Accumulation by dispossession is a concept presented by the Marxist geographer David Harvey. It defines

neoliberal Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pej ...

capitalist policies that result in a centralization of wealth and power in the hands of a few by dispossessing the public and private entities of their wealth or land. Such policies are visible in many western nations from the 1970s and to the present day. Harvey argues these policies are guided mainly by four practices:

privatization Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...

, financialization, management and manipulation of crises, and state redistributions.

Practices

Privatization

Privatization Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...

and

commodification Commodification is the process of transforming inalienable, free, or gifted things (objects, services, ideas, nature, personal information, people or animals) into commodities, or objects for sale.For animals"United Nations Commodity Trade Stati ...

of public assets have been among the most criticized and disputed aspects of

neoliberalism Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pe ...

. Summed up, they could be characterized by the process of transferring

property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, re ...

from public ownership to private ownership. According to

Marxist theory Marxist philosophy or Marxist theory are works in philosophy that are strongly influenced by Karl Marx's materialist approach to theory, or works written by Marxists. Marxist philosophy may be broadly divided into Western Marxism, which drew f ...

, this serves the interests of the

capitalist class The bourgeoisie ( , ) are a class of business owners, merchants and wealthy people, in general, which emerged in the Late Middle Ages, originally as a "middle class" between the peasantry and aristocracy. They are traditionally contrasted with ...

, or

bourgeoisie The bourgeoisie ( , ) are a class of business owners, merchants and wealthy people, in general, which emerged in the Late Middle Ages, originally as a "middle class" between the peasantry and aristocracy. They are traditionally contrasted wi ...

, as it moves power from the nation's governments to private parties. At the same time, privatization generates a means for profit for the capitalist class; after a transaction they can then sell or rent to the public what used to be commonly owned, or use it as capital through the capitalist mode of production to generate more capital. The 2022 World Inequality Report, a four-year research project organized by the economists Lucas Chancel, Thomas Piketty, Emmanuel Saez, and

Gabriel Zucman Gabriel Zucman (born 30 October 1986) is a French economist who is currently an associate professor of public policy and economics at the University of California, Berkeley‘s Goldman School of Public Policy, Chaired Professor at the Paris Sch ...

, shows that "the world is marked by a very high level of income inequality and an extreme level of wealth inequality" and that these inequalities "seem to be about as great today as they were at the peak of western imperialism in the early 20th century." According to the report, the bottom half of the population owns 2% of global wealth, while the top 10% owns 76% of it. The top 1% owns 38%.

Mass incarceration

Several scholars have linked mass incarceration of the poor in the United States with the rise of neoliberalism. Sociologist Loïc Wacquant and

Marxist Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflic ...

economic geographer David Harvey have argued that the criminalization of poverty and mass incarceration is a neoliberal policy for dealing with social instability among economically marginalized populations. According to Wacquant, this situation follows the implementation of other neoliberal policies, which have allowed for the retrenchment of the social

welfare state A welfare state is a form of government in which the State (polity), state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal oppor ...

and the rise of punitive

workfare Workfare is a governmental plan under which welfare recipients are required to accept public-service jobs or to participate in job training. Many countries around the world have adopted workfare (sometimes implemented as "work-first" policies) t ...

, whilst increasing

gentrification Gentrification is the process whereby the character of a neighborhood changes through the influx of more Wealth, affluent residents (the "gentry") and investment. There is no agreed-upon definition of gentrification. In public discourse, it has ...

of urban areas,

of public functions, the shrinking of collective protections for the working class via economic

deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a ...

and the rise of underpaid, precarious wage labor. By contrast, it is extremely lenient in dealing with those in the upper echelons of society, in particular when it comes to economic crimes of the

upper class Upper class in modern societies is the social class composed of people who hold the highest social status. Usually, these are the wealthiest members of class society, and wield the greatest political power. According to this view, the upper cla ...

and corporations such as

fraud In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...

embezzlement Embezzlement (from Anglo-Norman, from Old French ''besillier'' ("to torment, etc."), of unknown origin) is a type of financial crime, usually involving theft of money from a business or employer. It often involves a trusted individual taking ...

insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider informati ...

, credit and

insurance fraud Insurance fraud is any intentional act committed to deceive or mislead an insurance company during the application or claims process, or the wrongful denial of a legitimate claim by an insurance company. It occurs when a claimant knowingly attem ...

money laundering Money laundering is the process of illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, sex work, terrorism, corruption, and embezzlement, and converting the funds i ...

and violation of commerce and labor codes. According to Wacquant, neoliberalism does not shrink government, but instead sets up a "centaur state" with little governmental oversight for those at the top and strict control of those at the bottom.

Financialization

The wave of financialization that set in the 1980s is facilitated by governmental deregulation which has made the financial system one of the main centers of redistributive activity. Stock promotions,

Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays Profit (accounting), profits to earlier investors with Funding, funds from more recent investors. Named after Italians, Italian confidence artist Charles Ponzi, this type of s ...

s, structured

asset In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can b ...

destruction through

inflation In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...

, asset stripping through

mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of a company, business organization, or one of their operating units is transferred to or consolidated with another entity. They may happen through direct absorpt ...

, dispossession of assets (raiding of pension funds and their decimation by stock and corporate collapses) by credit and stock manipulations, are, according to Harvey, central features of the post-1970s capitalist financial system. That aspect relies entirely on the fact that the quantity of money in circulation and therefore demand levels and price levels are controlled by the boards of directors of privately owned banks. Those boards of directors are also on boards of corporations and any number of other legal vehicles who are also profiting from asset price swings. At the heart of accumulation by dispossession is the private control of the quantity of money supply that can be manipulated for private gain, which includes creating unemployment or restive conditions in the population. This process is well documented in English history as far back as prior to the founding of the Bank of England and before that in the Netherlands. The process works well with or without a central bank and with or without gold backing. The details are also manipulated from time to time as needed to satisfy popular rage or apathy.

Management and manipulation of crises

By creating and manipulating crises, such as by suddenly raising

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...

s, poorer nations can be forced into

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...

, and agreeing to such deals like that of the structural adjustment programs can yield more damages to those nations. Harvey reasoned that this is authorized by parties such as the U.S. Treasury,

World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...

and the

International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...

State redistributions

The

nation-state is one of the most important agents of redistributive policies. Even when privatization or commodification appear to be profitable to the lower class, in the long run it can affect the economy negatively. The state seeks redistributions through a variety of things, like changing the tax code to profit returns on investment rather than incomes and wages (of the lower classes).

Examples

Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013), was a British stateswoman who served as Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of th ...

's program for the privatization of

social housing Public housing, also known as social housing, refers to Subsidized housing, subsidized or affordable housing provided in buildings that are usually owned and managed by local government, central government, nonprofit organizations or a ...

in Britain was initially seen as beneficial for the lower classes which could now move from rental to ownership at a relatively low cost, gain control over assets and increase their

wealth Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an ...

. However, housing speculation took over following the transfers (particularly in the prime central locations), and low-income populations were forced out to the periphery. Ultimately, the new homeowners were also borrowers and paid portions of their yearly income as interest on long-term mortgages, effectively transferring a portion of their wealth to the owners of banks with licenses to create debt money from fractional reserves. Thatcher's council privatization scheme increased the potential number of borrowers in the UK by up to 20% of UK residents who lived in council housing at the end of the 1970s. Contemporary examples include attempts to deprive people of land in places like Nandigram in

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

and eMacambini in

South Africa South Africa, officially the Republic of South Africa (RSA), is the Southern Africa, southernmost country in Africa. Its Provinces of South Africa, nine provinces are bounded to the south by of coastline that stretches along the Atlantic O ...

. Privatization is the process of transferring public assets from the state to the private companies. Productive assets include natural resources, such as earth, forest, water, and air. Such are assets that states have used to hold in trust for the people it represents. To privatize them away and sell them as stock to private companies is what Harvey calls accumulation by dispossession. State redistributions can be in the form of contracts given to power groups: for large infrastructures, services paid by the state and carried out by private enterprise, defense developments, research projects. One would have to find out if those contracts serve public good in a fair way or if they sustain a power structure. Also, the granting of licenses for all sorts of state sanctioned activities can turn out as unfair wealth distribution. Another important redistribution channel is by State supported financing of private enterprise activities.

Relation to Marxism

Harvey links these practices to what

Karl Marx Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...

called original or primitive accumulation, and ties these to examples from the real world. He therefore draws on the theory of ongoing primitive accumulation by

Rosa Luxemburg Rosa Luxemburg ( ; ; ; born Rozalia Luksenburg; 5 March 1871 – 15 January 1919) was a Polish and naturalised-German revolutionary and Marxist theorist. She was a key figure of the socialist movements in Poland and Germany in the early 20t ...

as laid out in The Accumulation of Capital. The neoliberal

modernity Modernity, a topic in the humanities and social sciences, is both a historical period (the modern era) and the ensemble of particular Society, socio-Culture, cultural Norm (social), norms, attitudes and practices that arose in the wake of the ...

is, according to Harvey, a modernity in which dispossession plays a large role and in which the capital class is gaining power at the expense of the labour class.

Contemporary movements against accumulation by dispossession

* Abahlali baseMjondolo in

* The

Bhumi Uchhed Pratirodh Committee Bhumi Uchhed Pratirodh Committee ('Committee against Land Evictions') was an organisation in West Bengal, India, formed to oppose the set-up of a Special Economic Zone (SEZ) in the rural area of Nandigram. History It formed an important role in r ...

* The

EZLN The Zapatista Army of National Liberation (, EZLN), often referred to as the Zapatistas (), is a Far-left politics, far-left political and militant group that controls a Rebel Zapatista Autonomous Municipalities, substantial amount of territory ...

Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...

Fanmi Lavalas Fanmi Lavalas (; ''lavalas'' is Haitian Creole for 'avalanche' or 'flood' ) is a social-democratic political party in Haiti. Its leader is former Haitian President Jean-Bertrand Aristide. It has been a powerful force in Haitian politics since 199 ...

in Haiti * The

Homeless Workers' Movement The Homeless Workers Movement (, MTST) is a social movement in Brazil. It originated from the Movimento dos Trabalhadores Rurais Sem Terra (). Although the MTST can trace its first urban activism efforts to the occupation of Campinas in São P ...

Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...

* The Landless Peoples Movement in South Africa * The

Landless Workers' Movement The Landless Workers' Movement (, MST) is a social movement in Brazil aimed at land reform. Inspired by Marxism, it is the largest such movement in Latin America, with an estimated informal membership of 1.5 million across 23 of Brazil's 26 sta ...

in Brazil * Movement for Justice en el Barrio in

the United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

Narmada Bachao Andolan ''Narmada Bachao Andolan'' (NBA, , 'Save the Narmada River Movement') is an Indian social movement spearheaded by native tribals (''adivasis''), farmers, environmentalists and human rights activists against a number of large dam projects across ...

in India * The Western Cape Anti-Eviction Campaign in South Africa * Occupy Homes in the United States *

Take Back the Land Take Back the Land is an American organization based in Miami, Florida, devoted to blocking evictions, and rehousing homeless people in foreclosure, foreclosed houses. Take Back the Land was formed in October 2006 to build the Umoja Village sha ...

in the United States

References

Works cited

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