From poverty to power (2008)

Book Review from the December 2008 issue of the Socialist Standard

How Active Citizens and Effective States can Change the World by Duncan Green (Oxfam Publishing 2008)

Duncan Green defines an effective state as one that “can guarantee security and the rule of law,” and has an effective strategy “to ensure inclusive economic growth”. Such a state should be accountable to citizens and able to guarantee their rights. Active citizens are linked to the state by a “combination of rights and obligations”: making use of these rights to improve their conditions.

He argues that it is the combination of poor men and women and their national governments that provide the main actors in the fight against poverty and inequality. Case studies are given to illustrate how even the poorest people have by their organised and persistent actions brought about beneficent change in their circumstances. Like the Chiquitanos people of Bolivia who after 12 years of “unremitting and often frustrating struggle” won legal title to the 1m-hectare indigenous territory of Monteverde.

He is aware that the scales are weighted against the poor in all areas. For example, research is dominated by the private sector: in agriculture 5 large multinational corporations spend $7.3bn per year on agricultural research on high value, high profit products while the staple foods of poor communities are “likely to be overlooked.” In biotechnology the picture is the same with GM crops being genetically engineered to meet the needs of large scale farms. There is no serious investment in the five most important semi-arid and tropical crops.

Half of the world’s population lives in the countryside and the majority of people in absolute poverty live in the rural areas. OECD (Organisation for Economic Co-operation and Development) sources are given for the claim that over the past 20 years aid donors and governments have effectively withdrawn from the countryside. Mention is made of the well known ‘structural development programmes’ which imposed a ‘radical free market’ on debtor countries.

Agricultural growth, Green argues, reduces poverty but is most effective when small farmers are able to capture a fair share of the benefits. Local farmers, he says, should be helped to improve the quality of their produce so that for example retail giants like McDonalds and Pizza Hut use local produce instead of importing produce from the USA. Here his ‘active’ citizens would be small farmers “organising their ability to negotiate a fair deal”. However when it comes to buying fertilizer or seeds, or selling produce or their labour, small producers are dominated by the large corporations. Small farmers are “de facto employees”.

In Green’s view efficient states should take the environment and the enhancement of the daily lives of the poor as prime considerations. Global governance (the “web of international institutions, laws regulations, and agreements”) could help, and the 8 main ways he lists include managing the global economy, redistributing wealth through aid or international taxation, averting health threats and avoiding war. However global governance fails to live up to its ideals. “The WTO is frozen, regional trade agreements are proliferating and introducing profoundly unfair trade and investment rules, the G8 is failing to keep its promises on aid…”, then there is the threat of climate change and “a looming financial crisis”.

The book is well sourced with a 24-page bibliography and three further pages listing background papers. There is much useful information covering more areas than can be dealt with in a review. However Duncan Green takes a moral stance whereas under capitalism the prime consideration cannot be the welfare of citizens active or otherwise, but sale and profit; this drives development (forget sustainable) – and can also inhibit it. And the state that in his view is supposed to facilitate change will only do so to the extent that the interests of the owning class are served.

Pat Deutz