This article analyses the handling of generic form in the middle section of Amitav Ghosh’s The Circle of Reason (1986), a section which has hitherto received little critical attention and which some readers find puzzling. In particular, it examines two literary modes used by Ghosh in representing a fictional Middle Eastern state: the picaresque and social realism. This well-demarcated textual focus forms the foundation for larger points about Ghosh’s writing, his critique of contemporary capitalist values and Western imperialism. Additionally, the article adumbrates ways in which Ghosh’s critique of the Oil Encounter can be connected to recent political developments, such as the so-called "war on terror". It is also a significant contribution to writing on oil. Colonial sugar, spice, and even cod have all received due attention, while oil, the author suggests, remains woefully under-discussed, given its determining role in contemporary economies
