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data from Global Forest Watch shows that Brazil, DRC and Indonesia were among the top five countries for primary forest loss in 2021, with 11.1m hectares of tree cover lost in the tropics overall last year.

Beijing’s opposition to U.S. coalition building and expansion of military cooperation with Indo-Pacific countries. Overall, Beijing’s instinct is to understand the Ukraine crisis largely through the lens of its confrontation with Washington.

Beijing will want to ensure its position is not overly exposed to Western criticism and to safeguard its moral standing in the eyes of developing countries

Khan returned home with little to show from the trip, the first by a Pakistani prime minister in over two decades. He signed no agreements or memoranda of understanding with his Russian counterpart. Widening Western sanctions on Russia have also sunk Pakistani hopes of energy cooperation with Moscow, casting particular doubt on the fate of a proposed multi-billion-dollar gas pipeline project.

“military-technical cooperation”, which has resulted in more than 60 per cent of India’s arms and defence systems being of Russian origin

India also depends on Russia to counterbalance China, which has become its primary security and foreign policy concern, especially given its unresolved border tensions with Beijing. With Pakistan, India’s main rival, already close to China and cosying up to Russia, India’s worst fear is that China, Pakistan and Russia will come together

Relations with Washington are already strained largely because of Islamabad’s seemingly unconditional support for the Afghan Taliban. To give his government diplomatic space, Khan has sought to forge closer ties with Moscow. Those efforts could not have come at a less opportune time.

When Russia invaded Ukraine, India immediately came under the spotlight as at once a consequential friend of Moscow and a country traditionally keen to portray itself as the world’s largest democracy and a champion of peace. The U.S. and European countries pressured India not to side with Moscow and the Ukrainian ambassador in New Delhi pleaded for India to halt its political support for Russia. Yet under Prime Minister Narendra Modi, India has responded to the invasion with the blunt realism of a rising, aspirational power that does not want to get caught between Russia and what Modi calls the “NATO group”. India chose the well-trodden non-alignment path and hid behind diplomatic language with a not-so-subtle tilt toward Russia.

concerned that the fallout from the war could lead Putin to increase arms sales to anti-Western proxies along its borders, chiefly Syria and Hizbollah in Lebanon, or step up electronic measures to disrupt NATO operations in the Mediterranean Sea, affecting Israel’s own navigation systems. Thus far, Russia has assured Israel that it will continue coordination on Syria, though reiterating that it does not recognise Israeli sovereignty in the Golan Heights, which Israel occupied in 1967 and later annexed

The Gulf Arab countries have so far adopted an ambiguous position on the Russian aggression in Ukraine. As close U.S. partners that also have increasing ties to Russia, they sit between a rock and a hard place, unwilling to openly antagonise either side. They have landed in this conundrum because of what they perceive as a growing U.S. withdrawal from the Middle East. In response, they embarked on an effort to diversify their security relations, moving away from sole reliance on Washington. Russia is one of these new partners.

No Gulf power wants to give the impression of siding with the Kremlin, for fear of aggravating the U.S. – their primary security guarantor. But as international support for Ukraine and anger at those seen to support (or at least not publicly oppose) Russia grows, the damage may already have been done: the U.S. and its European allies were appalled at the Gulf states’ reticence to get in line with immediate condemnations of the Russian invasion

despite Iran’s own experience of losing large swaths of territory to Czarist Russia in the nineteenth century and facing Soviet occupation during and immediately after World War II, the Islamic Republic today can claim few major allies beyond Russia. Tehran sees few upsides in breaking ranks with Moscow. In comparison to the possible results of provoking the Kremlin with anything less than fulsome support, the diplomatic opprobrium it may receive from the U.S. and Europe is of little consequence.

Israel has substantive relations with both Russia and Ukraine: Israeli Prime Minister Naftali Bennett has spoken to both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy since the war began, and has offered to act as mediator; Israel sees itself as, in effect, sharing a border with Russia to its north east in Syria, relying on Putin’s continued tacit approval of its airstrikes on Iranian targets there; large Jewish and Israeli populations reside in both Russia and Ukraine and over 1.5 million Russian and Ukrainian expatriates live in Israel; and Israel is a major U.S. ally and beneficiary that identifies with the Western “liberal democratic order”.

Israel has offered humanitarian aid to Ukraine but has refused to sell it arms or provide it with military assistance.

African leaders and elites generally oppose sanctions, seeing them as blunt tools that tend to punish the general population more than national leaders. In the meantime, African officials are concerned that the war will have a deleterious impact on the continent’s economies and food security, both by driving up energy prices and by restricting grain supplies from Russia and Ukraine (a particular concern after a period of poor rainfall and weak harvests in parts of the continent). These shocks are liable to be severe in African countries that are still only beginning to recover from the downturn prompted by COVID-19, although oil producers such as Nigeria, Congo and Equatorial Guinea may benefit from a hike in energy prices.

President Zelenskyy is the only elected Jewish head of state outside Israel. He lost family in the Holocaust. As such, Israel’s silence on Putin’s antisemitic rhetoric, such as his claim to be “denazifying” Ukraine with the invasion, is noteworthy. That said, Israel has some track record – vis-à-vis Hungary and Poland, for example – of placing what its leaders view as national security or foreign relations concerns above taking a strong stand against antisemitism.

In contrast to Russia, with which Pakistan’s commerce is miniscule, the U.S. and EU states are its main trading partners. The war in Ukraine could further undermine Pakistan’s economy. The rise in global fuel prices is already fuelling record-high inflation and putting food security at risk, since before the invasion Ukraine provided Pakistan with more than 39 per cent of its wheat imports. With a trade deficit estimated by one analyst at around $40 billion, Islamabad’s reliance on external sources of funding will inevitably grow. A Russia under heavy sanctions will be in no position to assist. In such a scenario, Pakistan’s powerful military, which Khan depends on for his own political survival, could question his foreign posture.

Since 2014, Turkish defence companies have been increasingly engaged in Ukraine, and in 2019 they sold the country drones that Ukrainians see as significant in slowing the Russian advance.

On 27 February, Ankara announced that it would block warships from Russia and other littoral states from entering the Black Sea via the Bosporus and Dardanelles Straits as long as the war continues, in line with the Montreux Convention (though Russian vessels normally based in Black Sea ports are exempt from the restriction, under the convention’s terms). But it also requested other states, implicitly including NATO members, to avoid sending their ships through the straits, in an apparent effort to limit the risks of escalation and maintain a balanced approach to the conflict.

Some fear, for instance, that Russia and its Syrian regime ally will ratchet up pressure on Idlib, the rebel-held enclave in Syria’s north west, forcing large numbers of refugees into Turkey, from where they might try to proceed to Europe. This worry persists though it is unclear that Russia would want to heat up the Syrian front while facing resilient Ukrainian resistance.

A prolonged war will only exacerbate Turkey’s security and economic concerns, and if Russia consolidates control of Ukraine’s coastline, it will also deal a significant blow to Turkey in terms of the naval balance of power in the Black Sea. It is likely that Turkey will draw closer to NATO as a result of this war, and less likely that Turkey will buy a second batch of S-400 surface-to-air missiles from Russia

Kenya, currently a non-permanent member of the UN Security Council, has taken a more strident stance in opposition to Russia’s invasion than most non-NATO members of the Council. This position springs in part from the country’s history. Nairobi was one of the strongest supporters of a founding principle of the Organisation of African Unity (OAU) prescribing respect for territorial integrity and the inviolability of member states’ colonial-era borders.

As in many African countries, a deep current of public opinion is critical of Western behaviour in the post-Cold War era, emphasising the disastrous interventions in Iraq and Libya, as well as the double standards that many Kenyans perceive in Washington’s democracy promotion on the continent.

What Nairobi saw as Washington’s endorsement of the 2013 coup in Egypt particularly rankled Kenyan authorities, who took an especially vocal public position against that putsch

Kenya will also push for the strengthening of multilateralism in Africa to confront what many expect to be difficult days ahead in the international arena. “We are entering an age of global disorder”, Peter Kagwanja, a political scientist and adviser to successive Kenyan presidents, told Crisis Group. “The African Union must band together or we will all hang separately”.

longstanding solidarity between South Africa and Russia. In the Soviet era, Moscow offered South Africans support in the anti-apartheid struggle and actively backed liberation movements across southern Africa.

Although just over half of African states backed the UN General Assembly resolution on Ukraine, many governments in the region have responded to the war with caution. Few have voiced open support for Russia, with the exception of Eritrea. But many have avoided taking strong public positions on the crisis, and some have explicitly declared themselves neutral.

Ghana, which joined the UN Security Council in January, has consistently backed the government in Kyiv. The West African bloc, the Economic Community of West African States (ECOWAS), released a statement condemning Russia’s actions. Nonetheless, not all ECOWAS members voted for the General Assembly resolution. Mali, which has drawn closer to Russia as France pulled its military forces out of the country, abstained. Burkina Faso did not vote, perhaps reflecting the fact that Russia watered down a Security Council statement condemning the January coup in Ouagadougou.

Russia has many friends in Africa due in part to the Soviet Union’s support for liberation movements during the anti-colonial and anti-apartheid struggles. Many also appreciated Moscow’s strident opposition to the more recent disastrous Western interventions in Iraq and Libya. Furthermore, a number of African leaders studied in the Soviet Union or Eastern Bloc countries and Moscow has done a good job of maintaining these ties over the years. Numerous African security figures also received their training in Russia.

The Ukraine conflict is a major problem for Turkey. It threatens not only to damage Ankara’s relations with Moscow, but also to hurt the Turkish economy, pushing up energy costs and stopping Russian and Ukrainian tourists from visiting Turkey. Some analysts estimate that a decline in tourism could mean up to $6 billion in lost revenue.

Since the invasion began, Bolsonaro’s affinities with Moscow have exposed the divisions within his hard-right government. From the outset, Brazil’s foreign ministry has vowed to maintain a position of neutrality, urging a diplomatic solution. But a day after the invasion, Hamilton Mourão, the vice president and a retired army general, said “there must be a real use of force to support Ukraine”, arguing that “if the Western countries let Ukraine fall, then it will be Bulgaria, then the Baltic states and so on”, drawing an analogy to the conquests of Nazi Germany. Hours later, Bolsonaro said only he could speak about the crisis, declaring that Mourão had no authority to comment on the issue.

Calls for neutrality nevertheless enjoy traction in Brazil. Within the government, there is concern that Western sanctions against Moscow will harm the economy, in particular its agricultural sector, which relies heavily on imports of Russian-made fertilisers. Brazil’s soya production, one of the country’s main sources of income, would suffer considerably from a sanctioned Russia.

Mexico depends on the U.S for its natural gas supply, and the prospect of rising prices is spurring the government to consider other means of generating electricity

Relations between Russia and Venezuela flourished under the late president, Hugo Chávez, who set the relationship with Washington on an antagonistic course. Under Maduro, Venezuela’s links to Russia have intensified, especially through the provision of technical military assistance as well as diplomatic backing from Moscow after Maduro faced a major challenge from the U.S.-linked opposition in early 2019.

Forest loss and species extinctions have only increased as industrial agriculture has scaled up in Brazil. Farmers are burning unprecedented amounts of forest to expand their operations in pursuit of an industrial model. In August 2019, smoke blocked the sun in São Paulo, Brazil, 2,000 miles away from the fires in the state of Amazonas.

As agriculture has industrialized in India, the use of pesticides and fertilizers has risen as well. Although it has become more difficult to breathe the air in Brazil, it has become harder to find clean freshwater in India, where pesticide contamination is rising. There, the costs of the industrial agriculture model are plainly ecological and human: Unable to drink the water or pay back the loans they took out to finance their transition to industrial farming, an alarming number of Indian farmers are drinking pesticides instead. Almost a quarter-million Indian farmers have died by suicide since 2000, and 10,281 farmers and farm laborers killed themselves in 2019 alone.

we are peering into an abyss of systemic socioecological collapse because every effort has been made to use industrialization to break through all known ecological and human limitations to scaling agriculture.

nutrient runoff from industrial agriculture in the U.S. Midwest has created an annual dead zone—a hypoxic area low in or devoid of oxygen—that is the size of Massachusetts

Rural communities are experiencing rising suicide rates, especially among young people, along with increases in “deaths of despair” from alcohol and drugs—an expanding human dead zone

Industrialized agriculture has been a hallmark of U.S. foreign policy in the post-World War II era. Under the guise of development for all and the mantra of “feed the world,” the United States has used policy to dump surplus grain in low-income countries—undermining markets for smallholder farmers—and cultivate foreign markets as importers of high-input, industrial agriculture technologies to scale agriculture. At home, federal policy since the 1970s has explicitly promoted scaling industrial agriculture through the “get big or get out” imperative.

The U.S. Corn Belt, which spans the region from Ohio to Nebraska, produces 75 percent of the country’s corn, but around 35 percent of the region has completely lost its topsoil. Industrial agriculture has been pursued with special zeal in Iowa, where there are 25 million hogs and 3 million people. There, water from the Raccoon River enters the state capital of Des Moines—home to 550,000 people—with nitrates, phosphorus, and bacteria that have exceeded federal safe water drinking standards.

Soil and water-conserving perennial varieties of rice, wheat, legumes, and other food-grain crops—which are now being developed—could serve as components of diverse, perennial, multispecies communities of food crops that replicate how nature functions

smaller, more diverse farm operations

It is time to scale down agriculture and enhance our resilience to coming disruptions

Economic power, location, and access to resources determine how communities can respond to climate impacts. But these factors are shaped by existing global injustices: the history of slavery, colonialism, and imperialism that enriched some countries at the expense of others. Global warming has exacerbated these inequalities, and the climate crisis will lead to new divisions between those who can mitigate its impact and those who cannot.

The climate crisis is the result of the relentless pursuit of private interests by both multinational corporations and powerful countries: Fossil fuel companies seek profit, governments seek energy security, and private investors seek financial security. These pursuits have contributed to the campaigns of climate denialism that have slowed the international response to climate crisis, and that continue to fuel resource and land grabbing in many parts of Africa, Latin America, and Asia.

when short-term shareholder value faces off against the public good—and it often does—the former tends to win out. This mismatch of incentives is itself a fundamental cause of the climate crisis

to mitigate climate change effectively and fairly, the international community needs to broadly redistribute funds across states to respond to inequalities in resilience capacity and the unjust system underpinning them

When refugee flows from non-European countries increased in the second half of the 20th century, many Western powers shifted policy. While some refugees were accepted and resettled, many others were warehoused, detained, or subject to refoulement—forcible return—in violation of the U.N. Convention and Protocol Relating to the Status of Refugees.

The United Nations High Commission for Refugees (UNHCR) has so far refused to grant refugee status—and the protection that comes with it—to the 21.5 million people fleeing their homes as a result of sudden onset weather hazards every year, instead designating them as “environmental migrants.”

climate reparations are better understood as a systemic approach to redistributing resources and changing policies and institutions that have perpetuated harm—rather than a discrete exchange of money or of apologies for past wrongdoing

two distinct but interconnected issues: climate change mitigation, which would aim to minimize displacement; and just climate migration policy, which would respond to the displacement that governments have failed to prevent

The continuation of this status quo will make climate colonialism a near certainty, especially considering recent responses to migration in Europe, Australia, and the United States. Rich Western countries have already responded punitively to migration, holding thousands of migrants in detention centers under horrific conditions and responding with indifference or violence to attempted suicides and protests by the incarcerated for better treatment. Since 2015, European countries have reacted aggressively to the plight of asylum seekers; there is no indication that their response to climate refugees would be any more humane.

A reparatory approach to the climate crisis would require an overhaul of the existing international refugee regime. With this approach, the international community would reject the framing of refugee policy as rescue and rethink the framework that allows states to confine refugees in camps with international approval

In the context of the climate crisis, the West is responsible for more than secondary harms experienced within the international refugee regime. A reparatory approach seeks to understand which harms were committed and how through structural change, those harms can be addressed. A historically informed response to climate migration would force Western states to grapple with their role in creating the climate crisis and rendering parts of the world uninhabitable.

A failure to admit more refugees will accelerate the worst political effects of the climate crisis: fueling the transition of eco-fascism from fringe extremism to ruling ideology. The recognition of rights to movement and resettlement, and a steady liberalization of rich-country border policies fit under a reparatory framework, especially when paired with more sensible mitigation policies. However extreme this renegotiation of state sovereignty and citizenship may seem, it’s nowhere near as extreme as the logical conclusion of the status quo’s violent alternative: mass famine, region-scale armed conflict, and widespread displacement.

Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.

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

Much of the global economy is operating free of artificial enhancements. Lower-skilled workers confront bleak opportunities and intense competition, especially in the United States. Even as recent data shows middle-class Americans are finally starting to share in the gains from the recovery, incomes for many remain below where they were a decade ago

technological disruption and economic upheaval are now at work in an era of scarcity

The worst financial crisis since the Great Depression has left banks from Europe to the United States reluctant to lend. Real estate bonanzas from Spain to Southern California gave way to a disastrous wave of foreclosures, eliminating construction jobs. China’s slowdown has diminished its appetite for raw materials, sowing unemployment from the iron ore mines of Brazil to the coal pits of Indonesia.

Trade did not cause the breakdown in economic growth. Indeed, trade has helped generate what growth remains. But the pervasive stagnation has left little cover for those set back by globalization.

China’s entry into the World Trade Organization in 2001 unleashed a far larger shock, but a construction boom absorbed many laid-off workers.

“We do need to have these trade agreements,” Mr. Bown said, “but we do need to be cognizant that there are going to be losers and we need to have policies to address them.”

Corporations that used China to cut costs raised their value, enriching executives and ordinary investors. Today’s Headlines Wake up each morning to the day’s top news, analysis and opinion delivered to your inbox. Please verify you're not a robot by clicking the box. Invalid email address. Please re-enter. Sign Up Receive occasional updates and special offers for The New York Times's products and services. Thank you for subscribing. An error has occurred. Please try again later. You are already subscribed to this email. View all New York Times newsletters. See Sample Manage Email Preferences Not you? Privacy Policy The casualties of China’s exports are far fewer, but they are concentrated. The rugged country of western North Carolina suffered mass unemployment as Chinese-made wooden furniture put local plants out of business. So did glassmakers in Toledo, Ohio, and auto parts manufacturers across the Midwest.

Even among those who support trade, doubts are growing about its ability to deliver on crucial promises. A 2014 Pew Research Center survey of people in 44 countries found that only 45 percent of respondents believed trade raises wages. Only 26 percent believed that trade lowers prices.

Workers employed in major export industries earn higher wages than those in domestically focused sectors.Americans saw their choice of products expand by one-third in recent decades, the Federal Reserve Bank of Dallas found. Trade is how raspberries appear on store shelves in the dead of winter.

In the fallout, the United States maintained limits on unemployment benefits, leaving American workers vulnerable to plummeting fortunes. Social welfare systems have limited the toll in Europe, but economic growth has been weak, so jobs are scarce.

automation has grown in sophistication and reach. Between 2000 and 2010, the United States lost some 5.6 million manufacturing jobs, by the government’s calculation. Only 13 percent of those job losses can be explained by trade, according to an analysis by the Center for Business and Economic Research at Ball State University in Indiana. The rest were casualties of automation or the result of tweaks to factory operations that enabled more production with less labor.

if robots are a more significant threat to paychecks, they are also harder to blame than hordes of low-wage workers in overseas factories.“We have a public policy toward trade,” said Douglas A. Irwin, an economist at Dartmouth College. “We don’t have a public policy on automation.”

China’s relentless development was turning farmland into factories, accelerated by a landmark in the history of trade: the country’s inclusion in the World Trade Organization.The W.T.O. was born out of the General Agreement on Tariffs and Trade, a compact forged in 1947 that lowered barriers to international commerce in an effort to prevent a repeat of global hostilities.In the first four decades, tariffs on manufactured wares plunged from about 35 percent to nearly 6 percent, according to the Federal Reserve Bank of Chicago. By 2000, the volume of trade among members had swelled to 25 times that of a half-century earlier.

Mexico — home to about 123 million people — was not big enough to refashion the terms of trade. When China joined the W.T.O. in 2001, that added a country of 1.3 billion people to the global trading system

The anti-trade backlash, building for years, has become explosive because the global economy has arrived at a sobering period of reckoning. Years of investment manias and financial machinations that juiced the job market have lost potency, exposing longstanding downsides of trade that had previously been masked by illusive prosperity.

Chinese imports eliminated nearly one million American manufacturing jobs between 1999 and 2011. Add in suppliers and other related industries, and the total job losses reach 2.4 million.

Mr. Trump vows to slap punitive tariffs on Chinese goods. But that would very likely just shift production to other low-wage countries like Vietnam and Mexico. It would not turn the lights on at shuttered textile plants in the Carolinas. (Even if it did, robots would probably capture most of the jobs.)

Trade Adjustment Assistance, a government program started in 1962 and expanded significantly a dozen years later, is supposed to support workers whose jobs are casualties of overseas competition. The program pays for job training.But Mr. Simmons rolls his eyes at mention of the program. Training has almost become a joke. Skills often do not translate from old jobs to new. Many workers just draw a check while they attend training and then remain jobless.

European workers have fared better. In wealthier countries like Germany, the Netherlands, Sweden and Denmark, unemployment benefits, housing subsidies and government-provided health care are far more generous than in the United States.In the five years after a job loss, an American family of four that is eligible for housing assistance receives average benefits equal to 25 percent of the unemployed person’s previous wages, according to data from the Organization for Economic Cooperation and Development. For a similar family in the Netherlands, benefits reach 70 percent.

Yet in Europe, too, the impacts of trade have been uneven, in part because of the quirks of the European Union. Trade deals are cut by Brussels, setting the terms for the 28 member nations. Social programs are left to national governments.

In China, farmers whose land has been turned into factories are making more steel than the world needs. Advertisement Continue reading the main story In America, idled steel workers are contemplating how to live off the land.

a provision that would enable multinational companies to sue governments for compensation when regulations dent their profits.Esso, a subsidiary of Exxon Mobil, the American petroleum company, has operations in the Netherlands. Suppose the government went ahead with plans to limit drilling to protect the environment?“They could sue the Dutch state,” he fumed. “We are not so sure in the Netherlands whether we want to give the multinationals so much power. We are a trading country, but it’s not always that trade should prevail against quality of life.”

the longshoremen fret about robots

Now, many longshoremen sit in glass-fronted offices set back from the docks, controlling robotic arms via computer terminals.

The robots will win in the end, because robots never strike. Robots improve with time.

Trade deals, immigrant labor, automation: As Mr. Arkenbout sees it, these are all just instruments wielded in pursuit of the same goal — paying him less so corporations can keep more.“When they don’t need me anymore,” he said, “I’m nothing.”

The UK’s trade negotiating efforts will instead be targeted, first, at reaching a satisfactory arrangement with the EU and renegotiating British membership of the World Trade Organisation.  A secondary priority will be to negotiate trade deals with other key markets and partners (for example the US, Canada, India, Brazil and China).

The UK will have no say in the EU’s plans to extend the Economic Partnership Agreements, in the EU’s ongoing efforts to promote regional integration in Africa, or in the future of European agricultural subsidies that continue to cause damage to African producers

Countries do not give up when they have invested so much, unless they are forced to do so after a major war (as Iraq was), or when regime change comes (as it did in Brazil and South Africa

The eternal hope of Western dip-lomats is that authoritarian regimes are on the wrong side of history and therefore cannot last long. But sometimes they do.

By 2025–30, providing its weaponisation expertise is solid, Iran will be technically in a position to make, in a matter of months, a nuclear weapon that can be carried by a medium-range ballistic missile. By year 15 of the deal, produc-ing one bomb’s worth of HEU might take less than two weeks; and after a few more years, it might only be a matter of days.6 And by the end of the deal, if it had not ratified the Additional Protocol, Iran could just stop its ‘voluntary’ implementation

Reimposing sanctions will be hard when hundreds of Western, Russian and Chinese companies flourish in Iran

Could the deal have been better? Its supporters have used two slogans: ‘this is the best possible deal’, and ‘this deal now or war later’. Both are false alternatives, giving the impression that they were created for rhetorical purposes. Washington’s self-imposed deadlines left it negotiating against itself. It may very well have been wiser to wait until Iran felt the pressure of sanctions even more. At times, the United States may have given Tehran the impression that it needed a deal even more than the Iranians did. The second argument is equally spurious: few serious analysts or politicians would support immediate military action against Iran

we should make it work. This will require careful and constant monitoring: let us beware of ‘Iran fatigue’. The E3/EU+3 should supplement the massive-retaliation snapback provi-sions with informal understandings among the group’s members on how to respond to minor violations: a graduated response is needed. A key aspect will be the way the IAEA will judge whether or not the PMD question is settled. Here, Tehran should not be let off the hook. Finally, the E3/EU+3, or at least its four Western members, should regularly – perhaps annually – make a solemn commitment that they will not allow Iran to obtain a nuclear explosivedevice and are ready to use any means to that effect.

Any precedent the Iranian crisis creates will be fully exploited by the next ‘Nth country’

The people best able to exploit the opportunities of globalization are those who already have money, education, and connections that reach beyond their countries' borders. They live by the mantra "buy low locally, sell high globally." Compatriots who work in their mines, sweatshops, and call centers may be slightly better off, but the newly globalized super-rich are off the charts.

All over the world, the Gilded Age has returned. As we know now, the Gilded Age was not necessarily the most productive period for the United States. Calculations by economists Louis Johnston and Samuel Williamson suggest that the cumulative annual growth rate of real gross domestic product per capita was about 1.8 percent between 1870 and 1910, compared with 2.2 percent in the postwar boom from 1947 to 2007. That difference of 0.4 percent may not seem like much, but over a span of decades it really adds up. Eventually, we found that competition and meritocracy worked better than robber barons and trusts.

inequality -- particularly the inequality of wealth -- disrupts the efficient allocation of opportunities in an economy. When a stupid rich kid gets a job that a smart poor kid could have done better, the economic pie shrinks for all of us.

The drop in inequality between countries won't do much at all to mitigate the situation. After all, the fact that a poor Burundian is now closer in income to a poor Bulgarian won't help his chances of winning a seat in parliament or a place at the national university if the incomes of rich Burundians have risen exponentially

Zille encouraged residents to inform on water-hogging neighbors and become “water impimpis”—a callback to an apartheid-era term for black South Africans who spied for the white-dominated government.

Almost immediately after city leaders announced the first Day Zero predictions, they came under heavy scrutiny from citizens and activists, especially among Cape Town’s communities of color. Many in labor, socialist, and leftist organizations in the region didn’t believe Day Zero was even a thing. Elements from those organizations created the Cape Town Water Crisis Coalition, which protested Day Zero as propaganda designed both to cover up faulty city water management and to deny expanded access to low-income communities.

the management of the crisis has also sparked criticism from the African National Congress, or the ANC, the dominant party in the country. As the only opposition party to control a province, the DA is certainly used to strife with the ANC, but now old struggles over resources have brought that tension to a breaking point.

Deeply complicating the dynamic between the two parties is that the Western Cape is the major center of white demographic strength and political clout in the country, and that the DA—while embracing a membership of blacks, “coloured” multiracial descendants of indigenous peoples and Asian immigrants, and whites—often finds white leaders near or at the top

Under South Africa’s Constitution, the ANC is responsible for providing water to all citizens, but the actual infrastructure and services in the Western Cape falls upon the DA to manage

Last July, when confronted on Twitter by a black user who said that black residents in areas without running home water had experienced Day Zero from birth, Zille, who is white, responded with: “It must be a relief that you weren’t burdened by the legacy of a colonial water-piping system.” Zille, who’s faced harsh internal and external criticism for previous statements in defense of colonialism, this time suffered a rebuke from party boss Mmusi Maimane, and has since been officially suspended from party activities

Residents in well-apportioned suburbs pointed fingers at the mostly-black and poor residents of the so-called “informal settlements”—the tin-roofed, sprawling shanties that ring the outskirts of the city—despite the fact that these settlements use the least water per capita of any place in the province. And lacking internal plumbing and sewage, residents in the informal settlements often see in the city’s elites and governing class a neo-colonialist force, doling out resources at whim and mismanaging the commons

As they stand now, the Level 6B restrictions created by the city of Cape Town in January 2018 are supposed to limit residents to 50 liters per day, slash agricultural use by 60 percent below last year’s usage, aggressively push water-management devices and fines, and encourage the use of new fittings and other devices to minimize water waste.

Americans use somewhere around 90 gallons, or 340 liters, of water every 24 hours. That’s more than 700 pounds of water per day, and that’s not even counting what goes into the food you eat or the thirsty maws of the industries and services that sustain you

Right now, the water usage of the average Capetonian sits at about 125 liters per day, a dramatic decrease from the 200 daily liters of last year. Both of those levels sit below the average of developed cities worldwide, and well below the standard American usage of 340 liters.

the extreme social engineering brought about by the Day Zero campaign is unlikely to be a long-term solution to future water problems in Cape Town. Nor will it necessarily prove to be a sustainable model for other cities facing water shortages

“The climate projections for Cape Town indicate essentially a relatively consistent reduction in the amount of rainfall in Cape Town,” Wolski told me. “In the best case, it would be rainfall that is similar to what we have. But most of the projections indicate reduction.”

Environmental think tanks and journalistic outlets have published lists of cities that look likely to run out of water in the near future: São Paulo, Brazil, which faced its own Day Zero situation just a few years ago; Bangalore, India; Beijing, China; Cairo, Egypt; Mexico City; and—surprisingly, given its climate—Moscow, Russia. While each city has a very different set of reasons for its water woes, ranging from pollution to poor infrastructure to poor planning to desertification and drought, they all share a common challenge: Climate change will likely make the task of providing water harder, the populations thirstier, and the people angrier, even as many of the cities grow.

shortages in São Paulo sparked street fights, citizen mobilization, and major political dissent in the city

inequality manifests both in social stratification and in the development of water-delivery systems to those different strata

Mirroring class conflicts in the 20th century, the idea that access to water is a human right has become a driver of solidarity, hardening ad-hoc activist groups into major political movements. Extrapolating to the rest of a warming world, where racial and class barriers have been built into zoning and infrastructure, the uneasy detentes of segregated spaces and places could become new zones of conflict. All you have to do is remove water.

so far this winter the rainfall has helped raise the dam levels to just below 60 percent of capacity, which should put off the next crisis point for some time. Cab drivers, students, waiters, and tour guides spoke incessantly of the Day Zero crisis—and with plenty of real venom—but they mostly spoke of it as a thing that had happened, an event that was now being relegated to the past

By directly acquiring mines, accumulating equity stakes in natural-resource companies, making long-term agreements to buy mines’ current or future production (known as “off-take agreements”), and investing in new projects under development, Chinese firms traded much-needed capital for outright control or influence over large shares of the global production of these resources. Despite China’s slowing growth and a major pullback in its foreign direct investment in other sectors, the government has maintained robust financial support for resource acquisition; mergers and acquisitions in metals and chemicals hit a record high in 2018.

China lacks significant reserves of three resources vital to its tech ambitions: cobalt, platinum-group metals, and lithium. It has successfully employed two strategies to secure control of them. One is driven by China’s state-owned enterprises (SOEs), which use development finance and infrastructure investment to embed themselves in higher-risk countries, establishing close ties with government leaders. The second is investment by state-linked private firms in market-based economies. Both strategies have shown agility and an ability to effectively adapt to local circumstances to achieve the same end.

Chile is home to 57 percent of the world’s known lithium reserves, the world’s largest known concentration, and SQM controls roughly half the country’s production

DRC is home to nearly two-thirds of the world’s cobalt production and half of its known reserves. Those resources are the prime target of investors for the booming battery industry. Over a decade of steady engagement, China has staked out a dominant position by developing strong political ties and investing in production assets and related infrastructure

China’s SOEs and private firms have made at least eight major equity and off-take plays in platinum-group metals in the Bushveld Complex. Such investments in South Africa’s highly concentrated and strategic resource deposits have helped make metals the country’s leading source of export growth, with nearly 50 percent of its metal exports going to China—tying South Africa’s economic welfare directly to Chinese investment.

the three countries where nearly 90 percent of global lithium production and more than three-quarters of the world’s known lithium reserves are located: Chile, Argentina, and Australia. In just six years, China has come to dominate the global market: More than 59 percent of the world’s lithium resources are now under its control or influence

China now owns or has influence over half of the DRC’s cobalt production, and has a massive stake in its mining industry. Six months ahead of the presidential elections, the event also sent a strong message to candidates about China’s deep investment in copper and cobalt mining—which constitutes 80 percent of the DRC’s export revenue and thousands of jobs—and its capacity to influence the future of the DRC’s economy

Natural resources are abundant in China; it is the No. 1 producer and processor of at least ten critical minerals and metals that are essential to high-tech industries and upon which China’s commercial and strategic competitors depend. To reinforce its strength, Chinese firms are acquiring mines and output from the next-largest producers and reserves, giving China both an economic edge in the next high-tech industrial revolution and increasing geopolitical power.

In a cash-strapped industry, Chinese firms are financing mine expansion and new development in exchange for a guaranteed supply of lithium in both mature and emerging markets. In Argentina, where President Mauricio Macri is eliminating mineral export taxes, reducing corporate tax rates, and allowing profit repatriation, China is establishing a dominant position in the nascent sector with “streaming deals,” which provide development capital in exchange for future lithium yields to help projects get off the ground. Chinese firms, led by Ganfeng, have stakes in 41 percent of the country’s major planned projects that account for 37 percent of Argentina’s reserves. This raw-material strategy is already coming to fruition: Lithium export volumes from Argentina to China rose nearly fourfold from 2015 to 2017, and China has secured access to the country's lithium for the longer term.

This same strategy, combined with asset acquisition, has also been successful in Australia, whose proximity to China, significant lithium reserves, and broad political support for mining investment have attracted Chinese investment. Tianqi and Ganfeng have established stakes in 91 percent of the lithium mining projects underway and 75 percent of the country’s reserves, including some of the world’s largest.

Though the final agreement included restrictions on Tianqi’s board and committee participation and its access to SQM’s sensitive data, Tianqi’s equity position still confers considerable influence over SQM.

Perhaps the best-known example both of China’s natural-resource dominance and its willingness to exploit it is rare-earth elements, a group of 17 elements that (despite their name) are commonly found, but rarely in concentrations that can be economically extracted. They are important materials for the defense, aerospace, electronics, and renewable energy industries. Over the past two decades China has produced more than 80 percent of the world’s production of rare-earth elements and processed chemicals. In 2010 it cut off exports to Japan amid rising tensions over the East China Sea, and the following year it imposed export quotas that threw governments and manufacturers into a panic. But with the exception of Japan, the attention to this critical vulnerability was short-lived, and little action was taken by other countries reliant on imports to diversify their resources or develop minerals action plans of their own.

China declared rare-earth elements a strategic resource in 1990 and prohibited foreign investment in the sector. Six state-owned enterprises control the industry, and the government cut production quotas in 2018 by 36 percent. With global demand for rare-earth elements projected at a compound average growth rate of more than 17 percent to 2025, a supply crunch is likely approaching—and China is already securing other nations’ supplies

While Russia strictly limits foreign participation in rare-earth element development, Chinese firms have accumulated off-take agreements and stakes in rare-earth element mines in Australia and Brazil

in 2017, China’s Shenghe Resources and two U.S. private equity firms acquired the sole U.S. and North American rare-earth element producer and processor, Molycorp, and its idled mining operations at Mountain Pass, California.

In 2016, China’s Yellow Dragon Holdings Ltd. co-invested with Bushveld Minerals, the primary vanadium developer in South Africa’s massive Bushveld Complex, to acquire Strategic Minerals, which owned the Vametco vanadium mine and plant. Yellow Dragon subsequently increased its investment in Bushveld Minerals and has become the fifth-largest shareholder. The holdings deepen China’s influence over South Africa’s vanadium resources and its role in the country’s emerging high-tech sector

China’s position is even stronger in graphite, a crystalline form of the element carbon whose high conductivity makes it a major component in electrodes, batteries, and solar panels, as well as industrial products such as steel and composites. For the last 20 years, China has been the leading global supplier of graphite, representing nearly 70 percent of the world’s production in 2018 and 24 percent of its reserves. While synthetic graphite, which is produced from petroleum coke, is an alternative, unfavorable economics constrain its use

New projects are concentrated in Mozambique, where the world’s largest graphite mine and fourth-largest known reserves are located. Already, Chinese firms have secured off-take agreements with the three major developers in Mozambique for the majority of their graphite production, and they are financing new development.

Japan is 90 percent reliant on China for its graphite

This resource consolidation could determine whether China is able to overcome the last major hurdle to achieving its ambitions: a competitive semiconductor industry.

Semiconductors can be pure elements or compounds and altered with impurities to improve their conductivity. Several materials are now being used to improve speed and performance, including rare-earth elements, graphite, indium, gallium, tantalum, and cadmium. China is the dominant producer of five out of the six, controls more than 75 percent of the world’s supply of three, and is consolidating control over them all

Should China succeed technologically, its capacity to scale production and flood markets (as it has already done with solar panels and wind turbines) has serious implications not only for leading semiconductor producers, but also for national security, if Chinese-manufactured chips are embedded in the devices upon which our data-driven lives, our economies, and our defense systems increasingly depend. While government and industry officials have started to restrict semiconductor sales and scrutinize Chinese acquisition of technology firms—e.g., the United States’ temporary ban on selling semiconductors to ZTE, or the recent flare-up over Huawei —such moves are strengthening China’s resolve to develop its domestic industry. More attention should be paid to its efforts to consolidate critical raw materials and the computing power they confer.

In April, U.S. government officials announced plans to meet with lithium industry leaders and automakers with the intention of developing a national electric-vehicle supply chain strategy. It is a start.