In his book titled “The Divide: A Brief Guide to Global Inequality and its Solutions,” Jason Hickel delves into some of the past historical processes and events that were responsible for the massive contemporary global poverty and inequality. Hickel also argues that one can trace the origins of this division to colonialism, which represents the seed of an international economic mechanism that can only be better defined as exploitation. According to Hickel, global poverty and inequality are not natural phenomena; they are political problems caused by imperialism, colonialism, and globalization.
According to “The Divide,” colonialism has played a significant role in disseminating global poverty and inequality by extracting valuable resources from colonized nations, leaving them impoverished. European powers were able to colonize different territories extracting wealth from these countries through forced labor (Hickel, 2017). Hickel notes that poor countries are poor because they are unified in the global economic system on unequal terms. According to the author, global poverty started at the time of Columbus in the 1490s (Hickel, 2017). From then, aid has been given to poor countries, and such relief only conceals the deep structures of wealth extraction that cause poverty and inequality in the first place, including rigged trade deals, tax evasion, seizure of lands, debt burdens, and the cost implications of climate change. It was in the time of Columbus in the 1490s and up to the international debt regime, which has enabled a few wealthy nations that could virtually monopolize economic policy in the entire world. Hickel points out that colonialism continues today through neocolonial practices like debt burdens and unfair trade agreements that are imposed on developing nations, increasing poverty levels and inequality all over the world. Former colonies are struggling to recover their stability from exploitation, thus the global poverty and inequalities.
Hickel notes that imperialism has also further aggravated global poverty and inequality by establishing a system where controlling nations exploit feeble ones to their advantage. According to “The Divide,” capitalization through forced labor and resource exploitation was used by colonial powers like France, the US, and Britain to amass wealth in developing countries (Hickel, 2017). For instance, there is the scramble for Africa where imperial powers exploited resources from Africa, establishing dominance over the local people, leaving them impoverished. This method not only left the colonizing nations in poverty but, rather, presented a global polarization disparity in wealth distribution between the North and Southern hemispheres. The history of Africa has been full of the drag and bloc of the colonist forces that fought very hard to conquer the people of the continent at all costs. It really took a long time to destroy the entire subtle established by the colonists. Former colonies have become, to a certain, more vulnerable because the former colonist powers continue to act so in their former colonies after they leave them in poverty. Powerful nations exploit weak nations, and this is evident with the presence of unequal distribution of wealth and resources all over the world, with developing countries suffering while the most powerful nations controlling the world’s resources (Hickel, 2017). The effects of imperialism can be witnessed through the current economic dependency of developing nations on imperial powers because they are struggling with poverty and inequality.
In addition, Hickel points out how neoliberal economic policies brought about by international financial institutions, mainly the International Monetary Fund and the World Bank, have worsened poverty levels and inequality in most developing countries in the world (Hickel, 2017). These institutions support free trade policies, relaxation of regulatory systems, and restrictions of countries against secret debts that would work to the advantage of multinationals but cause a loss to local communities. As a result of such structural adjustment programs, public services in these countries have been privatized, and governments cut social welfare spending, pumping yet more debt into developing countries. This shows how historical processes have significantly contributed to poverty and inequality all over the world.
Furthermore, the theory of globalization essentially leads to the increase of inequality and poverty in the world (Hickel, 2017). Transnational corporations take advantage of the pocket labor in the lesser developed countries, and amass huge profits in the tax free-docks. This is because the situation that has come about since the struggle has only led to the concentration of wealth in shockingly few hands while most people remain in the poverty trap. Neoliberal economic policies have significantly contributed to increased wealth concentration in multinational corporations and powerful nations at the expense of local nations that are still struggling with poverty. These corporations exploit developing nations through cheap labor while gaining profits for their countries and this has deeply widened the gap between rich and poor countries (Hickel, 2017). From this, it is evident that most countries are still poor because of historical global processes orchestrated by colonial powers, and this has left a lasting effect on third world countries.
To support his argument that historical global processes and events have contributed significantly to contemporary global poverty and inequality, Hickel presents evidence through statistical data on income inequality in the world. The author provides evidence on resource extraction from developing countries by powerful nations and case studies on how multinational corporations like the World Bank and the International Monetary Fund have led to increased wealth concentration in powerful nations due to neoliberal policies established by colonialism (Hickel, 2017). Most importantly, Hickel talks about the colonization of Africa and how this event led to an increase in poverty and inequality not only in African countries but globally.
The consequences and significance of imperialism, colonialism, and globalization contributing to the production of global poverty and inequality are severe. Due to this, billions of people in developing countries are living in extreme poverty, while a few powerful nations enjoy unprecedented affluence (Hickel, 2017). Unequal wealth distribution caused by imperialism, colonialism, and globalization leads to political instability, social unrest, and environmental degradation because of the extraction of resources. Furthermore, it disseminates cycles of poverty by denying developing nations access to basic amenities, including quality healthcare and education. According to Hickel, since poverty is a political issue, it needs a political solution (Hickel, 2017). “The Divide” gives a variety of answers which can be suggestive, but Hickel also notes that something much even more radical, like a revolution in our mindset, is required to end poverty and inequality all over the world. Understanding imperialism, colonialism, and globalization and how they contributed to global poverty and inequality is vital in addressing the issues effectively (Hickel, 2017). This requires accurate knowledge of the historical injustices that led to this and advocating for fair and just trade policies that prioritize the well-being of all nations, including poor countries, over corporate profit. A collective effort should be made to dismantle the colonial systems that led to global inequality and poverty and replace them with fair policies and systems that valued human well-being.
In essence, “The Divide” is a bold, timely, and inspiring book that gives a careful analysis of the historical global processes and events have significantly contributed to contemporary global poverty and inequality. Hickel points out that poverty and inequality are man-made and not a natural phenomenon. In addition, in “The Divide,” Hickel highlights the historical ripple effect which has left a lasting impact of spoiling the modern life and retarding the growth of people in most third world countries due to poverty and inequality. According to “The Divide,” historical processes like imperialism, colonialism, and globalization have played a significant role in exacerbating contemporary global inequality and poverty. Hickel’s book provides a comprehensive analysis how these specific processes have and are still causing global poverty and inequality.
References
Hickel, J. (2017). The Divide: A Brief Guide to Global Inequality and its Solutions. William Heinemann.
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