States, Money and the Persistence of Colonial Financial Hierarchies in British West Africa

Abstract

This article contributes to debates about the persistence of colonial hierarchies in global finance by examining the reproduction of key features of colonial monetary and financial systems through the end of formal colonialism in West Africa, with a focus on Ghana. The article draws together engagements with Marxian theories of money and of the colonial state, and an examination of a key period which has often not received sufficient direct attention in debates about colonialism and financial subordination: the breakdown and end of formal colonial rule, roughly between 1930 and 1960. The central puzzle addressed in this article is how, despite the explicit desire on the part of nationalist political leaders to overturn colonial financial systems, these wound up being reproduced through the negotiation of political independence. The article shows how the entanglements of colonial monetary and financial systems with processes of state formation posed severe limits on efforts to articulate a ‘developmental’ colonialism after World War II. Efforts to work around these limits ultimately reinforced the reliance of the colonial and postcolonial state on extractive and hierarchical structures of global finance. In short, the article shows how the contradictory position of the state in colonial capitalism is vital to understanding the persistence of colonial monetary and financial structures.

Monetary sovereignty and the ‘Invisible Leviathan’: the politics of Marx’s theory of money

“…While the Marxist approach to monetary sovereignty outlined above differs radically from that found in the Heterodox literature, it can be easily synthesized with many of this literature's insights (see Alami, 2019;Bernards, 2023). For instance, nothing in the Marxist interpretation invalidates Structuralist and Post-Keynesian analyses of the global currency hierarchy, nor their normative aspirations of achieving more equitable international monetary relations (Prates, 2020;Gadha et al, 2022).…”