Green finance has been increasingly presented as being an effective solution to global environmental problems and climate change. However, today’s global financial structures tend to reproduce global inequali-ties and contribute to continued, highly unequal over-use and destruction of the environment, as well as a global ecological crisis. This paper introduces the topic with a specific emphasis on green finance, and provides an over-view of the contributions to this special issue on Global Finance and Socio-Ecological Transformation. We discuss the implications of global green finance and propose a typology that differentiates between neoliberal, reformist and progressive transformative types of green finance. Based on this, we present insights for progressive strategies and policies for financing a socio-ecological transformation towards global sustainable welfare.
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Green Finance, Sustainability, Socio-ecological Transforma-tion, Strategies, Environmental Policies
Green finance is often presented as being essential for sustainability. In the tradition of critical political economy, this paper focuses on (green) finance and its impact on the use of natural resources and the environment. Given the global dimension of many environmental problems and the economic interconnections of the use of global natural resources, the paper takes a global view, focusing in particular on global asymmetries and dependency relation-ships between core and periphery. Against this background, global financial structures and the role of green finance, and their implications, are analysed. However, adopting a regulationist perspective, this paper discusses different forms of green finance, their regulation, and the implications for national devel-opment models and the environment. Neoliberal green finance, reformist green finance and progressive transformative green finance are distinguished. We conclude that neoliberal forms of green finance tend to deepen core-periphery dependencies and to contribute to a highly unequal and growing (over-)use of nature and a transfer of natural resources from the core to the periphery. In part, reformist forms of green finance may change this. However, in order to stop the global, highly uneven over-use of nature, a progressive transformative form of green finance is needed to contribute to a fundamental socio-ecological transformation that ends the unequal over-use of natural resources.
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Green finance, sustainability, critical political economy, regulation theory, global development
It is claimed that financial innovation meets the demanded changes in economic investment towards environmental sustainability and a transition towards low-carbon economies. While the underlying narrative for the proposed transition of economic structures highlights the necessity to search for an economic alternative to the profit-seeking resource-based produc-tion mode advocated by mainstream neoliberal economists, it becomes evident that the suggested tools of financial innovation to promote environmentally friendly investment, namely green finance, further promote neoliberal market forces to a large extent. After critically evaluating tools of green finance, this paper discusses the possibilities of strong institutional embeddedness of new green finance tools in order to mitigate the former’s negative effects.
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Financial Innovation, macroeconomic stability, sustaina-bility, green finance
China’s demand for commodities and its role as an investor and creditor in the global periphery are closely connected. In the past two decades, China’s external policies have perpetuated commodity-based develop-ment models in the Global South, which are linked with negative socio-ecolog-ical effects. In this paper, we assess China’s engagement in Sub-Saharan Africa and Latin America, by analysing China’s outward financial flows. We show that these flows reflect China’s growth model, but also vary by destination, given the regionally prevailing development strategies. We argue that whether new Chinese policies for more resource efficiency will trigger more sustainable development models in these regions, depends on these regions’ existing rela-tionships and experiences with China. However, the risks for continued extrac-tivism remain high.
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Extractivism, China, Latin America, Sub-Saharan Africa, commodity-based development models, capital flows
The green economy’s general global agenda is to attract invest-ments into renewable energy. Within this setting, transnational capitalist classes are one primary driver as well as being key investors. The article investi-gates how transnational classes shape green investments, particularly in renew-able energy in Africa. This is demonstrated by tracing the ownership struc-tures and links to transnational capital classes and private equity through one case within the South African Renewable energy procurement programme (REI4P). The article, thus, addresses the lack of consideration of ecology and class issues in critical International Political Economy, arguing that colonial relationships are perpetuated within the green economy and finance.
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International Political Economy, green economy, green finance, renewable energy, South Africa
The Humanitarian-Development Nexus and the Jordan Compact: Tensions and Trajectories in Global Capitalism Abstract The humanitarian-development nexus (HDN) frames protracted refugee situations as win-win development opportunities, building on dominant tropes like sustainable development and global risk manage-ment. Focusing on the Jordan Compact as part of the HDN, we question for whom it presents opportunities, highlighting its politics and tensions. We argue that the HDN and Jordan Compact are not win-win strategies whereby refu-gees and host countries benefit equally, but rather fail forward strategies with longstanding material roots in the power relations and paradoxes of global capitalism. Moreover, the neoliberal fail forward practices both frameworks embody legitimate themselves by depoliticising capitalism’s underlying contra-dictions. We highlight how the HDN, similar to its undergirding tropes, is a political project that advances the interests of private actors over those of its intended beneficiaries.
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Abu-Rish, Ziad (2012): The Political Status Quo, Economic Development, and Protests in Jordan. In: Haddad, Bassam/Bsheer, Rosie/Abu-Rish, Ziad (eds.): The Dawn of the Arab Uprisings: End of an Old Order? London: Pluto Press, 237-247. https://doi.org/10.2307/j.ctt183p77h.41
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Al-Mahaidi, Ala (2020): Securing Economic Livelihoods for Syrian Refugees: the Case for a Human Rights-Based Approach to the Jordan Compact. In: The International Journal of Human Rights. https://doi.org/10.1080/13642987.2020.1763314
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The Humanitarian-Development Nexus and the Jordan CompactInterview (2020): Personal Interview with Multilateral Development Bank Officials, 13.2.2020.
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Humanitarian-Development Nexus, Jordan Compact, fail forward neoliberalism, global capitalism, development finance
Transformative co-educational processes through multi-stakeholder collaboration require methods by means of which differences between participating actors can contribute to building common grounds. Transformative Learning Tours is a method that promotes movement in time and space, creating common grounds through the constant dialogue between collective reflection and practice, or praxis. This method of exchange of experiences is based on a peasant-to-peasant approach and the concept of movement as a means to strengthen human (and non-human) connections, by balancing the senses in the learning process. Inspired by the agroecological caravans in Brazil, the tours integrate art, music, and envisioning as important elements of action research. During this process, peasants and other community members become knowledge experts, opening spaces for more horizontal dialogues. Participants critically read the past and collectively dream about a future. This article describes the Transformative Learning Tours method and how it in corporates Freirean principles. We reflect upon the scope and limitations of this method in the specific context of the Forest Stewards Network in Xalapa, Mexico. We share the method’s different stages, principles and conditions, as well as the type of facilitation and context that have enhanced this process, while positioning movement as an epistemic approach.
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