BUEN VIVIR and Challenges
BUEN VIVIR and Challenges
BUEN VIVIR and Challenges
Edgar Záyago Lau is professor and researcher of the Academic Unit in Development
Studies, Universidad Autónoma de Zacatecas (UAZ), Mexico, and Co-coordinator
of the Latin American Network of Nanotechnology and Society (ReLANS). His
research areas include the political economy of science, technology and develop-
ment; development theory and public policy. He is also the author and co-author of
more than 60 articles in mainstream academic journals and has co-edited nine books.
Routledge Critical Development Studies
Series Editors:
Henry Veltmeyer
Co-chair of the Critical Development Studies (CDS) network, Research Profes-
sor at Universidad Autónoma de Zacatecas, Mexico, and Professor Emeritus at
Saint Mary’s University, Canada
Paul Bowles
Professor of Economics and International Studies at UNBC, Canada
Elisa van Wayenberge
Lecturer in Economics at SOAS University of London, UK
The global crisis, coming at the end of three decades of uneven capitalist
development and neoliberal globalisation that have devastated the economies
and societies of people across the world, especially in the developing societies
of the global south, cries out for a more critical, proactive approach to the study
of international development. The challenge of creating and disseminating such
an approach, to provide the study of international development with a critical edge,
is the project of a global network of activist development scholars concerned
and engaged in using their research and writings to help effect transformative
social change that might lead to a better world.
This series will provide a forum and outlet for the publication of books in the
broad interdisciplinary field of critical development studies—to generate new know-
ledge that can be used to promote transformative change and alternative development.
The editors of the series welcome the submission of original manuscripts that
focus on issues of concern to the growing worldwide community of activist
scholars in this field.
To submit proposals, please contact the Development Studies Editor, Helena
Hurd ([email protected]).
Postdevelopment in Practice
Alternatives, Economies, Ontologies
Edited by Elise Klein and Carlos Eduardo Morreo
www.routledge.com/Routledge-Critical-Development-Studies/book-series/RCDS
Buen Vivir and the
Challenges to Capitalism
in Latin America
List of illustrationsvii
List of contributorsviii
Introduction 1
HENRY VELTMEYER AND EDGAR ZÁYAGO LAU
PART I
Development in the neoliberal era 29
Index214
Illustrations
Figures
5.1 Exports of aerospace enterprises located in Querétaro 98
5.2 Aerospace industry in Mexico: value added multipliers 101
5.3 Aerospace industry in Mexico: employment multipliers 102
5.4 Software industry: value added and employment multipliers 106
10.1 Disputes between development varieties 204
10.2 Type III disputes 207
Tables
1.1 The structure of Latin American exports, 1990–2011 14
1.2 Latin America: poverty and extreme poverty rates, 2002–2015 18
5.1 Industrial activities at the aerospace hub in Querétaro 99
5.2 Industrial activities in the software industry in Jalisco 104
Maps
5.1 Querétaro’s aerospace enterprises by location 100
5.2 Software enterprises in the state of Jalisco, by industrial class 105
Contributors
A chapter-by-chapter synopsis
The first chapter provides a contextual framework and sets the stage for an ana-
lysis of the forces of change that have swept across the political landscape in
Latin America in recent years. The focus is on the development and resistance
dynamics of these forces of change. The chapter is organised as follows. First, it
reviews the dynamics of what might be understood as the new geoeconomics of
capital in Latin America and the corresponding politics and realities. The aim
here is to provide a theoretical framework for the subsequent analysis and for
the chapters that follow. The chapter then turns to and elaborates on certain
dynamics associated with the advance of resource-seeking ‘extractive’ capital
(productive investments in the extraction of natural resources and the export of
these resources in primary commodity form). At issue in this development
process is the political economy of two types of capitalism, extractive and indus-
trial, with reference to the particular way in which these two forms of
capital(ism) are combined in the current context. The third part of the chapter
provides a brief review of the economic and political dynamics that led to the
emergence of a ‘progressive cycle’ of left-leaning policy regimes—a so-called
‘pink tide’ of regime change. The chapter ends with a brief discussion of the
forces implicated in what appears to be the end of this progressive cycle. The
conclusion is that the answer to this question should be sought and can be found
Introduction 3
in the fundamental contradictions of capitalism and what might be described as
the antinomies of the development process.
The second chapter analyses the dynamics of class struggle and resistance on
the new frontier of extractive capital. In the context of these dynamics some
parts of the rural population in the region have been mobilised in protest against
the advance of extractive capitalism. They have undertaken a variety of col-
lective actions against the destructive operations and negative impacts of large-
scale foreign investments in agroextraction—the acquisition of land and the
extraction of natural resources for export. The chapter analyses the conflict
dynamics of these forces of resistance that have emerged on the frontier of
extractive capital in the rural areas, forces that pit the multinational corporations
in the extractive sector, as well as the governments that have licensed their oper-
ations, against the rural communities that are most directly impacted by these
operations.
The following chapter (3) analyses the development dynamics that have
unfolded in the agricultural sector of the extractive frontier. The focus here is on
the ‘agrarian question’ of the twenty-first century, namely: what is the impact of
the forces of change generated by the capitalist development of agriculture in the
current development context? Until recently and throughout the twentieth
century, the main role of agriculture in the capitalist development process had
been to constitute a proletariat in the form of a wage-labouring working class
and to replenish the industrial labour force in the form of a reserve army of
surplus labour. In the current context of extractive capitalism, however, the role
of agriculture has changed.
The purpose of the chapter is to analyse the development and resistance
dynamics of these forces of change. As for the forces of resistance mobilised in
this development process, forces mobilised by the peasantry and what the World
Bank chooses to call ‘the rural poor’ (the mass of dispossessed and
semiproletarianised rural landless rural workers), they have been mobilised to
protest against the advance of extractive capitalism. The rural poor of peasant
farmers and landless workers in this context have undertaken a variety of col-
lective actions against the destructive operations of large-scale foreign investments
in agroextraction—the acquisition of land, or ‘landgrabbing, and the extraction of
natural resources for the purpose of exporting them in primary commodity form to
maximise profits. The chapter analyses the conflict dynamics of these forces of
resistance, which pit the multinational corporations in the extractive sector, as well
as the governments that have licensed their operations, against the rural com-
munities that are most directly impacted by these operations.
The chapter argues that, in addition to the dynamics of extractive capital, we
need to understand those dynamics associated with the concentration of capital
in the agricultural sector, as well as developments wherein intellectual property
and ownership of patents has become a key component of the imperial(ist)
system of domination under the aegis of neoliberal capitalism.
In Chapter 4 the authors critically engage the Latin American literature on the
politics of developments with a focus on two main strands of political practice
4 Henry Veltmeyer and Edgar Záyago Lau
since the neoliberal turn in the 1980s, but especially after the 1994 Zapatista
insurrection. These two main strands are the autonomists or the ‘social left’ that
has taken form primarily as a complex of nongovernmental organisations that
make up ‘civil society’, and a symbiotic or ‘political left’ that is fundamentally
concerned with electoral politics. The focus of the chapter is on the case of
Mexico, where the left-leaning MORENA (National Regeneration Movement)
party, with Andrés Manuel López Obrador (AMLO) as its presidential can-
didate, won the presidential elections by a landslide in 2018. What is particularly
interesting and highly relevant about López Obrador’s electoral victory is that
Mexico did not participate in the ‘progressive cycle’ of left-leaning regimes formed
in the so-called ‘pink wave’—a cycle that paralleled the primary commodities
cycle of 2002–2012. While Mexico in this case turned towards the left, virtually
all of the regimes that were part of the progressive cycle (particularly Argentina
and Brazil, Bolivia and Ecuador) have succumbed to forces of change mobilised
by the far right, resulting in the restoration of neoliberal austerity measures and
authoritarian politics in the region. In this context, López Obrador’s electoral
victory has revived hopes on the left of another progressive cycle.
At issue in the recent swing of the pendulum politics first to the left and then
to the far right is the most effective strategy for bringing about progressive
change: whether progressive forces would focus on gaining state power ‘from
above’ (via elections) or ‘from below’ (via social movement mobilisation from
within civil society). In this context, the authors argue that those social move-
ments that supported electoral transitions were demobilised or coopted by the
social-assistance policies of the state, while autonomist movements that refused
to engage with the state were mostly marginalised. In effect, both strategies
failed their popular constituencies. The authors conclude that the way forward
for progressive social movements is to engage with the state while staying
mobilised in order for movements to retain their independence from the state
and autonomy from political parties. This, according to the authors is, in fact,
the challenge for MORENA and sympathiser social movements in Mexico: how
can they support each other while advancing in a popular-democratic agenda of
sustainable development?
In Chapter 5 the book turns away from the forces of change associated with
the advance of extractive capital towards the problem of constructing a new
industrial policy in the context of the turn of many countries towards an extrac-
tivist approach to national development. In the context of state-led development
from the 1950 to the 1970s national development was equated with industrialisa-
tion and an endogenous industrial policy was deemed to be an essential drive of
the engine of economic growth. However, the installation in the 1980s of a ‘new
world order’ based on the principles of neoliberal globalisation radically
changed the prospects for further industrial development of countries and
regions on the periphery of the world capitalist system. In the forced compliance
to the rules of the new neoliberal world order, and the dictates of global capital
and the governments and international organisations that advanced these dictates
(integration into the globalisation agenda), these countries were prevented or
Introduction 5
deprived of their capacity to pursue an active independent industrial policy and
become ‘a global manufacturing power’.
This was a turning point in the capitalist development process on the peri-
phery of the system—a turn towards the advance of extractive capital in the
development process. The focus of Chapter 5, which addresses this problematic
is on Mexico, which led the push in the region towards the development of
capitalism and modern industry in the pre-neoliberal era. Most development
thinkers either argue or assume that both extractivism (the extraction of natural
resources) and industrialisation (industrial development) are required conditions
for expanding the forces of production and bringing about a modern form of
capitalist development, or modernisation. The problem, however, is how to
combine industrialism and extractivism in a way that avoids the destructive soci-
oenvironmental impacts of both—a problem that has surfaced and taken form in
the notion of neoextractivism and, according to the authors, in the revival of the
search and efforts to construct a new industrial policy. The problem, they argue,
is that in the context of the new (neoliberal) world order, Mexico, together with
other governments in the region, has been prevented from implementing an
independent and endogenous industrial policy, resulting in the destruction of
forces of production built up over several decades of state-led industrial devel-
opment based on an industrial policy designed to build up domestic industries.
Rather than building up an industrial sector to process the region’s wealth of
natural resources, the neoliberal macroeconomic agenda of the governments
formed within the institutional and policy framework of this agenda favoured
and promoted the advance of extractive capital, leading to an affluence of
resource-seeking extractive investments that reinforced the orientation of the
economies in the region towards a reliance on natural resource extraction and
the export of these resources in primary commodity form, with all of the attendant
contradictions and conflicts discussed in other chapters.
To situate and provide additional context for the discussion of Mexico’s
industrial policy in Chapter 5, it is important to understand that the 1980s pro-
vided a major turning point of developing countries away from a state-led
approach to development based on a strategy of import-substitution industriali-
sation towards ‘reprimarisation’ and an associated return to extractivism as a
development strategy. This turn towards primarisation and extractivism had its
origins in several trends. One was the advance of resource-seeking ‘extractive’
capital (investments in the extraction of natural resources) to meet and satisfy
the strong demand for ‘primary commodities’ on capitalist markets. Another is
the long commodities boom of 2002–14, which spurred the interest of those
governments formed in the search for a more inclusive form of development in
the extraction of natural resources in the region as a source of fiscal resources to
finance their social development (poverty reduction) programs. This concern for
additional fiscal resources led these governments to open up the economy to
foreign investment and provide the bearers of this investment, the large multi-
national corporations in the extractive sector, greater access to long-term contracts,
concessions to explore for oil and gas, and mining licences.
6 Henry Veltmeyer and Edgar Záyago Lau
A third cause was more indirect—the turn against industrial policy in the
region, which opened up political and economic space for extractivism. This
was most evident in Mexico. Its relatively advanced industrial sector was
incorporated into global value chains through the maquiladora program and then
the entry in NAFTA and the subsequent USMCA. The defining characteristic of
the latter were their neoliberal emphasis on ‘free trade’, an economic policy that
would see Mexico compete on a continental and global scale on the basis of its
relatively low labour costs. As noted by the authors of Chapter 5, the emphasis
on ‘horizontal’ and ‘sector neutral’ policies marked a departure from earlier
attempts to build national industries through the use of selective policy interven-
tions. This turn away from industrial policy led to a change in mindset in which
industry was no longer necessarily seen as the growth-facilitating leading sector
of economic development and a policy stance that no longer privileged the
sector. Both of these national level changes enabled extractivism to return as a
viable development strategy. Furthermore, part of the reason for the turn against
industrial policy was its perceived failure; a failure to spur national innovation
and now more difficult within a changing global production system within which
global value chains dominated and developing countries were able to access
only parts of those chains.
Developing countries such as Mexico and Brazil, in this context, could try to
insert themselves into those chains on the basis of their ‘strategic advantages’
but national industrial policies were for a bygone era. The authors challenge this
conventional wisdom by focusing on sub-national policies in the aeronautical
and software industries in Mexico. They argue that while national industrial
policy was abandoned, it lived on in interesting ways at the sub-national level
and with some success. In arguing for this, they present the case for continued
industrial policies as economic development policy instruments.
With Chapter 6 the book turns away from Part I and the dynamics of capital-
ist development towards the problem of constructing a socialist path towards
development, a path fraught with obstacles and failed experiments. The chapter
focuses on the complex and contradictory dynamics of socialist development in
Venezuela—a project designed to bring about the socialism of the twenty-first
century, which is to say, ‘from above’ (with the agency of the state) and ‘from
below’ (with the agency of community-based organisations and institutions).
While the concept of buen vivir (see the discussion in Part II of the book) breaks
with capitalism and rejects it as a system for bringing about an alternative
reality, another world of more inclusive and more sustainable form of national
development, most proposals for alternative development are predicated on one
form or other of capitalism, and seek a more human form of development
achieved by reforming the system, In Venezuela, however, and to some extent in
Bolivia under the presidency of Evo Morales (2006–19), the project of
alternative development referenced or was predicated on socialism—not the
state-led ‘actively existing socialism’ of the twentieth century based on the
agency of the state, but on communalism, a new form of community-based
socialist development.
Introduction 7
In this context, from the year 2000 onwards in Venezuela, popular organisations,
communities and even the government itself advanced various local self-government
initiatives and promoted the formation of worker-managed cooperatives. In
1998, when Chávez was first elected to state power there existed fewer than 800
cooperatives; by August 2005 there were almost 84,000. On the basis of this
development and associated initiatives and experiences in 2005 the Communal
Council was formed in 2005 as a form of self-administration at the neighbour-
hood level; this was followed in 2007 by the construction of the Commune as a
tier of self-government above that. Both of these institutions were formed with
substantive grassroots organisation, although their rapid expansion was undoubt-
edly due to formal support by the state under the project The Socialism of the
21st Century formulated by Hugo Chávez in the context of his reelection in
December 2006 (Chávez, 2007).
In January 2005 at the World Social Forum, Chávez explicitly called for the
reinventing of socialism in a form that was different from what had existed in
the Soviet Union. ‘We must reclaim socialism as a thesis, a project and a path,
but a new type of socialism, a humanist one, which puts humans and not machines
or the state ahead of everything.’ Six months later, Chávez argued the importance
of building a new communal system of production and consumption—in which
there is an exchange of activities determined by communal needs and communal
purposes … not just what Marx described as the ‘cash nexus’ or the profit
motive, the incentive to make money, accumulate capital. ‘We have to help to
create it, from the popular bases, with the participation of the communities,
through the community organisations, the cooperatives, self-management and
different ways to create this system.’
Out of the different experiences and initiatives advanced with reference to this
project, there emerged what Chávez termed ‘the communal state’, which subse-
quently became the political and social project of both the government and the
popular movements in Venezuela. At the base of this state as Chávez understood
and tried to construct it were the communal councils that were identified as the
fundamental cell of Bolivarian socialism. As Chávez declared: ‘All power to the
communal councils’, which would bring about an ‘explosion in communal power’,
designated as the fifth of ‘five motors’ driving the path toward socialism.
The chapter explores the complex dynamics associated with the struggle to
build socialism in the context not only of the powerful forces of internal right-
wing opposition and reaction mobilised by the US state (‘US imperialism’),
but also the project and institution of representative democracy. As the author
observes, the communal councils are constantly engaged in struggle resulting
from a complex relationship of cooperation and conflict with these institu-
tions. The chapter explores the complex dynamics associated with this polit-
ical development. This includes a transition from the notion of a communal
state in the transition towards socialism, a project pushed forward by the gov-
ernment, towards a rank-and-file chavista project of direct democracy based
on communist, anarcho-syndicalist, indigenous and afro-Venezuelan ideas and
experiences.
8 Henry Veltmeyer and Edgar Záyago Lau
With Part II the book turns away from a retrospective analysis of the dynamics
of capitalist development to the dynamics of what might be understood as ‘post-
development’—the challenge of constructing an alternative reality to capitalism,
neoliberalism and extractivism. Chapter 7 in this connection presents the key con-
cepts that informs a critical political economy and social ecology perspective on
the development process unfolding in Latin America, namely, neoextractivism, a
commodity consensus and developmentalist illusion. The chapter also established
several lines of continuity and rupture between the concepts of extractivism and
neoextractivism. Neoextractivism here refers to an analytical category that has a
great descriptive and explanatory power in regard to contemporary developments,
as well as a denunciatory character and strong mobilising power. The author elab-
orates on these developments in the Latin American context. Insofar as the author
alludes to the unsustainable development patterns and asymmetries associated
with the advance of extractive capital in the development process, the chapter
warns of a deepening in the logic of d ispossession and the multiscale problems
that define different dimensions of the current crisis.
With Fernanda Wanderley and colleagues’ contribution in the form of
Chapter 8 the book turns towards the diverse and complex dimensions of the
social and environmental crisis associated with the advance of capitalism in a
period of epochal change. The main point of reference for the authors’ discussion
are the forces of change generated by the latest advances in the capitalist devel-
opment process as well as the COVID-19 pandemic, which has exposed the
fundamental contradictions of the capitalist system and accentuated its propensity
towards crisis. At issue in this crisis that has truly assumed global and even
planetary proportions is the close relationship between, on the one hand, the per-
sistence of social exclusion, poverty and social inequalities, and, on the other
hand, climate change, biodiversity loss and soil, water and air pollution. At the
same time, beyond the life-threatening dimensions of a global health and eco-
nomic crisis the COVID-19 pandemic exposed a fundamental contradiction of
the capitalist development process: economic, social and political inequalities
between and within countries.
A fundamental political truism regarding capitalism is that each phase and
advance in the development process—the capitalist development of the forces of
production—has activated and activates forces of resistance, which in the
current context of a multifaceted global crisis have assumed the form of a global
class struggle, an eco-territorial struggle of indigenous and non-indigenous
communities against the ravages of extractive capitalism, and diverse citizen
mobilisations that are united in the demand for answers to today’s great dilemma:
how to meet the needs of the present without compromising the needs of future
generations in a democratic and social and environmental justice framework.
This chapter articulates the social, environmental and economic outcomes of this
resistance in the Andean highlands of South America and parts of the Amazonian
basin: Bolivia, Colombia, Peru and Ecuador, to be precise.
Why focus on these Andean-Amazonian countries beyond the fact that they share
a wealth of natural resources and a mega-diverse biozone with an exceptional
Introduction 9
environmental heritage? For one thing, despite the enormous development
potential of the reservoir of natural resources shared by these countries, and
several decades of a concerted strategy of extracting this wealth and exporting
these resources in primary commodity form—extractivism, as we understand
it—none of these countries have managed to realise the development potential
of this wealth of natural resources or overcome what some economists have
described as the ‘resource curse’ associated with extractivism. At the same time
both the operations of extractive capital in these countries and the extractivist
strategy and policies implemented by the governments in this subregion—both
those that have opted for a progressive neoextractivist strategy (Bolivia, Ecuador)
and those that continue to hoe the neoliberal policy line (Peru, Colombia)—
generated forces of popular resistance whose mobilisation warrant a closer look
and careful study.
Chapter 9 moves beyond the development and resistance dynamics on the
extractive frontier to expand on a number of issues associated with the concept
of buen vivir, which lies at the heart of radical societal proposals advanced in
Bolivia and Ecuador to move beyond both neoliberalism and capitalism, as well
as beyond the mainstream vision of development and associated concepts. The
main argument advanced by the author, who has served as Ecuador’s Minister of
Development and Planning, is that an alternative social order such as buen vivir
(utopia), needs first of all to be reimagined via the uchronia of a different tem-
poral order (uchronia understood as a hypothetical alternative universe). Beyond
the current hegemonic structuration of life where ‘time is money’, which serves
as an engine for the accumulation of capital, this chapter reclaims ‘time for
living well’ as the pillar of an alternative form of society and development. This
dispute regarding ‘the commonsense of time’ is described by the author as a
dispute of the sense of existence. This chapter argues that the utopia of living
well proposed by a ‘collective social intellect’ (Ecuadorian society through its
Constituent Assembly) needs to be re-constructed in terms of an uchronia in which
time is recovered as life—not any kind of life, but life understood as living well
(in solidarity and harmony with nature). For this purpose, based on a critique that
exposes the limitations of using hegemonic monetary indicators of a good life, the
chapter questions the socioeconomic realities in force today by reference to an
alternative index for measuring time for living well. This new index, based on the
concept of the quality of time, puts at the heart of the debate not the accumulation
of money but the flourishing of life. In effect, the chapter introduces what could be
called a political socioecology of time, a set of theoretical and methodological
tools that facilitate analysis and proposes action alternatives to advance the con-
struction of a society predicated on living well (buen vivir).
Eduardo Gudynas in the concluding chapter provides an overview of the
diverse experiments with ‘alternative development’ in Latin America in the current
context of a post-neoliberal transition. On the one hand, he discusses the rhetoric
associated with diverse discourses on capitalism, criticisms of capitalism and
possible alternatives, including what Hugo Chávez conceived of as twenty-first-
century socialism. On the other hand, he goes beyond political speechmaking
10 Henry Veltmeyer and Edgar Záyago Lau
and the discourse on capitalism and alternative development to analyse the
concrete actions taken by diverse economic actors, particularly the governments
that make up what has been described as the ‘progressive cycle’ of Latin American
politics.
The chapter analyses the concrete actions taken by these governments in the
direction of progressive change, inclusive development and extractivism, with a
particular concern with, and an analytical focus on, the contradictions between
the development and extractivist strategies and policies of these governments.
At issue in these strategies and policies are different varieties of capitalism and
development. The chapter establishes the utility of the concept of varieties of
capitalism, with reference to diverse experiments in the region in the search for
an alternative development pathway. One of these alternatives is neodevelop-
mentalism, a model constructed by theorists associated with ECLAC and put
into practice most consistently in Brazil under the administration of Luiz Inácio
‘Lula’ da Silva.
Because the idea of ‘development’ since its invention and subsequent construction
in the post-Second World War period has been associated with capitalism—
taken by most theorists and development practitioners as the most appropriate if
not the only system that would satisfy its requirement—the concept of ‘develop-
ment’ in theoretical discourse is closely associated with capitalism. Indeed,
throughout this volume of essays the contributing authors have used the term
‘capitalist development’ to define the central problematic of critical development
studies. Gudynas, however, in advancing the notion ‘varieties of capitalism’ and
different forms and pathways of development, argues for and defends the posi-
tion that capitalism and development should not be equated—that ‘development’ as
a concrete social formation both precedes and will likely follow capitalism. There-
fore, developments such as Cuban socialism or the socialism of the twenty-first
century, and even living well (buen vivir), include both capitalist and non-capitalist
and post-capitalist varieties. In this context, the chapter discusses and dissects the
disputes in the region regarding the diverse forms taken by both capitalism and
development. The chapter also establishes the meaning and delimits the use of the
notion ‘alternatives to development’ and the relevance of what René Ramírez
Gallegos in Chapter 9 describes as the uchronia of buen vivir.
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