It’s an indisputable fact that British colonizers built roads and railways in India, they established missionary schools, colleges and universities, they enforced English common law and the goal of exploiting natural resources and the 400 million strong Indian manpower at the time of independence in 1947, and trading raw materials for pennies and exporting finished goods with huge profits to the Indian consumer market never crossed their altruistic minds.
Puns aside, there is an essential precondition in the European Union’s charter of union according to which the developing economies of Europe that joined the EU allowed free movement of goods (free trade) only on the reciprocal condition that the developed countries would allow the free movement of labor.
What’s obvious in this stipulation is the fact that the free movement of goods, services and capital only benefits the countries that have a strong manufacturing base; and the free movement of workers only favors the developing economies where labor is cheap.
Now, when the international financial institutions, like the IMF and WTO, promote free trade by exhorting the developing countries all over the world to reduce tariffs and subsidies without the reciprocal free movement of labor, whose interests do such institutions try to protect? Obviously, they try to protect the interests of their biggest donors by shares, i.e. the developed countries.
Some market fundamentalists who irrationally believe in the laissez-faire capitalism try to justify this unfair practice by positing Schumpeter’s theory of “Creative destruction:” that the free trade between unequal trading partners leads to the destruction of the host country’s existing economic order and a subsequent reconfiguration gives birth to a better economic order.
Whenever one comes up with gross absurdities such proportions, they should always make it contingent on the principle of reciprocity: that is, if free trade is beneficial for the nascent industrial base …