The Free Trade Debate, Economic Recession and the Global South since 2000AD

Abstract

The end of the Cold War, which came on the heels of the disintegration of the Soviet Union and the near-collapse of the Soviet-styled communist ideology, paved the way for globalization and the entrenchment of a Western-styled economic system hinged on free enterprises. Free enterprises encourage such liberal economic programmes as private initiative and entrepreneurship, accumulation of capital, de-regulation, competition, and trade liberalization, among others. Most developing countries, without much choice, got integrated into this global capitalist system. How they fare as regards economic growth and development is determined by an objective research and interpretation of available data on their economic performance since the trend of “free trade” absorbed them in the global capitalism. The debate on the credibility of “free trade” as a determinant of mutual economic growth and development has been prevalent in international political economy discourse since the 18th century. The credibility of “free trade” has been called into question, especially its effects on the countries of the global South or the developing economies. This study assesses the debate on free trade over the years and how this trend affects the countries of the South in the 21st century economic recession. Most of the scholars and experts of the developing world extraction vehemently kick against the premature integration of the developing economies into the already established western capitalism. They blame the adverse effects of the recession on the South on this unequal relationship. This study also presents some of their arguments. The work makes use of diverse secondary and tertiary sources and the thematic historical approach in the interpretation and discussion of the accounts presented.

Key words: Free trade, globalization, economic recession, and global South