Economic Nationalism | Dr. Graham Bright | Euro Exim Bank

Описание: (0:00) This is the first of a series of blogs on economic nationalism, (0:04) a new trend which is facing countries worldwide. As emerging economies favoured building relations (0:10) with like-minded countries through free trade agreements like the MISA and the AFCFTA, (0:17) they wanted to boost opportunity, investment and overall international trade. But now there's a (0:23) growing realisation that developed nations are reversing that trend.
So-called economic (0:29) nationalism is being actively encouraged. Offensive use of tariffs rather than unbounded (0:35) free trade, restricted rather than free movement of labour and tight control on movement of funds (0:42) across border trying to prevent capital flight. By advocating these very protectionist policies (0:49) and routes to self-sufficiency, there is a much more aggressive involvement by the state (0:54) is seen throughout many nations, often stifling entrepreneurial flair to satisfy nationalistic (1:03) isolationist policies.
This thought process of trading with all, liberalisation and benefits (1:09) for all is now being subjugated by a mantra that the economy should serve nationalist purposes only, (1:17) not personal or corporate in the way it was in the past. And that was done by enabling the (1:22) building of greater military power and national security. The whole concept of mercantilism (1:29) in the construct of economic nationalism has never been more prevalent.
Designed to maximise exports, (1:36) minimise your imports, change your flow of funds in and out, accumulating resources (1:42) for a one-sided trade, one-sided benefit and clearly anti-globalisation. In this scenario, (1:51) international trade is not viewed as a win-win between nations or a meeting of pines. (1:57) Is it a sharing of revenue? No.
Where success, especially economic success, is only possible (2:04) at the expense of other nations, other people's failures or where the real aim is to achieve gains (2:12) for yourself only. As with all nations suffering huge trade gaps, mercantilism aims to reduce (2:19) the possible current account deficit, attempt to secure domestic funds, build reserves of (2:26) finished goods for local markets through investment in international process and industrial processes. (2:33) History shows us that such policies may have contributed to conflicts around the globe.
(2:39) With little agriculture in some economies or manufacturing capabilities, countries then embark (2:45) on aggressive foreign policy, embracing colonial expansion. The 16th century saw a rise of the East (2:52) India Company, in its day the largest company in the world, accounting for over half of all world (2:59) trade, global influence and a value of more than 7.9 trillion dollars in today's money. (3:06) That makes it bigger than Google, Amazon, Microsoft put together.
However, (3:13) nations are already restricting trade, promoting tariffs and subsidies and building domestic (3:19) infrastructure with a view to creating the framework for long-term exports. (3:25) Challenges of globalisation, economic inequality, security issues, limited raw materials will require (3:33) the new technology industries and political extremism and unrest are now unbounded. (3:39) So that's what we're saying when we scroll forward from the 16th century today, (3:44) very little has actually changed.
Through tariffs, sanctions and blatant discrimination, (3:51) adoption of protectionist policies, these factors have created an ever-changing complex landscape (3:57) that makes trade difficult, it's complex, it's bureaucratic, it's fraught with errors, fraud, (4:05) corruption and many other factors which actually stop trading nations being as effective and (4:13) economic as they could be. As a trade finance specialist bank, Euro Exim Bank are positioned (4:19) to enable working with and managing markets, looking at the environmental opportunities (4:24) all on a case-by-case basis. One size does not fit all.
Ultimately, we provide a unique service, (4:33) partnering with corporates and SMEs still prepared and required (4:37) by necessity to navigate the choppy waters of international trade.