A call for building strong productive local and regional communities and new trade systems that fulfil human lives without wasting resources and energy
Today the Financial Times (paywall) reports that the number of foreign investment projects has dropped by 14% to 1,782 in the financial year ending March 2019, since the 2016 Brexit referendum. This is the lowest level in six years, according to a report published on Wednesday by the UK’s Department for International Trade.
As multinational profits continue to fly out of the country and taxes are evaded, we return to the valuable 2017 report by Victor Anderson and Rupert Read entitled ‘Brexit and Trade Moving from Globalisation to Self-reliance’, published and launched by Green MEP Molly Scott Cato.
“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”.
Colin Hines comments: It details the need for an environmentally sustainable future involving constraints to trade and the rebuilding of local economies. On page 14, the report calls for ‘Progressive Protectionism’:
“Reducing dependence on international trade implies reducing both imports and exports. It is 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’“.
The report’s recommendations are summarised under three headings: the environment, globalisation and localisation (below):
- Change trade agreements to allow governments to promote greater national, regional, and local resilience.
- Shift taxes, subsidies, and public expenditure on infrastructure, away from unfairly favouring large and global companies, and redirect them to help build up local economies.
- Link banking directly to local and regional economies rather than to the international financial system.
- Boost the number of places for skills training in sectors where UK production can substitute for imports.
- bring in short-term government subsidies to invest in and develop economic sectors where UK production can be expected to substitute for imports as part of the new strategy. These would not necessarily be ‘infant industries’: they might be old sectors being revived and renewed.
- Introduce or increase tariffs on imports of goods and services, especially those where domestic production is a viable and environmentally sustainable option.
- Democratise English sub-regional devolution arrangements and reform local government finance, so as to provide for effective decentralisation of power.
The globalisation of recent decades has been very one-sided. There have been enormous benefits for large business corporations, financial institutions, and the super-rich. As smaller companies have found it difficult to compete, the multinationals have used a worldwide network of tax havens to escape from taxation and regulation.
‘Brexit and Trade’ sets put a new option for Britain. Instead of removing protective regulations against environmental threats it advocates establishing high Green standards and practical localisation measures. It would address the very real social, economic and environmental problems of globalisation, serving present and future generations well.
In April, Peter Hitchens eloquently described the way this country is being sold to foreign governments and companies:
“I don’t think any other nation would put up with this. Why do we? The most ridiculous is the way our trains – devastated by John Major’s mad privatisation scheme – are falling into the hands of foreign state railways. So, while the Government cannot bear to have railways run by the British state, it is happy to have them run by the German, Dutch, French or even Hong Kong state systems . . . in this country that invented the railway and once exported equipment and skills around the world.”(Right: Private profit from public loss: NIPSA 2013)
- Privatised railways’ jaws are clamped firmly to the public teat; when they fail they can just stroll away from the mess they have made.
- British Rail’s trains were faster and more comfortable. It looked after its track far better and – given the money – it would never have made the mess its successors are now making of electrifying the Great Western line, which is years behind schedule, partly abandoned and vastly over budget.
- In the 20 years to 2013, state subsidies to the rail sector roughly tripled in real terms, while fares continued to rise.
- My trains are almost always late, frequently very badly so.
- But they get more expensive all the time.
- those responsible are protected from us by call centres and unresponsive websites, which only talk to us when they want to.
Finally Hitchens adds: “Last week it emerged that SNCF is bidding to operate HS2, a pointless vanity line that should have been cancelled long ago but which the Government is too weak to abandon. So we might be hiring a foreign state railway to run a service we don’t even need, while Britain is full of sizeable towns with no railway station, which could be linked to the national system for a tiny part of the cost of HS2 . . . The idea that our rulers have any idea what they are doing, or can be trusted with our national future, is a joke. They’re just hoping the bailiffs don’t turn up before the Election. But if they do, what have we got left to sell, to pay our bills?”
Hines argues that the Treaty of Rome needs transforming into a ‘Treaty of Home’ that will allow peoples to protect what they hold dear
Rupert Read has described Colin Hines’ ‘feisty clarion call’ for a change of direction away from acquiescence in the deregulated world that spawned the financial crisis and towards protection of nature, workers, localities and sovereignty, resisting rootless international capital.
As Read says, Hines’ policy of Progressive Protectionism will surely be part of a socially and environmentally viable future: crucial thought-leadership away from the political dead-end of globalisationist fantasy.
Read’s review (text here) will be published in the Ecologist, May/June issue, see Contents https://reader.exacteditions.com/issues/55993/spread/5