The absolutism of the key tenets of neo-liberalism: privatisation, deregulation, balanced budgets have all been rejected by all but the most dogmatic. Apart from one that is: the primacy of free trade.
So writes Noreena Hertz, economist and author, in her op-ed at Spiegel Online: “Is Protectionism Really All that Bad?”
Despite the nationalization of banks, calls for increased regulation, and massive trillion dollar deficits amassed, the status of free trade remains “basically sacrosanct”, she writes. “‘Free trade is good’ continues to be presented as a totemic truth, ring-fenced from debate or interrogation.”
An examination of the G-20 communiqué (pdf) from this week’s meeting seems to confirm Hertz’s assertion.
The G-20 leaders stated: “We believe that the only sure foundation for sustainable globalisation and rising prosperity for all is an open world economy based on market principles, effective regulation, and strong global institutions.”