Socialist Economist Critiques Trump’s Trade Policies, Highlights Global Economic Cracks in Capitalism

KARACHI – Renowned economist Dr. Kaiser Bengali has sharply criticized U.S. President Donald Trump’s trade policies, describing them as symptomatic of deeper flaws within global capitalism. Speaking at a seminar titled “Tariff Turmoil Unleashed: Cracks in Capitalism Deepen Under Trump’s Trade War,” Bengali argued that Trump’s 90-day tariff reprieve signals a retreat in response to collapsing markets and investor backlash.

The seminar, held at the Karachi Press Club and moderated by National Trade Union Federation, Pakistan (NTUF) General Secretary Nasir Mansoor, was jointly organized by the NTUF, the Home-Based Women Workers Federation, and Alternate. It explored the implications of global trade tensions on Pakistan’s economy and emphasized how recent trade disputes were exposing fundamental weaknesses in economic systems worldwide.

Dr. Bengali described Trump’s tariff reversal as a major setback. “The entire U.S. stock market had collapsed. Trump’s investor and supporter, Bill Ackman, initially praised the tariff move. But once the effects became apparent, he advocated for a withdrawal,” Bengali explained.

In his broader critique, Bengali expressed skepticism about the recently announced Green Pakistan Initiative, warning that it might meet the same fate as the China-Pakistan Economic Corridor (CPEC). “If a desert could be vegetated, then the Sahara would have been green by now,” he remarked, suggesting Pakistan should instead focus on long-term infrastructure development requiring four to five years.

Bengali identified neoliberalism—characterized by free markets, privatization, and outsourcing—as the root of global economic woes. Drawing parallels with international trends, he pointed to Brexit as a reaction to neoliberal policies. “Areas in the UK that voted for Brexit were those that lost jobs due to neoliberalism, whereas London, which benefited from globalization, voted against it,” he noted.

He lamented Pakistan’s industrial decline over the past four decades, criticizing policies that raise prices on domestically produced goods while reducing taxes on imports. “This approach is simply incomprehensible,” he said.

The economist also highlighted Pakistan’s over-reliance on a narrow export base. “For the past 70 years, we’ve only exported chawal, chamra, and chadar—rice, leather, and textiles. We’re like Canada, with 90 percent of exports going to a single market. It’s like putting all your eggs in one basket,” he remarked.

Reflecting on Pakistan’s economic history, Bengali defended the nationalization policies of the 1970s. “Nationalization didn’t destroy the economy—it strengthened it by halting capital flight and increasing government revenue. The 22 families who controlled industries at the time were involved in tax evasion,” he asserted. However, he acknowledged that nationalized industries later deteriorated due to corruption during General Zia-ul-Haq’s regime.

During the Q&A session, NTUF General Secretary Nasir Mansoor addressed the difficulties of organizing effective resistance in Pakistan. “The military and bureaucracy have long been involved in economic and political affairs,” he said, raising concerns about unifying resistance efforts under such conditions.

Bengali strongly emphasized the need for drastic cuts in defense spending. “The government must reduce expenditures, including defense. Citizens must unite behind this demand, or it will have no impact,” he stressed.

He also criticized Pakistan’s privatization efforts, noting that of the 90 industries privatized in 1992, only three or four survived, while the rest were shut down and their land repurposed. “Assets should not be sold,” he insisted.

The seminar concluded with Bengali underscoring a vital point about global economic dynamics: “Those countries that show resistance and power have their say; the rest simply suffer.”