Tuesday, 23 July 2019


Liberal Future Debate (5) How Do We Keep It Local?

WELCOME TO the sixth debate hosted by Liberal Future – LF – the youth wing of the National Liberal Party. This debate relates to an article written by Kevin Albertson (who is Professor of Economics, Manchester Metropolitan University, in Lancashire, England) it appeared in The Conversation, which describes itself as ‘an independent source of news, analysis and expert opinion, written by academics and researchers, and delivered direct to the public.’


Originally called Hate Globalisation? Try Localism, Not Nationalism, Professor Albertson wrote his article a little while ago – see the original here: https://theconversation.com/hate-globalisation-try-localism-not-nationalism-86870 – although it’s only recently been brought to our attention. Despite this, we thought that it was very thought-provoking and should form the basis of this debate.


LF doesn’t agree with all of his extremely well referenced article. For instance, we get the impression that Professor Albertson is happy enough with capitalism whereas we’d like to get rid of it completely! We believe that it’s a cruel dog-eat-dog system that it obsessed with centralisation, control and gigantic profits. We’d like to overthrow capitalism and replace it with Distributism & Social Credit.


LF also questions his rather one-dimensional view of nationalism. Not all forms of nationalism are bad. Indeed, there’s probably as many varieties of nationalism as there are varieties of communism, socialism, liberalism, anarchism - and every other ‘ism’ that one can think of! It all depends how one defines nationalism and it’s important not to conflate nationalism – a love of one’s people & nation – with imperialism.


That said, we agree with Professor Albertson’s view that localism is an effective antidote to the misery and exploitation of globalism. For localism supports the local production, distribution and consumption of goods and services. In short, it puts the local economy, community and environment first.


Whilst his article concentrates on the theory of localism, we’re interested in the practicalities of disengaging from capitalism and promoting localism. Simply put – How Do We Keep It Local?


We invite our readers to share their thoughts when this article is reproduced on the Liberal Future Facebook site – https://www.facebook.com/groups/706779429376233/?epa=SEARCH_BOX – and the NLP Facebook site – https://www.facebook.com/NationalLiberalParty/ It goes without saying that there are no official links between Professor Albertson, The Conversation, Liberal Future and the National Liberal Party.


Hate Globalisation? Try Localism, Not Nationalism


Liberal Future – LF – doesn’t agree with everything Professor Albertson (top right) says. This is particularly so of his apparent acceptance of capitalism & his narrow, one-dimensional view of nationalism. However, in the spirit of comradeship, free thought, free speech and open debate, we feature his article below. We believe that localism (bottom left) offers a viable alternative to globalism – a system controlled by the elite (bottom right) which is based on misery, exploitation & greed. Localism can help us devolve power down to the lowest possible common denominator. Small is Beautiful!

IT HARDLY needs saying, but there are changes afoot in the political economy of the world. Where there is globalisation (1), there are globalisation protestors (2). This is nothing new (3), but it is becoming mainstream.


The antithesis of globalisation, nationalism (4), and the pursuit of your own country’s interests over those of everyone else, has bubbled back up in Europe (5). And it’s not just Europe, of course. In the US, president Donald Trump (6) is (among other initiatives) rethinking the American commitment to free trade (7).


In the rest of the world (8), the experience of globalisation shows it creates some winners (9) and some losers (10). This varies geographically (11) and in different economic fields (12), and is shown in different aspects of our lives (13).

And so, someone in London might find their house is worth more. As foreign capital flows in to buy up large swaths of the capital (14) it increases their wealth, while others might be priced out of the market. In some sectors of the market, wages might be declining (15) as a result of global competition, migration, casualisation (16) or automation (17). In the final analysis, however, it is not a matter of whether globalisation causes these changes (18), it is rather more that people feel that it does (19).

Walls and Wails

Globalisation is not, however, merely a matter of trade (20), migration (21) and foreign outsourcing (22). To many it seems Britain itself is for sale (23) as an increasing proportion of UK businesses and assets answer to foreign owners (24).

Economic theory suggests, therefore, the nation will increasingly be run for the benefit of foreign capital (25), rather than the citizens (26). On top of this, there is the danger that inflows of foreign capital will cause the exchange rate to appreciate, making it more difficult to export (27), reducing manufacturing output and reducing employment in those sectors affected.

To protect them from forces beyond their control, citizens across the world are increasingly looking to the nation state for protection, hence the rise of what is often called nationalism. As Abraham Lincoln (28) noted:

The legitimate object of government is to do for a community of people whatever they need to have done, but can not do at all, or can not so well do, for themselves – in their separate, and individual capacities.


It is clear, no individual or community can stand against the forces of global capital (29), and Western governments appear averse to giving the workforce the means to protect itself (30), through, for example, increasing employment rights (31) and unionisation (32). However, in their search for a strong government to protect them, citizens are in danger of giving the state too much power over their lives (33).

It is by no means assured that the policies which suit a strong domestic government will be better than those which suit foreign owned multi-national corporations. Also, history indicates the fear of global capital may be coopted by unscrupulous politicians into a fear of other nations or fear of other peoples.

Think Locally

Rather than nationalism, therefore, we might turn to localism (34). In the UK context, this might be devolution (35) with real (financial) localised power, and that power realised through local government and local business.

An economy of big businesses (operated for the benefit of global owners) is less than ideal for the individual and society. In contrast, a society of many small local businesses is more resilient, more empowering (36) and more in keeping with the spirit of capitalism and of the market (37). We must also bear in mind that increasing business concentration (fewer, but larger firms) is a driver of increasing inequality (38). If a business is too big to (be allowed to) fall (39), then the government has failed in its duty to keep business small.

Economic theory indicates that those with no stake in a community other than profit extraction avoid suffering from localised ill effects such as unemployment (40), poverty (41), want (42) and homelessness (43). It follows those who live and work in a community have a greater stake in its prosperity.


The government might likewise consider how we might prevent those who do not even live in the country from driving up house prices (44).

Local protection from exploitation by global interests requires the right mix of global and local policies. And local government policies require adequate financing. By local financial power, I don’t mean local taxes. That has the potential to fragment the nation, as it has, to some extent, in the EU (45) (whether perceived rightly (46) or wrongly (47)).

If we fund education or social care out of local taxes, for example, there will tend to be a race to the bottom as local authorities will be motivated to underperform to encourage vulnerable families to go and live elsewhere (48). It follows taxes should be collected nationally, and shared proportionally (on the basis of demographic profile) to the devolved authorities.

There is no space here to discuss in detail other possible localism policies here, but there are many ways to promote local ownership and local empowerment. That could include local currencies, boosts to council housing, local authority ownership of utilities or support for locally-owned high street shops. However, it is not a policy mix I suggest, rather it is an emphasis.

Ultimately, the only viable alternative to the choice currently on offer, the choice of Big State or Big Business (49), is Small State and Small Business, or more appropriately Local Government and Local Business. To pursue localism will require a systemic shift in how the national government goes about shaping society, but I suggest it is possible to promote social justice in a capitalist context in no other way.


  1. https://en.wikipedia.org/wiki/Globalization
  2. https://www.telegraph.co.uk/news/2017/07/06/watch-liveprotesters-gather-g20-demonstration-hamburg/
  3. https://www.huffingtonpost.co.uk/dr-andy-price/the-leftbehind-once-had-a_b_13297202.html
  4. https://en.wikipedia.org/wiki/Rise_of_nationalism_in_Europe
  5. https://www.ft.com/content/53fc4518-4520-11e6-9b66-0712b3873ae1?mhq5j=e5
  6. https://www.washingtonpost.com/gdpr-consent/?destination=%2fnews%2fmonkey-cage%2fwp%2f2017%2f06%2f12%2ftrump-is-a-new-kind-of-protectionist-he-operates-in-stealth-mode%2f%3f&utm_term=.05ccee3ca46d
  7. http://fortune.com/2017/03/24/trump-executive-order-trade-deal/
  8. http://www.worldbank.org/en/news/feature/2013/10/25/The-Winners-and-Losers-of-Globalization-Finding-a-Path-to-Shared-Prosperity
  9. https://www.huffpost.com/entry/winners-of-globalization_b_4603454?guccounter=1&guce_referrer=aHR0cHM6Ly90aGVjb252ZXJzYXRpb24uY29tL2hhdGUtZ2xvYmFsaXNhdGlvbi10cnktbG9jYWxpc20tbm90LW5hdGlvbmFsaXNtLTg2ODcw&guce_referrer_sig=AQAAALjgjxdZq0FNm5wFpu_OKjcrntMfnZZ5FmKPGDny358BYykAN-Kc2wge6S-J4pEM0513Hy_uMRKdOny5j73wmidDy_PJdOfRqfkGAY_c40hNZUUtokqqvm0Q85gMrwbEmjSTkxOPrna_u-eKoKcYXAchr1H6WXi1X0Z5FWv82w_Y
  10. https://theconversation.com/the-least-skilled-workers-are-the-losers-in-globalisation-63655
  11. https://www.theguardian.com/cities/2015/jan/19/north-south-divide-widen-thinktank-data
  12. https://www.telegraph.co.uk/finance/newsbysector/industry/11941578/The-perfect-storm-that-has-brought-Britains-steel-industry-to-its-knees.html
  13. https://oxfordindex.oup.com/view/10.1093/acprof:oso/9780198728863.003.0002
  14. https://www.thetimes.co.uk/edition/news/new-homes-sold-to-corrupt-foreign-buyers-gh6v9vf3
  15. https://www.forbes.com/sites/jeffreydorfman/2016/11/30/trump-is-right-globalization-has-slowed-middle-class-income-growth/#642557b22183
  16. https://www.theguardian.com/business/2017/jul/06/uk-workers-poverty-pay-gig-economy-frank-field-report
  17. https://www.theverge.com/2017/3/28/15086576/robot-jobs-automation-unemployent-us-labor-market
  18. https://www.theguardian.com/commentisfree/2016/sep/30/globalisation-poverty-corruption-free-trade-liam-fox
  19. https://www.independent.co.uk/news/uk/politics/globalisation-poll-low-wages-inequality-technology-comres-a7467491.html
  20. https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#70b76ee9ccce
  21. http://www.oecd.org/insights/43568302.pdf
  22. http://www.oecd.org/sti/ind/offshoringandemploymenttrendsandimpacts.htm
  23. https://www.independent.co.uk/news/business/outlook-we-cant-sell-all-of-britain-to-foreigners-1155179.html
  24. https://www.regionalstudies.org/
  25. https://www.msn.com/en-gb/money/companies/33-quintessentially-british-brands-that-are-not-actually-british/ss-AAfpa3h
  26. https://www.dailymail.co.uk/debate/article-1369046/Last-British-owned-port-sold-abroad-UK-sells-soul-highest-foreign-bidder.html
  27. https://theconversation.com/steel-is-just-another-tipping-point-for-britains-unbalanced-economy-58298
  28. http://housedivided.dickinson.edu/sites/lincoln/fragment-on-government-july-1-1854/
  29. http://www.soc.ucsb.edu/faculty/robinson/Assets/pdf/Global%20Capital%20Leviathan.pdf
  30. https://www.washingtonpost.com/gdpr-consent/?destination=%2fnews%2fposteverything%2fwp%2f2017%2f08%2f30%2fthe-trump-administrations-ongoing-attack-on-workers%2f%3f&utm_term=.ad0f2d4e686c
  31. https://www.mirror.co.uk/news/politics/7-times-theresa-tried-slash-10426005
  32. https://www.newstatesman.com/politics/2015/06/conservatives-attacks-trade-unions-are-attack-our-most-fundamental-freedoms
  33. https://mises.org/sites/default/files/Road%20to%20serfdom.pdf
  34. http://www.betterway.network/examples-of-localism/
  35. https://www.gov.uk/topic/government/devolution
  36. https://www.theguardian.com/money/2013/dec/06/shop-locally-small-business-saturday-seven-reasons
  37. https://www.theguardian.com/money/2013/nov/22/house-prices-boosted-thriving-local-trade-small-businesses
  38. https://www.theatlantic.com/business/archive/2015/11/cities-economic-fates-diverge/417372/
  39. https://news.sky.com/story/bank-of-england-governor-ending-too-big-to-fail-not-complete-11059507
  40. https://www.manchestereveningnews.co.uk/business/business-news/4000-more-people-unemployed-north-13777711
  41. https://www.theguardian.com/voluntary-sector-network/2017/oct/05/poverty-austerity-england-charity-support
  42. https://www.theguardian.com/society/2017/aug/29/food-poverty-is-new-normal-in-uk-we-adopted-from-the-states
  43. https://www.independent.co.uk/news/uk/home-news/homelessness-rough-sleeping-rise-crisis-homeless-three-quarters-decade-a7884261.html
  44. https://www.bloomberg.com/news/articles/2017-10-31/new-zealand-to-slap-home-buying-ban-on-foreigners-to-ease-market
  45. https://www.theparliamentmagazine.eu/articles/news/european-court-justice-cracks-down-benefit-tourism
  46. https://www.telegraph.co.uk/news/worldnews/europe/11224615/EU-benefit-tourists-face-being-sent-home-after-landmark-court-ruling.html
  47. https://www.employment-studies.co.uk/news/true-cost-welfare-tourism
  48. https://www.independent.co.uk/news/uk/home-news/over-50000-families-shipped-out-of-london-in-the-past-three-years-due-to-welfare-cuts-and-soaring-10213854.html
  49. https://en.wikipedia.org/wiki/There_is_no_alternative


• CHECK out Liberal Future here: http://nationalliberal.org/liberty-wall-3/liberal-future


• ALSO check out previous Liberal Future debates here:

Liberal Future Debate (1) – Should We Lower The Voting Age Throughout the UK? http://nationalliberal.org/liberal-future-debate-1-%e2%80%93-should-we-lower-the-voting-age-throughout-the-uk

.

Liberal Future Debate (2) – Must The Earth Die Screaming? http://nationalliberal.org/liberal-future-debate-2-must-the-earth-die-screaming

.

Liberal Future Debate (3) – Do Sport And Politics Mix? http://nationalliberal.org/liberal-future-debate-3-%E2%80%93-do-sport-and-politics-mix


Liberal Future Debate (4) – Is Tony Blair A War Criminal? http://nationalliberal.org/liberal-future-debate-3-–-is-tony-blair-a-war-criminal


Liberal Future Debate (5) – Is It Racist To Highlight The Sexual Abuse In Rotherham & Telford? http://nationalliberal.org/liberal-future-debate-4-is-it-racist-to-highlight-the-sexual-abuse-in-rotherham

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