Laleh Khalili, a professor of Gulf Studies born in Iran to politically radical parents, uses her understanding of material structures such as ports, shipping, and mining, to build a picture of political economies. In doing so, she reveals 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.
The Mint met with her in Washington, where she is researching records to fuel her next book, and not only learned about her new publication but also gained her perspective on the current conflict in the Middle East involving her homeland.
Summary
- Khalili’s book emerged from essays on maritime logistics, oil, and sand extraction, aiming to explain complex systems to a wider audience
- Extractive capitalism extends beyond oil to resources like sand and rare earth minerals, with significant environmental and social impacts
- U.S. maintains global economic dominance through financial systems and military power, despite emerging multipolarity
- Current Middle East conflicts reflect long-standing imperial dynamics, with Israel acting as a U.S. proxy
Topics
Book Origins and Approach
- Stemmed from Khalili’s research on maritime logistics in the Middle East
- Expanded to cover oil industry due to its interconnectedness with port development
- Aimed to make technical subjects accessible to a wider, intelligent audience
- Shifted from academic writing to more engaging, explanatory style
- Draws on Khalili’s background in engineering and exposure to Marxist thought
Sand Economy
- Critical for concrete production in construction industry
- Specific types needed (water-eroded, not desert sand)
- $1.2B+ global market with significant illegal harvesting
- Environmental impacts: river/beach erosion, ecosystem disruption
- Social impacts: violence against activists opposing illegal extraction
- Key for urban development in places like Dubai, Singapore, Hong Kong
Extractive Capitalism Evolution
- Historical roots in colonial exploitation (e.g., African railways to ports)
- Shifting focus from oil to rare earth minerals (lithium, nickel, copper)
- Geopolitical tensions around resource control (e.g., China-US trade war)
- International mechanisms often favor investors over Global South states
- World Bank’s state-investor dispute resolution mechanism cited as particularly problematic
Global Power Dynamics
- U.S. maintains dominance through:
- Military spending (larger than next 9 countries combined)
- Control of financial systems (e.g., SWIFT, dollar dominance)
- Strategic alliances and proxy states (e.g., Israel in Middle East)
- Challenges to U.S. hegemony (e.g., BRICS alternative to SWIFT) face significant hurdles
- Multipolarity emerging but U.S. still primary global power center
Current Middle East Conflict
- Israel acting as U.S. proxy (“unsinkable aircraft carrier”)
- Estimated 400,000 killed in Gaza; humanitarian crisis
- Iran targeted as last major regional opponent to Israel
- Recent Iran-Israel conflict: Israel potentially miscalculated Iran’s capabilities
- Economic pressures on Israel (war costs, brain drain, labor shortages)
- Potential for long-term regional instability and violence
