Protecting the world through generating a sense of Economic Nationalism wherein “my country is only mine and no longer for the other citizens of any other country” has resulted in the end of an episode which can be called ‘Globalization’. Economic Nationalism is a highly conservative and self-seeking idea of growth limited to boundaries. This can be understood through the emphasis countries like India and U.S has started putting, by bringing about an over importance and sensationalizing when it comes to exporting. Therefore an idea of integrating a country’s economy to the world economy is almost at the verge of an ending and the seed of protectionism which is a highly paradoxical economic term seems to be the 21st century governance.
The very reason for the same however can be seen out of what the process of globalization has generated which is a very neo liberal way of economic thinking. A major pre-globalization episode reminds us that capital did not flow freely and it rested only in sectors like plantations, mining, export activities and the infrastructure required for such activities, such as railways (where typically the rates of return were guaranteed by the colonial state). There was no capital migration in any significant sense to manufacturing, despite the lower real wages and it is in this nature of an accumulation of the capital the creation of ‘the Other’ starts germinating. This creation of the Other needs to be seen as all the more important now because it has always been the Others who has defined and has been the victims and continue to be the victims of this new age protectionism as well to the foregone episodes of globalization.
Creation of the Other
Laborers are of varied types and these varied types can be hierarchized by the play of the hegemony and the capital he/she holds and not by the capability of the laborer to function and the labor skill which he/she possesses. Therefore through this linear outlook of a capital resting phenomenon, a materializing of the laborer who holds more capital is pushed up the demand and supply ladder while the holder of less capital is pulled downward, resulting in him/her being a part of the ‘Other’. This is a global phenomenon which has sprouted out of the ill effects of globalization because the process of globalization invites capital from multiple arenas and since the integration happens in a very rapid way because of the very spontaneous nature of the capital a huge bubble is what ultimately is formed. The very formulation of this huge bubble and its subsequent bursting was the reason that kick started an ending to a phenomenon called globalization. This was followed with the beginning of another episode called protectionism. The US housing bubble in 2008 being the major example.
US Economy has always been considered as a synonymous term to the global trade market, however with the understanding of what globalization has taken them towards, the current government has sorted to a very enclosed and protectionist measure wherein as earlier mentioned only exports are encouraged. In other words a scope for creating a ‘one way free trade’ wherein only the rich will have the ability to participate is being carried forward. Naturally because of this very process of ‘one way free trade’ the basic economic saying of ‘the rich getting richer and the poor going poorer’ starts getting materialized on a very sound economic basis.
The result of this materializing process takes away few who are in the economic system to be no longer a part of the same, for they reach a stage of victimization because of the very play of capital and its favoring for protectionist measures. The earlier globalized state will now fall apart from the others because of the ‘Beggar thy Neighbor’ policy. The fiscal stimulus also will soon start wearing off, because the rich who can be taxed are not taxed because of the earlier said protectionist measures while the poor are not forgotten to be taxed irrespective of the burden of debts which has been always there in the history of economics.
A perfect sum up of the economic system and the continuing determinism that is being exercised reminds me of the statement Marx has made –
“History repeats itself, first as tragedy, then as farce” (The Eighteenth Brumaire of Louis Napoleon- Karl Marx)
- Economics and Philosophical Manuscripts – Karl Marx
The views and opinions expressed by the writer are personal and do not necessarily reflect the official position of VOM.
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