The Modern World System is dynamic – core countries are constantly evolving new ways of extracting
profit from poorer countries and regions. Three examples of new ways of extracting profit from poor
countries include:
Western Corporations sometimes use their economic power to negotiate favorable tax deals in the
developing world. A good case in point here is the mining Company Glencore in Zambia. The company
recently arranged a long-term contract to mine copper with the Zambian government – it exports $6
billion a year in copper from Zambia, but pays only $50m in tax, while as part of the deal, the Zambian
government is contractually obliged to pay for all the electricity costs of mining – a total of $150m a year
Western corporations can extract profit from poor countries in a number of ways, including:
Exploiting cheap labor. Western corporations often set up factories in poor countries where labor costs
are low and workers have few rights or protections. This allows them to produce goods at a fraction of
the cost of doing so in developed countries.
Evading taxes. Western corporations often use complex tax avoidance schemes to shift their profits from
high-tax countries to low-tax countries, including many poor countries. This deprives poor countries of
much-needed tax revenue that could be used to fund public services and development programs.
Extracting natural resources. Western corporations are often involved in the extraction of natural
resources from poor countries, such as oil, gas, minerals, and timber. This can lead to environmental
damage and displacement of local communities, with few benefits for the country as a whole.
Influencing government policy. Western corporations can use their wealth and power to influence
government policy in poor countries in ways that favor their own interests. This can lead to policies that
are harmful to the environment, workers, and consumers.
Here are some specific examples of how Western corporations have extracted profit from poor
countries:
Nike and other clothing companies have been accused of using sweatshop labor in poor countries such as
Bangladesh and Indonesia. Workers in these sweatshops often work long hours in unsafe conditions for
low wages.
Oil companies such as Shell and Chevron have been accused of polluting the environment and displacing
local communities in poor countries such as Nigeria and Ecuador.
Mining companies such as Glencore and Rio Tinto have been accused of exploiting child labor and
causing environmental damage in poor countries such as the Democratic Republic of the Congo and
Papua New Guinea.
It is important to note that not all Western corporations are involved in exploiting poor countries. There
are many Western corporations that operate in a responsible and ethical manner. However, it is also
important to be aware of the ways in which some Western corporations can extract profit from poor
countries and hold them accountable for their actions.
