FacebookTwitterGoogle+RedditEmail

Brexit: a Victory for Britain’s Working Class

by

Islamabad.

There is an essential condition in the European Union’s charter of union according to which the under-developed countries of Europe that joined the EU allowed free movement of goods (free trade) only on the reciprocal condition that the developed countries would allow the free movement of labor.

What’s obvious in this condition is the fact that free trade only benefits the countries that have a strong manufacturing base; and free movement of workers only favors the under-developed countries where labor is cheap.

While joining the EU, Britain compromised on the rights of its working class in order to protect the interests of the industrialists, because free trade with the rest of the EU countries spurred British exports.

I am of the opinion that the British working classes must have overwhelmingly voted in favor of Brexit, because after Britain’s entry into EU and when the Schengen Agreement on abolishing the internal border checks among the EU member states became effective in 1995, the cheaper labor force of Eastern Europe flooded the markets of Western Europe; and consequently the wages of indigenous British labor force dropped and it also became difficult for them to find jobs because the foreigners were willing to do the same job for lesser pay, hence raising the level of unemployment among the British workers and consequent discontentment with the EU.

The biggest incentive for the British working class to vote for Brexit is that the East European workers will have to leave Britain after its exit from the EU, and the jobs will once again become available with better wages to the indigenous workforce.

Keeping in view the principle of reciprocity enshrined in the EU’s Charter that free trade should be made contingent upon the free movement of labor, now, when the international financial institutions, like the IMF and WTO, promote free trade by exhorting the developing countries all over the world to reduce tariffs and subsidies without the reciprocal free movement of labor, whose interests do such institutions try to protect? Obviously, such global financial institutions espouse the interests of their biggest donors by shares, i.e. the developed countries.

Some market fundamentalists who irrationally believe in the laissez-faire capitalism try to justify this unfair practice by positing Schumpeter’s theory of ‘creative destruction’ that the free trade between unequal trade partners leads to the destruction of the host country’s existing economic order and a subsequent reconfiguration, somehow, gives birth to a better economic order.

Whenever one comes up with gross absurdities such proportions, they should always make it contingent on the principle of reciprocity: that is, if free trade is beneficial for the nascent industrial base of the underdeveloped countries, then the free movement of labor is equally beneficial for the working classes of the developed countries.

The policy makers of the developing countries must not fall prey to such deceptive arguments, instead, they must formulate policies which suit the interests of their working classes. The only trouble is that the governments of the Third World are dependent on foreign investment and the global loan sharks, that’s why, they cannot adopt an independent economic and trade policy.

The so-called “multinational” corporations based in the Western financial districts make profits from the consumer markets all over the world and pay a share of those profits to their respective governments as bribes in the form of taxes. Every balance of trade deficit due to the lack of strong manufacturing base makes the developing nations poorer, and every balance of trade surplus further adds to the already immense fortune of the developed world.

A single large multinational corporation owns more assets than the total GDP of many developing nations. Without this neocolonial system of exploitation the whole edifice of supposedly “meritocratic” capitalism will fall flat on its face; and the myth of individual incentive would get busted beyond repair, because it only means incentive for the pike and not for the minnows.

Although, the champions of globalization and neoliberalism all over the world must be mourning the fate of EU after Brexit, but the recent success of right-wingers all over the world: like the rise of Trump in America, Brexit in Europe, the success of Modi and his hardline BJP in India, the emergence of Buddhist extremists in Sri Lanka and Myanmar and the ascendancy of Islamic hardliners in the Muslim-majority countries, all of these are not the success of conservatism, as such. Conservatism is an outdated political ideology which is simply not a match for the more refined liberal worldview.

The aforementioned reactionary anomalies signify only one thing: the failure of neoliberalism as a political and economic ideology. Social liberalism of ‘60s and ‘70s used to be an inclusive and egalitarian philosophy while neoliberalism, ‘90s-onwards, with its exclusive emphasis on economic growth and elitist values, and without any regard for social justice and class equality, is losing its appeal among the masses all over the world.

In fact, politics has become such a comic business after the onset of neoliberalism that actual comedians like Jimmy Morales won a resounding victory in the Guatemalan elections last year; similarly, the Italian comedian Beppe Grillo’s “Five Star movement” also secured more than 100 deputies in the last Italian elections; and the biggest tragicomic of them all, Donald Trump, too, is all set for a victory in November this year.

Finally and in the nutshell, I would contend that Brexit is actually a blessing in disguise for the EU as well as Britain. The latter always closely identified with the American interests and foreign policy, while France and Germany took the lead in managing the affairs of EU. After Britain’s exit from the EU, it will align itself more closely with the American policy; and the member states of EU too, in the absence of pro-US Britain, might be able to form a more cohesive and coherent union.

Nauman Sadiq is an Islamabad-based attorney, columnist and geopolitical analyst focused on the politics of Af-Pak and MENA regions, neocolonialism and Petroimperialism.

Nauman Sadiq is an Islamabad-based attorney, columnist and geopolitical analyst focused on the politics of Af-Pak and MENA regions, neocolonialism and Petroimperialism.

More articles by:

CounterPunch Magazine

minimag-edit

bernie-the-sandernistas-cover-344x550

zen economics

March 23, 2017
Chip Gibbons
Crusader-in-Chief: the Strange Rehabilitation of George W. Bush
Michael J. Sainato
Cybersecurity Firm That Attributed DNC Hacks to Russia May Have Fabricated Russia Hacking in Ukraine
Chuck Collins
Underwater Nation: As the Rich Thrive, the Rest of Us Sink
CJ Hopkins
The United States of Cognitive Dissonance
Howard Lisnoff
BDS, Women’s Rights, Human Rights and the Failings of Security States
Mike Whitney
Will Washington Risk WW3 to Block an Emerging EU-Russia Superstate
John Wight
Martin McGuinness: Man of War who Fought for Peace in Ireland
Linn Washington Jr.
Ryancare Wreckage
Eileen Appelbaum
What We Learned From Just Two Pages of Trump’s Tax Returns
Mark Weisbrot
Ecuador’s Elections: Why National Sovereignty Matters
Thomas Knapp
It’s Time to End America’s Longest War
Chris Zinda
Aggregate Journalism at Salon
David Welsh
Bay Area Rallies Against Trump’s Muslim Ban II
March 22, 2017
Paul Street
Russiagate and the Democratic Party are for Chumps
Russell Mokhiber
Single-Payer, the Progressive Caucus and the Cuban Revolution
Gavin Lewis
McCarthyite Anti-Semitism Smears and Racism at the Guardian/Observer
Kathy Kelly
Reality and the U.S.-Made Famine in Yemen
Kim C. Domenico
Ending Our Secret Alliance with Victimhood: Toward an Adult Politics
L. Ali Khan
Profiling Islamophobes
Calvin Priest
May Day: Seattle Educators Moving Closer to Strike
David Swanson
Jimmy Breslin on How to Impeach Trump
Dave Lindorff
There Won’t Be Another Jimmy Breslin
Jonathan Latham
The Meaning of Life
Robert Fisk
Martin McGuinness: From “Super-Terrorist” to Super Statesman
Steve Horn
Architect of Federal Fracking Loophole May Head Trump Environmental Council
Binoy Kampmark
Grief, Loss and Losing a Father
Jim Tull
Will the Poor Always Be With Us?
Jesse Jackson
Trump’s “March Massacre” Budget
Joe Emersberger
Rafael Correa and the Future of Ecuador: a Response to James McEnteer
March 21, 2017
Reshmi Dutt-Ballerstadt
On Being the “Right Kind of Brown”
Kenneth Surin
God, Guns, Gays, Gummint: the Career of Rep. Bad Bob Goodlatte
David Rosen
Popular Insurgencies: Reshaping the Political Landscape
Ryan LaMothe
The Totalitarian Strain in American Democracy
Eric Sommer
The House Intelligence Committee: Evidence Not Required
Mike Hastie
My Lai Massacre, 49 Years Later
James McEnteer
An Era Ends in Ecuador: Forward or Back?
Evan Jones
Beyond the Pale
Stansfield Smith
First Two Months in Power: Hitler vs. Trump
Dulce Morales
A Movement for ‘Sanctuary Campuses’ Takes Shape
Pepe Escobar
Could Great Wall of Iron become New Silk Roadblock?
Olivia Alperstein
Trump Could Start a Nuclear War, Right Now
David Macaray
Norwegians Are the Happiest People on Earth
March 20, 2017
Michael Schwalbe
Tears of Solidarity
Patrick Cockburn
Brexit, Nationalism and the Damage Done
Peter Stone Brown
Chuck Berry: the First Poet of Rock and Roll
FacebookTwitterGoogle+RedditEmail