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On Austerity

In the 1990s, when I first understood economics, austerity was a word that scared me. It represented a paradigm that I associated with the story of Zambia in the late 1980s. Zambia had one of the more functional public health systems in Africa in the late 70s and early 80s. It then became IMF’s test case for user fees in health care and the rest of the story is familiar one of user fees, loss of access and a systemic worsening of care in an already incredibly poor country. “Austerity” was [and is] in economics of a certain tune, not about economy class travel and eliminating excess photocopying. It was about tightening state expenditure, usually to pay off large scale debts. It was part of Structural Adjustment and the attack on “big” African government, part of the shock transitions of Eastern Europe.

In one of its shades, then, austerity is the slow dismantling of the welfare state. It is not the stance — as the UPA would have you believe — that one takes in some notion of deference to the reality of poverty, it is the cause of some of that poverty in the first place. Every time one government or any other calls for “austerity drives” of any kind, the shadow of this austerity still haunts them. The austerity that causes poverty is also rooted within these calls, though more quietly.

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