Yearly Archives: 2019

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Jason Hickel — A Letter To Steven Pinker (And Bill Gates For That Matter) About Global Poverty

Jason Hickel writes:

Dear Steven,

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Your argument is that neoliberal capitalism is responsible for driving the most substantial gains against poverty.  This claim is intellectually dishonest, and unsupported by facts.  Here’s why:

The vast majority of gains against poverty have happened in one region: East Asia.  As it happens, the economic success of China and the East Asian tigers – as scholars like Ha-Joon Chang and Robert Wade have long pointed out – is due not to the neoliberal markets that you espouse but rather state-led industrial policy, protectionism and regulation (the same measures that Western nations used to such great effect during their own period of industrial consolidation).  They liberalized, to be sure – but they did so gradually and on their own terms.

Not so for the rest of the global South.  Indeed, these policy options were systematically denied to them, and destroyed where they already existed.  From 1980 to 2000, the IMF and World Bank imposed brutal structural adjustment programs that did exactly the opposite: slashing tariffs, subsidies, social spending and capital controls while reversing land reforms and privatizing public assets – all in the face of massive public resistance.  During this period, the number of people in poverty outside China increased by 1.3 billion.  In fact, even the proportion of people living in poverty (to use your preferred method) increased, from 62% to 68%.  (For detailed economic data and references to the relevant literature, see Chapter 5 of The Divide).

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In other words, the imposition of neoliberal capitalism from 1980 to 2000 made the poverty rate worse, not better.

Since 2000, the most impressive gains against poverty (outside of East Asia) have come from Latin America, according to the World Bank, coinciding with a series of left-wing or social democratic governments that came to power across the continent.  Whatever one might say about these governments (I have my own critiques), this doesn’t sit very well with your neoliberal narrative.

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Trinity Colleagues Pay Tribute To Robert Neild, 1924-2018

Hashem Pesaran, Partha Dasgupta and Gregory Winter remember Robert Neild.

Dasgupta:

Robert Neild was the last surviving member of a triumvirate that shaped the intellectual climate of economics at Cambridge in the 1970s. That influence lasted for over two decades. Together with Brian Reddaway (Professor of Political Economy) and Wynne Godley (Director of the Department of Applied Economics), Robert encouraged an approach to economics that was in sharp contrast to the then growing attention given in the leading university departments of economics in the UK and USA to economic theory and econometrics. The latter approach drew on mathematical techniques not only because they enabled one to reach conclusions with clarity, but also because they allowed one to trace those conclusions to the underlying hypotheses and data on which the studies were based. In modern economics policy is often kept at a distance. In contrast, the approach that Robert favoured insisted on a tight and constant link between analysis and policy; so much so that the separation between analysis and policy was wafer-thin.

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Ashoka Mody: Kaldor’s Ghost Is Stalking The Eurozone

Ashoka Mody has done excellent historical work in his book Eurotragedy — A Drama in Nine Acts. Excerpt from his interview with Spiked, reminding us of the wonderful prediction of Nicky Kaldor from 1971:

spiked: When I’ve been to Italy recently I’m struck by the instances of anti-German grafitti. Do you think that one of the greatest ironies of this project of supposed economic and political integration is that it has actually fostered enmity among European nations, rather than unity?

Mody: As I said, Nicholas Kaldor predicted exactly that in 1971. He said that a single currency will amplify existing economic divergences, and, if it does that, it will deepen political divisions. He even quoted Abraham Lincoln: ‘A house divided against itself cannot stand.’ Kaldor’s ghost is stalking the Eurozone.