Socialism in the EUby
Nima Sanandaji
There are increasing signs that socialist ideas are gaining influence in the EU. A few days ago the EU commission released a communication titled Promoting decent work in the world. Decent work is, according to the commission, a concept that stands for jobs with better welfare protection, "social dialogue" and equal opportunity. Not only would the EU strive for more such policies in Europe, but also abroad. This Thursday (the first of June) the EU parliament is voting on a bill that, if passed, would dramatically change the EU policies regarding trade, globalization and poverty. The proposal amongst others states that there is no clear connection between trade, development and reduction of poverty and that bringing down trade barriers threatens poor countries. It explains that we need an international trade system which aims to create full employment and enhance environmental development. Trade is, in other words, not the voluntary exchange of goods between individuals and companies, but a policy tool for politicians to bring societal change. We seem to live in a time where the same socialist ideas that previously have failed around the world are resurfacing under new names such as fair trade, decent work and corporate social responsibility. Few EU politicians seem to realize that the poverty in African countries, for example, mainly depend on the fact that this continent has the least capitalism in the world but is over riddled with state intervention, trade barriers and experiments in so-called African socialism. Even fewer seem to understand that concepts such as fair trade only spell more problems for international development. Unfortunately the free market movement in Europe remains silent about the policy shift towards leftist economic thinking that is occurring in the EU. The Swedish free market author Johan Norberg is among the few who has reacted. On his blog he writes:
Norberg explains that these ideas are very destructive, and indeed he is right. The policies of protectionism, foreign aid and planned economies have all been implemented in numerous third world countries and have all failed. However, countries such as China and India have experienced rapid growth and poverty reduction by moving towards property rights, free trade and free markets. This has benefited billions of people who live in these countries, but also consumers and producers in other nations. It should be evident for any clear thinking policy maker that economic freedom leads to development and that socialist policies, even though packaged in new slogans, will lead to stagnation and poverty. We can only hope that there are some clear thinking individuals left in the EU Commission who will resist adapting planned economy over free markets. Thanks to Henrik Alexandersson for providing information about the development in the EU Commission. Update: According to Swedish writer and blogger Henrik Alexandersson it seems as if the bill has indeed passed. It has however been altered – some of the socialist rhetoric is gone and some free trade ideas have been included.
Link to where Alexandersson writes about the bill that passed (in Swedish). June 5, 2006 Nima Sanandaji [send him mail] is president of the Swedish think tank Captus and the editor of Captus Journal. He is a graduate student in biochemistry at the University of Cambridge. Copyright © 2006 LewRockwell.com |
Unfortunately,
it seems as if the EU has indeed taken a step towards socialism.
The bill that passed still includes leftwing ideas, such as that
third world countries benefit from government distribution of income,
that aid should be increased, that trade unions should have more
power, that entire sectors should potentially be excluded from free
trade, and that corporate social responsibility is positive.