Finance Capital and the Water Crisis: Insights from Mexico

Abstract

This paper explores how finance capitalism materializes as socio-ecological process, shedding light on the complex causalities in which current shifts in control over natural resources are embedded. Housing is a critical aspect of financialization. A case study of the financialized housing sector in Central Mexico shows (i) how housing policy serves as a mechanism for the redistribution of wealth from the working class to global finance capital, and (ii) how mortgage-financed housing projects come into being only through an existing water governance regime, while in turn leading to new structures of groundwater governance with profound social and ecological implications. The paper concludes that current accumulation and natural resource regimes interact in complex and contradictory ways that go beyond straightforward resource grabbing. It suggests that Moore’s concept of ‘capitalism in the web of life’ could help to understand how finance capitalism simultaneously transforms the socio-natural world and is produced by it.