Economist Korenivsky: The Myth of Free Trade as a Tool for Hegemons

A Critique of Free Trade

According to ХВИЛЯ: In an interview with political analyst Yuriy Romanenko, economist Viktor Korenivsky offered a critical perspective on the concept of free trade, drawing on historical experience and the works of Adam Smith. Korenivsky argued that while free trade may appear to be an ideal solution, it is not always the sole path for a nation's development in a competitive global economy. This debate is particularly relevant in an era of renewed economic nationalism and shifting global supply chains.

Historical Precedent

Korenivsky referenced Adam Smith's seminal work, 'The Wealth of Nations,' which examined Britain's trade war with the Netherlands. According to Korenivsky's interpretation, Smith acknowledged in this work that tariffs could be justified during periods of economic rivalry with other states.

'He [Smith] elaborates: free trade is all wonderful. You should never impose any tariffs under any circumstances... However, tariffs can be introduced if you are in competition with another state, if you are engaged in this kind of economic confrontation.' Viktor Korenivsky

Korenivsky further emphasized that states aspiring to become hegemons first close their domestic markets to nurture their own producers. 'A state that wants to become a hegemon always first closes its internal market, makes it as large as possible, and cultivates its own producer. Then, when that producer is capable of outcompeting rivals, they enter the international arena and the hegemon begins to proclaim: 'Remove your tariffs, the market will solve everything, talent will solve everything,'' he added.

Thus, Korenivsky points to the necessity of a cautious approach to free trade, one that considers historical context and the realities of international competition. His analysis suggests that strategic protectionism has historically been a stepping stone to economic dominance, not an aberration from it.

This discussion underscores the importance of balancing free trade with the protection of national interests amid global economic challenges. In an environment of intensifying state rivalry, economic strategies informed by historical experience can be crucial for achieving sustainable development. It is vital for countries, especially those with emerging markets, to strengthen their domestic economies before fully engaging in international trade.