Accumulation by dispossession
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Accumulation by dispossession is a concept presented by the Marxist geographer
David Harvey David W. Harvey (born 31 October 1935) is a British-born Marxist economic geographer, podcaster and Distinguished Professor of anthropology and geography at the Graduate Center of the City University of New York (CUNY). He received his P ...
. It defines neoliberal capitalist policies that result in a centralization of wealth and power in the hands of a few by dispossessing the public and private entities of their wealth or land. Such policies are visible in many western nations from the 1970s and to the present day. Harvey argues these policies are guided mainly by four practices:
privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
,
financialization Financialization (or financialisation in British English) is a term sometimes used to describe the development of financial capitalism during the period from 1980 to present, in which debt-to-equity ratios increased and financial services acco ...
, management and manipulation of crises, and state redistributions.


Practices


Privatization

Privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
and
commodification Within a capitalist economic system, commodification is the transformation of things such as goods, services, ideas, nature, personal information, people or animals into objects of trade or commodities.For animals"United Nations Commodity Trad ...
of public assets have been among the most criticized and disputed aspects of
neoliberalism Neoliberalism (also neo-liberalism) is a term used to signify the late 20th century political reappearance of 19th-century ideas associated with free-market capitalism after it fell into decline following the Second World War. A prominent fa ...
. Summed up, they could be characterized by the process of transferring
property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
from public ownership to private ownership. According to
Marxist theory Marxist philosophy or Marxist theory are works in philosophy that are strongly influenced by Karl Marx's materialist approach to theory, or works written by Marxists. Marxist philosophy may be broadly divided into Western Marxism, which drew fro ...
, this serves the interests of the
capitalist class The bourgeoisie ( , ) is a social class, equivalent to the middle or upper middle class. They are distinguished from, and traditionally contrasted with, the proletariat by their affluence, and their great cultural and financial capital. They ...
, or
bourgeoisie The bourgeoisie ( , ) is a social class, equivalent to the middle or upper middle class. They are distinguished from, and traditionally contrasted with, the proletariat by their affluence, and their great cultural and financial capital. They ...
, as it moves power from the nation's governments to private parties. At the same time, privatization generates a means for profit for the capitalist class; after a transaction they can then sell or rent to the public what used to be commonly owned, or use it as
capital Capital may refer to: Common uses * Capital city, a municipality of primary status ** List of national capital cities * Capital letter, an upper-case letter Economics and social sciences * Capital (economics), the durable produced goods used f ...
through the capitalist
mode of production In the Marxist theory of historical materialism, a mode of production (German: ''Produktionsweise'', "the way of producing") is a specific combination of the: * Productive forces: these include human labour power and means of production (tools ...
to generate more capital.


Financialization

The wave of financialization that set in the 1980s is facilitated by governmental deregulation which has made the financial system one of the main centers of redistributive activity. Stock promotions,
Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...
s, structured
asset In financial accountancy, financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value ...
destruction through
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
,
asset stripping Asset stripping is a term used to refer to the practice of selling off a company's assets in order to improve returns for equity investors. In many cases where the term is used, a financial investor, referred to as a 'corporate raider', takes cont ...
through
mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
, dispossession of assets (raiding of pension funds and their decimation by stock and corporate collapses) by credit and stock manipulations, are, according to Harvey, central features of the post-1970s capitalist financial system. That aspect relies entirely on the fact that the quantity of money in circulation and therefore demand levels and price levels are controlled by the boards of directors of privately owned banks. Those boards of directors are also on boards of corporations and any number of other legal vehicles who are also profiting from asset price swings. At the heart of accumulation by dispossession is the private control of the quantity of money supply that can be manipulated for private gain, which includes creating unemployment or restive conditions in the population. This process is well documented in English history as far back as prior to the founding of the Bank of England and before that in the Netherlands. The process works well with or without a central bank and with or without gold backing. The details are also manipulated from time to time as needed to satisfy popular rage or apathy.


Management and manipulation of crises

By creating and manipulating
crises A crisis ( : crises; : critical) is either any event or period that will (or might) lead to an unstable and dangerous situation affecting an individual, group, or all of society. Crises are negative changes in the human or environmental affair ...
, such as by suddenly raising
interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
s, poorer nations can be forced into
bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
, and agreeing to such deals like that of the
structural adjustment programs Structural adjustment programs (SAPs) consist of loans (structural adjustment loans; SALs) provided by the International Monetary Fund (IMF) and the World Bank (WB) to countries that experience economic crises. Their purpose is to adjust the coun ...
can yield more damages to those nations. Harvey reasoned that this is authorized by parties such as the
U.S. Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...
,
World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
and the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
.


State redistributions

The neoliberal nation-state is one of the most important agents of redistributive policies. Even when privatization or commodification appear to be profitable to the lower class, in the long run it can affect the economy negatively. The state seeks redistributions through a variety of things, like changing the tax code to profit returns on investment rather than incomes and wages (of the lower classes).


Examples

Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013) was Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of the Conservative Party from 1975 to 1990. S ...
's program for the privatization of
social housing Public housing is a form of housing tenure in which the property is usually owned by a government authority, either central or local. Although the common goal of public housing is to provide affordable housing, the details, terminology, def ...
in Britain was initially seen as beneficial for the lower classes which could now move from rental to ownership at a relatively low cost, gain control over assets and increase their
wealth Wealth is the abundance of Value (economics), valuable financial assets or property, physical possessions which can be converted into a form that can be used for financial transaction, transactions. This includes the core meaning as held in the ...
. However, housing speculation took over following the transfers (particularly in the prime central locations), and low-income populations were forced out to the periphery. Ultimately, the new homeowners were also borrowers and paid portions of their yearly income as interest on long-term mortgages, effectively transferring a portion of their wealth to the owners of banks with licenses to create debt money from fractional reserves. Thatcher's council privatization scheme increased the potential number of borrowers in the UK by up to 20% of UK residents who lived in council housing at the end of the 1970s. Contemporary examples include attempts to deprive people of land in places like
Nandigram Nandigram is a census town in the Nandigram I Community Development Block of the Haldia subdivision in the Purba Medinipur district of the Indian state of West Bengal. In 2007, the West Bengal government allowed the Salim Group to set up a che ...
in
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and
eMacambini eMacambini is a rural area in the KwaZulu-Natal province of South Africa which is mostly populated by members of the Macambini clan. It is near Mandeni on the Zululand coast, just north of Durban and close to the new King Shaka International Airp ...
in
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
. Privatization is the process of transferring public assets from the state to the private companies. Productive assets include natural resources, such as earth, forest, water, and air. Such are assets that states have used to hold in trust for the people it represents. To privatize them away and sell them as stock to private companies is what Harvey calls accumulation by dispossession. State redistributions can be in the form of contracts given to power groups: for large infrastructures, services paid by the state and carried out by private enterprise, defense developments, research projects. One would have to find out if those contracts serve public good in a fair way or if they sustain a power structure. Also, the granting of licenses for all sorts of state sanctioned activities can turn out as unfair wealth distribution. Another important redistribution channel is by State supported financing of private enterprise activities.


Relation to Marxism

Harvey links these practices to what
Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, economist, historian, sociologist, political theorist, journalist, critic of political economy, and socialist revolutionary. His best-known titles are the 1848 ...
called original or
primitive accumulation In Marxian economics and preceding theories,Perelman, p. 25 (ch. 2) the problem of primitive accumulation (also called previous accumulation, original accumulation) of capital concerns the origin of capital, and therefore of how class distinct ...
, and ties these to examples from the real world. He therefore draws on the theory of ongoing
primitive accumulation In Marxian economics and preceding theories,Perelman, p. 25 (ch. 2) the problem of primitive accumulation (also called previous accumulation, original accumulation) of capital concerns the origin of capital, and therefore of how class distinct ...
by
Rosa Luxemburg Rosa Luxemburg (; ; pl, Róża Luksemburg or ; 5 March 1871 – 15 January 1919) was a Polish and naturalised-German revolutionary socialist, Marxist philosopher and anti-war activist. Successively, she was a member of the Proletariat party, ...
as laid out in
The Accumulation of Capital ''The Accumulation of Capital'' (full title: ''The Accumulation of Capital: A Contribution to an Economic Explanation of Imperialism'', ''Die Akkumulation des Kapitals: Ein Beitrag zur ökonomischen Erklärung des Imperialismus'') is the princip ...
. The neoliberal
modernity Modernity, a topic in the humanities and social sciences, is both a historical period (the modern era) and the ensemble of particular socio-cultural norm (social), norms, attitudes and practices that arose in the wake of the Renaissancein the " ...
is, according to Harvey, a modernity in which dispossession plays a large role and in which the capital class is gaining power at the expense of the labour class.


Contemporary movements against accumulation by dispossession

*
Abahlali baseMjondolo Abahlali baseMjondolo (AbM, , in English: "the residents of the shacks") is a socialist shack dwellers' movement in South Africa which organises land occupations, builds communes
in
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
* The
Bhumi Uchhed Pratirodh Committee Bhumi Uchhed Pratirodh Committee ('Committee against Land Evictions') was an organisation in West Bengal, India, formed to oppose the set-up of a Special Economic Zone (SEZ) in the rural area of Nandigram. It formed an important role in resisting ...
in
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
* The
EZLN The Zapatista Army of National Liberation (, EZLN), often referred to as the Zapatistas (Mexican ), is a far-left political and militant group that controls a substantial amount of territory in Chiapas, the southernmost state of Mexico. Since ...
in
Mexico Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
*
Fanmi Lavalas Fanmi Lavalas ( en, Lavalas Family, Lavalas is Haitian Creole for ''flood''), is a social-democratic political party in Haiti. Its leader is former Haitian President Jean-Bertrand Aristide. It has been a powerful force in Haitian politics since 1 ...
in Haiti * The
Homeless Workers' Movement The Homeless Workers Movement ( pt, Movimento dos Trabalhadores Sem Teto. MTST) is a social movement in Brazil. It originated from the Movimento dos Trabalhadores Rurais Sem Terra ( en, Landless Rural Workers' Movement). Although the MTST can ...
in
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
* The
Landless Peoples Movement The Landless People's Movement was an independent social movement in South Africa. It consisted of rural people and people living in shack settlements in cities. The Landless People's Movement boycotted parliamentary elections and had a histor ...
in South Africa * The
Landless Workers' Movement Landless Workers' Movement ( pt, Movimento dos Trabalhadores Rurais Sem Terra, MST) is a social movement in Brazil, inspired by Marxism, generally regarded as one of the largest in Latin America with an estimated informal membership of 1.5 millio ...
in Brazil *
Movement for Justice en el Barrio Movement for Justice in El Barrio is a community organization based in East Harlem, New York City that is a reaction to, and organizes against, gentrification in the neighborhood. Organisational profile The Movement defines itself as follows: ...
in
the United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
*
Narmada Bachao Andolan ''Narmada Bachao Andolan'' (NBA) is an Indian social movement spearheaded by native tribals ('' adivasis''), farmers, environmentalists and human rights activists against a number of large dam projects across the Narmada River, which flow ...
in India * The
Western Cape Anti-Eviction Campaign The Western Cape Anti-Eviction Campaign was a non-racial popular movement made up of poor and oppressed communities in Cape Town, South Africa.
in South Africa *
Occupy Homes Occupy Homes or Occupy Our Homes is part of the Occupy movement which attempts to prevent the foreclosure of people's homes. Protesters delay foreclosures by camping out on the foreclosed property. They also stage protests at the banks responsib ...
in the United States *
Take Back the Land Take Back the Land is an American organization based in Miami, Florida, devoted to blocking evictions, and rehousing homeless people in foreclosed houses. Take Back the Land was formed in October 2006 to build the Umoja Village shantytown on ...
in the United States


See also

*
Capital accumulation Capital accumulation is the dynamic that motivates the pursuit of profit, involving the investment of money or any financial asset with the goal of increasing the initial monetary value of said asset as a financial return whether in the form o ...
*
Common land Common land is land owned by a person or collectively by a number of persons, over which other persons have certain common rights, such as to allow their livestock to graze upon it, to collect Wood fuel, wood, or to cut turf for fuel. A person ...
*
Primitive accumulation of capital In Marxian economics and preceding theories,Perelman, p. 25 (ch. 2) the problem of primitive accumulation (also called previous accumulation, original accumulation) of capital concerns the origin of capital, and therefore of how class distinctio ...
*
Property is theft! "Property is theft!" (french: La propriété, c'est le vol!) is a slogan coined by French anarchist Pierre-Joseph Proudhon in his 1840 book ''What Is Property? or, An Inquiry into the Principle of Right and of Government''. Overview By "pro ...
* Socialist accumulation * The internal contradictions of capital accumulation *
Wage slavery Wage slavery or slave wages refers to a person's dependence on wages (or a salary) for their livelihood, especially when wages are low, treatment and conditions are poor, and there are few chances of upward mobility. The term is often used ...


References


Further reading

* * Harvey, D. 2004
The 'new' imperialism: accumulation by dispossession
''Socialist Register'' 40: 63-87. *
David Harvey David W. Harvey (born 31 October 1935) is a British-born Marxist economic geographer, podcaster and Distinguished Professor of anthropology and geography at the Graduate Center of the City University of New York (CUNY). He received his P ...

Reading Marx's Capital

Reading Marx’s Capital – Class 12, Chapters 26-33, The Secret of Primitive Accumulation
(video lecture)
The Nation-State, Core and Periphery: A Brief sketch of Imperialism in the 20th century.
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