UK's Richest People Accumulated Wealth Through Colonialism, MNCs Continue To Exploit Global South Like East India Company: Oxfam Report

Over the course of colonialism from 1765 to 1900, the United Kingdom (UK) drew an astounding $ 64.82 trillion from India, as per the latest annual report on global inequality by rights group Oxfam International.

Of this massive sum, $ 33.8 trillion was appropriated by the wealthiest 10 per cent. To put this into perspective, this amount of money could cover the city of London nearly four times over in 50-pound notes.

The 'Takers, not Makers' report, unveiled on Monday (20 January) just hours before the commencement of the World Economic Forum Annual Meeting, where global elites are expected to participate.

The report references numerous studies and research papers to assert that modern multinational corporations are solely a product of colonialism as it said, "Legacies of inequality and pathologies of plunder, pioneered during the time of historical colonialism, continue to shape modern lives."

“This has created a deeply unequal world, a world torn apart by division based on racism, a world that continues to systematically extract wealth from the Global South to primarily benefit the richest people in the Global North," Oxfam said.

In the UK, a significant number of the richest people today can trace their family wealth back to slavery and colonialism, specifically the compensation paid to rich enslavers when slavery was abolished, it added.

Oxfam pointed out that the current multinational corporation (MNC) was birthed from colonialism, with companies like the East India Company leading the way. The East India Company, which essentially operated by its own rules, was accountable for numerous colonial offenses.

"In the modern day, multinational corporations, often occupying monopoly or near-monopoly positions, continue to exploit workers in the Global South, particularly women workers, on behalf of rich shareholders primarily based in the Global North," it said.

Modern colonial systems of wealth extraction from the south to the north are embodied in global supply chains and export processing industries. The report indicated that employees within these supply chains often endure substandard working environments, are devoid of collective bargaining rights, and have scant social protection.

Oxfam reported that for work requiring the same skill level, wages in the Global South are significantly lower, ranging between 87 to 95 per cent, compared to those in the Global North.

Oxfam states that global supply chains are primarily controlled by substantial MNCs. These corporations profit from inexpensive labor and the ongoing resource extraction from the Global South. They retain the lion's share of profits and maintain a cycle of dependence, exploitation, and control through economic strategies.

Oxfam reported that during the period of colonialism from 1765 to 1900, the UK took a significant amount of money from India. The wealth was not only beneficial to the richest but also greatly advantaged the emerging middle class.

Following the wealthiest 10 per cent, who garnered 52 per cent of the income, the emergent middle class was allocated an additional 32 per cent of the income.

In addition, around the year 1750, nearly a quarter of the world's industrial production was attributed to the Indian subcontinent. The Oxfam report highlighted that by 1900, this number had dramatically dropped to just 2 per cent.

Oxfam stated that the significant decrease is due to Britain imposing strict protectionist measures against Asian textiles. These policies systematically hampered the potential for industrial growth in India.

Interestingly, it was a worldwide conflict that temporarily mitigated this industrial oppression. During the First World War (1914-1918), the disturbance of colonial trade routines unintentionally spurred industrial expansion in the colonies, according to Oxfam.

Areas that experienced considerable reductions in British imports during the conflict showed an increase in industrial job growth - a trend that remains evident in the present day.

Oxfam additionally noted that private multinationals frequently spearheaded colonialism, often benefiting from granted monopolies and reaping substantial profits from their expansion overseas.