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Derisking Developmentalism: A Tale of Green Hydrogen

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  • Daniela Gabor
  • Ndongo Samba Sylla

Abstract

In the global race to scale up green hydrogen, a renewed appetite for the visible hand of the state once again promises to expand developmental space for low‐ and middle‐income countries. On the African continent, several countries have announced green industrialization ambitions that rely on mobilizing, through various ‘derisking’ schemes, private (institutional) capital looking for investible opportunities. To examine the transformative potential of this new derisking developmentalism, this article extends the critical macrofinance lens to include Thandika Mkandawire's theorization of post‐independence African developmental states. Using Namibia as an illustration, it argues that an assumption of ‘divine coincidence’ creates the ideological space for the state to forge derisking blocs but structurally weakens its ability to discipline private capital into pursuing green industrialization. As (foreign) capital dominates the state‒capital relationship in derisking developmentalism, the new green rules written by powerful investors and global North governments threaten to transform global South countries into consumers of green hydrogen technology and generators of yield for portfolio investors, thus reinforcing the structural drivers of their ongoing external debt vulnerabilities. Instead, countries should experiment with green public ownership and partnerships that discipline local green industries. Such strategies require replacing the Wall Street Consensus with a supportive global macrofinancial framework the authors call ‘Green Bandung Woods’.

Suggested Citation

  • Daniela Gabor & Ndongo Samba Sylla, 2023. "Derisking Developmentalism: A Tale of Green Hydrogen," Development and Change, International Institute of Social Studies, vol. 54(5), pages 1169-1196, September.
    • Handle: RePEc:bla:devchg:v:54:y:2023:i:5:p:1169-1196
    DOI: 10.1111/dech.12779
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    References listed on IDEAS

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    1. Rey, Hélène, 2015. "Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence," CEPR Discussion Papers 10591, C.E.P.R. Discussion Papers.
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    6. Daniela Gabor, 2021. "The Wall Street Consensus," Development and Change, International Institute of Social Studies, vol. 52(3), pages 429-459, May.
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    Cited by:

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    2. Vezzoni Rubén, 2024. "A “return of the state” in energy transitions? The making of a hydrogen economy in the European Union," ZFW – Advances in Economic Geography, De Gruyter, vol. 68(3-4), pages 195-212.
    3. Gabor, Daniela & Braun, Benjamin, 2023. "Green macrofinancial regimes," SocArXiv 4pkv8_v1, Center for Open Science.
    4. Kalvelage Linus & Tups Gideon, 2024. "Friendshoring in global production networks: state-orchestrated coupling amid geopolitical uncertainty," ZFW – Advances in Economic Geography, De Gruyter, vol. 68(3-4), pages 151-166.
    5. Sabine Dörry & Christian Schulz, 2024. "Creating Low‐Carbon Economies: Probing Transition Dynamics through the Lens of Field Theory," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 115(5), pages 660-673, December.

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