neoliberalism

By Dominic Brown - New Labor Forum, May 2021

Despite 2020’s record fall in carbon dioxide emissions—largely due to extensive and repeated “lockdowns” of cities, plus dramatic decreases in air travel and the use of motor vehicles[1]—the world is far from making the changes necessary to avert climate catastrophe. The fact that the shutdowns over periods of last year had a marginal effect in the fight against climate catastrophe at best illustrates the enormity of the task that lies ahead. According to a 2019 report from the World Meteorological Organization, “time is fast running out,”[2] while Fatih Birol, head of the International Energy Agency (IEA), observes “The pandemic and its aftermath can suppress emissions, but low economic growth is not a low emissions strategy. Only an acceleration in structural changes to the way the world produces and consumes energy can break the emissions trend for good.”[3]

In addition to ravaging health systems, the Covid-19 pandemic has exacerbated food and housing insecurity, deepened unemployment, and put a spotlight on existing inequalities. In South Africa, growing awareness of these problems has brought renewed hope in the possibility of a response to the pandemic crisis that could aim for a “just transition” to a low-carbon economy. Like other countries, South Africa is in desperate need of an energy transition. The South African economy remains disproportionately energy intensive[4] (although it is becoming less so), per capita emissions remain high,[5] and the country is the fourteenth largest contributor to global carbon emissions.[6] This energy and emissions profile reflects the historical and continuing dominance of the country’s “minerals-energy complex” (“MEC”)[7] which is supported by cheap electricity generated mostly from low-quality coal, while higher quality coal is exported.

Beyond its detrimental ecological impacts, South Africa’s MEC is deeply intertwined with the legacy of cheap Black labor in the mines and the formation of racialized capitalism. This structure of South Africa’s economy underpins the country’s massive inequality, serious health impacts for many thousands of people in mining affected communities, and the country’s disproportionate contribution to global emissions. This is why the shift to renewable energy (RE) in South Africa must include measures to ensure a just transition that leaves no worker or community behind while working to reverse the legacy of mass unemployment and deep socioeconomic inequalities.

The Political Economy of South Africa’s Energy Crisis

Since coming to power in 1994, South Africa’s government has promised “electricity for all” as a critical component in undoing the gross disparities of apartheid. This commitment has produced a dramatic rise in grid connections, such that more than 80 percent of households were connected to the grid by 2015, up from only 30 percent in 1994. Harder to shift have been the persistent levels of poverty and inequality. South Africa’s “Gini coefficient”— a global measure of inequality—today places the country as the world’s second most unequal, after neighboring Lesotho. With current unemployment at over 40 percent, many households cannot afford electricity, even when they are connected to the grid. The introduction of a provision for free basic electricity in 2004 was a step in the right direction, but at just 50 kWh per month for poor households that is insufficient to meet even basic requirements.

Since coming to power in 1994, South Africa’s government has promised “electricity for all” as a critical component in undoing the gross disparities of Apartheid.

Making matters worse, South Africa’s stateowned power utility, Eskom—which generates over 90 percent of energy consumed in the country—is in deep crisis. Eskom’s crisis has multiple dimensions and various causes, both internal and external, including (1) the 1980s era commercialization of Eskom; (2) postapartheid commitments to provide electricity to the majority of the country previously excluded, under the full cost recovery (FCR) model where the excluded majority are unable to afford rising electricity prices; (3) underinvestment in the utility’s infrastructure, particularly in building new capacity to meet increased demand; (4) conversion of the utility in 2002 to a public corporation, forcing it to pay taxes as well as dividends for the first time since its establishment almost a century earlier; (5) Eskom’s rising debt, dominated by foreign currency borrowed against the weak rand (R); (6) expensive coal contracts with windfall profits, signed in the name of promoting Black ownership in the coal industry; and (7) dramatic increases in the price of low-quality coal, upon which Eskom depends to generate electricity.[8]

By Sinéad Mercier - New Labor Forum, May 17, 2021

For thirty years, governments have been promising climate action. They seem incapable of undertaking the necessary major shifts in their energy systems required by the 2015 Paris Agreement. They also seem incapable of delivering on climate targets in a manner that both “leaves no one behind” and “reaches the furthest behind first,” as required by the 2030 Agenda for Sustainable Development, also agreed in 2015. In Ireland, we fall continually to the bottom of the rankings in climate action, with the current Fine Gael, Fianna Fáil, and Green Party coalition government failing to achieve a mere 16 percent target of renewable energy by 2020.[1]

There are lessons to be learned from the past. One hundred years ago, the two civil war parties—Fine Gael (then Cumann na nGaedheal) and Fianna Fáil—were united in their commitment to a state-owned energy system with an objective of universal access, public good, and public value. Irish state electricity generation started out in 1929 as being from almost 100 percent renewable sources.[2] The historical development of Ireland’s own energy system can be a model for a successful, fast paced national delivery program for a just transition and energy democracy. Ireland has previously made sweeping changes to the energy system, in a time of far greater difficulty, fewer resources, and almost intractable political fragility. The example is the establishment of the country’s—and the world’s—first state-owned national energy company, the Electricity Supply Board (ESB), and its roll-out of universal access to affordable electricity through the Rural Electrification Scheme (RES).

Administering Dreams

The Ireland of the 1920s presented unlikely circumstances for ambitious national projects of any kind. After three years of guerrilla warfare against the British Crown forces, a form of independence had been achieved by 1922. The young Irish Free State government of freedom fighters and idealists was to set out on its own with little source of economic development beyond the sale of cattle to Britain and with much of its populace in extreme poverty. In 1921, the Anglo-Irish Treaty was signed, giving independence to twenty six counties and leaving the six counties in the north east of Ireland under British rule. The signing of the Treaty caused a split in the founding Sinn Féin party between those opposing and supporting the Treaty. This sparked a bitter civil war from June 1922 to May 1923 that has marked Irish politics for a century. The pro-Treaty element formed Cumann na nGaedheal, today the centerright (Christian Democrat) party Fine Gael. A group of republicans led by Éamon de Valera broke away from Sinn Féin in 1926 and formed Fianna Fáil,[3] in protest at the Oath of Allegiance to the British Crown, which all members of Dáil Éireann (the Irish Parliament) were obliged to take. The Cumann na nGaedheal party was in office from 1922 to 1932. Laissez-faire economic and commercial orthodoxies of the 1920s, inherited from the British administration, and a reinstated civil service were largely the global order of the day.

One hundred years ago, the two civil war parties . . . were united in their commitment to a state-owned energy system with an objective of universal access, public good, and public value.

However, the young state took on a number of major interventions in the economy. Most notable were the Land Commission and the creation of Ireland’s state energy company, the ESB, and its primary power source, the Ardnacrusha Hydroelectric Power Station on the Shannon River—also known as the “Shannon Scheme.”[4] To deliver Ardnacrusha’s energy to the public, in 1927 the government established its first Irish state company, the ESB, through the Electricity (Supply) Act, 1927. This was to be the first national electricity service in the world, with full responsibility for the generation, transmission, distribution, and marketing o electricity.[5] From its beginnings, the aim of the ESB was not-for-profit, universal, and affordable access to electricity; “strong on technical expertise, with set targets and with the muscle, dynamism and freedom to achieve these targets.”[6] Attempts had been made to attract foreign investors, particularly from the United States, but “most of the big corporations objected to the government’s stipulation that unprofitable rural lines might have to be built without any guaranteed government subsidy.”[7] The Irish electricity industry had been in existence for forty years, yet the vast majority of the population had been left in darkness and drudgery. As a result of these failings, the fledgling Department of Industry and Commerce concluded that confining the ESB to mere distribution of the energy from the Shannon Scheme was likely to place the whole enterprise in “immediate jeopardy.”[8] The government therefore nationalized what was a piecemeal mess of three hundred expensive, “badly run,” inefficient private and local authority undertakings.[9]

By C.J. Polychroniou - Truthout, April 22, 2021

Earth Day has been celebrated since 1970, an era which marks the beginning of the modern environmental movement, with concerns built primarily around air and water pollution. Of course, the state of the environment has shifted dramatically since then, and while environmental policy has changed a lot in the United States over the past 50 years, biodiversity is in great danger and the climate crisis threatens to make the planet uninhabitable.

On the 51st anniversary of Earth Day, world-renowned scholar and public intellectual Noam Chomsky, institute professor emeritus at Massachusetts Institute of Technology, laureate professor of linguistics and also the Agnese Nelms Haury chair in the Agnese Nelms Haury Program in Environment and Social Justice at the University of Arizona; and leading progressive economist Robert Pollin, distinguished professor of economics and co-director of the Political Economy Research Institute at the University of Massachusetts at Amherst, share their thoughts on the state of planet Earth in this exclusive interview for Truthout.

C.J. Polychroniou: The theme of Earth Day 2021, which first took place in 1970 with the emergence of environmental consciousness in the U.S. during the late 1960s, is “Restore Our Earth.” Noam, how would you assess the rate of progress to save the environment since the first Earth Day?

Noam Chomsky: There is some progress, but by no means enough, almost anywhere. Evidence unfortunately abounds. The drift toward disaster proceeds on its inexorable course, more rapidly than rise in general awareness of the severity of the crisis.

To pick an example of the drift toward disaster almost at random from the scientific literature, a study that appeared a few days ago reports that, “Marine life is fleeing the equator to cooler waters — this could trigger a mass extinction event,” an eventuality with potentially horrendous consequences.

It’s all too easy to document the lack of awareness. One striking illustration, too little noticed, is the dog that didn’t bark. There is no end to the denunciations of Trump’s misdeeds, but virtual silence about the worst crime in human history: his dedicated race to the abyss of environmental catastrophe, with his party in tow.

They couldn’t refrain from administering a last blow just before being driven from office (barely, and perhaps not for long). The final act in August 2020 was to roll back the last of the far-too-limited Obama-era regulations to have escaped the wrecking ball, “effectively freeing oil and gas companies from the need to detect and repair methane leaks — even as new research shows that far more of the potent greenhouse gas is seeping into the atmosphere than previously known … a gift to many beleaguered oil and gas companies.” It is imperative to serve the prime constituency, great wealth and corporate power, damn the consequences.

Indications are that with the rise of oil prices, fracking is reviving, adhering to Trump’s deregulation so as to improve profit margins, while again placing a foot on the accelerator to drive humanity over the cliff. An instructive contribution to impending crisis, minor in context.

By Dries Goedertier - Trade Unions for Energy Democracy, April 19, 2021

The debacle with the reversing electricity meter [also called “net-metering” in many contexts — a billing mechanism that credits solar capacity owners for electricity they feed into the grid] shows the limits of Flemish energy policy, which places the responsibility for the much-needed energy transition in the hands of the individual as consumer, investor and entrepreneur. For a socially just and democratic energy transition, the necessary efforts of energy cooperatives will not be sufficient. Only the state can regain control of the energy sector on behalf of, and for the benefit of, society as a whole.

Flemish energy policy has recently suffered from a severe heat stroke. The Constitutional Court has put an end to the reversing electricity meter. The decision dealt a heavy blow to those families who, after the (apparently worthless) guarantees of a bunch of liberal energy ministers about the legality of this particular support scheme, decided to install solar panels on their roofs before the deadline of January 1, 2021. Many of them feel cheated and that is certainly understandable. However, a critical inquiry should not stop there. The whole debacle shows the limits of an energy policy that places the responsibility for the much-needed energy transition in the hands of the individual as a consumer, investor and entrepreneur. 

“The sun has become a neoliberal investment product,” stated Dirk Holemans (Oikos). Holemans, together with Dirk Vansintjan (Ecopower & REScoop.EU), is arguing for a shift to a collective model in which citizens pool their resources and capacities in energy cooperatives. There is indeed a lot to be said for that. After all, energy cooperatives have a lot to offer in terms of democratic, social and ecological benefits. 

If we really want to democratize the energy sector in function of social and environmental objectives, then public energy companies will have to play a major part

In my opinion, however, the admirable self-organization of thousands of citizens will not be enough to break the dominance of the current for-profit energy model. The market power of the established players is simply too great for that. Only the state has the capacities, resources and potentially democratic legitimacy to regain control of the energy sector on behalf of and for the benefit of society as a whole. 

If we really want to democratize the energy sector in the service of social and ecological objectives, then public energy companies will have to play a major part. This does not have to be at the expense of energy cooperatives, as is sometimes incorrectly claimed. I am convinced that energy cooperatives in a public-driven model of energy democracy will actually have more opportunities to unleash their potential. But in order for that to happen, we must dare to question the liberalization of the energy sector. 

By Jessie MacInnis - La Via Campesina, April 16, 2021

Every year on April 17, La Via Campesina (LVC) honours the work of peasants, small-scale farmers, rural workers, and Indigenous peoples around the globe by marking the International Day of Peasant Struggle. This year is especially notable, being the 25th anniversary of the term “food sovereignty”, coined by LVC members in 1996 while demonstrating against the capitalist industrial food systems’ model being proposed at the World Food Summit in Rome. As defined by LVC, food sovereignty is the right of peoples to healthy and culturally appropriate food produced through sustainable methods, and their right to define their own food and agriculture systems. It emphasizes democratically controlled food and agriculture systems, horizontal learning networks, and agroecology. The National Farmers Union, a founding member of LVC, quickly resonated with the concept, and it is now a deep-rooted principle and vision for an alternative food system that informs our policy, movement-building, and solidarity work. 

The NFU takes this occasion to reflect on the struggles of its farmer members, as well as those of First Nations, Inuit, and Metis communities across Turtle Island, migrant farmworkers, the food insecure, and all food producers and rural workers whose right to food sovereignty is challenged. We stand in solidarity with you.

Who represents the peasantry in Canada? 

La Via Campesina is attempting to reclaim the word ‘peasant’ from its derogatory, pejorative connotations to represent a distinct political social group with specific human rights demands. According to the recently adopted United Nations Declaration on the Rights of Peasants and Other People Working in Rural Areas (UNDROP) – a landmark achievement for LVC, who developed and pushed the UNDROP from local peasant organizations to the UN – peasants are those who engage in small-scale or family-based agriculture, pastoralism, fishing, forestry, hunting or gathering, migrant and hired farmworkers. This wide-reaching definition acknowledges that despite differences, people in these categories often face similar oppressive forces when engaging in their livelihoods. Forces of neoliberalism, globalization, and corporate driven food systems leading to human rights violations. The undermining of dignity and justice of peasants brings together seemingly disparate farmer organizations around the globe into LVC. In Canada, though many do not relate to the word ‘peasant’ in a literal sense, as farmers in the NFU we are part of this wider umbrella of the peasant movement that seeks food system transformation rooted in food sovereignty. 

By Claude Calame - Global Ecosocialist Network, April 13, 2021

The 149 proposals issued by the French Citizens’ Convention on Climate last June, with the goal of achieving at least a 40% reduction in greenhouse gases by 2030 compared to 1990, manifestly belong to a thoroughly reformist approach. Nevertheless, Emmanuel Macron, only days after environmentalist candidates made gains in municipal elections, rejected three of those proposals:

• the reduction of the motorway speed limit to 110 km/h (what else could one expect from the Finance Minister under Hollande who wanted to create competition between buses and trains?);
• a 4% tax on dividends (the rejection of this proposal is consistent with the President’s abolition of the wealth tax among his first acts after being elected, in line with the demands of Medef);
• the inclusion of ecology in the preamble to the Constitution (this proposal is clearly contrary to the principles of the President’s neoliberal worldview, which sees ‘nature’ itself only as something to be turned into a commodity to be submitted to the market and exploited for profit).

By Olaf Bruns - Green European Journal, April 13, 2021

For 30 years, environmental economist Tim Jackson has been at the fore of international debates on sustainability. Over a decade since his hugely influential Prosperity Without Growth, the world is both much changed – reeling from a pandemic and with unprecedented prominence for environmental issues – and maddeningly the same, still locked in a growth-driven destructive spiral. What does Jackson’s latest contribution, Post Growth, have to say about the way out of the dilemma?

Tim Jackson’s new book, Post Growth: Life after Capitalism (Polity Press, 2021), follows his ground-breaking Prosperity without Growth (2009, updated in 2017). Whilst the previous work reflected, partly, the austerity-driven answers to the Great Recession, Post Growth falls into a different world. It is a world where the recognition of climate change as the greatest challenge facing humankind is moving towards consensus. In the United States, even the Republican Party’s younger members are looking for ways out of the corner into which the party has manoeuvred itself.

It is also a world where the Covid-19 pandemic has not only taken many lives and destroyed many livelihoods, but – via the need for state intervention – has also dealt a blow to the gung-ho neoliberalism that is one of the main culprits of financial chaos and the looming breakdown of planetary life-support systems.

US President Joe Biden’s rescue plan as well as the EU’s Next Generation pandemic recovery fund are questioning the free-market paradigm that has held sway the since the Reagan-Thatcher area, and that had trickled down into centre-left politics as well. In parallel, from the Paris Agreement to the European Commission’s European Green Deal, environmental concerns that were condescendingly smiled upon until recently have now moved centre stage. The newly discovered role for the state and the emerging environmental consciousness might not be discussed at length in Jackson’s new book, but they are the backdrop against which it is to be read.

By Justin Hirsch - Labor Notes, April 7, 2021

A lot of ink has been spilled to explain exactly what happened in the Suez Canal, where a massive container ship got wedged across the narrow channel, idling ships or forcing lengthy detours around South Africa’s Cape of Good Hope.

Early speculation on social media laid blame on the captain and crew, mechanical failures, or mysterious forces of nature. Was it the fault of a drunken navigator, as was claimed in the 1989 grounding of the Exxon Valdez, which spilled oil across Prince William Sound? Was there a failure of the steering gear that controls the ship’s rudder, or a did a loss of propulsion make it impossible to control the steel behemoth?

High winds were present on the day the bulbous bow of the Ever Given, bound for Rotterdam, made landfall just a few miles into the canal. Was the crew, as one Financial Times article suggested, perhaps overcorrecting for this crosswind while a hydrological phenomenon called the “bank effect” built up water pressure on one side of the vessel, shoving it sideways without warning?

Accident investigators will access the vessel’s voyage data recorder, listen to audio recordings of every command, and consider every choice made by the officers and crew. They will undoubtedly write a report that will disappoint conspiracy theorists and allay the fears of ocean carriers and beneficial cargo owners (BCO’s), or the entities that own the cargo inside the container.

Their final report will make for interesting reading, partially for what it will say and largely for what it will not. It’s unlikely to lay any blame on the material factors in a changing global container shipping industry that set the table for this public spectacle.

By Dr Sibo Chen - LSE Review of Books, March 31, 2021

In recent years, there has been a steady growth of studies on the ‘Pink Tide’ experience in Latin America — the notable turn towards left-wing governments in Latin America around the start of the twenty-first century — and its implications for regional political economy and social-environmental conflicts. Following this trend, author Thea Riofrancos examines how conflicting visions of resource extraction have divided the Ecuadorian Left in Resource Radicals: From Petro-Nationalism to Post-Extractivism in Ecuador. Drawing upon a wide range of sources gained from fifteen months of fieldwork, the book presents an in-depth analysis of internecine struggles between the Ecuadorian government, which focuses on economic development via resource nationalism, and grassroots anti-extractivism activists, who strongly oppose the government’s lean toward extractive industries due to social and environmental concerns.

The book’s narrative begins in 2007, when Rafael Correa was elected as the 45th President of Ecuador with support from a disparate group of leftist organisations. Correa’s victory marked a fundamental break from Ecuador’s past economic policies. During his tenure (2007–17), Ecuador rejected neoliberalism and attempted to replace it with a series of progressive reforms that sought to improve the country’s economic equality and living standards. Resource extraction still served as the primary funding source for these reforms. Through strong state presence and information campaigns promoting the public benefits of resource development, the Correa government sought to de-politicise resource extraction and frame it as a technical affair, which offers a viable path toward a redistributive post-neoliberal state.

Unsurprisingly, Correa’s reforms were opposed by foreign corporations and domestic elites. What complicated the political struggle, however, was fierce resistance to these reforms among many social activists who had resisted neoliberalism for decades and supported Correa’s leftist election platform. Accordingly, the central question that Resource Radicals seeks to address is how the radical politicisation of resource extraction led to the Ecuadorian dispute between a self-described socialist government and many grassroots activists who helped bring it to power.

By staff - Trade Unions For Energy Democracy, March 25, 2021

Speakers:

• Heberto Barrios Castillo, Undersecretary, Mexican Energy Ministry- SENER
• Martín Esparza, General Secretary, Sindicato Mexicano de Electricistas- SME
• Silvia Ramos Luna, Secretary General, Unión Nacional de Técnicos y Profesionistas Petroleros - UNTyPP
• Fernando Lopes, trade union consultant in Brazil and former Assistant Secretary General of IndustriALL
• Ozzi Warwick, Chief Education and Research Officer, Oilfields Workers' Trade Union (OWTU), Trinidad and Tobago