The Divide

1. The "Development" Narrative Obscures Historical Exploitation

The idea of a natural divide misleads us from the start.

Challenging the Status Quo. The conventional story of "development" suggests that rich countries are ahead on a natural path of progress, while poor countries are simply lagging behind. This narrative conveniently ignores the historical context of colonialism, slavery, and unequal trade, which have actively impoverished the Global South.

A False Dichotomy. In 1500, there was no significant difference in living standards between Europe and the rest of the world. The vast disparities we see today are not a natural phenomenon but a result of deliberate policies and exploitation that have enriched the West at the expense of the Global South.

• Colonialism: Extraction of resources and labor from colonies fueled European industrialization.
• Unequal Trade: Forced trade agreements that favored Western powers and disadvantaged developing nations.

Re-framing the Narrative. Understanding the historical roots of global inequality is crucial for dismantling the false narrative of "development" and recognizing the ongoing patterns of exploitation that perpetuate poverty.

2. Poverty Isn't Falling; It's Being Re-Defined

No story can survive very long when it runs so obviously against the grain of reality.

Statistical Manipulation. The claim that global poverty has been halved is based on misleading statistics and shifting goalposts. The UN's Millennium Development Goals (MDGs) redefined poverty to focus on proportions rather than absolute numbers, backdated the baseline year, and primarily counted gains made in China.

A More Realistic Measure. The standard poverty measure of $1.25 per day is inadequate for human existence in many countries. A more realistic "ethical poverty line" of $5 per day reveals that over 4.3 billion people live in poverty, and the numbers have been growing.

• $1.25/day: Insufficient for basic nutrition and survival in many regions.
• $5/day: A more realistic measure reflecting the cost of basic human needs.

The Inequality Explosion. While the official narrative claims poverty reduction, inequality has been exploding. The gap between the richest and poorest countries has tripled since 1960, and the wealthiest individuals now control more wealth than the poorest half of the world's population combined.

3. Colonialism Created the Divide Between Rich and Poor

The divide between rich countries and poor countries isn’t natural or inevitable. It has been created.

Rewriting History. The conventional story of the Industrial Revolution focuses on technological innovation in Europe, ignoring the crucial role of colonial exploitation in providing resources, labor, and markets. This narrative erases the violence and coercion that underpinned Western economic growth.

Theft and Dispossession. The plunder of Latin America, the slave trade, and the forced dispossession of peasants in India and elsewhere were essential for Europe's rise. These actions led to the deaths of millions and the destruction of local economies.

• Latin America: Plunder of resources and genocide of indigenous populations.
• Africa: Slave trade and loss of labor power.
• India: Destruction of local industries and forced agricultural production.

Development for Some, Underdevelopment for Others. The economic growth of the West was directly linked to the underdevelopment of the Global South. Colonialism created a system of dependency that continues to shape global inequality today.

4. Aid Hides Patterns of Extraction

Colonialism and imperialism have not settled their debt to us once they have withdrawn from our territories.

The Myth of Benevolence. Rich countries often portray themselves as saviors of the poor through aid programs. However, the financial resources that flow out of poor countries vastly outweigh the aid they receive.

Reverse Aid. Developing countries send trillions of dollars more to the rest of the world than they receive, primarily through debt payments, profit repatriation by foreign investors, and capital flight.

• Debt Payments: Poor countries pay billions in interest on old loans.
• Profit Repatriation: Foreign investors extract profits from developing countries.
• Capital Flight: Illegal transfer of money out of developing countries.

Structural Losses. The aid narrative distracts from the broader patterns of extraction that cause impoverishment. Structural adjustment programs, unfair trade agreements, and climate change damages inflict far greater losses on the Global South than aid can compensate for.

5. Coups D'état Halted Progress in the Global South

No one colonises innocently.

Undermining Sovereignty. After gaining independence, many Global South countries pursued their own development agendas, implementing protectionist and redistributionist policies that led to economic growth and poverty reduction. However, these policies threatened Western economic interests.

Intervention and Overthrow. The United States and other Western powers intervened covertly to overthrow democratically elected leaders across the Global South, replacing them with dictators friendly to Western economic interests.

• Iran (1953): Overthrow of Mohammad Mossadegh for nationalizing oil.
• Guatemala (1954): Overthrow of Jacobo Árbenz for land reform.
• Brazil (1964): Overthrow of João Goulart for progressive policies.

A Pattern of Interference. These coups gave the lie to the story of Western benevolence and demonstrated the lengths to which rich countries would go to maintain their economic dominance.

6. Debt Became a Tool for Neocolonial Control

There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.

A New Form of Domination. In the 1980s, Western powers discovered they could use their power as creditors to dictate economic policy to indebted countries in the Global South, effectively governing them by remote control.

Structural Adjustment Programs. Leveraging debt, they imposed "structural adjustment programs" that reversed all the economic reforms that Global South countries had painstakingly enacted. These programs forced open markets, cut social spending, and privatized public assets.

• Austerity: Cuts in public spending on healthcare, education, and social services.
• Privatization: Sale of state-owned enterprises to foreign investors.
• Liberalization: Removal of trade barriers and capital controls.

Devastating Consequences. Structural adjustment led to economic contraction, rising poverty, and increased inequality in the Global South. It also benefited the economies of the North by opening up new markets and sources of cheap labor and resources.

7. Free Trade Agreements Perpetuate Inequality

Only free men can negotiate. Prisoners cannot enter into contracts.

The Illusion of Fairness. Free trade agreements, such as the WTO, are often presented as a way to create a "level playing field" for all countries. However, these agreements often enshrine policies that benefit rich countries at the expense of the Global South.

Unequal Rules. Global South countries are forced to abolish their agricultural subsidies, while the United States and the European Union are allowed to continue paying subsidies to their own farmers, enabling them to undercut the market share of Global South producers.

• Agricultural Subsidies: Rich countries maintain subsidies that harm Global South farmers.
• Intellectual Property Rights: TRIPS agreement locks life-saving medicines and essential technologies behind patent paywalls.

The Cost of Imbalance. Power imbalances enshrined in trade agreements cost poor countries billions of dollars each year in lost export revenues. These agreements perpetuate a system of unequal exchange that benefits the rich and impoverishes the poor.

8. Tax Havens Enable Illicit Financial Flows

The wealth of the imperialist nations is also our wealth. Europe is literally the creation of the Third World.

A Global Drain. Tax evasion and illicit financial flows drain trillions of dollars out of developing countries each year, far exceeding the amount of aid they receive. This illicit activity is facilitated by tax havens and secrecy jurisdictions.

Mechanisms of Theft. Multinational corporations use trade misinvoicing and abusive transfer pricing to shift profits illegally between their own subsidiaries in different countries, evading taxes and laundering money.

• Trade Misinvoicing: Reporting false prices on trade invoices to spirit money out of developing countries.
• Abusive Transfer Pricing: Shifting profits illegally between subsidiaries to evade taxes.

The Role of Tax Havens. Tax havens provide a safe haven for illicit funds, shielding them from taxation and regulation. These havens are often located in wealthy countries or their dependencies, highlighting the complicity of the Global North in facilitating tax evasion.

9. Land Grabbing Displaces Communities and Destroys Livelihoods

Colonialism and imperialism have not settled their debt to us once they have withdrawn from our territories.

A New Scramble for Resources. In recent years, there has been a surge in land grabbing, with foreign investors acquiring vast tracts of land in developing countries for agricultural production, mining, and other commercial activities.

Dispossession and Displacement. Land grabs often lead to the displacement of local communities, who lose their access to land, water, and other resources. This can result in increased poverty, food insecurity, and social unrest.

• Loss of Livelihoods: Small farmers are forced off their land and into precarious wage labor.
• Environmental Damage: Land grabs often lead to deforestation, soil degradation, and water pollution.

The Role of Agribusiness. Agribusiness corporations are major drivers of land grabbing, seeking to expand their operations and increase their profits. These corporations often receive support from governments and international institutions.

10. Climate Change Exacerbates Global Inequality

Colonialism and imperialism have not settled their debt to us once they have withdrawn from our territories.

Unequal Burden. While rich countries are primarily responsible for causing climate change, the costs of climate change fall disproportionately on poor countries, which are more vulnerable to its impacts.

Devastating Consequences. Climate change is causing increased droughts, floods, storms, and other extreme weather events, which are devastating communities and economies in the Global South.

• Food Insecurity: Climate change is reducing crop yields and increasing hunger.
• Disease: Climate change is exacerbating the spread of infectious diseases.
• Displacement: Climate change is forcing people to migrate from their homes due to rising sea levels and extreme weather events.

A Climate Debt. Rich countries owe a "climate debt" to poor countries for the damage they have caused. This debt should be repaid through financial and technical assistance to help developing countries adapt to climate change and transition to a low-carbon economy.

11. Justice, Not Charity, Is the Path to Real Change

The arc of history bends towards justice, Martin Luther King Jr once said. But it won’t bend on its own.

Beyond Band-Aids. The charity paradigm obscures the structural drivers of global poverty and inequality. Instead of focusing on aid and charity, we need to target the underlying architecture of wealth extraction and accumulation.

A Call for Systemic Change. Addressing global poverty requires a revolution in our way of thinking. We need to challenge the dominant narrative of development and demand a fairer global economic system.

• Debt Cancellation: Abolish the debt burdens of developing countries.
• Democratize Global Institutions: Give Global South countries a fair voice in the World Bank, IMF, and WTO.
• Fair Trade: Implement trade policies that prioritize development over corporate profits.
• Tax Justice: Close tax havens and crack down on illicit financial flows.
• Climate Justice: Compensate developing countries for climate change damages and support their transition to a low-carbon economy.

A New Vision. By pursuing these political solutions, we can create a world where poverty is not just alleviated but eradicated, and where all people have the opportunity to live with dignity and justice.

Last updated: April 23, 2025