Oxfam International’s latest flagship global inequity report, titled “Takers, Not Makers”, has provided a stark reflection on the historical and modern-day economic exploitation rooted in colonialism. The report, launched on the first day of the World Economic Forum (WEF) Annual Meeting in Davos, delves into the deep historical ties between colonial powers, particularly the UK, and the systems of inequality that persist today. It sheds light on how the wealthy nations of the Global North continue to benefit disproportionately from the historical exploitation of the Global South, leaving legacies that affect lives, economies, and industries even today.
Exploitation of India: A Colonized Economy
One of the most striking revelations of the report is the staggering amount of wealth extracted from India by the British during their colonial rule from 1765 to 1900. According to Oxfam, the UK siphoned off a total of USD 64.82 trillion, a sum that dwarfs even the most ambitious modern financial figures. Of this, USD 33.8 trillion was directed towards the wealthiest 10% of Britain’s population, reinforcing the colonial extraction model that benefited the British elite. To put this into perspective, this sum is enough to carpet London in 50-pound banknotes almost four times over.
The scale of this extraction highlights the enduring impact of colonialism on India’s economic development. In 1750, India accounted for 25% of the global industrial output, but by 1900, this figure had dropped to just 2%. This dramatic decline was largely driven by British policies that stifled India’s industrial growth, particularly through protectionist measures against Indian textiles, a major industry at the time. The British Empire’s economic policies essentially turned India into a supplier of raw materials for British industries while denying it the opportunity to develop its own manufacturing sector.
Colonialism’s Role in Modern Multinational Corporations
Oxfam’s report also highlights how modern multinational corporations are a direct creation of colonialism. The East India Company, which played a key role in the British colonial expansion, is cited as one of the earliest examples of a multinational corporation that operated with immense power, often above the law. These corporations laid the groundwork for today’s global corporations that dominate industries and continue to exploit workers, particularly in the Global South.
The report argues that these corporations, many of which occupy near-monopoly positions in global markets, continue to extract wealth from the Global South by exploiting cheap labor and resources. Workers in the South, especially women, are often paid wages that are between 87% and 95% lower than those in the Global North, despite performing jobs requiring equal skill. This system of exploitation ensures that the wealth generated remains concentrated in the hands of the few in the Global North.
Colonial Exploitation and the Global Wealth Divide
The exploitation of India, along with other colonies, allowed the British elite and the newly emerging middle class to amass vast fortunes. Oxfam’s report states that the richest 10% of the population were the main beneficiaries of this wealth, receiving a staggering 52% of the extracted income. The newly emergent middle class, which benefited from the colonial system, received 32% of the wealth. This distribution of wealth set the stage for the deeply unequal global economy we see today.
Even more disturbing is the idea that colonialism’s effects were not just economic but deeply social and cultural. During the colonial period, divisions based on caste, religion, gender, and race were formalized and exacerbated. In India, for instance, the caste system was reinforced through legal and administrative measures, cementing social hierarchies that continue to affect the lives of millions to this day.
The British as Colonial Drug Pushers
Another startling claim in the report is the role of the British Empire in the opium trade, which became a crucial part of British economic and colonial strategy. The British East India Company established a monopoly on opium production in India, and the drug was exported to China, triggering the Opium Wars and leading to China’s “century of humiliation.” The consequences of this trade were felt long after the colonial era, as opium-producing regions in India still suffer from lower public spending on health and education and have worse literacy rates than neighboring areas.
Biopiracy: The Exploitation of Genetic Resources
Oxfam also highlighted the issue of biopiracy, a term used to describe the unauthorized use of genetic resources from the Global South for commercial purposes without fair compensation. One example cited was the case of the US corporation WR Grace, which patented a neem tree seed extract used in antifungal sprays, despite the fact that rural Indian farmers had been using neem for centuries. After years of legal battles, the European Patent Office eventually revoked the patent, recognizing the indigenous knowledge and use of the plant.
The Legacy of Fossil Fuel Exploitation and Climate Crisis
Oxfam also links the colonial era to the modern-day environmental crisis, particularly the exploitation of fossil fuels. The extraction of oil, coal, and gas from former colonies helped fuel the industrial revolution in the West, contributing to the climate breakdown we face today. The wealth generated from these resources was never shared with the colonized nations, and now these countries are on the frontline of climate change, suffering the worst impacts of a crisis they had little role in creating.
Unequal Power Structures in Global Institutions
The report also criticizes global institutions like the World Trade Organization (WTO) and the World Bank for perpetuating a system of inequality that favors the Global North. Despite the formal equality of nations within these institutions, the Global North continues to exert significant influence. For instance, the opposition to the proposal for a waiver on intellectual property rights for COVID-19 vaccines by India and South Africa at the WTO demonstrated how rich nations prioritize corporate interests over public health in the Global South.
Moreover, the World Bank and European finance institutions are accused of promoting the privatization of essential public services in the Global South, further entrenching inequality. This has led to catastrophic outcomes in countries like India, where millions of people face crushing health expenditures due to the privatization of healthcare.
Conclusion: The Enduring Legacy of Colonialism
Oxfam’s report paints a bleak picture of the continued exploitation and inequality that arose from centuries of colonialism. The economic systems established by colonial powers have not only shaped the global economy but have also created social and political structures that perpetuate inequality. The report calls for a global reckoning with these colonial legacies and for actions that address the deep-rooted inequality that continues to affect the Global South.
In the context of modern multinational corporations, the report suggests that the colonial systems of extraction remain deeply embedded in global supply chains and labor practices. For the Global South, the path forward lies in dismantling these systems and addressing the historic injustices that continue to shape their economies and societies. Only through such measures can we begin to build a truly equitable global economy.
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