The Sacrificial Imperative
Marc René Deschenaux
Market Street Capital Europe Managing Director & Chief Legal Officer, Founder of Deschenaux Barber & Partners, LLP , IPO Institute Inc., IPO Conference Inc., IPO Show Producer & Movie Producer
Before starting I would like to reaffirm that I am no leftist or democrat. I am a convinced Capitalist because I believe that it is the best system letting human beings free so far or at least, the least damaging of all political systems.
Unmasking Developed Nations' Exploitation of the Third World
In the comfort of a trendy café in the heart of Paris or New York, few would think about the consequences of ordering a €3 coffee. The aroma, the taste, the experience - it's all part of a daily routine for the citizens of the developed world.
But beneath this routine is a brutal reality, a systematic exploitation often overlooked. This is what I call the 'Sacrificial Imperative'.
The Sacrificial Imperative is a simple yet harsh principle that underpins the international economic structure: for a consumer in a developed country to enjoy inexpensive products and services, someone in the developing world must bear the cost - often in the form of underpayment and deprivation of essentials such as food, healthcare, and rest.?
To illustrate, let's consider the coffee trade. Coffee is the second-most traded commodity in the world after oil, with an industry worth over $100 billion. Over 125 million people worldwide depend on coffee for their livelihoods, the majority in developing countries like Ethiopia, Colombia, and Vietnam.?
When you pay €3 for a cup of coffee, a tiny fraction reaches the farmers who produced the beans. While prices fluctuate, farmers typically receive less than 10% of the retail price.
The rest is consumed by intermediaries, such as exporters, importers, roasters, and retailers. The situation is exacerbated by volatile market prices, climate change, and pressure from large multinational corporations seeking to drive down costs.?
The Sacrificial Imperative is not confined to coffee; it is a pervasive phenomenon in all sectors where developing nations serve as producers for developed countries.
It's a daunting reality faced by cocoa farmers in West Africa, garment workers in Bangladesh, or miners in the Democratic Republic of Congo.
The result is a systematic sacrifice of the well-being of populations in developing nations for the benefit of those in the developed world.
They subsist on low wages, poor quality food, and limited healthcare services. Their work conditions are often hazardous, with long hours and scanty or no protective measures.?
Worse still, the Sacrificial Imperative also perpetuates a cycle of poverty and underdevelopment. Low earnings mean fewer resources for education, health, and social services - the pillars of economic development.
The workforce remains unskilled, and the economy is stuck in low-value, labor-intensive industries.?
Such exploitation is unjustifiable and unsustainable. The world needs a more equitable trade system that acknowledges and compensifies for this sacrifice.
Fair trade movements and ethical sourcing policies are steps in the right direction, but they need to become the norm rather than the exception. Greater transparency in supply chains can help consumers make informed choices and demand fairness for producers.
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The global economic order must ensure that the well-being of the many is not sacrificed for the comfort of the few. After all, isn't a fair world what we all strive for?
The Sacrificial Imperative: A Matter of Life and Death
The Sacrificial Imperative, as laid out in our previous discussion, is a harsh economic principle that masks a deeper, more disturbing reality. It doesn't just result in poor living conditions - it often equates to a death sentence for millions of people living in developing nations.?
Lack of nutritious food, access to quality healthcare, and unsafe working conditions are all lethal elements that can lead to premature death. According to the United Nations, nearly 690 million people suffered from chronic undernourishment in 2019, the majority from developing countries.
Malnutrition alone, which is directly linked to food quality and quantity, contributes to about 45% of deaths among children under five years of age worldwide, as per a report from UNICEF.
Similarly, inadequate healthcare services result in increased mortality. As per the World Bank data, in 2018, low-income countries had an average of 1.5 doctors for every 1,000 people, compared to an average of 2.9 in high-income countries.
With less access to quality healthcare, treatable and preventable diseases often turn deadly. Malaria, a disease mostly preventable and treatable, claimed 409,000 lives in 2019, primarily African children.
Unsafe working conditions too are a major contributor to deaths. The International Labour Organization (ILO) estimates that 2.78 million workers die from occupational accidents and work-related diseases each year, many of them in low-wage industries in developing countries.
Quantifying the exact number of deaths resulting from the Sacrificial Imperative is challenging due to the interconnectedness and complexity of these issues. However, even a cursory glance at these statistics indicates that the death toll is in the millions annually.?
But remember, behind these numbers are real people. They are farmers tilling the soil from dawn to dusk, garment workers sewing clothes in cramped factories, miners delving deep into dangerous pits - all striving to eke out a living in circumstances far from ideal, often hazardous.
The Sacrificial Imperative, therefore, is not just an economic theory; it is a matter of life and death.
As consumers, we need to be aware of the price paid for our inexpensive goods and services. As global citizens, we need to advocate for fair trade, sustainable practices, and equitable economic systems that respect and uphold the dignity of all workers, no matter where they live.
Finally the study made at my university showed that for one student's life level, 177 human beings must die yearly.
As you sip your €3 coffee today, remember the invisible millions whose sacrifice made it possible.
And ask yourself, how many more lives will it take before we address the Sacrificial Imperative ?
Leading Business Strategy & Development, Sales, Operations & Organisation Development, and M&A Advisory.
1 年Great piece Mark! Which university did this study? The developing world (especially Africa, from my own experience), will only become more developed when more of the value-add processing is done in the country of resource extraction. Thanks, Peter