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Equality and International Justice

Comments on Debra Satz

 

Daniel Little

Bucknell University

 

American Philosophical Association

Eastern Division

12/29/98

Introductory

The question that Debra Satz poses is a critical one: is there a normative basis—grounded in principles of justice or elsewhere—on the basis of which to evaluate, judge, or criticize economic and political arrangements and conditions outside one’s own country?  It is relatively clear that there is moral salience in the fact of extreme poverty in the developing world; but what is the basis of that moral salience, and what obligations does it create for citizens, organizations, and governments in developed countries?  This is the foundational problem of international ethics, or more pointedly, development ethics.  Satz’s essay represents an important and credible effort.  It is rich, careful, and nuanced.  In the final analysis, however, I believe that it is less than fully successful.  It identifies the wrong problem—inequality rather than poverty; and for the problem it identifies it offers the wrong basis for judgment—non-domination rather than exploitation.

The domain of the question is this: Which among various troubling facts in the world today—high infant mortality, low longevity, extreme inequality, extremely low incomes (poverty), extreme differences in life prospects and well-being—are morally salient?  What ought to be done about these morally salient facts?  And who ought to do or effect the changing—that is, how do these morally salient facts sort out into obligations for specific agents (persons, organizations, governments)?  What, in short, is the normative ground—or the collection of grounds—governing the existence of moral obligations for countries and citizens of the affluent world towards countries and citizens of the poor world? 

            My central point in this commentary is that there are two distinct moral problems when we consider the economic and political circumstances of the developing world: poverty and inequality.  The problems are sometimes conflated, and indeed they are certainly linked in complex ways.  But they are ultimately distinct, and they ought not be collapsed onto a single condition.  And even if we came to the conclusion that certain, even extreme, forms of inequalities are unproblematic on grounds of a theory of distributive justice, the fact of extreme and persistent poverty remains a morally compelling circumstance in urgent need of remediation.  Satz puts her argument in terms of inequalities, and the circumstances under which a given inequality is morally suspect.  But I maintain that this is to get the focus slightly off center: it is poverty, not inequality per se, that is the morally compelling fact about the developing world.  But this implies that a theory of inequalities is secondary; the primary issue is poverty and the human bad that it represents.

            Poverty is the central moral problem of development because of the extreme effects which poverty has on the life prospects and well-being of the majority of the world’s population.  It is not the breadth of the gap between the typical Indonesian rice farmer and the typical Newton doctor that matters; it is the fact that the former is not in a position to fully develop his or her human capabilities to their fullest extent.  The fact of the persistence of extreme poverty, then, provides the strongest possible imperative toward the orientation of economic development policy.  The debt to Sen, Nussbaum, and others in the “realization of capabilities” family of views is evident in these remarks.  These points will be explored below.

            Distributive justice does have relevance to some of the inequalities that exist in the developing world today (and between the developing world and the developed world); but not primarily in the way that Satz believes (in my view).  To be deprived of access to a deserved share of the world’s material wealth is a bad thing in and of itself; and if the fact of one’s deprivation derives from unfair actions taken by others, it is unjust.  So certain kinds of inequalities constitute an injustice, not as a result of the forms of domination that they facilitate (as Satz argues), but because they are the effects of processes which unfairly deprive some people of the means of material well-being for the benefit of others.  We may describe an economic relationship between two parties that involves a coercively enforced transfer of wealth from one to the other as an instance of exploitation.  The case is often made that the poverty of at least some developing countries (and the extreme poverty of some segments of many developing countries) results from straightforward exploitation by other agents (multinational corporations, extranational investors, other governments).  It is also evident that this is not the case in all instances; there are countries and segments of countries which are poor for reasons that do not derive from exploitation (for example, low resource base, low technological development, low productivity of labor).  Where exploitation exists, those who benefit from a pattern of exploitation have specific duties of justice to rectify the system and effects of exploitation.  So the conclusion that I would come to concerning inequalities per se is this: persons, organizations, and states which benefit from the exploitation of others have a duty to stop exploiting, and a duty to correct the effects of past exploitation.  So: in assessing the justice or injustice of a given set of inequalities, it is critical to diagnose the causal or systemic origin of those inequalities.  The debt here to analytic theories of exploitation along the lines of Roemer is apparent here.  These points too will be explored below.

Equality as the condition of non-domination

Satz is interested in providing a principle that will serve as a criterion of unjust inequalities.  Satz writes:

 

“My view is that equality in some distributional dimension is relevant to treating people with equal respect only insofar as distributional equality is needed to prevent one person or group or institution from dominating another person or group” (2).

 

Satz emphasizes the relational character of the circumstances of justice: the assessment of the justice or injustice of a given set of arrangements depends crucially on the human relationships embodied in those arrangements.

            There are several noteworthy points about this criterion.  First, her criterion involves diagnosis of causation.  But her criterion focuses on the effects of a given set of inequalities, whereas the exploitation criterion identifies those inequalities which have a certain kind of cause or origin.

            Note that this principle has the implication (which Satz accepts late in the paper) that, if A and B are causally isolated from each other, then inequalities between them in any dimension are not morally salient qua inequalities.  It follows from this criterion, however, that it is very possible for a set of inequalities to be exploitative (caused by an unfair system of economic and property relations) but non-dominative (because the disadvantaged are insulated in some way from the influence of the advantaged)—in which case the inequalities are not unjust!  The principle of non-domination is therefore incomplete, in that it fails to capture a set of inequalities which are in fact unjust (according to common moral intuitions, anyhow).

The principle is defective in the other possible way too, however, in that it identifies certain inequalities as unjust (because they give rise to the possibility of some sort of weak “domination” by some of others), which we would not ordinarily consider unjust.  For example, there may be inequalities of talent (e.g. speaking ability, media skills) that give some people greater likelihood of wielding political power.  Are these inequalities morally suspect?  Or is the fact that these factors exercise their influence through democratic institutions sufficient to make them acceptable?  There are some unequally distributed assets (e.g. “people skills”) that permit some to “dominate” others in the political process; but we would not wish to attempt to “correct” such inequalities.  (We might, however, have a concern to mitigate the coercive powers created by such talents.)  This is a Nozick-like point.

The supposed link between inequality and domination is weaker than Satz’s principle presumes.  There are situations of domination which work perfectly well within the context of substantial equality (Cuba); and it is possible to have high distributional inequality and low domination (India). 

Finally, the link between inequality and domination implied by the principle leads us off in the wrong direction when we begin canvassing remedies.  The principle implies that the appropriate remedy is to reduce the suspect inequalities; whereas it is often much more credible to hold that the remedy is institutional reform in the direction of greater democracy (so that the inequalities in question will be less likely to generate a pattern of domination).  The remedy for domination—even domination induced by high distributional inequality—is not necessarily to reduce the inequalities, but to introduce political mechanisms that guarantee democracy even within the context of unequal assets. 

If it is non-domination that we are concerned with, then our focus should be on the full range of remedies available to reduce the scope of domination, including especially democratic institutional reforms.  Material inequality is sometimes a source of power leading to the possibility of domination; but so are many other factors.  It would be more economical to hold a non-domination principle directly: don’t permit domination; encourage democracy. 

 

I will briefly note a point of agreement with Satz.  She spends significant time on assessing the applicability of the difference principle to the world’s population as a whole.  She is right, I believe, in judging (against Pogge) that this is unjustified in general.  The argument for the DP depends on the facts associated with “fair conditions of social cooperation” within a system of interrelated activity.  In general, this is not an apt description of the whole of the world’s population.  And where two representative positions fall within substantially distinct economic systems—the peasant farmer in 1900 North China plain and the factory manager in 1900 Pittsburgh—there is no credible sense in which the well-being of each depends on the productive contribution of the other; so there is no basis of fairness to dictate that both must be included within a single global “original position”.  As above: where we should insist on the dictates of distributive justice is in instances where unfair and exploitative transfers take place.

Assessment 

I don’t find that the non-domination principle helps much in assessing international inequalities.  It does not identify the most basis deficiency created by extreme inequalities, which is the widespread frustration of full human development. Unfair material deprivation is morally problematic in its own terms—not merely because it gives rise to the further possibility of domination by the affluent.  The non-domination principle doesn’t give traction on the human welfare deficiencies created by extreme inequalities adequately.  It’s not that people are vulnerable to domination that is wrong in Brazil’s income distribution; it is that citizens in the bottom 50% are blocked by material circumstances from achieving full human development.  Non-domination is important; but so is just treatment and an end of poverty.

Second, the non-domination principle doesn’t give appropriate attention to exploitation and causal processes generating inequalities.  These are important independent of domination and are an independent source of injustice.

Third, the non-domination principle suggests the wrong remedy (in some cases), since the most credible remedy to a situation of domination is institutional reform towards greater democracy in international regimes, not correction of the underlying inequality.  Elephants and mice don’t work out harmonious life together by reducing the size of the elephant; they do so through political arrangements which permit the mice to adequately represent their interests through political institutions of democracy.  The superior economic power of the US vis a vis Honduras allows the former to “dominate” the latter in international regimes.  But this does not imply that the right thing to do is to end the inequality, but rather to create more democratic international regimes.

Human rights

            I turn now to a different point, concerning the hybrid nature of Satz’s position.  She explicitly joins together a human rights view (“a threshold below which no human being can justifiably fall”) and a criterion of the justice of inequalities among individuals above the threshold (“avoid inequalities which all a person or group to dominate other persons or groups” [9, 19]).  In fact, when she summarizes the view in the conclusion, it is clearly a hybrid view: first secure human rights, basic needs, and democratic participation; then assess equality.  But it appears to me that the human rights and sufficiency principle carries almost all of the weight; and it is not argued or analyzed.  Satisfying the “high sufficiency” criterion will require heroic efforts on the part of the global system, and will require real political will and normative conviction to bring about.  So it seems important to establish the compelling basis of the principle of establishing a high minimum.  Here the complaint is that Satz assumes away too much.

A minor point: Satz probably pays too much attention to the need to “appear in public without shame.”  This is a highly subjective; what about the application in Beverly Hills?  If a Ford Taurus is a humiliating ride in La Jolla, does this have implications for justice?

Status of the moral obligations created here

What is the status of the obligations created for “us” in face of, for example, premature mortality in Senegal?  (Satz finds it obvious that such circumstances are morally unacceptable.)  Does she believe that “we” then have strict obligations to take effective remediative action (as argued by Peter Singer, for example)?  Is it a defeasible moral claim on our discretionary income?  Is it a strong or weak claim on the fiscal resources of “our” state?  Is it a perfect or an imperfect obligation?  Does it require heroic efforts on our part, or would we endorse something like this as a principle delineating our obligations:

 

·      Satisfy urgent contemporary needs of household or polity first; then direct discretionary income and wealth toward alleviation of the urgent poverty of others.

Dimensions of inequality in developing world

            I turn now to more general points.  I believe that it is useful for a discussion of global inequalities to give a more nuanced account of the varieties of inequality in play internationally.  A national economy consists of a system of production and exchange.  It constitutes a system of economic slots for individuals, with associated incomes.  It is always appropriate to ask about the justice of these basic arrangements.  Rawls’s theory of justice is a highly appropriate basis for evaluating the economic arrangements of any national economy: are positions open to all in a system of fair and impersonal equality of opportunity?  Are inequalities distributed in a way that improves the position of the least-well-off?  Does the system represent, overall, a fair system of social cooperation?  Another approach which has promise is the theory of exploitation; we can view some economic systems as systems of surplus or wealth extraction; and we can attempt to identify patterns of exploitation through which some individuals benefit at the expense of others.

Let us briefly inventory some of the forms of inequality that are to be found in the developing world.

Within-country inequalities

·      Wealth and income

·      Political power

·      Coercive power

·      Access to powerful institutions

·      Political liberties and rights of participation

·      Access to health, education, nutrition

·      Attainments in terms of development of human capacities

Across-country inequalities

·      Citizens of country A have greater political liberties than those of country B

·      Standard of living—life expectancy, health status, educational attainment

·      Human capabilities realization

·      Consumption

·      Wealth and income

 

Let’s take one or two of these and test them against the Satz position.  The 50th percentile of Canada’s GDP in 1997 was $16,000 [?]; in Indonesia the 50th percentile of income was $250 [?].  Does the Canadian income result from exploitation of Indonesia?  Does it give rise to the ability of the median Canadian to exercise political or social power over the median Indonesian?  If neither is true, then this inequality is not morally salient.  (The absolute poverty of the median Indonesian is salient; but not on grounds of inequality.)  in other words: the moral principles associated with equality do not demand that Canada ought to tax itself in such a way as to distribute a large proportion of its national income toward relieving Indonesian poverty.  (An interesting collateral point: if the moral theory of equality did have this consequence, the elephantine disproportion of population between Canada and Indonesia would imply dramatic reduction in Canadian standard of living without visible improvement in Indonesian standard of living.)

The bad of poverty

            I turn now to a brief exposition of the two substantive points that constitute my central disagreement with Satz’s approach: the overriding importance of poverty rather than inequality, and the salience of exploitation rather than non-domination as the source of injustice in inequalities.

            A central focus of any discussion of ethical issues in development is on the problem of poverty and poverty alleviation.  Why is this so?  Why should we place the problem of poverty ahead of other important values in the context of development and modernization—e.g. provision of clean, safe urban environments, preservation of environmental resources, or raising the average standard of living for the whole population?  Why is poverty such a central concern?  The most fundamental way of approaching this problem is to ask, what is the fundamental good which underlies judgments of value in social decision-making?  One particularly compelling answer to this question is this: it is the example of a human life lived well and fully, in circumstances which embody the freedoms of the individual and the rights and liberties of all citizens.  What, then, is involved in living well? 

            It is important to explore a detailed consideration of the bad of poverty, and more generally, the ways in which we may most fruitfully think about the human goods promoted by economic development.  Here we consider various theories of human need and human welfare, and then turn to a more extensive discussion of what I judge to be the most fruitful conception: A. K. Sen's framework of capabilities and functionings.  On this approach, the good of development and the bad of poverty can both be understood in terms of the ability of typical persons to better realize their human capacities. 

What assumptions can we make about the generic person?  The human individual possesses

·      a plan of life,

·      a set of needs,

·      a conception of the good for him- or herself,

·      a set of rights and liberties

·      set of preferences that derive from needs and the conception of the good.

 

The bad of poverty is that material deprivation makes it difficult or impossible for the person to come close to fulfilling his or her human capabilities; to satisfy human needs; to carry out a complex plan of life; to satisfy his or her conception of the good; and to fully exercise basic rights and liberties.

Quality of life, capabilities, functionings

            We sometimes understand the problem of poverty in income terms: the poor are identified as persons and groups falling below a given level of income.  The rationale for this approach is that the satisfaction of human needs—food, clothing, shelter, medical care, education, and so on—requires income; so having low income strongly reduces the ability of persons to satisfy minimal human needs.  This approach needs qualification on several grounds.  First, it is clear that income is not the ultimate value at issue in poverty alleviation.  The ultimate concern is with the ability of the poor to live fully human lives—to fulfill themselves as full human beings.  Increasing the realization of human capabilities by the poor (so eloquently stressed by A. K. Sen[1]) is the goal toward which poverty alleviation is directed. 

            Sen’s basic insight is that well-being is best defined in terms of the individual’s capability to become a fully functioning human being.  “In assessing the standard of living of a person, the objects of value can sensibly be taken to be aspects of the life that he or she succeeds in living.  The various ‘doings’ and ‘beings’ a person achieves are thus potentially all relevant to the evaluation of that person’s living standard” (Sen 1985:29).  If we were fortunate enough to live in a world in which all persons, rich and poor, were fully capable of realizing their human capacities, then the issue of inequalities of income and wealth would be of secondary concern.  In our world, however, the limitations on personal development imposed by poverty are all too obvious: malnutrition, illiteracy, poor health, boring and dangerous conditions of work, and early mortality are plainly serious obstacles in the way of full human development for the poor.

            Second, it must be noted that increasing the realization of capacities can be achieved through other means besides simply raising incomes; putting the point in another way, it is possible for the poor in one society to have higher income and lower capacity realization than the poor of another society, due to differences in the public provision of capacity-enhancing amenities.  Societies in which there is extensive provisioning of education or health services, for example, will have a higher level of well-being in its poor population—even though the absolute income flowing to this stratum may be as low or lower than that of other societies.

            This point brings to the fore a third qualification of the income-based criterion of poverty.  Given the possible divergence between income and capacity-realization, we need to have other ways of measuring the extent and depth of poverty in different countries.  It is here that a variety of “quality of life” indicators prove their merits.  For it is possible to measure other variables besides income that have a more immediate relation to capacity-realization.  Malnutrition is directly and patently incompatible with full realization of human capabilities; so, other things being equal, one society with a higher level of malnutrition than another is worse-off from the point of view of the condition of the poor.  Longevity is a general indicator of the quality of health services available to the population (and the poor, since poor health care for a large share of the population will translate into reduced life expectancy on average).  Infant mortality statistics are generally taken to be another sensitive indicator of the health and nutrition status of the poor; downward fluctuations in the latter lead to significant increases in the former.  Likewise, data about school enrollments at various levels—primary, secondary, post-secondary—provide important information about the extent to which a given society is succeeding in providing education to its poor; and lack of education is plainly intimately related to obstacles in the way of capability-realization.  (Literacy statistics can serve the same purpose.)

            Measures of these non-income variables provide a fairly sensitive indicator of the condition of the poor in a way that permits informative cross-cultural comparisons.  Several important indices of well-being have been constructed using such information.  Central among these are the Physical Quality of Life index and the Human Development index.

Nussbaum’s formulation

            Martha Nussbaum offers an analysis of gender issues in development that flows from the “capabilities” approach to the analysis of quality of life (Nussbaum, 1995).  Advocated and developed by Amartya Sen in a variety of writings, this approach attempts to define well-being in an objective way, by identifying a set of core human capabilities that are critical to full human functioning and assessing well-being (and the success of development policies) by the degree to which the individual is in circumstances which lead to the realization of these capabilities.  The approach is studiedly critical of standard utility and preference-satisfaction approaches to the measurement of well-being.  Along with its predecessor volume, The Quality of Life (Nussbaum and Sen, eds., 1993), the book provides a superb basis for discussions of justice and morality within the context of economic development policy.  (It should be noted that the Human Development Report, published annually by the United Nations Development Programme, offers development statistics for about 150 countries that are designed to provide empirical information about quality of life in developing countries.  The methodology of these reports is very much influenced by the capabilities theory advanced by Sen, Nussbaum, and others.)

            The core of the theory is a principled account of a set of fundamental human capabilities which are held to be essential to a good human life.  The Aristotelian origins of the approach are manifest.  Martha Nussbaum’s essay, “Human Capabilities, Female Human Beings,” provides an effective exposition of the theory (as does David Crocker’s piece in the same volume).  It is Nussbaum’s contention that we can say a great deal about what is needed for a good human life; and this account is substantially independent of cultural variations (that is, human beings have the same capabilities for functioning in a wide variety of social and cultural settings).  The capabilities involved in a good human life may be listed and justified, and the resulting list can serve as both a guide and a critical standard for development policy.  Nussbaum devotes much care to the composition of this list; in brief, it includes:

 

·      Being able to live to the end of a human life of normal length.

·      Being able to have good health, adequate nutrition, adequate shelter, opportunities for sexual satisfaction and choice in reproduction, and mobility.

·      Being able to avoid unnecessary and non-beneficial pain and to have pleasurable experiences.

·      Being able to use the senses, imagine, think, and reason; and to have the educational opportunities necessary to realize these capacities.

·      Being able to have attachments to things and persons outside ourselves.

·      Being able to form a conception of the good and to engage in critical reflection about the planning of one’s own life.

·      Being able to live for and to others, to recognize and show concern for other human beings.

·      Being able to live with concern for and in relation to animals and the world of nature.

·      Being able to laugh, to play, to enjoy recreational activities.

·      Being able to live one’s own life and no one else’s; enjoying freedom of association and freedom from unwarranted search and seizure.[2]

 

            Nussbaum characterizes the significance of this list in these terms: “My claim is that a life that lacks any one of these capabilities, no matter what else it has, will fall short of being a good human life” (p. 85).  Further, she maintains that the list, and its associated argumentation, ought to be taken seriously by development theorists in the design of development strategies.  Public policy must be guided by a conception of the human good that gives the policy maker strong guidance in selecting goals and priorities for the development process.  “The basic claim I wish to make . . . is that the central goal of public planning should be the capabilities of citizens to perform various important functions” (Nussbaum and Glover, p. 87). 

Exploitation

            There is a class of international inequalities that poses an element of urgent moral concern.  These are inequalities that result from exploitation: coercively facilitated transfer of resources and commodities from one person or group to another.  An international inequality is morally troubling if it results from a structure of economic activity in which the exploited party is coercively bound to the relation, and in which the exploited party could have done better if he/she had been permitted to exit from the arrangements with a share of the resources in play.  It is easy to think of international state-state relations which are exploitative in this sense.  It is also easy to think of international inequalities which do not result from exploitation.  And if exploitation is the basis for concern about inequalities per se, then it follows that not all international inequalities are morally problematic.

            Exploitation may be defined in terms of coercion and surplus extraction; it describes a transfer of wealth, labor time, or products from one group or individual to another through "unfree" (coercive) mechanisms.  Marx's primary use of this concept is in his critique of the capitalist economy.  But exploitation is also relevant to the forward-looking problems of the global economy.  For once the formal structure of exploitation has been analyzed, it is possible to ask whether, and in what circumstances, global exploitation might occur, and it may be possible to use some of these ideas in order to provide a basis for judging international justice.

            What is morally offensive about the inequality that exists on a coffee plantation between peasant laborers and the owners and managers?  It is that the former are not reaping a fair share of the joint product; they are being exploited by the owners.

            Examples of international inequalities that derive from exploitation include:

 

·      Purely extractive regimes that transfer resources from A to B through a coercive mechanism. 

·      Employment regimes that suppress the wage in the domestic economy—e.g., prison labor in China, factory labor in countries which use repression to restrict labor organizations.

·      Investment and capital regimes that have the effect of exporting the surplus product of a given national economy—thereby blocking the possibility of further productive investment in that economy.

 

Examples of inequalities that do not derive from exploitation:

 

·      China’s poverty in the 18th century.  In this instance a low per capita asset base and a low level of development of technology implied poverty – not a systematic extraction of resources. 

·      Poverty in Sudan, resulting from desertification and low asset base.

 

This approach requires that we ask the causal or social systemic question: does the poverty or disadvantage of Y derive from the affluence of X (symmetrically, does the affluence of X derive from the poverty of Y)?  If not, we consider that the corresponding inequalities are not the result of exploitaiton, and therefore not unjust.

            Which cases of international inequalities represents instances of exploitation? And are there reasons for development policy makers to avoid a set of arrangements because they are exploitative?  John Roemer's theory of exploitation has shaped discussion of this issue in recent years.[3]  Roemer's theory is intended to be general in the respect that historical forms of exploitation--feudal exploitation, capitalist exploitation, socialist exploitation--may be seen to be special cases of the general theory.  Roemer introduces a preliminary definition of exploitation in terms of socially necessary labor time for subsistence.  A exploits B just in case A works less than the socially necessary amount of labor time, while B works more, and A's advantage depends upon B's disadvantage.[4]  Roemer's general theory of exploitation takes the form of an analysis of the production process in a given society in terms of hypothetical alternative arrangements.  "A group [will] be conceived of as exploited if it has some conditionally feasible alternative under which its members would be better off."[5]  This criterion is intended to capture the connection between exploitation, coercion, and alternative production arrangements.  That is, if there is an alternative form of production which some class in society could adopt by withdrawing its share of the productive resources which would leave its members better off, then that class is being exploited by other classes in existing production arrangements.  On this criterion capitalist society is exploitative because it depends on a coercively-enforced system of property arrangements in productive assets through which a minority class derives a higher than average income at the expense of the majority class of workers.  Capitalist exploitation may be overcome by distributing productive assets on the basis of equal shares to each person.

            Roemer applies this framework to the problem of socialist exploitation as well.  "A coalition is socialistically exploited if it could improve its lot by withdrawing with its per capita share of society's assets, once alienable assets are distributed equally."[6]  In applying this criterion we are to imagine that capitalist exploitation has been abolished through equal distribution of alienable assets (land, factories, mines, and other forms of capital), but that inequalities of income still persist because of inequalities of talent, skill, and the like.  This remaining inequality is what Roemer calls socialist exploitation.

            It is intriguing to consider possible extensions of this approach to the problem of international exploitation.  Such an extension depends critically on deciding which assets “belong” to a particular nation or place, in order to establish the baseline of a group’s “per capita share of society’s assets”.  Is the baseline a per capita share of the planet’s assets, or a per capita share of the assets of one’s home nation or region?  If the former, then justice or non-exploitation requires dramatic redistribution; if the latter, we need further analysis to determine if a given global inequality is the result of international exploitation.

            A central idea in this account is the notion of per capita assets.  A per capita share of productive assets may be defined as an average share of each type of productive asset--industrial capacity of various types, crop land of various fertilities, transportation and communication assets, etc. This analysis can be converted into per capita income terms quite simply; each type of asset generates an average amount of income per unit of labor in current technical conditions of production.[7]  The basket of per capita assets then generates a per capita income which is the sum of the incomes generated by a share of each type of asset. 

            On these assumptions reference to per capita assets can be replaced by reference to per capita income.  Thus socialist exploitation reduces to certain types of inequalities of per capita incomes among groups.  The qualification required here concerns the causes of these income inequalities.  In order for inequalities to count as exploitative, it is necessary to show that the higher incomes flowing to one group depend upon the productive activity and lower incomes of the other group.  (This captures the idea of surplus extraction in a more general way.)  And it is necessary to show that these inequalities are brought about through a coercive process.

            How does this criterion apply to specific cases?  If there is a coercively maintained extractive regime in place, then there is injustice.  But if the poverty of the place derives solely from asset inequalities (soil, minerals, forests, fisheries, human capital), then there is no injustice.  Corruption of officials leading to less than dynamic growth represents injustice—but only internal to that place.

Let us tell a story that constitutes a set of internationally exploitative circumstances—call it Honduras.  The fruit companies buy huge plots of land at bargain prices (through friendly relations to the state).  They create a sharecropping regime; suppress the wage; suppress emergence of a peasants’ union; block urban migration; impede the emergence of alternative more economically favorable enterprises; and export the profits of the dominant agricultural product.  Relations to a friendly and repressive state are essential, and are maintained through generous financial contributions (bribes). 

            This ideal type fully embodies the characteristics of international exploitation.  The poverty of the campesino is coercively and systemically enforced for the benefit of others; it is exploitative; and it represents a form of inequality that must be counted unjust.

            Now consider a second case: Mongolia.  Here we imagine a large population; low assets per capital; subsistence smallholding economy; few exports or imports; and crushing poverty deriving from low productivity and low asset base.  Here we would be forced to conclude that the poverty of the population does not derive from exploitation, and is not unjust.  (It is morally problematic for other reasons.)  India is probably such an instance.

Are there special moral obligations created by the fact of exploitation for the affluent world?  Surely there are (stop exploiting; stop benefiting from exploitation; contribute to compensatory justice schemes).  There are also general “imperfect” obligations created by our common humanity.  But there is a special force in the principle that we ought not profit from injustice or exploitation.

Conclusions

            I have taken the occasion of this comment to offer an alternative conception of the moral facts presented by conditions in the global economy today, and an alternative conception of the criterion of injustice which marks certain inequalities as morally objectionable.  These comments take us to a series of conclusions.

 

1.     The leading moral value in development is to facilitate economic and political development in all countries to most rapidly reduce poverty.

2.     This objective gives a moral basis for affluent nations to provide resources and help in achieving these goals.

3.     Where exploitation exists, a special (perfect) obligation exists:

a.     to reform so as to eliminate exploitation

b.     to contribute to a process of compensatory justice.

4.     Favor democracy and its conditions

5.     Agents—citizens, organizations, and governments—ought to recognize their humanitarian duties (towards alleviating poverty) and duties of justice (to correct patterns of exploitation and to cease benefiting from unfair terms of economic exchange with poor countries).

 



[1] See, for example, “Capability and Well-Being” in Nussbaum and Sen, eds., 1993.  Crocker (1992) provides a very clear exposition of the theory.

[2] This list largely quotes Nussbaum’s language, pp. 83-85.

[3] Roemer's theory is presented in A General Theory of Exploitation and Class (Cambridge, Massachusetts: Harvard University Press, 1982).  The main ideas of this theory are summarized in "New directions in the Marxian theory of exploitation and class," John Roemer, ed., Analytical Marxism, pp. 81-113.  Note also his arguments to the effect that exploitation is not the central moral issue in Marxism in "Should Marxists be interested in exploitation?", John Roemer, ed., Analytical Marxism, pp. 260-82.

[4] Roemer, "New directions in the Marxian theory of exploitation and class," p. 86.

[5] ibid., p. 103.

[6] ibid., p. 109.

[7] Note the formal parallel between this concept and Marx's analysis of concrete and abstract labor in Capital.

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