The Libidinal Economy – How the Drive to Exploit Is Woven into the Fabric of Modern Systems

“”The silence protects them. Break it.”

By Andrew Klein

The Patrician ‘s Watch | Australian Independent Media

Dedication: To my wife – who taught me that no design is inevitable.

I. Introduction: Systemic Failure or Design Feature?

For generations, scholars, activists, and survivors have documented the relentless abuse of children, women, and vulnerable people across every corner of the globe. We call these “systemic failures” – as if the exploitation were a malfunction, a tragic deviation from an otherwise benign system.

But what if the evidence points in the opposite direction? What if this is not a failure at all, but a feature – an inevitable product of an economic system that commodifies everything it touches, including human beings?

This paper argues that the capitalist, exploitative system facilitates exploitation not by accident, but by design. It is not a bug; it is the operating system.

Recent academic research has begun to centre the “political economy” in theorising about child sexual abuse. A 2024 study in the Journal of Criminology argues that technology‑facilitated child sexual exploitation has flourished precisely within the “laissez faire regulatory frameworks of neoliberalism.” It concludes that economists‘ and criminologists’ traditional focus on the psychology of the abuser misses the point, “overlooking the role of capitalist structures and imperatives” that create the conditions for abuse to thrive.

Similarly, scholars of critical theory argue that capitalism is not merely an economic system but a totalising force. It commodifies everything it touches, including relationships and human beings. One source describes this as an “inherited flaw” in which friendships and even intimate relationships become “based on a transactional approach” valuing “profit rather than intrinsic worth.” This is not a bug. This is a feature of a system that requires an endless stream of disposable bodies to generate surplus value.

Contemporary investigations into the concept of a “libidinal economy” have attempted to decode how people are psychically hooked into the circuits of the capitalist economy. A 2024 collection of essays by leading scholars explores the connections among economies, pleasures, and desires, addressing themes such as “the link between exploitation and enjoyment” and “the reproduction of the relations of domination by means of the production of … organised crime, forced migration, and unequal development, as well as racism and gendered violence”.

II. The Colonial Blueprint: Sexual Terror as a Tool of Economics

The patterns we see today were honed during the era of colonialism. Sexual violence was not a side effect of colonial expansion; it was a primary weapon of economic and racial domination.

Archival research into the Congo Free State (1885–1908) under King Leopold II reveals the systematic use of sexual violence, rape, abduction, forced incest, and torture as instruments of extraction. One study documents how white settlers “systematically and intentionally utilised sexual violence as a tool of colonial warfare” to inflict psychological and physical hardship, enforce social hierarchies, and establish their “superior force.” The study shows that motives like “sexual lust, psychological dominance and economics” were all entangled.

Between October 1904 and February 1905, the Commission of Inquiry into the Congo Free State collected bare statements of fact recorded by eyewitnesses. Of 370 testimonies, 20 came from women. Their statements reveal what has been silenced by official historiography: namely, sexual and non‑sexual terror as innate to colonial power. The testimonies describe the kidnapping of women (referred to as “rapt”), the amputation of hands and feet when rubber quotas were not met, and the use of female prisoners as pawns or sexual slaves.

A 2023 academic study argues that “sexual violence does not follow but structures colonialism as part of a continuum of violence.” Drawing on extensive archival research, the author identifies “the fusion of terror and pleasure as key aspects of a capitalist and patriarchal gender order.” The colonial regime, based on power, coercion and submission, “required direct, intimate contact with its subjects to maintain a bond of subjection”.

This was not mere cruelty. It was a calculated system of terror designed to extract labour, land, and wealth.

III. The Industrial Revolution: The Factory and the Brothel

The Industrial Revolution was not driven solely by a profit motive; sexual drivers were equally fundamental. The historical record confirms that the mass migration of young, single women to cities created a vast vulnerable population, and the new workhouses and factories were not only sites of labour exploitation but of horrific abuse.

Scholarly volumes on childhood in industrial England include chapters on “Child sexual abuse in late seventeenth and eighteenth‑century London” and “Care and cruelty in the workhouse.” Workhouses, established under the New Poor Law of 1834, were explicitly designed as a punishment for poverty. Children within them were subjected to cruelty, physical abuse, neglect – and sexual abuse, though rarely acknowledged.

In Victorian Britain, the Contagious Diseases Acts of the 1860s did not combat disease; they institutionalised the exploitation of working‑class women and children, treating them as diseased vessels that needed to be regulated by the state for the benefit of “public health” and the military. The Acts empowered police to arrest any woman suspected of being a prostitute, subject her to forced medical examination, and intern her in a “lock hospital” for up to nine months – without trial or conviction.

The period also saw horrific practices like the “procurement and sale of young English virgins to Continental ‘pleasure palaces’.” In July 1885, crusading journalist W. T. Stead published the four‑part series “The Maiden Tribute of Modern Babylon” in the Pall Mall Gazette. Stead exposed the widespread child prostitution and the “veritable slave trade” in young girls, revealing that working‑class girls were “sacrificed – often by their mothers and other women of their neighbourhoods – to the sexual appetite of the ‘dis‑’” wealthy classes. The series led to the Criminal Law Amendment Act 1885, which raised the age of consent from 13 to 16, but the underlying system of exploitation remained intact.

This was not a moral failure of a few bad actors. It was a system designed to extract everything from the poor, including their sexuality.

IV. Modern Extraction Zones: Special Economic Zones as Slavery Enclaves

The pattern continues today in a form even more “efficient” than traditional colonialism. Special Economic Zones (SEZs) are purpose‑built enclaves where labour laws are suspended or ignored to maximise profit. They have become epicentres of modern slavery and sexual exploitation.

Established as a multi‑purpose Special Economic Zone in 2021, Cambodia ‘s Sihanoukville region was intended to attract investment through flexible development initiatives. Instead, its reputation has been “damaged by news of cyber scams and slavery,” as highlighted by a Chinese movie, ’No More Bets ‘.

Investigative reporting has revealed that Sihanoukville has become the hub of a “structurally embedded transnational extraction system” where revenue is generated not through production, but through “deception, coercion, and information asymmetry.” Victims are lured with false promises of wealth, then trapped, tortured, and forced into running online scams. The UN has flagged certain compounds for “large‑scale fraud and forced labour,” and investigators have noted that local police frequently “cannot enter without explicit authorization from national leadership, allowing this modern slavery to persist in plain sight”.

The 2026 Sihanoukville scam exodus saw hundreds of suspected scam workers flee the sites as the government vowed to crack down, but the underlying system remains unchanged. These zones are legal black holes where the “right” to exploit is granted by the state to attract foreign investment. This is not a failure of regulation. It is a design feature of a globalised economy where sovereignty is sold in exchange for a share of criminal profits.

V. The Profit-Driven Supply Chain: From the Factory to the Fashion House

This extractive logic trickles down through every link in the global supply chain. There is growing awareness of “the role that multinational corporations (MNCs) play in contributing to modern slavery down their supply chains.” A third of all exploited workers are in export‑related sectors, hidden within global value chains.

A landmark 2025 Italian investigation uncovered a “chain of exploitation” involving human trafficking, forced labour and organised crime within the supply chain of Giorgio Armani, one of the world‘s most prestigious luxury fashion houses. Prosecutors alleged that Manifatture Lombarde, the official Italian supplier to Armani, was paid €1.6 billion for production while subcontracting the work to illegal sweatshops in the province of Milan.

The operation involved the illegal employment of Chinese workers who were forced to work over 14 hours a day for a pittance of €2–€3 an hour, housed in “degrading” conditions. The subcontractor was able to tighten production costs at the expense of vulnerable migrants while avoiding tax, insurance and social security contributions.

Prosecutors found that Giorgio Armani Operations had been “incapable of preventing and curbing phenomena of labour exploitation within the production cycle, having not implemented suitable measures to verify the real working conditions or the technical capabilities of the contracting companies”. This is not the first time the Italian fashion industry has come under scrutiny; five major brands have been investigated since 2024, including Tod‘s, Valentino, and Loro Piana.

Deborah Lucchetti, national coordinator of La Campagna Abiti Puliti, identified a system stretched “at the seams by budget restrictions, with first‑tier suppliers forced to turn to subcontractors, effectively pushing players in the supply chain to engage in illegal conduct.” She asked the pointed question: “Is it right that a shoe sold for 500 euros is produced by workers earning 3 euros an hour, six days a week?”

The profit motive does not just tolerate exploitation; it demands it.

VI. Conclusion: The Design Is Not Inevitable

The evidence is overwhelming. From the colonial Congo to the workhouses of Victorian England, from the Special Economic Zones of Southeast Asia to the subcontracting networks of global luxury fashion, the pattern is the same.

The Industrial Revolution and the colonial system were not driven by a “profit motive” and a “sexual driver” as separate things; they are the same thing – a libidinal economy, an engine powered by the desire for power, profit, and the total control of another ‘s body. This desire is then institutionalised in legal, political and economic systems designed to protect the “right “of the powerful to extract value, whatever the cost.

The question is not whether capitalism can produce exploitation. It does, systematically and predictably. The question is: Will we continue to treat these outcomes as “failures” to be managed, or recognise them as features to be dismantled?

This is a systemic feature of an economic model that treats human beings as disposable inputs. The only way to break the pattern is to break the silence – and to break the system that protects it.

The design is not inevitable.

Andrew Klein

The Patrician’s Watch | Australian Independent Media

References

1. Salter, M. & Sokolov, S. (2024). “Talk to strangers!” Omegle and the political economy of technology‑facilitated child sexual exploitation. Journal of Criminology, 57(1), 121–137.

2. Gook, B. (Ed.) (2024). Libidinal Economies of Crisis Times: The Psychic Life of Contemporary Capitalism. Bielefeld: transcript Verlag.

3. Mertens, C. (2023). In the ruins of empire: historicizing sexual violence in Congo. International Feminist Journal of Politics.

4. Mertens, C. (2018). When Archives Speak Back: Sexual Violence in the #Congo Free State. Africa at LSE blog.

5. Wallis, A. (2014). Whores and the law: A case study of the sexual double standard and the contagious diseases acts in mid‑nineteenth century England. Bachelor‘s thesis, Edith Cowan University.

6. Stead, W. T. (1885). The Maiden Tribute of Modern Babylon. The Pall Mall Gazette, July 1885.

7. Siem Reap Times. (2026). Cambodia’s Efforts to Restore Sihanoukville’s Image Amid Scam Allegations.

8. Italian Insider. (2025). Italy cracks down on fashion houses exploiting illegal Chinese labor.

9. Mertens, C. (2018). “When Archives Speak Back: Sexual Violence in the #Congo Free State.”

10. The Fashion Law. (2025). Italy Fines Armani, Shein in Fashion Industry ESG Crackdown.

Leave a comment