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This paper rethinks the relationships between capitalist development in indigenous places and the fabric of local differences and specificities. It first develops a critical appraisal of the celebration of ethnic identities, local agency and indigenous knowledge in existing literatures. It suggests that, based on such insights, we can further envision the possibility of questioning and problematising the ontology and concept of the capitalist economy. Above all, this paper is interested in non‐capitalist factors percolating into capitalist economies and creating fissures in their logical and ontological coherence. It examines how capitalist economies depend on local specificities to achieve particular configurations. We elucidate this argument with a case study of indigenous development in Lugu Lake, Southwest China, which is inhabited by the ethnic Mosuo people. Through the dual lenses of land and labour, we pay special attention to the transition from grassroots development initiatives to heavy dependence on exogenous capital and entrepreneurs. [ABSTRACT FROM AUTHOR]

The post‐development school associated with the thought of Arturo Escobar treats development as a discursive invention of the West, best countered by ethnographic attention to local knowledge of people marginalised by colonial modernity. This approach promises paths to more equitable and sustainable alternatives to development. Post‐development has been criticised vigorously in the past. But despite its conceptual and political shortcomings, it remains the most popular critical approach to development and is reemerging in decolonial and pluriversal guises. This paper contends that the post‐development critique of mainstream development has run its course and deserves a fresh round of criticism. We argue that those committed to struggles for social justice must critically reassess the premises of post‐development and especially wrestle with the problem of representation. We contend that Gayatri Spivak's work is particularly important to this project. We review some of Spivak's key texts on capitalism, difference, and development to clarify the virtues of her approach. [ABSTRACT FROM AUTHOR]