How the Richest 10% in the UK Benefited from India's Wealth: Oxfam Report Exposes Colonial Plunder

An Oxfam International report has unveiled staggering figures about the economic exploitation of India during British colonial rule. The report, titled Takers, Not Makers, sheds light on the systematic extraction of wealth that fueled inequality and entrenched global disparities, primarily benefiting the richest 10% in the UK. Released ahead of the World Economic Forum’s Annual Meeting, the report highlights the enduring impact of colonialism on present-day global economic structures.

The USD 64.82 Trillion Extraction

Between 1765 and 1900, the British Empire extracted a staggering USD 64.82 trillion from India, adjusted to today’s value. Of this, USD 33.8 trillion was funneled to the wealthiest 10% in the UK. To contextualize the scale, Oxfam notes that this amount could cover London’s surface area four times over in £50 notes. The wealth amassed by these elites laid the foundation for generational affluence, some of which can still be traced to colonial-era exploitation.

The Multinational Legacy of Colonialism

Oxfam’s report delves into how colonialism gave rise to modern multinational corporations. The British East India Company, a private corporation, symbolized the corporate exploitation of the era. With an army of 260,000 soldiers—twice the size of Britain’s standing army at the time—the Company exerted immense control over India, enabling land seizures, economic monopolies, and violent suppression of resistance. This set a precedent for contemporary multinational corporations that continue to exploit cheap labor and resources from the Global South.

Workers in the Global South today often earn wages 87–95% lower than their counterparts in the Global North for jobs requiring similar skill levels. These disparities, perpetuated by supply chain monopolies, underline the systemic inequalities rooted in colonial practices.

Industrial Decline and Exploitation

The report highlights how Britain’s protectionist policies devastated India’s economy. In 1750, India accounted for 25% of global industrial output, but by 1900, this figure plummeted to a mere 2%. British-imposed tariffs crushed India’s thriving textile industry, redirecting wealth and opportunities to Britain. Ironically, World War I temporarily alleviated this suppression as disrupted trade patterns sparked industrial growth in some colonies, a trend that remains evident today.

The Middle Class and Wealth Redistribution

While the wealthiest 10% benefited most, Oxfam notes that colonialism also created a new middle class, which received 32% of the wealth extracted from India. This emergent class played a crucial role in perpetuating colonial structures, further entrenching economic disparities.

Colonial Atrocities: Famines, Deaths, and Forced Labor

Colonial policies caused widespread suffering. Between 1891 and 1920, an estimated 59 million excess deaths occurred in India due to famines, poverty, and systemic neglect. The Bengal Famine of 1943, which claimed three million lives, was exacerbated by British-imposed grain export restrictions during World War II.

The exploitation extended beyond economics to human suffering. Over 3.7 million people from India, China, Africa, and other regions were transported as indentured laborers to work on colonial plantations, mines, and infrastructure projects. This forced labor system symbolized the dehumanizing practices of colonial powers.

Cultural and Social Divisions

Oxfam highlights how colonialism entrenched divisions in India, formalizing caste hierarchies and exploiting religious, gender, and linguistic differences. The British also acted as a "colonial drug pusher," promoting opium production in eastern India for export to China, leading to widespread addiction and the Opium Wars.

The report also cites examples of biopiracy, such as the patenting of traditional Indian practices like neem extract use, showcasing how colonial exploitation extended to intellectual and cultural domains.

Modern-Day Inequalities

Oxfam draws parallels between historical colonialism and contemporary global inequalities. The report argues that institutions like the World Trade Organization (WTO) and the World Bank continue to favor the Global North, perpetuating economic disparities. For instance, during the COVID-19 pandemic, proposals from South Africa and India to waive intellectual property rights on vaccines were opposed by wealthy nations, reflecting the ongoing exploitation of the Global South.

Privatization of public services is another legacy of colonialism. In India, the International Finance Corporation (IFC), a World Bank arm, has financed private hospitals that remain inaccessible to much of the population, further exacerbating health inequities.

Colonialism’s Lasting Impact

The report emphasizes that the inequality and poverty plaguing many Global South nations are direct consequences of colonialism. Military expenditures during colonial rule, which consumed nearly 75% of India’s budget, came at the expense of public works and agricultural development, worsening famines and economic stagnation. These patterns continue to shape the socio-economic realities of former colonies.

A Call for Justice

Oxfam’s report is a sobering reminder of the vast wealth extracted during colonial rule and its lasting consequences. By exposing the roots of global inequality, the report calls for a reimagining of economic systems to address historical injustices and ensure a fairer distribution of resources in the future.

The legacy of colonialism is not just a historical issue—it is a systemic problem that continues to shape the modern world. Addressing this requires a collective effort to dismantle structures of exploitation and build a more equitable global economy.