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conversos—or people who shared ancestry with them—came to the Americas in disproportionate numbers

the Spanish Inquisition reached into the colonies, too. Those found guilty of observing Jewish practices in Mexico, for example, were burned at the stake.

Nearly a quarter of the Latin Americans shared 5 percent or more of their ancestry with people living in North Africa and the eastern Mediterranean, including self-identified Sephardic Jews. DNA alone cannot prove that conversos were the source of this ancestry, but it fits with the historical record. This pattern of widespread but low North African and eastern Mediterranean ancestry in the population suggests that its source is centuries old, putting the date around the early days of New Spain. In contrast, more recent immigration to Latin America from Italy and Germany in the late 19th century show up concentrated in relatively few people in a few geographic areas.

By the 17th century, Graizbord says, most conversos had assimilated and lost any connection to Jewish customs. Today, some of their descendants are reclaiming their Jewish identity. They can join Jewish genealogy groups. Some have even converted to Judaism. DNA tests are fanning interest, too. Alexandria Ocasio-Cortez, the New York politician whose family comes from Puerto Rico, recently revealed during a Hanukkah event that she has Sephardic Jewish ancestry.

It was this moment, when Europe and what is nowadays styled sub-Saharan Africa came into permanent deep contact, that laid the foundations of the modern age.

It is not that the basic facts are unknown; it is that they have been siloed, overlooked or swept into dark corners. It is essential to restore key chapters such as these to their proper place of prominence in our common narrative of modernity.

The rise of Europe was not founded on any innate or permanent characteristics that produced superiority. To a degree that remains unrecognised, it was built on Europe’s economic and political relations with Africa. The heart of the matter here, of course, was the massive, centuries-long transatlantic trade in enslaved people who were put to work growing sugar, tobacco, cotton and other cash crops on the plantations of the New World.

The long thread that leads us to the present began in those three decades at the end of the 15th century, when commerce blossomed between Portugal and Africa, sending a newfound prosperity washing over what had previously been a marginal European country. It drove urbanisation in Portugal on an unprecedented scale, and created new identities that gradually freed many people from feudal ties to the land. One of these novel identities was nationhood, whose origins were bound up in questing for wealth in faraway lands, and soon thereafter in emigration and colonisation in the tropics.

understanding that the world was infinite in its social complexity, and this required a broadening of consciousness, even amid the colossal violence and horror that accompanied this process, and an ever more systematic unmooring from provincialism

Portugal overwhelmingly dominated Europe’s trade in Africans, and slavery was beginning to rival gold as Portugal’s most lucrative source of African bounty. By then, it was already on its way to becoming the foundation of a new economic system based on plantation agriculture. Over time, that system would generate far more wealth for Europe than African gold or Asian silks and spices.

Malachy Postlethwayt, a leading 18th-century British expert on commerce, called the rents and revenues of plantation slave labour “the fundamental prop and support” of his country’s prosperity. He described the British empire as “a magnificent superstructure of American commerce and naval power [built] on an African foundation”. Around the same time, an equally prominent French thinker, Guillaume-Thomas-François de Raynal, described Europe’s plantations worked by African enslaved people as “the principal cause of the rapid motion which now agitates the universe”. Daniel Defoe, the English author of Robinson Crusoe, but also a trader, pamphleteer and spy, bested both when he wrote: “No African trade, no negroes; no negroes, no sugars, gingers, indicoes [sic] etc; no sugar etc, no islands, no continent; no continent, no trade.”

In sugar’s wake, cotton grown by enslaved people in the American south helped launch formal industrialisation, along with a second wave of consumerism. Abundant and varied clothing for the masses became a reality for the first time in human history

Through the development of plantation agriculture and a succession of history-altering commercial crops – tobacco, coffee, cacao, indigo, rice and, above all, sugar – Europe’s deep and often brutal ties with Africa drove the birth of a truly global capitalist economy

Without African peoples trafficked from its shores, the Americas would have counted for little in the ascendance of the west. African labour, in the form of enslaved people, was what made the very development of the Americas possible. Without it, Europe’s colonial projects in the New World are unimaginable.

Spain and Portugal waged fierce naval battles in west Africa over access to gold. Holland and Portugal, then unified with Spain, fought something little short of a world war in the 17th century in present-day Congo and Angola, vying for control of trade in the richest sources of enslaved people in Africa. On the far side of the Atlantic, Brazil – the biggest producer of slave-grown sugar in the early 17th century – was caught up in this same struggle, and repeatedly changed hands. Later in that same century, England fought Spain over control of the Caribbean.

By the mid-1660s, just three decades or so after England initiated an African slave-labour model for its plantations there – one that was first implemented in the Portuguese colony of São Tomé little more than a century earlier – sugar from Barbados was worth more than the metal exports of all of Spanish America.

Nowadays, the consensus estimate on the numbers of Africans brought to the Americas hovers about 12 million. Lost in this atrocious but far too neat accounting is the likelihood that another 6 million Africans were killed in or near their homelands during the hunt for slaves, before they could be placed in chains. Estimates vary, but between 5% and 40% perished during brutal overland treks to the coast, or while being held, often for months, in barracoons, or holding pens, as they awaited embarkation on slave ships. And another 10% of those who were taken aboard died at sea during an Atlantic transit that constituted an extreme physical and psychological test for all those who were subjected to it. When one considers that Africa’s total population in the mid-19th century was probably about 100 million, one begins to gauge the enormity of the demographic assault that the slave trade represented.

It is often remarked that Africans themselves sold enslaved people to Europeans. What is less well known is that in many parts of Africa, such as the Kingdom of Kongo and Benin, Africans fought to end the trade in human beings once they understood its full impact on their own societies

Specialists aside, few imagine that islands like Barbados and Jamaica were far more important in their day than were the English colonies that would become the United States. The nation now known as Haiti most of all. In the 18th century it became the richest colony in history, and in the 19th, by dint of its slave population’s successful revolution, Haiti rivalled the US in terms of its influence on the world, notably in helping fulfil the most fundamental Enlightenment value of all: ending slavery.

My biggest surprise came in Barbados, whose slave-produced sugar, arguably more than any other place on earth, helped seal England’s ascension in the 17th century. I visited the island not long ago, determined to find as many traces of this legacy as possible, only to discover how thoroughly they had been hidden or effaced. Among my top priorities was to visit one of the largest slave cemeteries anywhere in the hemisphere, which included the excavated remains of nearly 600 people. It took me several attempts just to find the cemetery, which had no signage from any public road. Few local residents seemed aware of its historical importance, or even of its existence.

Nearly a century ago, WEB Du Bois had already affirmed much of what we needed to know on this topic. “It was black labour that established the modern world commerce, which began first as a commerce in the bodies of the slaves themselves,” he wrote. Now is the time to finally acknowledge this.

More than a century and a half before Columbus’s voyages, a Malian ruler named Abu Bakr II was said to have equipped an expedition involving two hundred ships that attempted to discover “the furthest limit of the Atlantic Ocean.” The expedition failed to return save for one vessel, whose survivor claimed that “there appeared in the open sea [as it were] a river with a powerful current…. The [other] ships went on ahead but when they reached that place they did not return and no more was seen of them.” Some modern historians (Michael Gomez, Toby Green, and John Thornton, among others) have interpreted this to mean that the Malian ships were caught in the Atlantic Ocean’s Canary Current, which sweeps everything in its path westward at about the same latitude as Mali.Abu Bakr II supposedly responded not by abandoning his dreams of exploration but by equipping a new and far larger expedition, this time involving two thousand ships and with himself in command. That was the last that was seen of him. We know of this story only because when Abu Bakr’s successor, Mansa Musa, was staying in Cairo in 1324–1325 on his pilgrimage to Mecca, the secretary of the chancery of the Mamluk Dynasty asked him how he had come to power and recorded his reply. There are no other traces of Abu Bakr’s attempt.

Mansa Musa, however, who took power in 1312, left such a powerful stamp on his time that it is remarkable how little known he is today. Recently it has been claimed that he was the richest person who ever lived. Speculation over the size of his fortune (“Mansa” means ruler) is based almost entirely on his three-to-twelve-month stay in Cairo on his way to Mecca. The Arabic-language sources vary on many of the details but leave an unmistakable impression of lucre the likes of which have rarely been seen anywhere. Badr al-Din al-Halabi wrote that Musa “appeared [in Cairo] on horseback magnificently dressed in the midst of his soldiers” with more than 10,000 attendants. Another source claims that he “brought with him 14,000 slave girls for his personal service.” A third spoke of the “great pomp” of the pilgrimage, saying that Musa traveled “with an army of 60,000 men who walked before him as he rode. There were [also] 500 slaves, and in the hand of each was a golden staff each made from 500 mithqāls of gold.”

the Malian leader’s huge slave entourage may have cemented the image of Sudanic Africa as an inexhaustible source of black labor in lastingly harmful ways

Between the money handed out and that spent extravagantly in the markets of the city, the value of gold in the region dipped sharply, and according to some accounts remained depressed for years. Musa was so profligate that he had to borrow funds to finance his return voyage

Gomez speculates that the grand geopolitical gambits of Abu Bakr and Mansa Musa shared similar motives: both were looking for a way for Mali to escape the threatening political interference and costly economic control of the Berber middlemen of North Africa through whose territory their gold passed on its way to Europe and elsewhere

the Sahara has long been miscast as a barrier separating a notional black Africa from an equally notional white or Arab one. In reality, it argues, the desert has always been not just permeable but heavily trafficked, much like the ocean, with trade as well as religious and cultural influences traveling back and forth, and with world-shaping effects

early in the European encounter with Africa there was a tremendous fluidity and confusion over the labels the newcomers applied to the indigenous peoples they met, with the newly explored lands of West Africa being variously fancied as Guiné, Ethiopia, and even India. Blackness, however, was essentialized from the very beginning

when they crossed the Senegal River on their way south down the coast of West Africa, they found that they lacked the means to prevail militarily over the confident and capable African kingdoms they encountered. The Portuguese thereafter made a pragmatic turn away from an approach that relied on surprise raids to one based instead on trade and diplomacy.

a pattern in which the Portuguese obtained slaves not from unclaimed territories inhabited by stateless societies but rather from African kings with legitimate sovereignty over their lands, as when they sold captives won in wars with their neighbors

Of the broader interactions in the region between these early Portuguese seekers of fortune and local sovereigns, Bennett writes:While both sides constantly struggled to impose their traditions on the commercial formalities, the African elite usually dictated the terms of trade and interaction. Portuguese subjects who violated African laws quickly risked stiff fines or found their lives in danger. Here we are clearly a very long way from the view—commonly propagated in the ascendant West after the transatlantic slave trade had increased dramatically and European colonization and plantation agriculture had taken firm hold in the New World—that Africans were mere savages who subsisted in a near state of nature.

At the core of Bennett’s book is the argument that the fierce competition between Portugal and Spain over the African Atlantic, which was significantly mediated by the Church, was crucial to the creation of the modern nation-state and of what became modern European nationalism. Early national identities in Europe were forged, to a substantial extent, on the basis of competition over trade and influence in Africa. And this, Bennett says, gets completely lost in Western histories that fast-forward from the conquest of the Canary Islands to Columbus’s arrival in the Americas. “We lose sight of the mutually constitutive nature of fifteenth-century African and European history…whereby Africa figured in the formation of Iberian colonialism and thus the emergence of early modern Portugal and Castile,” he writes.

the often surprising success that Africans had throughout the first four hundred years of their encounter with Europe

That Africans themselves participated in the Atlantic slave trade is by now widely known, and Green by no means skimps on the details. What is less well known in his account is the determined and resourceful ways that a number of major African states struggled to insulate themselves from the slave trade and resist Europe’s rising dominance

Faced with Kongo’s resistance to expanding the slave trade, in 1575 Portugal founded a colony adjacent to the kingdom, at Luanda (now in Angola), which it used as a base to wage an aggressive destabilization campaign against its old partner. Kongo resisted the Portuguese doggedly, eventually turning to Holland as an ally, because that country was not yet engaged in slaving and was an enemy of the then unified kingdoms of Spain and Portugal. The 1623 letter by Kongo’s King Pedro II initiating an alliance with Holland requested “four or five warships as well as five or six hundred soldiers” and promised to pay for “the ships and the salaries of the soldiers in gold, silver, and ivory.” Holland soon entered into the proposed alliance, hoping that by cutting off the supply of slaves from this region, which alone supplied more than half of those sent to Brazil and the Spanish Indies, Brazil itself, a plantation society and at the time Portugal’s leading source of wealth, would become unviable.

What ultimately undid Kongo, the horrific demographic drain of the slave trade that followed its defeat by Portugal in 1665, was a vulnerability it shared with some of the other important late holdouts against European encroachment—powerful and sophisticated kingdoms like the Ashanti Empire and Benin—which was a loss of control over its money supply. In Kongo, a locally made cloth of high quality was the main traditional measure of value and means of exchange, alongside a type of seashell, the nzimbu, harvested along the nearby coast. The Dutch, discovering the local fixation on cloth, flooded the region with its early industrial textiles, wiping out the market for Kongo’s own manufacture. After they gained control of Luanda, the Portuguese similarly flooded the region with shells, both local ones and others imported from the Indian Ocean. Similar monetary catastrophes befell the few big surviving West African kingdoms—mostly as a result of the fall in the price of gold following New World discoveries of gold and silver.

“For several centuries, Western African societies exported what we might call ‘hard currencies,’ especially gold; these were currencies that, on a global level, retained their value over time.” In return, Africans received cowries, copper, cloth, and iron, all things that declined in value over time. All the while, Africa was bled of its people, as slave labor was being put to productive use for the benefit of the West

the root causes of many of the problems of the present lie precisely in this more distant past

“Trust in this British government’s good faith, never high, is now minimal … on all sides in Northern Ireland.” 

Johnson declared recently that Northern Ireland is a part of the U.K. in exactly the same fashion as are its other constituent parts: England, Scotland and Wales. This is simply untrue. No U.K. prime minister since Irish Partition in 1921 has sought to pretend such a thing. Modern British governments have acknowledged that Northern Ireland remains a part of the U.K. — as long as that is the wish of its own people. And polls have shown a majority in the north now favors holding a referendum on exactly that proposition.

Unless Britain treads very carefully indeed, which recent events suggest that this government is not good at, militant Irish Republicanism could revive, the killing on the streets resume.

In the grand scheme of things — compared with U.S. confrontation with China, Afghanistan threatened with anarchy, Russian disruption of the democratic West — none of the friction points between Britain and the EU threatens an immediate or severe crisis. It was always inevitable that Brexit would generate issues and disputes. But the tensions involving Gibraltar, migration and Northern Ireland highlight the perils facing Johnson’s nation as a consequence of having made the historic choice to go it alone. The standard-bearers for Brexit made grandiose claims that it would “set Britain free” to develop its full potential. But freedom can also bring loneliness. Johnson is accumulating foreign adversaries — not quite enemies, but people who do not wish him well — much faster than he is winning allies and admirers.

Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South

Today, we are told, the world economy functions as a meritocracy: countries that have strong institutions, good markets, and a steadfast work ethic become rich and successful, while countries that lack these things, or which are hobbled by corruption and bad governance, remain poor. This assumption underpins dominant perspectives in the field of international development (Sachs, 2005, Collier, 2007, Rostow, 1990, Moyo, 2010, Calderisi, 2007, Acemoglu and Robinson, 2012), and is reinforced by the rhetoric, common among neoclassical economists, that free-trade globalization has created an “even playing field”.

Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.

Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South (e.g., Naoroji, 1902, Pomeranz, 2000, Beckert, 2015, Moore, 2015, Bhambra, 2017, Patnaik, 2018, Davis, 2002).

for every unit of embodied resources and labour that the South imports from the North they have to export many more units to pay for it, enabling the North to achieve a net appropriation through trade. This dynamic was theorized by Emmanuel (1972) and Amin (1978) as a process of “unequal exchange”.Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.

Following Dorninger et al. (2021), we use a “footprint” analysis of input–output data to quantify the physical scale of raw materials, land, energy and labour embodied in trade between the North and South, looking not only at traded goods themselves but also the upstream resources and labour that go into producing and transporting those goods, including the machines, factories, infrastructure, etc.

Grounding our analysis in the physical dimensions of unequal exchange is important for several reasons. First, these resources – raw materials, land, labour and energy – embody the productive potential that is required for meeting human needs (use-value) and for generating economic growth (exchange-value). Physical drain is therefore ultimately what drives global inequalities in terms of access to provisions, as well as in terms of GDP or income (see Hornborg, 2020). Second, this approach allows us to maintain sight of the ecological impacts of unequal exchange. We know that excess energy and material consumption in high-income nations, facilitated by appropriation from the rest of the world, is causing ecological breakdown on a global scale. Tracing flows of resources embodied in trade allows us to determine the extent to which Northern appropriation is responsible for ecological impacts in the South; i.e., ecological debt (Roberts and Parks, 2009, Warlenius et al., 2015, Hornborg and Martinez-Alier, 2016).

Due to the growing fragmentation of international commodity chains, monetary databases on bilateral gross trade flows have been criticised for not accurately depicting the monetary interdependencies between national economies (Johnson and Noguera, 2012), i.e., the amount of a countries’ value added that is induced by foreign final demand and international trade relations. Trade in Value Added (TiVA) indicators Johnson and Noguera, 2012, Timmer et al., 2014 are designed to take into account the complexity of the global economy. The TiVA concept is motivated by the fact that, in monetary terms, trade in intermediates accounts for approximately two-thirds of international trade. Imports (of intermediates) are used to produce exports and hence bilateral gross exports may include inputs (i.e., value added) from third party countries (Stehrer, 2012). TiVA reveals where (e.g., in which country or industry) and how (e.g. by capital or labour) value is added or captured in global commodity chains (Timmer et al., 2014).

TiVA, which is sometimes referred to as the “value footprint”, is the monetary counterpart of the MRIO-based environmental footprint because both indicators follow the same system boundaries, i.e., all supply chains between production and final consumption of two countries including all direct and indirect interlinkages. Moreover, in contrast to global bilateral monetary trade flows, TiVA is globally balanced, meaning that national exports and imports globally sum up to zero. This is an important feature of the TiVA indicator that facilitates more consistent and unambiguous assessments.

for every unit of embodied raw material equivalent that the South imports from the North, they have to export on average five units to “pay” for it

For land the average ratio is also 5:1, for energy it is 3:1, and for labour it is 13:1

Table 1. Resource drain from the South.ResourceNorth → South flows 2015South → North flows 2015Drain from South in 2015Cumulative drain from South 1990–2015Raw material equivalents [Gt]3.3715.3912.02254.40Embodied land [mn ha]527.421,349.01821.5932,987.23Embodied energy [EJ]21.5543.5121.06650.34Embodied labour [mn py-eq]31.11219.22188.125,956.62

in the year 2015 the North’s net appropriation from the South totalled 12 billion tons of raw materials, 822 million hectares of land, 21 exajoules of energy (equivalent to 3.4 billion barrels of oil), and 188 million person-years equivalents of labour (equivalent to 392 billion hours of work). By net appropriation we mean that these resources are not compensated in equivalent terms through trade; they are effectively transferred gratis. And this appropriation is not insignificant in scale; on the contrary, it comprises a large share (on average about a quarter) of the North’s total consumption.

significant consequences for the global South, in terms of lost use-value. This quantity of Southern raw materials, land, energy and labour could be used to provision for human needs and develop sovereign industrial capacity in the South, but instead it is mobilized around servicing consumption in the global North.

Eight hundred and twenty-two million hectares of land, which is twice the size of India, would in theory be enough to provide nutritious food for up to 6 billion people, depending on land productivity and diet composition

material use is tightly linked to environmental pressures. It accounts for more than 90% of variation in environmental damage indicators (Steinmann et al., 2017), and more than 90% of biodiversity loss and water stress (International Resource Panel, 2019). Moreover, as Van der Voet et al. (2004) demonstrate, while impacts vary by material, and vary as technologies change, there is a coupling between aggregate mass flows and ecological impact. Net flows of material resources from South to North mean that much of the impact of material consumption in the North (43% of it, net of trade) is suffered in the South. The damage is offshored.

Industrial ecologists hold that global extraction and use of materials should not exceed 50 billion tons per year (Bringezu, 2015). In 2015, the global economy was using 87 billion tons per year, overshooting the boundary by 74% and driving ecological breakdown. This overshoot is due almost entirely to excess resource consumption in global North countries. The North consumed 26.71 tons of materials per capita in 2015, which is roughly four times over the sustainable threshold (6.80 tons per capita in 2015). Our results indicate that most of the North’s excess consumption (58% of it) is sustained by net appropriation from the global South; without this appropriation, material use in high-income nations would be much closer to the sustainable level.

In consumption-based terms, the North is responsible for 92% of carbon dioxide emissions in excess of the planetary boundary (350 ppm atmospheric concentration of CO2) (Hickel, 2020), while the consequences harm the South disproportionately, inflicting dramatic social and economic costs (Kikstra et al., 2021b, Srinivasan et al., 2008). The South suffers 82–92% of the costs of climate change, and 98–99% of the deaths associated with climate change (DARA, 2012)

Net appropriation of land means soil depletion, water depletion, and chemical runoff are offshored; net appropriation of energy means that the health impacts of particulate pollution are offshored; net appropriation of labour means that the negative social impacts of exploitation are offshored, etc (Wiedmann and Lenzen, 2018). In the case of non-renewable resources there is also a problem of depletion: resources appropriated from the South are no longer available for future generations to use (Costanza and Daly, 1992, World Bank, 2018), which is particularly problematic given that under conditions of net appropriation economic losses are not offset by investments in capital stock (cf. Hartwick, 1977). Finally, the extractivism that underpins resource appropriation generates social dislocations and conflicts at resource frontiers (Martinez-Alier, 2021).

the value of resources and labour cannot be quantified in dollars, and there is no such thing as a “correct” price.

Prices under capitalism do not reflect value or utility in any objective way. Rather, they reflect, among other things, the (im)balance of power between market agents (capital and labour, core and periphery, lead firms and their suppliers, etc); in other words, they are a political artefact

While prices by definition do not reflect value, they do allow us to compare the scale of drain to prevailing monetary representations of production and income in the world economy.

Fig. 2 shows that drain from the South in 2015 amounted to $14.1 trillion when measured in terms of raw material equivalents, $5.1 trillion when measured in terms of land, $3.6 trillion when measured in terms of energy and $20.3 trillion when measured in terms of labour.

Over the period 1990–2015, the drain sums to $242 trillion (constant 2010 USD). This represents a significant “windfall” for the North, similar to the windfall that was derived from colonial forms of appropriation; i.e., goods that did not have to be produced on the domestic landmass or with domestic labour, and did not have to be bought on the domestic market, or paid for with exports (see Pomeranz, 2000, Patnaik, 2018). While previous studies have shown that the price distortion factor increased dramatically during the structural adjustment period in the 1980’s (Hickel et al., 2021), our data confirms that since the early- to mid-1990’s it has tended to decline slightly. This means that the increase in drain during the period 1990–2007, prior to the global financial crisis, was driven primarily by an increase in the volume of international trade rather than by an increase in price distortion.

Table 3 shows that, over the 1990–2015 period, resources appropriated from the South have been worth on average roughly a quarter of Northern GDP.

the North’s reliance on appropriation from the South has generally increased over the period (despite a significant drop after the global financial crisis), whereas the South’s losses as a share of total economic activity have generally decreased, particularly since 2003, due to an increase in South-South trading and higher domestic GDP creation or capture within the South, both driven largely by China

Aid flows create the powerful impression that rich countries give benevolently to poorer countries. But the data on drain through unequal exchange raises significant questions about this narrative.

net appropriation by DAC countries through unequal exchange from 1990 to 2015 outstripped their aid disbursements over the same period by a factor of almost 80

for every dollar of aid that donors give, they appropriate resources worth 80 dollars through unequal exchange. From the perspective of aid recipients, for every dollar they receive in aid they lose resources worth 30 dollars through drain

The dominant narrative of international development holds that poor countries are poor because of their own internal failings and are therefore in need of assistance. But the empirical evidence on unequal exchange demonstrates that poor countries are poor in large part because they are exploited within the global economy and are therefore in need of justice. These results indicate that combating the deleterious effects of unequal exchange by making the global economy fairer and more equitable would be much more effective, in terms of development, than charity.

In an equitable world, the resource trade deficit that the North sustains in relation to the South would be financed with a parallel monetary trade deficit. But in reality, the monetary trade deficit is very small, equivalent to only about 1% of global trade revenues, and fluctuates between North and South. In effect, this means that the North achieves its large net appropriation of resources and labour from the South gratis.

The question of sectoral disparities has been moot since the 1980s, however, as industrial production has shifted overwhelmingly to the South. The majority of Southern exports (70%) consist of manufactured goods (data from UNCTAD; see Smith, 2016). Of all the manufactured goods that the USA imports, 60% are produced in developing countries. For Japan it is 70%. We can see this pattern reflected also in the industrial workforce. As of 2010, at least 79% of the world’s industrial workers live in the South (data from the ILO; see Smith, 2016). This shift is due in large part to the rise of global commodity chains, which now constitute 70% of international trade. Between 1995 and 2013, there has been an increase of 157 million jobs related to global commodity chains, and an estimated 116 million of them are concentrated in the South, predominantly in the export manufacturing sector (ILO, 2015). In other words, during the period we analyse in this paper (1990–2015), the South has contributed the majority of the world’s industrial production, including high-technology production such as computers and cars. And yet price inequalities remain entrenched.

if Northern states or firms leverage monopoly power within global commodity chains to depress the prices of imports and increase the prices of final products, their labour “productivity” appears to improve, and that of their counterparts declines, even if the underlying production process remains unchanged. Indeed, empirical evidence indicates that real productivity differences between workers are minimal, and cannot explain wage inequalities (Hunter et al., 1990).

wage inequalities exist not because Southern workers are less productive but because they are more intensively exploited, and often subject to rigid systems of labour control and discipline designed to maximize extraction (Suwandi et al., 2019). Indeed, this is a major reason why Northern firms offshore production to the South in the first place: because labour is cheaper per unit of physical output (Goldman, 2012).

the terminology of “value-added” is a misnomer. In international trade, TiVA does not tell us who adds more value but rather who has more power to command prices. And in the case of global commodity chains, TiVA does not indicate where value is produced but rather where it is captured (Smith, 2016).

our analysis reveals that value in global commodity chains is disproportionately produced by the South, but disproportionately captured by the North (as GDP). Value captured in this manner is misleadingly attributed to Northern economic activities

rich countries are able to maintain price inequalities simply by virtue of being rich. This finding supports longstanding claims by political economists that, all else being equal, price inequalities are an artefact of power. Just as in a national economy wage rates are an artefact of the relative bargaining power of labour vis-à-vis capital, so too in international trade prices are an artefact of the relative bargaining power of national economies and corporate actors vis-à-vis their trading partners and suppliers. Countries that grew rich during the colonial period are now able to leverage their economic dominance to depress the costs of labour and resources extracted from the South. In other words, the North “finances” net appropriation from the South not with money, but rather by maintaining the prices of Southern resources and labour below the global average level.

Patents play a key role here: 97% of all patents are held by corporations in high-income countries (Chang, 2008:141)

In some cases, patents involve forcing people in the South to pay for access to resources they might otherwise have obtained much more affordably, or even for free (Shiva, 2001, Shiva, 2016).

In the World Bank and the IMF, Northern states hold a majority of votes (and the US holds a veto), thus giving them control over key economic policy decisions. In the World Trade Organization (which controls tariffs, subsidies, and patents), bargaining power is determined by market size, enabling high-income nations to set trade rules in their own interests.

ubsidized agricultural exports from the North undermine subsistence economies in the South and contribute to dispossession and unemployment, placing downward pressure on wages. Militarized borders preclude easy migration from South to North, thus preventing wage convergence. Moreover, structural adjustment programs (SAPs) imposed by the World Bank and IMF since the 1980s have cut public sector salaries and employment, rolled back labour rights, curtailed unions, and gutted environmental regulations (Khor, 1995, Petras and Veltmeyer, 2002).

SAPs, bilateral free trade agreements, and the World Trade Organization have forced global South governments to remove tariffs, subsidies and other protections for infant industries. This prevents governments from attempting import substitution, which would improve their export prices and drive Northern prices down. Tax evasion and illicit financial flows out of the South (which total more than $1 trillion per year) drain resources that might otherwise be reinvested domestically, or which governments might otherwise use to build national industries. This problem is compounded by external debt service obligations, which drain government revenue and require obeisance to economic policies dictated by creditors (Hickel, 2017). In addition, structural dependence on foreign investors and access to Northern markets forces Southern governments and firms to compete with one another by cutting wages and resource prices in a race to the bottom.

structural power imbalances in the world economy ensure that labour and resources in the South remain cheap and accessible to international capital, while Northern exports enjoy comparatively higher prices

Cheap labour and raw materials in the global South are not “naturally” cheap, as if their cheapness was written in the stars. They are actively cheapened

the analysis obscures class and geographic inequalities within countries and regions, which are significant when it comes to labour prices as well as resource consumption. The high levels of resource consumption that characterize Northern economies are driven disproportionately by rich individuals and affluent areas, as well as by corporations that control supply chains, and enabled by internal patterns of exploitation and unequal exchange in addition to drain through trade (Harvey, 2005). For example, there are marginalized regions of the United States that serve as an “internal periphery” (Wishart, 2014). It would also be useful to explore the gender dynamics of unequal exchange within countries. These questions cannot be answered with our data, however.

This research confirms that the “advanced economies” of the global North rely on a large net appropriation of resources and labour from the global South, extracted through induced price differentials in international trade. By combining insights from the classical literature on unequal exchange with contemporary insights about global commodity chains and new methods for quantifying the physical scale of embodied resource transfers, we are able to develop a novel approach to estimating the scale and value of resource drain from the global South. Our results show that, when measured in Northern prices, the drain amounted to $10.8 trillion in 2015, and $242 trillion over the period from 1990 to 2015 – a significant windfall for the North, equivalent to a quarter of Northern GDP. Meanwhile, the South’s losses through unequal exchange outstrip their total aid receipts over the period by a factor of 30.

support contemporary demands for reparations for ecological debt, as articulated by environmental justice movements and by the G77

True repair requires permanently ending the unequal distribution of environmental goods and burdens between the global North and global South, restoring damaged ecosystems, and shifting to a regenerative economic system.

It is clear that official development assistance is not a meaningful solution to global poverty and inequality; nor is the claim that global South countries need more economic liberalisation and export-oriented market integration. The core problem is that low- and middle-income countries are integrated into the global economy on fundamentally unequal terms. Rectifying this problem is critical to ensuring that global South countries have the financial, physical and human resources they need to improve social outcomes.

democratize the institutions of global economic governance, such as the World Bank, IMF and WTO, so that global South countries have more control over trade and finance policy.

end the North’s use of unfair subsidies for agricultural exports, and remove structural adjustment conditions on international finance, which would help mitigate downward pressure on wages and resource prices in the South while at the same time enabling Southern countries to build sovereign industrial capacity

a global living wage system, and a global system of environmental regulations, would effectively put a floor on labour and resource prices

Reducing North-South price differentials would in turn reduce the scale of the North’s net resource appropriation from the South (in other words, it would reduce ecologically unequal exchange), thus reducing excess consumption in the North and the ecological impacts that it inflicts on the South.

Structural transformation will only be achieved through political struggle from below, including by the anti-colonial and environmental justice movements that continue to fight against imperialism today

The imperialists certainly made the empire and in particular the white dominions central to politics and economics. In many ways, today’s anti-imperialists have followed them rather naively in this.

For the Conservatives, the white dominions in particular were central. They provided an image of the empire as a brotherhood of free white nations — a very important part of the overall story. But it was also important because the white dominions really were the important bits economically. That was where the investment went, and where a lot of the food for the United Kingdom came from.

India is a different matter. That was a place, of course, with a massive population. It was an important market for exports, but it was in a different league from the white dominions, and both were in a quite different position from what were strictly speaking called the colonies. It is very important to remember that before the 1940s — that is to say, in the great age of empire — trade with foreign countries was greater than with “British” countries, to use the language of the time. Liberals pointed this out again and again. They argued that the great glory of the British economy was not the empire but rather free trade. That meant trading with everybody and in practice trading a very great deal with Europe. That was where British bacon, British eggs, British iron ore, or British timber came from, and much else besides. Before the 1940s, the UK was a profoundly European economy, deeply integrated into trade and production within the European continent.

The UK was the largest overseas investor and the largest trader, but it was also the most industrial country in the world — far more industrialized than Germany or the United States at this time. It was more industrialized precisely because it was more globalized. It didn’t need to grow all its own food. The City was investing overseas in UK-owned enterprises, whose business was often to supply food to the UK, directly or indirectly. That in turn allowed the UK to be industrial and indeed to supply the railways, the factories, and the ships that made all this trade possible in the first place. In fact, the relations between overseas investment and industrialization were synergistic, at least in this period.

it’s striking how little impact decolonization had. Take the cases of India and Palestine in the 1940s: there were no major convulsions at home — nothing compared to what was happening in France during the 1950s.

there was actually a silent revolution brought about by “de-imperialization.” That was best exemplified by the extraordinarily rapid transition of the Conservatives from being the party of empire and Imperial Preference to being the party of free trade and of applying for accession to the Treaty of Rome in 1961. It is extraordinary that, just a few years after World War II, the Tory Party in government applied for membership of what was then called the Common Market.

There was a movement of people from the Caribbean in particular during the 1950s, but they were people coming from a colonial territory who had the same nationality as most people living in the United Kingdom. They were what were called “citizens of the United Kingdom and Colonies,” so they weren’t really immigrants. They were people moving within the space of British nationality. Interestingly, there were more immigrants, in the sense of aliens or semialiens, coming from Ireland and continental Europe in the 1940s and ’50s. Indeed, the dominant movement of population from the 1940s right up into the 1980s was outward rather than inward. The UK was a place of net emigration in that period. A lot of that emigration was to the Commonwealth, and Australia in particular.

It comes as a surprise to many people that in the 1950s, the United Kingdom was still the most industrialized economy on Earth. This doesn’t fit with the “declinist” images that have so affected our understanding of this period in particular. In terms of growth rates, poorer European countries and countries elsewhere were often growing faster than the UK economy — they were catching up. The German economy caught up with the UK and overtook it in terms of GDP per capita in the 1960s, and France did the same in the 1970s. But the overall result was that the West European economies, which had been quite different in 1945 or 1950, came to be very similar by the 1980s and ’90s or the 2000s when one includes poorer countries like Spain.

In the 1970s and ’80s, the UK became broadly speaking self-sufficient in the foods that it could grow itself, much as Germany, France, and Italy were self-sufficient in food. What had been the great factor distinguishing the United Kingdom from continental Europe disappeared as a result of a fundamental change in British political economy. The UK became an exporter of beef and wheat, which would have been unthinkable not just in the Edwardian years but in the 1950s as well.

The reality is that the 1970s saw a global crisis. There were important transitions and readjustments in the British economy. That decade was also a period of political radicalism and cultural inventiveness — a period of innovation, of a sort that conservatives didn’t like one bit. That’s essentially why the 1970s have this terrible reputation.

She did transform the British economy, but it’s important to note that she did not increase the underlying rate of growth. Since 1979, the British economy has grown more slowly on average than it grew between 1945 and the 1970s. In that sense, she most certainly did not reverse the British decline. Nor did she reverse the British decline in relation to all the other major economies in the world

while manufacturing employment did go down very radically, manufacturing output remained high. Indeed, peak manufacturing output in British history came in 2008 — it wasn’t the 1970s, let alone the 1870s

North Sea oil was certainly important because, together with the new self-sufficiency in food, it meant that the UK no longer had to import the two things that had dominated its import bill in the past: food and oil. That meant that the UK no longer needed to have a surplus in the manufacturing balance, which went negative in 1981.

Quite soon, you had a permanent negative balance of trade in the British economy — a quite extraordinary thing. A tiny negative balance of trade was the stuff of politics in the 1950s and ’60s, yet in the more recent past, a permanent deficit of 4, 5, or 6 percent of GDP has no impact whatsoever. What made this deficit sustainable? The emergence of a new kind of City of London. It was not the City of the Edwardian years. It was something quite different, like an enclave, which was about bringing money into the UK as much as taking it out. It was precisely those net flows of capital into the UK that allowed it to sustain the negative balance of trade.

The most important thing Thatcher did, apart from opening up the economy to Europe and the world, was to encourage the increasing inequality between capital and labor and between the regions. There was an extraordinary reversal of the move toward greater equality of income, wealth, and regional development that had been taking place from 1945

The loss of trust in government that arose from the obvious, systematic mendacity of the Blair administration around Iraq had and continues to have profound consequences. It generated a new, deep cynicism in politics

It’s striking that the Conservatives have increased their vote share in every election since 1997. The idea that Boris Johnson suddenly transformed the fortunes of the party is quite wrong. That’s one legacy of Blairism — not just Brexit, but also a new, revived, and dangerous Conservative Party. If Thatcherism begot Blairism, I think Blairism begot “Johnsonism” by a very different process.

The UK has been a place where global capitalism does its business. There’s relatively little we could straightforwardly call British capitalism

there aren’t the sort of connections between business and the Conservative Party that there would have been when they were all the same people. There are, perhaps, connections between particular kinds of business and the Conservative Party — particular hedge funds, for example, or Russian oligarchs. Between them, they’re pushing the Conservatives to be a party that’s pressing for an even greater degree of tax-haven status for the British economy, making it even more of a rentier, liberalized economy than it already is.

We have an extraordinary politics, in which a particular fraction of capital, allied with hard-right elements of the Conservative Party, are pursuing a policy that they don’t really understand and can’t really come to terms with.

We’ve had great programs of political-economic change, from mobilization in World War II to going into the European Economic Community. But those were planned and thought through — there weren’t any great surprises. This one hasn’t been. It hasn’t even really been improvised. It has just been a very peculiar mess.

the politics of the Brexiteers themselves aren’t the politics of Brexit voters. The Brexit vote is an old vote, just like the Conservative vote. One has to credit the Conservatives with realizing that their vote was an old one and doing everything they could to sustain that vote — for example, by keeping NHS spending and pension spending up, systematically targeting welfare at the elderly and taking it away from the young