European Capitalism and World Trade

Abstract

In this essay I propose to examine three related developments in the world economy-first the changing structure of West European economies (particularly those of the Six Common Market countries); secondly, the factors determining the growth of world trade and, thirdly, the nature of present international capital movements. My conclusion will be that we are entering upon a period of much sharper competition amongst the capitalist powers, in which the industries of the Six are likely to move out on to the world stage and present a much greater challenge than heretofore to the positions which Britain has been able to hold on to in the face of United States world hegemony. The fashionable solution is for Britain to "enter Europe". It will be argued here that this is no solution; for British industry to concentrate its efforts in half of Europe plus half of Africa would be a mere narrowing of the struggle; that on the contrary our only hope lies in creating a framework for the growth of world trade as a whole, in which all the industrial powers can find room to expand their sales. If that cannot be done, we may expect to face very serious difficulties in our foreign trade, difficulties that will put at risk all our domestic economic plans.