A recent report titled "Takers, Not Makers," by the rights group Oxfam launched some startling numbers. Between 1765 and 1900, the UK extracted a whopping $64.82 trillion from colonial India. The richest 10% of Britons walked away with $33.8 trillion of this amount. Just how much money is that? According to Oxfam, it's enough to cover London's surface area with £50 notes almost four times!
Who benefited the most from colonialism?
Oxfam's report shows who benefited the most from this enormous wealth transfer. The richest 10% of Britons pocketed 52% of the income extracted from India. But that was not all. The newly emerging middle class in the UK also got a major share, claiming 32% of the income.
How did colonialism affect India's economy?
The report emphasizes the economic devastations that colonialism had brought to India, especially to its industrial sector. In 1750, India was producing around 25% of the world's industrial output. However, by 1900, that figure had declined to a mere 2%. Oxfam places the blame squarely on the protectionist policies that the British imposed on Asian textiles and thus strangled India's industry.
The Opium trade
Oxfam accused colonial powers such as the Dutch and British of the opium trade in order to hold their colonies. The British were especially involved in large-scale poppy cultivation in eastern India, which was then exported to China. This led to the infamous Opium Wars and what is known as China’s "century of humiliation."
Are MNCs following colonial footsteps?
The report draws an analogy between colonial exploitation and the current practices of multinational corporations. In its argument, Oxfam reminds people that the inequality and exploitation found during colonial times exist today. In particular, it illustrates how wages in the Global South have far lower welfare as compared to the Global North for work demanding the same skills. It has been described how the modern English East India Company is, for instance, the result of some colonial practice that is claimed to be a "law unto itself" and a firm perpetrator of many "colonial crimes."
What does it mean for the world today?
Oxfam's findings indicate a very unequal world shaped by the legacies of colonialism. The report points out that these historical inequalities are affecting people today, with wealth still flowing from poorer countries in the Global South to the richest in the Global North. This has led to continued divisions based on race and economic disparity.
Oxfam's report asks for a re-examination of how colonial history has shaped modern-day inequality and the global economic system, asking for changes to address these deep-rooted issues.