austerity

By Maristella Svampa, Trusha Reddy, Ashish Kothari, and Liliana Buitrago - Alan Fisher, February 14, 2023

By staff - People and Nature, February 13, 2023

“Clean energy transitions” by rich countries of the global north are producing “a new phase of environmental despoliation of the Global South”, states a manifesto published last week by an alliance of social and environmental organisations.

“This decarbonisation of the rich, which is market-based and export-oriented, depends on a new phase of environmental despoliation of the Global South, which affects the lives of millions of women, men and children, not to mention non-human life”, the Manifesto for an Ecosocial Energy Transition says.

Women, especially from agrarian societies, are among the most impacted. In this way, “the Global South has once again become a zone of sacrifice, a basket of purportedly inexhaustible resources for the countries of the North.”

As the rich countries secure supply chains for these “clean” transitions, the web of debt and trade agreements in which countries outside the rich world are caught is tightened.

I hope that social movements and the labour movement in the rich countries will not only sign the manifesto (which you can do here), but also – probably more to the point – think about and discuss what it means for us.

By Peoples of the Global South - Foreign Policy in Practice, February 9, 2023

An appeal to leaders, institutions, and our brothers and sisters

More than two years after the outbreak of the COVID-19 pandemic—and now alongside the catastrophic consequences of Russia’s invasion of Ukraine—a “new normal” has emerged. This new global status quo reflects a worsening of various crises: social, economic, political, ecological, bio-medical, and geopolitical.

Environmental collapse approaches. Everyday life has become ever more militarized. Access to good food, clean water, and affordable health care has become even more restricted. More governments have turned autocratic. The wealthy have become wealthier, the powerful more powerful, and unregulated technology has only accelerated these trends.

The engines of this unjust status quo—capitalism, patriarchy, colonialism, and various fundamentalisms—are making a bad situation worse. Therefore, we must urgently debate and implement new visions of ecosocial transition and transformation that are gender-just, regenerative, and popular, that are at once local and international.

In this Manifesto for an Ecosocial Energy Transition from the Peoples of the South, we hold that the problems of the Global – geopolitical – South are different from those of the Global North and rising powers such as China. An imbalance of power between these two realms not only persists because of a colonial legacy but has deepened because of a neocolonial energy model. In the context of climate change, ever rising energy needs, and biodiversity loss, the capitalist centers have stepped up the pressure to extract natural wealth and rely on cheap labor from the countries on the periphery. Not only is the well-known extractive paradigm still in place but the North’s ecological debt to the South is rising.

What’s new about this current moment are the “clean energy transitions” of the North that have put even more pressure on the Global South to yield up cobalt and lithium for the production of high-tech batteries, balsa wood for wind turbines, land for large solar arrays, and new infrastructure for hydrogen megaprojects. This decarbonization of the rich, which is market-based and export-oriented, depends on a new phase of environmental despoliation of the Global South, which affects the lives of millions of women, men, and children, not to mention non-human life. Women, especially from agrarian societies, are amongst the most impacted. In this way, the Global South has once again become a zone of sacrifice, a basket of purportedly inexhaustible resources for the countries of the North.

By Chris Saltmarsh - The Ecologist, February 6, 2023

A review of Derailed: How to Fix Britain’s Railways, by Tom Haines-Doran, published by Manchester University Press.

As climate change intensifies, the imperative to shift our transport system away from polluting private cars to public transport – rail in particular – becomes increasingly urgent.

At the same time, amid an inflationary crisis, rail workers are at the forefront of a nationwide wave of strike action defending pay and conditions.

In Derailed: How to Fix Britain’s Broken Railways, Tom Haines-Doran puts the UK’s rail system in these political-economic contexts with a compelling account of its history, present conditions and future possibilities.

By Suzanne Jeffery, Shouvik Chakrabort, Benjamin Alvero, and Dr. Patricia De Marco - Global Climate Jobs, September 19, 2022

By R.C. Smith - PhD Dissertation, September 1, 2022

Oil and finance have long played central roles in defining how the global economy has developed and this is especially true of the modern neoliberal economic system. One factor of their relationship that is often unexamined is how oil industry profits and liquid capital influence the developments of finance. Understanding their relationship during the modern period first requires understanding this petrocapital cycle, how it influences economic development, and the ways that its rise to prominence in the 1970s transformed the global capitalist financial system.

We are living in a world that has been shaped by the demands of oil and finance. Under the neoliberal capitalist order these two sectors enjoyed central roles in setting the pace of the global economy. Shocks in the price of oil, as recent events like the record-high oil prices experienced following Russia’s 2022 invasion of Ukraine have reminded us, tend not to stay confined to the fuel pump and radiate throughout our economic system. One particular avenue of influence that is often not seen but is widely felt is the reinvestment of oil profits in global financial markets. This question was first thoroughly examined in Mahmoud el-Gamal and Amy Myers Jaffe’s Oil, Dollars, Debt, and Crises: The Global Curse of Black Gold which traced the relationships that formed the endogenous petrocapital cycle, which is the reinvestment of the profits reaped by oil exporters in financial markets and how this changed global credit and financial markets. The Real Oil Shock builds on their earlier work by digging deeper into the birth of this process in the Oil Shocks of the 1970s. It will do this by examining how OPEC’s windfall capital fundamentally changed financial markets, practices, and the creation of money.

What The Real Oil Shock is examining is not a new phenomenon in economic history. The human experience abounds with instances where dramatic redistributions of wealth and resources created significant changes in the existing social and economic order. An excellent example comes from the Spanish colonization of the Americas. Exploitation of gold, silver, and other precious metals in the Americas provided the Spanish monarchy with an enormous windfall of liquid capital. This was spent by the Spanish monarchy on projects of the state, fighting wars, and expanding their influence in Europe. This put increasing quantities of Spanish doubloons in circulation outside of domestic markets. Spanish gold had become the capital for Dutch, English, and French merchants for financing their own commercial, industrial, and colonial enterprises whose activities were the foundation of early modern capitalism in Europe.

Download this document (link).

By Olivia Weeks and Marc Edelman - The Daily Yonder, August 26, 2022

Marc Edelman is a writer and Professor of Anthropology at Hunter College. In his work, academic and otherwise, Edelman investigates what he terms the underdevelopment of rural America. In a 2021 paper entitled “Hollowed out Heartland, USA” he writes “Rural decline is not simply the result of deindustrialization spurred by free trade, the farm crisis, or automation and robotization. Since the 1980s, financial capital has developed imaginative new ways to strip and seize the assets present in rural zones, whether these be mutually-owned banks, industries, cooperatively-owned grain elevators, local newspapers, hospitals, people’s homes, or stores located in towns and malls.” In the wake of the fiscal austerity agenda enacted by financial and political elites in the late 20th century, the vast majority of the wealth created in America’s countryside “has accrued to shareholders in corporations and financial institutions headquartered in a handful of distant, economically dynamic urban centers.” The financialization of the American economy, especially in those places furthest from economic hubs, can be extremely opaque. But its repercussions – many of which are often seen as causes and effects of backwardness and small-town decline – are all around us.

We discuss the destabilizing effects of such uneven development, the parallels between rural and urban landscapes of decline, and the political choices that sacrificed rural prosperity to urban agglomeration, below.

By Irene HongPing Shen, Sean Sweeney, Dominic Brown, Makgabo William Mabapa, Mbulaheni Enos Mbodi, and Brian Kamanzi - Trade Unions for Energy Democracy, February 25, 2022

By Sean Sweeney, Richard Kozul-Wright, Rosa Pavanelli, Josua Mata, and David Gobé - Socialist Project, January 16, 2022

By Sean Sweeney - New Labor Forum, January 2022

Covid-19 has provided a stark reminder that today’s world is both scarred by grotesque levels of inequality and populated by billions of vulnerable people. However, it has also stimulated renewed interest in “global public goods” (GPGs) and how this foundational idea might be utilized to address a range of social crises, including climate change.

Global public goods is a nice phrase, but what does it mean? The basic idea is simple: no person can be excluded from using the “good” in question. At the mundane or everyday level, streets and parks fall into the public goods category. At the global level, a stable climate would qualify, as would the means to achieve and sustain it.

A guiding principle for a GPG approach to climate protection can perhaps be expressed in one sentence: increasing emissions anywhere endangers people everywhere; reducing emissions anywhere benefits people everywhere. If this principle holds true, then the means of implementation will also either be themselves public goods or they will, almost by definition, be designed to serve the public good.