Is fin-tech the new panacea for poverty alleviation and local development? Contesting Suri and Jack’s M-Pesa findings published in Science

Financial technology, or simply ‘fin-tech’, is increasingly seen as one of the key tools to facilitate poverty reduction and local economic development. One article in particular by Tavneet Suri and William Jack published in the leading publication Science has played a hugely influential role in promoting the fin-tech model in the global South using the example of Kenya’s iconic M-Pesa money transfer platform. The authors’ central claim is that M-Pesa has been instrumental in facilitating a major episode of poverty reduction. Our analysis shows that their analysis and claims are extremely problematic

The corporation tax is under attack. It must be defended

Nicholas Shaxson argues that a corporation tax cut may increase revenue for big business but this does not in any way translate to increased revenue for the country in which they reside. Corporations the world over sit on vast sums of wealth and without a tax on revenue, economic growth and vital public services will remain all the more elusive

The political economy of foreign investment in Latin America: dependency revisited

Examination of foreign investment inflows, stock, and outgoing profit flows from Latin America in the neoliberal period shows that the basic tenet of the dependency thesis still holds: there is a huge and underreported transfer of surplus value out of the continent. European capital has overtaken U.S. capital as a source of investment, and within the Andean region there are two distinct groups of countries with regard to investment regime: the Andean nations of the Alianza Bolivariana para los Pueblos de Nuestra América (Bolivia, Ecuador, and Venezuela), which have succeeded in increasing the proportion of surplus profits retained in their national economies against that part captured by international capital, and their non-ALBA neighbors. A new dialectic of domination and dependency is at work, with the focus on contesting bilateral free-trade agreements and investment treaties

’The Girl Effect’: Liberalism, Empowerment, and the Contradictions of Development

The ‘girl effect’ – the idea that investment in the skills and labour of young women is the key to stimulating economic growth and reducing poverty in the global South – has recently become a key development strategy of the World Bank, the imf, usaid and dfid, in partnership with corporations such as Nike and Goldman Sachs. This paper examines the logic of this discourse and its stance towards kinship in the global South, situating it within the broader rise of ‘gender equality’ and ‘women’s empowerment’ as development objectives over the past two decades. Empowerment discourse, and the ‘capability’ approach on which it is based, has become popular because it taps into ideals of individual freedom that are central to the Western liberal tradition. But this project shifts attention away from more substantive drivers of poverty – structural adjustment, debt, tax evasion, labour exploitation, financial crisis, etc – as it casts blame for underdevelopment on local forms of personhood and kinship. As a result, women and girls are made to bear the responsibility for bootstrapping themselves out of poverty that is caused by external institutions – and often the very ones that purport to save them