What should be the future of the global trade order?
Between the U.S. election of President Trump, and Britain’s ongoing attempt to exit the European Union, the revolt against the existing trade order is well underway. But it’s painfully obvious both of these developments were purely nihilistic events, with no coherent ideas for what should come next. Meanwhile, elites and experts in the economics profession are equally adrift. There’s growing recognition that the principles underlying the modern global trade regime didn’t deliver the promised results, and caused a lot of collateral damage. But that’s about it.
But given the mistakes made and the lessons learned, we can at least sketch some rules of thumb that should guide us. These are principles that can be applied to developed and developing countries alike. They can form a new planned global arrangement, or just serve as guiding principles for a more decentralized world; one of piecemeal trade relationships between individual countries.
1. Center workers, voters and the environment, not investors and big corporations.
The status quo is designed to maximize the freedom of private capital to seek efficiencies and profits wherever they may be found. That means standardizing rules and regulations across countries, …read more
Source:: The Week – Politics