Smallholder Livelihood Adaptation in the Context of Neoliberal Policy Reforms: A Case of Maize Farmers in Southern Veracruz,Mexico

Governments around the world have embraced trade liberalisation as a means of enhancing efficiency to realise economic growth and alleviate poverty. Likewise, the Mexican government implemented neoliberal policy reforms, the NAFTA in particular, to stimulate sustainable development. Using the Mexican maize sector as illustration, this article describes the adaptation process of smallholders to market changes shaped by these reforms. Going beyond the aggregated level, we have investigated smallholders' livelihood strategies. Contrary to what economic models estimated, our data suggests that farmers intensified the cultivation of maize rather than switch to sectors in which Mexico has a comparative advantage.     

From protectionism towards neoliberalism: Ecuador across four administrations (1981–1996)

Ecuador since 1980 illustrates many features of Latin America’s neoliberal transsition. Ecuador shifted from a state-oriented development model and towards a neoliberal approach across four ideologically-diverse administrations. Although the four presidents implemented reforms inconsistently, they have reoriented the country’s development strategy towards neoliberalism. Four contextual factors explain this sustained transition: (1) financial problems, (2) global ideological factors, (3) a perceived lack of alternatives, and (4) weakness of popular opposition. These factors are mutually reinforcing and each need not bear directly on each decision for neoliberal reforms to be chosen. Their combined force sustains the neoliberal transition despite considerable negative social and economic effects. [There is a] change in ideas, a change in reality, an ideological change produced in the world… that discredits socialism, that discredits statism, that discredits interventionism that discredits formal economic planning, and as a consequence liquidates the Latin American model of economic growth, which while not socialist, has had many of [socialism’s] elements. And [this change] legitimizes the conservative revolution of Reagan and Thatcher, and legitimizes another economic model that is based on market force —Osvaldo Hurtado, Ecuadoran President 1981–1984, founder of the left-of-center Democracia Popular party, and founding member of Socialist International; speaking in 1994     

Overcoming apartheid's legacy: The ascendancy of neoliberalism in South Africa's anti-poverty strategy

Poverty in South Africa is intertwined with a host of social and economic issues. The burden of poverty is exacerbated by limited access to basic services, poor housing, limited employment opportunities and inadequate infrastructure, which are an outcome of the terrible legacies of apartheid. During its first year in office, the ANC-dominated government officially endorsed a policy of 'growth from redistribution', whereby a strong state and a strong market were expected to serve as vehicles for generating growth and reducing poverty and inequality. By 1996, however, the government had embraced a standard neoliberal strategy as a central piece of its anti-poverty strategy. This article examines the potential contradictions between what appears to be on the surface progressive social policy on the one hand, and on the other, the implementation of aggressive neoliberal strategies of privatisation, liberalisation and deficit reduction to stimulate the economy and create jobs. This heavy reliance on market-led solutions is a high risk strategy, since there exists no example internationally where neoliberal adjustment of the sort championed by President Thabo Mbeki and Finance Minister Trevor Manual has produced a socially progressive outcome, especially in a country like South Africa, which is marked by extreme disparity and poverty.     

Macroeconomic performance and poverty in Brazil

Drawing on Brazilian time-series data this study finds an inelastic link between poverty and wages over the macroeconomic cycle that is devoid of the asymmetric effects that characterise the phenomenon's response to changes in the rate of unemployment. Deepening of structural reforms in the second half of the 1990s had no effect on the aforementioned relationships, which also varied little by regional level of development. Finally, the connection between poverty and long-term income changes was more elastic, suggesting an association between the economy's recent disappointing performance in alleviating poverty and its lacklustre growth record over the past two decades.     

Views from the periphery: Futures of neoliberalism in Latin America

The political economy of Latin American countries seems increasingly characterised by neoliberal approaches. Economic factors at the global and continental scale seem to reinforce this trend. This article explores the social bases of neoliberalism not only in terms of the technocratic but also of the wider social and political base. The connections between neoliberal reform, people and places are explored through examining the nature of exportorientated growth, the transformations of labour markets, the social impacts of reform, poverty and the changing social provision of the state. The contradictions within the neoliberal model are examined before the future of neoliberalism and the prospects for alternative development strategies and sociopolitical scenarios are considered. In particular, the arguments from neostructuralist contributions are assessed and some of the contrasts between neoliberal and neostructural theories identified.     

Slovakia's Neoliberal Turn

Slovakia distinguished itself in the first half of this decade by launching a coherent set of economic reforms that limited government and transferred social and economic risk to individuals. We examine reforms in fiscal policy, pensions, the labour code, health care, investment, education and justice. While the surprise formation of a centre – right governing coalition in 2002 enabled Slovakia's ‘neoliberal’ turn, a close network of neoliberal policy makers and advisors from civil society organisations used the opportunity to push forward a compelling explanation of Slovak economic problems and promote a clear institutional design for fixing them.     

Global inequality: Bringing politics back in

Data on contemporary global inequality are dramatic, widely known and a new conventional backdrop. In research and policy economists lead the way and the emphasis is on global poverty rather than inequality. Within nations poverty is a challenge, while inequality is not; on a world scale, arguably it is the other way round. The international policy focus on poverty alleviation coexists with neoliberal policies that widen inequality domestically and internationally. A strategic question is where the data depart from the conventional wisdom. Thus a general assumption is that inequality within countries is largest in poor countries; the widest inequality, however, is found within the USA and UK. The conventional assumption is that neoliberal policies and free trade lift all tides; those countries and periods, however, where this policy has been most consistently implemented show the steepest increase in inequality. Global inequality helps sustain domestic privilege. The belief that the risks that global inequality poses can be contained in the global margins is contradicted by the cross-border effects of environmental degradation, migration, transnational crime and terrorism. In explaining global inequality, economic accounts ignore inequal relations of power. The combined policies of developmental discipline, global integration, and marginalisation and containment may be viewed as part of a single process of hierarchical integration, which has turbulence built in.     

Beyond Impoverished Anti-poverty Paradigms

More subtle than the manifestations of poverty are the paradigmatic means of sustaining, deepening or lessening it. Indeed, dominant knowledge structures are insinuated in policy making and conventional anti-poverty measures, some of which reflect the poverty of the intellect. Ensconced in distinctive contexts, poverty itself is shaped by the template of neoliberal globalisation. This paradigm promises that economic gain will benefit all who are faithful to its principles. It evokes a vision not only of economic well-being but also of distributive justice, including poverty reduction. In its centrist and reformist guises, the orthodox anti-poverty paradigm may be best understood as a chain of relationships: neoliberal concepts, a preoccupation with methods for measuring results, a loathness to tackle underlying factors that generate widespread privation, gender ideology, and the delinking of economic reform and social policy. On the rise, too, is growing resistance to this consensual thinking, mainly from transnational civil society organisations and allied intellectuals. Six priorities are suggested as the basis for forming multiple, decentred paradigms to expunge poverty. The challenge is to produce homegrown knowledge structures that open to learning from other experiences.     

The deep marketisation of development in Bangladesh

This article introduces the concept of ‘deep marketisation’ as a relatively new, contemporary phase of neoliberal development policy in Bangladesh. By looking into the development strategy of the country’s energy sector, the article shows how an emphasis on marketisation through public-private partnerships (PPPs) and other strategies advances a market fundamentalist agenda to strengthen the private sector and establish a world market. By drawing on interviews with development practitioners from various development organisations in Bangladesh, the article further reveals how development conceptualisations are shaped by the strategy of deep marketisation, leading to the impoverishment of development by constraining its field of actions to measures based on the primacy of economic growth and private sector-led economic development, at the same time leading to a re-legitimisation of flawed neoliberal development policies that result in further inequality, poverty and environmental degradation.     

The neoliberal discourse on corruption as a means of consent building: reflections from post-crisis Turkey

This article draws attention to the ideological role that the neoliberal discourse on corruption has fulfilled in the promotion of the second generation reforms in Southern countries since the 1997 East Asian financial crisis. This discourse is ahistoric insofar as it fails to recognise corruption as a problem of modernity; biased insofar as it associates corruption with Southern countries' historical and cultural specificities only; contradictory in terms of its counter-productive anti-corruption strategies; and politicised as it has redefined ‘corruption’ as ‘rent-seeking’. In the absence of alternative radical conceptualisations, this essentially competition-induced neoliberal orthodoxy on corruption has been easily articulated within morality-based popular concerns in domestic politics and hence acquired a hegemonic capability. The article substantiates these arguments by examining the trajectory of the neoliberal anti-corruption agenda in Turkey with a particular focus on the developments of the post-2001 financial crisis period.     

Administrative Cohesion and Anti-Corruption Reforms in Georgia and Ukraine

Previous studies of former communist countries have linked decentralisation of power to a greater likelihood of reform. An analysis of the anti-corruption drives in Georgia and Ukraine after their respective ‘colour revolutions’, however, suggests that Georgia’s greater centralisation was integral to its success in enacting anti-corruption measures. In explaining why this contradictory result happened, this article argues that a centralised government can be more effective at implementing reforms than a decentralised one as long as the background and preferences of the ruling administration are conducive to change.     

Aid and Gendered Subjectivity in Rural Guatemala

Development discourse has focused on gendered dimensions of poverty, demonstrating how parastatal poverty alleviation programmes target women as aid recipients while devaluing their productive and reproductive work. However, seldom analysed is how privatisation of social services and proliferation of non-governmental organisations (NGOs) have impacted women. We explore this in a Guatemalan community where we find that although NGOs discursively commit to ‘alternative’ development approaches, on the ground they reproduce elements of a neoliberal subjectivity akin to parastatal programmes. NGOs additionally configure aid disbursement as gift giving, requiring beneficiaries to assume affective postures of gratitude, and facilitating intrusion into women’s lives.     

Do land reforms have adverse impacts on the livelihoods of poor land users? Evidence from the Nkoranza South Municipality,Ghana

Poverty reduction is the overarching goal of most development interventions in the developing world. From 2004, Ghana has been implementing a land reform policy/programme that seeks to improve tenure security and reduce poverty. The present study uses qualitative methods to analyse the extent to which land reforms are enabling or inhibiting poor land users in Ghana to exit poverty and improve their living standards. The study finds that Ghana’s land reform system redefines customary land governance resulting in a breakdown of the trusteeship ethos of the chieftaincy institution, increasing land sales, insecurity of land tenure for the poor and disappearing commons. These factors subsequently have adverse impacts on the ability of poor people to meet their livelihood needs. The study concludes that, for land reforms to work proactively for the poor, they must be pursued as part of broader, holistic and integrated development initiatives.     

Postcommunist divergence: A comparative analysis of the transition to capitalism in Poland and Russia

This article critiques the dominant neoliberal transition paradigm. The implementation of neoliberal reforms in the postcommunist world has fostered the creation of two different types of capitalism. Rather than enabling a transition to Western European-style capitalism, these reforms have produced divergence within the postcommunist world. This article uses comparative firm-level case studies from Russia and Poland to construct a “neoclassical” sociological alternative to neoliberal theory that can explain this divergence. In this account, intra-dominant class structure (the pattern of alliances between the Party bureaucracy, the technocracy, and humanistic intellectuals) at the time of the transition produces different “paths to capitalism,” or policy regimes, which, in turn, have different effects on the ability of firms to restructure. In Russia, this creates a system of “patrimonial capitalism” that will produce long-term economic stagnation. In Poland, a variety of modern rational capitalism emerges. This latter system is distinguished by its very high levels of dependence on capital imports in comparison to the advanced capitalist countries. As a result, this type of economy will be quite vulnerable to economic shocks. Lawrence King is an assistant professor of sociology at Yale University. His book includeThe Basic Features of Postcommunist Capitalism in Eastern Europe (2001) andAssessing New Class Theory (with Ivan Szelenyi, forthcoming). He is currently working on a book entitledPostcommunist Capitalisms. I am grateful for a Yale Junior Faculty Research Fellowship, and the support of the Yale Center for Comparative Research, the Social Science Research Fund at Yale, and the Yale Center for International and Area Studies. I would also like to thank Aleksandra Sznajder and Evgenia Gvozdeva for their invaluable research assistance, and Ivan Szelenyi, Andrew Schrank, Hannah Brueckner, Alison Pollet, and the editors and anonymous reviewers atStudies in Comparative International Development for their comments and suggestions.     

Economic growth,income inequality and poverty in china under economic reforms

China's gross domestic product (GDP) more than quadrupled between 1978 and 1996 under economic reforms. Per capita disposable incomes more than tripled in the cities and almost quadrupled in the rural areas. However, rapid economic growth brought about large income inequality which slowed down poverty reduction. In 1995, there were still 70–170 million people living in poverty. This article aims to assess the relationship between economic growth, income inequality and poverty using both secondary and household survey data. The main findings are (1) urban/rural divide and spatial inequality are two major factors accounting for overall income inequality; (2) non‐wage and non‐farm incomes are more unequally distributed than wage and farm incomes; and (3) the incidence of poverty is very sensitive to the changes in per capita income and inequality.     

Jordan: Model Reformer Without Upgrading?

Jordan has been praised as one of the best reformers among middle-income countries. Renewed growth during recent years has raised expectations that the reforms are finally bearing fruit. This article argues that growth in Jordan is not based on structural transformation and is not sustainable in the absence of firm-level upgrading. Growth has been driven by the expansion of non-tradable activities, while the country has not been able to modify its production structure or achieve noticeable productivity improvements under neoliberal policies. Higher value added and technology-intensive production has not evolved concomitantly with the development of social capabilities, impeding the emergence of a virtuous cycle leading towards economy-wide upgrading. Uneven development of social capabilities has also constrained the upgrading potential. The macroeconomic context has not been conducive to generating incentives for investment aiming at enhancing firm-level capabilities and promoting economic diversification. Upgrading will not take place spontaneously by the free functioning of market forces alone, and in its absence Jordan will not be able to confront the middle-income trap. This requires a more active state intervention, beyond building a business friendly environment, which in turn demands the development of institutional capabilities The Jordanian experience offers important insights for other small countries that have embraced the neoliberal recipe for development.     

Agriculture in and beyond the Haitian catastrophe

Although the devastation from Haiti’s 2010 earthquake was concentrated in Port-au-Prince, it had deep agrarian roots. This paper situates Haiti’s urban poverty in the chronic exploitation of the country’s peasant classes as a basis for assessing the competing contemporary visions for agricultural development. We argue that the post-earthquake reconstruction has fortified a neoliberal development that is incompatible with the aspirations of the Haitian peasantry. Given the interrelated power of domestic elites and international donors, and the proliferation of disconnected development projects, we conclude that any prospect for pro-poor development hinges on the growth and collaboration of peasant movements.     

How the World Bank manages social risks: implementation of the Social Risk Mitigation Project in Turkey

This paper aims to assess the World Bank’s social risk management approach to poverty by focusing on the implementation details of the Social Risk Mitigation Project in Turkey, a World Bank project that depends on this approach. The paper looks at the approach through the concept of neoliberal governmentality, as an attempt to produce responsible poor citizens during a period when the responsibility for providing social services is transferred to the market and the family. By using field research it demonstrates that, with the intervention of local factors, several unintended consequences emerge in the implementation of a social risk management project. The article concludes that these outcomes, although not planned or intended, have all been instrumental in depoliticising poverty and the poor in the country. Moreover, in spite of all the problems and dissatisfaction, thanks to the Bank’s own portrayal, this project has contributed to the image of the Bank as a development institution that achieves successes in its fight with poverty.     

The Rise of India: Overcoming Caste Society and Permit-License-Quota Raj,Implementing Some Economic Freedom

Two or three centuries ago most of mankind was still very poor. When the West outgrew mass poverty, India was a British colony and suffered from stagnation. When East Asian economies exploited the advantages of backwardness and benefited from export-led growth, India remained inward-looking and poor. The ‘Hindu rate of growth’ preserved mass poverty. Since the reforms of the early 1990s India has exploited the advantages of backwardness and some global markets. In this article, the roots of India's failure to grow rapidly before the end of the twentieth century are analyzed. Stagnation is blamed on restrictions of economic freedom, whereas growth is explained by the expansion of economic freedom. Before the mid-twentieth century, the caste system and the legacy of sultanism curtailed economic freedom and contributed to economic stagnation. Thereafter, democratic socialism distorted incentives and generated ‘permit-license-quota raj’ or a rent-seeking society. When some obstacles to growth were dismantled, vigorous growth followed. Although expanding economic freedom remains limited. India's growth potential is not yet fully exploited. Indian infrastructure and human capital formation remain inadequate, regulations intrusive, and the budget in deficit. The rule of law looks better on paper than from the ground. Compared to China Indian public policy still has a lot of room for improvements. ‘Maoists’ or Naxalites threaten political stability and economic freedom. Geopolitics may explain India's late, slow and incomplete reforms. The rise of Asia, in particular of China and India, generates geopolitical challenges of its own. Conceivably, the global expansion of economic freedom permits not only the rise of Asia, but the peaceful management of the coming power transition between Asia and the West.