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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

In chapter 7 of Imperialism, the Highest Stage of Capitalism, Lenin defined the five “basic features” of imperialism: (1) the concentration of production and capital developed to such a high stage that it created monopolies which play a decisive role in economic life; (2) the merging of banking capital with industrial capital, and the creation, on the basis of this “finance capital,” of a financial oligarchy; (3) the export of capital as distinguished from the export of commodities acquires exceptional importance; (4) the formation of international monopolist capitalist associations which share the world among themselves, and (5) the territorial division of the whole world among the biggest capitalist powers is completed.8

Marxist theories of imperialism (or concepts of imperialism inspired by the Marxist tradition) that evolved after the mid–twentieth century typically defined imperialism as a relationship of economic exploitation leading to unequal distribution of wealth and power on a global scale.9

In chapter 8 of Imperialism, Lenin further argued that export of capital was “one of the most essential bases of imperialism” because it allowed the imperialist countries to “live by exploiting the labour of several overseas countries and colonies.” The superprofits exploited from the colonies in turn could be used to buy off the “upper stratum” of the working class who would become the social base of opportunism in the working-class movement: “Imperialism means the partition of the world, and the exploitation of other countries besides China, which means high monopoly profits for a handful of very rich countries, creating the economic possibility of corrupting the upper strata of the proletariat.”14

imperialism must be a system where a small minority of the world population exploits the great majority. It cannot possibly be a system in which the majority exploits the minority.

From 2004 to 2018, China’s total foreign assets increased from $929 billion to $7.32 trillion. During the same period, China’s total foreign liabilities (that is, total foreign investment in China) increased from $693 billion to $5.19 trillion.16 This means China had a net investment position of $2.13 trillion at the end of 2018. That is, China has not only accumulated trillions of dollars of overseas assets but also become a large net creditor in the global capital market. This seems to support the argument that China is now exporting massive amounts of capital and therefore qualifies as an imperialist country.

Rather than “exploiting” the developed capitalist countries, such capital flight in fact transfers resources from China to the core of the capitalist world system.

while foreign investment in China is dominated by direct investment, an investment form consistent with the foreign capitalist attempt to exploit China’s cheap labor and natural resources, reserve assets account for the largest component of China’s overseas assets.

the United States and other developed capitalist countries simply do not have the production capacity to produce within a reasonable period of time the extra goods and services that may correspond to the more than three trillion dollars of foreign exchange reserves held by China

From the U.S. point of view, China’s accumulation of foreign exchange reserves (mostly in dollar-denominated assets) has essentially allowed it to “purchase” trillions of dollars’ worth of Chinese goods largely by printing money without providing any material goods in return. China’s reserve assets, rather than being a part of China’s imperialist wealth, essentially constitute China’s informal tribute to U.S. imperialism by paying for the latter’s “seigniorage privilege.”

An average rate of return of about 3 percent on China’s overseas investment obviously does not constitute “superprofits.” Moreover, foreign capitalists in China are able to make about twice as much profit as Chinese capital can make in the rest of the world on a given amount of investment.

China’s total stock of direct investment abroad in 2017 was $1.81 trillion, including $1.14 trillion invested in Asia (63 percent), $43 billion invested in Africa (2.4 percent), $111 billion invested in Europe (6.1 percent), $387 billion invested in Latin America and the Caribbean (21 percent), $87 billion invested in North America (4.8 percent), and $42 billion invested in Australia and New Zealand (2.3 percent).

China’s massive investments in Hong Kong, Macao, Singapore, Cayman Islands, and British Virgin Islands (altogether $1.41 trillion or 78 percent of China’s direct investment abroad) are obviously not intended to exploit abundant natural resources or labor in these cities or islands.

Much of the Chinese investment in these places may simply have to do with money laundering and capital flight

the structure of China’s overseas assets is very different from the structure of foreign assets in China. Out of China’s total overseas assets in 2018, 43 percent consists of reserve assets, 26 percent is direct investment abroad, 7 percent is portfolio investment abroad, and 24 percent is other investment (currency and deposits, loans, trade credits, and so on). By comparison, out of total foreign investment in China in 2018, 53 percent is foreign direct investment, 21 percent is foreign portfolio investment, and 26 percent is other investment.

about $158 billion (8.7 percent of China’s total stock of direct investment abroad or 2.2 percent of China’s total overseas assets) invested in Africa, Latin America, and the rest of Asia. This part of Chinese investment no doubt exploits the peoples in Asia, Africa, and Latin America of their labor and natural resources. But it is a small fraction of China’s total overseas investment and an almost negligible part of the enormous total wealth that Chinese capitalists have accumulated

Marxist theorists of imperialism already realized that, in the postcolonial era, imperial exploitation of underdeveloped countries mainly took the form of unequal exchange. That is, underdeveloped countries (peripheral capitalist countries) typically export commodities that embody comparatively more labor than the labor embodied in commodities exported by developed capitalist countries (imperialist countries). In the twenty-first century, global outsourcing by transnational corporations based on the massive wage differentials between workers in imperialist and peripheral countries may be seen as a special form of unequal exchange.22

if a country receives substantially more surplus value from the rest of the world than it transfers, then the country clearly qualifies as an imperialist country in the sense of being an exploiter country in the capitalist world system. On the other hand, if a country transfers substantially more surplus value to the imperialist countries than it receives from the transfer of the rest of the world, the country would be either a peripheral or a semi-peripheral member of the capitalist world system (depending on further study of the country’s position relative to other peripheral and semi-peripheral countries).

even if in the unlikely event that China turns out to be extremely successful in its effort to promote electric cars, it would at best replace no more than one-tenth of China’s current oil consumption.

Being a leading imperialist country, the United States benefits from its “seigniorage privilege.” Because of the other countries’ need to hold massive amounts of foreign exchange reserves in the form of dollar-denominated assets, the United States can “purchase” trillions of dollars of goods simply by printing money without providing material goods in return. The labor embodied in the U.S. “trade deficits” therefore should be treated essentially as unilateral transfers from the rest of the world and included in the unequal exchange.

Sources: “World Development Indicators,” World Bank, accessed May 31, 2021. Net labor transfer is defined as the difference between the total labor embodied in a country’s imported goods and services and the total labor embodied in the country’s exported goods and services. If the difference is positive, it constitutes a net labor gain; if negative, it constitutes a net labor loss.

in the neoliberal era, Chinese capitalism has functioned as a crucial pillar for the global capitalist economy by transferring surplus value produced by tens of millions of workers to the imperialist countries. At its peak, China’s net labor loss equaled 48 percent of China’s industrial labor force in 2007

Had there not been unequal exchange, the massive amounts of material goods currently supplied to the United States by the rest of the world would have to be produced through domestic production to maintain existing levels of U.S. material consumption. About sixty million workers (38 percent of the total U.S. labor force) would have to be withdrawn from service sectors and transferred to material production sectors. This would result in a massive reduction of services output (by about two-fifths of U.S. GDP) without raising levels of material consumption.

By 2015–17, while it would still take about five units of Chinese labor to exchange for one unit of U.S. labor and four units of Chinese labor to exchange for one unit of labor from other high-income countries, China had clearly established exploitative positions in South Asia and sub-Saharan Africa. One unit of Chinese labor can now be exchanged for about two units of labor from sub-Saharan Africa or four units of labor from South Asia. One unit of Chinese labor is roughly on a par with one unit of labor from the low- and middle-income countries of Latin America, Caribbean, Middle East, North Africa, Eastern Europe, and Central Asia. In addition, China has also established a significant advantage relative to other East Asian low- and middle-income countries.

The core countries specialize in quasi-monopolistic, high-profit production processes, and the peripheral countries specialize in highly competitive, low-profit production processes. Surplus value is transferred from the peripheral producers to the core producers, resulting in unequal exchange and concentration of world wealth in the core. By comparison, semi-peripheral countries have “a relatively even mix” of core-like and periphery-like production processes.23

From 1870 to 1970, the share of the world population that lived in countries with per capita GDP greater than 75 percent of the imperial standard varied between 10 percent (in 1950) and 17 percent (in 1913). This is a range consistent with the population share of “a handful of exceptionally rich and powerful states” suggested by Lenin.

reasonable to use 75 percent of the imperial standard as the approximate threshold between the core of the capitalist world system and the semi-periphery. It is important to note that this is only an approximate threshold and other important characteristics (such as state strength, degree of political and economic independence, technological sophistication, and so on) also need to be considered when deciding whether a country is a member of the core or simply has a core-like income level. For example, in 1970, among the wealthiest countries were rich oil exporters such as Qatar, Kuwait, United Arab Emirates, and Venezuela that clearly do not qualify as core countries.

From 1870 to 1970, the share of the world population that lived in countries with per capita GDP less than 25 percent of the imperial standard increased from 57 percent to 66 percent, suggesting widening global inequalities. I use 25 percent of the imperial standard as the approximate threshold between the periphery and the semi-periphery.

by 2017, as China’s per capita GDP advanced to 31 percent of the imperial standard, the structure of world income distribution was radically transformed. The share of the population that lived in countries with per capita GDP less than 25 percent of the imperial standard fell to 50 percent (the lowest since 1870). The share of the population that lived in countries with per capita GDP higher than 75 percent of the imperial standard narrowed to 12 percent. At the same time, the share of the population that lived in countries with per capita GDP between 25 and 75 percent of the imperial standard expanded to 38 percent (almost double the historical semi-peripheral share of the world population).

Neither capitalism nor imperialism is compatible with an arrangement where the majority of the world population exploits the minority, or even with a situation where a large minority exploits the rest of the world. Given the size of the Chinese population (almost one-fifth of the world population), if China were to advance into the core, the total core population would have to rise to about one-third of the world population. Can the rest of the world afford to provide sufficient surplus value (in the form of labor embodied in commodities) as well as energy resources to support such a top-heavy capitalist world system?

South Asia has recently overtaken China to become the largest source of net labor transfer in the global capitalist economy. In 2017, South Asia suffered a net labor loss of 65 million worker-years. All the low- and middle-income countries combined provided a total net labor transfer of 184 million worker-years in 2017

Assuming that China’s average labor terms of trade rises from the current level of about 0.5 (one unit of Chinese labor exchanges for about half of a unit of foreign labor) to about 2 (one unit of Chinese labor exchanges for about two units of foreign labor, similar to the current average labor terms of trade of the non-U.S. high-income countries), then the total labor embodied in China’s imported goods and services would have to rise to about 180 million worker-years. Rather than providing a net labor transfer of nearly 50 million worker-years, China will have to extract 90 million worker-years from the rest of the world. The total shift of 140 million worker-years represents about three-quarters of the total surplus value currently received by the core and the upper-level semi-periphery from the rest of the world and is roughly comparable to the total net labor transfer currently provided by all the low- and middle-income countries (excluding China).

to replace China’s current annual car production by electric vehicles would require the consumption of 120,000 metric tons of lithium annually. World total lithium production in 2018 was only 62,000 metric tons. Therefore, even if China uses up the entire world’s lithium production, it would only be sufficient to replace about one-half of China’s conventional car production.27

China was a typical peripheral country in the 1990s. In the early 1990s, China’s labor terms of trade was about 0.05. That is, one unit of foreign labor could be exchanged for about twenty units of Chinese labor. Since then, China’s labor terms of trade has improved dramatically. By 2016–17, China’s labor terms of trade rose to about 0.5. That is, two units of Chinese labor could be exchanged for about one unit of foreign labor. On balance, China remains an economy exploited by the imperialist countries in the capitalist world system, although the degree of exploitation has declined rapidly in recent years.

The world population in 2018 was 7.59 billion. Using the more generous 1.4 trillion metric tons as the global emissions budget for the rest of the twenty-first century, an average person in the future is entitled to an average annual emissions budget of about 2.3 metric tons per person per year (1.4 trillion metric tons / 80 years / 7.6 billion people). By comparison, China’s per capita carbon dioxide emissions in 2018 were 6.77 metric tons and the U.S. per capita carbon dioxide emissions were 15.73 metric tons.

From 1990 to 2013, China’s per capita carbon dioxide emissions surged from 2.05 metric tons to 6.81 metric tons. If this trend were to continue, China’s per capita carbon dioxide emissions would rise to 12.85 metric tons when China’s per capita GDP rises to $37,734 (75 percent of the imperial standard). If every person in the world were to generate this level of emissions every year between now and the end of the century, global cumulative emissions over the last eight decades of this century would amount to 7.8 trillion metric tons, leading to 5.5 degrees Celsius of additional warming (using the approximate calculation that every one trillion tons of carbon dioxide emissions would bring about 0.7 degrees Celsius of additional warming).

China’s current per capita carbon dioxide emissions are substantially above what would be predicted by the cross-country regression given China’s current income level. Using the cross-country regression, if China’s per capita GDP were to rise to $37,734, China’s per capita carbon dioxide emissions should be 8.67 metric tons. If every person in the world were to generate emissions of 8.67 tons every year between now and the end of the century, global cumulative emissions over the last eight decades of this century would amount to 5.3 trillion metric tons, leading to 3.7 degrees Celsius of additional warming. As the global average temperature is already about one degree Celsius higher than the preindustrial level, global warming by the end of the century would be 4.7 degrees Celsius. This will lead to inevitable runaway global warming and reduce the areas suitable for human inhabitation to a small fraction of the earth’s land surface.

In other words, climate stabilization and global ecological sustainability can be accomplished if every country either accepts a massive reduction of per capita income to peripheral levels or stays with the peripheral levels.

The currently available evidence does not support the argument that China has become an imperialist country in the sense that China belongs to the privileged small minority that exploits the great majority of the world population. On the whole, China continues to have an exploited position in the global capitalist division of labor and transfers more surplus value to the core (historical imperialist countries) than it receives from the periphery. However, China’s per capita GDP has risen to levels substantially above the peripheral income levels and, in term of international labor transfer flows, China has established exploitative relations with nearly half of the world population (including Africa, South Asia, and parts of East Asia). Therefore, China is best considered a semi-peripheral country in the capitalist world system.

Given its enormous population, there is no way for China to become a core country without dramatically expanding the population share of the wealthy top layer of the world system. The implied labor extraction (or transfer of surplus value) demanded from the rest of the world would be so large that it is unlikely to be met by the remaining periphery reduced in population size. Moreover, the required energy resources (especially oil) associated with China’s expected core status cannot be realistically satisfied from either future growth of world oil production or conceivable technical change. In the unlikely event that China does advance into the core, the associated greenhouse gas emissions will contribute to rapid exhaustion of the world’s remaining emissions budget, making global warming by less than two degrees Celsius all but impossible.

material values are only for the rich. The poor should get religion, etc. Marx understood the issue

Surprised it is from a City firm, especially one that encouraged its employees to leave the UK to avoid the 50% tax on bankers bonuses in 2009/2010. Now they are calling for more public investment

Blimey! What a terrible shock. Looting the result of consumerism, excessive advertising and a me-me-me society! I wouldn't have been able to work that out for myself. Two and a half cheers for Thatcher's 'There is no such thing as society. There are individuals and there are families.' So, we are now reaping the benefits of the legacy of the Thatcher/Reagan years. But how do we reverse a whole generation's worth of incredible greed, selfishness and vaingloriousness?

The full note isn't about the riots, it's more some ideas for reforming the UK economy. Ideas like investment to create assets rather than creating asset price inflation are valid, the same for the need for widespread public investment in infrastructure and housing.It's all useful for discussion, reflection and analysis but I expect the messenger to get shot to pieces in the comments below.

it has often struck me as ironic that on a planet of presently limited usable resources the measure of individual success is the one who can afford to consume the most. if a group of people were shut in a room with a finite supply of food and a choice of who stayed in the room i imagine that the individuals who were able to consume the least would be the preferred choice of companions.

The overall pattern has been that an over-consuming West has borrowed and spent the surpluses of the increasingly productive and under-consuming East.Increasingly productive East because Western CEO's have shifted production there to take advantage of cheap labour for short term profit.The West took centuries to build its wealth but this wealth has been given away in only a couple of decades by the process of globalisation. So far, the CEO's of big organisations have got away without being blamed for the disastrous globalisation process but I hope if we're going to examine causes of social malaise, that sooner rather than later, we turn the spotlight on their incredibly short term personal 'cashing in' at the expense of us all.

“The harm that [tea] causes is especially visible in the [Tunisian] countryside, where it weakens the race, which is literally intoxicated and morally and physically diminished.”

In 1941, the French doctor Edmond Sergent described in several scientific articles how Tunisians, instead of adding fresh tea leaves to already boiling water, added used leaves to the water as it boiled, creating a harmful, tar-like drink. Sergent also argued that Tunisians’ black tea was more dangerous than Moroccan green tea, which explained why cases of teaism were rare in Morocco, despite Morocco’s tea consumption being much higher.

According to Dinguizli, teaism was an addiction comparable to alcoholism, a form of chronic poisoning with nervous tremors, amnesia, palpitations, blurred vision, serious disturbances of the nervous and circulatory system, a general weakening of the body, and even a marked decrease in birth rates. Later authors delineated additional mental consequences, such as hallucinations, delusions, and even psychoses.

The perceived social consequences of teaism were founded in the belief that tea addicts would do almost anything to satisfy their habit. According to Sergent, the whole salary of many Tunisian workers went “to the buying of tea and sugar.” When their money ran out, Tunisian teaists sold their last possessions, stole from employers, friends, and family, and, in Dinguizli’s words, lost their “usually docile character.”

By the 1940s, a variety of publications had ceased to view teaism as an exclusively Tunisian problem, as diagnoses cropped up elsewhere in the Maghreb, such as, in 1948, the psychiatrist Charles Bardenat offhandedly ascribing an act of conjugal manslaughter committed in Algeria to the overconsumption of coffee and tea.

not a single case of a French settler in Tunisia being diagnosed with teaism can be found in the French publications.

French administrators tried banning illegal coffeehouses, which served tea, and increasing customs duties on tea. There were also calls for posters and educational films on the dangers of tea and how to prepare it correctly, for creating a state monopoly on tea, and even a law restricting tea sales to pharmacies upon presentation of a prescription

Tea neither produced hallucinations nor induced crime, and it did not “corrupt” Tunisians. They simply enjoyed a new drink that French authors objected to.

When tea first reached England in the 17th and 18th centuries, writers described it as un-British, “unmanly,” and altogether dangerous

chocolate, once the drink of choice at rowdy British clubs, inspired similar concern

The French viewed coffee, which was produced in their colonies of Martinique and La Réunion, as the drink of the Enlightenment and reason

The sight of Tunisians sitting and chatting over tea fueled settler prejudices about Tunisians as lazy and immoderate—nearly all descriptions of teaism focused on the economic consequences

feared attacks, revolt, and any sign of the population losing their supposed “docility.”

The irony of teaism is that the only real epidemic was the diagnosis of teaism itself. Today, tea is practically Tunisia’s national drink

war is anti-democratic, anti-progressive, anti-intellectual, and anti-human. Yet, as we know, history makes heroes out of its participants and celebrates mass murderers like Napoleon as “great captains.”

The delusional idea that Americans are, by nature, winners and that our wars are therefore winnable:

American society’s almost complete isolation from war’s deadly effects:

Unnecessary and sweeping secrecy

An unrepresentative government

America’s persistent empathy gap

Wherever we go, there we are, eating our big burgers, driving our big trucks, wielding our big guns, and dropping our very big bombs. But what those bombs do, whom they hurt or kill, whom they displace from their homes and lives, these are things that Americans turn out to care remarkably little about.

even the Pentagon knows that our most serious enemy is climate change, not China or Russia or terror

The U.S. military is also a major consumer of fossil fuels and therefore a significant driver of climate change. Meanwhile, the Pentagon, like any enormously powerful system, only wants to grow more so, but what’s welfare for the military brass isn’t wellness for the planet.

Spaceship Earth should not be allowed to remain Warship Earth as well, not when the existence of significant parts of humanity is already becoming ever more precarious. Think of us as suffering from a coolant leak, causing cabin temperatures to rise even as food and other resources dwindle. Under the circumstances, what’s the best strategy for survival: killing each other while ignoring the leak or banding together to fix an increasingly compromised ship?

Every war makes us less human as well as less humane. Every war wastes resources when these are increasingly at a premium. Every war is a distraction from higher needs and a better life.

war is a bloody, murderous mess and those practitioners, when not killed or wounded, are marred for life because war functionally makes everyone involved into a murderer

We need to stop idealizing war and idolizing its so-called warriors

The formal justification for the raid was based on a decree issued on Sept. 3, 2019. It authorizes the government to assume control of local plants and seeds and to regulate their production and sales.

Turkey’s first lady Emine Erdogan, a passionate advocate of herbal and organic food products, introduced the so-called “Ata Tohum” or “Ancestral Seed” project that envisages “agriculture as the key to our national sovereignty.” The scheme is aimed at collecting and storing genetically unmodified seeds from local farmers and to reproduce and plant them so as to grow “fully indigenous” aliments.

Ata Tohum is thought to be the brainchild of Ibrahim Adnan Saracoglu, an Austrian-trained biochemist.  He is among Erdogan’s ever expanding legion of advisers. The 71-year old has written academic tracts about how broccoli consumption can prevent prostatitis. He was with the first lady at the Sept. 5 Ata Tohum event.

The professor railed against assorted Westerners who had plundered Anatolia’s botanical wealth and carried it back home.

“the archaeology seeds are essentially charcoal, dead and inert.” As for the modern reference collection “we are talking about stuff that was collected 25 to 50 years ago and is not going to be able to germinate.”

a “classic nationalist move to dig deeper and deeper into the past for justification of the [nationalist] policies that you are currently putting in place.”

parallels with the founder of modern Turkey, Kemal Ataturk, who “connected Turkish civilization back to the Phrygians and the Hittites” as part of his nation-building project.

“You have these genetic ties to the land through these seeds as proof that our civilization belongs here and has been here since time immemorial. To want to have these [seeds] in the first place is part of the nationalist framework.”

The ultimate fate of the British Institute’s seeds remains a mystery. It’s just as unclear what practical purpose they will serve.

“Seeds” he intoned, “are the foundation of our national security.”

“But in order to get genomic information you only need one or two grains, not the whole collection. What [Turkish authorities] have done is they’ve removed this research resource from the wider Turkish and international community of researchers. It was a nice, small research facility, open to anyone who wanted to use it. Now it’s all gone,”