The Divide by Jason Hickel
The Divide by Jason Hickel

Economics · 2017

What is The Divide about?

by Jason Hickel · 6h 45m

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The short answer

The Divide is Jason Hickel's argument that global poverty is not a natural condition that development has failed to fully remedy, but a product of policies — colonial extraction, debt regimes, trade rules, and structural adjustment — that wealthy countries have imposed on poor ones. Hickel, an economic anthropologist, mounts a systematic challenge to the dominant narrative of development economics, which holds that the world is getting steadily better and that the existing global economic architecture, despite its imperfections, is generally delivering progress.

The Divide by Jason Hickel
The Divide by Jason Hickel

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The Divide, in detail

The Divide is Jason Hickel's argument that global poverty is not a natural condition that development has failed to fully remedy, but a product of policies — colonial extraction, debt regimes, trade rules, and structural adjustment — that wealthy countries have imposed on poor ones. Hickel, an economic anthropologist, mounts a systematic challenge to the dominant narrative of development economics, which holds that the world is getting steadily better and that the existing global economic architecture, despite its imperfections, is generally delivering progress.

His case proceeds in two parts. The first reconstructs how the divide between rich and poor countries was created. Colonialism did not merely slow development in what is now called the Global South; it actively dismantled existing industries, extracted wealth, and installed governance structures designed to serve metropolitan interests. The debt crisis of the 1980s continued this dynamic: loans came with structural adjustment conditions requiring privatization, deregulation, and austerity that often made poor countries poorer. Trade rules negotiated through the WTO and bilateral agreements systematically favor rich-country exports and restrict poor-country options.

The second part challenges how poverty and progress are measured. Hickel is skeptical of the optimistic poverty statistics widely cited by figures like Steven Pinker and Bill Gates. He argues the $1.90-a-day poverty line is set artificially low, that the measures used to calculate progress obscure as much as they reveal, and that rapid growth in countries like China and India has been accompanied by rising inequality within those countries. The story of global progress, he argues, requires more careful interpretation than the standard narrative admits.

The book is polemical and written from a clear political position, which is both a strength and a limit. Hickel is a persuasive advocate for a particular view of the global economy. Readers who already accept the development economics consensus will find his claims provocative and sometimes overstated. Readers unfamiliar with the debate will get a well-documented introduction to the critical tradition in development thought. The empirical claims are well-sourced even where they are contested.

The big ideas

  1. 1.

    The global divide between rich and poor countries was not a natural starting point that development is trying to close — it was actively created through colonialism and continues to be maintained through debt, trade rules, and financial flows.

  2. 2.

    More wealth leaves poor countries through debt repayment, profit repatriation, and illicit financial flows than enters through aid — the net flow of money is from poor countries to rich ones, not the reverse.

  3. 3.

    The $1.90-a-day poverty line used in official statistics is set below the level at which people can meet basic nutritional needs in many countries. Using more realistic lines, poverty reduction in recent decades looks significantly less dramatic.

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