Resources: Economics and finance

For many decades, the technique called "cost-benefit analysis" (CBA) has played a complex, conflict-provoking role in social and environmental politics worldwide. This draft chapter for a forthcoming book on the political economy of the environment argues that it may prove useful to popular movements to understand CBA as part of the longer history of business' use of machines in its war against labor.

The new, “green” state/corporate system that was heralded by capitalist visionaries in the early 2020s (including Larry Fink of BlackRock, Mark Carney of the United Nations, Bill Gates of Microsoft and Elon Musk of Tesla) envisioned both an intensification and an extensification of ecological plunder and degradation. The types of centralization involved, argues this discussion paper, amounted to a great deal more than just “greenwashing,” extending to worldwide re-regulation of labour and land.

What is business getting itself into in its embrace of so-called artificial intelligence? What is it getting the world into? In approaching these questions, it may be useful to set aside the term "artificial intelligence" in favour of "interpretation machines." To do so, argues this version of an essay published in Socialist Register 2021, is to point to ecological and political continuities between 19th-century and 21st-century automation -- continuities that may help clarify strategies for popular struggle.

Calls for reparations are resounding throughout the world today: for example, reparations for the injuries of centuries of white supremacy in the Anglo world of the US and the UK; reparations for centuries of colonialist extractivism in Latin America; payment for the immense “climate debt” owed to the global South; and reparations for the damages of male sexual predation, as exemplified in the Korean and Filipina comfort women struggles, the #MeToo movement, and many others in the Americas and elsewhere.

The 2021 Mekong ASEAN Environment Week, organized around the theme of "Redesigning ASEAN: People's Voices in World Crisis" (https://maew2021.simdif.com/), featured a panel on "Sharing the World with ASEAN" (the Association of Southeast Asian Nations).

The Corner House contributed a presentation on the global "green economy". A PDF version is available upon request from The Corner House, in either Spanish or English.

The biggest frontier of mechanization of the past ten years has been the automation, broadly speaking, of that particular type of human labour known as interpretation.

This presentation to a meeting of Campaign Against Criminalisation of Communities (CAMPACC) asks: what “flashes of mutual recognition” might arise from deepening processes of mutual learning between communities criminalised by the “War on Terror” and those criminalised by “the Securitisation of Everything”. 

We live in an age of “extreme infrastructure”, the most visible manifestation of which are “mega-corridors”. This study examines the political and economic interests driving such “mega-corridors” and the engineering of new “tradescapes”.

In its never-ending struggles to get the upper hand over workers, business has often dreamed of perpetual motion machines: devices that could deliver work without workers or the fossil fuels needed to power the engines that discipline them. The dream can only ever be a dream, however. Not only are perpetual motion machines physically impossible. Even if they could be built, they would destroy capital itself. Business cannot do without the human and nonhuman activity that it coopts, degrades and exhausts in cycle after cycle, because it is the source of the value it seeks.

This presentation argues that extreme inequality worldwide has not come about by accident, outlines some of the causes and the best hopes of tackling them, particularly “commoning”: actions that assert the collective right of all, not just the few, to survival.

Today's trade in ecosystem services tokens (carbon, biodiversity and so forth) has evolved as one component of capital’s troubled struggles to seek new global arrangements following the collapse of the compromises into which it was forced during the 20th century -- compromises that included welfarism, developmentalism and conventional environmental regulation.

Many lawful, routine, accepted practices in today's economic system are regarded by the general public as corrupt. They have created a distorted, privatised vision of the “public interest” and represent a new trend of state capture by for-profit interests.

This article is drawn from the book Licensed Larceny.

Inequality is as much a problem of wealth and the rich as it is of poverty and the poor. Licensed larceny is a proxy for how effectively elites have constructed institutions that extract value from the rest of society, for example, through Public Private Partnerships (PPPs) to build new infrastructure. How might social justice activists best respond? What oppositional strategies unsettle elite power instead of making it stronger?

This public lecture raises questions about the direction of mainstream discussions on energy, technology, finance, accumulation, and organising.

A background paper (available on request) details the stark divide between rich and poor nationally, regionally and internationally, as value has been progressively extracted over the past few decades from ordinary people.

Just as what is regarded as labour, land, health and mobility have changed under neoliberalism, so too has what is regarded as climate. Under previous phases of capitalism, climate was construed as part of a nature external to, yet interfacing with, society – as a condition for accumulation; as a resource; as an object of conservation; as a computer-modellable system. The neoliberal state builds on these conceptions in reconstructing climate as rentable and marketable units – and climate change as something a separate, monolithic society must "adapt" to.

The gap between rich and poor has widened massively over the past 30 years, within and between countries. Such inequality does not come about by accident or simple mismanagement. It is best understood as 'a proxy for how effectively an elite has constructed institutions that extract value from the rest of society.' A presentation available upon request argues that public-private partnerships are such a set of institutions, with important implications for activism to challenge them.

This 124-page report aims to understand how energy and finance have been constructed and contested during stormy transformations in industry, livelihood and exploitation over the past two centuries. Its goal is to help effective movements seeking finance for a greener, more democratic, liveable energy future regard both energy and finance as political processes in motion and as continuing social struggles.

"Let's internalize the externalities" has become an important slogan of the new "green economy". Its logic is evident in the Kyoto Protocol, the UK's plans for a "net zero" economy, countless regulatory projects advised by environmental economists, and even in financial markets' efforts to commodify radical uncertainty.

But is this a solution for the environmental and social problems thrown up by capital accumulation, or a perpetual motion machine that functions merely to create more problems and business opportunities? A presentation delivered at the Institute for Social Studies in The Hague (available from The Corner House upon request) argues otherwise.

All processes of commodification are different, depending on what is being commodified, how it is commodified, the degree to which it is commodified, the resistances of the material and of the people affected and so on. For this reason, attempts to commodify some things may make headway, while attempts to commodify others fall down immediately. This chapter from Nature™ Inc: The New Frontiers of Environmental Conservation (edited by Robert Fletcher, Wolfram Dressler and Bram Büscher, 2014) proposes an analytical tool that can help explain why neoliberal efforts to commodify climate benefit are failing so disastrously. A drastically abridged version has been published by the online magazine Mute at http://www.metamute.org/editorial/articles/performative-equations-and-ne....

Proposals for greening the economy necessarily involve the greening of finance as well. But how is a greener finance to be achieved? Activist strategies that fail to take stock of where finance is today in the wake of the 2007-08 breakdown -- and the struggles that are continuing to develop between neoliberalism and the commons -- are unlikely to succeed, and may actually do harm.

A powerpoint presentation setting out these arguments is available upon request to The Corner House.

What does the "green economy" -- and the neoclassical economic thinking that gave rise to it -- look like from the perspective of the commons? A powerpoint presentation from a May 2012 workshop in Quito for activists, Indigenous leaders, students and the general public suggests some avenues for exploration. The powerpoint is available upon request to The Corner House in both English and Spanish.

Campaigners slam government’s development approach as DfID-backed private equity fund comes under criminal investigation in Nigeria

This book chapter explores some of the parallels, connections and disjunctures between the promised genetic revolution in medicine and health, and the crash of financial capital in 2008, aiming to illuminate several known insights for pursuing public health futures and finances that are often kept in the dark or conveniently forgotten.

"What news on the Rialto?" one of Shakespeare's businessman characters asks another in "The Merchant of Venice", referring to the bridge where Venice's merchants met to trade. If such a scene were played out today on Wall Street, the topic of conversation might well be how to make money out of saving the Rialto itself. But those who have always lost out as a result of the goings-on on the Rialto may want to talk about something other than how to "fix" a system that has always disadvantaged them.

A powerpoint presentation available on request from The Corner House explores these themes.

The Export Credits Guarantee Department should target its support towards small- and medium-sized enterprises (SMEs) that contribute to long-term, sustainable job creation and tax revenues in the UK. It should support low-carbon technologies instead of fossil fuel projects, such as oil pipelines and gas fields. It should reinstate immediately its environmental and social screening procedures, which were so significantly weakened in May 2010 that ECGD could now support projects using child and forced labour.

This book chapter explores the interacting origins, development and politics of the “strange markets” in finance and climate developed in recent years and exposes the similar dangers they pose.

Los “mercados extraños” y la crisis climática

Este capítulo del libro explora los orígenes, el desarrollo y la política de los “mercados extraños” que han aparecido en las décadas recientes en el sector financiero y en la política climática internacional, y expone los peligros que presentan.

 Some 154 million people were reportedly driven further into poverty in Southern countries as a result of speculation-induced food price hikes in 2007-08. What are the best strategies for bringing about the structural change needed that progressive activists can lend their support to?

This workshop presentation, while endorsing regulatory measures including banning certain investment vehicles such as exchange-traded funds and vetting of derivative-based financial instruments, cautions against becoming focussed on regulation alone as an answer. Also crucial is the promotion of non-derivative, socially-based mechanisms to protect farmers and consumers from volatile food prices, as well as price interventions that do not pit Northern farmers against their Southern counterparts.

One lesson the financial crisis teaches us is: beware of the new carbon markets that constitute today's main official response to climate change. These markets are startlingly similar to the financial derivatives markets that have thrown banking systems into a tailspin. (German version also available.)

Mercados de incertidumbres y mercados de carbono: variaciones en temas de Polanyi

Una de las lecciones que la crisis financiera nos enseña es a tener cuidado con los nuevos mercados de carbono que constituyen hoy la principal respuesta oficial al cambio climático. Este artículo de la revista New Political Economy argumenta que estos mercados son sorprendentemente similares a los mercados de derivados financieros que arrojaron a los sistemas bancarios al caos en 2008.

This Memorandum raises questions about the due diligence conducted by CDC, a company owned by the UK Government, in its dealings with two private equity firms that have invested in Nigerian companies. These companies are reported to be “fronts” for the alleged laundering of money said to have been obtained corruptly by the former Governor of Nigeria’s oil rich Delta State.

The approach to climate change that came to grief in Copenhagen in December 2009 is based on fetishism about molecules, numbers and targets. By trying to stuff politics, uncertainty, and history into a black box that is then set to one side, it has ensured its own demise. Tackling global warming effectively requires facing, rather than evading, the realities of inequality, conflict, exploitation, context and uncertainty.

After the BTC Consortium, led by BP, formally asked the UK's export credit agency, ECGD, for financial support for its BTC oil pipeline project, ECGD's Business Principles Unit (BPU) assessed the potential environmental and social impacts of the project. The BPU's findings and recommendations were critical to ECGD's issuing significant financial guarantees for the project in February 2004.

When The Corner House put in an information request for a copy of the BPU's report, it was refused. Only after appeals and counter appeals was the information finally released in August 2009.

Carbon permit prices flashing on electronic screens in Wall Street trading rooms reflect a complex political movement to reorganize and redistribute power and knowledge. The carbon markets associated with the Kyoto Protocol, the EU Emissions Trading Scheme and the US's Waxman-Markey Act constitute perhaps the last great class project of a waning neoliberal regime – the ill-fated attempt to privatize the climate itself.

El neoliberalismo y el mundo calculable: El ascenso del comercio de carbono

Los precios de los derechos de emisión de dióxido de carbono que aparecen en las pantallas de las computadoras de Wall Street reflejan un movimiento político complejo para reorganizar y redistribuir el poder y el conocimiento. Los mercados de carbono del Protocolo de Kioto y el Esquema del Comercio de Emisiones de la Unión Europea son uno de los últimos grandes proyectos del neoliberalismo – un intento malhadado de privatizar el clima. Este capítulo del libro, "El neoliberalismo y el mundo calculable: El ascenso del comercio de carbono", describe las contradicciones del intento de formar una mercancía con el clima.

A talk at a Cardiff Business School conference on the insights from political organising that can help not only understand what caused the financial crisis but also develop ways forward that could ensure it is not repeated and that finance serves a public purpose.

On 12-13 March 2009, development, environment and human rights groups from Belgium, France, Italy, Ireland, Switzerland and the UK, and local residents of the island of Jersey organised a seminar to discuss the necessity for tax haven reform and to exchange views on how governments and civil society can work towards achieving a "just transition" for tax havens that would not impact on poorer residents.

Environmentally- and socially-destructive development projects are increasingly being funded by hedge funds, private equity and sovereign wealth funds (instead of by public or private banks) that are not subject to transparency, governance or reporting requirements. Public financial institutions are also investing in these alternative vehicles, which are often based in offshore tax havens. Basic information about these vehicles is not routinely made public. But in the midst of the financial crisis, the Asian Development Bank is pushing for even less transparency for such risky investments. Regulatory authorities should instead focus on much stronger transparency and accountability requirements and address the use by public financial institutions of "secrecy jurisdictions".

39. Financial entrepreneurs created a 'shadow banking system' over the past 30 years to circumvent regulation and to offload risk onto others, relying on 'derivatives' and 'securitisation'. They generated easy credit that fuelled a boom in corporate mergers and acquisitions across the United States and Europe, and that enabled companies involved in mining, biofuels, private health care, water supply, infrastructure and forestry to expand their activities significantly. When the pyramid of deals came tumbling down, however, the public had to bear the costs.

Many new schemes are afoot to allow the North to pay the South for conserving its forests in return for permission to continue using fossil fuels. But how would a market in pollution rights generated by Reducing Emissions from Deforestation and Degradation (REDD) play out in reality?

Slowing and halting new fossil fuel developments has moved to the top of the global climate change agenda. But what are the obstacles to, and resources for, such a project? The 10-year struggle against a gas development project in one corner of Southeast Asia, described in this article in the journal Race & Class, offers lessons in some of the complexities.

This briefing outlines the different ways in which countries have financed both social security for older people and economic production. It describes the rise of the private model of pensions and the influence of pension funds on capital flows around the world. It then summarises and critiques the main justifications given for expanding private pension schemes, and analyses the motivations of the groups that perpetuate this model.

Seeing social or technical change as the application of new "theory" to "practice" is one of the hazards of 21st-century middle-class life. Middle-class activists could take a leaf from both expert elites and grassroots movements, who both tend to know better.

International carbon trading systems are failing. They are both climatically ineffective and politically infeasible. The UK Parliament's Environment Audit Committee conducted an Inquiry into the International Challenge of Climate Change: UK Leadership in the G8 and EU in October-December 2004. This Memorandum was submitted as written evidence to the Inquiry by The Corner House, SinksWatch and Carbon Trade Watch.

The “carbon market” approach of international agreements to tackle climate change is incoherent. No one knows how to value the goods in this market, nor to whom they belong. As a result, the market, backed by a growing, well-funded, global climate technocracy, will subsidise further climate change. Democratic challenges to this “carbocracy” will be crucial in opening up the climate debate and combating the scientific fraudulence now rife in mainstream discussions.

If the choice of whether and when to translate claims to water and land into other idioms shapes and is shaped by power relations, so too is the choice of how to translate them. The charges of “misunderstanding” and “misinterpretation” that ricochet around any conflict of interpretation are negotiating moves, not claims that can be settled once and for all by fixing on a meaning that floats free of the context of discussion and struggle.

The intersections between international nature conservation and ethnic politics are of serious and growing concern to many social movements in Southeast Asia. This paper offers evidence that international environmentalist practices interact with local and national conditions to advance the structural work of ethnic discrimination and racism in Southeast Asia. The racist outcomes of these practices do not flow exclusively from unprofessionalism, faulty science, irrationality, immorality or incorrect beliefs -- and anti-racist strategy has to accommodate this insight.

Decision-makers around the world use cost-benefit analysis (CBA) to decide whether or not to build dams, roads and airports; what actions to take over global warming, biodiversity loss and soil erosion; what health care and occupational safety policies to adopt; and so forth. Grassroots opponents of roads and hydroelectric dams, however, have persistently contested the ways CBA values land, forests, streams, fisheries and livelihoods.

This summary of a conference held in 1999 at Yale University, co-organized by The Corner House, is also available above in Bahasa Indonesia in a translation made in 2022 by Hendro Sangkoyo of the School of Democratic Economics. For related work on cost-benefit analysis see http://www.thecornerhouse.org.uk/resource/toward-different-debate-environmental-accounting and http://www.thecornerhouse.org.uk/resource/whose-voice-speaking.

Many internal wars in Africa, Central and Eastern Europe and the former Soviet Union, far from representing societal breakdown, can be seen as a rational response on the part of rulers (and would-be rulers) to ensure their economic and political survival in a context of globalisation and the changing nation-state.