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Выживание Простейшего: Европейский Союз Как Добровольно Принятый Восточной Европой План Моргентау. Уроки И Уникальная Возможность Для России
[Survival of the Simplest: European Union as a Self-Imposed Morgenthau Plan for Eastern Europe. Lessons and a Historical Opportunity for Russia]

Author

Listed:
  • Victor, Spirin

Abstract

According to the central dogma of international economics, isolation leads to inevitable stagnation, and the only way to development is through open markets and free trade. However, as the experience of the last thirty years has shown, premature opening of the markets of developing countries for free trade with developed countries leads to the destruction of the most advanced industries in developing countries and primitivization of their economies to the level of extraction of natural resources or the simplest production operations on imported equipment, performed by cheap labor. In this article, we will conduct some simple case studies demonstrating the primitivization of the economies of Eastern European countries, which, by joining the European Union, have entered an absolute free trade area with more developed countries. As a consequence, Russia's "isolation" from the developed countries presents a unique opportunity for the reindustrialization of the economy. With successful implementation of a prudent industrial policy, Russia has a chance to become a leader of the developing world in creating a new paradigm of economic development.

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References listed on IDEAS

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  1. Spirin, Victor, 2021. "Vanek-Reinert Effect as a Corollary of Ricardo’s Comparative “Advantage”: a Simple Numerical Illustration," MPRA Paper 108548, University Library of Munich, Germany.
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Keywords

Free trade; Vanek-Reinert effect; Morgenthau plan; Eastern Europe.;
All these keywords.

JEL classification:

  • F60 - International Economics - - Economic Impacts of Globalization - - - General
  • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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