The Divide

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The Divide Page 35

by Jason Hickel


  Césaire, Aimé, 19, 63

  Chad, 182–83

  Chang, Ha-Joon, 180–81

  charity, conundrum of, 241–43

  Chávez, Hugo, 207

  Chicago, University of, 120, 122, 127

  Center for Latin American Economic Studies at, 123

  Chicago Boys, 126–27, 308n

  Chicago School, 121–22

  child mortality, 48, 49, 50, 292n

  declining rate of, 14, 33–34, 36, 287n

  Chile, 122–27, 169, 307n

  China, imperial, 19, 64–65, 88

  Britain and, 86–87, 175, 205

  European trade with, 69, 70

  China, modern, 154, 175, 246, 222, 230, 279

  economic gains in, 52, 219

  hunger eradication in, 255

  poverty reduction in, 15, 38, 42, 43

  Cipro, 189–90

  City of London, tax haven network of, 215–16

  class conflict, 89, 158, 162

  Climate Action Network, 228

  climate change, 29, 56, 134, 224–36, 229, 253, 267

  capitalism and, 235–36

  costs of, as borne primarily by global South, 228, 230–32, 257

  deforestation and, 225, 270

  development and, 235–36

  disease and, 231

  feedback loops in, 235

  food prices and, 219, 220

  GDP growth and, 266, 267, 269–71

  greenhouse gas emissions and, see greenhouse gas emissions

  healing ethic and, 283

  hunger and, 231

  land grabs and, 256

  Paris Agreement and, see Paris Agreement

  rainfall patterns and, 230–31

  see also global warming

  Climate Fairshares project, 257

  Climate Vulnerability Monitor, 228, 230

  Cold War, 107, 264

  rhetoric of, 109, 111, 133

  Colombia, 95, 96

  colonialism:

  capital accumulation and, 97–98

  capitalism in remaking of, 79–85

  captive markets in, 72, 86, 98

  collapse of, 104

  death of indigenous peoples in, 19

  economic elites and, 99

  European outsourcing of land-intensive production in, 71–74

  extraction of wealth in, 73

  free-market capitalism and, 97–98

  global economic system and, 96, 105

  global inequality as legacy of, 10, 19, 20, 30, 97

  Industrial Revolution and, 18–19

  industry and, 85–86

  labour supply and, 97

  land enclosure and, 81–85, 93

  one-way tariffs in, 86

  as origin of foreign debt, 169

  racism and, 94

  see also South, global

  Columbus, Christopher, 66–67, 91

  commodity futures, 219–20

  commons, reclaiming of, 253–57

  communism, developmentalism demonised as, 109, 133

  Compaoré, Blaise, 170

  comparative advantage, 97, 177, 179, 182, 186, 252

  competitiveness, 178

  compound interest, 167–68, 246, 276

  Congo, 115, 169

  see also Belgian Congo; Zaire

  consumer market, creation of, 78

  consumption, 278, 279, 280, 283

  North-South divide in, 261–62, 273

  corporations:

  cost of goods and labour for, 28

  maximising shareholder returns as legal imperative for, 275–76

  postcolonial nations’ policies as threat to, 21

  structural adjustments as profitable for, 161

  corporations, multinational, 185

  access to cheap labour by, 160–61

  tax evasion by, 213–14, 254–55

  corruption, 210

  bribery and theft by government officials in, 210

  as explanation for global inequality, 208–9, 218

  illicit outflows and, 210–12, 214, 217, 254, 258

  land grabs and, 223

  perception vs. reality of, 218

  Corruption Perceptions Index (CPI), 209, 217–18

  Cortés, Hernán, 67–68

  Costa Rica, 272–74

  Côte d’Ivoire, 118, 151, 218, 224

  cotton:

  illegal US subsidies for, 182–83

  slavery and, 18, 71–72

  crises of over-accumulation, 158–60, 162

  Cuba, 18, 95–96, 113

  Davis, Mike, 84–85

  debt resistance, 244–47, 258, 276

  decolonisation, 104, 302–3n

  deforestation, 224, 225, 262, 265, 270

  de Gaulle, Charles, 117

  democracy, 201, 247, 285

  FTAs and, 194, 196, 199

  dengue fever, 231

  development:

  climate change and, 235–36

  as foreign policy weapon, 19–20

  myth of, 10, 11, 13, 14, 29–32, 154

  North-South gap in, 9–10

  as stymied by global economic system, 13, 29

  Truman and, 8, 10, 12, 17–18, 19

  development aid, 164

  alleviation of structural causes of inequality vs., 257–58

  annual disbursement of, 23, 24–25, 26, 27

  capital outflow vs., 24–30, 210

  developmentalism, 20–21, 105–18, 121, 122–23, 141, 179

  demonised as communism, 109, 133

  ecological capacity as barrier to, 261

  fairness as goal of, 131–32

  income inequality and, 106–7

  land reform in, 124

  legacy of, 132, 260–61

  life expectancy and, 107

  nationalisation in, 124, 194

  NIEO and, 138–39

  as prioritising rapid growth over human and ecologial needs, 133–34

  redistribution of political power and, 132

  shrinking North-South income gap and, 107

  structural adjustment as undoing progress under, 145–47, 148–49, 153–54, 162

  Western backlash against, 21–22, 108, 109–34, 146

  development industry, 3, 10–11

  business-as-usual mindset in, 55–56

  desire for new approach in, 243–44

  and failure to eradicate poverty, 13, 14–15, 17

  misleading statistics of, 15–16

  short-term historical view of, 63–64

  disease, climate chnage and, 231

  Djankov, Simeon, 204

  Dodge v. Ford Motor Company, 275

  Doing Business rankings, 201–4, 317n

  domestic material consumption, 267–68

  Dominican Republic, 95, 96, 113, 170

  Dulles, Allen, 109, 110, 111

  Dulles, John Foster, 109, 110, 111

  Easterly, William, 156

  East India Company, 82, 88

  ecological capacity, 261–62, 265, 267–69

  economic system, global:

  climate change and, 236

  colonialism in, 96, 105

  core vs. peripheral states in, 65–66, 72, 73, 97

  as creation of Western powers, 3, 19, 108, 138

  debt as driver of, 276–77

  development stymied by, 13, 22–23, 29

  downsizing and, 272

  fundamental unfairness of, 19–20, 54, 55–57, 257

  GDP growth as main objective of, 264, 267, 271

  good-news narrative and, 35, 59

  Great Depression and, 100, 101–2

  poverty and, 12–13, 47, 52

  precolonial, 86–89

  transfer of wealth from South to North in, 96–97

  Economist, 34, 126, 231

  Ecuador, 94, 113, 197–98, 285

  education, 33, 36

  Egypt, 104, 106, 140, 218–19

  Eisenhower, Dwight, 20, 24, 109–10, 112, 115

  Ekta Parishad, 259

  Elf Aquitaine (Total) oil compan
y, 117, 118

  elites, economic, 119, 122, 127

  see also economic inequality

  El Mercurio, 124

  El Niño, 83, 84

  El Salvador, 113, 197

  End of Poverty, The (Sachs), 23

  environmental degradation, 158, 162

  overconsumption and, 261–62

  Ethiopia, 226, 243

  Europe, 65, 69

  basic minimum income in, 280

  colonial legacy of, 10, 18–19

  economic inequality in, 99–100, 280

  income growth in, 94

  life expectancy in, 64

  outsourcing of land-intensive production from, 69, 71, 73–74

  overconsumption in, 262

  in plunder of global South’s resources, 66–73

  postcolonial nations’ policies as threat to, 21

  slave economy and, 71–72

  standard of living in, 88

  European Common Agricultural Policy, 182

  European Union, 92

  extinctions, increased rate of, 262

  fair trade, 249–52, 253

  Fanon, Frantz, 30

  farmers, farming:

  regenerative, 282–83, 285

  as undercut by subsidised foods, 12, 22, 251–52

  see also agriculture

  financial crisis of 2008, 44, 198, 208

  financial sector, deregulation of, 130

  Financial Times, 201

  fish stocks, depletion of, 262, 265

  Foccart, Jacques, 117

  Food and Agriculture Organization (FAO), 43–46, 55

  misleading statistics of, 45, 45–46, 293–94n

  food prices, 34, 44, 58

  1877–78 spike in, 84

  NAFTA deregulation of, 193

  2007 crisis in, 44, 218–19

  2010–11 spike in, 220

  food security, 37, 84, 223, 257, 261, 283

  Ford Foundation, 123

  Ford Motor Company, 275

  foreign debt, 25

  cancellation of, 25, 244–46, 258, 276

  colonialism as origin of, 169

  debt relief programmes and, 171–72

  default on, 168–69, 247

  as driver of global economic system, 276–77

  GDP growth as demanded by, 276

  given priority over social services, 12, 144–45, 148, 153, 166–67, 244

  global inequality and, 166–67

  interest on, 167–68, 245–46, 276

  as leverage for pro-Western economic policies, 21–22

  as moral issue, 171

  payments on, 166–67, 167

  as percentage of global South gross income, 168

  poverty and, 167, 172

  structural adjustment and, 245, 246

  2008 financial crisis and, 208

  foreign investment, 24–25, 28

  fossil fuels, 198, 228, 259, 270, 283

  government subsidies for, 233, 257

  France:

  African colonies of, 90–91

  African interventions of, 117–18

  decolonisation and, 104

  postcolonial nations’ policies as threat to, 21

  Treaty of Versailles and, 100

  Francis I, Pope, 51–52

  Frank, Andre Gunder, 308n

  free-market capitalism, 35–36, 40, 43, 120, 177, 249

  colonialism and, 97–98

  comparative advantage in, 97

  coups and violence in imposition of, 79, 205

  Friedman’s theory of, 120–22

  global inequality and, 52

  government regulation of, 102

  Indian farmers and, 83–85

  individual liberty and, 121, 122

  supply and demand in, 97

  tax havens in, 217

  free trade, theory of, 177–206, 207, 236

  abundance of capital and cheap labour in, 178–79

  comparative advantage in, 97, 177, 179, 182, 186, 252

  government regulation as anathema in, 179, 250

  Heckscher-Ohlin-Samuelson model in, 177–79

  market “distortions” in, 178, 179, 185

  as misleading term, 174, 175, 199, 205

  free-trade agreements (FTAs), 192–99, 208, 211, 249–50

  see also specific agreements

  free-trade zones, 205–6

  Friedman, Milton, 120–22, 126–27, 129, 130, 308n

  Friends of the Earth, 232, 257

  G7, 138–39, 157–58

  G8, 223

  G77, 107, 138, 187

  Gabon, 117–18

  Galeano, Eduardo, 98

  Gandhi, Mohandas K., 19, 104

  Garvey, Marcus, 104

  Gates Foundation, 29

  gays, discrimination against, 103

  GDP:

  alternatives to, 274–75

  calculation of, 263–64

  well-being and, 272–73

  GDP growth, 284

  as accepted measure of economic progress, 263, 264, 266, 274, 274

  climate change and, 266, 267, 269–71

  ecological capacity and, 265

  as exponential, 265, 271, 273

  as main objective of global economic system, 264, 267, 271

  material throughput and, 267–68

  as needed to service debt, 276

  poverty and, 55–56, 266

  of US vs. global South, 53–54, 54

  Geneen, Harold, 112

  General Agreement on Tariffs and Trade (GATT), 175–76

  Genuine Progress Indicator (GPI), 274, 274–75, 279

  George, Henry, 281

  Germany, 91, 100, 120

  Getting Better: Why Global Development Is Succeeding (Kenny), 34

  Ghana, 104, 106, 114–15, 215

  GI Bill, 103, 158

  Gini, Corrado, 51

  Gini index, 51, 52, 53

  Glass-Steagall Act, abolition of, 130

  Global Financial Integrity (GFI), 24–25, 26, 210, 212, 213, 289n, 319n

  Global Footprint Network, 261

  global warming:

  1.5ºC warming threshold in, 232–33, 256, 269

  projected 4ºC increase in, 234–35, 256, 269

  regenerative farming and, 282–83

  2ºC warming threshold in, 256, 272

  see also climate change

  gold, Spanish conquest and, 67–69

  Good Neighbor policy, 104, 112

  good-news narrative, 35, 59

  Goulart, João, 112–13

  government:

  market regulation by, 102, 179

  spending by, 21, 102, 128

  Graeber, David, 171

  GRAIN, 224, 259

  Grapes of Wrath, The (Steinbeck), 223

  Great Arrow of Progress, 9, 10

  Great Depression, 100, 101–2, 120, 122, 129, 130, 175–76, 263

  Great Famine, 80

  Great Recession, 34

  Greece, 170

  greenhouse gas emissions, 224, 225, 228, 230, 256–57, 270, 272, 279, 280

  Green Revolution, 231

  Greenspan, Alan, 130

  Gross National Happiness, 284

  growth, conundrum of, 263–67

  Guardian, 118

  Guatemala, 21, 110–12, 168, 243

  Haiti, 24, 95, 113

  Haiyan, Typhoon, 226–27, 230

  Hamilton, Alexander, 175

  happiness, 273, 275, 284

  Happy Planet Index, 275

  Harberger, Arnold, 127, 308n

  Hardy, Benjamin, 7–8

  Hayek, Friedrich, 120, 129

  Heckscher-Ohlin-Samuelson model, 177–79

  Helms, Richard, 124

  Highly Indebted Poor Countries (HIPCs), 171

  HIV/AIDS, 1, 34, 36, 185–86, 188–90, 251

  cost of medication for, 12, 189

  Honduras, 18, 95, 113, 207, 208

  hot money, 210–11, 214

  Houphouët-Boigny, Félix, 118

  “How Ambi Became Paisley” (Pa
tel), 99

  human rights, 104, 138

  hunger, 15, 37

  climate change and, 231

  definition of, 44–45, 293–94n

  global food production and, 15, 46

  Millennium Development Goals and, 33, 34, 43–47

  misleading statistics on, 43, 44–45, 45, 48

  New Alliance for Food Security and Nutrition and, 223, 255

  2007 food-price crisis and, 44, 218–20, 223

  Idle No More, 259

  IMF (International Monetary Fund), 40, 43, 103, 114, 176, 184, 219, 258

  anti-regulatory policies of, 211

  Budhoo’s critique of, 156–57

  crippling of global South’s economic independence as goal of, 157–58

  debt-relief programme of, 171

  democratisation of, 247–49

  GDP growth promoted by, 264

  as global debt enforcer, 144

  immunity status of, 154–55, 172, 196, 248

  perpetuation of capitalism as unspoken goal of, 158–60

  reducing economic instability as supposed goal of, 157

  structural adjustment and, see structural adjustment programmes

  Western powers’ control of, 155–56

  “IMF riots,” 152–53

  immunity laws, 154–55, 172, 195–98, 248

  imperialism, see colonialism

  Incas, 64, 68

  income:

  basic minimum, 280–81

  per capita, 40–41, 313n

  income inequality:

  between countries, see inequality, global

  developmentalism in, 106–7

  of individuals, 2, 16, 51, 119

  postcolonial rise in, 16

  of U.S. vs. global South, 16

  India, 48, 69, 106, 222, 246

  British rule in, 19, 82–86, 88, 104

  climate change and, 230, 231, 285

  structural adjustment in, 145, 153

  indigenous Americans, 259

  Columbus and, 66–67

  enslavement of, 67, 68–69, 70

  expropriation of land from, 81–82

  genocide of, 69–70

  Indonesia, 113–14, 230

  industrialisation, protectionism and, 175–76, 181, 184–85

  Industrial Revolution, 65, 89, 106, 228

  accumulation of wealth and, 73–74

  colonialism and, 18–19, 85–86

  land enclosure and, 76–78

  outsourcing of land-intensive production in, 69, 71–74

  slave economy and, 71–72

  inequality, global, 131

  alleviation of structural causes vs. development aid for, 257–58

  corruption and, see corruption; tax evasion, tax havens

  development and, see development

  foreign debt and, see foreign debt

  GDP per capita growth in, 53–54, 54

  Gini index and, 51, 52, 53

  as legacy of colonialism, 10, 19, 20

  misleading statistics on, 51, 52

  North-South divide in, 2, 8, 9–10, 17, 51–54, 164, 244

  as outgrowth of economic system, 19–20

  postwar narrowing of North-South gap in, 100–101

 

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