by JASON HICKEL
A crucial strategy for transformation in the 21st century.
The concept of delinking has gained traction recently among some political movements in the global South, including with an international conference in Mexico on this topic that took place last month.
What is delinking, and how can it be achieved?
Delinking was best described by the Egyptian economist Samir Amin. He started from the observation that the capitalist world economy is characterised by a stark division of labour between the imperial core (often glossed as the global North) and the periphery (the global South).
In this system, the core states seek to monopolise the most profitable forms of production and establish control over global commodity chains, while preventing sovereign development in the periphery to maintain it as a subordinate supplier of cheap labour. Southern labour and resources are roped into producing things like sweatshop goods and plantation commodities for the core, at compressed market prices, rather than producing for local human needs and national development.
Amin pointed out that this system is characterised by large core-periphery price disparities and therefore unequal exchange in international trade. The South is made dependent on imports of technologies and producer goods from the core at monopoly prices, and to pay for this they have to export massive quantities of artificially cheapened commodities and manufactured goods, thus generating a net-transfer of value from the periphery to the core. This enriches the core but drains the periphery of resources necessary for development.
This system produces and perpetuates poverty and underdevelopment in the South. There is nothing inevitable about poverty; it is an effect of imperialist dynamics in the world economy. The global South has extraordinary productive capacities; massive labour power, land, factories and resources. The problem is they do not have sovereign control over production.
To address this problem, Amin called for a process of delinking, which for him contains two key elements:
1) Delink from exploitation by the imperial core. Southern states should end dependence on imports from the core, and end dependence on imperial capital and core currencies, in order to build economic sovereignty and mitigate unequal exchange. Note that Amin was not calling for autarky or isolation; on the contrary, he actively encouraged South-South cooperation and trade as a tactic for overcoming imperial dependencies.
2) Delink from the capitalist law of value. Under capitalism, production is organised around whatever is most profitable to capital (largely, foreign capital). In the South, capital prefers to exploit cheap labour in global supply chains than to invest in technological innovation and industrial upgrading. This inhibits development. Southern governments must overcome this and align production to a new law of value: human needs and national development.
How can delinking be achieved in the 21st century? Some basic principles include the following:
A first step is to reduce imports from the core. This can be achieved by reducing unnecessary imports (luxury goods, etc), while substituting necessary imports where possible with domestic production, or through South-South trade, ideally using swap lines to trade goods outside the US dollar or Euro. Taking this step reduces pressure for exports to the core (and reduces the need for core currencies), and therefore reduces exposure to unequal exchange.
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