Currency arrangements can function as wealth-transfer mechanisms between societies.

Evidence

Modern monetary theory (MMT) shows that a currency is intrinsically related to the way the government is able to shift productive resources from the non-government sector to the public sector in order to fulfil its socioeconomic mandate. In the context of colonial, and then neo-colonial, relations, currency arrangements also served to facilitate the transfer of wealth from colonies to the metropolis. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 20 (#exemplifies, via linked claim)

One of the main objectives of the European powers’ colonial enterprise in Africa throughout the nineteenth century was the appropriation of most of the continent’s riches through the establishment of commercial regimes to the benefit of the metropole. To this end, the colonial powers had to control the circuits of production and exchange, which in turn requires controlling the currency. To curb local resistance and get their currencies accepted, the colonisers used all the means of pressure at their disposal and didn’t hesitate to resort to colonial law and violence. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 54 (#exemplifies, via linked claim)

Categorization

• XREF: connects to: Currency arrangements can transfer wealth from colonies to metropolis — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 20; Foreign-backed monetary systems subordinate a state to that foreign country. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 369; Currency pegging institutionalized a principle of automaticity removing colonial control over exchange rates. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 78 (+9 more)

Related

• Currency arrangements can transfer wealth from colonies to metropolis (similarity 0.95)
• Controlling currency was essential to the colonial appropriation of African riches (similarity 0.90)
• Underdeveloped nations exist to channel surplus toward wealthy metropolises. (similarity 0.86)
• Monetary dependence underlies all other forms of African dependence (similarity 0.84)
• Currency pegging institutionalized a principle of automaticity removing colonial control over exchange rates. (similarity 0.84)
• Every state over 100 million people has its own national currency (similarity 0.83)
• Pre-colonial Africa had diverse currencies including an official cowrie exchange rate (similarity 0.82)
• Taxation in colonial currency was designed to force conversion to capitalism. (similarity 0.81)
• The single pegged currency structure drained African resources toward the metropole. (similarity 0.81)
• Foreign-backed monetary systems subordinate a state to that foreign country. (similarity 0.81)
• Currency deals serve hedging, speculation, and transnational investment entry and exit. (similarity 0.81)
• Precolonial Africa used diverse currencies where money was above all a social institution (similarity 0.81)
• Colonial-era monetary system survived into independence as four interlocked principles (similarity 0.80)
• Nkrumah warned in 1963 that foreign-backed currencies subordinate African states (similarity 0.80)
• The colonial currency’s association with taxes drove local resistance to it (similarity 0.80)

Broader Connections

• Currency arrangements can transfer wealth from colonies to metropolis #exemplifies (0.90) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 20
• Controlling currency was essential to the colonial appropriation of African riches #exemplifies (0.80) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 54
• Taxation in colonial currency was designed to force conversion to capitalism. #exemplifies (0.70)
• Foreign-backed monetary systems subordinate a state to that foreign country. #expands (0.60) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 369
• Dependency theory frames rich nations’ prosperity as reliant on exploiting the periphery. #expands (0.60)
• Underdeveloped nations exist to channel surplus toward wealthy metropolises. #expands (0.60)
• Currency pegging institutionalized a principle of automaticity removing colonial control over exchange rates. #complicates (0.50) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 78
• Colonial-era monetary system survived into independence as four interlocked principles #expands (0.50) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 96