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ROPE: Development Economics: Aptly Or Wrongly Named?

Underdevelopment is rooted in a specific connexion, created in a particular historical setting, between an internal process of exploitation and an external process of dependence.

– Celso Furtado, 1973, republished in ROPE, Volume 33, 2021, Issue 1.

The latest issue of Review Of Political Economy is about how the idea of development economics to emulate the west has failed.

How can it work, as the liberal international order works for the “north” at the expense of the “south”.

The issue includes two articles by Celso Furtado from the 70s but unpublished before.

[The title is the link]

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Joan Robinson In NYT From 1976

This is an unbelievably good profile (thanks to Carolina Alves on Twitter) of Joan Robinson in The New York Times from 1976.

One of the best things in the article is about bastardisation of Keynes/Keynesian economics. Bastardisation is the process of intentionally misinterpreting a theory or an ideology to suit one’s political purposes. The economics profession largely bastardised Keynes to dilute his message. But the best thing is that Keynes himself allowed this bastardisation. He had it right but then said a lot of wrong things which allowed economists to do that. Like by doing: “what do you mean, Keynes himself said that”.

According to the article:

In essence, she concedes, “this was Keynes himself enunciating the Bastard Keynesian doctrine.” Clearly this side of Keynes frustrates her. “We, the younger chaps working with him, were to his left,” she remarked.

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Sergio Cesaratto’s New Book

Sergio Cesaratto has a new book which:

  • Introduces readers to the basics of heterodox and orthodox approaches in economics
  • Explains the problematic aspects of the European Monetary Union (EMU) from the standpoint of alternative economic theories
  • Highlights the conservative nature of the EMU and the economic and political difficulties of reforming it

with the further description:

This book discloses the economic foundations of European fiscal and monetary policies by introducing readers to an array of alternative approaches in economics. It presents various heterodox theories put forward by classical economists, Marx, Sraffa and Keynes, as a coherent challenge to neo-classical theory. The book underscores and critically assesses the analytical inconsistencies of European economic policy and the conservative nature of the current European governance. In this light, it examines the political obstacles to proposals to reform the European monetary union, as well as those originating in the neo-mercantilist German model. Given its scope and format, the book offers a valuable asset for researchers and members of the general public alike.

[the title is the book site at Springer]

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Glenn Greenwald On The American Press: My Resignation From The Intercept

… The Intercept’s editors, in violation of my contractual right of editorial freedom, censored an article I wrote this week, refusing to publish it unless I remove all sections critical of Democratic presidential candidate Joe Biden …

American media is gripped in a polarized culture war that is forcing journalism to conform to tribal, groupthink narratives that are often divorced from the truth and cater to perspectives that are not reflective of the broader public but instead a minority of hyper-partisan elites. The need to conform to highly restrictive, artificial cultural narratives and partisan identities has created a repressive and illiberal environment in which vast swaths of news and reporting either do not happen or are presented through the most skewed and reality-detached lens.

With nearly all major media institutions captured to some degree by this dynamic, a deep need exists for media that is untethered and free to transgress the boundaries of this polarized culture war and address a demand from a public that is starved for media that doesn’t play for a side but instead pursues lines of reporting, thought, and inquiry wherever they lead, without fear of violating cultural pieties or elite orthodoxies.

 

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Perry Anderson On Brexit

The new issue of New Left Review is out and Perry Anderson has a 73-page essay on British state and society.

Some good description of Brexit:

In 2015, Cameron was returned to office without need of the Liberal Democrats, who were decimated at the polls, and in the wake of Labour’s renewed defeat, Corbyn was elected its leader in the first one-person-one-vote election in the party’s history. Within a year came the referendum, called and lost by Cameron on Britain’s membership of the EU.32 His decision to call one, product of long-standing divisions among the Tories, was designed to silence the Eurosceptic wing of his party, in a careless display of class insouciance that with united establishment support—extending from the City to the TUC, not to speak of all-party backing—victory was assured. But as in France and the Netherlands, a popular rebellion against the whole governing class led to the opposite outcome. Two thirds of the working class voted for Leave, a higher proportion than any stratum—including even the best-off—voting for Remain, on a larger turn-out than seen in years. London, beneficiary of the financial bubble and closer to Paris than Manchester by rail, voted heavily for Remain; the abandoned industrial North, hardest-hit by austerity, heavily for Leave. On the left, opinions had divided. Those in favour of Remain argued that the xenophobia of Brexiteers of the right made the EU a lesser evil, those in favour of Leave that departure would be a blow to the neo-liberal oligarchies on both sides of the Channel: each voting negatively against, rather than for, anything. But what would Brexit actually mean for the European Union, or for Ukania in parting with it? So far, all that was clear was that ‘Blairized Britain has taken a hit, as has the Hayekianized EU’ and ‘critics of the neoliberal order have no reason to regret these knocks to it’, against which the entire global establishment had inveighed.

More fine-grained analysis made clear the extent to which the Brexit result, though certainly multi-stranded in motivation, was the expression of a regional and social revolt in the North of England: Leave majorities were concentrated in former strongholds of Labour, now reduced to a hinterland of decayed industries and discarded proletarian households.33 There was hostility to immigrants in this part of the country, as elsewhere in Britain. However, that it was not the primary driver of the outcome could be deduced from Labour’s unexpected recovery in the election of 2017, once Corbyn campaigned on a platform amounting to a rejection of the whole neo-liberal order in place since the 1980s. In the face of a high Tory vote, he not only held most of the North, but swept the youth of the country by margins never previously approached by Labour, in what was now a second popular uprising against the entire British establishment. Yet Corbyn’s position remained tenuous in his own party, whose permanent apparatus and parliamentary delegation remained ferociously opposed to him.34 The small team around him lacked any preparation for government in what would be the predictable conditions of an implacable siege by capital and the media. There were no grounds for euphoria.

Britain’s liberal market economy—read: secular eversion—generated the two-fold revolt that produced Brexit. The victory of Brexit led to Conservative capture of a majority of the working class. Working-class expectations require concessions from a suddenly altered Conservative regime that Brexit impedes. The desertion of its proletarian base leaves Labour sociologically adrift in the eddies of a protean middle class. Its share of the middle class is attached to Europe, no part of it more passionately than the liberal intelligentsia. Attracted towards Labour by its stance in the cultural war over Europe, the English intelligentsia is alienated from it by what became of its own principal habitat under it. In Scotland, alienation of all classes of society from Labour has given power to a nationalism looking to Europe. Departure from Europe has both inflamed Scottish nationalism and entrapped it. The price of departure, indexed by the EU to political not economic considerations, has left Britain’s rulers answerless politically and, in all probability, the wells of Brexit further poisoned economically. No part of the current configuration is independent of the others. Their nexus is bound to dissolve, in one way or another. When or how is anyone’s guess.

32 Susan Watkins, ‘Casting Off?’, NLR 100, July–August 2016.

33 Tom Hazeldine, ‘Revolt of the Rustbelt’, NLR 105, May–June 2017.

34 Daniel Finn, ‘Crosscurrents’, NLR 118, July–August 2019.

New Left Review, 125

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UNCTAD Trade And Development Report, 2020

UNCTAD has released its annual trade and development report.

It emphasises the importance of Keynesianism and cites Post-Keynesian authors such as Joan Robinosn, Nicholas Kaldor, Wynne Godley, Francis Cripps, Marc Lavoie, Anthony Thirlwall.

From the summary:

From crisis to prosperity for all

Much more ambitious multilateral measures will be required if a global crisis is to be transformed into a global recovery:

  • Expanding the use of Special Drawing Rights (SDRs) to support national development strategies in developing countries through a truly internationally governed reserve system. At the very least, developing countries’ fiscal spaces should be backed by the equivalent of $1 trillion of SDRs to meet current liquidity constraints.
  • Financial support for boosting the health emergency response to COVID-19 in developing countries through a Marshall Plan for Health Recovery funded through increased official development assistance (ODA) commitments, international tax reform and enhanced multilateral financing mechanisms, on a scale to build resilience and boost recovery.
  • An international Public Credit Rating Agency to provide objective expert-based ratings of the creditworthiness of sovereigns and companies, including developing countries, and to promote global public goods. This would, moreover, help to promote competition in a highly concentrated private market.
  • A Global Debt Authority to stop a repeat liquidity crises from turning into serial sovereign defaults. Such an authority would build a repository of institutional memory on sovereign debt restructurings. It would also oversee the establishment of a global publicly accessible registry of loan and debt data pertaining to sovereign debt restructurings. In addition, it would develop a blueprint for a comprehensive and transparent international legal and institutional framework to govern automatic temporary standstills on sovereign debt repayments in times of crises and to manage sovereign debt workouts in a fair, efficient and transparent manner.

The title is the link. You can download find the PDF file in that link.