How rich countries drain the world
How can a wealthy country increase its material wealth at the expense of a less wealthy country without resorting to genocide and plunder? By forming trade alliances under the guise of economic cooperation and mutual benefit. Sounds far-fetched? High-income countries (HICs) consistently import far more materials, energy, land, and labour than they export. For instance, from 1990 to 2015, HICs accumulated 215 billion tons of raw materials beyond their domestic extraction capabilities. In contrast, low-income countries (LICs) and lower-middle-income countries (LMICs), including India, net-exported nearly 90 billion tons of raw materials during the same period. Moreover, HICs not only drain resources but also underpay, as shown by the last graph (TiVA). Traditional trade accounts suggest a simple exchange of money for resources, but in reality, both material and monetary gains flow in the same direction—towards the HICs.