A changing world: the transformations that have placed us in today's dilemmas

The second panel of the IV Dilemmas of Humanity Conference, which will run until Thursday April 10, focused on the idea that the world is living in a period of structural transformation, which stems from crises in the global capitalist system. In this context, existing global challenges are intensifying, including armed conflicts, food insecurity, socio-economic disparities, and extreme environmental changes.

Overcoming these problems requires international cooperation strategies and coordinated efforts between nations and multilateral organizations. The answers to these questions will therefore define the course of global development in the coming decades. The panel was moderated by Leda Paulani, an economist and professor at FEA-USP, who works in political economy and development. Paulani brought some points to the discussion of contemporary challenges related to socio-economic crises, capitalism, finance and public policies.

Directions for Latin America

The first panelist to present was Jeffrey Sachs, economist and professor at Columbia University, who sent a video with his thoughts on the debate. Sachs specializes in sustainable development and economic policy and began by highlighting the current moment and its importance for the world economy, which implies both a new geopolitics and a “multipolar” economy.

“China is, of course, a leading driver of the world economy, a great innovator at the forefront of cutting-edge technologies. India is continuing rapid economic growth, it is becoming an economic superpower…I believe that Africa, the poorest region of the world, is going to have a kick off to decades of rapid growth and rapid population growth, meaning that Africa is going to play a much larger role in the world economy in the decades ahead,” said Sachs, completing with an analysis of Latin America. “The paradox of Latin America, I don't have to tell you, it’s a region of extraordinary human talents, extraordinary cultural adept, and extraordinary resources, the human, the physical, the environmental, the cultural resources…[but, it] is clearly solidly stuck right now in a middle-income status, where it produces a wide range of goods, primary commodities and manufactured goods, but it has not taken the dynamic steps forward in technological advancement, and in other areas, infrastructure and human capital, research development investments,” essential factors for a more dynamic economic transformation, such as the one desired for Brazil and the entire region.

“We need…higher investment rates, and that means, in part, governments not constrained by traditional measures of debt and finance, because if you separate a capital budget and a current budget, you can go for a much larger capital outlays and capital outlays in R&D and in physical infrastructure in natural capital and in building the bio economy, in making sure that Brazil's bio fuels are the aviation fuels of the future, for our zero-carbon world to come, and on and on.”

With regard to Europe, Sachs says that there is uncertainty about its ability to reorganize due to the current scenario of confusion, aggravated by US protectionism, while Russia is seen as a future major global economic power. 

Sachs concluded by also bringing up regional integration as an important component for Latin America and the Caribbean, something he still considers insufficient. “The region needs to come together and integrate in infrastructure, politics, finance and geopolitics - to negotiate trade agreements or prevent powers from threatening the sovereignty of countries in the region. You understand my perspective.”

Feminist economics

Magdalena León, an Ecuadorian economist and researcher specializing in feminist economics and alternative development, discussed humanity's dilemmas from a perspective of structural inequalities, sustainability and community economies, with allusions to “historical times” or “the end of humanity as we know it”.

“I bring here, from feminist and alternative economies, reflections for an agenda for the present and the future. Transformations arise from a synthesis between theory and reality. We live in fast-paced times, but also in times of long struggles, with the challenge of finding alternatives that are born out of resistance, criticism and, above all, concrete realities.”

León presents feminist economics and its fundamental aspects of reinterpreting economic reality, understanding it not just as a system of production and exchange, but as a broad set of social relations, ways of life and both economic and social values. This implies an integral vision of the economy that helps us look back and recognize the transformative power of existing practices, such as peasant, popular and care economies, according to León.

“It's urgent to talk about an economy for life, not just because capital is destroying it, but because we need to confront the unavoidable: the imposition of a total market. We need to understand the mechanisms that commodify life - not just as a business on basic needs, but as a reconfiguration of social relations, where the logic of the market dominates even human bonds.”

She ended her speech by addressing the advance of the ultra-right as a legacy of neoliberalism, which has consolidated market domination, the plundering of natural resources and the formation of alienated subjectivities. She criticized what she calls the “simplistic” narrative - which blames only progressive governments - and instead advocated a reorganization of work and a return to planning with an integral vision.

“Humanity is made up of life and work relationships. We need to reinterpret the present and the past. The ethics of care and solidarity is what has allowed us to get this far. Today, the economy operates according to the logic of war - destructive and terminal. But there are alternative experiences, however small, that can illuminate the future.”

The division of labor and humanity

When progressive movements take power, they are faced with a historic dilemma: how to implement profound changes within structures inherited from neoliberalism? Recent experience shows that political will is not enough - a new theoretical and instrumental framework for development in the 21st century is needed, according to Vijay Prashad. The historian, writer and director of the Tricontinental: Institute for Social Research ended the panel with a reflection on imperialism, decolonization and alternatives to neoliberal capitalism.

“As Marxists, we revisit chapter 32 of Capital, which deals with the socialization of labor - a central concept distinct from the 'division of labor'. While the latter is limited to factory organization, socialization operates on a global scale: it requires a world market, the integration of diverse inputs and the aggregation of resources and skills in a planetary 'assembly line', towards human liberation.”

Prashad highlights research by the Tricontinental: Institute, which structures the socialization of work into five fundamental and measurable pillars: circulating capital (intermediate goods), fixed capital (capitalist formation), world market, skilled workers and R&D. These elements reveal how contemporary capitalism organizes production on a global scale, offering insights for progressive governments seeking alternatives to the neoliberal model. The analysis of these pillars not only unravels the complexity of the globalized economy, but also points to the contradictions that can be harnessed in the construction of emancipatory projects, especially in a context where productive forces are advancing much faster than the social relations of production.

Currently, according to Prashad, progressive governments face immediate pitfalls. “When looking for funding, they turn to the IMF, which doesn't offer capital for development - it just imposes adjustments to satisfy creditors [...]. IMF economists repeat failed formulas such as attracting FDI, but data from the World Investment Report shows that FDI has migrated from industry to services,” while net fixed capital formation shows a higher correlation with the growth rate.

He also points out that the research shows that the electoral process today is opposed to the development process. “We are discovering, curiously, that electoral cycles run counter to development needs. They pressure governments to prioritize immediate spending, when what transforms economies are long-term investments.”

Finally, Prashad reinforces the relevance of regionalism, emphasizing Brazil's remarkable but problematic low integration with its neighbors in South America, and stresses that the structures of public administration represent both obstacles and opportunities for transformative policies. “The culture of society needs to change. People don't learn administrative efficiency, document management or public service. We don't cultivate values such as technical competence and respect for citizens.”

There is no capitalism without racism

Mandla Radebe, a South African activist and political analyst, drew a parallel between the structures of apartheid and contemporary political dynamics. He demonstrated how the remnants of Apartheid, colonialism and imperialism still shape political dynamics and argued that in order to understand phenomena such as the Trump administration, it is necessary to revisit the legacy of Apartheid and analyse how structural racism has been institutionalized throughout history.

From this South African perspective, Radebe explained how racism, xenophobia, homophobia and ethno-nationalism persist, illustrating with a recent example: “A candidate has come forward with the proposal to cut off oxygen in hospitals that cater for Zimbabwean migrants. The rise of the extreme right coincides with the rise of xenophobia - activists invade hospitals to persecute migrant workers.”

In this context, Radebe analyzed post-Apartheid South Africa, criticizing what he called “the ANC's inability to promote effective integration, opting instead to create a small black corporate bourgeoisie rather than structural economic transformations.” To resolve the national question, he advocated the need to confront the mutations of capitalism, since racial and class oppression remain intertwined.

“Our politics are still marked by ethnolinguistic divisions and growing ethno-nationalism. We suffer double oppression: racial and class. While politicians use black workers as scapegoats, former businessmen in power blame migrants for the system's failures. 'Urban renewal' projects expel the poor from economic centers. Racism and the national question are inseparable from capitalist exploitation - black people have been oppressed as a race and as a class.”

On the relationship between racism and capitalism, Radebe was emphatic: “They are intrinsically linked. Racism is not isolated, but a product of the systemic exploitation of capitalism, which is fundamental to colonialism and slavery. [...] South Africa will continue as a bastion of international solidarity, confronting Israel and others, because this solidarity has always been our self-defense - our liberation was won with it.”