UK’s Wealthiest Took Half of India’s Wealth During Colonial Rule: Oxfam Report

Colonial Wealth and Inequality

According to Oxfam, the extracted wealth could carpet London with £50 notes four times over. Beyond the wealthiest elites, the newly emerging middle class in Britain also benefited, receiving 32% of the income generated through colonial exploitation. This wealth redistribution entrenched inequality, leaving India economically devastated.

Before British rule, India contributed approximately 25% of global industrial output in 1750. By 1900, this had dropped to just 2%. Oxfam attributes this decline to Britain’s protectionist policies, particularly against Indian textiles, which crippled India’s industrial growth. Ironically, World War I temporarily alleviated this suppression by disrupting colonial trade patterns, spurring some industrial growth in India.

The Role of Multinational Corporations

The report draws a direct link between colonialism and the rise of modern multinational corporations, citing the East India Company as a prime example. This corporation, backed by private shareholders, wielded immense power, including maintaining an army of 260,000 soldiers—double the size of Britain’s peacetime military.

Such corporations exploited India’s resources and labor, often through violent means. This practice, Oxfam argues, persists today through global supply chains dominated by large multinational firms. Workers in the Global South, particularly women, often endure poor working conditions and earn wages 87% to 95% lower than their Global North counterparts for similar work.

Enduring Impact of Colonial Policies

The report also highlights the long-lasting effects of colonial policies. During the British Raj, military expenditures consumed nearly 75% of India’s budget, leaving just 3% for public works. This neglect exacerbated famines, droughts, and infrastructure failures, with tragic consequences such as the Bengal Famine of 1943, which claimed an estimated three million lives.

Additionally, Oxfam notes that British policies entrenched social divisions in India. The caste system, for instance, was formalized through administrative measures, reinforcing rigid boundaries that persist today.

Exploitation Beyond Borders

Oxfam details how colonial powers leveraged India’s resources for their global ambitions. For instance, the British East India Company monopolized opium production in eastern India, exporting it to China and fueling the Opium Wars. The legacy of this exploitation is still evident in regions historically associated with poppy cultivation, which face lower literacy rates and inadequate public services compared to neighboring areas.

The report also discusses “biopiracy,” where corporations from the Global North profit from indigenous knowledge without compensation. One example cited is the US-based corporation WR Grace’s patent on neem extracts, a traditional Indian remedy. The patent was eventually revoked after a decade-long legal battle.

A Global System of Inequality

Oxfam argues that the inequalities created during colonial times persist in modern global systems. Institutions like the World Trade Organization and the World Bank often prioritize the interests of the Global North, perpetuating disparities. During the COVID-19 pandemic, for example, a proposal by South Africa and India to waive intellectual property restrictions on vaccines was opposed by wealthier nations despite widespread support.

In India, the privatization of public services has further deepened inequalities. Oxfam highlights how international financing institutions have supported high-end private hospitals that remain inaccessible to most Indians, with 37% of the population incurring catastrophic health expenses.

Call for Change

Oxfam’s report underscores the need to address the enduring legacies of colonialism and systemic inequality. It calls for a fairer global economic system, greater transparency, and equitable trade policies to bridge the gap between the Global North and South.

This report serves as a stark reminder of how colonial exploitation shaped modern inequalities, leaving a legacy that continues to impact millions across the world.