financialization - Uneven Earth

A new book tells us what is really behind the ‘K-shaped recovery’

February 23, 2021April 24, 2021

West Lodge Towers in Toronto, owned by Hazelview, formerly known as Timber Creek Asset Management. The financialization of the rental market in real estate is a key component of the asset economy. Photo: Neal Rockwell.

by Neal Rockwell

Earlier on in the pandemic there was a good deal of talk about what letter best represents the economic crisis that resulted from the COVID-19 virus. The first (and overly optimistic) suggestion was the letter V – that is to say a rapid decline of the economy followed by a rapid rebound. Other suggestions were a U (like the V, but a little more drawn out), the W (two back to back Vs) and an L (steep drop off, slow recovery).

None of these seemed, however, to accurately explain what was going on, so finally pundits and commentators introduced the idea of the K shaped recovery. This one is somewhat more difficult to understand than the others, partly because only the two diagonal strokes play into the visual metaphor, with the vertical stem being extraneous, but more importantly because it stretches the meaning of the word recovery itself.

Essentially, it divides the economy into two portions, one which has seen its fortunes dramatically increased, the other which continues to slide further into poverty. For the former category there has effectively been a boom without crisis, for the latter there has been an ongoing crisis without recovery. The stock market and home prices are increasing rapidly, while many people watch their financial troubles multiply with alarming speed. It seems obvious that this should not qualify as a recovery at all, but what then is taking place?

The Asset Economy, a new monograph published by Polity Books may help shed some light on the economic structures that could provoke this unusual K-shaped economic phenomenon. This slim volume, written by three Australian sociologists, Lisa Adkins and Martijn Konigs of the University of Sydney and Melinda Cooper of the Australian National University, focuses on the way asset ownership—primarily stocks and property—has become central to our economic system, but also to the ordering of social relations within our society.

The central argument of the book is that asset price inflation (especially property) has been the main driver of wealth since about the beginning of the 1980s. As wages have stagnated, rising stock, property, and notably home equity has allowed net worth to increase, at least for those who have access to asset ownership. That idea by itself is not novel, nor even controversial. Since the election of Margaret Thatcher all governments in the English-speaking world (and many others) have pursued this policy of ‘asset based welfare’.

In essence, this is a very individualistic strategy where social welfare programs are cut, unions are broken and people’s needs are met either by owning a stock portfolio or a home whose value increases over time, providing funds for retirement as well as life’s other needs.

The downside to this welfare strategy, of course, is that it requires the constant inflation of asset prices in order to remain viable. Its value creation strategy is entirely dependent on inflating asset prices specifically in relation to the prices of consumer goods overall, and more importantly in relation to wages. That means that as time progresses this form of “welfare” becomes more and more unattainable to larger and larger numbers of people, increasing the poverty of non-asset owning people, and making cities ever more unliveable.

Class is just not the same as it used to be

What is novel about the authors’ approach is the level of detail and attention they lend to this subject. One of the authors’ main ideas is that since the 1970s there has been a shift, where the main class antagonism in society is no longer centred around employment, i.e.: between people who labour and those who own the means of production, but instead between those who own assets and those who do not. As they state “[t]he key element shaping inequality is no longer the employment relationship, but rather whether one is able to buy assets that appreciate at a faster rate than both inflation and wages.”

The main class antagonism in society is no longer centred around employment but instead between those who own assets and those who do not.

This may seem a little like Thomas Piketty’s now famous r > g (return on investments is greater than GDP growth). Piketty’s formula suggests that if return on investments is higher than growth, then investment incomes for the wealthiest are based on syphoning money from the rest of the population, more than they are grounded in actual new wealth creation. This necessitates widening income inequality.

The authors explain, however, that Piketty tends to focus mainly on the very top of the economic hierarchy—those most heavily invested in the stock market, whereas their asset economy is more insidiously distributed throughout the upper and middle classes. Home ownership is particularly vital for entry into the asset economy by people below the very top of the wealth spread and as such “housing has become a significant generator of inequality.” The authors therefore argue that asset ownership is the primary engine of class distinction and inequality in the 21st century.

The authors also take care to distinguish the asset economy from rentier capitalism (which they claim focuses too much on the very top) and financialization (which they think focuses too heavily on making assets liquid, when a large part of the asset economy involves taking on large amounts of debt to buy illiquid housing assets).

Rentier capitalism, for quick clarification, is the idea that as the economy becomes more monopolistic, the owning class makes more if its income from parasitically charging rents and fees for access to services, rather than producing actually valuable goods and services. A good example of this would be increasing bank service fees – they do not actually improve a customer’s experience, but act like a kind of private tax.

Financialization refers to the growing way that financial activities and speculation have come to dominate the economy since the 1970s, replacing industrial production as the central driver of capitalism. In short this means that much more energy is devoted to playing the stock market, and loan markets in relation to investing in producing and selling products. A good example of this is how in the last ten years companies have invested profits into buying back their own stocks to drive up their prices, rather than investing in other more concrete, productive aspects of their businesses.

The authors also downplay the worker / boss relationship in relation to contemporary capitalist exploitation, in favour of the asset / no-asset dichotomy, partly because they believe the role of commodity production is now less important to the economy than long-term asset speculation, and also because class identity is now confused. There are white collar workers like journalists, magazine editors, NGO employees, etc… who are precarious and own no assets, while at the same time there are working class people who have managed to ascend on the asset-owning ladder (though they point out that this is rarer and rarer).

Inflation is sneaky

For some time I have been puzzling over the way economic and business people tend to talk about inflation. Analysts and commentators frequently explain that we live in a period of very low inflation.

This has always seemed somewhat absurd to me because the biggest expense in almost everyone’s life—the cost of housing—has seen prices skyrocket stratospherically in the past several decades. The authors make the same observation, noting that asset price inflation should today be considered part of inflation. As they state:

[T]he official story is that we live in a world without inflation… But this obscures the fact that inflation elsewhere has been central to the making of the neoliberal asset economy. Of course, we tend not to think of asset price inflation as inflation, but that is itself the product of a particular historical conjuncture and discursive configuration. It is therefore important to understand the transition from the Keynesian to the neoliberal era as a shift from price inflation towards asset inflation.

The authors observe that in the 1970s there was an opposite dynamic at play: wage and price inflation was high and asset prices were stagnating. As they explain “[t]he wage and consumer price spiral of the 1970s was the symptom of an undecided struggle between different social groups who sought to maintain their respective shares of the national income.”

What is most illuminating here is the idea that inflation is not simply a blunt process which either is or is not happening. On the contrary, as the authors show, it is a strategic battle between different actors in society. Different types of inflation benefit different portions of the population. Inflating asset prices is an indirect form of appropriation from those who do not hold assets because it erodes the value of their earnings, while increasing the value of asset owners’ holdings.

Inflation is not simply a blunt process which either is or is not happening, but a strategic battle between different actors in society. Different types of inflation benefit different portions of the population.

In a crude sense this inflationary process is like printing money out of nothing. While overall it diminishes the value of everybody’s individual dollars it transfers a greater and greater portion of those dollars into the hands of the asset owning minority. The value that asset holders create for themselves outpaces whatever debasement of buying power this process may engender.

The authors of the book are therefore at pains to show how asset wealth is different in character from other kinds of wealth. Key to this insight is the fact that assets don’t produce goods and services or surplus themselves. Rather, when the value of assets experience inflation, those who own assets are able to capitalise on them, while those who don’t see their buying power eroded.

It’s in this sense that finance, banking, and the asset economy are actually part of a privatized system for creating money. This affords the asset-owning minority a greater and greater ability to leverage this ‘money creation’ power over the structure and direction of the real economy—the actions people perform and things people make, that are the actual measure of wealth. People who hold assets then have a unique kind of power over others, because they are able to capitalise on this specific form of inflation (which is at odds with traditional wage and price inflation), while the rest of the population is excluded from the means for a stable and secure future. The book is extremely useful in clarifying this dynamic.

Overstating assets

One of the weaker aspects of the book is to perhaps overstate the role of what the authors term the asset economy somewhat to the exclusion of the other frames that they outline their position against: rentier capitalism, financialization, and labour relations.

To take one example, one of the major drivers of financialization is cheap debt. Loading up on low interest loans is one of the drivers of asset price inflation as the authors observe, but it also allows real estate to arguably become much more liquid. These loans help make ever more expensive housing accessible to investors, fast growing equity makes it easy to sell these properties quickly and painlessly. Stories of condos being sold multiple times before they are even built are a testament to this process.

I would argue, somewhat against the assertions of the authors, that the asset economy is financialization. They are both part of a privatized money creation scheme (money is created in the form of cheap loans, inflating property prices, stocks, etc…), that shifts a greater and greater portion of the money (or if you prefer value) supply into the hands of a select few.

This is maybe an argument for a basic income of some sort—not that it would not create inflation, in the long term it likely would—but that it would increase inflation in the right direction, away from the hands of the private money creation industry and into the pockets of poor and working people. Since asset inflation, banking and finance are part of a privatized system of money creation—one that benefits mainly the people who own and control it, state monetary policy can act as a counterweight to this process. Similar to the question surrounding inflation, the issue at stake around money creation is not simply how much is too much, but who has the right to do it and for the benefit of whom? At any rate there is certainly more to consider in how these processes relate to contemporary class struggles.

Work relationships, assets, finance, rentier capitalism and other dynamics, I believe, all exist concurrently in a way that is somewhat more complicated than the vision laid out in this book. That said, the asset economy frame outlined by the authors is nonetheless very timely and does provide necessary clarification that gets missed from some of these other more widely discussed analyses.

Understating production

This leads me to what I think is perhaps a bigger weakness in The Asset Economy: understating the role of production. The authors quite correctly observe that there is no “natural” way to measure prices—markets are contingent, arbitrary, socially constructed objects. They assert that inequality in society “works less and less through extraction and appropriation, and increasingly through the inflation and deflation of temporally situated claims.”

This single sentence manages to capture both what I consider the strongest and weakest elements of the book’s argument. Personally I would not set these two dynamics against each other. I would state, to the contrary, that it is inflation and deflation of specific forms of value that drive extraction and appropriation in the 21st century.

People doing and making things is still the basis of everything we consider valuable. The asset economy, like finance, has not supplanted real wealth. What it does is reorder cash distributions across different populations.

Further, some confusion arises from the way that the authors downplay the real economy and labour. People doing and making things is still the basis of everything we consider valuable. The asset economy, like finance, has not supplanted real wealth. What it does is reorder cash distributions across different populations.

Organizing against the K-shaped recovery

Recently, housing has grown as a novel site for working class struggles—above and beyond traditional sites like factories or other workplaces. Since the pandemic, we have seen the building of tenants’ unions and neighbourhood groups organizing against evictions and rent increases. These groups themselves explicitly identify housing as a target of working class organizing. This is partly because the precarious, gig and service economies make workplace organizing more challenging versus, say, organizing a centralized factory, but also because rents and housing costs have become a main point of extraction of working people’s wealth. It is a major point of 21st century exploitation.

This is a testament to the authors’ claim that neoliberalism has reordered traditional class relations. In the neighbourhood where I live, for example, many of the buildings where organizing is taking place are owned by asset management companies. This is not incidental, and it is part of why COVID-19 has been a crisis for some and a boon for others.

It may be worthwhile at this juncture to reiterate that a K-shaped recovery is no recovery at all. The image simply highlights the widening gulf of inequality between people who own assets and those who do not. We could think of the present-day wave of organizing around housing and rent as being a direct challenge to the inequality being wrought by asset price inflation.

A K-shaped recovery is no recovery at all. The image simply highlights the widening gulf of inequality between people who own assets and those who do not.

This transformation in class identity warrants greater consideration. At the same time, we must be cautious not to overstate this conversion. It’s true that there is significant overlap between people who own assets and own businesses where people work. On the other hand, many non-asset owning people are also low-paid workers. While asset prices have reorganised monetary value and who controls it, the work done by people is still the backbone of our collective wealth.

This book offers an important and timely analytical lens by which we can better theorize the growth of contemporary inequality and exploitation. There is a good deal more work to be done. I think the answer lies not in setting asset price inflation against a labour theory of value and exploitation, but in exploring how these dynamics intersect and work together, which will give us, amongst other things, a deeper understanding of why housing has become so central to 21st century working class struggle.

Neal Rockwell is a writer, photographer and filmmaker. He is currently completing a masters’ degree in Documentary Media at Ryerson University where he is exploring the effects of financialization on rental housing, as well researching the use of documentary power in the economy and the law, with the goal of strengthening documentary practice as a form of radical truth-telling.

To organize in times of crisis, we need to connect the dots of global resistance against Imperialism

April 11, 2020April 18, 2020

Sallye Davis (organizer and mother of Angela Davis), Ann Bishop, Alimenta Bishop, and New Jewel movement leader Maurice Bishop, Grenada, 1982. Photo from *The House on Coco Road*, directed by Damani Baker, Array Films.

by Corinna Mullin and Azadeh Shahshahani

Writing in the aftermath of the US-led overthrow of the People’s Revolutionary Government of Grenada, the inimitable Audre Lorde lamented the absence of a strong anti-imperialist movement in her seminal essay “Grenada Revisited.” Lorde identified two main factors to explain the dearth of resistance to the blatant intervention by the US in a sovereign state’s internal affairs: 1. a deliberately confused public sphere as “doublethink has come home to scramble our brains and blanket our protest,” and 2. a desensitized “[white] america whose moral & ethical fiber is weakened by racism as thoroughly as wood is weakened by dry rot.” The years following the 1983 invasion of Grenada have witnessed a continuation, and in many ways, deepening, of both: the racism that underpins the violent dispossession to which marginalized communities at ‘home’ and ‘abroad’ are subjected, coupled with the discursive infrastructure of a capitalist dominated media and public sphere designed to obscure and normalize this dispossession as well as to delegitimize resistance.

We currently face a combined economic, ecological and health crisis that is in many ways a product of the forms of exploitation and dispossession that Lorde identified in her essay, making it more vital than ever to draw connections in our analysis of and resistance to racial capitalism and Imperialism. Rob Wallace has demonstrated the linkages between capitalist modes of agriculture and the ecological transformations that have enabled the spread of “the most virulent and infectious phenotypes” of pathogens such as those that resulted in the coronavirus.

These processes have accelerated in the neoliberal era, spurred on by imperialist circuits of finance capital whose penetration of the Global South was enabled by the removal of “restrictions on the global flows of commodities and capital.” Neoliberalism has entailed a set of social and economic policies rolled out over the past five decades as a response to the crises of racial capitalism, designed to reverse even limited post-Depression working class gains and redistribute wealth upwards. Neoliberal policies including repeated tax cuts for corporations and the wealthy, the deregulation of various sectors of the economy (including finance, telecommunication, energy, etc.), and the marketization and privatization of public services (including in the domains of education, social welfare, prisons, etc.) resulted in deindustrialization and the dismantlement of many public institutions that would otherwise have helped to mitigate the current crisis, including health care. The state’s “organized abandonment” was accompanied by a retrenching of its repressive apparatuses, including prisons, borders, and police—or the state’s “organized violence” in the words of Ruth Gilmore. This violence has targeted with criminalization the very Black, Brown, Indigenous, working class, poor and other marginalized and racialized communities who were the most impacted by neoliberal restructuring, extending already existing forms of exploitation, dispossession and exclusion in capitalist core states.

Many of the neoliberal policies behind the restructuring of the Global North’s welfare state were originally tested on—and resisted in—the periphery.

Many of the neoliberal policies behind the restructuring of the Global North’s welfare state were originally tested on—and resisted in—the periphery, via imperialist institutions like the IMF (International Monetary Fund), the World Bank, and the EU. As part of the attack on the post-independence assertion of Global South sovereignty, structural adjustment programs via enforced spending cuts and privatization engendered state disinvestment in public goods, contributing to the degradation of public institutions, including public health. They have also enforced capitalist patent regimes that limit these states’ abilities to provide affordable and accessible medicine to their populations, ensuring that the Global North benefits from the “monopoly rent…[and] an almost exclusive control of the world market of health.” Neocolonial debt further hinders Global South public health by diverting already limited state resources away from funding health care systems to servicing public debt. Similar to developments in the Global North, one of the few sectors that witnessed an increase in spending during the neocolonial assault on the state in the Global South were the repressive security institutions, also contributing the accumulation of public debt. This neoliberal restructuring combines with the colonial-capitalist assault on Global South ecologies and the destruction of imperialist wars and militarism, to produce “wasted lives”—contributing to an expansion of the “global reserve army of labor,” superexploitation of Global South labor and surplus value extraction.

While scholars like David Harvey argue that Imperialism is no longer useful as an analytic category, a look at any number of socio-economic indicators statistically mapped out onto an image of the globe makes clear that the north-south cleavage is still salient when it comes to patterns of accumulation and dispossession. Whether we look at it through the lens of public health, monopoly finance capital, global commodity chains, labor exploitation, unequal exchange, sanctions, climate disaster, or military interventions—there is a stark geographic dimension to how power is divided and exercised across the globe. As in the past, global inequalities today are also reflected and intimately connected to those within the metropole. In the current context, it is poor, undocumented, immigrant, Black and Brown communities hit the hardest by crisis. Not only in terms of being more susceptible to contracting and dying from the coronavirus, as a result of historical legacies of slavery and ongoing structural racism, resulting in a lack of access to adequate health care, nutrition and housing, as well as contributing to conditions as well as often limited capacity to “social distance,” but also because of the uneven impact of its socio-economic reverberations, including loss of employment and housing, as well as being subjected to state violence and surveillance as part of the state’s increasingly securitized response.

Similar to the Granada intervention conjuncture so incisively dissected by Lorde, the current moment has also laid bare the interconnections between the Imperialism and racial capitalism. Yet we still falling far short of the kind of political mobilization required, with the parallel analytical phenomenon that some interpretations of Imperialism have been stretched so thin that the concept has lost much of its meaning and urgency. Though there may be several factors that can account for this, central among them is what Lorde, referencing George Orwell, identified as “doublethink.” This refers to a deliberate and systematic politics of confusion that emerged in the late/post-Cold War period, providing a discursive cover for the neoliberal counter-revolution against post-colonial Global South sovereignty. This cover operates through several discursive mechanisms, including through the evasion and distortion of history to disrupt and reverse otherwise obvious connections between causes (settler-colonialism, slavery, racial capitalism, Imperialism) and effects (underdevelopment, de-development, inequality, dispossession). This doublethink equates imperialist violence with the responses it engenders, flattening out different forms of state power, (e.g. by conflating neoliberal and imperially aligned states such as Colombia and Peru with “Pink tide” governments such as Bolivia and Ecuador that have sought to nationalize resources and redistribute wealth, support the struggles of workers and Indigenous communities, and challenge imperialist geopolitical alignments, repeatedly referring to the latter as “authoritarian”). It also normalizes imperialist violence through discursive formations such as the ‘democratization’, ‘humanitarianism’, ‘development’, ‘war on terror’, ‘green transition’, and sets limits on what we are able to imagine in terms of liberation (e.g. whether or not international agreements can be broken and debt erased, regional integration, redistribution, ending private property regimes and reclaiming the commons). It is why for so many people it is “easier to imagine the end of the world than the end of capitalism.”

Faced with this combined health-economic-ecological crisis, there is a renewed urgency to demystify and contest this politics of confusion by strengthening our anti-imperialist organizing. Just as we build solidarity through mutual aid in our communities to fill the gaps- as well as address root causes– left by the neoliberal, racial capitalist state, we must extend our solidarity to support mutual aid efforts in the Global South, where similar and much more severe gaps in the ability of the state to protect people in the face of coronavirus are intimately connected to US Imperialism. These include economic warfare against countries like Cuba, Iran, and Venezuela, to the deepening and expansive tentacles of US military projection across the African continent through the US Africa Command (AFRICOM), including “46 various forms of U.S. bases” and other military interventions designed, in the words of the former deputy of AFRICOM himself to “Protec[t] the free flow of natural resources from Africa to the global market,” and including past and ongoing US directed or backed invasions, bombings, blockades, occupations, covert destabilization military operations and coups in places like Iraq, Yemen, Syria, Libya, Bolivia and Venezuela.

Conceptualizing Imperialism

At its base, Imperialism is a system of domination that blocks real self-determination for states and peoples. It is about externally determining and imposing, often together with the collaboration of elements of a domestic elite, particular modes of industrialization, socio-political forms of governance and border-making/border practices that facilitate labor exploitation and surplus drain in the Global South for the benefit of (largely Global North/western) capital. It is about blocking alternative ways of imagining and pursuing development, value, and of living with one another and with the Earth. The imperialist aim is to obstruct the pursuit of alternative socio-political-economic projects (and sabotage extant ones) that threaten capitalist power. As Ali Kadri reminds us, the state-led developmentalist projects of the post-independence era implemented across West Asia and Africa “did not fail on their own”; it was “implicit and explicit” forms of Imperialism “that shut them down.”

Imperialism is about blocking alternative ways of imagining and pursuing development, value, and of living with one another and with the Earth.

Imperialism is also always about violence. There is the structural violence that results from what Walter Rodney described as the “paradox” of underdevelopment, where “[m]any parts of the world that are naturally rich are actually poor.” There is also, of course, the material violence. Imperialism is backed up by the threat and often actual shock and awe of military might. We are all too familiar with the long list and typology of imperialist interventions, which include: the invasions, occupations and other forms of imperialist (largely US/French/British/Germany led)-military action witnessed over the past century in places from Vietnam to Iraq, North Korea to Afghanistan, Libya, Somalia, Chile, Syria and Mali to imperialist backed coups against leftist and/or nationalist governments across Africa and the Americas. Through destabilization, destruction, and currency devaluation, wars and occupations enable numerous forms of extraction and exploitation of natural and human resources. In that sense, they are primary mechanisms of “surplus value and power creation.” This is true not only, as Ali Kadri shows us, in the immediate aftermath of violence, but for years following, as they produce the socio-economic conditions of “underdevelopment” that enable Global North accumulation.

Returning to Grenada, Lorde pointed to the outcome (and aim) of the US invasion: “Ministries are silent. The state farms are at a standstill. The cooperatives are suspended…On the day after the invasion, unemployment was back up to 35 percent. A cheap, acquiescent labor pool is the delight of supply side economics.”

Imperialist mechanisms

Counted among the list of imperialist interventions are the 1,000 military bases and installations the US operates/and or controls across the globe, which have aided in the funding of death squads, coups, and other covert operations. This number far surpasses that of foreign military bases maintained by any other state in the world. There are also the more subtle forms of military domination and imperialist induced vulnerability that come from state dependence on US/European weapons and surveillance systems, training, as well as military “cooperation” with joint military operations, wherein the US outsources risky ventures to Global South “partners.”

While much is made of Russia and China as competing powers for global hegemony, it is telling that the US spends more on “national defense” than the other countries included on the list of top 8 military spenders combined

The US dominated military-industrial-complex continues to be one of the most visible mechanisms of Imperialism today. While much is made of Russia and China as competing powers for global hegemony, it is telling that the US spends more on “national defense” than the other countries included on the list of top 8 military spenders combined (including France, United Kingdom, Germany, India, Russia, China, and Saudi Arabia). The US dominated arms market also perpetuates financialization of the global capitalist economy as the top arms dealers are all publicly traded. The US continues to dominate with 42 of the Top 100 listed arms companies based in the United States. The speculative role of arms capital was once more on display as major US arms companies saw their stock prices jump following the Trump administration’s assassination of the leader of Iranian Revolutionary Guards, Qassem Soleimani in January of this year In supplying their arms to the Global South, these merchants of death not only provide the conditions to alienate citizens from their states, but also alienate Global South states from one another as they find themselves caught up in conflicts that are not of their own making, nor in their own interest.

Perhaps even more pervasive than militarism, economic warfare is one of the most destructive forms of imperialist intervention. Currently, a third of humanity is impacted by US sanctions. Sanctions are a way of disciplining Global South self-determination, as is so clearly the case in Zimbabwe where sanctions first adopted in 2001 were designed to punish the government for its extensive land reform program. Not only do sanctions by design “cause untold death and devastation,” a reality laid bare in the current health crisis, but also, as Lauren Smith demonstrates, “economic sanctions serve to justify and conceal theft, through asset freezes and seizures, at a rate only previously accomplished through invasion and occupation.” US sanctions trigger currency devaluation, inflation, increased unemployment, prices and access to food, power, and industrial equipment, and, of course, medicine. In other words, sanctions are a neocolonial tool designed to “prevent countries from setting in place any form of economic development.”

Iran has been the target of one of the most significant and consistent US sanctions regimes, a punishment for asserting its sovereignty with the 1979 Iranian revolution. Though lifted for a short time following the 2015 nuclear deal, Trump’s re-imposition and expansion of sanctions have forced the Iranian economy to contract by 9.3 percent in 2019. To convey a sense of the scale of the impact that the US enforced severing of Iran from the international financial system has had on the Iranian economy, Kevin Cashman and Cavan Kharrazian explain that it would be the equivalent to a 16 percent cut in the US federal budget, or $521 billion in 2018. With at least 58,226 cases of the coronavirus and at least 3,603 deaths recorded since the outbreak, there is no doubt that US sanctions have made it much harder to tackle the pandemic. The country is facing shortages of respiratory-assistance devices and basic medical equipment, such as gloves and masks. With the sanctions impeding Iran’s ability to respond to the health crisis it is facing, the aims of the US’ economic warfare on the country are rendered even more apparent: destabilization and death.

In Venezuela, even before the coronavirus outbreak, a report by the Center for Economic and Policy research demonstrated a 31% increase in mortality in the country after the 2017 round of US imposed sanctions, causing an increase of 40,000 deaths in the country. The most recent ramping up of imperialist aggression towards Venezuela in the form of increased sanctions, the deployment of navy ships towards the country and the placement of a $15 million-dollar bounty on the head of President Nicolas Maduro, have all contributed to undermining Venezuela’s ability to confront the coronavirus, and will undoubtedly result in even more deaths. To add insult to injury, US Imperialism has created both the conditions in which Iran and Venezuela have been forced to turn to the IMF for emergency funds to confront the coronavirus as well as the reason for which the IMF continues to block these countries from accessing needed funds.

US Imperialism has created both the conditions in which Iran and Venezuela have been forced to turn to the IMF for emergency funds to confront the coronavirus as well as the reason for which the IMF continues to block these countries from accessing needed funds.

Sanctions are not only deadly in the sense of blocking access to the medicine, food and finance required by states to provide basic welfare for their population, but also in denying and distorting capital flows and economic transactions, and in enabling the investment of seized assets in Global North banks. They are a major mode of Global South-to-North wealth drain. As demonstrated by a recent report, the U.S. economic blockade has caused over US $138.8 billion in losses to Cuba since the 1960s. Of course, not everyone in the Global North benefits from this wealth drain. As with other examples of imperialist intervention, the inequalities of racial capitalism are in fact exacerbated by sanctions as an economy built on “plunder” is by design one that exploits, dispossesses and wastes lives.

Connecting the dots between racial capitalism and Imperialism

The above list of imperialist economic interventions includes debt colonialism, currency manipulations, structural adjustment programs, “free trade” deals, and other forms of economic intervention that block Global South development and facilitate Global South wealth drain and Global North accumulation. By dehumanizing, devaluing, and exploiting Global South lives and livelihoods, Imperialism perpetuates white supremacy both within the US and across what W.E.B. Du Bois described as the “global color line.” For Lorde, the seeming indifference of the US public to the imperialist violence committed against Grenada could only be grasped by understanding how “white america has been well-schooled in the dehumanization of Black people” and how such socialization enables accumulation through dispossession under racial capitalism.

By dehumanizing, devaluing, and exploiting Global South lives and livelihoods, Imperialism perpetuates global white supremacy both within the US and across what W.E.B. Du Bois described as the “global color line.”

The racialized forms of accumulation underpinning capitalism have always been international — from the foundational role of slavery and the dispossession of Indigenous lands and polities to the current formations and relations of power underpinning the globalized and hierarchically organized and racialized circuits of trade and production. These circuits of trade and production are kept in place by imperialist states and the multilateral institutions they dominate, from the IMF/World Bank to NATO, often including different organs of the UN and international law. These same interests, institutions, policies, and practices not only act outward to impact people around the world, but are responsible for criminalizing, exploiting and dispossessing Indigenous, migrant, Black, Brown, undocumented, and poor communities in the US itself. Trump’s framing of Covid-19 as the “Chinese virus,” a framing that was readily echoed by a mainstream media and public sphere long schooled in anti-Asian racism and the (neo)colonial tradition of deploying “health and medical discourses [to] further racist projects of excluding and eliminating those deemed undesirable,” is a reminder of Imperialism’s and racial capitalism’s shared discursive infrastructure.

Resisting Imperialism

Both this global domination and the resistance to it have always been international. From early forms of radical Black internationalism, including such luminaries as W.E.B. Dubois, Claudia Jones, Paul Robeson, Kwame Nkrumah, Frantz Fanon and Angela Davis, to organizations like the International Trade Union Committee of Negro Workers, the International African Service Bureau, and the Black Panthers, internationalism was an important base of struggles against colonial regimes and white supremacy. There is also the long tradition of what Nick Estes describes “Indigenous internationalism,” through which Indigenous peoples have “imagin[ed] themselves as part of Third World struggles and ideologies, and entirely renouncing the Imperialism and exceptionalism of the First World (while still living in it).” Internationalism informed various state initiatives (e.g. the 1955 Bandung Conference, and 1964 UN Conference on Trade and Development (UNCTAD), as well as early hybrid state-popular forms of solidarity expressed through institutions such as the Cairo based Afro-Asian Peoples’ Solidarity Organization and its “antecedent,” the African Association, and the Tricontinental Conference. Today, the international peasant and ecological movement of Via Campesina coordinates global resistance to the ravages of capitalist agriculture for a food sovereign future, while the Boycott, Divestment and Sanctions movement, Black for Palestine and The Red Nation carry forward the mantle of internationalism in the name of anti-colonial solidarity, Palestinian, Native and Black liberation and human emancipation. Much anti-imperialist organizing in the US today centers abolition, pointing to linkages between US interventions “abroad” and repression at “home,” with a focus on “racialized policing and prison systems” as well as connections between the conceptual and material underpinnings of the carceral-police state in the imperial core and the periphery. The abolition project has assumed a new urgency in the current conjuncture as it is clear that communities targeted by the carceral-police state are the most vulnerable to the current combined crisis.

While the imperialist security state devises new mechanisms of control and capital figures out ways to profit from the crisis, resistance is also mounting. Already existing circuits and networks of solidarity are being mobilized, with organizations like the Red Nation calling for human solidarity “not just to stop the most catastrophic effects of COVID-19, but to end this inhumane and criminal capitalist system once and for all.” Others like Cooperation Jackson are building on the increasing radicalism of labor organizing in the face of the crisis to demand a “democratization of the means of production” as well as a redirection of funds spent on defending and expanding the US empire “to Health Care, Social Services, Universal Basic Income and Greening Public Infrastructure and the Economy.” There are also calls originating from the Global South for broad solidarity with demands for reparations and the cancellation of neocolonial debt. While the US practices public health Imperialism, Cuba is leading the way with its public health Internationalism, providing support to states in the Global South (and even Global North), which are struggling because of limited resources and the consequences of neoliberal cost-cutting of health-services to fight the spread and impact of the coronavirus.

International solidarity derives from the realization that our own liberation — and indeed, our survival — is fundamentally linked to the liberation and survival of the most oppressed people across the globe.

These past and present forms of internationalism have taught us that the struggle against racial capitalism and Imperialism can only succeed if undertaken as a collective. As rising temperatures and sea levels (as well as the rapid spread of the deadly coronavirus) remind us, international solidarity is neither an abstract nor intellectual duty. Rather, it derives from the realization that our own liberation — and indeed, our survival — is fundamentally linked to the liberation and survival of the most oppressed people across the globe. As internationalists, we also have a responsibility to educate ourselves to the greatest extent possible about the popular struggles unfolding in parts of the world where Imperialism is busy at work, in our names, and with our tax dollars. From Algeria, to Haiti, Chile, Ecuador, Lebanon, before the coronavirus health crisis gripped the globe, it seemed the entire world was on fire with popular uprisings resisting the ravages of capitalism and the apparatuses of “organized violence” that are designed to sabotage and manage dissent. Once the virus subsides, these struggles will undoubtedly reconvene with a vengeance, spurred on by the inequalities and injustices exposed and exacerbated by the combined crisis as well as by signaling from imperialist institutions such as the World Bank, which has called on states to “implement structural reforms to help shorten the time to recovery,” that business will continue as usual. Likewise the struggle for Palestinian liberation, where Imperialism and settler-colonialism combine to create the perfectly deadly mix for the unequal spread and impact of coronavirus, accelerating the Israeli project of ethnic cleansing of the Palestinian population.

As we have learned from the successes and mistakes of the past, our anti-Imperialism cannot be a one size-fits-all mode of organizing. It must be based on sound analysis of the particular histories, socio-economic contexts, class composition, ideological underpinnings, and political alignments of both states and movements. Yet it always requires that we resist imperialist military and economic intervention as well as the so-called multilateral institutions that facilitate Global South dispossession and wealth drain. It often means standing in solidarity with Global South popular movements as they resist the collusion of their governments in the exploitation, extraction, dispossession and destruction of peoples, lands, and ecologies facilitated by US provisioned arms, training, and diplomatic cover. By virtue of our geographic location in the belly of the beast, we have a special responsibility to resist all attempts by the US and other imperialist actors to sabotage, divert, co-opt, or otherwise limit the will of popular struggles across the Global South. It also requires that we stand in solidarity with those Global South states that are punished for the threat they pose to status quo functioning of global capitalism because of their geopolitical alliances and support for anti-colonial and anti-imperial resistance. Finally, we must be wary of forms of critique that may have the perhaps unintended consequence of turning people away from anti-imperialist organizing at a time when they are needed the most by claiming that those who focus their analysis and organizing on the role of US power, ignore or undermine Global South agency when in fact the principal aim of anti-Imperialism is precisely to support the building of a context in which meaningful Global South self-determination can be realized. At a time when so much is at stake, we must be as careful as possible to ensure our analyses do not reproduce and reinforce imperialist discourses and power relations.

It is the working class, poor, racialized and criminalized communities both in the Global North and South who suffer the most and who are also at the forefront of resistance.

As we confront these interlocking health-economic-ecological crises, we must remember that it is the working class, poor, racialized and criminalized communities both in the Global North and South who suffer the most and who are also at the forefront of resistance. True liberation and survival—depends upon centering the needs, struggles and collective leadership of the most vulnerable among us. To do so requires that we continue building on the analysis and praxis of those Internationalists who have come before us. They have shown us that the best antidote to the politics of confusion is a politics that connect the dots between the political-economic systems of human and ecological domination that continue to exploit, dispossess, and kill us.

After a commenter’s feedback, some corrections have been made on the history of Grenada’s revolution.

The authors would like to thank the editors of Uneven Earth, including Natalie Suzelis and Vijay Kolinjivadi, for their extensive and insightful edits and suggestions, as well as Max Ajl and Setareh Ghandehari for their close readings of the article and feedback. They would also like to thank Zainab Khan, Ramin Zareian, and Chris Tidwell for their research help with the sanctions section of this article.

Corinna Mullin is an adjunct professor at the New School and John Jay College (CUNY) and researches on Imperialism, capitalism and the politics/political economy of Global South security states; she tweets @MullinCorinna.

Azadeh Shahshahani is Legal & Advocacy Director at Project South and a past president of the National Lawyers Guild; she tweets @ashahshahani.

July

July 2, 2018July 2, 2018

by Freya Johnson

The usual refrains tumble from the pharmacist’s lips all delicate and light. She fills out a prescription for a daily pill. “I really think you have made the right choice”, she says. “It’s so easy. I’ve heard it’s great for improving your credit score”.

Rowan kicks an empty can of Lucozade off the step as she exits the surgery and struggles to breathe in the air all clammy and close. It’s a sullen day: the sun stays stubborn behind July’s haze. She drifts toward home through the corporate smell that thickens around the buildings all imposing and walks by the man who sits daily outside the coffee shop, reluctantly ageing. At the pharmacy there’s that lady in there again, arms up in the air, howling neurasthenia with the full bellow of her exhausted lungs. It should be comforting to medicate a throbbing anxiety, but not for her. She thwacks her hands on the counter rap-rap-rap demanding something new that will hide her sickness better. Rowan turns “hypochondriac” on her tongue and receives her cheerily patented Temperanelle®.

“Seven days”, the pharmacist says as she dispenses, folding the info-leaflet with peculiar precision. “Seven days before full effect, and remember it is not a contraceptive”.

There’s no place for erratic ups and downs these days.

There’s no place for erratic ups and downs these days. This pill is meant to remedy a lack of aptitude for emotional control. A well-behaved cycle makes the body verifiable, more investable, at the appropriate points. It’s supposed to be great for improving your credit score.

From a digital-distributor Rowan takes a newspaper that she probably won’t read and crumples it under her arm, thinking of the times she’s heard that women are too unpredictable. Like petulant schoolchildren—she’d been told—they brood around with their shoulders slumped and then, without warning, they become garrulous; incessant.

It sounds like rubbish but then she remembers “psycho Sarah” in year five who pretended to be her friend before running at her three weeks later with a pencil in art class, so maybe it’s plausible.

She picks a spider off of her cheap cotton dress, and ambles her way home.

**************************************************************************

How is it that Rowan ended up here alone, in this quietly miserable place? The paint flakes off the threshold of the front door where she used to sit, picking her mosquito bites. It wasn’t long before the green hills that tumbled down from the cottage had been replaced with a sprawling labyrinth of concrete.

Hestonmere Green had arrived uninvited, and it had unfolded violently quickly as a panicked response to London’s burgeoning finance sector. Now, towers engulf the space; their necks reaching proudly to swallow the sky above, and their staunch figures offset only by the delicate cranes that cradle the whole area. As machines that had borne the structures, the cranes had been left behind to stand as silent witnesses of a tech-savvy financial future.

A dazzling prospect, perhaps, but the landscape had become unpalatable. It was never designed to be residential, not really.

A dazzling prospect, perhaps, but the landscape had become unpalatable. It was never designed to be residential, not really. “Welcome to our town, where people and finance thrive” the sign lies, now mired in grime. Vacuous gestures had been made in attempts to soften the intrusion, with few amenities interrupting the otherwise homogeneous and colourless landscape. A poorly stocked off-licence here. A ropey café there. All serviced by outdated and, for the most part, malfunctioning Tier-1 chatbots.

In truth, the land had been appropriated for the development of new biometrics for assessment, identification, and tracking. Hestonmere Green the Profiling Machine. Transparency in the name of financial inclusion was the championed motto.

Everyone who was able soon fled to Henley, Goring, or further. “Not in my back garden”, they had said. With them they had taken their families, their councils, and their schools.

Now, the town is quiet save for the tannoy that screeches the start of the working day, and the perpetual hum of the I-Droids as they trudge through their meticulous production of wearable techs, microchips, and pharmaceuticals.

Yes, Hestonmere Green has become a sulky little corner of England. Isolated, the town is as much the revered lifeline for the country’s thirst for financial-technologies as it is considered a repellent, noxious space; the kind to threaten small children with when they misbehave. The dark walkways absorb the sunlight. There is an acrid smell after the rain.

“I like my back garden just fine”, Rowan comforts herself, absently fingering a root that pushes aberrantly through a crack in the tarmac.

Rowan; as belligerent and obstinate as the rosacea that has peppered her skin since the earliest she can remember, tormenting her with a hot and angry redness, and winning all the jeers of the playground. She had been staunch in her resolve to stay firmly where she was. We had all grown up in the same meddling world. Leaving wouldn’t change that.

Left behind like tired furniture, they spend their time tracing patterns in the dust on the walls.

The ageing, the infirm, and the insane are her only company now, although she refuses to speak to them. Left behind like tired furniture, they spend their time tracing patterns in the dust on the walls, muttering halcyon days. A reticent army of misfits, not considered worth the bother of the residential Intels, they lurch dolefully along the streets, pausing only to listen to the crackle of the power lines, and to the clickety-click of the ones that mediate their lives, working indefatigably in the towers above them.

**************************************************************************

The pregnant silence in the room is punctuated by the fan whirring stale heat. Rowan coughs heavily which reminds her that she should have asked for a repeat of Keflex whilst at the pharmacy.

Curling the bud of her Smart-Set into her ear, she watches apathetically as the field of the MixR-Lens unrolls in front of her eyes. Groping around in the middle-distance, she taps thin air to pair the set with her microchip. Ouch! The chip always pinches somewhere near her thumb. It wriggles, she’s sure. She’s had to have it re-adjusted so many times. “A wilful little thing”, the nurse jokes. The same nurse who told her it would be “just like having your ear pierced, sweetie, nothing to worry about”.

The lull of the algorithm throbs ba-dum ba-dum ba-dum. Ignoring the GIF that loops ad nauseum in her newsfeed, Rowan taps again to unfold a calendar where a small circle highlights day twelve of her cycle.

Taking a moment to stand with arms outstretched, she tries to size up the field that is in front of her. How is it that I can’t reach the edges when it seems so close up, she thinks. Despite being almost immersive, and quadruple the pixel density of the now obsolete HoloLens, the veneer of the field is diaphanous. Rowan’s focus oscillates between jiggling interactive memes and the hazy shape of the green velvet sofa that somehow has always smelled of her mother’s old perfume.

It surprises her how detached she feels despite being triangulated, and articulated, by such an invasive system of monitoring. She is adorned with a glittering array of payment chips, identification tools, and health trackers. A heart rate monitor disguised as a lace bra. An oyster-shell effect compact that approves payment when you smile into it. All the data are sent straight to the Fin-Authorities who, “committed to increasing the financial inclusion of women”, use it to oversee her credit account.

Without credit, you can’t do anything. And that’s a fact.

Possession of these items is, of course, a matter of warped choice. But it’s a choice between being captured within an image of the creditworthy hyper-feminine, and being thrown out into the cold. There’s no such thing as “cash transactions”; not anymore. Without credit, you can’t do anything. And that’s a fact. There was a woman down the road who tried to go it alone, planning to grow her own vegetables and patch together clothes from old curtains and bed linen, until she realized she needed credit just to access the allotment.

**************************************************************************

The gentle bzzt of Rowan’s memo-watch prompts her to look up at a holographic whose impossibly white teeth, framed by coral pink, is eager to tell her about the latest available accessory: a silicon vaginal rod- appropriate for daily wearing- that sends data to your smart-set regarding the health of your discharge and menstrual blood. It has the added benefit of serving as a pelvic-floor exerciser.

Rowan smiles wanly, cocking her right shoulder forward and dropping her left hip in a copycat stance, and wonders what it would be like to have breasts so irritatingly buoyant.

A moth panics in the corner of the room, catching its wing on a curling piece of wallpaper.

**************************************************************************

Butterflies aren’t that common here anymore so she catches moths instead.

Rowan enjoys preserving and mounting insects; it’s a cathartic and candid practice. Butterflies aren’t that common here anymore so she catches moths instead.

Peeling the moth from its wallpaper snare, she scoops its flickering wings into a cage of fingers. Death must be produced without disfiguring them, and that’s a skill no question. She did try to learn how to stun them by squeezing the thorax but they would gyrate and she would squeeze too hard. A clumsy end. “I find that they relax quickly with a dreamy dose of ethanol”, she says.

Pausing to place the moth in a net—acquainting the creature with its temporary confinement—Rowan stolidly prepares the killing jar, pushing ethanol-soaked gauze in to the glass mouth. The moth follows, dropping to the bottom with a surprising thud. A struggle ensues as it scours the base of the jar, feelers catching in the gauze, legs pressing pleadingly against the glass. There’s one last protest before it crumples; listless. She places the jar next to the others on a creaking bookshelf, all lined up like prized little coffins.

Sitting at a folding pine table, Rowan looks up at the dusky canvases that tile the wall with her unfortunate little trophies, stuck through with dress pins; wings frigidly splayed. She enjoys the way they fill the space with artificial flight; an awkward posture that makes their death seem comical. It is advised to keep the moths framed to prevent the growth of mould, but she doesn’t bother. She says it’s because nothing ever stays the same anyway.

Thoughtfully admiring her work, Rowan wonders where she has hidden her Twin Peaks VHS collection. She’s noticed that there are some tapes missing from the otherwise indulgently full sideboard.

Something happens. The jar—perhaps precariously placed on the edge of the shelf—topples. The glass shatters, releasing the moth on to the floorboards. A moment passes. The tap drips sporadically, and someone outside sneezes loudly. Finally, the small, intoxicated corpse lying before Rowan’s feet begins to twitch. Groping around in an addled haze (with a sense of humiliation, she imagines) the moth stutters to regain composure. Encumbered by shards of glass it jerks fiercely left and right, dragging its sodden wings from sticky fibres of gauze.

Summoning all courage, the moth valiantly collects its legs into an upright position and begins the long lope toward an uncertain freedom. Rowan watches, placidly. One laboured step is made; then two; then three. The wretched thing comes to rest no more than a centimetre from where it began. Exhausted by such a Herculean journey, it collapses; surrendered.

She leaves the moth to its pitiful deathbed and rises urgently to her feet, summoned by the sound of the telephone ringing.

Rowan retreats in her chair, suddenly repulsed by this display of hopeless perseverance. Resisting the urge to stamp out its final moments, she leaves the moth to its pitiful deathbed and rises urgently to her feet, summoned by the sound of the telephone ringing.

**************************************************************************

Vzzt-bzzt vzzt-bzzt the telephone bullies the worktop.

“Can I speak with Mrs. Hatfield?”

“Who? No one by that name lives here. Can I…?”

The monotonous voice continues.

“Hi, Mrs. Hatfield, I am ringing to tell you that you have been successful in your application for finance from LiteStart. At LiteStart there are no gimmicks or deferred interest, so you can get right on and buy those—“

Rowan puts the receiver down gently. Chatbots are still so stupid, even these days.

Returning to the moth with an unexpected level of curiosity, she crouches in a mourning position, gathering her legs underneath her to get a better look. She examines with a strange pleasure the lifeless critter and traces a deliberate finger over its body, pausing at the spiny ridges to enjoy the rather queer, crackly texture. Glass burrows its way into the skin of her knee as she leans closer to the moth, drawing a steady stream of blood that trickles, soothingly warm, down her leg to meet the floor.

Rowan notices her injury, turning her head to identify the source of a dull pain. And that’s when the doorbell rings.

Post-amble

While “July” discusses dystopian possibilities that shiver with a sense of the too-close-for-comfort, it is not limited to imagining a possible future. Principally, I created this little tale in order to bring to life the ontological approach that my research follows. I draw this approach from Gilles Deleuze and his philosophy of difference. For Deleuze, there is a need to move away from thinking in terms of representation and identity in order to distinguish between difference that is defined by the characteristics of two distinct objects (“I know this is a cat because it is not a dog”), and pure difference, that is, affective intensities that escape identification. By working through this, it is possible—tentatively—to approach the idea that bodies are mobile and fluid, and should not be captured within illusions of fixity.

As such, “July” is an attempt to pay attention to moments that might otherwise be unheard, and to the in-between spaces of more easily recognised events, in order to make more visible the seemingly banal and ordinary forces of life. Think of the root that pushes through the tarmac, the tap that drips sporadically, or the moth that is panicking in the corner, and think of how these moments might lend texture and expressivity to the changing landscape of the story.

The stilted end to the story and the slightly jarring beginning are intentional, partly because “July” is one of many fabulation-vignettes that comprise my thesis. It is one fragmented moment in many moments; part of a patchwork of experiments with writing techniques.

Freya Johnson is a third year PhD candidate in Cultural Geography at the University of Bristol. Her research uses the philosophies of Gilles Deleuze and Félix Guattari in order to explore the performativity and expressivity of creative writing, and to employ writing as a method for producing critically oriented, affective knowledges.

This piece is part of Not afraid of the ruins, our series of science fiction and utopian imaginings.

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La Barceloneta’s Struggle Against (Environmental) Gentrification

March 3, 2018

by Melissa García Lamarca

Ever since the 1992 Olympic Games put Barcelona on the map, the exponential growth of tourism has moved hand in glove with the explosion of gentrification across the city. Overnight tourist stays in city hotels more than quintupled from 3.7 million in 1990 to over 20 million in 2016, and today a prominent anti-tourism movement has led to a crackdown on Airbnb-style rentals and multiple plans to reclaim the city for locals who are increasingly being pushed out of their neighborhoods.

A look at some of the key urban interventions in one of Barcelona’s most affected areas—the iconic beachfront neighborhood of La Barceloneta—serves to illustrate a city-wide urban struggle that evolved in defense of the needs and rights of residents over capital and profit. Understanding these dynamics from an urban political ecology perspective shows us how urban environments and social relations are shaped, re-shaped, and who benefits and suffers in the process.

Transforming La Barceloneta’s borders and local environment

Perhaps unsurprisingly, La Barceloneta was a vastly different neighborhood a century ago. Established in 1753 as a working-class fishing village, it has undergone dramatic social, physical and economic transformations that have had a significant impact on its residents. Boxed in to the east by two factories, to the west by commercial docks, to the north by railroad tracks and to the south by the sea, the transformation of these barriers drove important changes that gradually reformulated the neighborhood as a tourist attraction.

Most notable was the makeover of its seaside, which began in 1966 when several shantytown settlements housing up to 15,000 people were demolished in preparation for a military maneuvre overseen by the dictator Francisco Franco.

Somorrostro 1964. Photo: Ignasi Marroyo, ANC

La Barceloneta’s “rompeolas” during the 1930s.

In the next major transformation during the 1980s in preparation for the Olympic Games, waterfront warehouses, restaurants, and a breakwater were torn down. The breakwater in particular was an important site of leisure and intimacy for locals, given the extremely small size of flats in the neighborhood—an average 30 square meters. The subsequent rebuilding of the beach and creation of new public spaces during this period of transformation were both key in drawing visitors and outsiders to the neighborhood.

As a promenade was created along a newly manicured beach, La Barceloneta’s port was also redeveloped. Tourism was prioritized over existing industrial uses. The neighborhood’s historic fishing activity was reduced and the docklands demolished. While the docklands were relocated behind the city’s Montjuïc mountain, fishing and boat repair activity has been relegated to a virtually hidden corner of the port.

Two more recent developments symbolize the prioritization of capital and profit over La Barceloneta’s residents: the Hotel Vela and the luxury yacht club OneOcean Port Vell. Hotel Vela, officially known as the W Barcelona, is a 5-star hotel inaugurated in 2009, whose construction was promoted by the Barcelona port authority—a non-transparent public-private institution—on public land, a mere 20 meters away from the shoreline, in violation of the Spanish Costal Law which prohibits construction less than 100 meters from the seafront.

Our walking tour group standing at the entrance to the remainder of La Barceloneta’s fishing port. On the right stands one of OneOcean Port Vell’s buildings on the premise

The members-only club OneOcean Port Vell, unveiled in 2012, visually and physically dominates most of the pedestrianized port, fenced around to prohibit public access from the surrounding public space. The port’s boat repair activity, once dedicated to fishing and shipping boats, now caters to this exclusive and luxury niche market.

We won’t move: struggles for a neighborhood for its residents

These transformations, however, have not taken place without resistance. The dockworkers fought against the closure of the docks; although ultimately unsuccessful, their struggle ensured them decent working conditions and salaries that enabled them to continue living in the neighborhood. A grassroots campaign against the Hotel Vela, complete with a music video, was waged to denounce the new development. It continued, however, unabated.

One successful resistance was born a decade ago from several members of the Miles de Viviendas squat in La Barceloneta together with activists from the La Ostia neighborhood association and the Platform in the Defense of the Barceloneta, when the Barcelona city council approved an urban plan in 2007 that involved installing lifts in the neighborhood’s residential buildings. Due to La Barceloneta’s density and the restrictive dimension of most of its buildings, installing lifts entailed demolishing many of them and ultimately displacing 1,500 families—approximately 20% of the neighborhood. Residents believed that this plan would stimulate real estate speculation and encourage a flood of private capital into the area, processes that would expel many of the neighborhood’s working class residents. In response, activists collaborated with the mapping collective Iconoclasistas to create a didactic information pamphlet denouncing the plan. The campaign with the slogan “we won’t move” was ultimately successful and the city withdrew its plan.

“Wake up! No to the elevator plan.” Source: Ecologia Politica

Challenging La Barceloneta’s tourism-gentrification model

Today, urban struggles in La Barceloneta revolve largely around the effects of the unrestrained growth of tourism. Protests exploded in the summer of 2014 when several drunk and naked Italian tourists paraded around the neighborhood without reprisal, sparking a neighborhood mobilization against unregulated tourist flats and disrespectful tourist behavior in open spaces. Indeed, it is not uncommon to see the phrase ‘tourist go home’ spray-painted on walls around La Barceloneta in response to tourist flats and to the trash left behind by tourists on the waterfront and beaches. The collective known as Barceloneta Diu Prou (Barceloneta Says Enough) has been regularly mobilizing over the past three years with other neighborhood and city-wide movements to regulate tourism, participating in groups like the Assembly of Neighborhoods for Sustainable Tourism (ABTS) that seek to abolish tourist flats and stop the new cruise ship terminal proposed for the city, which would significantly increase the number and size of boats and visitors.

In an unprecedented shift of Barcelona’s for-profit model of development catered to visitors over residents, the current city administration has taken measures to abate tourism, such as penalizing illegal tourist flats, imposing a moratorium on new hotels, and raising tourists’ awareness of their inappropriate behavior and environmental impact. But given the decades of growth that the city has experienced underneath that model, a change of development patterns and drivers is slow and difficult to implement.

The experience of La Barceloneta highlights the importance of understanding the long history of mobilization and solidarity in gentrifying neighborhoods where residents might have seen some improvements in their open and public spaces and benefited enhanced access to them, but continue to face the threat of record high flat rental prices, displacement and loss of local culture, and overcrowded plazas, waterfront and beaches. Gaining insight on the impacts of past urban transformations, especially from local residents themselves, is critical to forging more socially just and equitable models, policies and interventions.

This post originally appeared on the Barcelona Lab for Urban Environmental Justice and Sustainability (BCNUEJ) blog.

This post draws on insights from a BCNUEJ walking tour led by local residents and activists: Emma Alari, Santiago Gorostiza, Irmak Ertör and Marina Monsonís.

Melissa García Lamarca is a post-doctoral researcher at BCNUEJ. As a researcher and housing rights activist in Barcelona, she is particularly interested in the financial dynamics driving the rise of the rental housing market and what this means in the context of job and housing precarity. Her research with BCNUEJ’s project on green gentrification (GREENLULUs) explores questions of green growth and social equity, the financial dynamics behind urban greening and community resistance to greening projects.