The pitfalls of economic nationalism

I continue to be fascinated by how the downward spiral of the global economy is playing out in the developed countries of the world and how it is relevant or irrelevant to our own situation in the developing countries, especially in our region. One thing that has been brought to the fore by the crisis is economic nationalism in most European capitals as a result of increasing unemployment. British workers have been demonstrating against foreign workers especially from other European Union (EU)countries like Italy. This scenario has played out in France where car making companies among others have been laying off workers like no body’s business. Apparently, many of the laid off workers are nationals. The major reason for this outcome of the tight economy is that foreign workers are more than willing to work for lower wages compared to the nationals. Sometime ago, British premier Gordon Brown was quoted saying something to the effect that British jobs are for British workers. The Browns words have been replayed and become a slogan of sorts for British workers, who are currently demonstrating against foreign workers taking their jobs. The ranting against foreign workers goes against the rules of the EU that allows free movement of labour in Europe. Thus the words of Gordon Brown and the actions of British workers are a reflection of economic nationalism. The tragedy of this scenario is that it only comes out when the economy is in recession. Apparently, the above scenario of economic nationalism, in a way plays out in other parts of the world. Our own East African Community (EAC) has been trying to facilitate the free movement of labour in the region. Whereas at the policy level this scenario is being vigorously advanced, it may not necessarily have the full support of the working class in the now five member regional body. This has also been witnessed in South Africa. How does this manifest? In South Africa it was through the lynching of foreigners by South Africans in a case of virulent xenophobia. In our region it has not been seen in an open and drastic manner. As the EAC evolves, regional leaders need to be aware of such an eventuality and a need to carry out a sensitization of the positive attributes of free movement of labour within the region. And positive outcomes of such are many and far outweigh the negative results. Foremost the EAC region has been historically homogenous in one way or the other. There are many things that unite us than divide us. Many have gone to school and lived in the countries of the community that are not their home countries. This tells us that we can work and live in any country within the community without any hindrance or trouble if we so choose. It has been stated that one of the ingredients that helped the Asian tigers like Japan to develop at a terrific speed is economic nationalism. However, it played out in such a way that the Japanese Ministry for Industry and International Trade facilitated the acquisition of skills from the west through scholarships and bringing the skills back home. One thing is that they never locked out foreign workers. Foreign workers continued to play a supporting role until recent times. Japan was at one time a leading destination for African migrant labour. Economic nationalism can only be positive if it serves to encourage nationals to invest in the home country and also work to tap foreign labour for economic development. Up to now many medical practitioners from developing countries leave their home countries to go and work in the west. This has left health care in tatters while facilitating better services in the west. All this comes back to attractive wages. We are witnessing an unprecedented period of time when many people in the EAC are crossing borders in search of work in the region. This is important in that it supplements what others lack. It ought to be encouraged to create competition and hence qualitative improvement in the labour market. Contact: frank2kagabo@yahoo.com