Financialisation through Microfinance: Civil Society and Market-Building in India

Abstract

Microfinance does not reduce poverty, but it does successfully construct economic relations between owners of capital and borrowers of capital, allowing surpluses to accumulate through finance. It does so by drawing on the agency of financialised civil society actors who facilitate financialisation by working around the state to build new markets in finance and other goods. This article understands financialisation as the expansion of the frontier of financial accumulation. Microfinance is shown to achieve this expansion by establishing credit-based linkages between owners and borrowers of capital, allowing surplus accumulation to take place via the credit relation. Underlying this material relationship, there is also a level at which financialisation motivates and pressures civil society actors to bring microfinance to the poor. By becoming financialised agents themselves, civil society organisations act as conduits for an expansion of financial markets and the construction of new market relations for other goods. A case study of microfinance for water and sanitation in India shows in detail how this construction of markets via civil society works in practice, highlighting the pressures and opportunities presented by microfinance as a vehicle for building markets.     

Gender,Risk and Micro‐financial Subjectivities

Abstract: This article analyses the gendered contradictions of microfinance's celebrated “double bottom line” of social and financial impact. The example of microfinance is used to illustrate the gendered and colonial constructions of “risk” and “responsibility” that underpin neoliberalism and its gendered paradoxes. After revisiting the discursive critique of these terms, I draw on how indigenous women participating in a microfinance institution in Bolivia describe their experience to suggest how gendered ideas of risk and responsibility are framing their negotiation of and resistance to the market. While the gendered and colonial construction of risk creates dynamics that perpetuate indigenous women's exclusion from the market, the terms of the resistance and use of the intervention also challenge feminist critiques of neoliberal governmentality developed mostly with reference to advanced modernity and welfare regimes.     

The Underside of Microfinance: Performance Indicators and Informal Debt in Cambodia

Microfinance is a dominant strategy used to promote rural development around the world. Rather than directly track its impact on borrowers, however, microfinance institutions rely on indicators of financial performance adopted from commercial banking as proxies for positive social impact. Yet, as critical research has shown, the industry depends on coercive peer pressure, social shaming and various forms of gendered exploitation to achieve its high rates of loan repayment. This article maintains that there is a need to investigate how the microfinance industry's own indicators of impact contribute to the ways microfinance can harm borrowers. Based on qualitative research in Cambodia during 2021 and 2022, the article demonstrates how financial performance indicators, most notably portfolio quality, both hide and exacerbate the ways that borrowers juggle debt between formal and informal lenders. In making this argument, the article advances critical scholarship on microfinance by showing how microfinance repayment structures debt-juggling practices in ways that put borrowers at greater risk of over-indebtedness. As a result, the microfinance industry is able to claim that it successfully helps to alleviate poverty, even as it accumulates profits by appropriating wealth from poor and low-income households across the global South.     

Reconsidering global mobility – distancing from mass cruise tourism in the aftermath of COVID-19

Abstract

The mass cruise tourism industry (MCTI) is inscribed in a neoliberal production of tourism space that promotes the economic, sociocultural and environmental marginalization of cruise destinations. With cruise tourism halted as a result of the COVID-19, but likely to resume in 2021, I question the relevance of this form of tourism and propose future development alternatives aligned with deglobalisation and degrowth of the industry. Power relations with destinations communities can be critiqued using the concepts of global mobility and local mobility to show that the former, imperative for the deployment of mass cruise tourism, is a weakness for the industry in a post-pandemic perspective of reduced mobility. Destinations must use the industry’s dependence on global mobility as leverage to transform the balance of power in their favor and promote local mobility. They must embrace radical solutions to take control of their territory to favor a transition from “Growth for development” to “Degrowth for liveability”. Host territories, relying on national and regional governance, should gradually ban or restrict the arrival of mega-cruise ships, implement policies that promote the development of a niche cruise tourism industry (NCTI) with small ships and develop a fleet controlled by local actors.     

"Common–Sense" Neoliberalism: Progressive Conservative Urbanism in Toronto, Canada

This paper argues that urban neoliberalism can best be understood as a contradictory re–regulation of urban everyday life. Based on an analysis of neoliberalism as a new political economy and as a new set of technologies of power, the paper argues that the urban everyday is the site and product of the neoliberal transformation. Governments and corporations play a key role in redefining the conditions of everyday life through neoliberal policies and business practices. Part of this reorientation of everydayness, however, involves new forms of resistance and opposition, which include the kernel of a possible alternative urbanism. The epochal shift from a Keynesian–Fordist–welfarist to a post–Fordist–workfarist society is reflected in a marked restructuring of everyday life. The shift changes the socioeconomic conditions in cities. It also includes a reorientation of identities, social conflicts, and ideologies towards a more explicitly culturalist differentiation. Social difference does not disappear, but actually becomes more pronounced; however, it gets articulated in or obscured by cultural terms of reference. The paper looks specifically at Toronto, Ontario, as a case study. An analysis of the explicitly neoliberal politics of the province’s Progressive Conservative (Tory) government under Mike Harris, first elected in 1995, demonstrates the pervasive re–regulation of everyday life affecting a wide variety of people in Toronto and elsewhere. Much of this process is directly attributable to provincial policies, a consequence of Canada’s constitutional system, which does not give municipalities autonomy but makes them “creatures of provinces.” However, the paper also argues that Toronto’s elites have aided and abetted the provincial “Common–Sense” Revolution through neoliberal policies and actions on their own. The paper concludes by outlining the emergence of new instances of resistance to the politics of hegemony and catastrophe of urban neoliberalism.     

Revanchist Urbanism Heads South: The Regulation of Indigenous Beggars and Street Vendors in Ecuador

Abstract: Much of the discussion surrounding neoliberal urbanism has been empirically grounded in the North. This paper shifts the discussion south to focus on the regulation of indigenous street vendors and beggars in the Andean nation of Ecuador. Inspired by zero tolerance policies from the North, the cities of Quito and Guayaquil have recently initiated urban regeneration projects to cleanse the streets of informal workers, beggars, and street children. In this paper, I explore the particular and pernicious ways in which these neoliberal urban policies affect indigenous peoples in the urban informal sector. Grounded in the literature on space, race and ethnicity in the Andes, I argue that Ecuador's particular twist on revanchism is through its more transparent engagement with the project of blanqueamiento or “whitening”. I further argue that Ecuador's “refinement” of revanchist urban policies only works to displace already marginalised individuals and push them into more difficult circumstances.     

Planning's “Failure” to Ensure Efficient Market Delivery: A Lacanian Deconstruction of this Neoliberal Scapegoating Fantasy

Our neoliberal governance model places a burden on planning to often take “responsibility” for the failure of market-lead governance to deliver its policy promises of betterment, security and future enjoyment. These include promised, but often-unachievable policies, such as those of increased global competitiveness for areas of structural economic decline; or housing affordability in areas of population growth and constrained land availability. Resultant policy failures then result in a scapegoating response where planning is held responsible. Examples include that economic development, or housing affordability, is obstructed by planning impediments, such as regulatory controls or process delays, which are claimed to hamper efficient market delivery. To deconstruct this neoliberal fantasy that planning often impedes policies for market-lead success, the article will first document exemplars of this scapegoating process. It will then explore the role of fantasy and ideology in governance policy formulation and, from a Lacanian perspective, the theorization that underlies this process. Then, it will investigate the role of the “scapegoat” for public policy facilitation so as to explain why planning is often placed in this role, and why this role is often ideologically necessary, at least for neoliberal governance, when planning undertaking its statutory responsibility of facilitating the public interest.     

Literature,crisis, and Spanish rural space in the context of the 2008 financial recession

ABSTRACT

The novelistic production related to the 2008 financial crisis has been partially studied from the lens of the label of “literatura de la crisis.” In this article, I analyze the complex and essential transformations suffered by literary writing practices in contemporary Spain where ill attention has been devoted to the social, political, and aesthetic implications of neoliberal globalization in rural areas. Departing from a thorough conceptualization of the notion of “literatura de la crisis” and its paradoxical impact over the most recent literary production, I study the rural discourse and the emerging academic challenges for the assessment of the rural experience in literary works. In conclusion, I set the main principles for the development of a transposable model of textual analysis that will shed new light on the cultural representation of the rural sphere in the aftermath of the 2008 financial recession.     

Participation and Passive Revolution: The Reproduction of Neoliberal Water Governance Mechanisms in Durban,South Africa

Abstract: This article demonstrates that Gramsci's concept of passive revolution can be utilised to help unearth some of the contradictions of participatory development within neoliberal governance systems in the global South. I argue that some approaches to “participation” within neoliberal governance systems can, in part, be understood as moments within a protracted process of passive revolution. The argument is traced through eThekwini municipality's Community Participation Programme and the related extension of Free Basic Water (FBW). This article contributes to existing scholarship by demonstrating how a Gramscian analysis is indispensable to understanding the way in which state–civil society relations are conceived in participatory development strategies and the implications this might have for radical social change. I argue that a Gramscian approach compels us to reconsider current understandings of state–civil society relations so that we might overcome the impasse of passive revolution and move towards a more progressive form of politics.     

Neoliberal Capitalism and Conservation in the Post‐crisis Era: The Dialectics of “Green” and “Un‐green” Grabbing in Greece and the UK

“Green‐grabbing”, in which environmental arguments support expropriation of land and resources, is a recognized element in neoliberal conservation. However, capitalism's strategic interest in promoting the neoliberalization of conservation is accompanied by attempts to exploit hitherto protected natures without any pretence at “greenness”. In this paper we explore the dialectics between “green” and “un‐green” grabbing as neoliberal strategies in the reconstruction of nature conservation policies after the 2008 financial “crash” in Greece and the UK. In both countries, accelerated neoliberalization is manifested in diverse ways, including initiatives to roll back conservation regulation, market‐based approaches to “saving” nature and the privatization of public nature assets. The intensification of “green” and “un‐green” grabbing reflects capitalism's strategic interest in both promoting and obstructing nature conservation, ultimately leaving for “protected natures” two choices: either to be further degraded to boost growth or to be “saved” through their deeper inclusion as commodities visible to the market.     

The Shock of the Real: The Neoliberal Neurosis in the Life and Times of Jeffrey Sachs

This paper draws on Slavoj ?i?ek's critique of ideology in seeking to account for the persistence and transformability of the neoliberal project. Against understandings of neoliberalism as a utopian representation projected onto an external reality, I argue that neoliberal ideology operates as a social fantasy, which structures reality itself against the traumatic Real of Capital. The evolution of the neoliberal project should be understood, not as the meticulous manipulation of social reality, but as a series of increasingly desperate attempts to hold the very fabric of reality together. Reconceptualizing neoliberalization as a form of obsessional neurosis can help to explain the relentless persistence of “zombie neoliberalism” and its paradoxical trajectory towards increasingly intensive forms of social engineering. This argument is developed through a critical engagement with the work of the economist Jeffrey Sachs. From shock therapy to the Millennium Villages Project, Sachs's trajectory embodies the characteristics of the neoliberal neurosis. The paper aims to undermine the apparently monolithic power of neoliberalism, by challenging dominant critical representations of the neoliberal project in terms of a hyper‐rational governmentality. It also aims to subvert the attempts by Jeffrey Sachs and other neoliberals to reposition themselves as opponents of the Washington Consensus, and as spokesmen of the Occupy movement. The chosen method of attack is more satirical than polemical. Neurotic neoliberals such as Sachs have successfully appropriated ethical objections to neoliberalism in the name of “globalization with a human face”. In the present conjuncture, an immanent critique that reveals the internal incoherence of neoliberal ideology, and the hapless floundering of its proponents, is perhaps more effective than a repetition of familiar forms of moral condemnation. An alternative subtitle for this paper might therefore be “Towards a satirical materialism”.     

“Academic War” over Geography? Death of Human Geography at the Australian National University

This article analyses how neoliberal economic policies decide what particular aspects of knowledge are valuable and what are not, and who might be the true holder of that knowledge within the tertiary education system. This assessment leads to some disciplines being seen as less valuable to the system. It argues that the more recent “academic wars” in geography are over the very concept of the university and its role in the contemporary society, what comprises useful knowledge, and who comprises the authoritative figure in the production and distribution of that knowledge. Gender of the geographer therefore becomes a crucial element that determines “authority” in the production of geographical knowledge. To substantiate this argument, the paper takes up the important task of analysing the complex career trajectory of geography within the Australian National University (ANU), the department that was gradually reduced leading eventually to its unfortunate closure in 2009.     

Urban Systems of Accumulation: Half a Century of Chilean Neoliberal Urban Policies

We analyse a half‐century of Chilean urban reforms to explain the introduction of a system of urban accumulation by dispossession of public resources and opportunities. Three stages have been conceptualised in the imposition of a neoliberal creative‐destructive process: proto‐neoliberalism, roll‐back and roll‐out periods. Empirical studies have traditionally analysed this process by examining a single urban policy's evolution over time. In this paper, we go beyond these types of studies by performing a systemic analysis of multiple urban policy reforms in Santiago, Chile. We use a genealogical thematic analysis to track changes in laws, government programmes and planning documents from between 1952 and 2014. Our analysis identifies different “urban systems of accumulation” by looking at the interplay of four urban policies: (1) urban planning deregulation; (2) social housing privatisation; (3) devolution of territorial taxes; and (4) decreased public service provision. Moreover, our multidimensional policy analysis in Santiago characterises a more radical, fourth expression in the creative destruction process of “accumulation by dismantling”. Consequently, we advocate for more multidimensional urban policy research that goes beyond a three‐period analysis in order to gain a deeper understanding of contemporary neoliberal creative‐destructive processes in variegated geographies.     

4. NEOLIBERALISM THROUGH FOUCAULT'S EYES

Michael Foucault's 1979 lectures at the Collège de France on the birth of biopolitics are increasingly read as the most lucid introduction to neoliberal policies. This article invites us to be cautious about such claims by exploring one rather obvious point: these lectures also—and perhaps most important—reflect Foucault's very distinctive and contemporary preoccupations. In 1978, Foucault wrote and thought about three topics that were, in his view, crucial: the idea of “critique” and the influence of Kant; Foucault's project for an “analytical philosophy of politics”; and the crisis of disciplinary society, notably as it related to sexuality. This paper shows that these preoccupations had a profound impact on Foucault's interest in neoliberalism. As a result, the interpretation of the neoliberal revolution proposed in these brilliant lectures is, if not idiosyncratic, at the very least highly partial.     

China’s urban ideology: new towns,creation cities,and contested landscapes of memory

ABSTRACT

This paper argues that “the urban” has emerged as the most significant ideological realm in contemporary China. In developing this argument, I suggest an alternative approach to how we theorize urbanization in China. Seeking to avoid the dichotomized analyses that often characterize scholarship on China’s urbanization, the paper suggests reading “the urban” as an ideological device. Such a reading calls for an analytical distinction between the city as a technology of socialist party-state planning and government and urbanization as a messy social process over which the state struggles for control. It also calls for a recognition of the ways that ideology itself has shifted dramatically in China, from the Mao-era centrality and coherence of class struggle and its overriding goal of proletarianization to a much less coherent post-reform message of “stability”. The paper begins with a brief discussion of ideology and Gramsci’s notion of “common sense” in a Chinese register. It then considers the film 24 City, directed by Jia Zhangke, as a template for understanding urban spaces as sites of conflict between the city as an ideological device and urbanization as a social process. New urban spaces are then explored in an effort to tease out their complex and contradictory ideological renderings. I conclude with an argument about the openness and contradictions of China’s urban spaces and how an ideological analysis can resist the kind of theoretical closure that much work on urbanization in China seems to aim for.     

Planning Culture—A Concept to Explain the Evolution of Planning Policies and Processes in Europe?

Abstract

This article examines the complex relations between spatial planning and its cultural context (including the specific socio-economic patterns and related cultural norms, values, traditions and attitudes). To be able to analyze the extent to which spatial planning adapts to external pressures such as Europeanization, a “culturized planning model” with the three dimensions “planning artefacts”, “planning environment” and “societal environment” is used. It can be observed that the “harmonization” of spatial planning practices can result from external pressures such as EU regulations as well as (horizontal) collective learning processes. However, “harmonization” does not necessarily result in convergence. Adaptational pressures such as Europeanization often result in the customization of existing structures, frames and policies (“planning artefacts” and “planning environment”) but do not fundamentally change the underlying core cultural traits (“societal environment”). These cultural traits are quite resistant to change and help maintain a diversity of planning cultures and policies in Europe.     

The Receiving End of Reform: Everyday Responses to Neoliberalisation in Southeastern Mexico

Abstract: This article builds upon the literature on neoliberalism and environment as well as studies on community forestry by examining the creative accommodations that rural producers have made in navigating Mexico's neoliberal turn. In contrast to previous work that emphasizes macro‐level processes (eg privatization of public natural resources) and local resistance, I employ Bourdieu's theory of practice to examine the symbolic and material dimensions of local responses to neoliberal policy reform. Drawing on research from nine communities in the state of Quintana Roo, I argue that local producers have accommodated neoliberal policies and programs by adopting hybrid logics, property regimes, forms of organization, and modes of exchange. Moreover, I contend that these creative responses constitute elements of a longstanding “culture of accommodation” to institutional change that predates Mexico's neoliberal reforms.     

Regulating Over-indebtedness: Local State Power in Cambodia's Microfinance Market

Cambodian microfinance borrowers are suffering from an over-indebtedness crisis. In the past 20 years, the Cambodian government has implemented financial reforms that have commercialized the microfinance sector and promoted industry self-regulation. Echoing long-standing concerns about neoliberal microfinance, critics maintain that these reforms have hollowed out the Cambodian state's ability to regulate a highly competitive market, thereby exacerbating the problem of over-indebtedness. In contrast, based upon 20 months of ethnographic research in southern Cambodia by the author, this article argues that the microfinance market would not function without local authorities performing key regulatory roles of the state. These local authorities include commune councillors — elected representatives of multiple villages — who work closely with village leaders and local police. They are the primary state actors who enforce the property rights and loan contracts upon which Cambodia's microfinance market depends. The author analyses how this local state regulation contributes to household indebtedness by encouraging multiple borrowing, rural out-migration and land repossession. The article advances development studies scholarship on over-indebtedness by demonstrating that the inequitable outcomes of neoliberal microfinance can be better understood, and contested, by interrogating the multi-scalar spaces of state regulatory power.     

Neoliberal Reason and Its Forms: De‐Politicisation Through Economisation

This paper offers a historically contextualised intellectual history of the entangled development of three competing post‐war economic approaches, viz the Austrian, Chicago and post‐Walrasian schools, as three forms of neoliberalism. Taking our cue from Foucault's reading of neoliberalism as a mode of governmentality under which the social is organised through “economic incentives”, we engage with the recent discussions of neoliberal theory on three accounts: neoliberalism is read as an epistemic horizon including not only “pro‐” but also “post‐market” positions articulated by post‐Walrasian economists who claim that market failures necessitate the design of “incentive‐compatible” remedial mechanisms; the Austrian tradition is distinguished from the Chicago‐style pro‐marketism; and the implications of the differences among the three approaches on economic as well as socio‐political life are discussed. The paper maintains that all three approaches promote the de‐politicisation of the social through its economisation albeit by way of different theories and policies. © 2013 The Author. Antipode © 2013 Antipode Foundation Ltd.     

Defining competences for future geography students in relation to low carbon societies

ABSTRACT

This paper presents the results of an analysis of the most important skills and competences that will be important in the coming years for future geographers involved in assessing and managing low-carbon societies. The analysed information was extracted from a questionnaire answered by professionals working in low-carbon management in three European countries (Finland, Poland and Catalonia, Spain). From the results, we have identified not only the most requisite abilities and skills, but also differences between countries on a European scale. Among the findings, we would highlight the general agreement that “soft skills”, as opposed to “hard skills”, are critical for future professionals addressing policies in relation to low carbon societies.