Connect with us

Economy

The Pandemic Revives the Debate on Development and its Discontents

Published

on

Authors: N.S Abhilasha and Aishwarya Bhuta

The COVID-19 pandemic has dealt a devastating blow to lives and livelihoods across the world. No nation-state, be it rich or poor, strong or weak, rogue or failed has been spared by this unanticipated catastrophe. A superpower such as the United States of America has had to kneel before the mighty crisis, while other European giants the likes of Italy, Spain, UK, and France have also been forced to lay their arms down. At the same time, the small island nation of Cuba has been exemplary in extending international medical support to severely affected Italy as well as Qatar, South Africa, Algeria, and Venezuela. Such contradictions compel us to engage into a critical interrogation of the idea of development itself.

The Age of Improvement

It is useful to look into the origins of modernization before we analyze development in contemporary societies. The 1550s mark the onset of the early modern period. The eighteenth century was called the Age of Improvement. Empirical sciences such as botany and geology enabled human beings to see, classify and replicate natural resources. Desired improvements could be brought about by dominance over natural and human resources in order to produce  crops and commodities of the highest economic value. To improve was to be able to see and use every tree of well planned, neat-looking forests, as Richard Drayton observed in Nature’s Government (2000).

Science with its power of reason aided Europeans to colonize unknown lands, but there was no dearth of challenges for them. Epidemics, famines and earthquakes followed in quick succession. Serious investments in medical science started only by the mid-nineteenth century. One of its objectives was to rebrand their image as benevolent rulers. Scientific societies with ‘experts’ were appointed in-charge of surveys and documentation. However, there was little emphasis on basic amenities such as nutrition, safe housing and sanitation in the colonies. Private interests of mine owners, plantation owners and traders invariably held a sway on scientific pursuits.

Modern State and Welfare

The late twentieth century saw increasing movements for independence and growing demands for equal rights. A welfare state is one where social services such as education, health-care and nutrition are considered to be rights, i.e. citizens need not depend on market forces for the same. But the newly formed governments could not undo the image of mai-baap (guardian). In The Three Worlds of Welfare Capitalism (1990), Gosta-Esping Andersen argues that there are no welfare states without conditions. If the welfare measures are exiguous or of poor quality, then the privileged do not hesitate from approaching private service providers. In contrast, when social assistance is provided to those who ‘demonstrate’ the need for it, the beneficiaries must bear social stigma. Moreover, inefficiency in mapping mobile labour results in many migrant workers being omitted from receiving their share of social assistance.

The ongoing lockdown illustrates how migrant labour is commodified and dependent on capitalist market forces. A long chain of contractors, sub-contractors and petty bureaucrats stand between the government and the worker. In India, the relief measures announced by the central and state governments have been not only tardy but also grossly inadequate. A stark contrast is visible in case of professionals and students stranded abroad. Special flights and quarantine facilities are arranged for their repatriation, while poor migrant workers are forced to walk thousands of miles in scorching heat to return home. Class and caste are important factors that shape the interactions between the state and the people.

The Malaise of Modernity

Development and modernity cannot be studied in isolation. Rationality, reason, secularization, advancements in science and technology, and the capitalist mode of production are the features of contemporary modern societies. While Marx located the source of the problems of modern industrially advanced societies in capitalism, Weber attributed these to increasing rationalization and bureaucratization. As social interactions come to be governed by calculations and methodical procedures, we see the world trapped under an ‘iron cage of rationality’. It is astonishing how the industrially advanced Western countries could neither anticipate nor avert the spread of the contagion despite being home to the cream of the world’s research centres and institutions.

What unfurl before us are both the juggernaut of modernity as conceptualized by Anthony Giddens as well as Ulrich Beck’s ‘risk society’. As argued by the former, modernity has emerged as a potent force nearly impossible to tame. Further, the pandemic has exposed our risk societies wherein the central concern remains not inclusive development but the prevention, management and control of risk; in this case, that of mass contagion. Scientific communities all over the world are rushing to manufacture a vaccine against and cure for COVID-19, with little success so far. Even if a vaccine is discovered, its effective distribution will be a huge challenge given the inequalities of access.

The Development Conundrum

Development has been an uneven process with some developing at the cost of others. In The Myth of Development (1999), Vincent Tucker traces the beginning of the development discourse to the end of the Second World War (1939-1945). Proclaiming that it had achieved the highest level of economic and cultural evolution, the USA soon began urging the ‘left out’ countries to ‘catch up’. This process of catching up or ‘development’ was to be achieved at two levels – economic and intellectual. Backed by the might of rich and developed countries, international development agencies began providing loans and aid under the pretext of helping the ‘underdeveloped’ countries harness technologies and institutions for accelerating economic activity. Besides, Western educational institutions continued to strengthen their hegemony over knowledge production.

The post-War period witnessed rapid growth and expansion, especially in the two immediate decades from 1950-1970. But as J. R. McNeill notes in Something New Under the Sun (2000), this period also marked an uncontrolled experiment on the earth. Greed for cheap energy forced countries in perpetual conflict, a prominent example being the Gulf War of 1991. More subtly, the West defined the one-dimensional path of progress in culture and knowledge, education and politics, religion and community. Forcing the underdeveloped countries to follow the path charted by the developed countries without considering the unique historical experiences of the former gave rise to what A.G. Frank called the ‘development of underdevelopment’.

Pandemic and Biopolitics

The pandemic has legitimized what Foucault termed as biopower, or the mass control of bodies and populations. Science and technology have become indispensable tools for controlling nature and human thought. The state has established complete dominance over our lives through its various institutions, mainly bureaucracy and military. Instances of police brutality are surfacing every other day during the lockdown. Added to this is the power of technology which facilitates round-the-clock surveillance. The Indian government is trying to mandate the download of the Aarogya Setu contact-tracing application notwithstanding several apprehensions regarding violation of privacy.

Human life can scarcely remain untouched by larger socio-political processes and strategies. This crisis has endangered life itself, making biological life the object of power. The state emerges as the sovereign authority governing every aspect of our public as well as private lives during the pandemic. While the urban upper and middle classes can work from home and be safe inside their gated communities, migrant workers are left with neither work nor home. The logic of biopolitics considers some lives to be dispensable and less equal than others.

Critical questions

Be it for ‘improvement’ in the eighteenth century or for ‘development’ in the twentieth, natural resources and the poor have been exploited as means to greedy ends. In their scramble for development, the most powerful countries of the world have shown little regard for anything, be it the weaker countries or the environment. The COVID-19 pandemic has shaken our belief in the technology-empowered invincibility of human beings. Despite unparalleled advancements in medical science, millions are being infected by the novel coronavirus and thousands have lost their lives. Why are the most developed regions the worst affected? Are ecological disasters and diseases the dialectical repercussions of development?

Epidemics and pandemics have been a part of human history since ancient times. While  diseases such as smallpox and plague have been subdued, new infectious ones are emerging. Nevertheless, public health has not received the attention it deserves. The exoticization of diseases tends to dominate our daily discourse rather than holding our governments accountable for their structural failures.

Amartya Sen emphasized the instrumental as well as constitutive values of freedom in the conception of development. Freedom from hunger, morbidity and early mortality are not only instrumental to other freedoms, but also constitutive of the larger development project. Universal access to education and healthcare facilities promote general well-being and are pivotal to growth and development. The dominant idea of development rests on a paradoxical combination – more control (bureaucratic, technological and military) and less freedom. One  way to resolve the paradox is to heed Sen’s advice of development as freedom – to ensure substantial freedom through quality education, healthcare, political participation, and social security.

N.S Abhilasha is a PhD student at Indian Institute of Technology, Guwahati, India. She is interested in the environmental and social history of diseases.

Continue Reading
Comments

Economy

Pandemic Recovery: White House – Check-In or Check-Out Times

Naseem Javed

Published

on

Credit: Diego Rivera

Some 200 nations of the world are in serious economic pains of varying degrees; the images and narratives on social media makes the world appear small and spinning out of control, shrinking mental abilities to Tik-Tok tempo to fit small size screens. In reality, when global dialogues engage some 5000 languages, 2000 cultures, bouncing in 10,000 cities, 11,000 Chamber of Commerce, 100,000 trade associations and some five billion connected alpha dreamers extremely dynamic vibrancy appears. The world is immensely large, as only less than 5% its populace has ever travelled globally while 50% never went outside their own country. On social media, everyone is a certified global expert.

Nevertheless, some 200 nations are trying to change the world toward a better workable plateau, peaceful diversity, tolerance and some sort of balanced trade. The world is hungry seeking out untapped hidden talents of its local citizens, suppressed by the bad local policies. There are continents, oceans, jungles, animals and things, simply, so much, so large, so vast, a mind cannot fathom. Blessed are those who have open minds and souls. The rest self-imprisoned in their own minds, lost in the darkness of their own fears. The borderless world of commerce always needs colorfully smart; open to diversity to bounce in global space with national and global collaborations.  

Such doctrines lost during the last decades as economic disconnectivity blossomed under hologramic economies. Pandemic recovery, today, forces mobilization of the midsize business economy as a bold adventure on quality exportability based on upskilled citizenry. Occupationalism demands small and midsize manufacturing to uplift local grassroots prosperity. In the history of humankind, no other experiment of human endurance has ever been as successful as America; a century old, image supremacy of entrepreneurialism wasted when some 100,000 factories and Middle-Class America disappeared from the heartland. The manufacturing based economy laughed at over ‘information economy’ and hologramic adventuring. Deep study and new global age thinking is a perquisite.

Three types of new challenges

Nations without funding: It is almost a fact most governments from top to bottom are simply broke, and almost a fact most governments have already wasted their funds beyond their means. However, if we focus just on priorities, above programs are primarily not new funding dependent rather they are deployment hungry and execution starved. Any government anywhere in the world in the name of superior efficiencies can easily adopt digitization policy as a survival strategy and make all the processes highly affordable by bringing them on digital formats. The rain of free technologies is flooding the global markets. It is more about upskilling departmental leaderships to adapt to such opportunities, without fear.

Nations without infrastructure: Small percentages of nations have the infrastructure, rest assembling like Lego as they go. The internet connectivity or knowledge plug is almost everywhere. The lack of imagination and upskilling of the gatekeepers is a critical issue.

Nations without digitization: there are a majority of nations where mental attitudes are significant problems, fear of being replaced as redundant or fear of exposing lack of competence preclude any adventure on digitization. No nation will survive on economic progress without national digitization mandates.

Three types of new models: Start with the Marshall Plan thinking, the revolutionary models and national mobilization to catch up the last decade. Start with open debates and honestly frank analysis, no finger pointing. Start with a plastic award night, congratulate failures, and carry on as usual until the next pandemic.

When history becomes nothing, but agreed upon lies, culture as agreed upon fables, truth becomes taboo, dumb down narrative dominates, restless citizenry emerges.

Summary: Within next 50 days, the US Election will make global shock waves, no matter who wins…it will be the battles on acceptance and concession speech, the mail-order selection criteria my linger weeks or months in chaos… the Vaccines races may collide with bad results and delay the process to 2022. The economic recovery shaped W may bring reopening normalcy possibly in 2022. Tough and difficult times demanding critical thinking and mental endurance on all fronts. Study how national mobilization of mid size economy works in digital age.

Plan wisely and select right paths; but open bold and honest discussions, as masked and sealed lips are where most of the problems originally germinated. Move or get moved. 

Continue Reading

Economy

How India can get its growth back on track after the coronavirus pandemic

Published

on

The Covid-19 pandemic has led to exceptionally challenging times. World Bank projections suggest that the global economy will contract by 5.2% in the current year. India, too, is likely to be significantly impacted.

Covid-19 afflicted India when the economy was already decelerating. After growing at an average of 7% a year in the previous decade, growth decelerated to 6% in 2018-19, and fell further to 4.2% in 2019-20. Pre-Covid-19 slowdown was due to a number of factors: longstanding structural rigidities in key input markets, stressed balance sheets compounded by greater risk aversion among banks and corporates, and, more recently, growing vulnerabilities in thThe pandemic has rendered the outlook even more sombre. So is India’s growth story over?The pandemic has rendered the outlook even more sombre. So is India’s growth story over?

Two years ago, we analysed the long-term trends in India’s growth rates. Studying 50 years of data, we found that despite variations in the trend rate, growth accelerated steadily, with no prolonged reversals. Economic growth also became stable — both due to growth rates stabilising within each sector, and due to the economy’s transition toward the steadier services sector. Importantly, faster and more stable growth was evident across states without being concentrated, for the most part, in a few sectors or activities. Furthermore, periods of faster growth saw productivity gains and not just an increase in factor inputs. All these point to the long term resilience of India’s economy.

Several factors were instrumental in India’s growth story. First, India benefited from a growing working-age population. Second, its savings and investment rates continued to increase until the late 2000s. Third, the financial sector grew significantly, with a rising ratio of bank credit to GDP. Fourth, India was likely aided by its strong institutional base. Fifth, India’s trade-to-GDP ratio grew rapidly from the early 1990s, until world trade stalled due to the global financial crisis.

Finally, the macroeconomic policies, notably monetary and fiscal, were formulated under credible frameworks in the last decades, yielding impressive macroeconomic stability.

General State of Weakness

However, some of these factors have weakened in recent years. After the 2008-09 global financial crisis, specific weaknesses emerged in private investment, export performance and the banking sector. These have persisted for nearly a decade since. Investment rates and exports declined as a percentage of GDP. Worryingly, the vulnerability of the financial sector increased, resulting in anaemic credit growth.

Covid-19 has magnified these weaknesses. Disruption in economic activity has dented consumption, investment and exports. RBI’s financial stability report has cautioned that the financial sector is likely to bear a significant burden from the slowdown. What, then, is the short- and medium-term prognosis for India’s economy? How may the policy response be tailored?

As a response to Covid-19, extensive measures have been taken in the regulatory, fiscal and monetary policy areas. But there are limits to these relief and support measures, both in terms of their effectiveness and affordability. Recovery now will depend in equal measure upon unlocking the supply side, and on the containment of the virus itself.

Private investment in India is likely constrained by several factors, including financial sector inefficiencies, deleveraging, crowding out and regulatory policy framework. Removing these, and sector-specific constraints, and ensuring policy certainty will be important. While India has received healthy volumes of FDI, encouraging these further can spur both domestic investment and greater integration in global value chains (GVCs).

Exports were an important driver of growth prior to the global financial crisis. But its contribution has diminished since. The ratio of exports to GDP has been declining, with India’s share in global exports remaining stagnant, or even decreasing. India can improve its competitiveness in the world economy by boosting investment in infrastructure and bringing it at par with other global manufacturing hubs; further reforming land, labour and financial markets; upgrading the education system to equip its workforce with skills. Besides, a competitive exchange rate, deeper trade integration, and greater embedding into GVCs will assume significance.

In the financial sphere, Indian banks have seen subdued credit growth, and asset quality remains stressed. In the past few years, a number of measures have been announced — including the consolidation of banks, an asset quality review, timely resolution for specific institutions, strengthened oversight or forbearance (post-Covid-19) and equity infusions. These measures have improved the oversight of India’s financial sector and boosted financial inclusion. However, more needs to be done to improve the safety, depth and efficiency of financial intermediation.

Additional priorities include maintaining financial sector stability, undertaking specific reforms in the non-banking financial sector, deepening capital markets, enhancing the role of fintech and ensuring a more selective and strategic footprint for the public sector in the financial sphere.

Growth Rides on Reforms

There is nothing, however, that seems permanently broken in India’s growth model to warrant pessimism. Many of the deep-rooted structural factors that helped fuel the economy’s sustained growth during the past decades seem intact: demography, a large and diversified economy, still low-income levels that signify the potential to grow, a dynamic entrepreneurial class, political and geopolitical stability, a strong institutional base and credible policy frameworks.

With continued policy attention on reforms — which spur private investment, increase the economy’s competitiveness, promote greater integration into the global economy, and ensure an efficient financial sector — India can revert to the growth path of the past.

 Source: World Bank, The Economic Times

Continue Reading

Economy

COVID-19, major shifts and the relevance of Kondratief 6th Wave

Published

on

Covid-19 has changed the global strategic equations, it has impacted each part of human life so has it let us to ponder upon the Kondratieff cycles, as with Covid-19 there has started a new debate about sixth wave, which is about the importance of health sector, especially the biotechnology which is crucial for progress of society in future.

Henceforth, the countries that are working on these sectors know that the most important engine for our economic and social development will be health in the 21st century. For example we have USA that focused on these and now has created around 2/3rd of its jobs in health sectors along with that has invested about $3,500 billion on health sector back in 2017. Also a 2008 report said about 4,700 companies all across worked in  field of biotechnology whereby 42% were in North America, and 35% in Europe, which depicts these states long-term understanding of the emerging scenario as seen from the emergence of Coronavirus. But then the on the other side if we look into the health structure of underdeveloped states, we can easily conclude that these states will suffer the most if a global health issue emerges, and in the contemporary world it has emerged in the form of COVID-19.

COVID-19 has brought changes in the political and economic arrangement. It has not limited itself to the China from where it has been started but has impacted the whole world. The virus that is itself unseen has shaken the structure, with severe consequences for all states. No matter if it’s the USA that is the super power or any small states, the pandemic has divulged the capability and integrity of all in their response to the Covid-19. With some having the capabilities to deal with it, but most lacking in these sectors which resulted in huge loss not only of human life but also of resources. Time has come when the world is criticizing globalization at one hand because globalization is the reason for the spread of COVID-19. This has marked the end of one era with the emergence of a new one.

Mention below are some of the major shifts which Covid-19 has resulted in economic sectors in both the developed and the underdeveloped states, along with the major political shift that has led many to debate about the new structure of world after the crisis would be over.

The Covid-19 that was first reported in China, in November has changed the world completely and resulted in a lot of economic and political changes all across. For example the global economy due to Covid-19 crisis have a setback of $590 trillion. Apart from this many people lost their jobs, the household incomes have reduce, moreover World Bank report say nearly 49 million people will move into extreme poverty because of pandemic. Then World largest real estates are having economic problems, the Tourism industry has declined. An estimate showed the loss of about $1.2 to $3.3 trillion in this area of tourism all over world. Also report of International Air Transport Association predicted a loss of $63-$113billion. Moreover the oil sector also faced problem as it was for the first time that its price has gone negative. Henceforth, it can be predicted that once the pandemic is over the world will have a lot to calculate.

The impact of this crisis is seen in both core and periphery states. In core states like the US and china COVID-19 has brought huge economic impact but along with this also a question of who will act as the world saviour. As Chinese economy is expected to decline by 13% in February also the Belt and toad initiative is at halt, but still apart from the economic problem this pandemic has helped a core state like china to use the situation and move towards the status of Global power. Thus this struggle of Global saviour resulted in US and China at odds with each other. Indeed, COVID-19 has brought political repercussions along with economic consequences. When it comes to Europe the industrial production decline by 17%. Likewise USA is also effected by COVID-19 as by this pandemic about 39 million American have lost their jobs, also US economy seen to decline by 20% so US health sector has been in the eye of analyst for its failure to curtail the coronavirus. Then covid-19 has more devastating impact on peripheral states as there health care facility is not well developed. For example the GDP of Bangladesh fell by 1.1%, then many African states that look for tourism as a source of economy faced a loss of about $50 billion. Also 29 million in Latin America fell into poverty. Though they have been exploited in past but the need of the hour is that the world must help them.

Global dynamics are showing transformation amid coronavirus. The pandemic has shown how China is using its trump cards to transform the contemporary situation in its favour while bolstering its image as the “global saviour”. China’s emergence from the sick man of Asian to the positing of global saviour has opened the prospect of a tilt in the global status of Hegemon from US towards China. The question is that will the Chinese strategy amid COVID-19 will hinder the prestige of US who instead of acting as the global leader has shown a deterioration in its role in global governance.

The future of China’s pre-eminence in the global spectrum has been widened by the pandemic. All of this has been further bolstered by the broad rejection of Trump to engage in Europe and elsewhere. COVID-19 not only emerged as an impetus to shift the global dynamic but has helped China to strengthen its position. In response to the confident play by China, US hasn’t come up with any convincing tactics to prevent the increasing role of China in achieving its interest. Recently, a move by Trump administration to withhold US funds of around $400million will surely leave a gap, moreover will be an opportunity for china to bolster its position in WHO. Taking backseat in its global role amid pandemic, then the withdrawal from global treaties, and withholding of funds from WHO shows a pattern which will further create a vacuum for China to take advantage of the prevailing situation. 

The current international order set by US will be subject to testation as the changing shifts in the geopolitics have to be catalyzed by the COVID-19. For it is now the right time for us all to ponder the relevance of Kondratieff 6th wave in current scenario of Covid-19. As now the focus has diverted towards the health care system and biotechnology since the world has in current situation saw a blame game between states with few called corona virus as naturally occurring but some regarded it as ‘Chinese virus’. This has led to the realization that that warfare scenario has entered into discussion over biotechnology. So after the Covid-19 pandemic, the policy makers of both periphery and core state will work on new technological area which has the Medical technologies, Nanotechnologies, Biotechnologies etc. for the improvement in health sector will be crucial for the progress in future.

Conclusively, the current COVID-19 as a bioweapon has resulted in a clear impetus and will definitely bring a shift in the states attitude towards medical research and the multiple fields of technology in future, this is so because COVID-19 has created a ground for relevance of Kondratieff 6th wave.

Continue Reading

Publications

Latest

Newsdesk1 hour ago

Violence leaves more than 300,000 ‘completely reliant’ on assistance in northern Mozambique

Worsening conflict, combined with a precarious humanitarian situation, has forced more than 300,000 people to flee their homes and villages in...

Newsdesk3 hours ago

Global solution to COVID-19 in sight, ‘we sink or we swim together’

COVID-19 is an “unprecedented global crisis that demands an unprecedented global response”, the chief of the UN health agency said...

Middle East6 hours ago

The Case For Israel- Book Review

The Case For Israel by Alan Dershowitz, John Wiley & Sons, Inc.2003 In his book, ‘The Case For Israel’, Professor...

Green Planet7 hours ago

Climatic refugees: Natural calamities and migration flows

The London-based Institute of Economics and Peace has presented a Report with a profound insight into environmental dangers that threaten...

New Social Compact9 hours ago

Will COVID 19 further exacerbate xenophobia and populism?

The onset of COVID 19 saw a significant rise in racism and xenophobia.  From racist incidents against Africans in Guangzhou...

Intelligence11 hours ago

Tackling the Illicit Drug Trade: Perspectives From Russia

The Afghan drug trade supplying the Russian market has fuelled conflict, corruption, and instability in the region, provided financial support...

International Law13 hours ago

Triangularity of Nuclear Arms Control

In December 2019, the United States officially invited China to enter intoa strategic security dialogue. The White House said it...

Trending