Globalisation – the open trading system – is fragmenting

Philip Stephens, an associate editor, in the Financial Times: Globalisation – the open trading system – is fragmenting; it needs an enforcer – a hegemon, a concert of powers or global governance arrangements”.

Evidence: the collapse of the Doha, the demise of global free-trade agreements, and the emergence of regional coalitions and deals. The emerging economies are building south-south relationships and the Brics nations are setting up their own financial institutions.

Colin Hines, co-founder of LWM goes further – and deeper. He advocates the rebuilding and rediversifying of economies by limiting the entry of finance, goods and people from other countries, ensuring local provision of goods, finance and services and weaning themselves off export dependence. Depending on the context, ‘local’ goods would come from the nearest source, the region, the nation state or even a regional grouping of nation states – eg oranges from EU/Spain.

Domestic businesses and funding sources would then meet the needs of the majority in society in all countries. The prospect of such increasing economic security for the majority could gain widespread political support ranging from those on the left, the centre and the greens through to small ‘c’ conservatives.

In 2008, just before the economic collapse, as GND convenor, he presented a mechanism which would have enabled the Green New Deal to prosper. ‘Green Quantitative Easing’ would have made every building in the country energy efficient, and built hundreds of thousands of new, affordable and energy-efficient homes. A massive boost would have been given to economic activity, providing jobs on a living wage in every community in the UK, whilst reducing its environmental impact.

Later this month he will be speaking in Italy at a conference of left economists to float the progressive protectionism agenda and criticise the left, centre and greens for their support of open borders, leaving the extreme right in an ever more powerful position.

Relocalisation: an under reported issue in the French elections

 

In the French election, left wing socialist Jean-Luc Melenchon has stressed the need to relocalise Europe’s economy and to do so by limiting imports.

This has brought Melenchon increased votes in a country where 70% of the population favour some form of protection for domestic production from cheaper, lower waged competitors.

Colin guardian picThis French election trend prompts a call for a debate about the need for ‘progressive protectionism’ in the UK and Europe-wide

LWM’s co-founder Colin Hines explains that progressive protectionism rejects the call for open markets and the need to be internationally competitive.

Acceptance of these edicts as inevitable by the three main political parties has consequences:

  • it drives down tax rates,
  • worsens social and environmental conditions
  • kills local jobs
  • and reduces small business opportunities.

Whistling in the dark to keep up the nation’s economic spirits: promising hi tech export-led growth in an era of rising Asian dominance is the last colonial delusion

The alternative is to propose a set of practical measures for protecting and re-diversifying local economies by limiting what goods they let in and what funds they choose to enter or leave the country.

In the process they will wean themselves off of their export dependence. This will allow space for domestic funding and business to meet most of the needs of the majority in society.

Proposing policies that would result in the grounding of manufacturing, money and services here in the UK would enable politicians and activists to call the bluff of relocation-threatening big business and finance, who at present have the whip hand over all politicians who support open markets.

This is the only way to tackle the economic and environmental crises, return local control of the economy to citizens and provide a sense of security and hope for their future. If implemented it could play a crucial role in seeing off the rise of the extreme right, as this invariably flourishes when the sense of insecurity within the majority worsens.

 

Forthcoming book
Forthcoming book

Progressive protectionism can tackle this insecurity far more effectively than any of the policies offered – at present – by parties of any political hue

The money markets would ferociously destabilise the challenge posed to their present dominance of the world economy by introducing progressive protectionism in one country alone. Europe is facing huge threats from the forces of international finance, yet the continent would be a powerful enough bloc to implement a programme of progressive protectionism, particularly if the politically active started to campaign for it.

The time to start the debate is now.

Abridged from the Progressive protectionism website, written by Colin Hines. See another article on the subject here.

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