Exploring the Interrelationship Between Value, Rent, and Finance in the Context of Water Financialisation

The interrelationship between value, rent, and finance is crucial for understanding the dynamics of financialisation, particularly in the context of water resources. The paper begins by addressing the paradox identified by Brett Christophers, which highlights a disconnect between value theory and the financialisation of nature. This disconnect raises questions about how value is conceptualised within financial practices. The authors argue that a comprehensive understanding of finance requires integrating the concept of rent into the analysis. By doing so, they propose a triadic framework that elucidates the connections among these three elements. The significance of this framework lies in its ability to reveal how fictitious capital actively seeks out forms of rent, thereby deepening the interconnections between value, rent, and finance. This foundational understanding sets the stage for a critical examination of existing literature on the financialisation of water, which often overlooks the nuances of value creation and extraction.

The authors introduce the value-rent-finance triad as a novel analytical tool for exploring the financialisation of water. This triad posits that value is not merely a product of financial practices but is also intricately linked to the concept of rent. The commodification of land and infrastructure as financial assets is predicated on the extraction of rent, which is actively pursued by fictitious capital. This relationship challenges traditional views that separate finance from productive activities. The paper critiques the notion of fictitious capital as unproductive, arguing instead that it plays a vital role in the commodification of resources. By examining the social relations of private monopoly ownership, the authors highlight how these dynamics mediate the capitalisation of revenue streams associated with natural resources. This analysis underscores the importance of understanding the historical and geographical contexts in which these financial practices occur, revealing the complexities of value extraction in the financialisation process.

The paper concludes with a critical review of the literature surrounding the financialisation of water. The authors note that while there has been significant research on value creation and extraction, there remains a lack of clarity regarding the definition of value itself. This gap in the literature limits the potential for a robust dialogue between value theory and financialisation studies. The authors argue that integrating the concept of rent into this discourse can enrich the analysis and provide new insights into the financialisation process. By applying Marxian categories of monopoly and absolute rent, the authors demonstrate how value, rents, and finance are interrelated components of financialisation. This exploration not only contributes to academic debates but also has practical implications for understanding the governance and management of water resources in a financialised context. The triadic structure proposed in the paper offers a versatile framework that can be applied to other resources and geographical contexts, enhancing its relevance and applicability.