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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

if we want a decent shot at climate stability, high-income nations will have to shift to post-growth economic principles

Post-growth thinking is starting to trickle into policy, too. Jacinda Ardern, the prime minister of New Zealand, captured headlines in 2019

Economists have long assumed that we need growth to improve people’s lives. But it turns out there’s no empirical evidence for this argument. Beyond a certain point, which high-income countries have long since surpassed, the relationship between GDP and human wellbeing completely breaks down.

dozens of countries beat the US in life expectancy with only a fraction of the income

universal public services are significantly more cost-efficient than their private counterparts. Spain spends $2,300 per person on healthcare,

The reason that GDP growth tends not to deliver the outcomes that we might expect is because the vast majority of it goes straight into the pockets of the rich. They are the real beneficiaries of growth. In the United States, the incomes of the richest 1% have more than tripled since the 1970s,

growthism

Climate scientists are warning that it’s not feasible for high-income nations to transition to renewables fast enough to stay within the carbon budget for 1.5C, or even 2C, if they continue to pursue economic growth at the usual rates. Why? Because more growth means more energy demand, and more demand makes it all the more difficult to roll out enough renewable energy capacity. According to a team of scientists based in Canada,

The less energy we use, the easier it is to accomplish a rapid transition to renewables. This is perhaps the single most important lesson that climate science has taught us in the past few years.

Think of all the energy that’s needed to extract and produce and transport all of the material commodities that the economy churns out each year. Think of the mining, the logging, the factories, the packaging, the container ships, the warehouses, the retail outlets and the waste disposal facilities. The material economy is a giant energy-sucking machine. By reducing the material "throughput" of our economy – the amount of stuff we produce and consume – we can reduce our energy demand. 

The key thing to grasp is that a huge chunk of material production in our economy is intended, literally, to be wasted. Firms desperate to overcome the limits of saturated markets resort to all sorts of devious tactics to artificially increase turnover. Take planned obsolescence, for example. The lifespan of household appliances like refrigerators and washing machines has plummeted over the past few decades.

Research by US sociologists has revealed that advertising expenditures have a direct impact

We like to think of capitalism as a system that’s rational and efficient when it comes to meeting human needs. But in some respects, it’s exactly the opposite. In pursuit of constant growth, firms resort to intentional inefficiencies. This might be rational from the perspective of profits, but from the perspective of human need, and from the perspective of ecology, it is a kind of madness. It is madness in terms of human labour, too. Think about the millions of hours that are poured into producing stuff that’s designed to break down, or that people don’t actually need in the first place.

We can legislate for long-term warranties, rights to repair, and mandatory take-back schemes. We can regulate marketing expenditures, and we can liberate public spaces from ads telling us to buy even more – both offline and online. The gains from this could be enormous. Think about it: if clothes and refrigerators and smartphones last twice as long, we will consume half as many. That’s half the extraction, half the shipping, half the warehouses, half the transport, half the waste – and half the energy it takes to power it all. 

There are also a number of other steps we can take. We can shift from private cars to public transport. We can ban food waste by supermarkets and farms. We can cut single-use packaging. And we can choose to scale down ecologically destructive and socially less necessary industries, such as SUVs,

But, you might ask, what about jobs? As we scale down unnecessary industrial activity, won’t that cause unemployment to rise? Under normal circumstances, yes. But ecological economists have a surprisingly simple solution to this: shorten the working week. Add a job guarantee to the mix (a policy that happens to be resoundingly popular)

What’s exciting about this move is that it has a substantial positive impact on wellbeing. Studies in the US have found that people who work shorter hours are happier than those who work longer hours, even when controlling for income. And it has a big impact on energy demand, too. If the United States were to reduce its working hours to the levels of western Europe, its energy use would decline by a staggering 20%. 

Public interest in post-growth economics has soared over the past year as the climate crisis worsens. With fires blazing through Australia and the Amazon, floods swamping northern England, droughts driving migration, and record heatwaves searing across Antarctica, people realise that the status quo has us hurtling toward disaster, and they’re increasingly open to new ideas. In the 2020s, we can expect that the climate movement will rally around the Green New Deal and a vision for a completely new economy. 

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 cost of living in Lagos is also very high, which means that home ownership is the exception for Lagosians rather than the rule. The majority of renters live in extremely close quarters, in a kind of private proximity that mirrors the density of public life.

In my city, grimy currency notes go from hand to hand throughout the course of everyday life. People sweat on one another in transit. Communal toilets, kitchens and bathrooms are typical in low-income neighbourhoods, and can be shared by as many as 40 people in one building. In the poorest neighbourhoods, sanitation is non-existent because neither piped water nor sewage management systems are available.

even if we wanted to, we simply don’t have the space to socially distance from one another

there are other threats more real and more immediate than a respiratory infection which has so far tended to kill old people in faraway places most of us will only ever see on TV. The idea of social distancing is not just alien to us, it is impossible for social and economic reasons too. Cities such as Lagos are kept alive by the kind of interpersonal interaction that the global north is currently discouraging or criminalising.

In Lagos, about six million people live on incomes earned largely on a daily basis

For such people, the possibility of catching a previously unheard-of illness is a far less dangerous one than the knowledge that not having anything to eat is always a sunrise away.

If rape and torture are not enough to deter people from leaving home every day to try to make some money to survive, a novel coronavirus outbreak is not likely to succeed either

In Nigeria, it won’t matter whether we get 20,000 cases all at once or over the course of a few months; with fewer than 500 ventilators for a population of 200 million,

In all likelihood, the social expectation that female relatives will care for the sick and dying will hold sway in this outbreak, which means that in the immediate term, girls and women may be at disproportionate risk of infection and re-infection. Still, as 80% of coronavirus patients report mild to moderate symptoms,

The failures of the government have been mitigated by the fact that we are socialised to see to the wellbeing of our communities and their members; this has been a workable solution until now.

a reality that is extremely widespread across Africa: people survive difficulty by coming together as communities of care, not pulling apart in a retreat into individualism. 

It’s time for us Africans to start thinking about solutions that are not based on the legitimate fears of other nations, but on our own established realities.

This visceral emotion is unhealthy and extraordinarily dangerous because there are few checks and balances around Putin

The last time that his brand got stale, it was before the annexation of Crimea. That put him back on the top of the charts in terms of his ratings.

just a couple of days before the invasion of Ukraine in a little-noticed act, Azerbaijan signed a bilateral military agreement with Russia. This is significant because Azerbaijan’s leader has been resisting this for decades. And we can also see that Russia has made itself the final arbiter of the future relationship between Armenia and Azerbaijan. Georgia has also been marginalized after being a thorn in Russia’s side for decades. And Belarus is now completely subjugated by Moscow.

what Putin is saying now is that Ukraine doesn’t belong to Ukrainians. It belongs to him and the past. He is going to wipe Ukraine off the map, literally, because it doesn’t belong on his map of the “Russian world.” He’s basically told us that.

If there is serious resistance, he may not have sufficient force to take the country for a protracted period. It also may be that he doesn’t want to occupy the whole country, that he wants to break it up, maybe annex some parts of it, maybe leave some of it as rump statelets or a larger rump Ukraine somewhere, maybe around Lviv. I’m not saying that I know exactly what’s going on in his head. And he may even suggest other parts of Ukraine get absorbed by adjacent countries.

what Putin wants isn’t necessarily to occupy the whole country, but really to divide it up. He’s looked at Afghanistan, Iraq, Libya and other places where there’s a division of the country between the officially sanctioned forces on the one hand, and the rebel forces on the other. That’s something that Putin could definitely live with — a fractured, shattered Ukraine with different bits being in different statuses.

In 2020, Putin had the Russian Constitution amended so that he could stay on until 2036, another set of two six-year terms. He’s going to be 84 then. But in 2024, he has to re-legitimate himself by standing for election. The only real contender might have been Alexei Navalny, and they’ve put him in a penal colony. Putin has rolled up all the potential opposition and resistance, so one would think it would be a cakewalk for him in 2024. But the way it works with Russian elections, he actually has to put on a convincing show that demonstrates that he’s immensely popular and he’s got the affirmation of all the population.

Putin’s not looking so great, he’s been rather puffy-faced. We know that he has complained about having back issues. Even if it’s not something worse than that, it could be that he’s taking high doses of steroids, or there may be something else. There seems to be an urgency for this that may be also driven by personal factors.

Unfortunately, we have politicians and public figures in the United States and around Europe who have embraced the idea that Russia was wronged by NATO and that Putin is a strong, powerful man and has the right to do what he’s doing

Putin came to power after a series of operations that many have seen as a kind of false flag — bombings of buildings around Russia that killed Russian citizens, hundreds of them, followed by a war in Chechnya. That led to Putin coming to power as a wartime president. The annexation of Crimea in 2014 also came at a difficult time for Putin. Now we’re seeing another big military operation less than two years before he needs to stand for election again

If all was peaceful and quiet, why would you need Vladimir Putin?

We have had a long-term policy failure going back to the end of the Cold War in terms of thinking about how to manage NATO’s relations with Russia to minimize risk. NATO is a like a massive insurer, a protector of national security for Europe and the United States. After the end of the Cold War, we still thought that we had the best insurance for the hazards we could face — flood, fire etc. — but for a discounted premium. We didn’t take adequate steps to address and reduce the various risks. We can now see that that we didn’t do our due diligence and fully consider all the possible contingencies, including how we would mitigate Russia’s negative response to successive expansions.

Putin tried to warn Trump about this, but I don’t think Trump figured out what he was saying. In one of the last meetings between Putin and Trump when I was there, Putin was making the point that: “Well you know, Donald, we have these hypersonic missiles.” And Trump was saying, “Well, we will get them too.” Putin was saying, “Well, yes, you will get them eventually, but we’ve got them first.” There was a menace in this exchange. Putin was putting us on notice that if push came to shove in some confrontational environment that the nuclear option would be on the table.

The thing about Putin is, if he has an instrument, he wants to use it. Why have it if you can’t? He’s already used a nuclear weapon in some respects. Russian operatives poisoned Alexander Litvinenko with radioactive polonium and turned him into a human dirty bomb and polonium was spread all around London at every spot that poor man visited. He died a horrible death as a result.

The Russians have already used a weapons-grade nerve agent, Novichok. They’ve used it possibly several times, but for certain twice. Once in Salisbury, England, where it was rubbed all over the doorknob of Sergei Skripal and his daughter Yulia, who actually didn’t die; but the nerve agent contaminated the city of Salisbury, and anybody else who came into contact with it got sickened. Novichok killed a British citizen, Dawn Sturgess, because the assassins stored it in a perfume bottle which was discarded into a charity donation box where it was found by Sturgess and her partner. There was enough nerve agent in that bottle to kill several thousand people. The second time was in Alexander Navalny’s underpants.

if anybody thinks that Putin wouldn’t use something that he’s got that is unusual and cruel, think again. Every time you think, “No, he wouldn’t, would he?” Well, yes, he would. And he wants us to know that, of course.

similar to Hitler, he’s using a sense of massive historical grievance combined with a veneer of protecting Russians and a dismissal of the rights of minorities and other nations to have independent countries in order to fuel territorial ambitions?

there were an awful lot of people around Europe who became Nazi German sympathizers before the invasion of Poland. In the United Kingdom, there was a whole host of British politicians who admired Hitler’s strength and his power, for doing what Great Powers do, before the horrors of the Blitz and the Holocaust finally penetrated.

Putin has articulated an idea of there being a “Russky Mir” or a “Russian World.” The recent essay he published about Ukraine and Russia states the Ukrainian and Russian people are “one people,” a “yedinyi narod.” He’s saying Ukrainians and Russians are one and the same. This idea of a Russian World means re-gathering all the Russian-speakers in different places that belonged at some point to the Russian tsardom.

we are treading back through old historical patterns that we said that we would never permit to happen again

Our investments are not just boosting business profits, or Russia’s sovereign wealth funds and its longer-term development. They now are literally the fuel for Russia’s invasion of Ukraine.

If Western companies, their pension plans or mutual funds, are invested in Russia they should pull out. Any people who are sitting on the boards of major Russian companies should resign immediately. Not every Russian company is tied to the Kremlin, but many major Russian companies absolutely are, and everyone knows it.

our international allies, like Saudi Arabia, should be increasing oil production right now as a temporary offset. Right now, they are also indirectly funding war in Ukraine by keeping oil prices high.

India abstained in the United Nations, and you can see that other countries are feeling discomforted and hoping this might go away. This is not going to go away, and it could be “you next” — because Putin is setting a precedent for countries to return to the type of behavior that sparked the two great wars which were a free-for-all over territory. Putin is saying, “Throughout history borders have changed. Who cares?”

Ukraine has become the front line in a struggle, not just for which countries can or cannot be in NATO, or between democracies and autocracies, but in a struggle for maintaining a rules-based system in which the things that countries want are not taken by force. Every country in the world should be paying close attention to this. Yes, there may be countries like China and others who might think that this is permissible, but overall, most countries have benefited from the current international system in terms of trade and economic growth, from investment and an interdependent globalized world. This is pretty much the end of this. That’s what Russia has done.

What stops a lot of people from pulling out of Russia even temporarily is, they will say, “Well, the Chinese will just step in.” This is what every investor always tells me. “If I get out, someone else will move in.” I’m not sure that Russian businesspeople want to wake up one morning and find out the only investors in the Russian economy are Chinese, because then Russia becomes the periphery of China, the Chinese hinterlands, and not another great power that’s operating in tandem with China.

We keep thinking of World War I, World War II as these huge great big set pieces, but World War II was a consequence of World War I. And we had an interwar period between them. And in a way, we had that again after the Cold War. Many of the things that we’re talking about here have their roots in the carving up of the Austro-Hungarian Empire and the Russian Empire at the end of World War I. At the end of World War II, we had another reconfiguration and some of the issues that we have been dealing with recently go back to that immediate post-war period. We’ve had war in Syria, which is in part the consequence of the collapse of the Ottoman Empire, same with Iraq and Kuwait.

All of the conflicts that we’re seeing have roots in those earlier conflicts. We are already in a hot war over Ukraine, which started in 2014. People shouldn’t delude themselves into thinking that we’re just on the brink of something. We’ve been well and truly in it for quite a long period of time.

this is also a full-spectrum information war, and what happens in a Russian “all-of-society” war, you soften up the enemy. You get the Tucker Carlsons and Donald Trumps doing your job for you. The fact that Putin managed to persuade Trump that Ukraine belongs to Russia, and that Trump would be willing to give up Ukraine without any kind of fight, that’s a major success for Putin’s information war. I mean he has got swathes of the Republican Party — and not just them, some on the left, as well as on the right — masses of the U.S. public saying, “Good on you, Vladimir Putin,” or blaming NATO, or blaming the U.S. for this outcome. This is exactly what a Russian information war and psychological operation is geared towards. He’s been carefully seeding this terrain as well. We’ve been at war, for a very long time.

What Russia is doing is asserting that “might makes right.” Of course, yes, we’ve also made terrible mistakes. But no one ever has the right to completely destroy another country — Putin’s opened up a door in Europe that we thought we’d closed after World War II.

In broad terms the Green New Deal (GND) demands that we address first the global; second the differential impact of both historic and current climate change on different nations; and third, that we recognise the vital role of the state. It means wealth transfers to poor countries suffering the consequences of centuries of industrialisation in rich countries, and self-sufficiency in the provision of human needs, goods and services for their citizens. 

what can we, as citizens, do to prevent the restoration of a global financial system governed by volatile markets (the largest of which is the foreign exchange market), dominated by the US dollar and built on government debt? And what might it take to ensure that that system is governed by public, not private interests? 

Right now, the international system is scarcely a matter of public discourse. It is discussed in elite, niche, academic circles, but not sufficiently in trades unions, student groups, religious or community spaces. Instead, our collective focus has been relentlessly on domestic issues. That must change.

Both Corbyn and Sanders offered sound analysis, deep compassion and sincere solidarity to the victims of globalisation and climate breakdown. But they focused on domestic issues – health systems, affordable housing, nationalisation of the railways, kindness to the poor and homeless – and ignored the globalised financial infrastructure that makes reform of these sectors virtually impossible. 

to keep a nation’s monetary system in balance, we need ultimately to raise tax revenues to repay the initial finance – and not remain locked into a trillion-dollar government debt market. 

we cannot generate sufficient tax revenues in a world where money crosses borders more easily than people fleeing conflict. A world which enables Big Pharma and Silicon Valley companies to dodge taxes and lodge profits in tax havens. And we cannot fix health systems – or prevent climate collapse –  if globalised corporations outcompete local producers and manufacturers because the latter enjoy the massive tax breaks. 

As citizens we would not feel so powerless if we understood that the private, globalised financial system depends utterly on public, taxpayer-backed resources. Just look at the current crisis unfolding. Global markets, which we are often told are best left to their own devices, we discover with every crisis, are slavishly dependent on the largesse of publicly backed central banks, and in particular on the Federal Reserve.

Countries that lack a well-developed tax collection system lack the collateral needed for a strong central bank and sound currency. 

as taxpayers, we should set the conditions: that public resources should only be made available on terms that ensure the finance system is transformed into the role of servant, not master of the economy

“While administration officials could say they had imposed consequences on Assad’s regime for crossing the red line, they could not specific the nature of these consequences in any detail,” she writes. “Since even Assad didn’t know the particulars of the cost he would be bearing, he seemed unlikely to be deterred from carrying out further attacks.”

confronting ongoing or imminent atrocities can require quickly shifting perpetrators’ incentives. In the immediate aftermath of the Libyan protests, for instance, Power argues rapid, joint Security Council and American action “was probably the best example in history of governments hastily using a vast array of “tools in the toolbox” to try to deter atrocities.” But this proved insufficient: “The pressures that the United States and other countries were imposing on Qaddafi’s regime would take months to reach their full effect, and we had run out of further nonmilitary steps to take to try to affect the Libyan leader’s near-term calculus.”

the implicit promise of force underlies each alternative set of policies Power proposes. Actors who are willing to abandon mass atrocity campaigns voluntarily may be easily deterred — but actors committed to a mass atrocity campaign could find themselves diplomatically isolated, operating under economic sanction, or threatened by prosecution, and still continue to wage campaigns of death. “Stop this or else” undergirds threats when a powerful actor makes them. The toolbox’s logic is ultimately escalatory as a result: force is a tool of last resort, but no other tool works without the latent presence of American military force.

American military force underwrites other dimensions of statecraft, and mobilizes when other deterrent measures have failed. But the problem, then, is not simply, as her critics allege, that Samantha Power is a hawk, or that she doesn’t understand which conflicts constitute core American interests — the problem is that all deterrent models of atrocity prevention rest on the threat of force.

UN peacekeepers are the largest deployed force in conflict zones today; UN peacekeeping constitutes an enormous part of the Security Council’s agenda; the UN peacekeeping budget is separate from and larger than the UN’s operational budget; and a heated debate on the use of force by UN peacekeepers has now been running over twenty years. Peacekeeping is an effective tool that works best when it is all carrots and few sticks — but peacekeepers today are usually charged with protecting civilians under threat of imminent violence, as well. They rarely use force, and while they seem to protect civilians from rebels well, they struggle more to protect civilians from government forces.

Historically, when deterrence fails, the UN Security Council has outsourced this work — instead of sending in the Marines, for example, the UN instead turns to the French, as they did in the Central African Republic, or British Special forces, as they did in Sierra Leone, or — yes — NATO, as they did in the former Yugoslavia and then Libya.

discussions about US restraint are nearly entirely divorced from these extremely active debates about the use of force in UN peacekeeping — and considering the two together is instructive

a military with stunningly excess capability demands we continually interrogate its purpose; people who live under imminent threat of violence are not marginal to US foreign policy interests unless we define them that way; and the US outsources most conflict management to the UN system, which then relies on the military might of its member states to wield force in the places most dangerous for civilians

If unwilling actors cannot be swayed save by the use of force, and we are reluctant to use force for practical or ethical reasons, then we are left with two options: we can address the root causes of conflict, and we can help those refugees and internally displaced people who manage to escape violence. The first set of options requires reimagining the fundamental structures of foreign policy; the second set of options is currently so politically unpopular that it is remaking domestic politics across refugee-receiving countries

Sukarno, like many Indonesians, including the PKI, believed the creation of a Malaysian federation was unwarranted regional interference by the British to maintain their colonial dominance.

Like its US and Australian allies, Britain feared a communist Indonesia. The PKI had three million members and was close to Mao’s China. In Washington the fall of the Indonesia “domino” into the communist camp was seen as a greater threat than the potential loss of Vietnam.

Suharto, appointed supreme army commander on 14 October, used the rebellion to undermine and eventually overthrow Sukarno, and as what historian John Roosa has called a “pretext for mass murder”: the elimination of the PKI in a series of massacres across Indonesia that resulted in the deaths of hundreds of thousands of people.

British intelligence agencies and propaganda specialists were complicit, carrying out covert operations to undermine Sukarno’s regime and eliminate the PKI by blaming them for the Untung coup.

Reddaway had served in the army during the second world war before joining the Foreign Office and playing a key role in the establishment of IRD. After the failed Untung coup he arrived to take charge of the British operation. His brief was simple. In an interview in 1996 with two of the authors, he said he’d been given a budget of £100,000 by the Foreign Office and was told “to do anything I could do to get rid of Sukarno”. Only now do we know what “anything” fully meant.

“No, we do not cry out for violence,” the IRD propagandists wrote, “but we demand in the name of all patriotic people that this communist cancer be cut out of the body of the state.” The PKI “is now a wounded snake”, they wrote: “Now is the time to kill it before it has a chance to recover.”

Detailed historical research has established that the mass killings of PKI party members and alleged supporters appear to have been triggered by local army commanders or the arrival of army special forces, about three weeks after the botched coup had been put down by Suharto.During that period the media in Indonesia was full of black propaganda against the PKI and its alleged atrocities, as the army whipped up popular anger against communists and legitimised what Roosa has described as its “already-planned moves against the PKI and President Sukarno”.

The newsletters were approved by IRD in London before dispatch. Copies sent to senior Foreign Office officials were destroyed after reading at IRD’s request.

“Anyone who was leftist was picked up. They were very systematic. They targeted all the leftist groups and not just PKI. People kept themselves to themselves and only talked in whispers.”

As the massacres progressed in the autumn of 1965, IRD’s unit in Singapore reassured their readers as to the necessity of the slaughter.In Newsletter 21 they wrote: “Unless we maintain a vigorous campaign to eradicate communism … the red menace will envelop us again.”The stakes were life and death. “We are fighting for our lives and the very existence of Indonesia and we must never forget that. THE CATS ARE WAITING TO POUNCE!”In Newsletter 23 Winchester Road’s propagandists praised “the fighting services and the police” for “doing an excellent job”. Sukarno, then trying to restrain the generals, was wrong: “Communism must be abolished in all its forms. The work started by the army must be carried on and intensified.” The authors finished by equating the PKI to Hitler and Genghis Khan.

What Gilchrist wanted and what became the unit’s mission was the production of black propaganda, apparently produced by patriotic Indonesian émigrés abroad, to stir Indonesian anti-communists into action.The influential targets of a propaganda newsletter, according to a declassified report by Wynne, would eventually include “as many personages in the hierarchy of government, army and civil service as we can find”.To disguise the British origin of the newsletter it was sent into Indonesia via Asian cities including Hong Kong, Tokyo and Manila.

In the 1996 interviews Reddaway boasted of manipulating the British and other global media to take an anti- Sukarno and PKI line but insisted IRD only passed on true facts and did not use black propaganda.As ever with IRD, Reddaway told us a partial truth. According to a memo he had written: “The bludgeon was surprisingly effective because we were able … to supply publicists with information which they could not find from other sources because of Sukarno’s censorship.”

“GCHQ could break and read Indonesian codes without difficulty. The government was among many third world countries using equipment supplied by Swiss-based company Crypto AG. For over 50 years, Crypto AG supplied secretly sabotaged cypher machines, with built-in back doors to which the CIA and GCHQ had keys.”

The newsletters remained the core work of Ed Wynne and his colleagues in Winchester Road. A key theme was to encourage their influential readers to support the army’s campaign against the communists. They urged Indonesian patriots: “The PKI and all it stands for must be eliminated for all time.”We now know that to do that they included sensationalised lies. On 5 November the pro-military Jakarta Daily Mail claimed that on the day of the Untung coup 100 women from PKI’s Gerwani women’s organisation had tortured one of the generals using razor blades and knives to slash his genitals before he was shot.The story of the torture and mutilation of the generals by the Gerwani women became part of the founding myth of Suharto’s regime, used to justify the destruction of the PKI. It was also, according to Roosa, a pretext for murder. A lie propagated by the Indonesian army, regurgitated and repurposed to incite IRD’s influential readers.

The IRD was deliberately silent on the massacres. One document from December 1965 says they should “do nothing to embarrass the generals” and the newsletter carefully itemises accounts of isolated incidents of PKI brutality but makes no explicit mention of the army’s killings.

By early 1966 the mass murders in Indonesia, if not their scale, were well known.In January Robert F Kennedy compared the massacres to “inhuman slaughters perpetrated by the Nazis and the communists” and asked when people would “speak out … against the inhuman slaughter in Indonesia, where over 100,000 alleged communists have not been perpetrators, but victims?”

Wynne regarded the operation as a success. In his 1966 annual report he proudly says his operation was “fairly successful” because all his enemies (Konfrontasi, Sukarno, Subandrio and the PKI) were “destroyed”.

According to Prof Scott Lucas of the University of Birmingham, the declassified documents show that: “Britain was prepared to engage in dirty deeds which ran contrary to its purported values.” They reveal, he says, “how important black propaganda was to give the illusion that Britain could wield global power – even if many people might be killed for that illusion”.

The largest states in the world have the scale of empires but, Roberts suggests, they are a new breed. They are ‘superstates’, distinct from their neighbours ‘by expanse of territory, number and diversity of people, and social and economic complexity’. They aren’t quite empires and they aren’t all superpowers. Instead they represent a more recent development in a linear history: ‘The age of empires gave way to the age of states and next to the age of superstates.’

The main problem with the four superstate model is what to do about Russia. Roberts excludes what is territorially the biggest state in the world from his quadrumvirate because its population has collapsed and its economy is much smaller than that of the US, China or the EU. But India’s economy, too, is dwarfed by the others.

The EU has the dual distinction of being the only polity that is regularly referred to as a superstate and the only one that arguably shouldn’t be considered a state at all. Its economic power in the global system is undeniable, but in every other sense its power is much less certain. The EU’s formal structure, which seems to embody both postmodern technocratic management and premodern oligarchy, evades comparison

om Nairn argued that the EU suffers from a condition that also characterised the pre-First World War multinational empires: uneven development generates subtle forms of nationalist resistance which frustrate supranational designs. The EU has a fearsome border control agency, Frontex, but no central security apparatus. Can you have a superstate without an army, or rather an army of one’s own? The only centralised pan-European army is that of the United States, which has around a hundred thousand military personnel deployed across Europe.

The geographical division of the country remains an operative reality for alchemical electioneers, but talk of geographical divisions also serves as a convenient distraction from class divisions. Both Republican and Democratic administrations have talked of small government while increasing federal spending and the number of federal employees. But since the late 1970s they have succeeded in transferring trillions of dollars from the poor to the rich. One problem with calling the continental US a superstate is that it deliberately erases US overseas possessions – Guam, Puerto Rico etc. Another is that it distracts from the fact that so much of the energy of the US state apparatus is involved in its global posture.

Roberts stresses that empires need to justify themselves with a noble creed, both to propagandise to conquered peoples and to bolster the self-delusion of elite cadres. It’s easier to assert yourself if you’re convinced you’re bringing either civilisation or salvation.

All today’s superstates exhibit a resurgence of something like nationalism. China has Xi Jinping thought, India has Hindutva, US presidents will make America great again and the EU, according to Josep Borrell, is a garden surrounded by perilous jungle

Superstates or no, the five largest economies in the world are all either currently involved in a war, rearming, or making preparations.

surveillance techniques taught by the NSA were central to the UAE’s efforts to monitor opponents

Various reports have highlighted the ongoing cyber arms race in the Middle East, as the Emirates and other nations attempt to sweep up hacking weapons and personnel faster than their rivals. The Reuters investigation is the first to reveal the existence of Project Raven, providing a rare inside account of state hacking operations usually shrouded in secrecy and denials.

While this activity raises ethical dilemmas, U.S. national security lawyers say the laws guiding what American intelligence contractors can do abroad are murky. Though it’s illegal to share classified information, there is no specific law that bars contractors from sharing more general spycraft knowhow, such as how to bait a target with a virus-laden email.

The hacking of Americans was a tightly held secret even within Raven, with those operations led by Emiratis instead. Stroud’s account of the targeting of Americans was confirmed by four other former operatives and in emails reviewed by Reuters.

Stroud had already made the switch from government employee to Booz Allen contractor, essentially performing the same NSA job at higher pay. Taking a job with CyberPoint would fulfill a lifelong dream of deploying to the Middle East and doing so at a lucrative salary. Many analysts, like Stroud, were paid more than $200,000 a year, and some managers received salaries and compensation above $400,000.

Providing sensitive defense technologies or services to a foreign government generally requires special licenses from the U.S. State and Commerce Departments. Both agencies declined to comment on whether they issued such licenses to CyberPoint for its operations in the UAE. They added that human rights considerations figure into any such approvals.

“Some days it was hard to swallow, like [when you target] a 16-year-old kid on Twitter,” she said. “But it’s an intelligence mission, you are an intelligence operative. I never made it personal.”

the program took aim not just at terrorists and foreign government agencies, but also dissidents and human rights activists. The Emiratis categorized them as national security targets

the UAE has been accused of suppressing free speech, detaining dissidents and other abuses by groups such as Human Rights Watch. The UAE says it is working closely with Washington to fight extremism “beyond the battlefield” and is promoting efforts to counter the “root causes” of radical violence. Raven’s targets eventually would include militants in Yemen, foreign adversaries such as Iran, Qatar and Turkey, and individuals who criticized the monarchy, said Stroud and eight other former Raven operatives. Their accounts were confirmed by hundreds of Raven program documents reviewed by Reuters.

Reached by phone in London, Donaghy, now a graduate student pursuing Arab studies, expressed surprise he was considered a top national security target for five years. Donaghy confirmed he was targeted using the techniques described in the documents. “I’m glad my partner is sitting here as I talk on the phone because she wouldn’t believe it,” he said. Told the hackers were American mercenaries working for the UAE, Donaghy, a British citizen, expressed surprise and disgust. “It feels like a betrayal of the alliance we have,” he said.

Mansoor was convicted in a secret trial in 2017 of damaging the country’s unity and sentenced to 10 years in jail. He is now held in solitary confinement, his health declining, a person familiar with the matter said. Mansoor’s wife, Nadia, has lived in social isolation in Abu Dhabi. Neighbors are avoiding her out of fear security forces are watching. They are correct. By June 2017 Raven had tapped into her mobile device and given her the code name Purple Egret, program documents reviewed by Reuters show. To do so, Raven utilized a powerful new hacking tool called Karma, which allowed operatives to break into the iPhones of users around the world.

Karma was particularly potent because it did not require a target to click on any link to download malicious software. The operatives understood the hacking tool to rely on an undisclosed vulnerability in Apple’s iMessage text messaging software. In 2016 and 2017, it would be used against hundreds of targets across the Middle East and Europe, including governments of Qatar, Yemen, Iran and Turkey, documents show. Raven used Karma to hack an iPhone used by the Emir of Qatar, Sheikh Tamim bin Hamad al-Thani, as well as the phones of close associates and his brother.

Emirati security forces viewed human rights advocates as a major threat to “national stability,”

But a 2014 State Department agreement with CyberPoint showed Washington understood the contractors were helping launch cyber surveillance operations for the UAE. The approval document explains CyberPoint’s contract is to work alongside NESA in the “protection of UAE sovereignty” through “collection of information from communications systems inside and outside the UAE” and “surveillance analysis.”

“It was incredible because there weren’t these limitations like there was at the NSA. There wasn’t that bullshit red tape,”

Under DarkMatter, Project Raven continued to operate in Abu Dhabi from the Villa, but pressure escalated for the program to become more aggressive. Before long, senior NESA officers were given more control over daily functions, former Raven operatives said, often leaving American managers out of the loop. By mid-2016, the Emirates had begun making an increasing number of sections of Raven hidden from the Americans still managing day-to-day operations. Soon, an “Emirate-eyes only” designation appeared for some hacking targets.

Stroud began searching a targeting request list usually limited to Raven’s Emirati staff, which she was still able to access because of her role as lead analyst. She saw that security forces had sought surveillance against two other Americans. When she questioned the apparent targeting of Americans, she received a rebuke from an Emirati colleague for accessing the targeting list, the emails show. The target requests she viewed were to be processed by “certain people. You are not one of them,” the Emirati officer wrote.

Days later, Stroud said she came upon three more American names on the hidden targeting queue.

occupations were listed: journalist

When Stroud kept raising questions, she said, she was put on leave by superiors, her phones and passport were taken, and she was escorted from the building. Stroud said it all happened so quickly she was unable to recall the names of the three U.S. journalists or other Americans she came across in the files. “I felt like one of those national security targets,” she said. “I’m stuck in the country, I’m being surveilled, I can’t leave.” After two months, Stroud was allowed to return to America. Soon after, she fished out the business card of the FBI agents who had confronted her at the airport. “I don’t think Americans should be doing this to other Americans,” she told Reuters. “I’m a spy, I get that. I’m an intelligence officer, but I’m not a bad one.”

Niger has been a base of international military operations for years as Islamic extremists have greatly expanded their reach in the Sahel. Those include Boko Haram in neighboring Nigeria and Chad, but the more immediate threat comes from growing activity in Niger’s border areas with Mali and Burkina Faso from the Islamic State in the Greater Sahara and the al-Qaida affiliate Jama’at Nusrat al-Islam wal-Muslimin, known as JNIM.

Mali’s military junta last month ordered the 15,000-strong United Nations peacekeeping mission to leave, claiming they had failed in their mission. However, Wagner forces remain there, accused by watchdogs of human rights atrocities.

The United States in early 2021 said it had provided Niger with more than $500 million in military assistance and training programs since 2012, one of the largest such support programs in sub-Saharan Africa. The European Union earlier this year launched a 27 million-euro ($30 million) military training mission in Niger.

The U.S. has operated drones out of a base it constructed in Niger’s remote north as part of counterterrorism efforts in the vast Sahel. The fate of that base and other U.S. operational sites in the country after this week’s coup isn’t immediately known.

West Africa’s Sahel region has become one of the world’s deadliest regions for extremism. West Africa recorded over 1,800 extremist attacks in the first six months of this year, resulting in nearly 4,600 deaths, a top regional official told the United Nations Security Council this week.

Niger is one of the world’s poorest countries, struggling with climate change along with migrants from across West Africa trying to make their way across the Sahara en route toward Europe. It has received millions of euros of investment from the EU in its efforts to curb migration via smugglers.

The Observer last year revealed the IRD’s major campaign in Indonesia in 1965 that helped encourage anti-communist massacres which left hundreds of thousands dead. There, the IRD prepared pamphlets purporting to be written by Indonesian patriots, but in fact were created by British propagandists, calling on Indonesians to eliminate the PKI, then the biggest communist party in the non-communist world.

“The UK did not simply invent material, as the Soviets systematically did, but they definitely intended to deceive audiences in order to get the message across.”

“reports” sent to warn other governments, selected journalists and thinktanks about “Soviet subversion” or similar threats.The reports comprised carefully selected facts and analysis often gleaned from intelligence provided by Britain’s security services, but appeared to come from ostensibly independent analysts and institutions that were in reality set up and run by the IRD. One of the first of these, set up in 1964, was the International Committee for the Investigation of Communist Front Organisations.

In early 1963, the IRD forged a statement from the World Federation of Democratic Youth, a Soviet front organisation, which denounced Africans as uncivilised, “primitive” and morally weak. The forgery received press coverage across the continent, with many newspapers reacting intemperately.

The IRD also forged literature purporting to come from the Muslim Brotherhood, a mass Islamist organisation that had a significant following across the Middle East. One pamphlet accused Moscow of encouraging the 1967 war, criticised the quality of Soviet military equipment, and called the Soviets “filthy-tongued atheists” who saw the Egyptians as little more than “peasants who lived all their lives nursing reactionary Islamic superstitions”.AdvertisementThe IRD also created an entirely fictive radical Islamist organisation called the League of Believers, which attacked the Russians as non-believers and blamed Arab defeats on a lack of religious faith, a standard trope among religious conservatives at the time.

The IRD’s leaflets echoed other claims made by radical Islamists, arguing that military misdeeds should not be blamed on “the atheists or the imperialists or the Zionist Jews” but on “Egyptians who are supposed to be believers”.

Other material highlighted the poor view that Moscow took of the Palestine Liberation Organisation and the limited aid offered by the Soviets to Palestinian armed nationalist groups. This was contrasted with the more supportive stance of the Chinese, in a bid to widen the split between the two communist powers.

One major initiative focused on undermining Ian Smith’s regime in Rhodesia, the former colony that unilaterally declared its independence from the UK in 1965 in an attempt to maintain white minority rule.The IRD set up a fake group of white Rhodesians who opposed Smith. Its leaflets attacked him for lying, creating “chaos” and crippling the economy. “The whole world is against us … We must call a halt while we can still save our country,”

Between 1965 and 1972, the IRD forged at least 11 statements from Novosti, the Soviet state-run news agency. One followed Egypt’s defeat in the 1967 six-day war against Israel and underlined Soviet anger at Egypt’s “waste” of so much of the arms and materiel Moscow had supplied to the country.

A similar forgery in 1966 underlined the “backwardness” and “political immaturity” of Africa. Another, a statement purportedly from Novosti, blamed poor academic results at an international university in Moscow on the quality of the black African students enrolled there. The IRD sent more than 1,000 copies to addresses across the developing world.

As with most such efforts, the impact of the IRD’s campaigns was often difficult to judge. On one occasion, IRD officials were able to report that a newspaper in Zanzibar printed one of their forgeries about Soviet racism, and that the publication prompted an angry response. This was seen as a major achievement. Officials were also pleased when Kenyan press used fake material about the 1967 six-day war, and when newspapers across much of the Islamic world printed a fake Novosti bulletin on the conflict. Occasionally, western newspapers unwittingly used IRD materials, too.

Though the IRD was shut down in 1977, researchers are now finding evidence that similar efforts continued for almost another decade.“The [new documents] are particularly significant as a precursor to more modern efforts of putting intelligence into the public domain.“Liz Truss has a ’government information cell’, and defence intelligence sends out daily tweets to ‘pre-but’ Russian plots and gain the upper hand in the information war, but for much of the cold war the UK used far more devious means,” Cormac said.

Operators of hyperscale data centers, those with more than 5,000 servers, are migrating to places where water is plentiful, such as Norway, but also to drought-prone places like Italy and Spain where energy is cheaper—and where extreme heat is becoming the norm.

A survey conducted last year by the Uptime Institute, a consulting firm, found that only 39% of data centers even tracked their water use, a 12 percentage-point drop from 2021. Tech companies in the past have refused to disclose information about individual centers’ energy and water consumption, claiming that such data was a trade secret.

Over the last couple of years, Google, Meta and Microsoft have started publishing their total water use across their operations, but they don’t break the number down by business unit nor use standardized metrics. Bluefield Research has estimated data centers use more than a billion liters of water per day, including water used in energy generation.

Operators often use shell companies to apply for planning permissions, and a data center can look like any large warehouse or factory from the outside.

Arman Shehabi, a researcher at the Lawrence Berkeley National Laboratory in California best known for a landmark paper on energy consumption at data centers, thinks the facilities could contribute to scarcity as droughts become longer and more intense. Part of the problem, he says, is that data center operators “are generally the last ones to the table to ask,” straining the system by asking for access to scarce water after agricultural interests and local communities have already come up with a plan. “Everybody is going to feel that,” he says.

Companies say data centers are getting more energy-efficient, but the increase in overall demand for computing power is outpacing such gains.

The specialized chips required for AI—broadly known as accelerators—emit so much more heat than general-purpose chips do that data center operators are having to rethink their cooling systems entirely

over time data centers will need to radically change the way they dissipate heat. The gold standard, he says, is a process called immersive cooling, in which servers are bathed in a special fluid that transfers heat from the chips. For now, operators are likely to opt for a hybrid model, wherein a high-performance section of the data center will be liquid-cooled while the rest will continue to use air conditioning

Amazon Web Services, Google and Microsoft have all made water stewardship pledges, promising to use more nonpotable and recycled water and to replenish more water than they consume operationally by 2030. This is the equivalent to offsetting carbon by planting trees—something that looks good on paper but may not directly benefit the communities affected by data centers, because water may be replenished only in places where it’s easy to do so.

If an explicit goal to reduce inequality is not built into the global circular economy transition, then it is highly likely that these inequities will create a ‘circularity trade divide’, in which the gains accrued from circular trade are highly unevenly distributed between developed and least developed countries.

around 45 per cent of the total global value of trade in secondary goods and materials, waste and scrap occurs solely between high-income countries, compared with only about 1 per cent between low-income countries and middle- to high-income countries

countries in the Global South are often the final destination for internationally traded low-value or illegal waste

The circular trade divide, should it persist, will act as a significant barrier to a globally inclusive transition to a circular economy, and impede progress on the UN’s 2030 Agenda for Sustainable Development and Sustainable Development Goals (SDGs).

This paper sets out a framework for inclusive circular trade, intended to enable a more inclusive pathway for the circular economy transition. The framework was developed through the work of an alliance of organizations spanning Africa, Southeast Asia, Latin America and the Caribbean, and Europe.

Saudi Arabia accused Iran of sowing strife in its minority-Shiite communities, which have long complained of discrimination and neglect from authorities in Riyadh. A month after Nimr’s execution, the kingdom put 32 people on trial on charges of spying for Iran, including 30 Saudi Shiites. Fifteen were ultimately given death sentences.

Tensions reached new heights in 2019 after a wave of Houthi drone attacks on Saudi oil facilities, knocking out half of the kingdom’s oil output. At the time, U.S. officials said they believed the assault was launched from Iranian territory. Tehran denied involvement.

Yemen has enjoyed a rare reprieve from fighting since last April, when a United Nations-sponsored truce went into effect. Though the truce expired in October, the peace has largely held, and back-channel talks between the Houthis and the Saudis have resumed.Story continues below advertisementThese negotiations “are also a reflection of Saudi-Iranian rapprochement,” said Maysaa Shuja al-Deen, a senior researcher at the Sanaa Center for Strategic Studies.

The Yemeni Embassy in Washington responded defiantly to Friday’s announcement, tweeting that “The rogue Iranian regime is still sending lethal weapons to the terrorist Houthi militia in Yemen, and the Yemeni embassy in Tehran is still occupied.”

The Houthis, meanwhile, appeared to approve of the agreement. “The region needs the restoration of normal relations between its countries, so that the Islamic nation can recover its security lost as a result of foreign interventions,” spokesman Mohamed Abdel Salam tweeted.

Iran and Saudi Arabia had been exploring a rapprochement since 2021, participating in talks hosted by Iraq and Oman.

“Facing a dead end in nuclear negotiations with the United States, and shunned by the European Union because of its arms exports to Russia … Iran has scored a major diplomatic victory,” said Ali Alfoneh, a senior fellow at the Arab Gulf States Institute in Washington.

China’s well-publicized role in the deal was probably intended to send a message to major powers, including the United States, “that the hub for the Middle East is shifting,”

Beijing has largely avoided intervening politically in the Middle East, focusing instead on deepening economic ties. China is the largest importer of energy from the region, and “there is a lot of interest” among major players including Saudi Arabia and Iran in securing long-term access to Chinese markets

“China has truly arrived as a strategic actor in the Gulf,”

One point is inarguable: Many of these weapons did not remain long in government possession after arriving in their respective countries. In one of many examples, a 2007 Government Accountability Office report found that 110,000 Kalashnikov assault rifles and 80,000 pistols bought by the United States for Iraq’s security forces could not be accounted for — more than one firearm for every member of the entire American military force in Iraq at any time during the war. Those documented lapses of accountability were before entire Iraqi divisions simply vanished from the battlefield, as four of them did after the Islamic State seized Mosul and Tikrit in 2014, according to a 2015 Army budget request to buy more firearms for the Iraqi forces to replace what was lost.

According to its tally, the American military issued contracts potentially worth more than $40 billion for firearms, accessories and ammunition since Sept. 11, including improvements to the ammunition plants required to keep the cartridge production going. Most of these planned expenditures were for American forces, and the particulars tell the story of two wars that did not go as pitched. More than $4 billion worth of contracts was issued for small arms, including pistols, machines guns, assault rifles and sniper rifles, and more than $11 billion worth was issued for associated equipment, from spare machine-gun barrels to sniper-rifle scopes, according to Overton’s count. A much larger amount — nearly $25 billion — was issued for ammunition or upgrades to ammunition plants to keep those firearms supplied. That last figure aligns with what most any veteran of ground combat in Iraq and Afghanistan could tell you — American troops have been involved in a dizzying number of gunfights since 2001, burning through mountains of ammunition along the way.

In April, after being approached by The New York Times and reviewing data from Armament Research Services, a private arms-investigation consultancy, Facebook closed many pages in the Middle East that were serving as busy arms bazaars, including pages in Syria and Iraq on which firearms with Pentagon origins accounted for a large fraction of the visible trade

many new arms-trading Facebook pages have since cropped up, including, according to their own descriptions, virtual markets operating from Baghdad and Karbala

The American arming of Syrian rebels, by both the Central Intelligence Agency and the Defense Department, has also been troubled by questions of accountability and outright theft in a war where the battlefield is thick with jihadists aligned with Al Qaeda or fighting under the banner of the Islamic State.

The data show large purchases of heavy-machine guns and barrels. This is a wink at the shift in many American units from being foot-mobile to vehicular, as grunts buttoned up within armored trucks and needed turret-mounted firepower to defend themselves — a matériel adaptation forced by ambushes and improvised bombs, the cheaply made weapons that wearied the most expensive military in the world.

a startlingly risky aspect of the Pentagon’s arming of local forces with infantry arms: the wide distribution of anti-armor weapons, including RPG-7s, commonly called rocket-propelled grenades, and recoilless weapons, including the SPG-9. Each of these systems fires high-explosive (and often armor-piercing) projectiles, and each was commonly used by insurgents in attacks. After the opening weeks of each war, the only armor on either battlefield was American or associated with allied and local government units, which made the Pentagon’s practice of providing anti-armor weapons to Afghan and Iraqi security forces puzzling. Why would they need anti-armor weapons when they had no armor to fight? All the while rockets were somehow mysteriously being fired at American convoys and patrols in each war.

a portrait of the Pentagon’s bungling the already-awkward role it chose for itself — that of state-building arms dealer, a role that routinely led to missions in clear opposition to each other. While fighting two rapidly evolving wars, the American military tried to create and bolster new democracies, governments and political classes; recruit, train and equip security and intelligence forces on short schedule and at outsize scale; repair and secure transportation infrastructure; encourage the spread or restoration of the legal industry and public services; and leave behind something more palatable and sturdy than rule by thugs.

The procession of arms purchases and handouts has continued to this day, with others involved, including Iran to its allies in Iraq and various donors to Kurdish fighters. In March, Russia announced that it had given 10,000 Kalashnikov assault rifles to Afghanistan, already one of the most Kalashnikov-saturated places on earth. If an analysis from the United States’ Special Inspector General for Afghanistan Reconstruction, or Sigar, is to be believed, Afghanistan did not even need them. In 2014 the inspector general reported that after the United States decided to replace the Afghan Army’s Kalashnikovs with NATO-standard weapons (a boon for the rifles’ manufacturer with a much less obvious value for an already amply armed Afghan force), the Afghan Army ended up with a surplus of more than 83,000 Kalashnikovs. The United States never tried to recover the excess it had created, giving the inspector general’s office grounds for long-term worry. “Without confidence in the Afghan government’s ability to account for or properly dispose of these weapons,” it noted, “Sigar is concerned that they could be obtained by insurgents and pose additional risks to civilians.” Write A Comment

What to do? If past is precedent, given enough time one of the United States’ solutions will be, once again, to ship in more guns.

Oman is desperate to diversify away from its oil and gas dependency. Research by the US Energy Information Administration puts Oman’s known crude oil reserves at 5.6bn barrels. While this is only enough to rank the country 21st in the world, its economy is disproportionately dependent: oil and gas accounts for nearly half of the country’s GDP, 70% of exports and between 68% and 85% of government revenue.

“Several dozen new cities are being constructed in the Middle East, mainly to transition away from the petroleum industry to a variety of other industries, including tourism, manufacturing, education and hi-tech,” says Dr Sarah Moser, a McGill University geography professor and author of an upcoming atlas of new cities.

Duqm sits on the Arabian Sea near the Strait of Hormuz, the gateway to the Persian Gulf – and the world’s most glaring oil supply chokepoint. Nearly a fifth of the world’s oil currently flows through this passage, ever prone to disruption. If the Duqm project succeeds, the shipping industry would be able to dock at the gates of the Middle East without needing to go all the way inside.

attracted the attention of Beijing’s much heralded Maritime Silk Road. More than three-quarters of Oman’s crude oil exports go directly to China.

While Duqm was never very densely populated, around 3,000 Bedouin – mostly fishermen and semi-nomadic herders – called the area home before the bulldozers arrived. These villages have now been demolished and the Oman government has built a new, modern town for them to relocate to. The houses look as if they were copied and pasted from Muscat – bright, white buildings two storeys high with garages and ornate gateways. There is a mosque in the centre. The houses stand empty. The local Bedouin prefer their traditional way of life – and want space to keep camels.

Providing jobs is a good way to curry favor with local populations in places where the United States wants to maintain a military presence. Other foreign policy tools may not reach the right people. The well-known risk with foreign aid, for example, is that recipient regimes will divert it for their own purposes instead of investing in public goods. Contracting directly with local firms might help bypass corrupt governments. Subscribe Receive daily email updates: Subscribe to the Defense One daily. Be the first to receive updates. But there is a big problem with this seemingly sound logic: to date, there is no evidence that it works as promised.

By some estimates, ten percent of defense-related logistics contracts ended up in the hands of insurgents

The law limits the government’s ability to dictate the hiring of firms it does business with. This caused problems in Djibouti, where the United States has its only base in Africa, Camp Lemonnier. In 2013, the American company in charge of base support fired local Djiboutian employees in search of cheaper labor, despite a diplomatic understanding between the United States and Djibouti that the base would provide jobs for Djiboutians. Between the fallout and threat of hosting a Russian base, the Djiboutian government managed to hike Washington’s annual base rent from $30 million to $63 million.

Congress could make preferential procurement authorities conditional upon independently conducted studies of this spending’s effectiveness

First, we need to be able to answer questions such as: who is getting the business and how many jobs are created? That will enable systematic study of questions such as: what are the downstream effects on local markets? Do local jobs actually buy local goodwill?

New York, Los Angeles, and Miami have joined London as the world’s most desired destinations for laundered money. This boom has enriched the American elites who have enabled it—and it has degraded the nation’s political and social mores in the process. While everyone else was heralding an emergent globalist world that would take on the best values of America, Palmer had glimpsed the dire risk of the opposite: that the values of the kleptocrats would become America’s own. This grim vision is now nearing fruition

in the days after the Twin Towers collapsed, George W. Bush’s administration furiously scoured Washington for ideas to jam into the 342-page piece of legislation that would become the patriot Act. A sense of national panic created a brief moment for bureaucrats to realize previously shelved plans. Title III of the patriot Act, the International Money Laundering Abatement and Anti-terrorist Financing Act, was signed into law little more than a month after September 11

If a bank came across suspicious money transferred from abroad, it was now required to report the transfer to the government. A bank could face criminal charges for failing to establish sufficient safeguards against the flow of corrupt cash. Little wonder that banks fought fiercely against the imposition of so many new rules, which required them to bulk up their compliance divisions—and, more to the point, subjected them to expensive penalties for laxity

nestled in the patriot Act lay the handiwork of another industry’s lobbyists. Every House district in the country has real estate, and lobbyists for that business had pleaded for relief from the patriot Act’s monitoring of dubious foreign transactions. They all but conjured up images of suburban moms staking for sale signs on lawns, ill-equipped to vet every buyer. And they persuaded Congress to grant the industry a temporary exemption from having to enforce the new law.The exemption was a gaping loophole—and an extraordinary growth opportunity for high-end real estate. For all the new fastidiousness of the financial system, foreigners could still buy penthouse apartments or mansions anonymously and with ease, by hiding behind shell companies set up in states such as Delaware and Nevada. Those states, along with a few others, had turned the registration of shell companies into a hugely lucrative racket—and it was stunningly simple to arrange such a Potemkin front on behalf of a dictator, a drug dealer, or an oligarch. According to Global Witness, a London-based anti-corruption NGO founded in 1993, procuring a library card requires more identification in many states than does creating an anonymous shell company.

Foreign Account Tax Compliance Act (fatca), legislation with moral clout that belies its stodgy name. Never again would a foreign bank be able to hold American cash without notifying the IRS—or without risking a walloping fine.

As the Treasury Department put it in 2017, nearly one in three high-end real-estate purchases that it monitors involves an individual whom the government has been tracking as “suspicious.” Yet somehow the presence of so many shady buyers has never especially troubled the real-estate industry or, for that matter, politicians. In 2013, New York City’s then-mayor, Michael Bloomberg, asked, “Wouldn’t it be great if we could get all the Russian billionaires to move here?”

the aluminum magnate Oleg Deripaska, a character who has made recurring cameos in the investigation of Russian interference in the 2016 presidential election. The State Department, concerned about Deripaska’s connections to Russian organized crime (which he has denied), has restricted his travel to the United States for years. Such fears have not stood in the way of his acquiring a $42.5 million mansion on Manhattan’s Upper East Side and another estate near Washington’s Embassy Row.

In 2016, Barack Obama’s administration tested a program to bring the real-estate industry in line with the banks, compelling brokers to report foreign buyers, too. The ongoing program, piloted in Miami and Manhattan, could have become the scaffolding for a truly robust enforcement regime. But then the American presidency turned over, and a landlord came to power. Obama’s successor liked selling condos to anonymous foreign buyers—and may have grown dependent on their cash

Nationwide, nearly half of homes worth at least $5 million, the Times found, were bought using shell companies. The proportion was even greater in Los Angeles and Manhattan

Birkenfeld described how he had ensconced himself in the gilded heart of the American plutocracy, attending yacht regattas and patronizing art galleries. He would mingle with the wealthy and strike up conversation. “What I can do for you is zero,” he would say, and then pause before the punch line: “Actually, it’s three zeroes. Zero income tax, zero capital-gains tax, and zero inheritance tax.” Birkenfeld’s unsubtle approach succeeded wildly, as did his bank. As part of an agreement with the Justice Department, UBS admitted to hiding assets totaling some $20 billion in American money.

Around the time that Trump took up occupancy in the White House, the patriot Act’s “temporary” exemption for real estate entered its 15th year

While the U.S. can ask almost any other nation’s banks for financial information about American citizens, it has no obligation to provide other countries with the same. “The United States had bullied the rest of the world into scrapping financial secrecy,” Bullough writes, “but hadn’t applied the same standards to itself.” A Zurich-based lawyer vividly spelled out the consequences to Bloomberg: “How ironic—no, how perverse—that the USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour … That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”

The behavior of the American elite changed too. Members of the professional classes competed to sell their services to kleptocrats

“They don’t send lawyers to jail, because we run the country … We’re still members of a privileged class in this country.”

Once upon a time, it might have been possible to think of Manafort as a grubby outlier in Washington—the lobbyist with the lowest standards, willing to take on the most egregious clients. But Mueller has exposed just how tightly tethered Manafort’s work on behalf of Ukrainian kleptocrats was to Washington’s permanent elite. Manafort subcontracted some of his lobbying to the firm of Tony Podesta, arguably the most powerful Democratic influence-peddler of his generation. And Manafort employed Mercury Public Affairs, where he dealt with Vin Weber, a former Republican congressman and a former chairman of the National Endowment for Democracy

The perils of corruption were an obsession of the Founders. In the summer of 1787, James Madison mentioned corruption in his notebook 54 times. To read the transcripts of the various constitutional conventions is to see just how much that generation worried about the moral quality of public behavior—and how much it wanted to create a system that defined corruption more expansively than the French or British systems had, and that fostered a political culture with higher ethical ambitions

The defining document of our era is the Supreme Court’s Citizens United decision in 2010. The ruling didn’t just legalize anonymous expenditures on political campaigns. It redefined our very idea of what constitutes corruption, limiting it to its most blatant forms: the bribe and the explicit quid pro quo. Justice Anthony Kennedy’s majority opinion crystallized an ever more prevalent ethos of indifference—the collective shrug in response to tax avoidance by the rich and by large corporations, the yawn that now greets the millions in dark money spent by invisible billionaires to influence elections.

American collusion with kleptocracy comes at a terrible cost for the rest of the world. All of the stolen money, all of those evaded tax dollars sunk into Central Park penthouses and Nevada shell companies, might otherwise fund health care and infrastructure. (A report from the anti-poverty group One has argued that 3.6 million deaths each year can be attributed to this sort of resource siphoning.) Thievery tramples the possibilities of workable markets and credible democracy. It fuels suspicions that the whole idea of liberal capitalism is a hypocritical sham: While the world is plundered, self-righteous Americans get rich off their complicity with the crooks.

The Founders were concerned that venality would become standard procedure, and it has. Long before suspicion mounted about the loyalties of Donald Trump, large swaths of the American elite—lawyers, lobbyists, real-estate brokers, politicians in state capitals who enabled the creation of shell companies—had already proved themselves to be reliable servants of a rapacious global plutocracy

by the time Vladimir Putin attempted to influence the shape of our country, it was already bending in the direction of his