Global Capitalism, Deflation and Agrarian Crisis in Developing Countries

Abstract

Periods of economic crisis for agriculture in developing countries have been marked in history by declining incomes and worsening employment possibilities, resulting in adverse outcomes of loss of land rights against debt and declining nutrition levels for the poorer majority of populations. This paper argues that a similar conjuncture of agrarian crisis has become visible in recent years, as had been seen in the prelude to the inter–War Depression, owing to the income–deflation inherent in current macroeconomic policies driven by the dominant global neo–liberal agenda. The argument is illustrated primarily with reference to the experience of India under economic reforms. The question of land rights and gender equity are strongly affected by the dominant policy regime; hence the paper, while not addressing these questions directly, seeks to contextualize them through its critique of the dominant neo–liberal policy regime.