Group items tagged

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.

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.

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.

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

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

“Censorship cannot be regarded as a country’s internal matter. Information control in a given country can have consequences all over the planet and we are suffering the effects of this today. The same goes for disinformation and rumours. They make people take bad decisions, they limit free will and they sap intelligence.” 

RSF has taken measures to ensure that it remains as fully operational as possible while guaranteeing the safety of its personnel and partners. The data RSF collects comes from its network of bureaux and correspondents. Tracker-19 offers an interactive world map on the press freedom situation, constant coverage of developments and analyses of key issues. 

we are on the verge of a global boom in mining linked to the energy transition

by 2040, the IEA forecasts that demand for lithium will have increased 42 times relative to 2020 levels

In the US and Europe, policymakers increasingly talk about a “race” to secure the minerals linked to energy transition and shore up domestic supplies; the idea of a “new cold war” with China is frequently invoked

natural resource sectors, which include extractive activities like mining, are responsible for 90% of biodiversity loss and more than half of carbon emissions. One report estimates that the mining sector produces 100bn tons of waste every year. Extraction and processing are typically water- and energy-intensive, and contaminate waterways and soil. Alongside these dramatic changes to the natural environment, mining is linked to human rights abuses, respiratory ailments, dispossession of indigenous territory and labour exploitation. Once the minerals are wrested from the ground, mining companies tend to accumulate profits and leave behind poverty and contamination. These profits only multiply along the vast supply chains that produce electric vehicles and solar panels. Access to these technologies is highly unequal, and the communities who suffer the harms of extraction are frequently denied its benefits.

battles between competing visions of a low-carbon world are intensifying – and they will become increasingly central to politics across the world

there are multiple paths to rapid decarbonisation

A transportation system based on individual electric vehicles, for example, with landscapes dominated by highways and suburban sprawl, is much more resource- and energy-intensive than one that favours mass transit and alternatives such as walking and cycling

Chilean activists are clear: there is no zero-sum conflict between fighting climate breakdown and preserving local environments and livelihoods. Indigenous communities in the Atacama desert are also on the frontlines of the devastating impacts of global heating. Rather than an excuse to intensify mining, the accelerating climate crisis should be an impetus to transform the rapacious and environmentally harmful patterns of production and consumption that caused this crisis in the first place

On a planet that shares a single atmosphere, concepts like "here" and "there" are misleading. The steak we eat "here" threatens a farmer’s harvest "there". The plane someone catches "there" makes the water levels rise "here".

Each and every individual, organisation and country that reduces its carbon footprint is a small but indispensable link in the fight against global warming. Eventually, we will reach the tipping point: so many people will have switched to zero-carbon energy sources that fossil fuels will be "overcome".

The elderly, people of colour, immigrants, low-educated adults, people in debt, people on lower incomes, people in developing countries, refugees, the uninsured, the unemployed: all these groups have an above-average risk of falling prey to this pandemic, both physically and socio-economically

those who contribute least to the climate crisis are most severely affected by it – and vice versa

the unequal distribution of the climate emergency is a crisis in its own right.

The coronavirus pandemic shows that “keeping distance” and similar measures are primarily for the privileged, only available to people who “can afford to retreat in individualism”, as OluTimehin Adegbeye, our correspondent in Nigeria, put it so powerfully.

These flaws are more visible now than ever before. The way we deal with animals is untenable. Patent laws in the pharmaceutical industry pose a real threat to public health. The fossil fuel industry, like the financial sector, is only able to exist by the grace of privatised profits and socialised losses.

a sustainable society is not a pandemic bunker. The similarity is that the change that is needed will affect every aspect of society. There really isn’t an app for it.

Continuing to see Earth as an infinite resource and the sky above us as an infinite garbage bin, in order to artificially boost quarterly profits, with CEOs sitting in reality-proofed boardrooms comparing the size of their bonuses while begging for taxpayer bailouts but refusing to pay taxes themselves: no, that’s a “normal” we simply can’t afford going back to.

Thousands of deaths and intensive care units (ICUs) flooded with patients struggling to breathe cannot be denied for very long, even by the most persistent manufacturers of alternative facts – unlike climate refugees (“fortune seekers!”), loss of biodiversity (“the dinosaurs died out too, right?”), and global warming itself (“temperatures have risen before!”).

we are, in fact, capable of bringing about sweeping societal change to protect us all. Now is the time to resolve not one crisis but two. Starting with sustainable spending of the trillions (!) being allocated to coronavirus-related measures right now.

No government bailouts for fossil industries without an exit strategy towards a zero-carbon business model within 30 years. No government bailouts for companies with primary bank accounts in tax havens. And even more government funding for truly sustainable alternatives. How about giving that a try?

Tensions escalated this year, as the U.S.-brokered negotiations between Ethiopia and Egypt unraveled and new talks mediated by the African Union began

Construction of the dam was completed in July, and the filling of its reservoir started soon after amid heavy rains but before an agreement between Ethiopia, Egypt, and Sudan was signed. The U.S. government, a top source of aid for both Ethiopia and Egypt, said in August that it would halt some aid to Ethiopia over what it saw as a unilateral move to progress with the dam.

Social media users from the two countries frequently collide on the Internet, but seem to do so most often on Adel el-Adawy’s Twitter page: As a member of a prominent Egyptian political dynasty, a professor at the American University in Cairo, and the most visible disseminator of the Egyptian perspective on the dam in English, he has amassed a significant following. Adawy, whose pinned tweet is a picture of himself shaking hands with Egyptian President Abdel Fattah al-Sisi, posts frequently about the Nile and Ethiopian affairs, especially when things get sticky.

It’s possible that the engagement is coming from concerned Ethiopians at home and abroad, at the encouragement but not the behest of Ethiopian officials. “I have friends who joined Twitter just for the sake of this. It’s highly emotional and nationalistic,” said Endalkachew Chala, an Ethiopian communications professor at Hamline University in Minnesota.

The Ethiopian government does broadly engage in “computational propaganda,” according to a 2019 report from the Oxford Internet Institute. Agencies there use human-run social media accounts to spread pro-government propaganda, attack the opposition, and troll users. The same goes for the Egyptian government.

the first known time these kinds of digital tools have been used by people from one African country against people from another, said Gilbert Nyandeje, founder and CEO of the Africa Cyber Defense Forum. “It only means one thing. It means we should expect this more and more.”

the dam provided a unifying issue around which Ethiopians of all ethnic backgrounds could rally. “We do have a lot of divisions—ideological, ethnic, tribal, religious,” said Chala, the Ethiopian professor. “But even though we have these bitter divisions, Ethiopians have overwhelmingly supported this Nile dam especially on social media.”

at the core of Egyptian identity is the Nile, so bolstering nationalism means defending the Nile, too. And officials have encouraged this outlook: One sleekly produced video shared on Facebook by the Ministry of Immigration and Egyptian Expatriates Affairs warned, “More than 40 million Egyptians are facing the threat of drought and thirst.… The cause of water shortage is Ethiopia building a dam five times bigger than its needs.”

a show of vulnerability rare in Arab power politics. But the strategy has helped garner global sympathy for Egypt, even as its Nile claims are framed by Ethiopia as the result of unjust colonial-era agreements in which Egypt’s interests were represented by British colonizers.

For both countries—Egypt since the 2011 fall of Mubarak and Ethiopia since the 2012 death of strongman Prime Minister Meles Zenawi—national identity has been in flux

Ethiopian officials, meanwhile, continue to encourage Ethiopians to post about the dam online and often use the #ItsMyDam hashtag in their own social media posts. This use of social media to rally around the dam has also meant that Ethiopia’s massive global diaspora can get involved, without having to worry about frequent in-country Internet shutdowns that otherwise curtail online movements there.

The thousands of Ethiopian refugees, asylum seekers, and migrants living in Egypt are now facing greater pressure and harassment from Egyptian citizens and authorities since the dam tensions started to heat up

in Ethiopia, it has meant that any domestic criticism of the dam from an environmentalist point of view—namely, that it could disrupt ecosystems and biodiversity, even within Ethiopia—is met with derision

for both countries, surging nationalist sentiment means that it’s harder for officials to agree to, and for the public to accept, compromise

the main sticking points now are related to dispute resolution, drought contingency plans, and future upstream projects. And yet, much of the online rhetoric remains maximalist, even rejecting items that have already been unanimously decided—such as the existence of an Ethiopian Nile dam in any form—raising the possibility that the online tensions and attacks may not subside anytime soon

“For a long time, people have known that chemical pollution is a bad thing. But they haven’t been thinking about it at the global level. This work brings chemical pollution, especially plastics, into the story of how people are changing the planet.”

a huge number of chemical compounds registered for use – about 350,000 – and only a tiny fraction of these have been assessed for safety.

the total mass of plastics now exceeds the total mass of all living mammals

“Shifting to a circular economy is really important. That means changing materials and products so they can be reused, not wasted.”

There are growing calls for international action on chemicals and plastics, including the establishment of a global scientific body for chemical pollution akin to the Intergovernmental Panel on Climate Change.

“The rise of the chemical burden in the environment is diffuse and insidious. Even if the toxic effects of individual chemicals can be hard to detect, this does not mean that the aggregate effect is likely to be insignificant.“Regulation is not designed to detect or understand these effects. We are relatively blind to what is going on as a result. In this situation, where we have a low level of scientific certainty about effects, there is a need for a much more precautionary approach to new chemicals and to the amount being emitted to the environment.”

The chemical pollution planetary boundary is the fifth of nine that scientists say have been crossed, with the others being global heating, the destruction of wild habitats, loss of biodiversity and excessive nitrogen and phosphorus pollution.

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

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.