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Abstract
A distinction is drawn in a developing economy between ‘town’ and ‘country’, or between ‘agriculture’ and ‘industry’. The connections between the two are the supply of agro-inputs, notably food, from the countryside to the town and the supply of capital goods from the town to the countryside. The distinction mirrors the division between the ‘core’ and the ‘periphery’ or between the ‘North’ and the ‘South’ internationally. The Global Value Chain (GVC) that operates here is the demand for agricultural products like food and raw materials by both the core and the periphery and the demand for land by the former. We use the framework of Marxian political economy to appraise GVCs. The latter are embedded in a model of the economy which consists of capitalists and workers. A metric used is the ratio of profits to the wage bill or exploitation. On a constructive note, we make the case for state-induced technological change in the countryside.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
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Additional information
Notes on contributors
Aneesh Correa
Aneesh Correa holds postgraduate degrees from the University of Mumbai and the International Institute of Social Studies, The Hague. His work has embraced conducting school audits, Right to Information, MGNREGA workshops, awareness activities for self-help groups and farmers’ organizations (with Aadhar, 2011); support of Chin refugees as Project Director, Jesuit Refugee Service, 2012; work in rural areas in the state of Maharashtra as Project Officer, Caritas India, 2014; monitoring and evaluating projects as Program Associate, Pratham, 2017–2019; fundraising and communications associate, Apne Aap Women’s Collective, 2022; Donor Relations and Fundraising Officer, Leapforward, 2023. He has published, Coping in Bundelkhand, in Current Politics and Economics of South, Southeastern and Central Asia, 2020, and (with Romar Correa), Capital, not Finance, in Janata Weekly, 2022. Email: [email protected]
Romar Correa
Romar Correa retired as Reserve Bank of India Professor of Monetary Economics, University of Mumbai, in November 2021. He was French Government Post-Doctoral Scholar, 1996–1997, and Visitor, Maison Des Sciences de L’Homme, Paris, October-November, 2004. Among other journals, he has published in Review of Keynesian Studies, History of Economic Ideas, World Review of Political Economy, Brazilian Keynesian Review, Evolutionary and Institutional Economics Review, Brazilian Journal of Political Economy, International Journal of Political Economy, economics e-journal, Journal of Philosophical Economics, International Review of Applied Economics. He has coauthored a book with Amelia Correa, Stock-Flow-Consistent Models and Institutional Variety, 2017.