Crelis Rammelt, Raimon C. Ylla-Catala

Ecological Unequal Exchange

Introduction

Ecological unequal exchange. Explore ecological unequal exchange, a Marxist theory on global resource flow disparities. Updated research reveals intensified net outflows from low-income to high-income countries since 2015.

Abstract

The Marxist theory of unequal exchange challenges the idea that trade never results in outright losses. As a biophysical process, ecological unequal exchange reveals global disparities in resource flows. Using material flow analysis, alternative indicators, and new country clusters, this study updates earlier research and identifies a new phase of intensified disparities since 2015, with rising net outflows of resources from low-income countries (LICs) to high-income countries (HICs). From 1970 to 2024, HICs accumulated 290 gigatons (Gt) of raw material equivalents (RMEs) as net imports, while upper-middle-income, lower-middle-income, and low-income countries net-exported 164 Gt, 53.1 Gt, and 9.6 Gt, respectively. In a relative sense, LICs consume 13.3 percent less RMEs than they extract domestically, while HICs consume 25.4 percent more. This study challenges assumptions about global divisions of labor: not all HICs are net-importers of RMEs, nor are all LICs net-exporters. However, net-exporter HICs earn more than net-exporter LICs, and net-importer HICs spend less than net-importer LICs. On average, LICs export 6 tons of RMEs to earn what HICs earns from 1 ton; for net-exporter LICs, this ratio rises to 12.7 tons. The more a country exploits the environment, domestically or abroad, the more it earns.

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