Tag Archives: globalisation

Brexit: moving away from globalisation towards self-reliance’  

Colin Hines draws attention to Green MEP Molly Scott Cato’s publication and launch of  a report by Victor Anderson and Rupert Read: Brexit and Trade Moving from Globalisation to Self-reliance’

Although it regrets our leaving the EU and wishes we wouldn’t, the report is written as an alternative approach assuming we are outside the EU.

Its Executive Summary states:This report puts on to the political agenda an option for Brexit which goes with the grain of widespread worries about globalisation, and argues for greater local, regional, and national self-sufficiency, reducing international trade and boosting import substitution”.

Hines continues: “As I am aware it is the first time a report from a politician isn’t clamouring to retain membership of the open border Single Market”

It details the need for an environmentally sustainable future involving constraints to trade and the rebuilding of local economies. Indeed the report actually calls for ‘Progressive Protectionism’ rather than a race to the bottom relationship with the EU – see page14:

Reducing dependence on international trade implies reducing both imports and exports. It is therefore very different from the traditional protectionism of seeking to limit imports whilst expanding exports. It should therefore meet with less hostility from other countries, as it has a very different aim from simply improving the UK’s balance of payments. It could be described as ‘progressive protectionism’, or ‘green protectionism’. X1V reference adds: ‘For detailed proposals on how this could and should be done, see http://progressiveprotectionism.com/wordpress/

Also ground-breaking in Green Party literature of late is its discussion of the arguments for and against managed migration.

Its sensitive handling of this contentious issue for many in the Greens does mark an important step forward and hopefully will help to start an internal debate about whether or not the party should reconsider its open borders approach.

This recent Daily Telegraph article with Iain Duncan Smith and Nigel Lawson frothing to get rid of key environmental regulations shows how impossible any green future will be under a hard Brexit.

Hines feels that we won’t leave the EU and central to that happening will be a realisation across Europe that to see off the extreme right they must manage internal migration and protect domestic jobs. At that point the reasons for supporting Brexit for most are no longer valid.

He ends: “This timely report makes a crucial input to this debate, one that will rage for the next two years”.

 

 

 

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A realistic, grounded alternative politico-economic vision – 2

shaun-5Shaun Chamberlin, of the Fleming Policy Centre, Chelsea Green’s UK/Europe commissioning editor, responds to Hines: ‘Amen’. He continued: ‘This very much echoes my response to the interview question: What would David Fleming’s reaction to Brexit have been?” ‘

“I think David’s work articulates the far more positive, reasonable motives that many will have had for their vote—a desire for more accountable control, closer to home; recognition of the economic truth that unlimited movement of both people and capital does indeed drive down wages for the working class; and above all a desire to reclaim a clear identity—something that David describes as “the root condition for rational judgement”. If you don’t know who you are then how can you know what to do?

“A nation, after all, is a powerful root for identity, built through long association with a particular place and culture, which many generations have shaped and defended”.

As David writes, “if defeated, the nation often manages, eventually, to come back into being, with a sense of renewal and justice. It exists in the mind of its people.” And it gives an identifiable meaning to the sense of “we”, to a “national interest”. This, perhaps, is what the European Union was seen to be threatening—our sense of who we are—and why so many rejected it.

“But more than a route to understanding Brexit’s causes, I see Fleming’s work as a progressive, practical vision of what it could look like. If Brexit is the path we are taking, then we need to reclaim it from the xenophobes and racists who see the “Leave” vote as a vindication.

“Globalisation and neoliberalism are destroying our collective future, but they have also all-but-destroyed the present for many, as the neofeudalism termed ‘austerity’ continues to bite. The one common factor behind unexpected election results like Brexit, Trump and Corbyn may be desperate rejection of the establishment and the status quo—all the major parties supported “Remain” after all.

“It is important to remember that fascists like Mussolini and Hitler didn’t only consolidate power on the basis of lies and fear—they also raised wages, addressed unemployment and greatly improved working conditions. So if we are to avoid the slow drift into real fascism, we need to present an alternative politico-economic vision that can restore identity, pride and economic well-being. We need to tell a beautiful story of how we will make the future better for the desperate, rather than a fearful one. This is the story that Fleming’s books tell, and what inspired me to devote my past few years to bringing them to publication.

His seven-point protocol for an economics based in trust, loyalty and local diversity is, quite simply, the only realistic, grounded alternative I have seen to a future I have no desire to live through”.

 

 

As the ‘old order’ of globalisation is being undermined by data flows, will localisation prosper?

 

Shawn Donnan of the FT reports that the volume of container traffic at ports in America, Europe and Asia has fallen and the value of goods traded around the world was 13.8% lower in 2014.

With the development of the digital economy there has been a shortening of global supply chains as some manufacturers are producing many of the intermediate parts that they once imported for assembly.

Localisation potential?

Instead of exporting production to low-cost countries, there is a surge in flows of cross-border data as new manufacturing technologies, including 3D printing are being used. Donnan notes, “the flow of digital information around the world more than doubled between 2013 and 2015 alone, to an estimated 290 terabytes per second”.

According to the McKinsey Global Institute, flows in finance and services have also fallen and a growing number of economists argue that this slowdown is a sign that the forces that have driven globalisation for decades are beginning to shift.

Some economists note that the plateau in worldwide trade in goods and capital has coincided with a surge in data flows — an indicator, they say, that the digital economy of the 21st century is starting to overturn the old order.

Next: A globalisation wanes, will localisation replace it?