The Divide

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The Divide Page 36

by Jason Hickel


  traditional explanations of, 3, 9–10, 13, 97–98

  unequal exchange in, 96–97, 105

  see also elites, economic; poverty

  intellectual property rights, 25, 29

  see also TRIPS

  International African Association, 91

  International Centre for Settlement of Investment Disputes (ICSID), 194–98

  International Energy Agency, 235

  International Labour Organization, 202, 253

  International Organizations Immunity Act (1945), 155

  international poverty line (IPL), 40–42, 47–51, 56, 57

  investors, power of, 200–201

  investor-state disputes, 195–97, 250

  Iran, 21, 109–10, 168

  Iranian Revolution (1979), 142

  Iraq, 24, 106, 159, 207, 285

  Ireland, 79–80, 82, 84, 215

  Israel, 31, 116, 140

  ITT Corporation, 112, 124, 307n

  ivory trade, 91–92

  Japan, 64–65

  Johnson, Lyndon, 20, 112

  Joly, Eva, 118

  Jordan, 140

  Jubilee 2000, 171

  Jubilee Campaign, 258

  Kennedy, John F., 20, 112

  Kenny, Charles, 34

  Kenya, 216, 225

  Keynes, John Maynard, 63, 102, 144, 175–76, 200

  Keynesianism, 102–5, 109, 118–19, 121, 144, 176

  fairness as principle of, 104, 176

  stagflation and, 128, 129

  Kim, Jim Yong, 164, 204

  King, Martin Luther, Jr., 4

  Kissinger, Henry, 15, 139

  Klein, Naomi, 236

  Köhler, Gernot, 166, 290–91n

  Kuznets, Simon, 263, 264

  labour:

  cheap, 97, 160–61, 178–79, 193, 252–53

  crises of over-accumulation and, 159

  theoretical mobility of, 186

  see also wages

  Labour Party, 103

  labour theory of property, 80–81

  labour unions, 93, 103, 108, 119–20, 130, 159, 194

  Lahoti, Rahul, 50

  laissez-faire capitalism, see free-market capitalism

  land enclosure and improvement, 74–79, 81–85, 91

  land grabs, 81–82, 111–12, 202, 203, 221, 222–23, 253, 257, 258–59, 321n

  agriculture and, 223–24, 255

  climate change and, 256

  corruption and, 223

  definition of, 220

  deforestation and, 224–26

  Land Matrix, 222, 224, 321n

  land reform, 106, 108, 111, 112, 124

  Lane, Charles, 51–52

  Larosière, Jacques de, 144

  Las Casas, Bartolomé de, 67

  Latin America:

  developmentalism in, 105–6, 122–23

  European colonialism in, 18, 19, 67–70, 72

  foreign debt in, 142

  income inequality in, 107, 152

  independence movement in, 94–95, 302–3n

  land grabs in, 111, 112

  loss of potential GDP in, 150

  neoliberalism in, 126–28

  poverty in, 50, 151

  regional economic integration in, 258

  structural adjustment in, 149

  sumak kawsay in, 284–85

  US GDP per capita vs., 165, 165, 313n

  US Good Neighbor policy and, 104–5

  US interventions in, 18, 24, 95, 110–13, 124

  US investment in, 124

  La Via Campesina, 258–59

  leakages (form of capital flight), 26, 289n

  Least Developed Countries (LDCs), 139, 315n

  Lebanon, 104, 167

  Leopold II, King of Belgium, 91–92

  liberalisation, economic, 40, 52, 112–13, 114, 145, 149, 153–54, 171–72, 179, 180, 183–84, 186, 188, 200

  see also free trade, theory of

  Liberia, 215, 223

  Libya, 207–8

  life expectancy, 64–65, 77, 107, 272, 296n

  Locke, John, 80–81

  Lumumba, Patrice, 115

  Maddison, Angus, 86

  malaria, 34, 36, 190, 231

  Mali, 182–83

  Mandela, Nelson, 117, 173

  market saturation, 158–60, 162

  Marx, Karl, 19, 73, 179

  material throughput, 267–68

  maternal mortality, 14, 34, 36, 287n, 292n

  Mayans, 64

  M’ba, Léon, 117

  meningitis, 231

  methane, 270

  Mexico, 47, 67–68, 69, 95, 143, 145, 151, 193–94, 218

  Middle East, 106, 140, 165, 285

  Milanović, Branko, 51

  Millennium Declaration, 33, 37

  Millennium Development Goals (MDG), 15–16, 23, 50, 57, 59, 63

  child and maternal mortality rates and, 34, 36, 292n

  hunger and, 33, 34, 43–47

  misleading statistics of, 42, 43, 46

  poverty and, 33–34, 37–39, 39, 42, 47, 48

  minimum wages, 202, 203

  global, 252–53, 258

  Mitterrand, François, 117

  Mobutu Sese Seko, 115–16

  Mohammad Reza Pahlavi, Shah of Iran, 110

  Monroe Doctrine, 95, 105, 112

  Montezuma, Aztec emperor, 67–68

  Mont Pèlerin Society, 120

  Mossadegh, Mohammad, 109–10

  Multilateral Debt Reduction Initiative, 171

  Nasser, Gamal Abdel, 106, 107

  National Academy of Sciences, US, 282

  National Bureau of Economic Research, 253

  National Health Service, UK, 103, 159

  nationalisation, 106, 108, 110, 114, 116, 124, 194–95

  national sovereignty, 104, 138, 194, 196, 198, 199

  Native Americans, see indigenous Americans

  Native Lands Act (1913), 92–93

  Nehru, Jawaharlal, 106, 107

  Neo-Colonialism: The Last Stage of Imperialism (Nkrumah), 115

  neoliberalism, 121–22, 123, 126–31, 144, 164, 172, 176, 204–5, 217, 258

  Neto, Angotinho, 117

  New Alliance for Food Security and Nutrition, 223–24, 255

  New Deal, 102–3, 120, 158

  New Development Bank, 246

  New Economics Foundation, 50, 245, 275, 279

  New International Economic Order (NIEO), 138–39

  New York Times, 194

  NGOs, see development industry

  Nicaragua, 95, 96, 113

  Niger, 48, 118

  Nigeria, 90, 118, 151

  Nightingale, Florence, 83–84

  1984 (Orwell), 33

  nitrous oxide, 270

  Nixon, Richard, 124, 128, 140

  Nkrumah, Kwame, 106, 107, 114–15

  Non-Aligned Movement, 107, 114, 115, 139, 187

  North, global:

  average incomes in, 2

  climate change and, 228,

  “climate debt” owed to South by, 231–32

  overconsumption in, 262

  wealth transfer from South to, 166–67

  see also inequality, global

  North Africa, 106, 165

  North American Free Trade Agreement (NAFTA), 193–97

  Norwegian School of Ecnomics, 24

  Nyerere, Julius, 106

  Obote, Milton, 116

  Occidental Petroleum, 197–98

  OECD (Organisation for Economic Co-operation and Development), 166, 275

  offshore accounts, 115, 170, 210, 211

  oil prices, 128–29, 137, 140, 141, 142–43, 159, 219

  Opium Wars, 87–88, 175, 205

  Organization of African Unity, 169

  Organization of Petroleum Exporting Countries (OPEC), 128–29, 137, 140

  Ortega, Daniel, 113

  Orwell, George, 33

  over-accumulation, crises of, 158–60, 162

  Oxfam, 16, 222, 231

  Palestine, 30–31

  Pan-Africanism
, 115

  Panama, 96, 113, 215

  Paris Agreement:

  as lacking limits on fossil fuel use, 233, 257

  voluntary pledges in, 232–33, 256, 269

  warming thresholds in, 232–33, 256, 269, 271, 272

  Patel, Shailja, 99

  patents, 12, 26, 29, 187–91, 224, 250–51

  Perón, Eva, 106

  Perón, Juan, 105–6

  Peru, 68, 94, 226

  pharmaceutical companies, patents of, 12, 26, 29, 189–91, 250

  Philippines, 227

  Pinochet, Augusto, 125

  Pizarro, Francisco, 68

  Pogge, Thomas, 42, 47

  Pollin, Robert, 149

  Portugal, 90, 91, 116–17

  Positive Money, 277

  postcolonial world, see South, global

  Potosi, Bolivia, 68

  poverty:

  and conundrum of charity, 241–43

  development industry’s failure to eradicate, 13, 14–15, 244

  development myth and, 30–32

  direct cash transfers and, 280

  foreign debt and, 167, 172

  GDP growth and, 55–56, 266

  global economic system and, 12–13

  global increase in, 2, 17

  good news narrative about, 34–35, 39

  land enclosure and, 77, 79

  as legacy of colonialism, 30

  Millennium Development Goals and, 33–34, 37–39, 39, 42, 47, 48

  misleading statistics on, 15–16, 35, 36–43, 39, 47–51, 49, 57–59

  moral issues of, 38–39, 47

  North-South divide in, 32

  politics of, 35–36

  Rome Declaration and, 37

  Sachs’s blame-free theory of, 23–24

  standard measures of, 15–16

  structural adjustment and increase in, 149, 151, 257

  traditional explanations for, 17, 244

  in US, 266

  poverty lines, 39–40

  international (IPL), 40–42, 47–51, 56, 57

  national, 47–49, 50, 252

  Poverty Reduction Strategy Papers, 157, 208

  Prebisch, Raúl, 105, 122, 134

  Prebisch-Singer hypothesis, 301n

  Pritchett, Lant, 50

  privatisation, 144–45, 161–62

  property, labour theory of, 80–81

  protectionism, 154, 174–75, 176, 179, 180–81, 184–85

  Puerto Rico, 95, 208

  purchasing power parity (PPP), 41, 58

  Qianlong, Emperor of China, 86–87

  racism, colonialism and, 94

  rainfall patterns, 230–31

  Ravallion, Martin, 39–40

  Reagan, Ronald, 129–30, 159

  REDD (emissions reduction programme), 225–26, 255–56, 259

  Reddy, Sanjay, 42, 50

  renewable energies, 233, 236, 257, 270

  resources, depletion of, 261–62, 265–73

  Rhodes, Cecil, 89–90

  Ricardo, David, 177

  Road to Serfdom, The (Hayek), 120

  Rodale Institute, 282

  Rome Declaration, 37

  Roosevelt, Franklin Delano, 102, 104, 112

  Roosevelt, Kermit, 110

  Roosevelt, Theodore, 95

  Roosevelt Corollary (1904), 95

  Rosling, Hans, 34

  Rostow, Walt Whitman, 20, 24

  rubber trade, 91–92

  rule of law, FTAs and, 198, 199

  Sachs, Jeffrey, 23, 172

  Sanders, Bernie, 51–52

  Sankara, Thomas, 169–70, 260

  Sano, Yeb, 227–28

  Saudi Arabia, 141

  Savimbi, Jonas, 117

  School of the Americas, 113

  Science, 282

  Scotland, 274

  scramble for Africa, 90–91

  Second Treatise of Government (Locke), 80–81

  seeds, high-yield, 231

  patents on, 224, 251, 259

  Segal, Paul, 52, 53

  sex trade, 185–86, 187

  shareholder returns, maximising of, as legal imperative, 275–76

  Shleifer, Andrei, 204

  silver, Spanish conquest and, 68–70

  slaves, slavery:

  Africans as, 70–72, 298–99n

  indigenous Americans as, 67, 68–69, 70

  Industrial Revolution as facilitated by, 18–19

  Smith, Adam, 73, 175

  Social Security, 103

  social services, in global South, 21

  repayment of foreign debt given priority over, 12, 144–45, 148, 153, 166–67, 244

  soils:

  degradation of, 262, 266, 270, 282

  regeneration of, 282–83

  Soros, George, 243

  South, global:

  alternatives to standard development model in, 283–85

  average incomes in, 2, 149

  bank loans to, 141–42

  basic minimum income in, 280

  capital controls in, 108, 112, 114

  capital outflows from, 24–30, 27, 145, 166–67, 210–12, 214, 217, 254, 258

  as captive market for European goods, 73

  climate change and, 29, 228, 231–32, 257, 271–72

  corruption in, see corruption; tax evasion

  cost of goods and labour in, 28

  debt crisis in, 143–46

  decolonisation in, 104, 302–3n

  developmentalism in, see developmentalism

  European plunder of, 66–73

  financial crisis of 2008 and, 208

  foreign debt in, see foreign debt

  foreign ownership of land in, 29

  IMF and World Bank’s unspoken goals in, 157–58

  IMF riots in, 152–53

  income collapse and GDP growth in, 164

  income inequality in, 16

  Keynesianism and, 105

  land grabs in, see land grabs

  land reform in, 108, 111, 112

  life expectancy in, 107

  low wages relative to North in, 96–97

  nationalisation in, 106, 108, 110, 114, 116, 124, 194–96

  1960s–70s income growth in, 106

  Non-Aligned Movement in, 107, 114, 115

  political power and, 138, 139, 172

  privatisation in, 144–45

  self-directed economic and social policies in, 19–21

  social services in, see social services, in global South

  structural adjustments imposed on, see structural adjustment programmes

  tariffs on foreign imports in, 106, 108, 114, 304–5n

  third way policies in, 107

  trade union movement in, 108

  2007 food-price crisis in, 44, 218–19

  unequal exchange in, 165–66

  US-backed dictatorships in, 113, 142

  US GDP per capita vs., 164–65, 165

  South Africa, 246

  AIDS crisis in, 189

  apartheid regime in, 93, 117

  labour costs in, 93

  land enclosure in, 91, 92–93

  poverty in, 94

  reserve system in, 92–93

  South Centre, 258

  South Sudan, 222, 224

  sovereign immunity, 195–98

  Soviet Union, 7, 120

  Spanish conquest of America, 67–70

  spatial fixes, 162

  Spectator, 35–36

  Stages of Economic Growth, The (Rostow), 20

  stagflation, 128–29

  standard of living, 64, 88

  Starbucks, 243, 323n

  Steinbeck, John, 223

  Stiglitz, Joseph, 156

  Stockholm Environment Institute, 232, 257

  stock market crash of 1929, 100

  Strike Debt, 258

  structural adjustment programmes (SAPs), 21–22, 28, 40–41, 42, 52, 59, 144–57, 177, 186–87, 195, 207, 208, 243, 260, 310n

  debt cancellation and, 245, 246

  debt repayment prioritised over publ
ic services in, 144–45, 148, 153, 166–67

  as fix for crisis of over-accumulation, 159–60

  IMF riots and, 152–53

  increase in poverty under, 149, 151

  insiders’ criticisms of, 156–57

  loss of potential GDP under, 149, 150

  as profitable for Western corporations, 161

  transfer of power from South to West in, 147, 172

  as undoing of developmentalist progress, 145–47, 148–49, 153–54

  unequal exchange and, 165–66

  wealth redistribution and, 161

  World Bank and, 147–48

  sub-prime mortgage crisis, 219

  subsidies, double standards for, 182–83

  sugar, in slave economy, 18, 71–72

  Suharto, 114

  Sukarno, 107, 113–14

  sumak kawsay (living in harmony), 284–85

  supply and demand, 97

  supply-side economics, 130–31

  Supreme Court, U.S., 275

  Sustainable Development Goals (SDGs), 57–59

  Swaziland, 1, 11–13, 184–86, 187, 188–89, 240

  Syria, 104, 106, 140, 285

  Tandon, Yash, 183

  Tanzania, 91, 106, 224

  tariffs, 86, 96, 106, 108, 114, 145, 154, 174–76, 179, 180–85, 203, 249

  tax evasion, tax havens, 210, 211, 213, 214–17, 243, 253, 254, 258–59, 281

  Tax Justice Network, 258

  technologies, patents on, 26, 29, 187–88

  Tenochtitlán, 67–68

  textile industry, 184–86, 280

  Thatcher, Margaret, 130

  Third World Debt Crisis, 143–46

  Third World Network, 258

  This Changes Everything (Klein), 236

  Thoreau, Henry David, 239

  Time, 23, 114

  Tobin, James, 281

  trade:

  abusive transfer pricing in, 26, 289n

  bilateral agreements on, see free-trade agreements

  capital flows in, see capital flows

  cost of goals and labour in, 28

  fairness in, 249–52, 260

  flow of goods in, 24–25, 199–200

  liberalisation of, 179, 183–84

  tariffs in, see tariffs

  unequal exchange in, 28, 96–97, 105, 143, 165–66, 290–91n, 301n

  see also free trade; World Trade Organization

  trade misinvoicing, 26, 210, 211–13, 254, 287n

  trade mispricing, 214

  Transatlantic Trade and Investment Partnership (TTIP), 198–99

  transfer mispricing, 212–13, 254

  Trans-Pacific Partnership (TPP), 198, 199, 208

  Transparency International, 210

  Corruption Perception Index of, 209, 217–18

  TRIPS (Trade-Related Aspects of Intellectual Property Rights), 25–26, 187–91, 192, 250, 315n

  Truman, Harry, development and, 8, 10, 12, 17–18, 19, 131–32

  Ubico, Jorge, 110–11

  Uganda, 116

  unemployment, 151, 185–86, 253, 279

  unequal exchange, 28, 96–97, 105, 165–66, 290–91n, 301n

  United Fruit Company, 111

  United Kingdom, 49, 232, 265, 277

  see also Britain

 

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