Nils KLEIMEIER

Nils Kleimeier, masters student in International Relations and Global Political Economy at the Dresden University of Technology.

A left-wing globalisation?

Pax Economica: Left-wing Visions of a Free Trade World
Marc-William Palen by Princeton University Press, 2024

In his book, Pax Economica: Left-wing Visions of a Free Trade World, Marc-William Palen revisits the history of globalisation and excavates a forgotten lineage of left thought and activism: the economic peace movement, cosmopolitan activists who advocate a peaceful world united by economic interdependence. This type of free trade activism contrasts with the prevailing narratives of British gun-backed imperial free trade. Palen’s book emerges not only as a historical account but also as a timely intervention in an era increasingly defined by the resurgence of economic nationalism and protectionism.

Palen’s historical account represents both a revelation and a reinterpretation, asserting that the history of globalisation is far more ideologically diverse than commonly acknowledged. By weaving together the stories of pacifist capitalists, Socialists, feminists and christians, he aims to present a more nuanced understanding of globalisation’s origins. Some proponents were motivated by profit, others by the proletarian revolution, the fight against world hunger, or religious beliefs. What united them, Palen painstakingly shows, was the pursuit of Pax Economica – “a new prosperous economic order devoid of imperialism and war”. 

The book shines in its critique of protectionism and its imperial consequences, making a compelling case for how desires for self-sufficiency have historically led to expansionism and confrontation. Friedrich List’s protectionist teachings loom large here. Popular again today, Palen reminds us that List’s teaching about “cultivating waste territories” and “barbarous nations” into the “highest means of development of the manufacturing power” represents a “protectionist call for colonial expansion”. What we remember as the imperialism of British free trade, Palen recasts as Listian protectionist imperialism.

Where Palen struggles is in his last chapter. While he uses the first five chapters to untangle the first century of globalist activism, he squeezes everything between the second world war and Russia’s attack on Ukraine into the last chapter. This density is even more concerning as this chapter also contains an analytically crucial element: Palen’s ‘theory of error’ – his explanation of why a Pax Economica failed to manifest itself at different points in time. This theory of error merits attention as it is crucial for the book’s political conclusions.

Why did a Pax Economica not develop after the second world war? In his first explanation, Palen argues that the postwar institutions – the United Nations and the Bretton Woods system – were influenced by the idea of such a Pax Economica, but failed to overcome the rapidly rising paranoia and division that the cold war created. 

Why did the Global South’s aspirations of a New International Economic Order fail? The second glimpse of a Pax Economica, the 1970s activism of the Global South for a fair free trade system, failed for the same reasons. Palen shows how well-founded demands were dismissed and suppressed due to fear of the Bolsheviks and anti-capitalist revolutions. 

Why did a Pax Economica not arise after the end of embedded liberalism? To explain the 1980s period, Palen introduces a counter ideology against the Pax Economica, the so-called neoliberal ‘free-enterprise system’. He argues that neoliberals utilised the century-old groundwork of the globalist movement by aligning with christian activists. These christian libertarians slightly adjusted their position from ‘free trade is a divine law’ to ‘the free-enterprise system is clearly outlined in the bible’. Under the rule of neoliberal thought, the chances of child protection, anti-colonisation and democratisation for the Global South vanished. And while Palen criticises Listian theories for their colonial heritage in developed countries, he deems them necessary and just for developing countries.

But why did globalised neoliberalism ultimately fail to deliver a Pax Economica? Palen’s judgment of the neoliberal era is one of eroding democracy, powerful corporations and “endless US war”. He describes it as a “bipartisan neoliberal penchant for coercive interventionism and the superficiality of the Washington Consensus”. He explains the end of neoliberalism with the rise of sanctions, embargos and coercion culminating in Brexit or the America First style foreign policy. He identifies our current era as a neo-mercantilist period, reinforced by the Covid-19 pandemic, China’s regional expansion and Russia’s nationalist imperialism.

All these accounts lack detail and are focused on highly complex events where the direct impact of interest groups’ influence is difficult to trace. This leaves Palen’s theory – or rather theories – of error unconvincing. In turn, this causes problems for his own political agenda – a new Pax Economica. Palen calls for a “new supranational governing structure” including a disturbingly western-centric “triumvirate of the United States, Europe, and the Global South”. While certainly ambitious, it lacks detail, justification, and, most importantly, an effort to learn from past failures in establishing a Pax Economica. Yes, Palen calls for vigilance against “economic nationalist partnership” with the right, arguing that the emerging protectionist order is the opposite of what left activists have demanded for over a century. Yes, he urges us to use the open door of “neoliberalism’s demise” to fight for a “left-wing globalist” Pax Economica. However, he fails to explain how such a model could resist renewed co-optation by neoliberal forces. This is precisely what happened in the past, repeatedly. How can we be sure that it will not happen again? 

Additionally, we already live in increasingly separated blocks. The politics of reshoring and decoupling are popular, if not yet irreversible. If the Cold War prevented Pax Economica before, how can we overcome today’s division and paranoia? Palen fails to make a compelling case for how to avoid the pitfalls that have historically undermined Pax Economica. 

Given his superficial theory of error and a blueprint that does not meaningfully engage with the failures of the past, he cannot solve the schism of the left regarding globalisation. This is important, as even the title argues that the Pax Economica is a leftist vision – but is it really and is it desirable for the left? Left-wing scepticism towards globalisation is as old as the support that Palen foregrounds. Moreover, the Marxist embrace of free trade follows a distinct strategic calculus: globalisation as a pathway to socialism. The crux of this argument – that free trade accelerates class conflict to the point of revolution – poses a pivotal question for today’s left: Is an anti-capitalist revolution still desired? For the Marxist tradition, support for globalisation would be conditional on continued commitment to revolution. Although Palen presents this tension in his chapter on Socialist internationalism, he fails to address its implications for today. Instead, he advises the left to be moderate and align themselves with capitalists, thus depriving the original Socialist case for globalisation of its analytical foundation. 

This leads to the general theme of the book: visions. Palen maps the interconnectedness of activists through their organisational and personal networks and privileged free trade visions. Just like these activists, he sidesteps the often-dirty realities of globalisation on the ground. Palen justifies this by arguing – in an eerily familiar manner – that ‘real’ globalisation has never been tried before. For a specialist history of left-wing globalist networks, this restriction is unproblematic. However, it severely limits the political conclusions Palen draws in his final chapter.

Pax Economica serves as a crucial reminder that free trade was once a left-liberal ideal. It highlights its potential as a counter-narrative against the rising tide of protectionism. Yet by foregrounding the ideal over the actual and the possible over the proven, Palen’s work ultimately falls short of providing a convincing left-wing case for a free trade world. His exploration into forgotten activism enriches our understanding but also underscores the difficulties of navigating an increasingly fragmented global order.