Economic Nationalism

During the U.S. Presidential Election debates last year, I do believe that readers of this blog remember that I've made the observation of some general and strong protectionist tendencies in President Obama. Read here. Of course, there was a strong showing of a commitment to the centre and his selection centrists advisers.

The true test of the pudding however is in the eating. Given the current economic crisis showing no signs of abating nor turning, the policy choices have been revealing. The Economist, undoubtedly one of my favourite periodical for being largely non-partisan and pragmatic has written a great piece in the upcoming issue featuring the revival of "Economic Nationalism". It's the of course another name for protectionism and the retardation of globalisation and international trade.

The article is listed here. http://www.economist.com/opinion/displayStory.cfm?story_id=13061443&source=hptextfeature

In truth, I am extremely worried because it is so much more than their simply trade protection but capital flow protectionism. The impact from jamming world trade is going to make this economic downturn much more severe than it is and could potentially spark political upheaval all around the world and might even prompt revival of the very old enemy of communism or facisms that Obama has eloquently spoken to fight and declared victory over. This is highly unstable for the global order.

The world is indeed looking to the United States for leadership and I sense this with many of my peers here. This is especially so for the people from Asia as the region supports so many export-orientated economies.

This could however be President Obama's most glorious moment and opportunity if he can rally for a new and stronger international order. A global consciousness. Global citizenry. That the world acknowledge that they are economically entwined and need to cooperation and coordinate casting Realpolitik aside.

Singapore is in dire need of this new vision. Considering our boast as a global city, we are truly not and a segment of xenophobic and nationalistic Singaporeans have proven themselves to be myopic and dangerous. On one hand, I feel that our government will be able to make the right call but that might cost them politically because of the growing sentiments of nationalism. The anti-establishment groups and political entities via the blogsphere has totally capitalised on this moment and prove themselves to be nothing more than power corrupt opportunists. However, part of this blame must be laid on the government for not liberalising civil discourse earlier so that we may develop a more non-partisan civil society that is balanced and anchored on pragmatic and sound logic. Now, the emotive voice and gain momentum and will prove to be extremely difficult to stop and extreme.

We are living at a great turning point in history. As the Chinese always say that in every crisis (危机), there is great danger (危), but there is also a great opportunity (机) as well for a better and stronger international order that will send the not only the economic nationalist but the realist to the grave.