• lemmygrabber
    link
    201 year ago

    The reason they do this is something that is completely overlooked in the general consciousness of the imperial core. A vast variety of products used there cannot be grown there. Most obvious examples are tropical products like fruits etc. If you read Patnaiks’ theory on imperialism, they posit that the point of the system is to suppress wages in the third world so that cost of the products that are grown natively remain low and the profit margins of corporations and the standard of living in the imperial core can be maintained. IMF and World Bank policies of cutting social spending are for this reason.

    World Bank loans are dollar denominated for this reason as well. It forces third world countries to sell their produce and resources on the global market for dollars to pay back these loans with as you said. Turns out the whole Chinese debt trap thing was just projection.