Category: Democracy

How free is free trade? On CETA, TTIP, and other false promises

Regina Kreide is Professor of Political Theory and History of Ideas at the Institute of Political Science, Justus Liebig University, Giessen. This guest post is Part 3 of a special series on TTIP that we’re running this summer.

Lines of social conflict are no longer configured in terms of “more state” or “less state”. Opinions differ as to how open or closed our societies ought to be. The same holds not just for matters of immigration, but also for economic and financial-political developments. But does opening economic borders lead to greater “plenty” for all? What, for that matter, does “open” mean in this context? Counter to commonplace views of free-trade agreements, a closer look makes one thing clear, above all: economic “globalization” does not create prosperity for the many. More still, the term is in no way synonymous with an open society or open economic borders. The contrary is true. The example of water supply shows that free trade agreements such as the CETA and the TTIP lead to economic foreclosure and to the bypassing of existing international law. It is “open” – like a one-way street – only for massive incroachments on our societal order.

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Experiencing and responding to hate

This post has been published anonymously to protect the identity of its author, who is still receiving messages of hate.

Recently I did a radio interview in which I argued for equal access to certain social services, such as health care, for migrants and refugees. I did not focus on the instrumental value migrants have for countries – I did not focus on the economic and health benefits everyone has if people on the same territory are able to work, and are healthy and sane. I focused on the broader ethical arguments for equal access, even though I mentioned the instrumental arguments too. Perhaps I should have expected that not everyone would agree with my views. But nothing could possibly have prepared me for the hate mail that I received after the interview. In this post, I try to describe the experience and make a plea for greater solidarity in standing against such hate.

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TTIP – What we’ve learned in the debate

This post is Part 2 of the special series on TTIP that we’ll be running in the coming weeks.

12/07/2014 - Protestors against the EU-US trade deal (TTIP - Transatlantic Trade and Investment Partnership) march from the Department for Business, Innovation and Skills to Europe House, the London Headquarters of the European Commission and the European Parliament, in Smith Square, London.

Anti-TTIP protesters in London, 2014. Wikimedia Commons.

TTIP is a complicated issue – but the fact that there is so much public debate about it shows that we have, after all, learned something from the Great Financial Crisis, or so I will argue. Before this crisis, many debates about economic policy took the form of “more market, please” (usually coming from the right) versus “more state, please” (usually coming from the left). But this way of carving up the terrain overlooks the essential preconditions of markets that are themselves political. In addition to questions about “more market” versus “more state”, we need to ask questions about who sets the rules of the economic game.

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TTIP and Human Rights: The Need to Fight Harmful Tax Practices

Matthias Goldmann is Junior Professor of International Public Law and Financial Law at the Goethe University in Frankfurt. This guest post is Part 1 of a special series on TTIP that we’ll be running in the coming weeks.

Anti-TTIP protesters in London, 2014. Wikimedia Commons.

Anti-TTIP protesters in London, 2014. Wikimedia Commons.

The ongoing debate about the Transatlantic Trade and Investment Partnership (TTIP) has shed new light on the effects of trade on economic and social equality. While it is well understood in theory that free trade is likely to generate aggregate welfare benefits, in practice the allocation of these benefits seems to be highly unequal. In developed economies, free trade might lead to the outsourcing of jobs of low-skilled workers to places with lower labor costs. In developing economies, trade might generate low-skilled jobs, but with international competition preventing wages from rising. Entrepreneurs and trading companies rather than workers seem to collect a large share of the benefits of international trade. As I will argue, this threatens the economic, social and cultural rights (ESC rights) of low-skilled workers. Free trade agreements (FTAs) are therefore only acceptable to the extent that participating governments take measures to mitigate their impact on low-skilled workers. To generate revenue for such measures, states should devise strategies to combat international tax evasion and tax competition.

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Euthanasia and Slippery Slope Arguments

One argument made against the proposal to legalise assisted dying in the UK is that making this change might result in older citizens feeling pressured to choose death, increased pressure on people to think about and defend their existence, and theslippery-slope inevitable acceptance of voluntary and, then, involuntary and non-voluntary euthanasia. This kind of argument can be called a slippery slope argument. A
slippery slope argument claims that if we make a proposed policy change, other changes or outcomes will occur, and because these other outcomes are objectionable, we should not make the policy change. I am generally sceptical of slippery slope arguments and in this post I wish to register some issues with their use.

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Are financial markets – markets?

Philippine-stock-market-board

(source: wikimedia)

What a weird question, you may think. But consider:

  • In textbook markets, what is traded are products that are supposedly useful to customers. What is traded in many financial markets are highly artificial contractual arrangements that are several layers away from what happens in the real economy.
  • In textbook markets, participants are liable to go bankrupt if they overspend. In financial markets, some market participants know that they are too big to fail, creating problems of “moral hazard.”
  • In textbook markets, participants are expected to inform themselves about the products they trade. At least in some financial markets, what matters are not the “fundamentals” (e.g. the economic success of a company the shares of which are traded), but what other participants do. Many participants try to make profits by outrunning market movements or “sentiments”; this can lead to large swings, in disconnect from fundamentals (more…)

More thoughts on the £35,000 threshold – a response to Jesper Pedersen

The UK government has recently announced that it is raising the income threshold for non-EU citizens who wish to immigrate to the UK from £20,800 to £35,000. This threshold will apply not just to new immigrants, but also to those who have lived in the UK already for more than five years. It is the contention of this post that this new £35,000 threshold is not just unwise or poorly thought out, but also unjust.

Jesper Pedersen considers this issue with admirable even-handedness, but what if, rather than doing anything akin to sitting on this particular fence, we wanted to vault right over it, and claim – as I do here – that the policy is unjust? What support for making this statement could we muster? (more…)

Is the £35,000 rule unjust?

From the 1st April onwards any non-EU immigrant to the UK who does not otherwise have a connection with the country* must earn at least £35,000 by the end of their fifth year here, or otherwise face deportation. This policy is expected to make a small but largely insignificant contribution to lowering net migration numbers.

The commentariat’s verdict has been unequivocally harsh. This discriminatory law, it has been pointed out, will do next to nothing to keep out the kinds of people that draw the ire of the tabloids: unemployed “scroungers” and low-skilled immigrants who, it is claimed, depress the wages of – and take jobs away from ­– low-skilled British workers.

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Voters or residents: how should we draw our electoral map?

In recent months, the Right in both Britain and the US have been accused of trying to manipulate electoral rules to increase the influence of their supporters, and diminish the power of left-leaning voters. Both cases raise important questions about the objectives and principles underpinning electoral democracy, and specifically who elected representatives are supposed to represent.

At the heart of the dilemma is the question of how electoral districts should be drawn.

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What can republicanism offer the left?

the republican magazine

When you tell people that you work on republicanism, you are often met by a concerned look. You then have to rush to explain that by ‘republicanism’ you, of course, do not mean the party of Trump and Palin. Nor – you then have to add – do you only mean that you take a particular dislike to Elizabeth Windsor. This public understanding of republicanism looks set to only get worse, with the French centre-right UMP party, last year, successfully renaming itself Les Républicains.

The prospects for recovering republicanism for leftist politics might therefore not seem particularly promising. The label ‘republican’ might simply be too poisoned by its associations with right-wing parties or too easily reduced to narrow anti-monarchism, to be of much use to radicals and progressives. Yet, despite these concerns, I do think that republicanism has something to offer to the left.¹ I believe that its values of popular sovereignty, civic virtue and freedom, and the political proposals we can draw from them, make a recovery of republicanism attractive.

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