 1986 Haiti was brutally ruled by Francois "Papa Doc" Duvalier and his son, Jean-Claude, or "Baby Doc". Their private militia, the Tontons Macoutes, killed tens of thousands as the country lived in fear. As was common during this period, the United States, which had occupied the country between 1915 and 1934, turned a blind eye to the terror in its backyard, as the Duvaliers were fiercely anti-communist. But there was more to the support of the US than just political ideology: there was also an economic interest at stake, because during the reign of the Duvaliers Haiti set up two tax-free export-processing zones in Port-au-Prince, with, at their peak, 180 factories assembling light manufactures for US transnationals exporting into the US market. So Haiti had a classic 'dual' economy: a small enclave of a manufacturing sector owned and operated by US capital that generated dollars for the Haitian elite, surrounded by a vast agrarian hinterland; beyond the small number of jobs that were generated in the export-processing zone, the linkages between the enclave and the hinterland were minimal. This economic structure became the modern foundation of the extreme inequality that has characterized Haiti since independence and which continues to do so: within the French-speaking minority that constitutes Haiti's ruling class, 1 per cent of the population own nearly half the country's wealth even as the Creole-speaking black majority remains impoverished.

The political instability that has rocked Haiti since the overthrow of the Duvaliers in a military coup in 1986 has its origins in this profound inequality. A vibrant civil society fought it; it was from civil society that Lavalas, a popular movement for social change, emerged, and their candidate, the Roman Catholic priest Jean-Bertrand Aristide, was elected President in 1990. Yet when Aristide's government started proposing radical reforms that challenged the interests of Haiti's dominant class, the military intervened again in support of the status quo. It was only a US-led intervention that forced a return to constitutional government in 1994, and that intervention came with a price: the restored government of Aristide had to implement an IMF-led structural adjustment program. Radical reform was overthrown, along with the military, by the US intervention. Aristide was de-fanged--he now lives in exile in South Africa--and the former radicals that had confronted the Duvaliers and the military starting scrambling for the crumbs of elected office as the boundaries between political parties and urban gangs faded and the state became increasingly dysfunctional.

One aspect of the structural adjustment program was particularly pernicious: the country had to dramatically reduce import tariffs on rice, the staple food of Haitians. To an uninformed outsider, this might seem sensible--why not import rice that was cheaper than Haitian rice? But the impact of this reform for the bulk of the Haitian population, who were peasant farmers, was nothing short of catastrophic. Even in the late 1980s Haiti was self-sufficient in rice, which meant that Haitian peasants could make a rudimentary living selling their surpluses for urban consumption. Cheap imports undermined Haitian rice farming, and hence peasant livelihoods, and now 2 out of every 3 spoonfuls of rice that are eaten in Haiti are imported.

The wanton destruction of Haitian farming massively contributed to the deforestation that plagues the country and, through the latter's impact on flooding, severely aggravates the destructive impact of the tropical storms that periodically sweep Hispaniola. It forced hundreds of thousands to leave the land to search for non-existant jobs in the cities: a lucky few were able to migrate to the US or Canada, but most ended up unemployed and living in squalid shanties such as Cite Soleil, in wooden or tin shacks, with no running water, no sewage systems, and no electricity. Cite Soleil, the outcome of an economic policy foisted on the country by outsiders, was at the epicenter of the destruction on Tuesday.

Cheap rice imports sustained the perverse inequalities of wealth, power and privilege that define Haiti's ruined political economy. Where did those rice imports come from? The United States. From which countries did the rice trading companies originate? The United States. Structural adjustment may have been a disaster for Haiti's agrarian economy, but, as I argue at length in a chapter in my forthcoming book Hungry for Change? Farmers, Agrarian Questions and the Global Food Crisis, it was a boon for Louisana's rice farmers and trading companies.

That the United States and other advanced capitalist countries, which propped up the Duvaliers in return for cheap manufactures and then not only neutered radical reform but indeed destroyed the livelihoods of Haiti's peasantry, should now express dismay at the destruction of Port-au-Prince compounds the depth of the tragedy on Tuesday: to the social wreckage wrought by decades of foreign tutelage and about which we did very little there now lies physical wreckage, to which we will respond.

the World Bank and poverty

According to the World Bank's website, 'at the heart of the World Bank’s work in more than 100 countries is the focus on poverty reduction. Almost one billion people live on less than $1 a day; 2.5 billion live on less than $2 a day. Beyond causing hunger and malnutrition, poverty makes people vulnerable to economic shocks, natural disasters, violence, and crime. They are often denied access to education, adequate health services, and clean water and sanitation.'

Excluding China, the number of people living on less than $1 a day has gone up since 1985. Excluding China, the number of billion living on less than $2 a day has gone up since 1985. This begs the question: if 'working for a world free from poverty' is at the heart of the World Bank's mission, why have the numbers of poor people increased in the past 20 years?

The people that work in the World Bank are not evil. They do not arrive at their office, in Washington, or in Hanoi, or in Maputo, and think 'How much poverty can I create today?' Indeed, the World Bank is full of well-meaning people who care passionately about poverty, who have learned a lot about the causes and consequences of poverty, and who have often worked very, very closely with poor people, in order to try and make the world a better place. I should know: many people I know have worked with, or still work for, the Bank, and they are not wicked people.

At issue, then, is how an institution full of well-meaning people can end up deepening the very phenomenon that they purport to want to remedy. How is it that the doctor ends up making the disease worse?

The answer lies in the institutional structure of the World Bank, and the career structure for those that work within it. The World Bank as an institution is dominated by representatives from the North, and, as Robert Wade of the London School of Economics has admirably shown in work that was published almost a decade ago, within those representatives, the role of the United States Department of the Treasury (the US finance ministry) is paramount. The US Treasury ultimately decides who becomes President of the World Bank. It has a disproportionate degree of influence in who assumes senior positions within the World Bank. Further, non-American Executive Directors at the Bank, who, along with the President, tend to set day-to-day policy and do pivotal things like approve loans, tend to understand the need to follow the lead of the United States in decision making. Thus, the Bank, which is staffed by a heterogeneous group of often very talented people, is an extremely hierarchical structure--almost Leninist in its design--in which those at the top make decisions in light of their belief system, and often (willingly) ignore good advice from those at lower levels of administration.

In terms of career structure, the World Bank tends to reward the orthodox. The World Bank is dominated by economists trained in the United States in neoclassical economics, which formally demonstrates the efficiency of free markets and private producers and the benefits of international trade and competition. People whose economic ideas stray from this agenda--people like Branko Milanovic and Joesph Stiglitz--have had a very hard time getting their ideas listened to, let alone accepted, and the message to the vast majority of the staff of the Bank is clear: don't upset the apple cart if you want to maintain the privileges that being a World Banker brings. Again, then, the career structure of the Bank is one that reinforces a pre-existing set of views, rather than challenging those views.

It is this combination of a hierarchical institutional structure and a career path that rewards orthodoxy over challenge which results in the World Bank clinging to a set of policy prescriptions that have, in essence, changed very little in 25 years and which have had a significant global impact, in that they have contributed to increasing the number of poor people in the world.