Laleh Khalili, "Extractive Capitalism: How Commodities and Cronyism Drive the Global Economy" (Profile Books, 2025)
May 1, 2025
auto_awesome
Laleh Khalili, a Professor at the University of Exeter, dives deep into the darker side of our global economy in her new book, 'Extractive Capitalism.' She explores how the extraction of resources fuels inequality, from the plight of seafarers abandoned on ships to the cronyism that drives corporate profits. Khalili contrasts luxury yacht labor with commercial shipping, revealing stark wealth disparities. She also critiques modern projects like NEOM and China's Belt and Road, discussing their implications for marginalized workers and global capital.
Extractive capitalism underpins the global economy, revealing how low-cost labor and corporate control perpetuate social inequality.
Modern seafaring has been transformed by automation, drastically reducing crew sizes and exacerbating working condition disparities for Global South workers.
Geopolitical tensions significantly impact global trade dynamics, illustrating how local conflicts shape international resource extraction and maritime trade routes.
Deep dives
The Appeal of Work Management Platforms
Work management platforms often come with extensive onboarding processes, IT complications, and administrative hurdles, making them less appealing to users. However, tools like Monday.com promise a different experience, emphasizing simplicity with no lengthy onboarding and the ability to create custom workflows independently. Reports can be generated quickly and efficiently, showcasing ease of use designed to appeal to users who want to streamline their work. This shift represents a growing trend towards enhancing user experience in work management.
The Return of Degree Cool Rush
Degree Cool Rush deodorant recently faced criticism for altering its beloved formula, prompting widespread dissatisfaction among its loyal customers, even leading to a petition for change. Recognizing the backlash, the brand has reinstated the original Cool Rush scent to the market, providing reassurance to its fanbase. The reinstatement of this popular scent is strategically made available at major retailers like Walmart and Target for an accessible price point of under $4. This move highlights the importance of brand responsiveness and customer loyalty in product development.
The Evolution of Seafaring Labor
Modern seafaring conditions have drastically shifted, with automation leading to significant reductions in the workforce aboard cargo ships. Historical labor movements once enabled seafarers to gain substantial workplace benefits, but today's automated terminals have greatly diminished job opportunities, resulting in a drastic drop in crew numbers from hundreds to often fewer than 40 per vessel. Additionally, a dual employment system has emerged, contributing to significant disparities in working conditions between officers and crew members, especially for workers from the Global South. This inequity reflects a broader trend of exploitation within the maritime industry, where labor hierarchies continue to persist.
The Broader Context of Extractive Capitalism
The concept of extractive capitalism is prevalent in discussions about global resource management, particularly in comparing the value of commodities such as oil and sand. Both commodities are integral yet often overlooked in industrial processes, emphasizing the consequences of commodification that leads to environmental degradation and social inequality. Important global trade hubs, like Rotterdam, exemplify how historical and current interactions with these commodities determine economic outcomes. The exploitation of these resources, coupled with military and political interests, underscores the complexities of modern economic practices.
Geopolitical Realignments and Resource Extraction
The interconnectedness of globalization reveals how geopolitical events, such as conflicts in the Middle East, directly influence global trade dynamics and resource extraction practices. Recent tensions have highlighted the role of regions like the Houthis in Yemen, whose actions symbolize a shift in the power balance that impacts maritime trade routes, notably through the Bab al-Mandab Strait. This situation not only affects local populations but also has far-reaching implications for international shipping and global markets. Understanding these connections illuminates the fragility of current global trade infrastructures amidst rising tensions.
Whether it's pumping oil, mining resources or shipping commodities across oceans, the global economy runs on extraction. Promises of frictionless trade and lucrative speculation are the hallmarks of our era, but the backbone of globalisation is still low-cost labour and rapacious corporate control. Extractive capitalism is what made - and is still making - our unequal world.
In Extractive Capitalism: How Commodities and Cronyism Drive the Global Economy (Verso, 2025) Professor Laleh Khalili reflects on the hidden stories behind late capitalism, from seafarers abandoned on debt-ridden container ships to the nefarious reach of consultancy firms and the cronyism that drives record-breaking profits. Piercing, wry and constantly revealing, Extractive Capitalism brings vividly to light the dark truths behind the world's most voracious industries.
This interview was conducted by Dr. Miranda Melcher whose new book focuses on post-conflict military integration, understanding treaty negotiation and implementation in civil war contexts, with qualitative analysis of the Angolan and Mozambican civil wars. You can find Miranda’s episodes on New Books with Miranda Melcher, wherever you get your podcasts.
