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In the era of the Sustainable Development Goals, local communities are almost always the lead development actor. In fact, a deeper examination of the goals’ underlying targets shows that almost 65 percent of them are supposed to be implemented by local governments. And yet the global financial architecture does not operate on that basis.

Around 80 percent of global GDP is already being generated in cities, while 68 percent of the total global population will be made up of urban residents by 2050, according to World Bank data

of the 1.4 billion-person increase in population projected to occur within developing countries by 2030, 96 percent are expected to live in urban areas. And 30 of the world’s 35 most rapidly growing cities are in the least-developed countries.

Relative to national governments, local governments are singularly positioned to advance projects to address climate change, including infrastructure projects for climate adaptation and resilience: They have the clearest understanding of local needs, they are able to convene local stakeholders to democratize the creation of a climate action plan, for example, and they can pass appropriate policies in much easier fashion than central governments.

cities are stuck between hoping that more money trickles down from the central government or accessing international credit. But in a nation-centric system, the second is often impossible

Under this nation-centric architecture, national debt determines whether cities can access international credit almost regardless of that city’s own debt profile

In Bangladesh, when cities were graded for credit at the local level, over a third of them attained a rating that was above investment grade. Yet those ratings make no difference, because Bangladeshi capital markets are not accessible by municipalities. The same is true for many cities in developing and least-developed countries, such as Kenya, Morocco, Botswana, and Indonesia.

between now and 2050, the urban population in sub-Saharan Africa is expected to more than triple, reaching approximately 1.3 billion people. Yet, barring fundamental changes, the region will likely lack the levels of capital investment necessary to finance development to support this population growth—including investment in infrastructure and urban planning, as well as commercial and residential real estate. If financing is not able to reach the local level, this will practically assure that the rise in urbanization in this part of the world, as well as others, will coincide with a rise in poverty—especially urban poverty and the growth of slums and unplanned communities—and its attendant consequences.

Urban areas can leverage their new capability and financial strength to help rural areas access international credit, whether by creating a pooled fund where urban and rural areas can issue a single bond or by collectively accessing thematic funds that focus on specific interests like climate change, women’s economic empowerment, or financial inclusion.

an independent municipal investment fund that will exclusively focus on delivering investment to local projects, notably in developing countries and particularly in the least-developed countries—the creation of which was supported by the United Nations Capital Development Fund, United Cities and Local Governments (an umbrella organization for local and regional governments around the world), and the Global Fund for Cities Development (their technical partner). The hope is that the successful investments will create demonstration effects that will incentivize public and private lenders to expand financing of the municipal finance space.

increase intracontinental trade—an area in which Africa lags far behind the other continents.

a new era in which the AU can finally leverage its collective economic clout in its political relationships with the rest of the world. Now is the time for African leaders to take stock of their existing relationships and examine whether they are helping the AU achieve its Agenda 2063 vision, a 50-year strategic plan with goals closely linked to the U.N. Sustainable Development Goals for 2030 that were adopted in 2015.

The 2019 Africa SDG Index finds that “Across the board, African countries perform comparatively well in terms of sustainable production and consumption as well as in climate action … but perform poorly in goals related to human welfare” such as poverty, hunger, and affordable and clean energy.

evidence that EU priorities for African development do not correspond to the continent’s areas of greatest need. The joint institution between the EU and the African, Caribbean, and Pacific countries for agricultural development ostensibly strives to “advance food security, resilience and inclusive economic growth in Africa, the Caribbean and the Pacific through innovations in sustainable agriculture,” yet the solutions it envisions would be marginal improvements, not transformational changes

Strengthening the value chains of small and medium-sized agribusinesses is desirable but not optimal, as it reinforces the existing trade dynamic of exporting raw materials to Europe. In sum, EU agricultural development policy is largely a neocolonial enterprise committed to protecting its own agricultural market and producing value-added goods for export; it is a greater vehicle for European soft power and merchant interests than for African capacity-building.

The current architecture through which EU institutions have in recent years provided about $6 billion in annual aid to Africa—its second-largest source of multilateral donations—also stunts African economic integration and divides the continent politically

the Emergency Trust Fund for Africa, which diverts 73 percent of the European Development Fund toward combating the European migration crisis at its external points of origin

participating in the African, Caribbean, and Pacific Group prevents Africa from working with Europe toward African-oriented solutions. Involvement in this top-down, donor-recipient framework deprives Africa of agency and leaves it vulnerable to its patron’s priorities

New European Commission President Ursula von der Leyen made a symbolically significant trip to AU Headquarters in Addis Ababa a week after taking office in December 2019. She came bearing a $188 million aid package for health programs, electoral systems, environmental policies, and economic development initiatives to buoy her message that the EU is going to be more than just a source of handouts from now on: “The African Union is a partner I count on and I look forward working within the spirit of a true partnership of equals.” If that sounds familiar, it’s because the EU has been deploying this flattering talking point of a “true partnership of equals” for more than a decade.

despite not wanting to talk about migration in Addis Ababa, von der Leyen is continuing the post-Cotonou negotiations that began in 2018—which inject aid conditioned on migration control as a central plank of the relationship between the EU and the African, Caribbean, and Pacific states

The AU and its members have other options. Both China and the United States offer models of development assistance that meet Africa’s development needs better than the European Union’s. The European Development Fund won’t vanish, and slow-growing Europe is ill-positioned to compete with China’s largesse on infrastructure projects.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Japan is 90 percent reliant on China for its graphite

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

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

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

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

As rich countries have been allowed to maintain their level of agricultural subsidies – which are mostly handed out to large producers, not family farms – developing countries have not been allowed under WTO rules to subsidise food production for domestic consumption to guarantee food security, nor to protect their farmers from unfair dumping.

subsidies for the environmentally damaging production of oil and gas remain undisciplined, while countries have successfully sued each other in the WTO for directing subsidies towards greener fuels, especially if they try to create jobs at the same time.

The environment has suffered as countries use environmental exploitation as a comparative advantage, and trade is responsible for a growing percentage of the greenhouse gases that contribute to climate change.

supporters of the WTO were able to get developing countries to agree to a new round of trade talks only by claiming it would be a “development” round – ie, one that put the needs of developing countries at its heart.  Since then, unfortunately, developed countries have never delivered on their promises to address the constraints that bad WTO rules put on development

most developing countries that have gained from trade have done so by exporting to China, whose growth is usually attributed to its divergences from the WTO model. 

At a time when most conversations regarding Big Tech are around the need for stronger antitrust and tax enforcement, and how their model of surveillance capitalism should not be allowed to shape the contours of our media, democracy, human rights, education and social relationships – or even how to break them up – they are working through the WTO, without public debate, to gain a new constitution that will consolidate their power and profits.

the problem with the dispute system is that it adjudicates according to a set of rules guided by corporate interests

The crisis is that people around the world have suffered through nearly 25 years of a damaging pro-corporate trade model, encapsulated by the WTO, and the domestic policies of austerity that have led to uprisings on four continents, mass migrations, and the election of right-wing governments in many countries.

We all need a global economy that facilitates decent jobs, access to affordable medicines, healthy food, and a thriving environment. Nearly all governments agreed to this mandate through the Sustainable Development Goals (SDGs) and Agenda 2030 in 2015. The rules of the global economy should be shaped around ensuring that trade can help achieve these goals, but at the minimum, it should not constrain governments from doing so.

The solution to the current conflicts on trade policy is not a false nationalism that nonetheless expands corporate control, nor a defence of the current failed corporate system. We need a wholly different system than that embodied in the WTO, just as the protesters clamoured for in Seattle 20 years ago. That will require a multilateral vision of ecological stability, shared prosperity, and leadership committed to that vision. Until then, we can expect more crises. 

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

All countries — especially G20 countries — that have submitted “updated” NDCs that were no more ambitious than their previous commitments, and countries that have not yet communicated new or updated NDCs at all, should update their NDCs and long-term strategies in a credible, ambitious manner

developed countries must lead on climate ambition — they are the laggards in living up to their climate promises despite their overwhelming contribution to the climate crisis

After COP26, it was noted “with deep regret” the failure of developed countries to meet the $100 billion goal they originally promised to achieve by 2020, feeding into the credibility gap and hamstringing the ability of developing countries to plan further climate action.

clear finance targets for mitigation, adaptation and loss and damage finance

$600 billion in climate finance from 2020-2025

The urgency for enhanced adaptation action is underscored by the IPCC Working Group II report, mentioned previously,  which finds that every tenth of a degree of additional warming will escalate threats to people, species and ecosystems. Yet many communities still lack the resources required to manage today’s climate change impacts, let alone worse impacts in the future.

countries must also prepare their National Adaptation Plans and Adaptation Communications

developed countries need to provide grant-based funding to finance adaptation plans, especially through the Adaptation Fund and other entities of the Financial Mechanism established under the UNFCCC.

despite an urgent plea from climate-vulnerable countries, the proposal for a new loss and damage financing facility was  rejected by developed nations. Instead, at COP26, countries established the Glasgow Dialogue to discuss possible arrangements for loss and damage funding, with the first discussion to be held in June 2022.

even the most effective adaptation measures cannot prevent all losses and damages, which are a present-day reality for vulnerable people in certain regions

Countries also made progress at COP26 on the operationalization and funding of the Santiago Network on Loss and Damage (SNLD), which aims to provide developing countries with technical assistance on how to address loss and damage in a robust and effective manner. Sufficient financing for the SNLD is crucial to ensure technical support for developing countries and to create a new method in encouraging technical assistance that is country-owned and emphasizes local expertise.

The first Global Stocktake process must be done in a way that is inclusive, raises awareness, ensures the meaningful participation of Global South organizations, and paves the way for a comprehensive outcome that promotes increased NDC ambition and is centered around equity. Additionally, the UN Secretary General should hold countries and non-state actors accountable to develop a robust accountability system for commitments made outside of the UNFCCC process.

Shortly after COP27, we will be more than a quarter of the way through the decisive decade — what will the world have to show for it? Now is the time for solidarity and ambitious, real, on-the-ground action and support that will deliver justice for vulnerable countries and communities. While realizing countries’ differentiated responsibilities and capacities, the world needs to be all in, all together on climate.

the planet could see a greater temperature increase in the next 50 years than it did in the last 6,000 years combined. By 2070, the kind of extremely hot zones, like in the Sahara, that now cover less than 1% of the earth’s land surface could cover nearly a fifth of the land, potentially placing 1 of every 3 people alive outside the climate niche where humans have thrived for thousands of years. Many will dig in, suffering through heat, hunger and political chaos, but others will be forced to move on

In Southeast Asia, where increasingly unpredictable monsoon rainfall and drought have made farming more difficult, the World Bank points to more than 8 million people who have moved toward the Middle East, Europe and North America. In the African Sahel, millions of rural people have been streaming toward the coasts and the cities amid drought and widespread crop failures. Should the flight away from hot climates reach the scale that current research suggests is likely, it will amount to a vast remapping of the world’s populations.

Drought helped push many Syrians into cities before the war, worsening tensions and leading to rising discontent; crop losses led to unemployment that stoked Arab Spring uprisings in Egypt and Libya; Brexit, even, was arguably a ripple effect of the influx of migrants brought to Europe by the wars that followed. And all those effects were bound up with the movement of just 2 million people. As the mechanisms of climate migration have come into sharper focus — food scarcity, water scarcity and heat — the latent potential for large-scale movement comes to seem astronomically larger.

Northern nations can relieve pressures on the fastest-warming countries by allowing more migrants to move north across their borders, or they can seal themselves off, trapping hundreds of millions of people in places that are increasingly unlivable. The best outcome requires not only goodwill and the careful management of turbulent political forces; without preparation and planning, the sweeping scale of change could prove wildly destabilizing. The United Nations and others warn that in the worst case, the governments of the nations most affected by climate change could topple as whole regions devolve into war

To better understand the forces and scale of climate migration over a broader area, The New York Times Magazine and ProPublica joined with the Pulitzer Center in an effort to model, for the first time, how people will move across borders

Our model projects that migration will rise every year regardless of climate, but that the amount of migration increases substantially as the climate changes. In the most extreme climate scenarios, more than 30 million migrants would head toward the U.S. border over the course of the next 30 years

If governments take modest action to reduce climate emissions, about 680,000 climate migrants might move from Central America and Mexico to the United States between now and 2050. If emissions continue unabated, leading to more extreme warming, that number jumps to more than a million people. (None of these figures include undocumented immigrants, whose numbers could be twice as high.)

As with much modeling work, the point here is not to provide concrete numerical predictions so much as it is to provide glimpses into possible futures. Human movement is notoriously hard to model, and as many climate researchers have noted, it is important not to add a false precision to the political battles that inevitably surround any discussion of migration. But our model offers something far more potentially valuable to policymakers: a detailed look at the staggering human suffering that will be inflicted if countries shut their doors.

the coronavirus pandemic has offered a test run on whether humanity has the capacity to avert a predictable — and predicted — catastrophe. Some countries have fared better. But the United States has failed. The climate crisis will test the developed world again, on a larger scale, with higher stakes

Climate is rarely the main cause of migration, the studies have generally found, but it is almost always an exacerbating one.

In the case of Addis Ababa, the World Bank suggests that in the second half of the century, many of the people who fled there will be forced to move again, leaving that city as local agriculture around it dries up.

North Africa’s Sahel provides an example. In the nine countries stretching across the continent from Mauritania to Sudan, extraordinary population growth and steep environmental decline are on a collision course. Past droughts, most likely caused by climate change, have already killed more than 100,000 people there. And the region — with more than 150 million people and growing — is threatened by rapid desertification, even more severe water shortages and deforestation. Today researchers at the United Nations estimate that some 65% of farmable lands have already been degraded. “My deep fear,” said Solomon Hsiang, a climate researcher and economist at the University of California, Berkeley, is that Africa’s transition into a post-climate-change civilization “leads to a constant outpouring of people.”

The story is similar in South Asia, where nearly one-fourth of the global population lives. The World Bank projects that the region will soon have the highest prevalence of food insecurity in the world. While some 8.5 million people have fled already — resettling mostly in the Persian Gulf — 17 million to 36 million more people may soon be uprooted, the World Bank found. If past patterns are a measure, many will settle in India’s Ganges Valley; by the end of the century, heat waves and humidity will become so extreme there that people without air conditioning will simply die.

We are now learning that climate scientists have been underestimating the future displacement from rising tides by a factor of three, with the likely toll being some 150 million globally. New projections show high tides subsuming much of Vietnam by 2050 — including most of the Mekong Delta, now home to 18 million people — as well as parts of China and Thailand, most of southern Iraq and nearly all of the Nile Delta, Egypt’s breadbasket. Many coastal regions of the United States are also at risk.

rough predictions have emerged about the scale of total global climate migration — they range from 50 million to 300 million people displaced — but the global data is limited, and uncertainty remained about how to apply patterns of behavior to specific people in specific places.

Once the model was built and layered with both approaches — econometric and gravity — we looked at how people moved as global carbon concentrations increased in five different scenarios, which imagine various combinations of growth, trade and border control, among other factors. (These scenarios have become standard among climate scientists and economists in modeling different pathways of global socioeconomic development.)

every one of the scenarios it produces points to a future in which climate change, currently a subtle disrupting influence, becomes a source of major disruption, increasingly driving the displacement of vast populations.

Around 2012, a coffee blight worsened by climate change virtually wiped out El Salvador’s crop, slashing harvests by 70%. Then drought and unpredictable storms led to what a U.N.-affiliated food-security organization describes as “a progressive deterioration” of Salvadorans’ livelihoods.

climate change can act as what Defense Department officials sometimes refer to as a “threat multiplier.”

For all the ways in which human migration is hard to predict, one trend is clear: Around the world, as people run short of food and abandon farms, they gravitate toward cities, which quickly grow overcrowded. It’s in these cities, where waves of new people stretch infrastructure, resources and services to their limits, that migration researchers warn that the most severe strains on society will unfold

the World Bank has raised concerns about the mind-boggling influx of people into East African cities like Addis Ababa, in Ethiopia, where the population has doubled since 2000 and is expected to nearly double again by 2035

now a little more than half of the planet’s population lives in urban areas, but by the middle of the century, the World Bank estimates, 67% will. In just a decade, 4 out of every 10 urban residents — 2 billion people around the world — will live in slums

Migration can bring great opportunity not just to migrants but also to the places they go

High emissions, with few global policy changes and relatively open borders, will drive rural El Salvador — just like rural Guatemala — to empty out, even as its cities grow. Should the United States and other wealthy countries change the trajectory of global policy, though — by, say, investing in climate mitigation efforts at home but also hardening their borders — they would trigger a complex cascade of repercussions farther south, according to the model. Central American and Mexican cities continue to grow, albeit less quickly, but their overall wealth and development slows drastically, most likely concentrating poverty further. Far more people also remain in the countryside for lack of opportunity, becoming trapped and more desperate than ever.

By midcentury, the U.N. estimates that El Salvador — which has 6.4 million people and is the most densely populated country in Central America — will be 86% urban

Most would-be migrants don’t want to move away from home. Instead, they’ll make incremental adjustments to minimize change, first moving to a larger town or a city. It’s only when those places fail them that they tend to cross borders, taking on ever riskier journeys, in what researchers call “stepwise migration.” Leaving a village for the city is hard enough, but crossing into a foreign land — vulnerable to both its politics and its own social turmoil — is an entirely different trial.

I arrived in Tapachula five weeks after the breakout to find a city cracking in the crucible of migration. Just months earlier, passing migrants on Mexico’s southern border were offered rides and tortas and medicine from a sympathetic Mexican public. Now migrant families were being hunted down in the countryside by armed national-guard units, as if they were enemy soldiers.

Models can’t say much about the cultural strain that might result from a climate influx; there is no data on anger or prejudice. What they do say is that over the next two decades, if climate emissions continue as they are, the population in southern Mexico will grow sharply. At the same time, Mexico has its own serious climate concerns and will most likely see its own climate exodus. One in 6 Mexicans now rely on farming for their livelihood, and close to half the population lives in poverty. Studies estimate that with climate change, water availability per capita could decrease by as much as 88% in places, and crop yields in coastal regions may drop by a third. If that change does indeed push out a wave of Mexican migrants, many of them will most likely come from Chiapas.

even as 1 million or so climate migrants make it to the U.S. border, many more Central Americans will become trapped in protracted transit, unable to move forward or backward in their journey, remaining in southern Mexico and making its current stresses far worse.

Already, by late last year, the Mexican government’s ill-planned policies had begun to unravel into something more insidious: rising resentment and hate. Now that the coronavirus pandemic has effectively sealed borders, those sentiments risk bubbling over. Migrants, with nowhere to go and no shelters able to take them in, roam the streets, unable to socially distance and lacking even basic sanitation. It has angered many Mexican citizens, who have begun to describe the migrants as economic parasites and question foreign aid aimed at helping people cope with the drought in places where Jorge A. and Cortez come from.

a new Mexico-first movement, organizing thousands to march against immigrants

Trump had, as another senior government official told me, “held a gun to Mexico’s head,” demanding a crackdown at the Guatemalan border under threat of a 25% tariff on trade. Such a tax could break the back of Mexico’s economy overnight, and so López Obrador’s government immediately agreed to dispatch a new militarized force to the border.

laying blame at the feet of neoliberal economics, which he said had produced a “poverty factory” with no regional development policies to address it. It was the system — capitalism itself — that had abandoned human beings, not Mexico’s leaders. “We didn’t anticipate that the globalization of the economy, the globalization of the law … would have such a devastating effect,”

No policy, though, would be able to stop the forces — climate, increasingly, among them — that are pushing migrants from the south to breach Mexico’s borders, legally or illegally. So what happens when still more people — many millions more — float across the Suchiate River and land in Chiapas? Our model suggests that this is what is coming — that between now and 2050, nearly 9 million migrants will head for Mexico’s southern border, more than 300,000 of them because of climate change alone.

“If we are going to die anyway,” he said, “we might as well die trying to get to the United States.”

The world can now expect that with every degree of temperature increase, roughly a billion people will be pushed outside the zone in which humans have lived for thousands of years

Without a decent plan for housing, feeding and employing a growing number of climate refugees, cities on the receiving end of migration can never confidently pilot their own economic future.

The United States refused to join 164 other countries in signing a global migration treaty in 2018, the first such agreement to recognize climate as a cause of future displacement. At the same time, the U.S. is cutting off foreign aid — money for everything from water infrastructure to greenhouse agriculture — that has been proved to help starving families like Jorge A.’s in Guatemala produce food, and ultimately stay in their homes. Even those migrants who legally make their way into El Paso have been turned back, relegated to cramped and dangerous shelters in Juárez to wait for the hearings they are owed under law.

There is no more natural and fundamental adaptation to a changing climate than to migrate. It is the obvious progression the earliest Homo sapiens pursued out of Africa, and the same one the Mayans tried 1,200 years ago. As Lorenzo Guadagno at the U.N.’s International Organization for Migration told me recently, “Mobility is resilience.” Every policy choice that allows people the flexibility to decide for themselves where they live helps make them safer.

what may be the worst-case scenario: one in which America and the rest of the developed world refuse to welcome migrants but also fail to help them at home. As our model demonstrated, closing borders while stinting on development creates a somewhat counterintuitive population surge even as temperatures rise, trapping more and more people in places that are increasingly unsuited to human life

the global trend toward building walls could have a profound and lethal effect. Researchers suggest that the annual death toll, globally, from heat alone will eventually rise by 1.5 million. But in this scenario, untold more will also die from starvation, or in the conflicts that arise over tensions that food and water insecurity will bring

America’s demographic decline suggests that more immigrants would play a productive role here, but the nation would have to be willing to invest in preparing for that influx of people so that the population growth alone doesn’t overwhelm the places they move to, deepening divisions and exacerbating inequalities.

At the same time, the United States and other wealthy countries can help vulnerable people where they live, by funding development that modernizes agriculture and water infrastructure. A U.N. World Food Program effort to help farmers build irrigated greenhouses in El Salvador, for instance, has drastically reduced crop losses and improved farmers’ incomes. It can’t reverse climate change, but it can buy time.

Thus far, the United States has done very little at all. Even as the scientific consensus around climate change and climate migration builds, in some circles the topic has become taboo. This spring, after Proceedings of the National Academy of Sciences published the explosive study estimating that, barring migration, one-third of the planet’s population may eventually live outside the traditional ecological niche for civilization, Marten Scheffer, one of the study’s authors, told me that he was asked to tone down some of his conclusions through the peer-review process and that he felt pushed to “understate” the implications in order to get the research published. The result: Migration is only superficially explored in the paper.

Our modeling and the consensus of academics point to the same bottom line: If societies respond aggressively to climate change and migration and increase their resilience to it, food production will be shored up, poverty reduced and international migration slowed — factors that could help the world remain more stable and more peaceful. If leaders take fewer actions against climate change, or more punitive ones against migrants, food insecurity will deepen, as will poverty. Populations will surge, and cross-border movement will be restricted, leading to greater suffering. Whatever actions governments take next — and when they do it — makes a difference.

El Paso is also a place with oppressive heat and very little water, another front line in the climate crisis. Temperatures already top 90 degrees here for three months of the year, and by the end of the century it will be that hot one of every two days. The heat, according to researchers at the University of California, Berkeley, will drive deaths that soon outpace those from car crashes or opioid overdoses. Cooling costs — already a third of some residents’ budgets — will get pricier, and warming will drive down economic output by 8%, perhaps making El Paso just as unlivable as the places farther south.

“If we don’t develop a different attitude,” he said, “we’re going to be like people in the lifeboat, beating on those that are trying to climb in.”

public officials and leaders of government-aligned militias such as Mohammed and Farhad are forbidden by law to hold mineral rights.

Bush administration Deputy Secretary of Defense Paul Wolfowitz, an architect of the Iraq invasion, and other U.S. defense officials also joined the SOSi board

Task Force officials remained bullish on strategic mining long after the project was closed down; some even saw it as a possible form of Taliban rehabilitation. “The only way to realistically economically reintegrate the Taliban back into Afghanistan’s economy is with mining,” Emily Scott King, the former director of the Task Force’s natural resource group, said in 2019 at a special operations policy forum in Washington, D.C. “It can work within the hierarchy that the Taliban is used to, with commanders running small processing facilities or becoming the brokers for small miners.”

SOSi’s transition to a military contracting powerhouse came through its connections to the office of retired Army General David Petraeus

“There’s no conceivable way extraction or export could be done without the collusion of insurgent groups,”

Beyond its powerful American connections, SOSi was well positioned for growth because it wasn’t afraid to get dirty. In his thesis, Hartwig recommended offering the Afghan government “some type of benefit” to win support from “key leaders” for future mineral projects. Through its subsidiary, that is exactly what SOSi did, apparently cutting the president’s brother in on the deal.

“The U.S. government cannot directly do business with Afghan companies, so it goes through SOSi, a private entity, to secure deals with all the major Afghan media networks to broadcast Resolute Support and NATO communication material,”

A Southern Development document on file in the Ras al-Khaimah Offshore Free Zone, the secretive United Arab Emirates jurisdiction where its full ownership records are held, confirms that on June 17, 2014 — three days after Ashraf Ghani was elected president — SOSi owned 80 percent of the company, with Hashmat Ghani owning the remainder

Hashmat Ghani’s son, Sultan Ghani, listed a short SOSi internship in 2013 on his resume. Sultan Ghani now runs The Ghani Group, the family’s privately owned conglomerate with interests that include mining and military contracting. He apparently keeps in touch with old friends at SOSi. A photo uploaded to LinkedIn during the summer of 2019 shows him meeting with SOSi Vice President Helmick, and the account features praise for his interpersonal skills posted by another SOSi executive

Buying chromite from unlicensed local mines remains illegal in Afghanistan, but Ashraf Ghani’s election opened a rich new vein of opportunity. While the American Task Force and his own son once urged legalization of artisanal mining, the president has instead redistributed bureaucratic power, enabling extralegal activities.

A document leaked to OCCRP reveals that on December 26, 2019, the High Economic Council, in a process overseen by the president, authorized Southern Development to take on a project far larger than the original task force project in Kunar. The company received a mineral processing permit and permission to purchase artisanal chromite in six Afghan provinces: Khost, Paktia, Paktika, Kunar, Ghazni and Maidan Wardak.

In the spring of 2018, more than a year before Afghanistan’s High Economic Council signed over the rights to the chromite, Southern Development’s Kabul office had imported new crushing equipment from South Africa for its Afghan operation. In fact, Global Venture and its consultants, according to Scott King, had since 2013 been “advising private sector investors” with mining interests in Afghanistan about how to “quietly” restart initiatives like the Kunar chromite project. At the same 2019 Special Operations forum, she highlighted a mysterious $10 million investment into what she claimed were “legal” Afghan chromite mines.

Until late 2019, the company falsely claimed to have won chromite exploration rights in Kabul province from Afghanistan’s Ministry of Mines and Petroleum. The claim disappeared from the website after reporters asked about it.

Mining takes time to generate profits and it’s unclear if SOSi has started to see a return on its investments yet, but the price of chromite ore hovers around $200 per ton and with a worldwide market for stainless steel, Southern Development could become highly profitable. Meanwhile, its success is already spawning copycats.

Another American military contractor, DGCI, which is under federal investigation for its work in Iraq and Afghanistan, hired another former Task Force staffer in 2019, in an ultimately unsuccessful attempt to mine lithium in Afghanistan’s Ghazni province. Since then, DGCI has also tried to cultivate a relationship with the Ghani family, holding public charity events with Sultan Ghani.

In South Africa, one of the hardest-hit countries on the continent by the pandemic, a mutated and more transmissible variant of the virus emerged less than two months ago, leading to a massive spike in both the number of cases and deaths.

Experts and humanitarian workers fear that even as high-income countries in the developed world get a handle on cases and begin distributing vaccines, poorer and developing countries in Africa will be left behind.

Data from the Africa Centres for Disease Control and Prevention released on Tuesday shows that the African continent has tracked more than 3.6 million COVID-19 cases and some 91,500 deaths. That number is expected to increase further in the coming weeks.

Last month, then-U.S. Ambassador to South Africa Lana Marks announced that she had spent 10 days in an intensive care unit after developing COVID-19 in late December. Marks, a luxury handbag designer and Trump political appointee, drew fire from embassy staff last March when she returned to the country and did not self-isolate after attending an event at the former president’s Mar-a-Lago resort despite some attendees later testing positive for COVID-19. 

South Africa has a highly developed health care system, but in poorer countries in the region embassies are relying on medical evacuation to deal with severe cases. One official in the region said medical evacuations have been taking 48 to 72 hours, adding, “In terms of COVID, that could be a death sentence.”

According to an internal USAID memo, patients in Eswatini, which borders South Africa, were dying due to a lack of oxygen supplies

“Current global warming is the result of emissions from both the recent and more distant past.”

the so-called modern state—which, then, is imperial as much as national. The racialized hierarchies of empire defined the broader polity beyond the nation-state and, after decolonization, have continued to construct inequalities of citizenship within states that have only recently become national.

Scholars and practitioners of international relations must take seriously the colonial histories that were constitutive of the formation of modern states

there is no historical evidence that Western presence has ever enhanced the well-being of the previously colonized world. It took me a solid decade—and exposure to post- and decolonial approaches—to change my doctoral research question from: “When do Western actors not show up?” to “Should they be there in the first place?”

democratic governance from India to South Africa to the American South has emerged principally through the activism and agency of subaltern populations—those subjected to the hegemony of a more powerful class or group, especially colonial subjects, and those victimized by anti-Black racism and other forms of discrimination.

the global subalterns and historically marginalized peoples are the ones who have pushed the international system to adopt whatever level of democratic governance exists

The subalterns have had to rectify the contradictions of global liberalism by transforming the idea of freedom for some into the practice of freedom for all.

it is clear that many pre-colonial African polities’ activities had important international implications

International relations that do not reproduce the logic of colonialism must instead engage with ideas of repair, dignity, and even retreat.

Taking the problem of racism seriously in the field of IR means viewing it not merely as an issue of stereotypes or cultural insensitivities, but as a colonial technology of life and premature death built on ideologies of whiteness and white supremacy

The scholarly imperative is to study and question the current international system built on racial capitalism, and to imagine alternatives

race almost always operates in conjunction with other categories—such as caste, class, civilization, and, in today’s context, the racialized Muslim. The challenge for IR is to find a new language that is not confined to just one master concept or one corner of the world.

IR was born in the age of empire, and for the first few decades of its history it was explicitly occupied with questions of colonial administration and the justification of racial supremacy

Race was often viewed as the basic unit of politics—more fundamental than state, society, nation, or individual.

Though the most extravagant versions of Anglo-utopianism were exhausted by the mid-20th century, the idea that the “English-speaking peoples” are destined to play a leading role in shaping world politics has proved remarkably durable. It has resurfaced in assorted conservative visions of the so-called Anglosphere and in projects for reorienting Britain’s post-Brexit foreign policy.

the majority of what students read about in IR continues to be written by a minority of the world’s people. The presumption that all worthwhile ideas originated in the West is not only exclusionary but false

Feminist foreign policy often allows wealthy countries to focus attention on the plight of women in countries with developing economies. Wealthier countries, or developed economies, then position themselves as being better placed to respond to the challenges around gender discrimination.

A country with a feminist foreign policy often invokes its own experiences as good practice elsewhere. Yet gender discrimination is universal, and often members of minority groups within the developed economies are significantly disadvantaged by endemic racism and xenophobia

A different way of doing foreign policy that is people-led rather than state-led and emphasizes solidarity over interest is the only means toward justice for all.

what the world is witnessing today could be the third phase of cultural encounters. The pretention of Western culture to universal validity is being challenged from the angles of cultural relativism (what is valid in one society in the West was not valid in another); historical relativism (what was valid in the West at the beginning of the 20th century was not valid in the West at the beginning of the 21st); and empirical relativism (the West often failed to live up to its own standards, and occasionally those standards were better met by other societies).

This is the era of the West on the defensive.

The COVID-19 pandemic and the global protests against police brutality demonstrate that, first, the challenges to humanity transcend the territoriality of the state and the parochialism of race and, second, a transnational, if rudimentary, convergence of political sensibilities may be emerging at the grassroots level. For many around the world, the moral disease of racism needs to be confronted as vehemently as the physical disease now sweeping around the globe.

shared sensibilities could, in the long run, become a catalyst for something bigger: the creation of a truly global village that is based not on cultural hierarchy but on what Mazrui called cultural ecumenicalism—a combination of a global pool of achievements with local pools of distinctive innovation and tradition

According to New York Times reporter Thanassis Cambanis, IS  left the staff at the Tabqa Dam unharmed and in place, allowing the facility to continue operations and even selling electricity back to the Syrian government. Similarly, oil fields under IS  control continue to pump. Indeed, IS  has shrewdly managed these resources to help ensure a steady and sustainable stream of revenue. As one IS fighter told the New York Times, while Assad’s loyalists chant “Assad or burn the country,” IS retorts “We will burn Assad and keep the country.” Beside revenue from oil and water, IS  collects a variety of commercial taxes, including on trucks and cellphone towers.

Whereas resources like diamonds or drugs motivate rebel forces to take as much as they can as quickly as they can, the need to manage capital and technology-intensive natural resources has actually increased the interdependence between IS and civilians. Already in effective control of significant amounts of oil and water, the Islamic State is one step closer to becoming a reality.

U.N. relief officials and aid organizations are bracing for what they fear could be a cataclysmic second phase of the pandemic: spreading in the close-quarters encampments of the world’s more than 25 million refugees and another 40 million internally displaced people.

More than 3 billion people lack access to hand-washing facilities, depriving them of one of the most effective first lines of defense against the spread of the coronavirus, according to UNICEF

the effort to ramp up an international aid response is being hampered by the quest to ensure the safety of international staff. Those concerns have been amplified by the announcement last week that David Beasley, the executive director of the Rome-based World Food Program, had been infected with the coronavirus. Some international relief agencies have recalled senior field officers, fearing they could be infected.

Konyndyk, who worked on the response to the Ebola epidemic in West Africa for the U.S. Agency for International Development, said that U.N. and relief agencies are having to balance ensuring the health of their own staff with delivering care to needy communities.

“You would have a hard time designing a more dangerous setting for the spread of this disease than an informal IDP settlement,” he said. “You have a crowded population, very poor sanitation … very poor disease surveillance, very poor health services. This could be extraordinarily dangerous … and I don’t think that’s getting enough global attention yet.”

In conflict-riven countries from Afghanistan to South Sudan to Yemen, dismal health care infrastructures are already overburdened after years of fighting

After five years of war, with millions of people on the brink of famine, Yemen’s population is more vulnerable to a coronavirus outbreak than those of most other countries. The conflict has left most of the country’s population effectively immunocompromised,

“For many population groups, living in overcrowded conditions, social distancing is a challenge or impossible,” according to the Assessment Capacities Project report. Many countries that host refugee camps, such as Afghanistan and Bangladesh, are likely to be overwhelmed by the health needs of their own citizens. Nations with weak health systems “may struggle to screen, test, and contain the epidemic for the host population let alone the refugees,”

In Gaza, the U.N. Relief and Works Agency (UNRWA), which provides primary care for about 70 percent of the territory’s more than 1.8 million people, is bracing for the likely arrival of the coronavirus in one of the most densely populated place in the world. The U.N. agency—which the Trump administration defunded last year and has sought to dismantle—has some 22 medical clinics in Gaza, putting it on the front lines of the defense of the coronavirus.

“I’m told that there are 60 ICU beds in the hospitals,” Matthias Schmale, the director of Gaza’s UNRWA operations, told Foreign Policy. “If there is a full-scale outbreak the hospital sector won’t cope.”

The leaders of major relief organizations are pressing donors to grant them greater flexibility to redirect funding from existing programs that are likely to be paralyzed by the pandemic and use that money for programs—including clean water and sanitation projects—that could help stem the crisis.

“As bad as it is now in the well-organized and affluent north, with health systems, good sanitation, and big infrastructure, imagine how it will be when it will hit crowded camps with refugees and displaced people,” said Egeland, who spoke by telephone from quarantine in Norway.

sweeping U.S. and U.N. economic sanctions imposed on governments in Iran, North Korea, and Venezuela are hampering relief efforts.

Egeland acknowledged that most U.N. sanctions regimes, including those for Iran and North Korea, include exemptions for the import of humanitarian goods. But the sanctions have scared financial institutions from providing vital financial services to relief agencies. “Not a single bank had the guts to transfer money, because they were all afraid to be sued by the U.S. government,”

The World Health Organization announced earlier this year that more than $675 million will be required through April—including $61 million for its own activities—to mount an international campaign against the virus. Though WHO’s Director-General Tedros Adhanom Ghebreyesus said recently that more money would be needed. On Feb. 17, UNICEF issued an urgent request for $42.3 million to support the coronavirus response. It will be used to reduce transmission of the virus by promoting distance learning for kids who can’t attend school and public information aimed at shooting down misinformation.

Guterres, meanwhile, expressed concern that the pandemic could claw back decades of efforts to raise international health standards and to scale back the most extreme levels of poverty, and undercut U.N. sustainable development goals, which are designed to improve the standard of living around the world by the year 2030.

“COVID-19 is killing people, as well as attacking the real economy at its core—trade, supply chains, businesses, jobs,” Guterres said. “Workers around the world could lose as much as $3.4 trillion.”

“We need to focus on people—the most vulnerable, low-wage workers, small and medium enterprises,” Guterres said. “That means wage support, insurance, social protection, preventing bankruptcies and job loss. That also means designing fiscal and monetary responses to ensure that the burden does not fall on those who can least afford it. The recovery must not come on the backs of the poorest—and we cannot create a legion of new poor. We need to get resources directly into the hands of people.”

AGRA, initiated in 2006, heralded a new campaign to bring the kind of input-intensive agriculture to Africa that had failed to take hold on the continent when the first Green Revolution swept through much of Asia and Latin America in the 1960s and 1970s.

AGRA worked with governments to speed the development of high-yield commercial seeds designed for Africa’s wide range of soils and climates and to facilitate the delivery to farmers of those seeds and the inorganic fertilizers that would make them grow.

Many warned that it was seeking to impose Western technologies inappropriate for the continent’s soils, farmers and food systems. Some decried the lack of consultation with African farmers on the nature of the interventions.9 Others pointed out the serious flaws in the first Green Revolution: water supplies depleted and contaminated with chemical runoff; farmers indebted due to high input costs while yields declined after their initial increases; and the loss of crop and diet diversity as Green Revolution crops took over the countryside

African farm groups like the Alliance for Food Sovereignty in Africa (AFSA) also warned of the loss of food sovereignty, the ability of communities and nations to freely choose how they wanted to feed themselves, as large commercial firms could come to dominate local markets backed by new government policies designed to ensure market access.

Only one country, Ethiopia, shows anything resembling the combination of yield growth and hunger reduction Green Revolution proponents promised, with a 73% increase in productivity and a 29% decrease in the number of hungry. Note, however, that neither of these is on track to meet AGRA’s goal of doubling productivity (100% increase) and halving the number of hungry (which would be a 50% decrease). Ghana is the only other AGRA country that shows decent productivity growth with some decrease in hunger. Malawi achieved relatively strong yield growth but only a small reduction in undernourishment.

These data suggest that Green Revolution programs have not produced a productivity boom through intensification but rather an extensification onto new lands. The promotion of extensification is a serious contradiction for Green Revolution proponents. The explicit goal of “sustainable intensification” is to minimize pressure on land and water resources while limiting further greenhouse gas emissions. To the extent Green Revolution programs are encouraging extensification, they are at odds with national and donor government commitments to mitigate climate change. Depending on individual countries’ land endowments, extensification can be a serious problem. Rwanda, for example, is densely populated and does not have vast tracts of uncultivated arable land.

One of the negative consequences of the Green Revolution focus on maize and other commodity crops is the declining importance of nutritious and climate-resilient crops like millet and sorghum, which have been key components in healthy diets. These are rarely supported by African governments or AGRA; meanwhile, input subsidies and supports for maize and other favored crops provide incentives for farmers to decrease the cultivation of their own crop varieties

Cassava, a key staple in Nigeria, Mozambique, Uganda, Tanzania and many other AGRA countries, saw a 6% decline in yields. Overall, roots and tubers, which include nutritious crops such as sweet potatoes, experienced a 7% decline in yields. Groundnuts, another critical staple source of protein in many countries, saw an alarming 23% drop in yields.

The Staple Crop Index shows that Rwanda’s apparent success in maize has come at the expense of more comprehensive food crop productivity.

The total number of undernourished in AGRA’s 13 countries has increased from 100.5 million to 131.3 million, a 30% increase, from before AGRA to 2018. Only Ethiopia, Ghana and Mali report a significant decline in the absolute number of chronically hungry residents

Evidence would suggest that the main beneficiaries are likely not the poorest or most food-insecure farmers but rather a growing number of medium-scale farmers who have access to more land and are already integrated into commercial networks. Only a fraction of such farmers come up from the ranks of smallholders; many are new investors in farming from urban elites. One study showed that a tiny fraction of smallholders is likely to become commercial farmers.18

AGRA seems to be feeding Africa’s worrisome trend toward locking in path dependency on input-intensive agriculture, much to the detriment of smallholder farmers

Unlike industrial-scale farmers in developed countries, their path has not yet been determined; there remain opportunities to chart paths different from the high-input agriculture model promoted by AGRA.

Agroecology is one of the systems giving farmers the kinds of innovation they need, farming with nature to promote the soil-building practices that Green Revolution practices often undermine. Building on farmers’ knowledge of local conditions and food cultures, multiple food crops are grown in the same field. Compost, manure and biofertilizers — not fossil-fuel-based fertilizer — are used to nourish fields. Biological pest control decreases pesticide use. Researchers work with farmers to improve the productivity of their seeds rather than replacing them with commercial varieties farmers need to buy every year and douse with fertilizer to make them grow.25 AFSA has documented the effectiveness of agroecology, now widely promoted among its member organizations as a key step toward food sovereignty.26 Such initiatives also achieve productivity increases more impressive than those achieved by Green Revolution programs. One University of Essex study surveyed nearly 300 large ecological agriculture projects across more than 50 poor countries and documented an average 79% increase in productivity with decreasing costs and rising incomes.27 Such results far surpass those of the Green Revolution.

It is time for international donors and African governments to change course, to shift their agricultural development funding toward the kinds of low-input sustainable farming that many small-scale farmers in Africa are pioneering under the banner of agroecology. With substantial support, like that provided to Green Revolution programs, agroecology can be Africa’s food future

Consider the democratic peace theory. The theory makes two key propositions: that democracies are less likely to go to war than are nondemocracies, and that democracies are less likely to go to war with each other. The historical record shows that democracies have actually not been less likely to fight wars—if you include their colonial conquests. Meanwhile, in regions such as the Middle East and North Africa, democratizing states have experienced more internal conflicts than their less-democratic peers. Yet leaders in the West have invoked democratic peace theory to justify invading and occupying less-democratic, and notably less-white, countries.

non-European nations did not voluntarily adopt European understandings of statehood and sovereignty

Europe, justified by Westphalia, divided the world between the modern, “civilized” states and conquered those which they did not think belonged in the international system

Western concepts are prioritized at the expense of their applicability in the world. Krishna called this “a systematic politics of forgetting, a willful amnesia, on the question of race.”

the Journal of Race Development—the first academic IR journal, established in 1910—advanced racist treatises, including on the inability of “native races” to develop states without colonialism. Nonetheless, the journal’s pages also included sharp critiques from W.E.B. Du Bois and other scholars who were critical of European mercantilism. In 1919, the journal was rebranded as the Journal of International Relations without substantive changes and, in 1922, its successor, Foreign Affairs, was born.

The mid-20th century brought about some shifts in IR thinking and in foreign policy. Black IR scholars, primarily working out of Howard University, developed a strong theoretical tradition that resists white-supremacist privileging of U.S. and European empires. Anti-colonial revolutions in the 1950s, 1960s, and 1970s further problematized the promise of empire built into realist frameworks and the idealism of paternalist cooperation integral to liberal thought.

Between 1945 and 1993, among the five major IR journals of the period—International Organization, International Studies Quarterly, Journal of Conflict Resolution, Review of International Studies, and World Politics—only one published an article with the word “race” in the title. Another four articles included “minorities” and 13 included “ethnicity.” Since then, mainstream IR has neglected race in theorizing, in historical explanation, and in prescription, and shuttled race (and gender) to the side as “other perspectives.”

those who teach IR must address race and racism in the field and acknowledge the usefulness of critical approaches. This means integrating scholarly works on race in undergraduate and graduate courses, and not as a segregated “week on race” at the end of the term

Introductory courses could also be organized around issues—for instance, interstate conflict, human rights, environmental politics—in order to create more points of entry for relevant scholarship and for nonwhite students

These outflows include illicit capital flight, tax and commercial practices like mis-invoicing of trade shipments and criminal activities such as illegal markets, corruption or theft.

IFFs represent a major drain on capital and revenues in Africa, undermining productive capacity and Africa’s prospects for achieving the Sustainable Development Goals (SDGs).

in African countries with high IFFs, governments spend 25% less than countries with low IFFs on health and 58% less on education

In Africa, IFFs originate mainly from extractive industries and are therefore associated with poor environmental outcomes.

The report shows that curbing illicit capital flight could generate enough capital by 2030 to finance almost 50% of the $2.4 trillion needed by sub-Saharan African countries for climate change adaptation and mitigation

Of the estimated $40 billion of IFFs derived from extractive commodities in 2015, 77% were concentrated in the gold supply chain, followed by diamonds (12%) and platinum (6%).

Specific data limitations affected efforts to estimate IFFs. Only 45 out of 53 African countries provide data to the UN International Trade Statistics Database (UN Comtrade) in a continuous manner allowing trade statistics to be compared over time.   The report highlights the importance of collecting more and better trade data to detect risks related to IFFs, increase transparency in extractive industries and tax collection.

Regional knowledge networks to enhance national capacities to tackle proceeds of money laundering and recover stolen assets, including within the context of the African Continental Free Trade Area (AfCFTA), are crucial in the fight against corruption and crime-related IFFs

Tax evasion is at the core of the world's shadow financial system. Commercial IFFs are often linked to tax avoidance or evasion strategies, designed to shift profits to lower-tax jurisdictions.

Nigeria’s President Muhammadu Buhari said: “Illicit financial flows are multidimensional and transnational in character. Like the concept of migration, they have countries of origin and destination, and there are several transit locations. The whole process of mitigating illicit financial flows, therefore, cuts across several jurisdictions.”

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

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.