Group items tagged

you can’t take a break from poverty

what difference can a nudge really make? The nudge epitomises an era in which politics is concerned chiefly with combatting symptoms. Nudges might serve to make poverty infinitesimally more bearable, but when you zoom out, you see that they solve exactly nothing

“Our effects correspond to between 13 and 14 IQ points,” Shafir says. “That’s comparable to losing a night’s sleep or the effects of alcoholism.” What’s remarkable is that we could have figured all this out 30 years ago. Shafir and Mullainathan weren’t relying on anything so complicated as brain scans. “Economists have been studying poverty for years and psychologists have been studying cognitive limitations for years. We just put two and two together.”

Randall Akee, an economist at the University of Los Angeles, calculated that the casino cash distributed to Cherokee kids ultimately cut expenditures. According to his conservative estimates, eliminating poverty actually generated more money than the total of all casino payments through reductions in crime, use of care facilities, and repetition of school grades.

“Fighting poverty has huge benefits that we have been blind to until now,” Shafir points out. In fact, he suggests, in addition to measuring our gross domestic product, maybe it’s time we also started considering our gross domestic mental bandwidth. Greater mental bandwidth equates to better child-rearing, better health, more productive employees – you name it. “Fighting scarcity could even reduce costs,” he says.

Granted, it would take a big programme to eradicate poverty in the US. According to economist Matt Bruenig’s calculations, it would cost $175bn. But poverty is even more expensive. One study

“Poverty is a great enemy to human happiness; it certainly destroys liberty, and it makes some virtues impracticable, and others extremely difficult,” said the British essayist Samuel Johnson in 1782. Unlike many of his contemporaries, he understood that poverty is not a lack of character.It’s a lack of cash.

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.”

In early June, the International Crisis Group did something its leaders said was a historic first: It issued a statement on an internal crisis in the United States. The ICG, an independent organization headquartered in Belgium, analyzes geopolitics with the goal of preventing conflict. It is known for issuing authoritative, deeply sourced reports on war-torn countries — say, how to end the brutal conflict in Yemen.

In language similar to how it might describe fragile foreign states, the ICG cast the “unrest” as a crisis that “put the nation’s political divides on full display.” And it chided the Trump administration for “incendiary, panicky rhetoric that suggests the U.S. is in armed conflict with its own people.”

“Over the long term, the nation will need to take steps to end the police’s brutality and militarization as well as structural racial inequality if it wants to avoid similar future crises,” the ICG said.

The ICG decided it saw a confluence of factors in America that it sees in far more troubled countries. One appeared to be growing militarization of the police. Another was the seeming politicization of the military. Also key: Some U.S. political leaders, including Trump, seem determined to exploit racial divisions instead of pushing for unity. The ICG is now debating whether to launch a program that focuses on U.S. domestic issues in a systematic way

past U.S. administrations, Republican and Democrat, all had credibility gaps when it came to promoting human rights while protecting U.S. interests. Obama, for instance, was criticized for authorizing drone strikes against militants that often killed civilians

“I think there’s a qualitative difference with this administration, for whom human rights seems to be treated purely as a transactional currency,”

In 2019, Freedom House released a special essay titled “The Struggle Comes Home: Attacks on Democracy in the United States.” The Washington-based NGO, which receives the bulk of its funding from the U.S. government, was established in 1941 to fight fascism. Its report, which ranks how free countries are using various indicators, described a decline in U.S. democracy that predated Trump and was fueled in part by political polarization. Freedom House warned, however, that Trump was accelerating it.

The international furor against the Trump administration was especially intense in mid-2018, as the U.S. was separating migrant children from their parents at the southern border, then putting the children in detention camps. The U.N. high commissioner for human rights called the U.S. actions “unconscionable.”

“There is intense racism and law enforcement abuse of human rights in China, in Russia, in Brazil and a lot of other countries that the United Nations has a hard time mustering the will to condemn,” said Rep. Tom Malinowski (D-N.J.), a former senior human rights official under Obama. “But none of those countries is the indispensable nation. What human rights organizations and institutions are saying by focusing on the United States is something that they cannot explicitly admit, and that is that they believe in American exceptionalism. They understand that America falling short of its ideals has a far greater impact on the world than a Russia or a China doing what we all expect those authoritarian states to do.”

A top State Department official, Brian Hook, later wrote a memo to Tillerson arguing that the U.S. should use human rights as a weapon against adversaries, like Iran and China. But repressive allies, such as Egypt and Saudi Arabia, should get a pass, it said. “Allies should be treated differently — and better — than adversaries. Otherwise, we end up with more adversaries, and fewer allies,” Hook wrote.

the memo appears to have laid out the policy approach the Trump administration has taken on human rights, even after Tillerson was fired in early 2018. His successor, Mike Pompeo, frequently weighs in on human rights but almost exclusively to bash governments hostile to the United States or, occasionally, ones with which the U.S. has limited strategic interest.

it sometimes goes to great lengths to protect abusive U.S partners, as it has done by pressing ahead with arms sales to Saudi Arabia despite its assassination of a writer for The Washington Post

“The current administration doesn’t think most of its supporters care about international violations of human rights broadly,”

Privately, administration officials say they do a lot of excellent human rights work that doesn’t get attention. They note that Congress has kept up funding for much of that work, even though Trump has tried to slash that funding. They also argue that the Trump team’s objectives and priorities are clearer than those of past administrations, especially when distinguishing friend from foe. While Obama tried to engage Tehran and Havana, the Trump administration casts those regimes as irredeemable, and it’s willing to attack them on human rights to weaken them. On the other hand, while Obama kept Hungary’s leader at a distance, Trump has welcomed him to the White House. Critics may see that as another example of Trump liking dictators, but his aides say it is a way to limit Russian and Chinese influence in Eastern Europe.

Trump administration officials also say human rights activists are never satisfied, no matter who is in the White House. This is not an unfair argument: The groups routinely criticize even administrations most friendly to their cause. Bush was eviscerated over his handling of the war on terrorism, especially his decision to invade Iraq, even though he and his aides asserted that they were liberating and protecting people. Obama’s human rights legacy was declared “shaky.” For U.S. officials who must make choices between bad and worse options every day, the endless criticism is frustrating.

Pompeo’s disdain for the human rights community is one reason he created what’s known as the Commission on Unalienable Rights. The secretary asserts that activists keep trying to create categories of rights, and that “not everything good, or everything granted by a government, can be a universal right.”

Rights activists worry the panel will craft a “hierarchy” of rights that will undermine protections for women, LGBTQ people and others, while possibly elevating religious freedom above other rights

Human rights leaders say there are two noteworthy bright spots in the Trump administration’s record. It has put significant resources into promoting international religious freedom — routinely speaking out on the topic, holding annual ministerial gatherings about it, and launching an international coalition of countries to promote the ideal. A few weeks ago, Trump issued an executive order instructing Pompeo to further integrate the promotion of religious freedom in U.S. diplomacy. The administration also has used a relatively new legal tool, the Global Magnitsky Act, to impose economic sanctions on numerous individuals implicated in human rights abuses abroad. The sanctions have fallen on people ranging from Myanmar military officials suspected in the mass slaughter of Rohingya Muslims to an allegedly abusive Pakistani police official.

“In comparison to the remainder of its human rights record, the Trump administration’s use of the Global Magnitsky sanctions has exceeded expectations,”

The religious freedom alliance, for instance, includes countries such as Hungary, whose government the U.S. is trying to court but which traffics in anti-Semitic rhetoric. The religious freedom push also dovetails with a priority of Trump’s evangelical supporters, who have long pushed for greater protection of Christian communities overseas.

Under intense outside pressure, the administration imposed Magnitsky sanctions on more than a dozen Saudis for the murder of Washington Post columnist Jamal Khashoggi; but it spared the man the U.S. intelligence community considers responsible for the killing, Saudi Crown Prince Mohammed bin Salman, whom Trump has defended

The dire situation of Uighur Muslims in China illustrates how both the Magnitsky effort and the religious freedom effort have collided with Trump’s own priorities.

In recent years, the Chinese government has detained more than a million Uighur Muslims, putting them in camps from which ugly reports of abuse have emerged. China claims it is “reeducating” the Uighurs to stamp out terrorist thinking in the population. Republican and Democratic lawmakers in Congress are furious over the detention of the Uighurs.

Pompeo, meanwhile, has raised the Uighurs as an example of why the U.S. must promote religious freedom. But Trump has been unwilling to use the Magnitsky sanctions on Chinese officials involved in the mistreatment of the Uighurs. He told Axios he doesn't want to impose the penalties because it might derail trade talks with Beijing, the success of which he sees as critical to his reelection

Trump’s diatribes against journalists — and his claims that many legitimate media outlets are “fake news” — are believed to have inspired some countries to impose tougher laws curtailing press freedoms.

When the State Department spokesperson recently tweeted out criticism of Beijing’s treatment of pro-democracy activists in Hong Kong, a Chinese official tweeted back at her with some of Floyd’s last words: “I can’t breathe.”

In 2018, a U.N. envoy, Philip Alston, unveiled the findings of an investigation into poverty in the United States. Alston has said he was initially invited to study the topic under the Obama administration, but that the Trump administration — under Tillerson — had reextended the invite. Alston’s report minced few words. The United States, he reported, was home to tens of millions of people in poverty, and that was likely to be exacerbated by Trump’s economic policies.

Nikki Haley, then the U.S. ambassador to the United Nations, fought back. She called Alston’s work “misleading and politically motivated,” insisted that the Trump administration’s plans would lift people out of poverty, and argued that the U.N. should focus on poverty in less-developed countries.

The council instead requested a broader, more generic U.N. report on systemic racism and police brutality against Black people and also asked for information on how various governments worldwide deal with anti-racism protests. The resolution did, however, mention the Floyd death and the report is expected to cover the United States, among other countries.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the longshoremen fret about robots

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

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

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

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.

even here in the country’s financial capital, where residents bear daily witness to the stark extremes of Indian wealth and poverty, Mr. Ambani’s building is so spectacularly over the top that the city’s already elastic boundaries of excess and disparity are being stretched to new dimensions

it is particularly worrying how far the coronavirus is spreading within the political elite in countries where many senior politicians are over 60, making them especially at risk. In Burkina Faso, a country that has experienced more than its fair share of instability in recent years—and which is currently struggling against an insurgency—the ministers of foreign affairs, education, the interior, and mines have all tested positive.

In Nigeria, one of the most economically and politically important countries on the continent, Abba Kyari, the chief of staff to 77-year-old President Muhammadu Buhari, has come down with the disease. Although media outlets have reported that Buhari tested negative, this has not stopped damaging rumors that the often ill president has been incapacitated from circulating in Twitter.

The world should also be paying close attention to Iran, where media censorship has obscured the extent of the crisis. So far, two vice presidents and three cabinet officials are known to have gotten the virus. It is also estimated that 10 percent of parliament and many prominent figures within the Islamic Revolutionary Guard Corps are sick—including a senior advisor to the 80-year-old supreme leader, Ayatollah Ali Khamenei, raising questions about his health.

A leadership crisis is just one of the potential sources of political instability the coronavirus could spark. Others include the risk of popular unrest and the debt crises that will soon engulf many countries around the world. Along with the fact that some of the main providers of foreign aid are now preoccupied with their own financial crises, there is a serious risk that politically and economically weak states will face a perfect storm of elite deaths, debt, mass unemployment, and social unrest

In countries where poverty is widespread, health systems are weak, and the cost of food is high, citizens are already under intense financial pressure. Despite earning the least, those who live in slum areas around capital cities often have to pay more for access to water and food than those who have valuable properties in the city centers. While the cramped conditions of slum living make it implausible to self-isolate, limited and inconsistent income make it impossible to buy in bulk—or to stay home for weeks on end without working and risk starvation. For many of the poorest people in the world, hunger is just a few days away

Already, there have been sporadic incidents of unrest in a number of countries, including prison protests in Italy. Meanwhile, heavy-handed efforts to enforce the curfew threaten to further erode public confidence in the government and the security forces. There are reports of widespread human rights abuses being committed in Kenya and South Africa, where the police have been using water cannons and rubber bullets to enforce the lockdown.

Unless the deferral of debt goes hand in hand with debt cancellation and long-term rescheduling, the end of the coronavirus crisis could be followed by a series of economic collapses across the developing world. In turn, this will undermine the ability of governments to provide affordable fuel and food, further increasing the risk of public unrest.

Civil wars, political instability, and poverty kill millions of people every year. These deaths rarely elicit the kind of comprehensive media coverage that COVID-19 has received, but they are no less important. It is possible to prevent the worst political consequences of the coronavirus but only if governments and institutions act now. Wealthy nations must increase their aid budgets rather than cut them, and international organizations must anticipate and work to avoid political crises more proactively than ever before. That is the only way to collectively survive the present in a way that does not undermine the future.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

smaller, more diverse farm operations

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

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.

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

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

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

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

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

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

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

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

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

many people in Lebanon blame the refugees for our problems – especially economic problems

I began taking part in an EU MADAD trust fund “Youth Resolve” project close to my home. It was run by UK aid agency CAFOD and Caritas Lebanon. Its main objective is to bring Syrian and Lebanese youth together.

We have been able to change some of the perspectives on both sides – among Lebanese people and refugees – and it inspired me to do more. People around me have started to understand that the Syrians did not come here by choice; they were forced to come here, and if they could go home, most of them would. These are all steps on the path to equal treatment.

We will be the ones raising the next generation, and we don’t need to do that based on opinions from another time. In the future, I hope to create a youth council back in Lebanon, where young people can share their views and be represented.