Rajan is not mentioning the elephant in the room- viz. the West's attempt to make trade agreements 'multi-dimensional' in the belief that Globalization was inevitably tied to the triumph of Liberal Democracy and a 'rules based' International Order in which, however, American exceptionalism as global hegemon would be locked in permanently.

This ideologically driven project has crashed and burned. On the one hand, countries like Canada discovered that national sovereignty- more particularly when it comes to environmental protection- was lost giving Corporates power over elected Governments. On the other hand, Globalization meant a new type of plutocratic immigration such that the nature of the elite changed- becoming wholly cosmopolitan and disconnected from the hinterland where either depopulation or third world type problems were emerging. Consider a recent TV series about a US police chief relocating to a rustic part of England. It showed conditions of agricultural serfdom for immigrant workers while the new Lords of the Manor were Crime Lords of an exceptionally ruthless, East European, type. Meanwhile the local people were dying 'deaths of despair' or migrating to the big Cities to join the 'precariat'.



High real exchange rates for 'safe haven' Developed countries was a new type of Dutch disease driving deindustrialization. The fact that the Russian or Chinese or Indian oligarch preferred to keep his money in the UK- where the legal system is very good (if you are rich)- meant that British workers were priced out of jobs. Brexit has permanently lowered the real exchange rate. Moreover, it has increased National sovereignty over the Brits beloved National Health Service. Indeed, since Britain can now get rid of stupid Brussels mandated 'Human Rights' and Constitutional laws, social and political problems can be quickly tackled.



It is tempting for economists to think that Trade Agreements alter the destiny of Developing Countries. The truth is that countries have to follow sensible policies- based on good mimetic targets. Bangladesh is doing so. Pakistan is not and thus has fallen behind.



Still, Rajan- who is actually far more sensible than the rest of his colleagues- is right in saying 'trade agreements must be less intrusive'. Also they should never be 'multi-dimensional' otherwise you have an 'agenda control' problem.