What Pressure Produces: The Generative Aspects of Pressure amidst Urban Displacement in Dakar

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Figure 1: The old terminus building in Dakar, known simply as “La Gare”

During my early days of fieldwork in the old city centre of Dakar, Senegal, I was sitting with the trader Fatim in her tiny market stall under a tattered, weather-worn parasol. Fatim watched over her goods that were balanced on top of some old, repurposed metal drums. The rusty tracks of the former Dakar-Niger railway line stretched out on the ground behind us, forming the backdrop to this small outdoor market. A few dozen other rickety stalls were lined up along the old platform that led to the abandoned terminus building known simply as “La Gare” (Figure 1). Fatim thrust her arm out to indicate the space around her and exclaimed, ‘Often, when people come here, they look around and say, “There is nothing here! …Some people think the market at the Terminus (Marché de la Gare) doesn’t exist anymore, so they don’t come’.

The Terminus (La Gare) was the last station at the end of the Dakar-Niger railway line. The line had formerly connected the landlocked Malian capital, Bamako, to the Senegalese capital on the Atlantic coast. During the first decade of decolonisation a thriving Malian wholesale and retail market – le Marché de la Gare – had emerged at the Dakar Terminus. When I arrived in Dakar in 2013 to conduct fieldwork, however, the passenger train, on which the Malian shuttle traders supplying the market had travelled, was no longer running; and the flourishing Malian market at the Terminus no longer existed. In 2003, under pressure from the World Bank, the Malian and Senegalese governments had privatized the formerly State-owned rail network. In 2009, the Senegalese passenger train running between the Malian border and Dakar was discontinued. In the same year, the Malian market at the Dakar terminus was bulldozed by Senegalese authorities, supposedly to make way for “The Seven Wonders of Dakar” (, accessed 7th of June 2023) – a prestigious, but as yet unfinished, construction project.

In this blog post I explore how the traders evicted from the Terminus had responded to persistent uncertainty and economic pressure following the demolition of their market. Rapid and unequal urban developments are occurring across the world, and particularly in the fast-growing cities of Africa. Such developments lead to disruption, uprooting and disorientation, creating immense economic and psychological pressures on urban traders whose livelihoods depend on working in a specific location in the city and accessing certain infrastructures and networks in that space, to connect with suppliers, customers, and middlemen. The following analysis explores what is produced by these pressures – not in a naively optimistic sense of “good things emerging” from pressure, but in a temporal sense of understanding the long-term outcomes produced by pressure. Specifically, I argue that the economic uncertainty and sense of disorientation and uprootedness associated with eviction from the Dakar Terminus had led to a kind of urban diasporic formation among the displaced traders. The analysis thus contributes a temporal perspective on pressure, showing what urban dwellers’ responses to pressure may generate in the longer term.

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De-dollarisation and Internationalisation of Other Currencies: Geopolitics and Implications for Dollar Diplomacy

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By Sangita Gazi and Christabel Randolph

, International Monetary Fund (IMF) states that ‘[t]he dollar’s share of global foreign-exchange reserves fell below 59 percent in the final quarter of last year, extending a two-decade decline’. However, surprisingly, the decline in the dollar is not associated with the ‘increase in the shares of the pound sterling, yen, euro, and other long-standing reserve currencies.’ Instead, the shift in the dollar’s share in the reserve currency system went in two directions—a quarter into the Chinese renminbi and three-quarters into the currencies of smaller countries that have historically played a limited role as reserve currencies. This piece examines the shifts underlying this trend with a focus on increased regional alliances in trade and payment systems technology. We conclude with forecasts and implications for a more multipolar monetary order and ‘dollar diplomacy.’

Since the onset of the Covid-19 pandemic, geopolitical tensions and economic stagnation have led to fragmentation in cross-border trade and payment systems. The ongoing Ukraine-Russia conflict and international sanctions imposed by the Western economies have also contributed to this situation by causing disruptions for countries with trade relationships with Russia, particularly for essential commodities like fuel, grain, and oilseed. Moreover, many countries are running low on U.S. dollar reserves amidst inflation, prompting them to consider alternative currencies for cross-border trade settlements. This is further exacerbated by the aggressive rate hikes by the Federal Reserve in an attempt to contain domestic inflation within the U.S. The historical correlation between the U.S. dollar and commodity prices has been disrupted for the first time. As a result, evidence suggests a degree of regional fragmentation in trade-related activities and the use of alternative currencies, leading to a shift away from the U.S. dollar as the primary currency for international trade. For instance, in March 2023, the yuan was the most widely used global currency, surpassing the U.S. dollar and euro.

Further, central banks from emerging markets and developing economies seek to diversify their foreign currency reserve composition. The shift began in April 2022, after key Russian banks were removed from SWIFT following Russia’s invasion of Ukraine. China increasingly uses the yuan to buy Russian commodities, such as oil, coal, and metals, settling their bilateral trade with Russia in Chinese currency instead of dollars. In a similar effort, India has made several initiatives to create bilateral trade relationships with countries like Bangladesh, the United Arab Emirates, and Malaysia to internationalize the rupee and use it to settle cross-border trades. This trend toward exploring alternative currencies may affect the global financial landscape. Still, its impact about newer currencies’ volatility and regulatory systems.

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Review:* Special issue of Africa Development by Post-Colonialisms Today**

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A new calendar year ushers in the usual array of tropes on Africa. They include why the continent is failing, what it should be doing better and why it has so much resilience in dealing with its own frailty. Overwhelmingly, Western institutions (NGOs, credit rating agencies, etc.) repeat tired mantras of the international ?nancial institutions, ignoring the insights of African scholar activists and the historical backdrop to the continent’s contemporary crises. Neglect of such analysis leads to the failure to understand why and how different African countries are in the mess that they are and why the mess has structural continuities and conjunctural discontinuities. The antidote to Western-centric analysis is the superb collection of essays in a special issue of Africa Development, a journal of the Council for the Development of Social Science Research in Africa (CODESRIA), which emerged from the Post-Colonialisms Today project. The range and insight of the collection is difficult to capture in a short review, but there are two continuous themes among contributors: the importance of revisiting the historical past and the signi?cance of sovereignty, or the absence of it.

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Financial Statecraft and its Limits in the Semi-Periphery

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Over the past decade, two, intertwined research agendas on (IFS) and (SF) have proposed to identify how an increasingly finance-dominated global capitalism incorporates the (Semi-)Peripheries.

The IFS research agenda recognizes that a “subordinate” national currency comes with a risk premium increasing the costs of financing public debt – in other words, the current, US dollar-based currency hierarchy acts as a structural fiscal constraint in the Global South, limiting the scope for badly needed public investments. Foreign capital – in the form of foreign currency-denominated sovereign and private debt-, foreign aid, and foreign direct investment – is then to this artificial and unfair developmental constraint.

The SF agenda examines how this straightjacket on fiscal space has been further compounded with the liberalization of global capital mobility over the past forty years, diffusing credit-based accumulation strategies from the Core to the Peripheries: from socially and environmentally vital public goods and transformative industrial policies towards developmentally regressive strategies of accumulation driven by speculation and asset-price inflation.

Programmatic visions for liberating (semi-) peripheral economies from the dual constraints of a national fiscal space suffocated by the global currency hierarchy and globally mobile capital flows which deepen financialization are underdeveloped. Two scales of action are plausible: At the international level, , but it remains uncertain what forms of international financial solidarity and collaboration, if any, will materialize under its aegis. The national level comprises an alternative scale as the State continues to be perceived as the most likely candidate for ringfencing domestic social, environmental, and developmental objectives from the pressures of global capital mobility and the structural constraints of the global currency hierarchy.

In a with P?nar E. D?nmez, we study the politics governing the management of money in Hungary and Turkey, two semi-peripheral economies where the executive has built a vast array of direct and indirect tools to intervene in monetary policy, retail banking and credit allocation to manage financial subordination.

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Combining dependency theory and the regulation school: Understanding economic rents in Burkina Faso

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Dependency theory is experiencing some kind of comeback and has been discussed at length on the 51本色 blog. However, one criticism that often comes up when researchers work on the phenomenon of dependency is the fact that the separation between the spheres of periphery and centre may be too simple, insofar as the working class is also exploited in the countries of the centre, and the elite also benefits from such a system in the periphery. While some strands of dependency theory may provide important angles for analysis of trade between the Global North and South, such analysis also risks pitting development in the center against underdevelopment in the periphery. It is worth noting, however, that many dependency theorists did not think of the world in such binary terms, but rather centered class analysis in their frameworks.

In our recent work, we approach the problem of dependence slightly differently in an attempt to nuance our analysis. Dependence is linked to the country’s international insertion, , and is reflected in and unfavourable terms of trade. However, ‘dependent’ countries have followed varied trajectories, which need to be analysed in their context, as dependency is not black and white. Let’s zoom in on West Africa. There, dependency is mainly based on . A rent is defined as obtaining income without contributing to the production of additional goods and services. In a , we have sought to understand a very specific historical case, representing an important rentier economy that was also well integrated into the global economy. We have sought to combine dependency and to understand the stability of such a rentier economy. Let’s explore the economic history of Burkina Faso.

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The South Asia to Gulf Migration Governance Complex – Edited by Crystal A. Ennis and Nicolas Blarel: Review

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Migration Governance: Moving Away from “Uncle Always Knows”

Almost everyone on social media has that one Instagram friend who posts bronzed pictures in Santorini, or screenshots of champagne flutes atop the Burj Khalifa, the Dubai skyline looming in the background.  To those internationals for whom travelling on holiday was an annual rite of passage, the pandemic’s travel restrictions resulted in adventures that were inopportunely thwarted. Conversely, to economic migrants everywhere, the implications of banned travel, whether by air, train, or foot, equated directly with the fundamental ability to survive. The scrambles of governments worldwide to gauge appropriate responses to COVID-19 was understandable, inasmuch the magnitude of the event was entirely unprecedented, and the need to contain its spread dire. Yet, one of the largest follies of the pandemic remains undebated: instinctive government responses moved to ban travel without duly considering the global interconnectedness of labour markets in the modern age. Belonging to one state but working in another meant that with travel bans, economic migrants were either shackled to their workplaces, away from their families; or held back from gainful employment whilst trapped at home. In most contexts, migrants are to countries like an unknown opening band at a music concert: the audience does not fundamentally care, and everybody is simply waiting for the headline act. In their origin states, migrant workers often escape the focus of governments who are more concerned with those who remain behind. In the meanwhile, the countries to which they migrate often look at them as charity, despite these workers’ crucial role in economic development. Since they belong to places differently, being of and from multiple geographies at once, migrant workers have shifted typical state-worker relationships to a new realm. What, therefore, does good governance look like for an individual- a migrant– who is from several places at once?

Multiple answers to this question can be gleaned from . As the title suggests, the volume focuses on the South Asia-Gulf migration nexus. There are various considerations that render this book highly topical. First, the movement of people around the world, particularly for employment, has outmoded traditional conceptions of citizenship and a worker’s relationship with a state. This necessitates the re-engineering of these traditional conceptions of citizenship in ways that account for a dynamic and modern global workforce which is constantly on the move. Second, a fitting place to start thinking about the redefinition of worker-state relations is from the lens of workers emigrating from South Asia into the Arab Gulf. These geographies are of particular significance given the staggering volume of South Asian emigrants in the Arab Gulf, with over 80 percent of the region’s labour force being comprised of migrants, as Blarel and Ennis describe in their introduction. Governing this sizeable migrant workforce is what is collectively termed Kafala, a complex set of legal and policy frameworks centred around an employer-oriented visa sponsorship system. For years now, the Kafala system has come under severe criticism from human rights groups for rendering low-wage migrant workers in various conditions of modern day slavery, most recently with the . Further compounding the importance of the South Asia-Gulf nexus is the phenomenon of South-South migration, where the Gulf’s ambitious development projects tend to drive largescale demands for a workforce that can be tailored to expand and contract as per their whimsy (Ennis and Blarel; Hamadah; Walton-Roberts et al). Above all, this volume is timely given the now universal tussle between the need for good governance and sustainable worker livelihoods on the one hand, versus competing pressures for labour market flexibility on the other (Devkota; Babar; Hamadah).

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Authoritarian Neoliberalism and Post-Soviet Currency Boards

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The surge of right-wing populism in East-Central Europe is often portrayed as an unforeseen shift from the earlier post-1989 liberalization path. The “illiberal transformation” narrative underlines stark differences between the policy arsenals that informed democratization and marketization reforms in the early 1990s and those fueling current “.” Yet this framing conceals the analytical maneuver of disconnecting the political sphere from its socioeconomic counterpart, thereby limiting democracy to the former and defining democratic participation based on electoral competition.

It was precisely this separation, which at the dawn of post-communist transformation, tended to align democratization not with leveling erstwhile power and wealth disparities, but with by the lingering elements of Soviet bureaucracy. Conceived in this way, democratization was deemed to be an engine of market reforms. Insofar as much of the “transitology” scholarship operated with a parochial “democracy” versus “authoritarianism” dichotomy, it repeatedly obscured authoritarian tendencies in consolidating democratic systems.

In the recently published article , I argue that the corpus on “authoritarian neoliberalism” is well-positioned to instigate a much-needed departure from this externalization of “political” and “socioeconomic” spheres when revisiting the intricacies of post-communist transformation in general and monetary reforms in the Baltic states in particular.

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Working Overtime or Being Laid Off: The Pressure under Hopelessness among Workers in Chinese Internet Companies

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“I’ve been working until 1:00 am or later, then getting up at 8:00 am to continue working this week, but my mentor still pointed out a lot of problems that need to be reworked. But there’s no space to escape, if I don’t work harder, I would be laid off in the next quarter. I couldn’t imagine if I lost this job, either I had a rich family to rely on or had some indispensable skills. Now there’s massive laid-off everywhere due to the economic downturn, and it would be extremely hard to find another job if I’m being dismissed. The most probable result of my life would be nothing.”
– Linda, a 26-year-old operation specialist in Tiktok, Shanghai

In China’s bustling urban centers, a significant number of young individuals are employed in Internet firms, driven by the desire for a more promising future characterized by secure employment and affordable housing. Linda’s experienced colleagues at Tiktok, who worked diligently like her, underwent a transformation in their lives. Originating as diligent students from rural or small-town backgrounds as Linda, known as “,”(“小镇做题家”) they excelled academically, performing well in entrance exams and securing places in top universities. While they lacked broader perspectives and social networks, they nonetheless successfully transitioned into urban elites with competitive salaries, stock shares and options from China’s most valuable company in the early years, becoming firmly established in first-tier cities.

However, this once cherished aspiration has been shattered due to the end of rapid growth and the impossibility of significant salary advancements. The soaring property prices in China, especially in big cities, make it impractical for most people to purchase an apartment in such a metropolis, diminishing the chances of achieving such an exciting miracle. Returning to their smaller hometowns or cities is a challenging prospect for these individuals, primarily due to the limited Internet-related job opportunities outside major urban hubs such as Beijing and Shanghai. Furthermore, young individuals like Linda, who often belong to the first generation of college graduates in their families, face immense expectations of securing respectable employment and surpassing their parents’ financial achievements. These young people are swashed down by hopelessness.

Overtime pressure still grows under hopelessness. According to Chinese labor law, workers should not work more than eight hours a day or 40 hours a week, and overtime is restricted to 36 hours a month. However, staff in the Internet sector, especially at big tech firms, face unpaid compulsory overtime, . The pervasive in Chinese internet companies is exemplified by the widespread adoption of the (working from 9 am to 9 pm, six days a week) and the (work six days a week, every other week).  Despite the alarming occurrences of sudden due to long working hours, which serve as a warning to society, the common issue of excessive overtime work remains largely unchanged.

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