EU Trade Agreements are subjected to a three pronged review before the European Parliament (EP), Council and the European Court of Justice (ECJ), which ordinarily would widen the net for any agreement that falls foul of human-rights ethos to be rescinded. This is not mere comity but a treaty obligation under Article 1 of the Lisbon Treaty and the EU Policy. The EU has taken several initiatives that show its commitments. It has started the EU Cities Award for Fair and Ethical Trade to allow member-state consumers to undertake informed decisions, passed resolutions to halt EU imports of minerals that fund conflicts and forced labour, has advocated for torture-free trade related UN Convention and has recently been incorporating legally-binding labour and environment standards in all its agreements with a specific reference to Paris Agreement. However, since all three bodies at the EU pursue different goals, the conditionality clauses have not always been uniform.
Several of its agreements have been halted over contentious issues of human-rights, such as the EU FTAs with Malaysia, Thailand El Salvador. EU-Myanmar Negotiations on Bilateral Investment have halted after 5 rounds of negotiations because of the Rohingya refugee crisis. Negotiations for a renewed agreement with Russia have also been suspended by the European Council since March, 2014 (annexation of Crimea). EU has also started an official procedure which could lead to suspension of the EU Cambodia Preferential Trading Status because of violation of human rights and labour rights. It has attempted to modernise the first-generation FTAs (executed before 2005) to include more ‘rule and value based’ systems (Mexico, since April 2018) and consistently provided macro-financial assistance to countries like Jordan and Tunisia hosting Syrian refugees, to improve their balance of payments. However, there have been criticisms that in its attempts to forge economic deals with more industrialised states, it has been willing to compromise on the human-rights aspects. A few authors believe, that the EU’s diminishing importance as a commercial hub over emerging economies such as China, India and Brazil, might be reason.
The EU-India Free Trade Agreement (‘FTA’) negotiations that commenced around 2007, have been stalled since 2013 over several issues including India’s dismal record of its treatment of minorities and human-rights defenders, its position on Kashmir (and lately, the Citizenship Amendment Act) and environmental and labour standards such as its tolerance of bonded and child labour. Agreed, there have been a few agreements pursued (1994 Cooperation Agreement on Partnership and Development and the 2004 Strategic Partnership agreement), but they have been more in the nature of political statements than binding economic commitments.
There are also a few concerns emerging with an ‘EU-wide advocacy’ solution, for several reasons including: the marked increase in populist right-wing led governments (for instance, Hungary), rising grievances against the high standards propounded by courts such as the Abu Qatada judgement of the ECtHR which upheld that fair trial principles triumph even national interests, in the context of deportation of Abu Qatada to Jordan, recession trends and economic slowdowns (for example, in Greece) that have lowered the bloc’s bargaining power, EU’s inconsistency in its own internal affairs (for instance, no actions have been taken against Spain over its actions in Catalonia over similar issues of self-determination) and a perception amongst developing countries that human-rights is a Western concept (recently cited by India’s Home Minister, Amit Shah).
Adoption of an intersectional approach
Although the EU speaks collectively on these matters, it is not denied that larger member-states often prevail over the smaller ones at the EP, hence a supranational assessment may not be the best way forward. As of March 2019, 13 member states including Germany, Belgium and France, enjoyed a trade surplus with India, while 20 member states including Netherlands and Spain stood at a deficit. A greater asymmetry of positions could indicate which way the deal ultimately tilts. The latter group would seem to be more willing to hold India to higher standards.
An analysis of the goods traded would be the next step. The EU enjoys a higher export-import ratio over India in goods such as aircrafts and associated equipments for which finding alternate markets would be difficult. Whereas India’s trade in terms of food-products, including sea-food (running into 50,000 crores) have been facing losses over the US halting imports. After the US, the EU would have naturally been the next biggest market, but the inking of the EU-Vietnam FTA indicates that further losses could percolate from the EU.
For a while now, India has been continually adopting a protectionist stance. The government has been contemplating restrictions on imports of electronic goods since it believes that its signing of the WTO’s Information Technology Agreement that led to higher imports by reduction of import duties, hurt its domestic consumers. In April 2019, the EU had taken India to the WTO Dispute Settlement Body on ICT Goods for imposing ‘unlawful duties’. It has also maintained this stance at the recently concluded Regional Comprehensive Economic Partnership (RCEP) over concerns about Chinese goods flooding the market. It seems less likely to compromise over the EU deal now. Apart from this, India has an alternative in the form of an FTA with the Eurasian Economic Union (EAEU) led by its political ally Russia (other countries include Armenia, Belarus, Kazakhstan, and Kyrgyzstan). Since the bloc lies at a distance, it would be unlikely to invest heavily and India need not be too worried about losses to its domestic players. Moreover, there is greater scope for exchange in technology (India has previously expressed its willingness to provide SEZs to Russia) and the bloc is as large as MERCOSUR (Argentina, Brazil, Uruguay and Paraguay) with whom India has had trade pacts since 2009. While Singapore, Thailand, Turkey and Egypt are in the process of negotiating FTAs with EAEU. Vietnam has already entered into an FTA with the bloc and this could be setting a precedent. Finally, India could enter into deal without the added weight of incorporation of human-rights clauses and this makes it more likely to maintain its position on the EU FTA.
However, the EU still holds the bargaining chip because India’s current economic losses and decreasing levels of investment could deter concrete deals at this point.
Cedric Ryngaert, expert in international law, opined that EU’s obligations to ensure its trading partner’s compliance with human-rights standards in context of the Fronte Polisario judgement, were not merely extraterritorial but flowed from its territorial obligations to exercise due-diligence since the agreements were concluded within EU, although its effects were felt on a foreign territory. He argues that even though the EU Courts may not be able to prohibit the execution of agreements, they are still competent to examine whether there has been an ‘error of assessment’ on the part of the Council. There could be similar arguments regarding the application of the passive personality principle (although the principle itself has not gained much traction), since individuals from occupied territories are now residing or are nationals of EU member states, the bloc holds a duty towards them.
Purely academic concerns aside, to prevent backlash on the part of the EU Member States, strict standards of assessment could be confined to ‘serious’ violations as opposed to ‘ordinary violations’. The seriousness could be assessed for example, by identifying whether the category of human rights being violated is peremptory in nature or at least the minimum essential or core obligations. This finds support in the example that even the concept of exercise of universal jurisdiction is limited to certain serious violations and Article 42 of the Draft Articles on Responsibility of International Organizations (DARIO) that prohibits international organisations from recognizing as lawful a situation created by a serious breach of peremptory norms nor render aid or assistance in maintaining that situation. Apart from self-determination and the freedom of religion, the core labour standards (on forced/compulsory labour, association and collective bargaining and child labour) are also part of customary international law.To see how strongly these principles are upheld, notice that even as a part of EU’s Public Procurement policies (See, 2014 Directives) which is supposed to comprise a significant proportion of its GDP (almost 14% of their GDP) and where member states are usually allowed discretion, one exception stood out: where the corporation or its operators have been convicted by a final judgement of child labour or trafficking (Art 57(1)(f) Dir 2014/24/EU).
EU agreements with other industrialised nations have not been completely smooth either. EU opted for consultations (17 December 2018) and follow-ups with South-Korea over non-ratification of four fundamental ILO Conventions and has also referred the matter for arbitration(2 July 2019). It has provided support to Central American countries (Guatemala, El Salvador and Costa Rica) in implementing ILO reforms through their regional offices, adoption of due diligence business plans and formation of tripartite councils (for collective bargaining) while condemning the situation in Nicaragua. In Columbia, Peru and Ecuador, where there were issues over child labour, collective bargaining and association rights, illegal mining and fishing issues, it has set up ‘technical missions’ to identify and provide suggestions (labour networks have been set up, hazardous occupations lists revised in Colombia, financing of labour inspection by EU in these countries, commitments to the endangered species convention). It has provided assistance packages to Georgia and Ukraine subject to them undertaking concrete measures (Georgia has enacted laws on occupational safety and health, while maintaining that Ukraine must address governance issues such as through adoption of anti-money laundering laws).
There are existing bottlenecks in several other countries too, yet, there still exists an agreement.
The EU is generally not hesitant in enforcing the provisions, but believes in initially resorting to dialogues and bilateral talks, seeks reports from civil society, looks to the implementation of the provisions through follow-ups. Suspension or unilateral cessation of operation of the FTAs are a bit unusual. The human rights clauses are unique to the FTAs executed by the EU. These provisions are not standalone, and the whole reason why they exist in trade agreements is to incentivise the partner states to uphold their commitments.
EU has a large presence at the WTO. One of its agendas has been entering into agreements with WTO members and keeping them plurilateral, open for other WTO members to enter at a later stage. This would eventually lead to anchoring those agreements at the WTO Level itself, even if negotiated outside the organisation. India would stand at a loss if it were to leave the deal. India could also be a prominent partner when it comes to trade in services(as of 2014, the Trade in Services for EU stood at 728 Billion Euros and 60% of the EU investment abroad is related to services). It has also been negotiating the ambitious plurilateral agreement on services wherein it will engage in EU-financed exchanges, training and other capacity-building initiatives, negotiation of mobility related issues for professionals and conditions of entry and residence for nationals of non-member states. Instead of out rightly lobbying for stopping all negotiations over the FTA, showing that the EU has an upper-hand, and overselling the importance of the EU trade deal to India is what I believe will be the best way to ensure that India fulfills its human rights mandate. The Indian civil society to engage with trade confederations so as to push their business interests to facilitate trade deals considering their losses. Finally, EU at its end could be led by the UN Guiding Principles on Business and Human Rights(the revised Draft for a binding treaty along these lines was formulated in July 2019) to control corporations entering into trade agreements or investing in countries with low human rights track records.
 The proposal to initiate a trade agreement with a non-member state arises from the European Commission (EC).DG Trade is one of the bodies that leads discussions before the EC. There is also the Trade Policy Committee (TPC) (a working group made up of the EU Member States that works alongside the EC). Both are known to adopt a liberal economic approach. However, EP can take the ultimate decision by choosing to not ratify agreements that have already been executed, although it cannot alter them. The EP is believed to espouse political values over commercial interests. To avert such a situation, the TPC has started deliberating with the EP’s Committee on International Trade. Finally, the European External Action Service (EEAS) is motivated to maintain a coherence in External Policies and is known to prefer values over interests. Legal commitments towards human-rights principles is enshrined also as a part of the Common Foreign and Security Policy, Development Cooperation, Common Commercial Policy, Area Freedom and Justice, the 2012 Strategic Framework and corresponding Action Plan for Human Rights and Democracy and the Common Agreement on the use of Political Clauses, 2009. These policy documents, provide that human rights clauses should be included either as a part of the FTA itself, or a political document that precedes the execution of the FTA. The Commission in certain cases also draws up Impact Assessments (before negotiations) and Sustainability Assessments (during the negotiations) to understand the potential impact of trade liberalisation on the HRs situation in the territory and the State’s ability to fulfill their obligations. This has been understood recently, to be a part of the EU’s obligations under Article 21.
COVID-19, major shifts and the relevance of Kondratief 6th Wave
Covid-19 has changed the global strategic equations, it has impacted each part of human life so has it let us to ponder upon the Kondratieff cycles, as with Covid-19 there has started a new debate about sixth wave, which is about the importance of health sector, especially the biotechnology which is crucial for progress of society in future.
Henceforth, the countries that are working on these sectors know that the most important engine for our economic and social development will be health in the 21st century. For example we have USA that focused on these and now has created around 2/3rd of its jobs in health sectors along with that has invested about $3,500 billion on health sector back in 2017. Also a 2008 report said about 4,700 companies all across worked in field of biotechnology whereby 42% were in North America, and 35% in Europe, which depicts these states long-term understanding of the emerging scenario as seen from the emergence of Coronavirus. But then the on the other side if we look into the health structure of underdeveloped states, we can easily conclude that these states will suffer the most if a global health issue emerges, and in the contemporary world it has emerged in the form of COVID-19.
COVID-19 has brought changes in the political and economic arrangement. It has not limited itself to the China from where it has been started but has impacted the whole world. The virus that is itself unseen has shaken the structure, with severe consequences for all states. No matter if it’s the USA that is the super power or any small states, the pandemic has divulged the capability and integrity of all in their response to the Covid-19. With some having the capabilities to deal with it, but most lacking in these sectors which resulted in huge loss not only of human life but also of resources. Time has come when the world is criticizing globalization at one hand because globalization is the reason for the spread of COVID-19. This has marked the end of one era with the emergence of a new one.
Mention below are some of the major shifts which Covid-19 has resulted in economic sectors in both the developed and the underdeveloped states, along with the major political shift that has led many to debate about the new structure of world after the crisis would be over.
The Covid-19 that was first reported in China, in November has changed the world completely and resulted in a lot of economic and political changes all across. For example the global economy due to Covid-19 crisis have a setback of $590 trillion. Apart from this many people lost their jobs, the household incomes have reduce, moreover World Bank report say nearly 49 million people will move into extreme poverty because of pandemic. Then World largest real estates are having economic problems, the Tourism industry has declined. An estimate showed the loss of about $1.2 to $3.3 trillion in this area of tourism all over world. Also report of International Air Transport Association predicted a loss of $63-$113billion. Moreover the oil sector also faced problem as it was for the first time that its price has gone negative. Henceforth, it can be predicted that once the pandemic is over the world will have a lot to calculate.
The impact of this crisis is seen in both core and periphery states. In core states like the US and china COVID-19 has brought huge economic impact but along with this also a question of who will act as the world saviour. As Chinese economy is expected to decline by 13% in February also the Belt and toad initiative is at halt, but still apart from the economic problem this pandemic has helped a core state like china to use the situation and move towards the status of Global power. Thus this struggle of Global saviour resulted in US and China at odds with each other. Indeed, COVID-19 has brought political repercussions along with economic consequences. When it comes to Europe the industrial production decline by 17%. Likewise USA is also effected by COVID-19 as by this pandemic about 39 million American have lost their jobs, also US economy seen to decline by 20% so US health sector has been in the eye of analyst for its failure to curtail the coronavirus. Then covid-19 has more devastating impact on peripheral states as there health care facility is not well developed. For example the GDP of Bangladesh fell by 1.1%, then many African states that look for tourism as a source of economy faced a loss of about $50 billion. Also 29 million in Latin America fell into poverty. Though they have been exploited in past but the need of the hour is that the world must help them.
Global dynamics are showing transformation amid coronavirus. The pandemic has shown how China is using its trump cards to transform the contemporary situation in its favour while bolstering its image as the “global saviour”. China’s emergence from the sick man of Asian to the positing of global saviour has opened the prospect of a tilt in the global status of Hegemon from US towards China. The question is that will the Chinese strategy amid COVID-19 will hinder the prestige of US who instead of acting as the global leader has shown a deterioration in its role in global governance.
The future of China’s pre-eminence in the global spectrum has been widened by the pandemic. All of this has been further bolstered by the broad rejection of Trump to engage in Europe and elsewhere. COVID-19 not only emerged as an impetus to shift the global dynamic but has helped China to strengthen its position. In response to the confident play by China, US hasn’t come up with any convincing tactics to prevent the increasing role of China in achieving its interest. Recently, a move by Trump administration to withhold US funds of around $400million will surely leave a gap, moreover will be an opportunity for china to bolster its position in WHO. Taking backseat in its global role amid pandemic, then the withdrawal from global treaties, and withholding of funds from WHO shows a pattern which will further create a vacuum for China to take advantage of the prevailing situation.
The current international order set by US will be subject to testation as the changing shifts in the geopolitics have to be catalyzed by the COVID-19. For it is now the right time for us all to ponder the relevance of Kondratieff 6th wave in current scenario of Covid-19. As now the focus has diverted towards the health care system and biotechnology since the world has in current situation saw a blame game between states with few called corona virus as naturally occurring but some regarded it as ‘Chinese virus’. This has led to the realization that that warfare scenario has entered into discussion over biotechnology. So after the Covid-19 pandemic, the policy makers of both periphery and core state will work on new technological area which has the Medical technologies, Nanotechnologies, Biotechnologies etc. for the improvement in health sector will be crucial for the progress in future.
Conclusively, the current COVID-19 as a bioweapon has resulted in a clear impetus and will definitely bring a shift in the states attitude towards medical research and the multiple fields of technology in future, this is so because COVID-19 has created a ground for relevance of Kondratieff 6th wave.
How U.S.’s Response to Covid-19 Could Precipitate 2nd Great Depression
On March 10th of this year, there were 290 daily new U.S. cases of Covid-19 (coronavirus-19).
On March 13th, U.S. President Donald Trump declared a pandemic national emergency, because the number of daily new cases was now suddenly doubling within only three days. However, no lockdown was imposed. The policy-response was instead left to each individual. This is in accord with America’s libertarian idelogy. Trump even announced that “he was allowing his health secretary to bypass certain regulations to provide more flexibility to doctors and hospitals responding to the outbreak” — outright reducing, insead of increasing, federal regulations, this being his way to address the matter. That’s the libertarian response.
Covid-19 (coronavirus-19) cases started soaring in the U.S., from 600 daily new cases on March 13th, to 25,665 on March 31st. Americans were scared to death, and facemask-usage soared, and independent small businesses started laying people off en-masse. (Restaurants, hair salons, travel agencies, inns, dental offices, etc., were hard-hit.)
Immediately, the alarming rise in new cases halted on April 4th (at 34,480), and the daily new cases remained approximately flat, but slightly downward, from March 31 to June 9th (when it reached bottom at 19,166), but then soared yet again, to 78,615, on July 24th.
But, then, it again declined, so that, on September 8th, it was at only 28,561. This was already returning to around what the new-cases rate had been back on March 31st. So: despite peaking again on July 24th, the rate of daily new cases was little changed between March 31st and September 8th. And, all during that 5-month period, people were coming back to work.
The key immediate and direct economic variable affected by Covid-19 is the unemployment rate. Here, that economic effect is clearly shown:
U.S. unemployment: March 4.4%, April 14.7%, May 13.3%, June 11.1%, July 10.2%, August 8.4%
Though the daily-new-cases rate went down after March 31st and after July 24th, the unemployment rate progressed far more gradually downward after March 31st: the small businesses that had been panicked by the explosion of new cases during March were now gradually re-opening — but they remained very nervous; and, so, unemployment still was almost twice what it had been during March.
Here, that experience will be compared with two Scandinavian countries, starting with Denmark, which declared a pandemic national emergency on March 13th, just when Trump also did. “Starting on 13 March 2020, all people working in non-essential functions in the public sector were ordered to stay home for two weeks.” The daily new cases fell from the high of 252 on March 11th, down to the low of 28 on March 15th, but then soared to 390 on April 7th, and gradually declined to 16 (only 16 new cases) on July 9th. Then it peaked back up again, at 373, on August 10th, plunged down to 57 on August 26th, and then soared yet again back up to 243 on September 8th. The new-cases rates were thus irregular, but generally flat. By contrast against the experience in U.S., Denmark’s unemployment-rate remained remarkably stable, throughout this entire period:
Denmark: March 4.1, April 5.4, May 5.6, June 5.5, July 5.2
Sweden’s Government pursued a far more laissez-faire policy-response (“The government has tried to focus efforts on encouraging the right behaviour and creating social norms rather than mandatory restrictions.”), and had vastly worse Covid-19 infection-rates than did the far more socialistic Denmark, and also vastly worse death-rates, both producing results in Sweden more like that of the U.S. policy-response than like that of the Danish policy-response, but far less bad than occurred on the unemployment-rate; and, thus, Sweden showed unemployment-increases which were fairly minor, more like those shown in Denmark:
Sweden: March 7.1, April 8.2, May 9.0, June 9.8, July 8.9
That was nothing like the extreme gyration in:
U.S.: March 4.4%, April 14.7%, May 13.3%, June 11.1%, July 10.2%, August 8.4%
Why was this?
Even though Sweden’s policy-effectiveness was more like America’s than like Denmark’s at keeping down the percentages of the population who became infected, and who died from Covid-19 (i.e., it was not effective), Sweden’s policy-effectiveness at keeping down the percentage of the population who became unemployed was more like Denmark’s (i.e., it was effective, at that). Unlike America, which has less of a social safety-net than any other industrialized nation does, Sweden had, until recently, one of the most extensive ones, and hasn’t yet reduced it down to American levels (which are exceptionally libertarian). Therefore, whereas Swedes know that the Government will be there for them if they become infected, Americans don’t; and, so, Americans know that, for them, it will instead be “sink or swim.” Make do, or drop dead if you can’t — that is the American way. This is why Swedish unemployment wasn’t much affected by Covid-19. When a Swede experienced what might be symptoms, that person would want to stay home and wouldn’t be so desperate as to continue working even if doing that might infect others. Thus, whereas Sweden’s unemployment-rate rose 27% from March to May, America’s rose 202% during that same period. Americans were desperate for income, because so many of them were poor, and so many of them had either bad health insurance or none at all. (All other industrialized countries have universal health insurance: 100% of the population insured. Only in America is healthcare a privilege that’s available only to people who have the ability to pay for it, instead of a right that is provided to everyone.)
On September 9th, Joe Neel headlined at NPR, “NPR Poll: Financial Pain From Coronavirus Pandemic ‘Much, Much Worse’ Than Expected”, and he reported comprehensively not only from a new NPR poll, but from a new Harvard study, all of which are consistent with what I have predicted (first, here, and then here, and, finally, here), and which seems to me to come down to the following ultimate outcomes, toward which the U.S. is now heading (so, I close my fourth article on this topic, with these likelihoods):
America’s lack of the democratic socialism (social safety-net) that’s present in countries such as Denmark (and residual vestiges of which haven’t yet been dismantled in Sweden and some other countries) will have caused, in the United States, massive laying-off of the workers in small businesses, as a result of which, overwhelmingly more families will be destroyed that are at the bottom of the economic order, largely Black and/or Hispanic families, than that are White and not in poverty. Also as a consequence, overwhelmingly in the United States, poor people will be suffering far more of the infections, and of the deaths, and of the laying-off, and of the soon-to-be-soaring personal bankruptcies and homelessness; and, soon thereafter, soaring small-business bankruptcies, and ultimately then big-business bankruptcies, and then likely megabank direct federal bailouts such as in 2009, which will be followed, in the final phase, by a hyperinflation that might be comparable to what had occurred in Weimar Germany. The ceaselessly increasing suffering at the bottom will ultimately generate a collapse at the top. Presumably, therefore, today’s seemingly coronavirus-immune U.S. stock markets, such as the S&P 500, are now basically just mega-investors who are selling to small investors, so as to become enabled, after what will be the biggest economic crash in history, to buy “at pennies on the dollar,” the best of what’s left, so as to then go forward into the next stage of the capitalist economic cycle, as owning an even higher percentage of the nation’s wealth than now is the case. Of course, if that does happen, then America will be even more of a dictatorship than it now is. Post-crash 2021 America will be more like Hitler’s Germany, than like FDR’s America was.
The Democratic Party’s Presidential nominee, Joe Biden, is just as corrupt, and just as racist, as is the Republican nominee, Donald Trump. And just as neoconservative (but targeting Russia, instead of China). Therefore, the upcoming November 3rd elections in the U.S. are almost irrelevant, since both of the candidates are about equally disgusting. America’s problems are deeper than just the two stooges that America’s aristocracy hires to front for it at the ballot-boxes.
Author’s note: first posted at Strategic Culture
Democracy in the doldrums
It is clear that during the COVID-19 pandemic times, Democracy has gone pear shaped throughout the world. Power and Political activity are considered as alpha and omega of the modern day democracy.
The Modern state(political authority),which is based on legitimacy and a tool to deliver political, economical and social justice, has been rendering yeoman service to
corporates, both domestic and foreign. The ruling dispensations all around the globe have resorted to authoritarianism under the guise of health emergency. In addition, the topsy turvy of Democracy, through excessive centralisation and the iron curtain imposed on political activities during this pandemic, has left minimal space to raise the concerns of the urban poor. The pandemic, a bolt from the blue, has caught our health systems off guard. In India, the labour class has caught between the devil and the deep sea, thanks to the recent twin moves of the central government, privatization and the helter-skelter lockdown. The pernicious effects of the lockdown are yet to hit the masses. Seemingly, the rudderless policies of central government have created enough space to further pauperization of masses, mostly have-nots.
Now, the federal governments of third world countries have to walk on razor edge by meeting the fiscal deficit targets on one hand and by connecting the welfare dots on the other.It is not surprising to say that the big corporates are making good fortunes with the relaxation of tax rates and new labour codes. As unemployment is hanging like the sword of domacles over the working class, the corporate class would expect this surplus labour to be at their beck and call.The early warnings of intelligentsia on the consequences of disastrous lockdown were remained as the voices crying in the wilderness. The ruling elite has been trying to enshroud the general despondency among the civic force by shifting the propaganda machinery to sensitive elements like religion, hyper nationalism and sloganeering-not to mention self aggrandizement.
Neo-liberalism and corporatisation
The diktats of the world bank and the IMF(International monetary fund) on the third world nations like pruning the subsidies, roll back of welfare measures and the abatement of labour laws as an essential sina qua non for any sort of relief package during the crisis of BOP(Balance of payments) have left labour class of the thrid world nations in quandary. The US with the support of the WTO( World Trade Organization)had exhorted all these countries to provide untrammeled access its products. Apparently, the aims and paths of federal governments of these nations ,the WTO and the IMF are congruent with regard to free trade and the globalization of capital. The lawful protections for the working class under the labour laws have proved disastrous for the interests of the capitalist class and being viewed as shackles for the exploitation. The decades-long struggle to retain these labour rights in independent nation states has been ending in smoke due to weakened trade unions and the decline of social capital. The time has come to fight tenaciously and move heaven and earth to restore their rights which are otherwise go to the dogs. When the market space is being dominated by Monopoly or Duopoly or Tripoly, the free and fair competition which the unhindered market guarantee is an absolute sham. Extolling the virtues of Neo-liberalism, the modern nation states have centred their development agenda in and around urban centres. Economically, in the post-liberal era of India, the upward mobility is largely confined to a few sections of the urban middle class.
It is wrong to mention that welfare economics is based on “Rob Peter to pay paul principle” when Peter has direct access to resources(natural, political, economical and social) vis-a-vis Paul. It is not the Peter but the Paul who is running from the pillar to post in search of opportunities. The notion of political equality of liberal ideological stream revolves around freedom and liberty of an individual and overlooks the core elements of equality like social and economical justice. The central governments all over the world have successfully repudiated the pro-poor agenda and this volte face from welfare state to pro-capitalist state has pushed the labour class out of the frying pan into the fire.
Nexus between political class and biggies
The unholy nexus between the political class and corporates has been riding roughshod over the interests of poor. This alliance behooves the political class to safeguard the vested interests of corporate bigwigs. It is apposite to mention that representative democracy has been metamorphosing into a turncoat democracy. Back in the day, Politicians were known for their erudition, statesmanship and uncompromising ideological commitment. On the contrary, present day representatives are turning into snollygosters for their personal gains. There are several voluminous reports from different corners on rising economical disparities in the post-liberal era on which no political party is keen to act upon. As Michael Jackson, king of pop, penned in one of his famous tracks “All I want to say is that they don’t really care about us”-the lyrics are still relevant in this pandemic times.
Globalization and dependency
The South Asian nations have started their LPG (Liberalisation, privatization and Globalization) path at the same time, with the exception of Sri Lanka which had opened its economy by fits and starts.They had adjusted their economical apparatus with a new global integration process at a time when the global economical architecture was dominated by unipolar power, the US.
The lopsided globalization process has been converting many third world countries as dependents and in some cases almost to a level of aid recipients upon the erstwhile colonial powers or the US. Under the banner of global integration, all these nations were dragged into this complex whole, in most of the cases through persuasion. In the name of free trade, the Western powers have been bleeding these nations white of their resources. The asymmetrical globalization has also challenged the sovereignty of these nations while the same has remained intact in case of developed nations. The US has been playing a rigged game of globalization under the auspices of the WTO, the world bank and other agencies. The time has come for these players to bury their hatchet and rise as a one voice to have a just order at the international sphere.
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Newsdesk3 days ago
World Bank Sets Ambitious Targets for Green and Resilient Economic Growth in Africa