Rethinking Underdevelopment (Full Essay)

Global Inequality in its Historical Context

Walter Rodney, author of How Europe Underdeveloped Africa and many other great works (source: Wikipedia).

Part of the Economic Underdevelopment topic

            Discourse around inequality is a contentious subject that represents many conflicting interests. Consciously or not, everyone holds a stake in the debate over inequality. From the nation-state all the way down to the individual, there is a strict economic hierarchy that defines their place in the world. For those in the upper end of this distribution, it is comforting to believe that they earned their position through merit rather than privilege, and that the poorer segments of the global population are merely victims of their own personal deficiencies. This mindset is promulgated in the Global North to rationalize their disproportionate share of total wealth and to dismiss their role in the underdevelopment of the Global South.

            On a global scale, this mentality is used to maintain the current world order. Wealthy countries attribute their success to sound economic policy and national virtue. Cases involving extreme poverty in other countries are dismissed as government mismanagement or as a failure of its citizens to adopt proper political mores. While it is certainly acknowledged that external events such as colonialism did contribute to underdevelopment, these factors are greatly downplayed. The main goal of social sciences is to aid in this narrative, with the question of inequality always circling back to a matter of personal or state responsibility.

            In my own work, I have taken a radical departure from the mainstream views. A deep examination of any country, when considering the historical context, will inevitably reveal that continuous economic and military pressure from wealthy states is the primary cause of underdevelopment. Wars, authoritarianism, corruption, and maldevelopment do not occur spontaneously, but are either directly or indirectly the result of interference from the Global North. When allowed to peacefully develop, peoples around the world tend to favor democracy, equitable growth, and humanitarian principles. Generally, the most successful of the developing states have been the few that managed to resist the ideological hegemony of the Global North. These states have shown that only by adopting an internationalist mindset can we hope to escape this system of underdevelopment.

Maintaining a Culture of Inequality

            The current distribution of global wealth is a legacy of the colonial era. In the 1500s, the Spanish Empire was able to very successfully utilize political divides within the Americas to gain significant control over the indigenous people's lands. It was a series of extraordinary events that allowed this conquest to be successful, rather than any inherent superiority of the Spanish soldiers or technology. The initial European colonial expansion was the result of pure luck and was a turning point for European development. The massive influx of wealth from the Americas gave the early-modern European states a significant boost to their fledging industrialization efforts.

            The significant momentum from the Spanish plunder allowed Europe to finance incursions into Africa and Asia. The divide and conquer tactics of the Conquistadors were used as the model for subsequent colonial conquests. Regional divisions were exacerbated by the colonial powers and numerous civilizations were gradually incorporated into Europe's swelling empires. In addition to draining the colonized peoples through unequal economic exchange, the colonizers forced underdevelopment upon the advanced societies that they had conquered. Wealthy places like India had their highly successful industries dismantled in order to prevent competition with similar European industries. The colonized were thus relegated to a state of perpetual underdevelopment where they were forced to focus solely on primary resource extraction.

            From the beginning, Europe's rapid modernization came at the expense of the vast majority of humanity. Raw resources from the Third World fueled the growth of European industry. Since the colonized peoples were stripped of their ability to build up domestic industry, they were forced to export their resources at low costs while importing expensive European industrial goods. Unequal exchange led to a great drain of wealth from the Global South to the Global North. Genocidal wars, engineered famines, and widespread poverty caused the deaths of millions and the immiseration of millions more.

            Even after the Western countries had solidified their position on the top of the economic hierarchy, there was considerable effort on the part of their governments to suppress Global South development. Throughout the evolution of Western industry, heavy government intervention was used to promote their fledging industries and protect them from outside competition. When post-colonial Third World states attempted to enact the same policies to grow their own industries, these efforts were constantly thwarted by economic sanctions, clandestine regime change operations, and direct military invasions. This violent system remains in place to this day, dooming all but a handful of states to a permanent state of underdevelopment.

            To the average laymen, the historical facts from above would likely have them reach the conclusion that unequal exchange is the primary culprit behind global inequality. Upon accepting this worldview, basic human empathy tends to make individuals sympathize greatly with the oppressed masses of the exploited countries. Any political mindset that runs counter to the popular theories of unequal exchange would thus have to unfairly blame Third World poverty on poor administrative decisions by their governments while attributing First World success to sound economic policies. In other words, any justification of the current state of affairs would be correctly identified as a form of Western chauvinism.

            Ideological domination of the civilian population is vital in maintaining the political domination of the Global North over the Global South. For this reason, residents of the First World must be heavily conditioned into accepting a much more cynical worldview regarding development. Social divisions are promoted as a natural part of life. The corruption that holds back development in poorer countries, both within and without, is said to be an inherent trait of human governance. The basic concept of unequal exchange, with its strong material explanations and numerous historical precedents, is downplayed in discourse over problems of development. Historical materialism is substituted with an absurd metaphysical understanding of the world.

            All of this rhetoric serves to obscure the underlining systemic inequality enforced upon the world by the wealthy nations. Entire "sciences" are dedicated to explaining the superiority of Western values over that of non-Western cultures. A purported lack of "economic freedom", "democratic institutions", or "personal liberties" is used to place the blame for inequality on the Global South. "Innovation" and "free market principles" are terms used to validate the Global North's obscene share of the total wealth. At liberalism's most progressive, it acknowledges the huge impact that colonialism had in shaping our unequal world, but chronic underdevelopment is still attributed to the ineptitude of the governments in the Global South.

            Inequality in development is thus compartmentalized to each individual state rather than being viewed as part of a broader global system. Within First World societies, this thought process is maintained by replicating social divisions at the national level. Homelessness, poverty, and racial/sex discrimination exist within wealthy countries to cement inequality as natural phenomenon. Political and philosophical debates in the West have long been held over whether or not an improvised individual's situation should be blamed on environmental circumstances or their own personal failures. While some of the more left-leaning political pundits admit that a carefully engineered upward redistribution of wealth has exacerbated inequality, they do not challenge the power imbalance that produces this trend. Ultimately, it is accepted that the wealthiest segments of society deserve their position of authority, and that the poorer citizens simply lack the appropriate skills to rise above their station.

            Similarly, left-leaning people in the West might admit that their nations played a minor part in underdevelopment, but still put the impetus for economic advancement on the peoples of the Global South. Western chauvinism prevails within all mainstream political movements within the Global North, even among the more progressive elements. As with the poverty of individual citizens, maldevelopment in a Global South country can be blamed on the individualistic choices and lack of motivation on the part of the local government. Under this ideological framework, both social mobility and economic development become a highly atomized endeavor rather than a systemic issue.

            The myth of personal responsibility also makes it easier for citizens to accept their relative privilege in the Global North. Overall, citizens in the North have significantly better living conditions than their counterparts in the South. Anyone in this situation would find it very comforting to embrace a nationalistic pride towards their country's economic accomplishments. The notion of unequal exchange being the true cause of Northern success evokes feelings of guilt and raises uncomfortable questions about one's deeply-held political beliefs. It is therefore a top priority of the Northern states to uphold liberalism through propaganda, or, more ideally, to get their citizens to ignore international politics altogether.

            Soft power is chiefly maintained in the Global North by providing a decent quality of living to its citizens. In the post-WWII era, the policies of the welfare state allowed for some redivision of the spoils extracted from the Global South. However, the rise of neoliberalism and decline of the "left threat" of socialism has led to the dismantling of social democracy. Decline of economic privilege in the Global North is slowly leading to a breakdown of the harmony between the Western working class and their ruling class. The system that kept Northern workers obedient, Southern workers suppressed, and ideological deviations to a minimum is under threat as both social and global inequality spirals out of control.

            A cultural of inequality can never be maintained indefinitely, since the collective greed of the ruling class will eventually spark unrest from an increasingly dispossessed working class. In the old fable of the scorpion and the frog, the scorpion asks the frog to ferry it across a small river. The frog agrees, reasoning that the scorpion would not attack him while they swam, since doing so would cause them both to drown. Halfway across the river, the scorpion stings the frog, dooming them both. As they begin to sink, the scorpion apologizes for the irrational action and reminds the befuddled frog that what he did was simply is in his nature. This story fits in well with the dynamic of the Northern ruling class and the Northern working class. Even though keeping the citizens of the Global North content is key to the survival of Northern hegemony, the very nature of the system will not allow for this essential pillar to be maintained.

Enforcing a Culture of Despair

            Due to the lopsided distribution of global wealth, Third World governments lack the resources to fund a welfare state. In lieu of this soft power, Southern governments instead must resort to more authoritarian tactics to keep their population under control. Most of these regimes are artificial, having been installed by the Global North countries. Unequal exchange is facilitated by the corrupt puppet rulers in the South, to the economic benefit of the North. In return, a small amount of value is reinvested into the Global South in the form of military aid and intelligence cooperation. Under normal circumstances, these regimes would not be solvent on their own and would quickly collapse under popular revolts. It is thus in the best interests of the North to keep these governments afloat by bolstering their hard power.

            Equally important is enforcing a sense of hopelessness among the common citizens of the Global South. Since the end of colonialism, progressive governments and revolutionary optimism has been repeatedly stamped out in the South. Any attempt to assert a country's sovereignty, no matter how minor the action, is swiftly punished by the US-led bloc of Northern states. Over time, the hopes and dreams of countless Global South residents were thoroughly crushed under an uncompromising Northern hegemony. Utilizing both direct and indirect intervention, the US and its allies have stripped virtually all autonomy from the Third World states, preventing them from creating policies that would help them to escape underdevelopment.

            In Sub-Saharan Africa, the old tools of colonialism are still at play. Artificial social divisions are constantly used to keep the continent divided. Foreign multinational corporations (MNCs) continue to dominate the African economies and the old colonial states still have massive influence over the contemporary African governments. Instead of developing local industry, African countries are pressured into remaining reliant on primary resource exports. All of these factors contribute to keeping Sub-Saharan Africa as the most underdeveloped region in the world.

            The Democratic Republic of the Congo (DRC) is theoretically one of the richest countries in the world, comprising of a vast trove of valuable minerals. Nonetheless, the meddling of the Global North has exacerbated the DRC's internal political crisis, dooming it to remain one of the poorest and most unstable countries in Africa. When Angola gained its independence from Portugal, mild antagonism among the liberation groups was aggravated in an attempt by the US to gain control over the country's lucrative mineral reserves. As a result, civil war raged for decades after independence was won. Efforts to promote Pan-Africanism and end regional divisions were constantly thwarted by the Global North. Ghanaian leader Kwame Nkrumah was quickly deposed by a US-backed coup because of his attempts to promote solidarity within the Global South, and in Africa in particular.

            In the case of West Asia and North Africa, the huge strategic value of oil and strong independence of post-colonial governments in the region encouraged a series of interventions by the US-led Northern bloc. Aggressive wars were launched by the US proxy state of Israel to slowly chip away at the progressive movements in Egypt and Syria. The selfish national interests of more regressive Arab states were used to undermine Pan-Arabism. Secular and forward-thinking Arab governments lost their credibility in the wake of numerous defeats that were engineered by the US. Islamic extremism was promoted clandestinely to further sow division.

            Failure to completely dismantle Arab sovereignty in some states caused the Global North to rely on direct military interventions. Iraqi President Saddam Hussein was only deposed after a full-scale invasion was launched against his country. Libya's Muammar Gaddafi lasted four decades before his country was finally destroyed by US President Barrack Obama's administration. By the end of the Biden administration, Syria fell after a lengthy intervention involving the trifecta of economic sanctions, Islamic extremist proxies, and direct US invasion.

            In Latin America, the established ruling elite gladly serves as a comprador class for the US. Whenever a progressive candidate is elected in this region, the moneyed interests of both the local elite and foreign MNCs naturally lead them to team up against the new populist threat. The comprador class uses its economic influence to sink the economy while the US strangles the country's trade through economic sanctions. The most dramatic example of this process was played out in Chile. There, the election of the leftwing Salvador Allende was followed by an intense period of economic warfare waged by the US and backed by the Chilean elite. This assault on the Chilean people cumulated in a US-sponsored coup that installed the fascistic General Pinochet.

            Of course, coups were endemic across Latin America. A situation similar to Chile occurred in Argentina, which saw a staggering death count of over 30,000 suspected political dissidents. Anywhere that practiced self-determination or control over their resources was swiftly punished through the imposition of a harsh fascistic government. Only after the population tacitly accepts their subordinate place within the global system, are they allowed to return to a state of nominal democracy under a compliant government. Even once the harsh dictatorship is lifted, the peoples of Latin American countries must vote under duress, knowing that electing the wrong candidate will provoke the wrath of the Global North.

            In Asia and Eastern Europe, the strong socialist states that formed were immediately put under a prolonged state of siege. One by one, each of their governments sunk into various stages of revisionism. In a bid to make peace with the capitalist West, the USSR allowed for the division of the world into spheres of influence. Social imperialism under the USSR mimicked many of the hegemonic practices of the Global North, albeit with less intensity. The Global North took advantage of the decline in Soviet revolutionary integrity and the growing naivete within the Soviet leadership to destroy the socialist bloc and subjugate Eastern Europe.

            With Eastern Europe relegated to the economic periphery, efforts were made to reincorporate the rogue Asian states. The Chinese government eventually sold out its working population in return for foreign investment form the Global North. Cheap consumer goods were produced by exploited Chinese workers for wealthy Northern markets. Vietnam adopted similar policies under heavy US pressure. Non-socialist states in Asia remain under permanent US military occupation, serving as strategic outposts against China.

            Russia, China, and the other members of the "BRICS" bloc later mirrored the Global North in their exploitation of the rest of the Global South. Contrary to the rhetoric of BRICS representing Southern solidarity, the loose association merely acts another form of imperialism under several regional powers. The emergence of this bloc as a supposed counter to North-South exploitation is a testament to the severe sense of defeatism instilled in the Global South by the Global North. Having failed to achieve revolutionary self-determination and democratic control over resources, many in the Global South have settled on slightly more favorable contracts with BRICS countries. In the end, the Global North preserves the overall system by reproducing its ideology onto others.

Building a Culture of Resistance

            A complete rejection of the Global North's imperialistic ideology has few precedents in history. Nonetheless, some states have managed to break away from the exploitative system. Varying degrees of success have been obtained by these governments, all of which are deserving of study. The penalties for opposing the US and its allies are harsh. Economic sanctions, diplomatic isolation, and even military intervention can be expected for any state that attempts to escape underdevelopment by reasserting its sovereignty. On the other hand, domestic control over resources, popular support among the citizenry, and freedom to pursue beneficial nationalistic policies give a state considerable leeway when addressing its underdevelopment.

            Lack of an parasitic comprador class typically allows for greater social spending and ensures a more equitable distribution of the state's limited resources. Being shut off from valuable markets due to Northern-imposed sanctions is offset somewhat by the lack of need to pay economic tribute to the Global North. Although the threat of military intervention from the Global North can force a state to spend much of its budget on a defensive deterrent, alignment with the Northern powers requires a similar level of security expenditure. In the former scenario, the purpose of the military is to defend the state against external threats. In the case of the latter scenario, the security forces are used to suppress the disillusioned citizens who oppose their government's corrupt dealings with the Global North.

            The most significant rebellion against Northern hegemony occurred in Russia under the Bolsheviks. Despite being at a great military disadvantage, the Bolsheviks won the Russian Civil War through sound organization and popular support. True to their promises of peace, they then pulled their country out of the imperialistic world war, a course of action that was opposed by even the "socialist" parties in the West. The early Soviet state built up a strong industrial base from scratch, and did not have any colonies or an economic periphery to exploit. The Soviet economy grew exponentially during the Great Depression, a time when all other economies were contracting. The gains of industrialization were subsequently used to provide a high standard of living to Soviet citizens.

            Along with this development, regional security was maintained. The most excessive of the Global North regimes, Nazi Germany, was defeated mainly due to the efforts of the USSR. After the Second World War, the USSR strongly advocated for the liberation of the colonized peoples. Once independent, the new states in the Global South tended to emulate the Soviet model, as it offered an alternative path of development that was free from exploitation. Unfortunately, limited material assistance to the Global South and ideological revisionism killed the momentum of the socialist revolution. Rising contradictions within the Soviet state eventually led to its dissolution. Many allied countries in the Global South suffered greatly from the fall of the socialist bloc.

            Nonetheless, the long existence of the socialist bloc and its associated liberation movements showed that resistance to forced underdevelopment was a possibility. It is also worth noting that modern Russia's influence is entirely due to the legacy of the USSR. Were it not for the nuclear deterrent, massive armament industry, and political prestige from its past involvement in liberation movements, Russia would have been relegated to the economic periphery. The long period of socialist development gave Russia a strong base on which to project its power. Rather perversely, as a capitalist power, Russia has simply used its advantages to become an imitation of the traditional powers in the Global North.

            Similarly, in China, the much touted success of the economic reforms were made possible by the strong national foundation built under Mao Zedong. The Chinese Communist Revolution occurred against the backdrop of a deeply impoverished and exploited country in the Global South. Hostility from the Global North forced the People's Republic of China (PRC) to adopt autarky as a national goal. Despite its state of diplomatic isolation, China achieved steady economic growth and a standard of living that was very high in proportion to its underdeveloped GDP per capita. The post-Mao reforms benefited greatly from a healthy, well-educated population, strong political independence, and a lack of any foreign or public debt. Had China not rejected its subordinate place in the global hierarchy, it would not have achieved its contemporary status as a superpower.

            China also participated in the Korean War, which was a significant challenge to the Global North's hegemony. During this conflict, the outnumbered and outgunned People's Democratic Republic of Korea (DPRK) in the north soundly defeated the much larger and better equipped army of the corrupt US-backed Republic of Korea (ROK) in the south. Not long into the war, the US invaded Korea to prevent a full liberation of the peninsula. Once the US threatened to bring the war into the young PRC and destroy socialism in all of East Asia, a Chinese volunteer army entered Korea. Together with the DPRK forces, the Chinese army pushed the US invaders back to the 38th parallel. The Eastern allies were again outnumbered and had vastly inferior weaponry, but their desire to liberate the Global South motivated them to fight bravely against the US-led Northern coalition forces.

            In the present day, a targeted propaganda campaign by the US has reduced the DPRK to a pariah state in the eyes of many residents in the Global North. While the situation in North Korea is far from ideal, its consistent resistance to US pressure has guaranteed its autonomy and relative prosperity. Many states, such as Libya, agreed to a military disarmament in exchange for improved relations with the Global North, only to be brutally destroyed in a subsequent Northern invasion. Others liberalized their economies, allowing for massive exploitation and corruption to spread to their governments via Northern MNCs. The DPRK avoided all of these fates by prioritizing its sovereignty and national security over the short-term gains provided to states that collude with the Global North.

            Generally, East Asian countries were able to secure a higher degree of independence and economic growth due to their staunch resistance the Global North's domination. The presence of the USSR and PRC gave the peoples of the region a strong base of support and presented an alternative developmental model. Nonetheless, there are many examples of attempts to reverse underdevelopment in other regions. In Latin America, a place long considered the US superpower's primary zone of influence, Cuba survived numerous CIA terrorist attacks, invasions, and a decades-old trade embargo. After the dream of Pan-Arabism died with Nasser's United Arab Republic, the "Axis of Resistance" formed between Iran, Syria, and Hezbollah to oppose Northern hegemony in West Asia. More recently, several Sahel states in Africa overthrew their neocolonialist governments and now seek to end the unequal exchange between their countries and the Global North.

            All of the underdeveloped states that resisted Northern exploitation vary wildly in culture, political structure, and economic planning. What unites them is a shared understanding of the unjust global system that hinders their development and promotes Northern hegemony. Historically, states that championed Global South solidarity and rejected neoliberalism were afforded a great amount of political autonomy and progressive national development. Governments that compromised these principles often met inglorious ends. The path of capitulation to or cooperation with the Global North will always lead to ruin or result in a Faustian bargain.

            Among the countless countries that have submitted to the Global North, only a handful have seen some success in development. All of these outlier cases were allowed to grow due to their strategic importance. East Asia, in particular, saw the economic boom of several US-allied states. This "Asian miracle" was only made possible by generous US aid and the freedom of these countries to pursue state-directed economic policies that promoted local industry. In the vast majority of the Global South, the Global North enforced the usual policies of unequal trade and suppression of industrial competition.

            What made the Northern strategy differ in East Asia was the presence of the giant Chinese communist state. In addition to acting as vital bases to contain China, the Northern-aligned states in East Asia were used for propaganda purposes. Their explosive, albeit artificial, economic growth was matched up against the more modest growth rates of China and its allies. To this day, the dramatic comparisons of Taiwan to the Chinese mainland or South Korea to North Korea are used to delegitimize opponents of the Global North supremacy and validate the current system of exploitation. In this way, the success of the resistant eastern countries indirectly contributed to the prosperity of their collaborationist rivals in the same region.

Moving Past Underdevelopment

            The cultures of inequality, despair, and resistance feed off each other in an endless cycle. Normalization of inequality among residents in the Global North instills them with a selfish mindset and ensures their support of repressive operations in the Global South. With the compliance of the privileged Northern working class, the Global North can enforce an oppressive feeling of despair upon the impoverished masses of the Global South. A harsh resistance often forms to challenge this oppression, leading to violent conflicts. These conflicts are made into sources of propaganda to reinforce the unequal global system and used as justification for further Northern interventions.

            Throughout this struggle, underdevelopment has remained prevalent within the Global South. In order to transcend this situation, it is necessary to acknowledge the historical context of underdevelopment. From there, one can identify the causes of inequality and learn to reject the hegemonic ideology that validates the current lopsided division of wealth. It is important for those living in the Global North to understand the plight of those in the Global South, and to support political initiatives that challenge the unjust hegemony of the North. Without the tacit support of its population, the Northern governments will not be able to suppress the peoples of the South.

            It should also be recognized that, while there is inherent virtue to any resistance against a hegemonic system, different forms of resistance will vary in effectiveness and revolutionary integrity. Throughout history, we have seen numerous examples of revolutionary states abandoning Southern solidarity in favor of their own geostrategic goals, the surrendering of sovereignty in exchange for short-term gains, and even cases where revolutionary states begin to harbor hegemonic ambitions. The rise of "BRICS", a rival imperialist bloc that challenges the traditional Global North alliance, showcases why resistance by itself will never be enough. To escape underdevelopment, we need to embrace true internationalism.