COLONIALISM IN ACTION

 Exports will be used to create operating zones of domestic monetary unit. A zone, where products and services will find their consumers, will simultaneously be a zone for using national money.

There are various models of capitalist concept of foreign trade. In accordance with theories of absolute and comparative advantages, countries that produce goods at lower costs and thus have advantage over other countries should export these goods and import goods, in production of which there are no advantages, i.e. their production is more costly than in other countries.

Adhering to these recommendations and having yielded at some point of time to the globalist forces, underdeveloped countries have reached the condition of full dependence on these forces in all the fields.

If any country, irrespective of the cost, fails to meet with its own production its need in food, defense, housing, clothing, education and health, it will be unable to stand on its feet and continue its existence. In that case, the country becomes an open market and loses its economic and political independence.

China renders support to its producers by decreasing as compared to the world standards such costs as electricity, raw materials, and taxes. As a result, Chinese companies in many sectors sell their products at a price much lower than ours. If we follow the logic of absolute and comparative advantages, we have to close down production of the majority of our goods and services and start buying cheaper products from China.

Since the US and EU every year provide support to their farmers in the amount of USD 100 billion, they produce agricultural products at less cost than we do. In addition, according to theories of absolute and comparative advantages we should buy agricultural products from them. This leads to nothing else but to establishment of defenseless open market.

Once, Western countries approached Mustafa Kemal Atatürk saying, “you produce agricultural products, and we will be selling you industrial products”. They based this proposal on the theory of comparative advantages. However, Mustafa Kemal Atatürk gave them his noteworthy answer by creating state production farms and while posing in front of the cameras got onto the tractor personally to show his resolution to pursue industrial development. Furthermore, he spoiled the game of capitalists by setting up an aircraft factory in Kayseri to export airplanes to Belgium.
The liberal-capitalist theory of factors of production lies in the following thesis: “countries rich in terms of labor power should produce labor-intensive products, and countries strong in terms of capital should produce capital-intensive products”.

Pursuant to this, concept underdeveloped and developing countries perform a manufacturing role for industrial countries.

It is worth recalling that at some point of time our country exported to the US and EU textiles, footwear, leather products. However, when in China and Eastern Europe labor costs went down, our country experienced collapse in these sectors. Because of implementing these concepts, our trade deficit breaks record every month. Due to low foreign exchange rate policy, imports steadily increase in all sectors.

The National Economic Model sets as a high priority “protection of domestic production” and thus allows imports only of those resources that will contribute to domestic production or which are not available in the country. In the Model, the state supports domestic producers by encouraging exports and opens up for domestic industrialists a door to foreign markets.