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Global Capitalism Reactionary Neoliberalism and The Deepening of Environmental Injustices
Global Capitalism Reactionary Neoliberalism and The Deepening of Environmental Injustices
Daniel Faber
To cite this article: Daniel Faber (2018) Global Capitalism, Reactionary Neoliberalism, and
the Deepening of Environmental Injustices, Capitalism Nature Socialism, 29:2, 8-28, DOI:
10.1080/10455752.2018.1464250
HOUSE ORGAN
Introduction
The systemic crisis of neoliberal capitalism is not only economic and ecological in
nature, as is manifest in the explosive growth in global economic and ecological
inequalities, but is also witnessed as a growing crisis of legitimacy for traditional
political parties and ruling power structures that have long controlled the system.
The political manifestations of this crisis can be seen everywhere, especially in the
United States with the election of Donald Trump to the Presidency (Faber et al.
2017). It is also witnessed by the rise of authoritarian and proto-fascist forces in
Latin America, Asia, and the Pacific; the growing power of racist, anti-immigrant
parties in Italy, and northern and east-central Europe; and the weakening legiti-
macy of European labor and social democratic parties (and the challenges to the
European Union itself, as seen in UK’s Brexit). The larger, system-wide crisis of
global capitalism is spawning a new subjective political voice in the form of reac-
tionary populism. Termed xenophobic authoritarianism by Inglehart and Norris,
reactionary populism discourse typically
favors mono-culturalism over multiculturalism, national self-interest over
international cooperation and development aid, closed borders over the free
flow of people, ideas, labor and capital, and traditionalism over progressive
and liberal social values. Hence Trump’s rhetoric seeks to stir up a potent
mix of racial resentment, intolerance of multiculturalism, nationalistic isola-
tionism, nostalgia for past glories, mistrust of outsiders, traditional misogyny
and sexism, the appeal of forceful strong-man leadership, attack-dog politics,
and racial and anti-Muslim animus. (Inglehart and Norris 2016, 7)
As such, Trump’s presidency represents the ascendancy of an even more hard-
nosed brand of capitalism.
The rise of rightwing populism is a response to the failures of what Nancy
Ingehart and Norris (2017) terms “progressive” neoliberalism to provide ade-
quate economic security to broad swaths of the world’s working and middle
classes. In the United States progressive neoliberalism was predicated in good
part on an uneasy alliance between Wall Street, the Democratic Party, and
many of the more mainstream organizations within new social movements
working on feminism, environmentalism, multiculturalism, antiracism, and
LGBTQIA issues. This uneasy alliance revolved around an economic agenda
for the deregulation of the banks and financialization of the economy, free trade
agreements, a rollback of the welfare state and some environmental measures, and
the projection of U.S. military power abroad. Both the Clinton and Obama
administrations famously co-opted mainstream environmentalists and engaged
in preemptive “containment” of costly and far-reaching environmental policy
proposals. Both administrations sought accommodation with the environmental
and environmental justice (EJ) movements by allowing limited victories in
specific instances of high-profile public mobilization. In exchange the polluter-
industrial complex would be rewarded with weaker regulations, generous subsi-
dies and access to energy and other natural resources on federal lands, and
other forms of economic compensation. These concessions to industry often
came at the expense of other battles being waged by grassroots environmental
organizations around the country.
The strategy of the Clinton/Obama neoliberals was to enlist the support of the
business-friendly organizations in the ecology movement around a number of
highly symbolic policy proposals, and thus give Democrats the appearance of
being pro-environment. The actual progressive segments of the movement
were split off. For instance, President Clinton’s Council on Sustainable Develop-
ment was stacked with executives from some of the worst polluters in the country,
along with conservative environmentalists such as Jay Hair of the National Wild-
life Federation, Fred Krupp of the Environmental Defense Fund, John Sawhill of
the Nature Conservancy, and John Adams of the Natural Resources Development
Council. All are noted for their cooperation with industry and support for the
North American Free Trade Agreement (NAFTA), which most of the environ-
mental and EJ movements opposed. By manipulating the pro-corporate elements
of the movement, the Clinton and Obama administrations operated in concert
with a conservative Congress and the polluter-industrial complex to introduce
more flexible, market-oriented and “cost-effective” neoliberal policy approaches
over the “command and control” typical of the liberal regime of regulation.
Trump is now rewriting these rules of engagement. Under a progressive neo-
liberal regime of environmental regulation, tackling climate change would require
an alliance between the state and the environmental movement in supporting the
adoption of carbon trading and the commodification of pollution. But Under
Trump and a reactionary neoliberal regime of environmental deregulation, the
state now acts in opposition to the movement, denies the science of climate
change, and pulls out of the Paris Climate Accords, at least in the United
States. Similarly, under a progressive neoliberal regime, meritocratic policy
approaches could be adopted ensuring that “talented” women, racial and ethnic
minorities, and members of the LGBTQIA community are not discriminated
against in labor markets, or even murdered, and can rise into higher class
status hierarchies based upon their abilities. In a reactionary neoliberal policy
regime, a full frontal assault is initiated on the rights and status of these same
groups in order to protect the privileges of white males. It is therefore no accident
that the greatest support of rightwing populism is grounded in older generations,
men, the less educated, ethnic majorities, wealthy suburbanites and the petty
bourgeoisie, and to a lesser degree among those class strata experiencing
10 D. FABER
more likely they are to experience arduous environmental and human health pro-
blems. The weight of the ecological burden upon a community depends upon the
balance of power between capital, the state, and social movements responding to
the needs and demands of the populace. In capitalist countries such as the United
States, it is working-class neighborhoods, ethnic minorities, and poor commu-
nities of color that most often experience the worst problems. Environmental
inequality is now increasing faster than income inequality in the United States
(Boyce, Zwickl, and Ash 2014).
Similar to the “domestic” strategy of reducing production costs by displacing
ecological and public health hazards onto poor people of color and the white
working class inside the United States and other countries of the global North,
corporations also reduce costs by adopting the “international” strategy of export-
ing ecological hazards outside America’s national boundaries (Pellow 2007; Faber
2008). The worsening ecological crisis in the global South is directly related to an
international system of economic and environmental stratification in which the
United States and other advanced capitalist nations are able to shift or impose
the environmental burden on weaker states (Adeloa 2000; Li and Zhou 2017).
In fact, one of the primary aims of the neoliberal agenda is to facilitate the displa-
cement of externalities by capital onto poorer nations.
The export of ecological hazards to the global South reflects the economic logic
of neoliberal policymakers aligned with the interests of transnational corpor-
ations, which deems human life in the global South worth much less than in
the North. If the poor and underemployed masses of Africa become sick or die
from exposure to pollution produced by domestic capital or exported from the
North, it will have a much smaller impact on the profits of international
capital. Aside from the higher costs of pollution-abatement in the advanced capi-
talist countries, if highly skilled and well-compensated workers in the global
North fall prey to environmentally related health problems, the expense to
capital and the state can be significant. Similarly, if African Americans living in
Flint, Michigan are so devalued that their “premature deaths” do not constitute
a cost to the capitalist system, neoliberal policymakers will remain indifferent
to the public health abuses inflicted on the community by lead poisoning
(Pulido 2016, 2). Although morally reprehensible, under the global capitalist
system it pays for business to shift pollution onto poor communities and
countries. And this is precisely the goal of neoliberals dominating global power
structures.
Given the willingness of neoliberal governments in the global South to trade-
off environmental protection in favor of capital investment and accumulation, the
growing mobility of capital (in all forms) is facilitating the export of ecological
problems from the advanced capitalist countries to the global South and sub-per-
ipheral states. This export of ecological hazard from the United States and other
Northern countries to the less-developed countries takes place as the following:
(1) in the money circuit of global capital, in the form of foreign direct investment
(FDI) in domestically owned hazardous industries, as well as destructive invest-
ment schemes to gain access to new oil fields, forests, agricultural lands,
mining deposits, and other natural resources; (2) in the productive circuit of
CAPITALISM NATURE SOCIALISM 13
multiple jobs and thus reducing overall civic involvement that forms the basis of
any public efforts to resist a toxic hazard; economic deprivation further makes the
promise of a handful of (dangerous) new jobs in the community difficult to resist;
racist voter redistricting and gerrymandering (the redrawing of political district
boundaries to favor a Party in power) may have robbed the community of politi-
cal power; and racist law enforcement and prosecution might have incarcerated a
whole generation of people who would otherwise have the energy and drive to
oppose such predations on their homes and families. These structural and sys-
temic political-economic conditions of racial capitalism make it logical for pollut-
ing industry to locate operations in poor communities of color and to do so
without being overtly racist.
loans for Latinos (Campen 2004). All of these communities except one are ranked
among the 30 most environmentally overburdened communities in Massachu-
setts (Faber and Krieg 2005). In addition, African Americans and Latinos at all
income levels are more than twice as likely to be rejected for a home-purchase
mortgage loan than are white applicants at the same income levels. Recent
studies show that white Americans are increasingly choosing to self-segregate
into racially isolated ethnoburbs, insulating themselves from the social and
environmental injustices plaguing communities of color (Kye 2014).
Racial and ethnic segregation in the United States is a product of the manner in
which real estate developers, bankers, industrialists, and other sectors of capital
work in coalition with government officials (at all levels) to form policy and plan-
ning structures which promote community development conducive to these
business interests, i.e. local growth machines (Logan and Molotch 1987). It
pays these interests to displace environmental health problems onto these com-
munities where most residents lack health care insurance, have lower incomes
and own less valuable property, and are more easily replaced in the labor
market if they become sick or die. Again, in the case of the organized economic
abandonment of Flint, Michigan, neoliberal policymakers implement additional
austerity measures that further worsen the environmental and public health pro-
blems in these communities. In Flint this involved changing the source of drink-
ing water for the city to the highly polluted Flint River, which was so corrosive
that it caused lead to leak en masse from the pipes into the public water system
(Pulido 2016; Ranganathan 2016). Such externalities displaced upon the
working poor are less likely to impose costs on capital and the larger economic
system than if such harm was inflicted on the professional classes in whom sig-
nificant investments of social capital are made. The siting of ecologically hazar-
dous industrial facilities in communities of color, as well as “minority move-
ins” to already heavily polluted areas, are both governed by the same systemic
logic of capitalist accumulation (Been and Gupta 1997). Such acts of environ-
mental racism are perfectly rational from the perspective of capital and neoliberal
policy planners overseeing organized abandonment.
economic means. Housing price increases hit the poor—the vast majority of
whom are renters—especially hard. It is typically only landlords and homeowners
who stand to capture the property value gains associated with gentrification
(Banzhaf and McCormick 2012).
Environmental gentrification (Sieg et al. 2004) is quickly becoming the major
issue impacting low-income residents and people of color in cities across the
United States. The elimination of environmental disamenities (such as toxic
waste sites) and the creation of environmental amenities (such as parks) can
exact a large economic toll on vulnerable residents (Gamper-Rabindran and
Timmins 2011; Curran and Hamilton 2012). Black and Latino populations
often decrease significantly after the revitalization of land contaminated with
toxic chemicals (Essoka 2010). Similarly, as Gould and Lewis (2012) revealed,
the restoration of Brooklyn’s Prospect Park in the 1990s led to a significant
increase in new construction around the park and a corresponding decrease in
the racial and socioeconomic diversity of those areas. In many cases the displaced
residents migrate to more environmentally distressed parts of the city where
housing costs are lower (Banzhaf and McCormick 2012, 39–41).
It is clear that a failure to adequately address the social justice dimensions of
urban sustainability initiatives can contribute to environmental gentrification
(Pearsall 2012). Such a failure is typically grounded in “asymmetrical power
relations … [that] continually influence how and what kinds of ‘environmental’
issues are addressed” (Tretter 2013, 308). The threats posed by gentrification
are now presenting the EJ movement with a pernicious paradox (Checker
2011). Are successful EJ struggles by the working class and people of color to
make their urban environments greener likely to yield unintended consequences
in the form of the eventual displacement and relocation of these same residents
into other polluted communities, where rents and housing prices are cheaper?
Must lower-income residents “reject environmental amenities in their neighbor-
hood in order to resist gentrification that tends to follow … ” (Checker 2011,
211)?
Neoliberal urban revitalization and green development schemes are only going
to exacerbate social dislocations of this sort. Banzhaf and McCormick (2012, 39-
41) conclude that although there are exceptions, “the evidence seems clear that in
most cases improvements in local environmental conditions do trigger increases
in property prices.” For example, the cleanup of Superfund and other brownfield
sites—and in some cases, even the anticipation of future remediation—results in
rising land values, housing values and/or rents (Gamper-Rabindran and Timmins
2013; Pearsall 2012). The “greening” of urban space brings new retail stores, res-
taurants, and amenities explicitly targeted toward middle- and upper-class resi-
dents. This remaking of the commercial and social aspects of neighborhoods
can serve to alienate or marginalize lower-income residents, and especially the
homeless (Dooling 2012), not only because participation is cost-prohibitive to
those with limited means, but also because it serves to reinforce racial and
class-based symbolic and social boundaries within the community (Lamont
and Molnar 2002). The task before the EJ movement is to tear down these bound-
aries and develop a new politics of urban sustainability that unites struggles
20 D. FABER
around affordable housing, green jobs at a living wage, civil and migrant rights,
ecological revitalization, and economic development into a larger body politics
that serves the interest of low-income residents and people of color.
Conclusion
The threats posed to the profits of major corporate polluters by the environmental
and EJ movement are invoking a profound political backlash. Spearheaded by
agribusiness, oil and gas, mining, timber, petrochemical, and manufacturing
industries, these corporate polluters are channeling enormous sums of money
into anti-environmental organizations, public relations firms, foundations,
think tanks, research centers, and policy institutes, as well as the elections cam-
paigns of “pro-business” candidates in both major political parties. Motivated
by the real and potential costs of environmental protection, the goal of this “pol-
luter-industrial complex” is the establishment of reactionary neoliberal regulatory
reform towards the wholesale dismantling of the environmental protection state
(Faber 2008). Trump and his appointees are implementing draconian cuts to the
EPA’s budget, weakening or preventing the enforcement of existing regulations,
and delegating programs to financially strapped local and state governments
lacking the capacity to assume the task. As a result, the ability of the EJ,
climate change, and ecology movements to win even limited reforms has been
effectively blocked at the federal level.
The news is not all bad, however. More than ever, people are fighting for their
basic right to a clean and healthy environment at the local and state levels. In poor
African-American and Latino neighborhoods of small towns and inner cities,
depressed Native American reservations, and Asian-American communities all
across the country, people who have traditionally been relegated to the periphery
24 D. FABER
Acknowledgements
Thanks to Salvatore Engel-Di Mauro, Laura Pulido, and Christina Schlegel for their
comments and input. I remain responsible for all shortcomings.
Disclosure Statement
No potential conflict of interest was reported by the authors.
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Daniel Faber
Department of Sociology and Anthropology, Northeastern University,
Boston, MA, USA
d.faber@northeastern.edu