Problems with free trade? Solutions?
The phenomenon of globalization deserves more study, analysis and explanation.
Developing countries had left-wingers who thought of globalism as a bane for their countries, but the right wing saw profit in opening up markets and seeking foreign investment.
It helped them, India and China could recover from the old socialist ideas after allowing foreign investment. China still called itself communist, but its markets were more open than ever.
But, there was a cultural argument from the social right that it was Westernizing these societies and an economic argument from the left that it was not helping the very poor.
I believe that the previous argument was true, it did help in the economic growth of these countries. This also helped domestic industries which succeeded in this competitive environment.
But, did this hurt developed countries in the sense that, companies moved their labor intensive units to places where labor was cheaper?
I think, it did. Hence, we can see discontent not only in rural America but also in rural England. The Trump vote and the Brexit vote was reflective of that.
Even a vote for Corbyn or even Sanders would be a vote for social globalization, but protectionist economic policies.
This must be one of the first backlashes in the developing world to free trade : and this onslaught comes both from the right and the left. There are genuine loopholes left by globalization : but it has also led to unseen prosperity in the previous century.
What is the solution to that?
Is globalization going wrong?
Are we doing it wrong?
