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.

More articles by:

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

November 23, 2017
Kenneth Surin
Discussing Trump Abroad
Jay Moore
The Failure of Reconstruction and Its Consequences
Jeffrey St. Clair - Alexander Cockburn
Trout and Ethnic Cleansing
John W. Whitehead
Don’t Just Give Thanks, Pay It Forward One Act of Kindness at a Time
Chris Zinda
Zinke’s Reorganization of the BLM Will Continue Killing Babies
David Krieger
Progress Toward Nuclear Weapons Abolition
Rick Baum
While Public Education is Being Attacked: An American Federation of Teachers Petition Focuses on Maintaining a Minor Tax Break
Paul C. Bermanzohn
The As-If Society
Cole A. Turner
Go Away, Kevin Spacey
Ramzy Baroud
70 Years of Broken Promises: The Untold Story of the Partition Plan
Binoy Kampmark
A New Movement of Rights and the Right in Australia
George Ochenski
Democratic Party: Discouraged, Disgusted, Dysfunctional
Nino Pagliccia
The Governorship Elections in Venezuela: an Interview With Arnold August
Christopher Ketcham
Spanksgiving Day Poem
November 22, 2017
Jonathan Cook
Syria, ‘Experts’ and George Monbiot
William Kaufman
The Great American Sex Panic of 2017
Richard Moser
Young Patriots, Black Panthers and the Rainbow Coalition
Robert Hunziker
Fukushima Darkness
Lee Artz
Cuba Libre, 2017
Mark Weisbrot
Mass Starvation and an Unconstitutional War: US / Saudi Crimes in Yemen
Frank Stricker
Republican Tax Cuts: You’re Right, They’re Not About Economic Growth or Lifting Working-Class Incomes
Edward Hunt
Reconciling With Extremists in Afghanistan
Dave Lindorff
Remembering Media Critic Ed Herman
Nick Pemberton
What to do About Al Franken?
November 21, 2017
Gregory Elich
What is Behind the Military Coup in Zimbabwe?
Louisa Willcox
Rising Grizzly Bear Deaths Raise Red Flag About Delisting
David Macaray
My Encounter With Charles Manson
Patrick Cockburn
The Greatest Threats to the Middle East are Jared Kushner and Mohammed bin Salman
Stephen Corry
OECD Fails to Recognize WWF Conservation Abuses
James Rothenberg
We All Know the Rich Don’t Need Tax Cuts
Elizabeth Keyes
Let There be a Benign Reason For Someone to be Crawling Through My Window at 3AM!
L. Ali Khan
The Merchant of Weapons
Thomas Knapp
How to Stop a Rogue President From Ordering a Nuclear First Strike
Lee Ballinger
Trump v. Marshawn Lynch
Michael Eisenscher
Donald Trump, Congress, and War with North Korea
Tom H. Hastings
Reckless
Franklin Lamb
Will Lebanon’s Economy Be Crippled?
Linn Washington Jr.
Forced Anthem Adherence Antithetical to Justice
Nicolas J S Davies
Why Do Civilians Become Combatants In Wars Against America?
November 20, 2017
T.J. Coles
Doomsday Scenarios: the UK’s Hair-Raising Admissions About the Prospect of Nuclear War and Accident
Peter Linebaugh
On the 800th Anniversary of the Charter of the Forest
Patrick Bond
Zimbabwe Witnessing an Elite Transition as Economic Meltdown Looms
Sheldon Richman
Assertions, Facts and CNN
Ben Debney
Plebiscites: Why Stop at One?
LV Filson
Yemen’s Collective Starvation: Where Money Can’t Buy Food, Water or Medicine
FacebookTwitterGoogle+RedditEmail