Call for Research Interns by NUS/NALSAR Alumnus and JGLS’ Faculty Member: Applications Open Until Positions are filled

About the Faculty

Mr. Harsh Mahaseth teaches subjects revolving around Asian Legal Studies / Public International Law at Jindal. He is a Faculty Coordinator for JGLS Pro Bono Publicus, and a Research Analyst at the Center for Southeast Asian Studies, Jindal School of International Affairs.


He completed his Master of Laws (Asian Legal Studies) from the National University of Singapore and completed his B.A., LL.B. (Hons.) from NALSAR University of Law, India. He has previously worked on several research projects with UNICEF, UN-Habitat, NUS, NALSAR, the SAARC Secretariat, Propublic forum for protection of public interest, and the Centre for Air and Space Law. His research experience and numerous publications have earned him the Emerging Scholar Award,  Best Research Scholar Award, Indian Law Conclave Elite List 2020 (Under 25 years Category), and the Best Law Student Award.

 
He has also previously delivered sessions on legal research, writing, editing, professional development and oratory skills as part of the UPeksha Mentorship Programme which he has also founded. He frequently judges moots court competitions including Jessup, Stetson, Manfred Lachs, NALSAR B.R. Sawhny. 
 

His research interests include Public International Law, Asian Studies and International Relations, Human Rights, Environmental Law, and Comparative Research. His profile is available on LinkedIn and the JGLS website.

Links to his Profile

LinkedIn

Jindal Global Law School

Internship Profile: What to Expect

Research and editing work: The interns will be mentored through the research process and learn editing skills. I will break down the issues for the interns to understand the entire topic easily. I will guide the interns throughout the research process. The different research areas I work in are Public International Law, International Relations, Asian Legal Studies, Law and Religion, and Human Rights. I am looking to research the different South Asian and Southeast Asian nations. 

In Nepal, I am also specifically looking for students who can research in the areas of Environmental Law, Constitutional Law, and History.

Duration

2 months (Online)

This would be a part-time commitment. 

Eligibility

Students from law and social science backgrounds are encouraged to apply. I am looking for bright, driven and enthusiastic students who will be interested in conducting research.

Process of Selection

Interested candidates may send their CV, potential research topics the student is interested in researching on, and Cover Letter introducing themselves and why they should be selected to harshmahaseth95@gmail.com 

(NOTE: Only emails with these 3 attachments will be considered).

After the students send an email with these 3 attachments, I will be interviewing them to understand their interest in the research areas and brief them about what to expect in the coming 2 months.

Deadline: Applications Open Until Positions are filled

Contact Information

Contact Mr. Harsh Mahaseth at harshmahaseth95@gmail.com for any further queries.

The Rise and Fall of the Rana Regime: A Machiavellian Analysis

SANKALPA KOIRALA*

1. Introduction

Niccolò di Bernardo dei Machiavelli (1469-1527),  was an Italian writer, best known for his scholarships on politics, based on pessimistic realism.[1] He intended to replace the ancient Christian thoughts with revolutionary doctrines of his own.[2] For Machiavelli, Christian ethics were used by “vile” men to interpret the religion according to ozio (laziness) rather than according to virtù (virtue).[3] His 500-year-old works still hold contemporary relevance, as they work as a guidance to leaders of all fields and not just of politics.[4] As per Machiavelli, for a leader, moving away from Christian values; immorality, cruelness and dishonesty are sometimes important as against morality, humbleness and honesty.[5]  He moved away from moralistic theory of politics.[6] However, Machiavelli didn’t endorse tyranny; instead, his works have been interpreted, showing him to be a republican or a democratic political theorist,[7] even if Stalin read him as a prophet of totalitarianism.[8]  Machiavelli favoured a republic rather than a principality.[9] Nevertheless, the Rana regime (1846-1951) in Nepal, although being a tyrannical regime, displayed a “machiavellian personality” to some extent, by their display of ruthlessness. While the regime did not entirely follow Machiavelli’s advice to a leader, as Machiavelli didn’t support a tyrannical regime, we can observe that Junga Bahadur Rana’s (1817-1877) choice of violence to instigate a reform in Nepali political system during late 1840s, shows some elements of Machiavelli’s advice to a leader.

2. Initiation of Ranarchy

Junga Bahadur Rana was a ruthless strategic thinker, who thought for the survival of a weakened Gorkha (Shah) Regime of Nepal. His “espionage mission” to England in 1850, with the intent to learn about Britain’s military might, so as to calculate the risk in trying to regain the lost territory of 1816[10] reflects some elements of a virtuous leader, in the eyes of Machiavelli as Machiavelli advocated for “manipulating strategies and techniques”,[11] especially, during diplomacy.[12] For him, “prudence” is being able to deceit. Prudence is not to be gauged with morality.[13]  England’s military strength made Junga Bahadur to ally with them. Thus, Nepal was able to be a sovereign nation, unlike semi-autonomous princely states in India.[14] Machiavelli saw a city (or state) to be a living organism which can grow and strengthen, through its expansion — and through expansion, one can gain “Roman greatness”: the highest greatness.[15] Junga Bahadur Rana, seems to be prudent in his undertakings and also seems to comply with Machiavelli’s idea of “greatness”, as he did think about expanding Nepali territory by getting back the land lost in 1816, but he was equally prudent so as to not create enmity with the Britishers, and thus didn’t try to regain the lost territory.

Machiavelli provided that love, religion and politics are languages of war, and religion: the art of peace.[16] From his writing of Mandragola, one can observe that “love” and “deceit” have been used for personal gains.[17] Machiavelli, in the Discourses, has even praised Numa Pompilius for faking a marriage for political purposes.[18] Junga Bahadur had also formed powerful alliances through matrimonial relations. His eldest son Jagat Jang was married to the eldest daughter of the monarch. Similarly, Junga Bahadur’s second son was married to another daughter of the monarch, while he himself had married the sister of Fateh Jang Cautariya, Hiranyagarbha Kumari. His daughters were married to prince Trailokya and other people who wielded political power. These matrimonial alliances later served as a factor, that forced King Surendra Bikram Shah to sign a Lal Mohar, which delegated a lot of essential powers to the Rana family.[19] Here too, one can observe Junga Bahadur’s compliance with Machiavelli’s opinion on love and political power.

2.1. The Parvas (Massacres) (1846-1847)

The Palace was filled with conspiracies after the assassination of Mathwar Singh Thapa, the then prime minister and after some time, the murder of Gagan Singh Thapa. Queen Rajya Laxmi summoned all courtiers to a Kot, wherein at the command of Junga Bahadur Rana, 55 courtiers were killed (Kot massacre). Junga Bahadur was then vested with civil, military and judicial powers and became the commander-in-chief. Initially, even the queen favoured Junga Bahadur Rana, so as to make her sons, the heir to the throne instead of her step-sons. However, Junga Bahadur later refused to kill Prince Surendra (step-son) at the queen’s command. The queen then plotted to poison and kill Junga Bahadur and appoint Bir Dhoj as the Mukhtyar.  However, already well known to the queen’s intent, Junga Bhadaur instead killed Bir Dhoj Basnet (Bhandarkhal massacre). King Rajendra issued a firman, deciding him and his family to go on a pilgrimage. A proclamation was also made, stating that the acts of Junga Bahadur was a consequence of the act of the queen-regent plotting against the crown prince, and that he was pardoned for the offences. The administration was left to Junga Bahadur. The queen was exiled and kith and kin of those who died in the kot massacre were prevented from entering the country, even at the request of the royal family. Regent Surendra also promised that in the name of God Pashupati and Goddesss Guyeshwari that the king would not harm the minister’s person and property. Further, the prime-minister (Junga Bahadur Rana) and his family were not subject to punishment. The prime-minister was delegated a lot of power and liberty. The loyal prince Surendra was made the King, after attempts of assassination on Junga Bahadur was made by the king and the queen from Varanasi. (Ex) King Rajendra wanted his throne back, while in Varanasi. Supporters of King Rajendra entered through Sugauli, looted the government treasury and stayed at Alau. However, he was caught trying to escape from the troops sent by Junga Bahadur Rana (Alau parva). Now, Junga Bahadur made King Surendra make a proclamation, citing Junga Bahadur’s loyalty to the crown; his foreign relations with East-India Company and the Chinese; his military capability; and declared that the position of prime-minister would always belong to his family. Thus began the hereditary family dictatorship of the Ranas.[20]

2.2. Through the Eyes of Machiavelli

The problems and disputes between and within the Shahs, Pandes, Thapas and Basnyats[21] caused the Ranas to come into power. Surrender of sovereign power by King Rajendra Bikram to Queen Rajya Laxmi, on January 5, 1845, weakened the throne. Machiavelli had provided that use of normal diligence is enough for a leader to retain his power, until and unless an extraordinary and extreme force deprives him of it. However, the leader is said to regain it when adversity strikes the usurper.[22]  In this scenario, one can observe how the monarchs; Rajendra, Surendra and even the Queen Rajya Laxmi, were not able to exercise their diligence to maintain or to retain their power from the Ranas.

Machiavelli largely worked on “conspiracies” and their role in the political playground. He mentioned in Discourses, that conspiracies are the utmost danger that a prince or subjects can face. His study of history showed that many princes have lost their lives and their states to conspiracies than to wars.[23] The Shah dynasty faced the same fate. The conspiracies in the palace eventually collapsed the throne. Machiavelli also provided how conspiracies can be useful. He gave the example of Oliverotto da Fermo, who had acquired a principate through crime of mass murder, which aligns with the act of Junga Bahadur Rana in the Kot massacre.[24] Agathocles, who committed mass murder at a gathering, is said by some authors to be fully virtuous in the eyes of Machiavelli.[25] A leader should be a step ahead of everyone to prevent any deceit from people around him,[26] which can also be seen on the part of Junga Bahadur, who escaped multiple assassination attempts.

While the idea of “virtue” in Machiavelli’s scholarships are not clear, it is clear that his definition of virtue was an explicit rejection that being good, in Christian sense, is the same as being virtuous.[27]  However, it is important to note that betrayal, killings, lack of compassion and belief is not exactly virtue, taking again, the example of Agathocles. Therefore, what is virtuous for Machiavelli is highly debatable.[28] For Machiavelli, man and god are separate actors.[29] Thus meaning that a man, or say a prince, should not be expected to act as morally as a god. There exists an inherent difference between how men “live” and how they “ought to live”. “There are two kinds of combat, one with laws, the other with force. The first is proper to man, the second to beasts; but because the first is often not enough, one must have recourse to the second.”[30] A good person will be destroyed by people around him who are not good.[31] He provides a realist’s point of view and suggests leaders to be stringent, complying with the reality while not being distracted by what “ought to be”. Junga Bahadur Rana, during the rise of the Rana regime, had done precisely this. Even if his acts were based on selfish motives, one can observe how his acts aligned with a realistic view of the political scenario of that time. Herein, the rise of power of Junga Bahadur, was a result of skill rather than of fortune. Just like in the case of Moses, Cyrus and Romulus, fortune granted nothing more than an opportunity.[32] The incompetence of the crown was an opportunity but the series of events show skill or rather virtue of Junga Bahadur Rana. Once such virtuous leaders establish themselves in power, it is rather easy for them to maintain such power. Leaders who came into power due to good fortune are said to wither away, in the first unfavourable weather. The reign of the Rana regime for more than a century shows “skill” (or virtue) rather than mere “fortune” of Junga Bahadur Rana and his successors.

“A prudent prince should not believe his enemies have forgiven him, neither should he believe everyone is his enemy.” [33]

As provided by Machiavelli, a successful prince should not rely on capricious fortune but should rely on his virtue to retain his powers,[34] which Junga Bahadur Rana did even after he had gotten more power than the King.[35]  Machiavelli further provided that, with new power comes new enemies. However, Junga Bahadur Rana had dealt with such enemies by removing them from the country. Nevertheless, he maintained alliance with Britishers towards the south. Through his diplomacy, Junga Bahadur had complied with the suggestion and warnings of Machiavelli, as he provides that even for democratic nations, self-sufficiency is not possible and diplomacy is important.[36]

Machiavelli’s prince can only acquire and maintain his principality based on beliefs and opinion of the people, rather than solely by the use of force. [37] “Belief”, as used by Machiavelli in his writings, was of religious nature. However, Nepal, having a large linkage with Hinduism, considered its monarchs to have divine power and to be an avatar of Lord Vishnu.[38]  Thus, belief in monarchy is not entirely a political belief but also a religious one. Junga Bahadur had here as well complied with the suggestion of Machiavelli and did not completely remove the system of monarchy but instead complied with the beliefs. The monarch had delegated its power, made the position of prime-minister a “family post”, pardoned Junga Bahadur for the massacres, etc. and remained vestigial in the functioning of the state rather than being non-existent. Therefore, belief of the people (in monarchy) was also complied with, during the rise of the regime.

3. Downfall of the Regime / Conclusion

Machiavelli provides that there exist two kinds of “humours”: a set of people who do not want to be controlled or oppressed and a set of people who want to command and oppress. Neither can be satisfied except at the expense of the other.[39] For a leader, it is better to be feared than to be loved.

Love is held by a chain of obligation, which, because men are wicked, is broken at every opportunity for their own utility, but fear is held by a dread of punishment that never forsakes you.”[40]

Analysing the Rana regime, it is seen that Machiavelli’s advice have been followed only during the rise of the Rana regime, by Junga Bahadur. Machiavelli says that a state can use whatever means, without the question of justice or injustice, kindness or cruelty, or to its praiseworthiness or ignominiousness. However, such means should be for a particular end i.e. liberty and freedom of a state and its citizens. When possible, a prince should act morally. Thus, being moral is a general rule and brutality should never be a norm. To be able to “not to do good” must depend on necessity.[41]  For Machiavelli, the ends determine the means and not the reverse.[42] Therefore, where the end is tyranny, the means is already a wrong. Brutality as a norm during the Rana regime was wrong in the view of Machiavelli. Further, the Rana regime’s isolationism policy delayed Nepal’s economic development. Closed-door policy by the Ranas in the fear of British expansionism,  was against Machiavelli’s idea of greatness of a state.[43]

If one considers everything well, one will find something appears to be virtue, which if pursued would be one’s ruin, and something else appears to be vice, which if pursued results in one’s security and well-being.[44]

Reserving the traditional notion of good and bad, the virtue, he recommends is a mixture of good and bad.[45] During the century-long Rana regime, the regime was more tilted towards his idea of “vice” which eventually lead to its downfall. Machiavelli’s virtuous leader avoids arousing hatred among his people.[46]  Therefore, Junga Bahadur Rana during the rise of the Rana regime, was a prudent and virtuous Machiavellian prince but was not so after he gained such power. Machiavelli suggested that a prudent prince should be cautious in believing in his subjects, however, he should also not take everyone to be his enemy.[47] Therefore, the regime’s intent not to provide the populace with education, as a preventive measure,[48] was against Machiavelli’s suggestion to a prince. While strategies and conspiracies were well used during the rise of the regime, “vice” of the regime led to its inevitable downfall. Therefore, while compliance with Machiavelli’s suggestions led to victory of Junga Bahadur over the Shahs, the regime’s latter non-compliance with virtues of a Machiavellian leader led to its eventual downfall.


* The author is a third year B.A./LL.B. (Hons.) student at Rajiv Gandhi National University of Law, Punjab, India.


[1] Mark Jurdjevic, ‘Virtue, Fortune, and Blame in Machiavelli’s Life and The Prince‘ (2014) 81(1) Social Research, Machiavelli’s The Prince 500 Years Later < https://www.jstor.org/stable/10.2307/26549600 > accessed 15 January 2021

[2] ‘Niccolo Machiavelli’ (Stanford Encyclopedia of Philosophy, 13 September 2005) < https://plato.stanford.edu/entries/machiavelli/#Biog > accessed 14 January 2021; Rasoul Namazi, ‘The Question of Esoteric Writing in Machiavelli’s Work’ (2017) 40 (2)  Renaissance and Reformation < https://www.jstor.org/stable/26398554 > accessed 15 January 2021

[3] Gregory Murry, ‘The Best Possible Use of Christianity: The Rhetorical Stance of Machiavelli’s Christian Passages’ (2015) 36 (2) History of Political Thought < https://www.jstor.org/stable/26228599 > accessed 15 January 2021

[4] Michael Jackson and Damian Grace, ‘Machiavelli’s Shadows in Management, Social Psychology and Primatology’ (2015) 62 (142) A Journal of Social and Political Theory < https://www.jstor.org/stable/24719952 > accessed 13 January 2021

[5] ibid.

[6] ‘Niccolo Machiavelli’ (n 2).

[7] Catherine H. Zuckert, ‘Machiavelli’s “Prince” ­– Five Hundred Years Later’ (2013) 75 (4) The Review of Politics < https://www.jstor.org/stable/43670903 > accessed 13 January 2021

[8] Mark Jurdjevic, ‘Virtue, Fortune, and Blame in Machiavelli’s Life and The Prince’ (n 1).

[9] Nikola Regent, ‘Machiavelli: Empire, “Virtue” and the Final Downfall’ (2011) 32 (5) History of Political Thought < https://www.jstor.org/stable/26225726 > accessed 13 January 2021; Giovanni Giorgini, ‘The Place of the Tyrant in Machiavelli’s Political Thought and the Literary Genre of the Prince’ (2008) 29 (2) History of Political Thought < https://www.jstor.org/stable/26224004 > accessed 14 January 2021

[10] Kunda Dixit, ‘Inside Story of Nepal’s Rana Dynasty’ Nepali Times (Kathmandu, 5 September 2020) < https://www.nepalitimes.com/here-now/inside-story-of-nepals-rana-dynasty/ > accessed 9 January 2021

[11] Michael Jackson and Damian Grace, ‘Machiavelli’s Shadows in Management, Social Psychology and Primatology’ (n 4).

[12] Rasoul Namazi, ‘The Question of Esoteric Writing in Machiavelli’s Work’ (n 2).

[13] Euguence Garver, ‘After “Virtue”: Rhetoric, Prudence and Moral Pluralism in Machiavelli’ (1996) 17 (2) History of Political Thought < https://www.jstor.org/stable/26217064> accessed 13 January 2021

[14] Kunda Dixit, ‘Inside Story of Nepal’s Rana Dynasty’ (n 10).

[15] Euguence Garver, ‘After “Virtue”: Rhetoric, Prudence and Moral Pluralism in Machiavelli’ (n 13).

[16] ibid.

[17]‘Mandragola’<http://galileo.rice.edu/lib/student_work/florence96/catcher/mandragola.html#:~:text=Written%20in%201518%2C%20Mandragola%20is,wishes%20to%20become%20her%20lover> accessed 14 January 2020

[18] Gregory Murry, ‘The Best Possible Use of Christianity: The Rhetorical Stance of Machiavelli’s Christian Passages’ (n 3).

[19] Chandra Prakash Singh, ‘Rise and Growth of Anti-Rana Movement in Nepal’ (2004) 65 Proceedings of the Indian History Congress < https://www.jstor.org/stable/44144808 > accessed 9 January 2021

[20] Madhav Raj Pandey, ‘How Jang Bahadur Established Rana Rule in Nepal’

[21] Kunda Dixit, ‘Inside Story of Nepal’s Rana Dynasty’ (n 10).

[22] James B. Atkinson (trs), Niccolo Machiavelli, The Prince (The Bobbs-Merrill Company, Inc 2008) 99

[23] James Martel, ‘Machiavelli’s Public Conspiracies’ (2009) 2 (1) Media Tropes eJournal 60

[24] Rasoul Namazi, ‘The Question of Esoteric Writing in Machiavelli’s Work’ (n 2).

[25] John P. McCormick, ‘The Enduring Ambiguity of Machiavellian Virtue’ (2014) 81 (1) Social Research, Machiavelli’s The Prince 500 Years Later < https://www.jstor.org/stable/10.2307/26549605 > accessed 13 January 2021

[26] Stephen H. Wirls and Steven H. Wirls, ‘Machiavelli ad Neustadat on Virtue and the Civil Prince’ (1994) 24 (3) Presidential Studies Quarterly < https://www.jstor.org/stable/27551278 > accessed 13 January 2021

[27] Michelle T. Clarke, ‘The Virtues of Republican Citizenship in Machiavelli Discourses on Livy’ (2013) 75 (2) The Journal of Politics < https://www.jstor.org/stable/10.1017/s0022381613000030 > accessed 13 January 2021;  Gregory Murry, ‘The Best Possible Use of Christianity: The Rhetorical Stance of Machiavelli’s Christian Passages’ (n 3).

[28] John P. McCormick, ‘Machiavelli’s Inglorious Tyrants: Agathocles, Scipio and Unmerited Glory’ (2015) 36 (1) History of Political Thought < https://www.jstor.org/stable/26226962 > accessed 12 January 2021; John P. McCormick, ‘The Enduring Ambiguity of Machiavellian Virtue’ (2014) 81(1) Social Research, Machiavelli’s The Prince 500 Years Later < https://www.jstor.org/stable/10.2307/26549605 > accessed 12 January 2021

[29] Gregory Murry, ‘The Best Possible Use of Christianity: The Rhetorical Stance of Machiavelli’s Christian Passages’ (n 3).

[30] Catherine Zuckert, ‘Machiavelli and the End of Nobility in Politics’ (2014) 81 (1) Social Research, Machiavelli’s The Prince 500 Years Later < http://www.jstor.com/stable/26549603 > accessed 12 January 2021

[31] Mark Jurdjevic, ‘Virtue, Fortune, and Blame in Machiavelli’s Life and The Prince’ (n 1).

[32] ibid.

[33] Nathan Tracov, ‘Belief and Opinion in Machiavelli’s “Prince”’ (2013) 75 (4) The Review of Politics < https://www.jstor.org/stable/43670908 > accessed 14 January 2021

[34] John P. McCormick, ‘The Enduring Ambiguity of Machiavellian Virtue’ (n 28).

[35] Madhav Raj Pandey, ‘How Jang Bahadur Established Rana Rule in Nepal’

[36] Ryan Balot and Stephen Trochimchuk, ‘The Many and the Few: On Machiavelli’s “Democratic Moment”’ (2012) 74 (4) The Review of Politics < https://www.jstor.org/stable/23355686 > accessed 12 January 2021

[37] Nathan Tracov, ‘Belief and Opinion in Machiavelli’s “Prince”’ (n 33).

[38] Bernard Weinraub, ‘World’s Only Hindu King is Crowned in Nepal Ritual’ The New York Times (New York, 24 February 1975) < https://www.nytimes.com/1975/02/24/archives/worlds-only-hindu-king-is-crowned-in-nepal-ritual-worlds-only-hindu.html > accessed 9 January 2021

[39] Catherine Zuckert, ‘Machiavelli and the End of Nobility in Politics’ (n 30).

[40] ibid.

[41] ibid.

[42] Phil Harris, ‘Machiavelli and the Global Compass: Ends and Means in Ethics and Leadership’ (2010) 93 (1) Journal of Business Ethics < https://www.jstor.org/stable/27919158 > accessed January 12 2021

[43] Louise Brown, ‘The Ranas and the Raj’ Historia (Kathmandu, 14 March 2017)  <http://www.historiamag.com/ranas-and-raj/ > accessed January 9, 2021

[44] Catherine Zuckert, ‘Machiavelli and the End of Nobility in Politics’ (n 30).

[45] Gray Remer, ‘Rhetoric as a Balancing of Ends: Cicero and Machiavelli’ (2009) 42 (1) Philosophy & Rhetoric < https://www.jstor.org/stable/25655336 > accessed 11January 2021; Sarah Clifford and Scott N. Romaniuk, ‘Machiavelli as a Misogynist: The Masculinization of Fortuna and Virtue’ (E-International Relation, 27 November, 2019)  < https://www.e-ir.info/2019/11/27/machiavelli-as-misogynist-the-masculinization-of-fortuna-and-virtu/ > accessed 11 January 2021

[46] Catherine Zuckert, ‘Machiavelli and the End of Nobility in Politics’ (n 30).

[47] Nathan Tracov, ‘Belief and Opinion in Machiavelli’s “Prince”’ (n 33).

[48] Gopi Nath Sharma, ‘The Impact of Education During the Rana Period in Nepal’ (1990) 10 (2) Himalaya < https://core.ac.uk/download/pdf/46723119.pdf > accessed 9 January 2021

Currency Manipulation: Is This a Trade War?

SUDIKSHYA SHARMA*

1. Introduction

Currency manipulation has not ceased to become a subject of debate among nations in today’s scenario. Such strategies have survived the middle ages and exists even today.[1] It refers to the act taken by governments in order to change the value of their currencies relative to other currencies for some motives. One of the motives for such actions by wealthy nations is to gain an unfair competition advantage in the global trade market.[2] The countries basically manipulate the currencies to make their exports efficaciously cheaper which in return makes imports quite expensive.[3] Instead of leaving the currencies to freely fluctuate, the value of currencies is changed against other currencies by fixing the rate of exchange or changing its value (increasing or decreasing); such changes itself being subject to national policy intervention,[4] which results in global trade imbalance in long run by distorting currency prices. The countries with massive trade deficits often use the term, “currency manipulation” in their political discussion. Foreigners, are accused for their “vile action” when it comes to trade deficits, by the politicians and the citizens of a certain country. However, saving a tiny amount of income and running massive government budget deficit can be the actual reason behind trade deficit.

2. Currency Manipulation & Global Economy

Currency manipulation has severe effects on the global economy. It is accountable for millions of job loss in the United States (US) and Europe.[5] Many scholars have argued that China, being the major currency manipulator,[6] has led to possible threat in the trade market. With the currency being devaluated, the market shares in manufacturing industries of China may increase more and more and that may probably lead to increase in pricing power, which ultimately threatens the jobs around the globe.[7] The industries that are highly export-oriented can be annihilated by unjust strong currency. Many Foreign Direct Investors (FDIs) tend to undertake capital flight due to expected currency manipulation or devaluation of the currency.[8] The countries which are substantial importers can be a subject to inflation. There can be the huge impact in the labor composition as well as in the productivity as the manufacturing sectors mostly engage in trade and bear huge percent of job loss.[9]

3. The Ongoing Debate

Many economists have claimed that China has been manipulating its currency so as to provide negative effects for United States.[10] The Department of Treasury of the United States has stated that China has taken a solid step to devalue its currency in order to gain a competitive advantage in an unfair manner.[11]At the moment, the recent debate is whether or not the other countries are using policies in order to weaken the value of their currency for gaining a trade advantage. Suppose, if some other country devaluates its currency with respect to the dollar, US imports from the country becomes less expensive and the exports to the country becomes more expensive. This result in negative affect to US exports to the country and the producers of import-sensitive goods in US may feel difficult to compete with imports from the country. But it benefits the US consumers who buy imported products and businesses that depend on inputs from other country because the product becomes less expensive.[12]

Japan was immensely condemned for undervaluing its currency during the first decade of 21st century whereas Germany is being accused of currency manipulation because it has largest current account surplus in the world. But the irony is that it does not have its own currency and uses Euro.[13] Also, China was just moving towards the flexible exchange rate and therefore, it was accused of currency manipulation. [14]But several claims have been made that the accusation on China is not true. The United States have also been accusing Brazil and Argentina as currency manipulators to give artificial boost on export of the products.[15] Also, the International Monetary fund (IMF) and the World Trade Organizations (WTO) are not able to take a direct action regarding currency manipulation because the rules of WTO is quite unclear regarding the issue and IMF does not have any sort of jurisdiction to change exchange rate policies of any countries. However, they can impact in an indirect manner.[16]

4. Conclusion / Suggestion

With the ongoing issue of currency manipulation, countries like Nepal, which extremely depend on import, can be benefited when it comes to importing goods. However, Nepal already has pegged currency with India,[17] with whom it trades the most. Article IV of Articles of Agreement of the IMF provides members with general obligations to avoid manipulating exchange rates in international monetary system.[18] Currency Manipulation also violates the Most Favoured Nation principle, the national treatment principle and tariff bindings.[19] However, so as to solve the ongoing issue, WTO and IMF should come together, by rectifying the disconnect between the two, and resolving inherent weaknesses among themselves[20] to bring out clear policies. A new organization can also be formed to monitor currency manipulation which shall be overlooked by the WTO and the IMF. Bilateral or multilateral agreement between countries can also be formed to prevent such manipulations.[21]

Many of the currencies in the world seem undervalued because the US dollar is very strong. So, US dollar being strong, United States is considered to be an amazing place to settle the cash during economic uncertainty in the world. The United States also has inflation-adjusted interest rates which makes the US dollar strong. Foreign money also flows in the banks of US, US stocks are purchased and the investment in real estate is made, which has made the US dollar strong, which essentially might make other currencies undervalued as compared. So, it is difficult to identify whether the countries are actually manipulating the currencies to adjust balance in payment and to gain competitive advantage or is it just the dollar being strong. So, the question arises; is this a trade war?

* The author is a B.B.A. student at College of Applied Business, Kathmandu, Nepal


[1] H. van Werveke, ‘Currency Manipulation in the Middle Ages: The Case of Louis de Male, Count of Falnders’ (1949) 31 Transaction of the Royal Historical Society <https://www.jstor.org/stable/3678637> accessed 26 November 2020

[2] Ernest H. Preeg, ‘Exchange Rate Manipulation to Gain an Unfair Competitive Advantage: The Case Against Japan and China’ in  C. Fred Bergsten and John Williamson (eds), Dollar Overvaluation and the World Economy (Institute of International Economics 2003)

[3] Robert Kimmel, ‘What is currency manipulation?’ The Straits Times (2 July 2017) <https://www.straitstimes.com/business/what-is-currency-manipulation> accessed 26 November, 2020

[4]  Tarek A. Hassan, Thomas M. Mertens and Tony Zhang, ‘Currency Manipulation’ (2019) National Bureau of Economic Research, Cambridge Working Paper 22790, 3 < https://www.nber.org/papers/w22790 > accessed 3 December 2020

[5] Laurence Howard, ‘Chinese Currency Manipulation: Are There Any Solutions?’ (2013) 27 Emory International Law Review <https://law.emory.edu/eilr/content/volume-27/issue-2/comments/chinese-currency-manipulation.html> accessed 26 November, 2020

[6] Wei Liu and Libing Deng, ‘Who is the Exchange Rate Manipulator: China or America?’ (2012) 3(3) World Review of Political Economy < https://www.jstor.org/stable/10.13169/worlrevipoliecon.3.3.0344 > accessed 29 November 2020

[7] Peter Navarro and Stephen S. Roach, ‘China’s Currency Manipulation: A Policy Debate’ (2012) 175(3) World Affairs < https://www.jstor.org/stable/41639016 > accessed 29 November 2020

[8] Troy Segal, ‘Currency Fluctuations: How they Affect the Economy?(Investopedia, 23 August 2019) <https://www.investopedia.com/articles/forex/080613/effects-currency-fluctuations-economy.asp> accessed 29 November 2020

[9] Ernest H. Preeg, ‘Exchange Rate Manipulation to Gain an Unfair Competitive Advantage: The Case Against Japan and China’ (n 2).

[10] Bryan Mercurio and Celine Sze Ning Leung, ‘Is China a “Currency Manipulator”?: The Legitimacy of China’s Exchange Regime Under the Current International Legal Framework’ (2009) 43(3) The International Lawyer 1257

[11] Ana Swanson, ‘The U.S. Labeled China a Currency Manipulator. Here’s What It Means’ The New York Times (6 August 2019) <https://www.nytimes.com/2019/08/06/business/economy/china-currency-manipulator.html> accessed 29 November 2020

[12] Rebecca M. Nelson, ‘Debates over Currency Manipulation’ (Congressional Research Service, 28 January 2020) <https://fas.org/sgp/crs/misc/IF10049.pdf> accessed 29 November 2020

[13] Scott Sumner, ‘Currency Manipulation: Reframing the Debate’ (Mercatus Center, February 2020) <https://www.mercatus.org/system/files/sumner_-_policy_brief_-_currency_manipulation_and_exchange_rates_-_v1.pdf > accessed 3 December 2020

[14] ibid.

[15] Farok J. Contractor, ‘Currency manipulation and why Trump is picking on Brazil and Argentina’ The Conversation (4 December 2019) <https://theconversation.com/currency-manipulation-and-why-trump-is-picking-on-brazil-and-argentina-128210> accessed 29 November 2020

[16] Economic and Social Council, ‘The Issue of Currency Manipulation’ (Economic and Social Council, THIMUN Affiliated Conference)

[17] Jason Fernando, ‘Nepalese Rupee (NPR)’ (Investopedia, 10 October 2019) < https://www.investopedia.com/terms/n/npr.asp#:~:text=The%20NPR%20is%20the%20national,with%20declining%20rates%20of%20inflation > accessed 29 November 2020

[18] Articles of Agreement of International Monetary Fund (adopted 22 July 1944, entered into force 27 December 1945) 2 UNTS 39 (IMF Agreement) art IV (1) (iii)

[19] Johnathan E. Sanford, ‘Currency Manipulation: The IMF and WTO’ (Congressional Research Service, 28 January 2011) <https://fas.org/sgp/crs/misc/RS22658.pdf> accessed 29 November 2020; Vera Thorstensen and Carolina Muller, ‘How does International Trade Regulation Addresses Exchange Rates Measures?’ (2014) 70(2) Revista Dierito GV < https://www.scielo.br/scielo.php?script=sci_arttext&pid=S1808-24322014000200379 > accessed 30 November 2020

[20] ibid.

[21] Chen Yu, ‘Currency Manipulation and WTO Laws: Should the Anti-Dumping Mechanism Be Entirely Dumped?’ (2019) 20(6) The Journal of World Investment & Trade <https://brill.com/view/journals/jwit/20/6/article-p891_5.xml?language=en > accessed 3 December 2020

The Pandemic as a Way to Socialism

SAIMON GHIMIRE*

1. Introduction

The SARS-CoV-2 virus, causing the disease COVID-19, has taken a form of global pandemic today. Among the cases with an outcome, 3% have died, making the death toll go up to 1.56 million (as of December 8th, 2020).[1] These numbers will only go up and so will the importance of vaccines and health services to prevent and cure the disease. For a pandemic of this magnitude, vaccines and health services, if not made readily available to the general public with minimum of costs, can claim even more lives. Health sector involves ethical and moral issues. Medicine forms an essential part of humanities. A state’s responsibility of providing health care to its citizens comes from marxist ethical theory.[2] Therefore, greed of pharmaceutical companies and hospitals should not hinder the goal of making medicines and health services available to all. A lot of problems that we face, including the problem in health sector, during the pandemic, can be traced to capitalism.

2. Covid-19, Health and Socialism

The corona pandemic has brought about severe social, economic and political crisis. The stock markets crashed, panicked people were bulk-buying supplies, and governments are still scrambling to respond. Inability of the government can be related to the effect of privatization of means of production. Such allocation of factors of production to a class of people, has caused class struggle, alienation from self, work & other people, and exploitation of labour,[3] while China’s control over the virus can be attributed to its government control over resources, which in other countries, is very weak.[4] Therefore, the inherent problem is concentration of resources to a class of people i.e. capitalism.

Political economist Grace Blakely debunks the idea that “if the market is flourishing, the rest of the society is as well”, taking the present pandemic and the situation after lockdowns, as a reference. While the rich have added to their wealth, the poor have lost more and more.[5] Critics to capitalism attribute mass deaths and daily deaths to capitalism and its failures. “Profit over people” has always been true in a capitalist society, even in health institutions. [6] “Survival of the richest” can be seen in the present pandemic. Thomas L. Friedman states, “Covid-19…is the logical outcome of our destructive war against nature”.[7] The mismanagement of animals in the Wuhan wet market, which is predicted to be the outbreak point of the virus, for the sake of profit, itself leads to the suggestion that the pandemic is a result of capitalism. [8]

2.1. Health Crisis as a way to Socialism

Marx in his theories, has dealt with public health and basic needs and how any inconvenience in such sector, the cause being capitalism, leads to destruction of capitalism. He firmly believed that capitalism sows seeds of its own destruction. Some even say that “public health is a mid-wife to Marxism”.[9] Commodification of even the basic elements of life can be seen in today’s capitalism-based society. We can see the profit of hospitals and giant pharma-companies is more important than lives of people. We have seen how loopholes in the law are being exploited for gains and profits, by such organizations. However, Marx believed that such traits of capitalism is what leads to its own destruction.

Ken Rogoff, a former economist from International Monetary Fund (IMF), had mentioned that “the next great battle between socialism and capitalism will be waged over human health and life expectancy.” Marx offers criticism to present practice of privatized hospitals and pharmas.[10] The present crisis has exposed the flawed economic structures, labour rights, social hierarchy, health organizations, leaders and human nature.[11] Joel Kovel, an eco-sociologist, in his book titled ‘The Enemy of Nature: End of Capitalism or the End of the World (2002)’, provided that nature would dominate over human creation of capitalism. As per Lovelock, in his book ‘The Revenge of Gaiga’, in any battle between the nature and humans, nature will always stand victorious. [12]

Economist Marina Mazzucato stated that the pandemic should make us rethink about our capitalist society. Alex Azar, the present U.S. Secretary of Health and Human Services has claimed that Covid-19 treatments and vaccines, if made, might not be available to the general public of America merely due to affordability issues.[13] Any health system is flawed, when we see that affordability is bigger concern than availability. This shows the problem with capitalism and Marxism (or socialism) being the possible solution.[14]

2.2. Theory of Metabolic Rift

People from the field of biology like Charle’s Darwin and Thomas Huxley have also influenced Marx’s idea of communism. More specificially, zoologist Ray Lankester, had mentioned about “nature’s revenge” in his book ‘Kingdom of Man’(1911), which is said to have influenced Marx.[15] Marx’s theory of metabolic rift was a way of looking at ecological or metabolic relations. Marx had said;

“Large landed property reduces the agricultural population to an ever decreasing minimum and confronts it with an ever growing industrial population crammed together in large towns; in this way it produces conditions that provoke and irreparable rift in the interdependent process of the social metabolism, a metabolism prescribed by the natural laws of life itself.”[16]

We can interpret this idea of Marx with the present situation. With large pharma-companies and capitalists taking over the general will and rights of the people, it is natural to have a political revolution or maybe a revolution in mentality of people. “Class” being the main focus of Marx’s study, it is important to understand his view on dispute between classes. Classes exists to this day and so does the struggle among the classes. At expense of the sick, health sectors have been making large profit. So, isn’t an “irreparable rift” inevitable against such system? As Marx has famously stated “workers of the world, unite! You have nothing to lose but your chains!”

2.3. Is Socialism the Answer?

In the present, people fear absolute socialistic health system, as it can lead to lack of health-services, which results to rise in prices. Public health can become a tool for the bureaucrats for personal gains and rise in price can be a real threat as it contributes to national revenue, which the bureaucrats can easily use for selfish motives.[17] However, taking the example of National Health Service (NHS) in the UK, one can observe that it works on socialist principle in limited distributional sense.[18] Market socialist principle in health care and health insurance policy is important to regulate public health sector.[19] Affordability and easy availability of health care is not exactly socialism.[20] It is “socialist principle” in the health sector that should be given importance rather than favouring capitalism  by citing fear of socialism. However, socialist redistributive policy of the US still is not efficient.[21] Thus, while some nations require an introduction to socialist principle in their health culture, some require revolution to their already-introduced system.

Adam Przeworksi has stated that “whether the socialist or the capitalist model has been more successful in practice is impossible tell.” Some even argue that socialism has never existed in its true form for it to fail, and thus, a comparison of capitalism and socialism cannot be done.[22] While it is difficult to establish methodological considerations so as to establish grounds to determine which of the two systems (capitalism or socialism) is better,[23] contrary to popular belief, empirical study shows that socialism (or rather socialist principle) have historically shown greater improvement to health and social indicators, than capitalism.[24] Vietnam’s socialist centrally planned economic regime aimed for provision of social services to all population free of charge. While resources and supplies were limited, an egalitarian approach ultimately improved its human development indicators in comparison to similar economically poor nations.[25] Similarly, in Cuba it can be seen how health indicators improved in comparison to the rest of Latin America after the Cuban revolution.[26]

3. Conclusion

A nation is not of capital but of its people and land. We have only proved Hobbes’s idea of State of Nature. According to him, humans are cruel by nature and there exists war of all against all.[27] For Cyrus Edson, “socialism of the microbe…is the chain of disease, which binds all the people of the community together.”[28] While the statement might be true to some extent, such “togetherness” is only within the classes rather than in between them. The rich have added to their riches while the poor have added more to their debts. The intent of the organizations and companies working on vaccines is to secure patents rather than saving lives. It has been more of a race rather than it being a work for a “cause”.[29]

“Social democracy” has always entailed establishment of socialist principle.[30] Present scholars to neo-marxism and their theories of the state, are the basis to solve the problems we face today. They see this situation as a chance to analyse the world we live in.[31] Without a revolution to the eco-political situation, the situation will worsen, if not now, definitely in the future. This reflects Marxian idea of changes from capitalism to socialism in his theory of dialectic materialism, where in, communism is the ultimate end to all synthesis. Further, it is important to establish a socialistic principle and reform along such lines. However, it is again equally important to note that, in the present world, economic reform, while is important, an unplanned and abrupt one can lead to further weakened public health system.[32] Therefore, the present pandemic has highlighted weaknesses in public health system of countries which have failed to fulfil its socialistic feature and thus, a planned reform in the public health sector is of utmost requirement.

* The author is a second year economics major and business data analytics major (dual major) student at Washburn University, Kansas, USA


[1] ‘Covid-19 Coronavirus Pandemic’ (Worldometer) <https://www.worldometers.info/coronavirus/> accessed 8 December 2020

[2] Bejnamin B. Page, ‘Socialism, Health Care, and Medical Ethics’ (1976) 6 (5) The Hasting Centre Report < https://www.jstor.org/stable/3561254 > accessed 2 December 2020

[3] Michael Heinrich and Alexander Locascio (trs), An Introduction to Three Volumes of Karl Marx’s Capital (NYU Press 2004)

[4] Carlos Martinez, ‘Karl Marx in Wuhan: How Chinese Socialism is Defeating COVID-19’ (2020) 10(2) International Critical Thought < https://www.tandfonline.com/doi/full/10.1080/21598282.2020.1779504 > accessed 6 December 2020

[5] Anastasya Eliseeva, ‘Coronavirus and the Crisis of Capitalism’ (New Frame, 13 March 2020) <https://www.newframe.com/coronavirus-and-the-crisis-of-capitalism/ > accessed 4 December, 2020

[6] Nick French, ‘How Capitalism Kills During a Pandemic’ (Jacobin, 26 March 2020) <https://www.jacobinmag.com/2020/03/capitalism-pandemic-coronavirus-covid-19-single-payer> accessed 4 December, 2020

[7] D. Raja, ‘Reading Marx in Times of Covid-19’, The Indian Express (4 May 2020) < https://indianexpress.com/article/opinion/columns/karl-marx-covid-19-capitalism-6393538/ >

[8] A. Alonso Agguire, Richard Catherina, Hailey Frye and Louise Shelly, ‘Illicit Wildlife Trade, Wet Markets, and Covid-19: Preventing Future Pandemics’ (2020) 12 (3) World Medical and Health Policy < https://onlinelibrary.wiley.com/doi/epdf/10.1002/wmh3.348 > accessed 28 November 2020

[9] Richard Horton, ‘Offline: Medicine and Marx’, (2017) 390 (10107) The Lancet < https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(17)32805-2/fulltext > accessed 28 November 2020

[10] ibid.

[11] Mariana Mazzukato, ‘Coronavirus and Capitalism: How will the Virus Change the Way the World Works?’ (World Economic Forum, 2 April 2020) <https://www.weforum.org/agenda/2020/04/coronavirus-covid19-business-economics-society-economics-change> accessed  1 December, 2020

[12] Anitra Nelson, ‘COVID-19: Capitalist and Post-capitalist Perspective’, (2020) 13(3) Human Geography <https://journals.sagepub.com/doi/pdf/10.1177/1942778620937122> accessed 2 December, 2020

[13] Mariana Mazzukato, ‘Capitalism’s Triple Crisis’, (Project Syndicate, 30 March 2020) < https://www.project-syndicate.org/commentary/covid19-crises-of-capitalism-new-state-role-by-mariana-mazzucato-2020-03 > accessed 30 March, 2020

[14] Rob Wallane, Alex Liebman, Luis Fernando Chaves and Rodrick Wallace, ‘Covid-19 and Circuits of Capital’, (Monthly Review, 1 May 2020) <https://monthlyreview.org/2020/04/01/covid-19-and-circuits-of-capital/> accessed 3 December 2020

[15] Lewis S. Feuer, ‘The Friendship of Edwin Ray Lankester and Karl Marx: The Last Episode in Marx’s Intellectual Evolution’, (1979) 40(4) Journal of the History of Ideas <https://www.jstor.org/stable/2709363> accessed 3 December 2020

[17] James I. Ausman, ‘What happened to USA health care on the way to socialism?’ (2018) 9 (196) Surgical Neurology International < https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6187962/ > accessed 3 December 2020

[16] ‘Marx on the Metabolic Rift: How Capitalism Cuts us off from the Nature’ (MR Online, 15 October 2019) <https://mronline.org/2019/10/15/marx-on-the-metabolic-rift-how-capitalism-cuts-us-off-from-nature/> accessed 29 November 2020

[18] Martin Powell, ‘Socialism and British National Health Service’ (1997) 5 (3) Health Care Analysis < https://link.springer.com/article/10.1007/BF02678377 > accessed 2 December 2020

[19] H.E. Frech III and Peter Zweifel, ‘Market Socialism and Community Rating in Health Insurance’ (2017) 59 (3) Comparative Economics Studies < https://link.springer.com/article/10.1057%2Fs41294-017-0027-3 > accessed 2 December 2020

[20] Etienne Deffarges, ‘Is Universal Health Care Socialism?’ (The Health Care Blog, 5 September 2018) < https://thehealthcareblog.com/blog/2018/09/05/is-universal-health-care-socialism/ > accessed 2 December 2020; Joel N. Naroff, ‘It isn’t enough to Label Medicare-for-all as Socialism. We need Solutions not Slogans’ (The Philadelphia Inquirer, 11 December 2019) < https://www.inquirer.com/business/medicare-for-all-single-payer-health-care-proposals-socialism-20191211.html > accessed 2 December 2020

[21] Lee Nason, ‘Letter: Health care problems are from socialism not capitalism’ South Coast Today (17 February 2020) < https://www.southcoasttoday.com/opinion/20200217/letter-health-care-problems-are-from-socialism-not-capitalism > accessed 1 December 2020

[22] Vicente Navarro, ‘Has Socialism Failed? An Analysis of Health Indicators Under Socialism’ (1992) 22 (4) International Journal of Health Services < https://www.jstor.org/stable/45131072 > accessed 2 December 2020

[23] Roberta Garner and Larry Garner, ‘ Socialism, Capitalism and Health: A Comment’ (1994) 58 (1) Science and Society < https://www.jstor.org/stable/40403386 > accessed 2 December 2020

[24] Vicente Navarro, ‘Has Socialism Failed? An Analysis of Health Indicators Under Socialism’ (n 22)

[25] Alberto Gabriele, ‘ Social Services Policies in a Developing Market Economy Oriented Towards Socialism: The Case of Health System Reforms in Vietnam’ (2006) 13 (2) Review of International Political Economy < https://www.jstor.org/stable/25124072 > accessed 2 December 2020

[26] Vicente Navarro, ‘Has Socialism Failed? An Analysis of Health Indicators Under Socialism’ (n 22)

[27] ‘Hobbes’s Moral and Political Philosophy’ (Stanford Encyclopedia of Philosophy, 12 February 2020) < https://plato.stanford.edu/entries/hobbes-moral/#StaNat > accessed 5 December 2020

[28] Cyrus Edson, ‘The Microbe as a Social Leveller’, (1895) 161(467) The North American Review <https://www.jstor.org/stable/25103596> accessed 6 December 2020

[29] Nick French, ‘How Capitalism Kills During a Pandemic’ (n 6).

[30] Vicente Navarro, ‘Has Socialism Failed? An Analysis of Health Indicators Under Socialism’ (n 22)

[31] Annastruman, ‘Climate Emergency’, Covid-19 and the Australian Capitalist State’ (Developing Economics, 29 March 2020) <https://developingeconomics.org/2020/03/29/climate-emergency-covid-19-and-the-australian-capitalist-state/> accessed 28 November 2020

[32] Alberto Gabriele, ‘ Social Services Policies in a Developing Market Economy Oriented Towards Socialism: The Case of Health System Reforms in Vietnam’ (n 25)