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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

Anti-Black racism has only increased in Algeria with the arrival of tens of thousands of sub-Saharan Black, largely clandestine, migrants over the last two decades, who enter Algeria for educational or economic opportunities, or more often, to travel through the country en route to Europe.

20-25% of Algerians are native Amazigh speakers (Tamazight), and many more are Arabized Amazighs. The indigenous Amazighs have been struggling for equality since independence against a state determined to impose an Arab Muslim identity on the country’s entire population

Amazigh activists have challenged the state’s assertion of Arab-Muslim homogeneity. Amazigh activism, in the form of mass protests and the undertakings of Amazigh-dominated political parties and civil society organizations, has pressured the state to constitutionally accept Amazigh identity as one of the components of Algerian identity, integrate the Amazigh language in secondary education, and recognize the Amazigh language as a national and later an official language of the state, in addition to Arabic

Black people, who were present in southern Algeria even before the 13- century-long  trans-Saharan slave trade, can be considered to be as indigenous to Algeria as the Amazigh population.

following a regional trend to repress diversity issues, the Algerian government has never taken a census to ascertain the total number of Algerian black citizens in the country, most of whom remain concentrated in the Saharan south. Ninety-one percent of the Algerian population lives along the Mediterranean coast on 12% of the country's total land mass.

Because most black Algerians are scattered in the vast southern Sahara, an area of the country about which many Algerians are not familiar, white Algerians may be only dimly aware, if aware at all, that they have black compatriots.25Ouzani, op.cit. Certainly, many black Algerians have reported that they face incredulity when claiming their national identity in northern Algeria at police roadblocks, airports, and even in doing everyday ordinary things like responding to a request for the time, “When I walk in the street and someone wants to ask me the time, he does it in French, convinced that he is dealing with a Nigerien or a Chadian, a way of indicating that an Algerian cannot be black.”

When Algerians think of “racial” discrimination, it is likely that they first think of the treatment Algerian Arabs and Amazighs received at the hands of the French during the colonial period (1830-1962), and afterwards in France.27Kamel Daoud, “Black in Algeria? Then You’d Better be Muslim” The New York Times, May 2016. https://www.nytimes.com/2016/05/03/opinion/kamel-daoud-black-in-algeria-then-youd-better-be-muslim.html . See also Seloua Luste Boulbina, “Si tu desires te Moquer du Noir: Habille-le en rouge”, Middle East Eye, 24 November 2018. https://www.middleeasteye.net/fr/opinion-fr/si-tu-desires-te-moquer-du-noir-habille-le-en-rouge-0 The debate over Algeria as a post-colonial society has been fully engaged. However, in another sign of the invisibility of Algeria’s black citizens, consideration of Algeria as a post-slave society – and what that means for black Algerians today – has not

elites were also leaders of Third Worldism, and officially believed in pan-Africanism. Ahmed Ben Bella, Algeria’s first post-independence president, declared in Accra, Ghana, in 1963: “It was the imperialists who tried to distinguish between the so-called white and black Africans.”

in Saharan areas, the slave trade continued throughout the period of French settler colonialism (1830-1962)

Arab-Berber whites constructed an economy that relied on black slave labour from their Haratins (enslaved or recently freed Islamicized and Arabized Blacks, who are still susceptible to forced labour practices).31These ambiguously freed black slaves in Saharan areas of Algeria are also called Bella or Ikelan if they were enslaved by Amazighs, including Tuaregs. Today Haratins, mostly sharecroppers, work under harsh labour conditions that some have described as a modern form of slavery, they “dig and tend wells, excavate and maintain the underground channels of foggara, irrigate gardens, tend to flocks, and cultivate dates”.32Benjamine Claude Brower, “Rethinking Abolition in Algeria,” Cahier D’etudes Africaines 49, 2009 Some argue that without the labour of enslaved Black people, the Sahara would never have been habitable at all.33Ibid. The arduous and relentless work to irrigate in a desert includes digging channels tens of feet into the sand with the risk of being drowned under it.

The French accommodated slavery in the Algerian Sahara more than anywhere else. Slave masters and merchants were given permission to trade in slaves and keep those they owned well into the twentieth century.35Ibid. In exchange, slavers and merchants provided intelligence on far-off regions to colonial authorities

there is reason to believe that enslaved black people continue to be exploited for agricultural work in the southern oases of Ouargla and Ghardaia provinces to this day (among wealthy families, owners of large palm trees, fields, and farms) and in some instances among semi-nomadic Tuareg

The Algerian state has never adopted any policies, including any affirmative action policies, to help their black community emerge from the impact of generations of servitude and brutalization.40Brower, op.cit. Instead, it has sought to legitimize the country’s white Arab-Muslim identity only

descendants of freed Black slaves (Haratins) in Saharan regions of Algeria often remain dependent upon former “masters.” Most work as sharecroppers in conditions similar to slavery

Black Algerians also face discrimination in urban areas of the country. They encounter the same racist attitudes and racial insults as any other person with dark skin within Algerian borders.

Either by their colour, k’hal, which is twisted into kahlouche (blackie), mer ouba (charcoal), guerba kahla (a black gourd to hold water made out of goatskin), nigro batata (big nose that resembles a potato), haba zeitouna (black olive), babay (nigger), akli (Black slave in some Berber areas), rougi  (redhead or Swedish to imply that the black person is culturally and socially white, as everyone must want to be), saligani (from Senegal) 46Khiat, op.cit., Calling black Algerians Saligani (from Senegal) has a different history. It refers back to the early decades of the 20th century when the French utilized black West-African soldiers in their colonial army to do the dirty work of colonialization, including brutalizing members of the population that resisted French rule, taking food from farmers, and rape. or by direct references to past servile status: hartani (dark black slave or ex-slave forced to work outside the master’s house), khadim (servant), ouacif (domestic slave), ‘abd (slave), ‘abd m’cana (stinky black slave).47Ibid. Using these terms against a black Algerian passerby establishes difference, contempt, strangeness, rejection, distance, and exclusion

In addition to racial insults, a black Algerian academic has noted, “Our community continues to symbolize bad luck. Worse: in the stories of grandmothers, we play the bad roles, kidnappers of children, looters, or vagrants. [While Arabs and Berbers can both point to a proclaimed noble history in Algeria] there is no place for a black hero in the collective memory of my people.”

In addition to rejection of interracial marriages, an Algerian intellectual has reported cases of “white” Algerians refusing to room with Blacks or study with them at university

A step forward in reducing Negrophobia, the selection of Khadija Benhamou, a black woman from the Algerian Sahara, as Miss Algeria in 2019 has been marred by the subsequent deluge of posts on social media virulently claiming that she did not represent the beauty of the country, with many direct attacks against the colour of her skin.

Partly due to pressure on Algeria to control its borders from the European Union, Black sub-Saharan African migrants have been vilified by the Algerian government and some of the press;59https://insidearabia.com/algeria-desert-deportations-eu-migration/ accused – usually falsely – of violence, selling drugs, promiscuity, spreading venereal diseases, perpetuating anarchy, and raping Algerian women.

Without irony, some graffiti and social media posts called on the migrants to “Go back to Africa.”

Three generations after independence, the Algerian state is still resisting the open public debate and civil society engagement needed to reflect the country’s pluralism and to begin to reckon with slave legacies and racial discrimination

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.

Nature would serve as the canvas, the prize, and the victim of colonialist dreams

Nature narrates the colonial story, through its vast mines, its desecrated rivers, and emaciated territories

Colonies were arranged to maximize and facilitate extraction. Profit was the compass. French colonial planners divided ‘useful Africa’ from ‘useless Africa’ (8). Lands were surveyed, zoned, parcelled, and mapped. All these endeavours relied on a narrative of emptiness, of nothingness.

vacant fields, lands of nobody, terra nullius

The fiction of negation, and discovery, was used to justify the clearance of native habitats and inhabitants

In 1905, communities living in the German-controlled Tanganyika (now part of Tanzania) revolted against policy forcing them to grow cotton for export. In response, as historian John Reader recalls: ‘three columns advanced through the region, pursuing a scorched earth policy – creating famine. People were forced from their homes, villages were burned to the ground; food crops that could not be taken way or given to loyal groups were destroyed’ (11). Around 300,000 people would perish.

Communal water management techniques were replaced with enormous works of engineering and state regulation

Traditional pastoralist practices were framed as outdated, damaging and ineffective. French July Monarchy propagandists used Arab desertification of Algerian land as a justification for conquest: once in control, France would restore ecological order and change the climate

Perhaps the most destructive agrarian practice involved sugar

In the Americas, millions of hectares were stripped of forest life and burned to allow for massive cane plantations, accelerating soil erosion. In the West Indies and Guyana, rainforests were demolished to make way for sugarcane cultivation. Haiti, whose name means ‘green island’ in Arawak, was stripped of trees

The logic of sugar’s monoculture was applied to a variety of commodities. The peripheries of the Amazon were cleared for coffee plantations. Using forced labour, Southeast Asia, southern Colombia and the Congo were deforested and converted into rubber plantations. Burma and Thailand saw their forests turned to mass ricefields, while Indian ecosystems were felled to make way cotton plantations.

soils were exhausted and made sterile, degraded by deforestation and monoculture

As historian Corey Ross recalls: ‘One of the recurring themes in the history of plantations is the perennial cycle of boom and bust. Whether the crop is sugar, tobacco, or cotton, the basic pattern is often the same: an initial frenzy of clearing and planting is followed by either a precipitous collapse of production or a gradual process of creeping decline before eventually ending in soil exhaustion, abandonment, and relocation elsewhere’

Since there was always more land to conquer and acquire, sustainability was irrelevant. The model was simple: exhaust the land, abandon it and clear new land

From territory to territory, life was swept away. Entire animal species were decimated through overhunting. The demand from European elites for fine furs drove hunters and trappers into Siberia and the Americas, carving open new frontiers. John Astor, founder of the American Fur Company, became the first multimillionaire in US history (21). Fishing fleets scoured the seas, slaughtering shoals. In less than 30 years, sea cows were harpooned into oblivion across the Bering Strait (22). Quaggas, thylacines, great auks, passenger pigeons, warrahs and hundreds of other species disappeared within decades. Industrial whaling, driven by demand for blubber, culled whales to the edge of extinction, removing all bowhead whales from the Beaufort Sea

The eradication and exploitation of nature was conjoined with the eradication and exploitation of peoples

In the colonial realm, nature and those deemed inferior enough to be part of it, had to be removed or put to work

To have two Lord Chancellors in Britain in the 20th century bearing the name of a slave-owner from British Guyana, who went penniless to British Guyana, came back a very wealthy man and contributed to the formation of this political dynasty

The database is available from Wednesday at: ucl.ac.uk/lbs.

Slavery on an industrial scale was a major source of the wealth of the British empire, being the exploitation upon which the West Indies sugar trade and cotton crop in North America was based. Those who made money from it were not only the slave-owners, but also the investors in those who transported Africans to enslavement. In the century to 1810, British ships carried about three million to a life of forced labour.Campaigning against slavery began in the late 18th century as revulsion against the trade spread. This led, first, to the abolition of the trade in slaves, which came into law in 1808, and then, some 26 years later, to the Act of Parliament that would emancipate slaves. This legislation made provision for the staggering levels of compensation for slave-owners, but gave the former slaves not a penny in reparation.

in 1838, 700,000 slaves in the West Indies, 40,000 in South Africa and 20,000 in Mauritius were finally liberated

Companies aren't hiring because there's no demand. There's no demand because companies aren't hiring. So much for the magic of the marketplace. Corporations are hoarding so much cash - cash that could drive recovery if it were invested in expanded and new lines of business - that even banks don't want it anymore. Bank of New York Mellon Corp. took the extraordinary step of charging a fee on deposits of amounts over $50m. "Since the beginning of the year, US bank holdings of cash are up 83 per cent, or $890bn, to $1.98tn," reports The Wall Street Journal. Banks have more money than they know what to do with. "Consumer loans, by contrast, have grown 0.2 per cent, or $1.7bn."

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.

Some historians have been particularly distrustful of the Foreign Office since 2013, when the Guardian disclosed that the department had been unlawfully hoarding 1.2m historical files at a high-security compound near Milton Keynes in Buckinghamshire. The hoard came to light during high court proceedings brought by a group of elderly Kenyans who were detained and abused during the Mau Mau insurgency in 1950s Kenya, when the Foreign Office admitted it had withheld thousands of colonial-era files.

The late historian David J Weber and other Borderlands scholars have shown the relative weakness of the Spanish compared with the Indigenous people of the southwest. In 1680, for example, after a century of missions, settlement and violence, the Pueblo drove thousands of settlers out of the province of Santa Fe de Nuevo México and killed hundreds more. These were peoples who had lived in their lands for centuries, even after the arrival of Europeans in the Western hemisphere, and only in the 19th century did ‘Mexico’ and ‘the United States’ take shape around them.

a crucial piece of research infrastructure for early American history, as well as the related histories of South America, Africa and the Caribbean

there are also new ways to see subjects and people that had always been understood as inherently Atlantic, particularly the slave trade, slavery and enslaved people. Scholars engaging these vitally important subjects involving violence inflicted on millions of people have innovated both new methods and new resources. The Trans-Atlantic Slave Trade Database, for example, began to be shared with libraries and scholars all over the world in the late 1990s as a CD-ROM. Now Slave Voyages, a website containing information from that database, holds information on more than 36,000 individual slaving expeditions conducted between the early 1500s and the mid-1800s, as well as in addition thousands of trips in the intra-American slave trade.

The persistence of Indian power from the vantage of Indian country has now captured the attention of a new generation of historians. This is a change from scholarship looking to understand how colonial officials and settlers had wrested control of North American spaces – or perhaps shared control

Research is also showing just how deeply embedded slavery was in early New England. Households from Puritan Boston to Connecticut River Valley towns to the Patriot strongholds enslaved African-descended people. The Atlantic slave trade was massive in scale: many millions of African-descended people were enslaved, and so many people were directly involved in the trade as buyers and sellers of human beings that it is hard to overstate the extent to which slavery pervaded the political economy of early America. What people ate, what they wore, where they lived and how they worked were, in most cases, all touched by the effects of the slave trade and the labour of enslaved people.

The slave trade reshaped Native warfare and captive-taking, such that Native Americans were enslaved and traded away out of North America, just as Africans were brought on to the continent. In the aftermath of King Philip’s war, for example, hundreds of Native Americans who surrendered to the English colonists were sold to the Caribbean as slaves. In the upper Midwest and French Canada in the same period, Native warfare ended up providing captives to the Europeans eager to buy, trade and sell Native people into slavery. In short, the enslavement of Native Americans was responding to the plantation economy fuelled by the enslavement of Africans.

how were Native Americans counted in that first census? It’s hard to say. Some of the regions where the census was incomplete were places with more Native people. Some argued that the sovereignty of Native Americans placed them outside the census. And in places where we know there were Native Americans, such as New England, where a rhetoric as well as a policy of erasing their existence was well underway, they might have been counted in the category of ‘other free persons’ or in some cases, ‘slaves’.

Historians do not typically think of their research in this way; our research reveals the world as it was, before we knew what it would become. Perhaps this also means that historians often seem to be working at odds to the needs of the nation. Certainly in the US, research historians have been delivering a very different picture of the American past than official commemoration, monuments and the appetite for popular history suggest that the American public wants. What is on the shelves or bestseller lists is decidedly not what scholars are producing, and the longstanding claim is that this divergence is indicative of a public desire for patriotic and straightforward history. But is it? The success of the 1619 Project, even if measured solely in sales and readership, suggests otherwise. And still the most shocking feature of this project is neither the assertion that slavery and race are central, even foundational, to American history, nor the reaction to decentring liberty, but that this would be controversial at all, given the weight of decades of historical research documenting it.

In addition to being good history from a historian’s vantage, based on fresh research, new methods and new perspectives, that deeper, richer, fuller past is better suited to explaining our complex present

an ongoing series on slavery across the Indian Ocean (#IndianOceanSlavery). The articles will have most of their starting points in South Africa, which was one of the epicentres of the Indian Ocean slave trade, with the country importing slaves as part of its colonisation process.

Like de Tocqueville before him, and even like Israel’s former prime minister, the Ukrainian-born Golda Meir (née Mabovitch), who was unable to sleep worrying about how many Palestinian children were being conceived or born every night, Borrell’s main worry is about the inhabitants of the jungle invading the garden.

Borrell used the Malthusian language of population control when he expressed his concern to Mogherini that "the jungle has a strong growth capacity, and the wall will never be high enough in order to protect the garden".

Borrell’s imperialist and racist metaphor was spewed as part of his opening remarks at the European Diplomatic Academy in Bruges last week and were addressed to the Italian Islam expert and former communist Federica Mogherini, rector of the College of Europe.

What is most bewildering about Borrell’s speech is not its ignorance of colonialism and neocolonialism, of which he is evidently aware, but that he thinks they only affect the “jungle” but not the “garden”.

"There is a big difference between Europe and the rest of the world – well, the rest of the world, understand me what I mean, no? - is that we have strong institutions. The big difference between developed and not developed is not the economy, it is institutions.”

It seems that Europe’s own colonial and neocolonial institutions are not what made it possible to build the European "garden" - with the labour of immigrants from the “rest of the world” and with the stolen wealth of the "rest of the world". Rather, according to Borrell and the rest of Europe’s white supremacists, with the fantasised ingenuity of Europeans themselves.

It is colonialism and slavery that built the European "garden" - from Portugal to France, to Belgium and the Netherlands - and not Europeans’ ingenuity or goodwill. Borrell’s worry about a potential new European neocolonialism is nothing short of a smokescreen to cover up Europe’s ongoing and actual neocolonialism in Asia and Africa.

De Tocqueville, who was so enamoured of the US republic of slavery, which he dubbed a "democracy", wrote that white Americans have much "national vanity": "The Americans, in their intercourse with strangers, appear impatient of the smallest censure and insatiable of praise... They unceasingly harass you to extort praise, and if you resist their entreaties they fall to praising themselves. It would seem as if, doubting their own merit, they wished to have it constantly exhibited before their eyes. Their vanity is not only greedy, but restless and jealous." Europeans clearly suffer from a similar ailment. Borrell volunteers that: “The world needs Europe. My experience of travelling around the world is that people look at us as a beacon. Why [do] so many people come to Europe? Are there flows of illegal or irregular migrants going to Russia? Not many. No, they are coming to Europe but for good reasons." 

Those Asians and Africans who flock to Europe, and are able to jump over its high walls, are following their stolen wealth to be able to live.

“We are not a young people with an innocent record and a scanty inheritance... We have engrossed to ourselves an altogether disproportionate share of the wealth and traffic of the world. We have got all we want in territory, and our claim to be left in the unmolested enjoyment of vast and splendid possessions, mainly acquired by violence, largely maintained by force, often seems less reasonable to others than to us."

Borrell’s final clarion call to young Europeans that they must “keep the garden, be good gardeners. But your duty will not be to take care of the garden itself but [of] the jungle outside", is indeed nothing short of another directive for them to be better racists and colonialists. This is hardly a new call. Plus ça change!

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.

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