Understanding Neoliberalism: A Marxist Analysis May 13, 2017
Posted by OromianEconomist in Consumersim, Development & Change, Development Studies, Economics, Free development vs authoritarian model, Globalization, Growth and Inequqlity, Neoliberalism.Tags: economics, Economics of development, Free Market, Globalization, Individualisim, Methodological Individualism and Its Critiques, Neoliberalism, The Market Economy, The nature of state and development, Theorizing Development
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Neoliberalism, Harvey writes, is “a theory of political economic practices that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms…within an institutional framework [of] strong private property rights, free markets, and free trade” [8]. He goes on to write that neoliberalism “seeks to bring all human action into the domain of the market” [9]. In short, neoliberalism offers a set of market-based solutions to social ills. It supposes that problems experienced collectively can be conquered by individuals. An important aspect of this an antipathy to state intervention. The state, in the neoliberal understanding, only gets in the way of individual entrepreneurs who want to alleviate problems. Hence, deregulation is a prime aspect of neoliberal practice. To quote Steger and Roy in Neoliberalism: A Very Short Introduction, “the state is to refrain from interfering with the economic activities of self-interested citizens” [10]. Neoliberalism presents a profound hatred of collective action in favor of individual motivation. This does not mean, however, that the state under neoliberalism is impotent, ineffectual, or meaningless. On the contrary. Although the regulatory and public service components of the state will be stripped bare under neoliberalism (we will examine this in more detail later), the military and police-the repressive state apparatus-will be inflated to new heights. Harvey writes that the state must “secure private property rights and…guarantee, by force if need by, the proper functioning of markets. Furthermore, if markets do not exist [in water, healthcare, and education, for example] then they must be created, by state action if necessary” [11]. Neoliberalism, then, is not against the state. It is against the state when it interferes with market mechanisms, but is perfectly happy to lean on the state when the neoliberal order is resisted or challenged. Under neoliberalism, the state must protect the interests of the aforementioned entrepreneurial individuals (the capitalists). It will not hesitate to use violence to do this.
It should be noted that this process of violent state intervention has been common, literally, since the very beginning of capitalism. An important part of the development of capitalism in England, for instance, was the land enclosure. rich landowners used their control of state processes to appropriate public land for their private benefit. This created a landless working class that provided the labor required in the new industries developing in the north of England. EP Thompson writes, “in agriculture the years between 1760 and 1820 are the years of wholesale enclosure in which, in village after village, common rights are lost” [12]. He goes on to say, “Enclosure (when all the sophistications are allowed for) was a plain enough case of class robbery” [13].
Click here to read more at Write To Rebel: Understanding Neoliberalism: A Marxist Analysis
UNDP: Multidimensional Poverty Index: Ethiopia has the second highest percentage of people who are MPI poor in the world: of Ten Poorest Countries in The World (All in #Africa) – MPI 2015 Ranking April 10, 2016
Posted by OromianEconomist in Africa, Africa Rising, African Poor, Economics: Development Theory and Policy applications, Ethiopia the least competitive in the Global Competitiveness Index, Ethiopia's Colonizing Structure and the Development Problems of People of Oromia, Afar, Ogaden, Sidama, Southern Ethiopia and the Omo Valley, Free development vs authoritarian model, Growth and Inequqlity, Poverty, The extents and dimensions of poverty in Ethiopia, Uncategorized.Tags: Africa, Ethiopia, Ethiopia and poverty, Human Development Index for Oromia and Ethiopia, Multidimensional Poverty Index: Ethiopia has the second highest percentage of people who are MPI poor in the world: op Ten Poorest Countries in The World (All in #Africa) – MPI 2015 Ranking, poverty, Poverty and Famines: An Essay on Entitlement and Deprivation, UNDP
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Multidimensional Poverty Index: Ethiopia has the second highest percentage of people who are MPI poor in the world: of Ten Poorest Countries in The World (All in #Africa) – MPI 2015 Ranking
‘Human development is a process of enlarging people’s choices—as they acquire more capabilities and enjoy more opportunities to use those capabilities. But human development is also the objective, so it is both a process and an outcome. Human development implies that people must influence the process that shapes their lives. In all this, economic growth is an important means to human development, but not the goal. Human development is development of the people through building human capabilities, for the people by improving their lives and by the people through active participation in the processes that shape their lives. It is broader than other approaches, such as the human resource approach, the basic needs approach and the human welfare approach.’ -UNDP 2015 Report
Ethiopia’s HDI value for 2014 is 0.442— which put the country in the low human development category— positioning it at 174 out of 188 countries and territories.
In Ethiopia 88.2 percent of the population (78,887 thousand people) are multidimensionally poor while an additional 6.7 percent live near multidimensional poverty (6,016 thousand people). The breadth of deprivation (intensity) in Ethiopia, which is the average of deprivation scores experienced by people in multidimensional poverty, is 60.9 percent. The MPI, which is the share of the population that is multidimensionally poor, adjusted by the intensity of the deprivations, is 0.537. Rwanda and Uganda have MPIs of 0.352 and 0.359 respectively. Ethiopia, UNDP country notes
(Sunday Adelaja’s Blog) — When Poverty and non-existent double digit growth met face-to-Face at a dumpster site called KORA in Ethiopia. As we speak, thousands of people in Addis Ababa survive from the leftover “food” dumped in such dumpsters. People, in fact, used to call them “Dumpster Dieters”. They are either the byproducts or victims of the cooked economic figures. You be the judge!
Yet the new measurement known as the Multidimensional Poverty Index, or MPI, that will replace the Human Poverty index in the United Nations’ annual Human Development Report says that Ethiopia has the second highest percentage of people who are MPI poor in the world, with only the west African nation of Niger fairing worse. You probably heard that Ethiopia has been a fast growing economy in the content recording very high growth rate not just in Africa but the world as well.
This comes as more international analysts have also began to question the accuracy of the Meles government’s double digit economic growth claims and similar disputed government statistics referred by institutions like the IMF. The list starts with the poorest.
- Niger
- Ethiopia
- Mali
- Burkina Faso
- Burundi
- Somalia
- Central African Republic
- Liberia
- Guinea
- Sierra Leone
What is the MPI?
People living in poverty are affected by more than just income. The Multidimensional Poverty Index (MPI) complements a traditional focus on income to reflect the deprivations that a poor person faces all at once with respect to education, health and living standard. It assesses poverty at the individual level, with poor persons being those who are multiply deprived, and the extent of their poverty being measured by therange of their deprivations.
Why is the MPI useful?
According to the UNDP report, the MPI is a high resolution lens on poverty – it shows the nature of poverty better than income alone. Knowing not just who is poor but how they are poor is essential for effective humandevelopment programs and policies. This straightforward yet rigorous index allows governments and other policymakers to understand the various sources of poverty for a region, population group, or nation and target their humandevelopment plans accordingly. The index can also be used to show shifts in the composition of poverty over time so that progress, or the lack of it, can be monitored.
The MPI goes beyond previous international measures of poverty to:
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Show all the deprivations that impact someone’s life at the same time – so it can inform a holistic response.
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Identify the poorest people. Such information is vital to target people living in poverty so they benefit from key interventions.
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Show which deprivations are most common in different regions and among different groups, so that resources can be allocated and policies designed to address their particular needs.
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Reflect the results of effective policy interventions quickly. Because the MPI measures outcomes directly, it will immediately reflect changes such as school enrolment, whereas it can take time for this to affect income.
Reinventing the current growth model: The need to rework the current economic system to serve all of humanity rather than an elite few August 4, 2015
Posted by OromianEconomist in Economics, Economics: Development Theory and Policy applications, Growth and Inequqlity.Tags: Africa is not rising, Economic growth, economics, poverty, Poverty and Inequality
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Although the grievances voiced differed from country to country and from region to region, the belief that the incumbent economic and political system was characterised by inequity and injustice was common to all.
If we are to avoid large-scale societal upheavals in this ultra-connected world, government, business and civil society must come together to rework the current economic system to serve all of humanity rather than just an elite few.
– Fergus Simpson, The Guardian
Widening inequality gap proof of outdated growth model
We need to rework the current economic system to serve all of humanity rather than an elite few, writes Xyntéo’s Fergus Simpson
January saw leading figures from business, government and civil society gather at the World Economic Forum in Davos. A broad spectrum of subjects were debated, including the prospect of a legally binding climate change agreement in Paris this December, Ebola and the nefarious advance of the Islamic State in Mesopotamia. I was particularly encouraged to see one topic keep cropping up – the crisis of burgeoning disparities in wealth.
In a report released in the runup to Davos, Oxfam predicted that within two years the richest 1% of people will have accumulated more wealth than the remaining 99%. The same study found that the wealth of the richest 80 billionaires has continued to increase since 2010, while the wealth of the poorest half has decreased over the same time period. The gap between the haves and the have-nots is growing.
History has taught us that there are moments when people rise up to make a point and say that enough is enough and times must change.
On 25 January 2011, the world witnessed one such moment – pro-democracy protesters occupied Tahrir square in Egypt’s capital, Cairo, demanding self-determination, equality of opportunity and freedom from the shackles of tyranny and oppression. Some 17 long days of demonstrations and civil disobedience followed, bringing the moribund autocracy of longtime Egyptian president Hosni Mubarak to an end.
This event formed part of a much broader social movement that swept across North Africa and the Middle East, toppling sclerotic regimes and corrupt dictators. Before long people in Spain, Greece, the UK and US took to the streets as well. Although the grievances voiced differed from country to country and from region to region, the belief that the incumbent economic and political system was characterised by inequity and injustice was common to all.
And it isn’t just the poor who have been affected – the middle classes have also borne the burden of mushrooming inequalities. Companies have tended to become more productive since the 1970s, but the incomes of middle class workers have remained largely static. Returns from higher productivity have tended to go to owners and investors, not to the workers.
In many ways, inequality has become the defining issue of our time. The popular uprisings that shook the Arab world at the start of this decade were just symptoms of this most elemental of societal ills.
Fortunately, there is no reason to suppose this state of affairs is inevitable.
A promising step forward was announced at Davos, when Ajay Banga, CEO of GLTE partner MasterCard, and Donald Kaberuka, president of the African Development Bank, revealed that they intend to collaborate to foster inclusive growth in Africa.
The MasterCard Labs for Financial Inclusion, funded by an $11m (£7.24m) grant from the Bill and Melinda Gates Foundation, aims to enable more people to access banking services – generating greater equality of opportunity across the world, in developed and developing countries alike. The initiative will soon begin operations in Nairobi, Kenya, and aims to reach over 100 million people globally.
Technological advancements can support the implementation of projects designed to promote inclusive growth, such as the MasterCard Labs for Financial Inclusion. Digital innovations in payment systems and social media, for example, have enabled people to access markets, ideas and information to an extent that is unprecedented in human history.
Indeed, it has been said that the Egyptian revolution started when Whael Ghonim, a marketing executive at Google, saw the bloodied remains of Khaled Mohamed Said – a young man bludgeoned to death by the Egyptian police – pictured on Facebook. Incensed by the injustice that confronted him, Whael created the Facebook page “Kullena Khaled Said” – “We Are All Khaled Said”. Three months later 250,000 people had joined the page. Just one year later the Mubarak regime was no more.
If we are to avoid large-scale societal upheavals in this ultra-connected world, government, business and civil society must come together to rework the current economic system to serve all of humanity rather than just an elite few.
At Xyntéo, we are convinced that the current growth model has become out of date – incapable of meeting the demographic, climate and resource demands of today. Together with our partners, we believe that global business, with its clout, resources and energy, is uniquely placed to overcome this challenge. To us this means reinventing the current growth model so it brings prosperity to much larger numbers of people.
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