Emerging Market Authorities Lean On Free Trade

Here seems to be more proof that emerging market authorities are more “free market” leaning today.

One of them, as shown below, has even been lecturing developed economies to adapt more liberalization.

This appears to be in stark contrast to the yesteryears where developing nations were subjected to the Washington Consensus or “an orientation towards Neoliberal policies” which refers to “economic reforms that were prescribed just for developing nations, which included advice to reduce government deficits, to liberalise and deregulate international trade and cross border investment, and to pursue export led growth.”

Brazil’s finance minister vehemently assailed the Federal Reserve for its QE,

From Wall Street Journal blog

Brazilian Finance Minister Guido Mantega on Tuesday renewed his attack on the Federal Reserve’s most recent program of quantitative easing, saying the policy had goosed global flows of hot capital and heightened the global problems of rising commodity prices and inflation.

Last year, Mr. Mantega warned that falling currencies — including the U.S. dollar, due to the Fed’s plan to buy up to $600 billion of Treasurys — had triggered a currency war. On Tuesday, the finance minister renewed his opposition to the Fed’s program — at one point correcting his interpreter to specify “quantitative easing” and not just “monetary policy.” (emphasis added)

And he equally slams entrenched protectionist policies...

More from the same article.

The finance minister also blamed the U.S. — and other developed markets — for playing a role in rising commodity prices. The problem, Mr. Mantega said, isn’t solely due to increased demand, unfavorable weather and natural disasters, such as last summer’s drought in Russia. Agricultural subsidies in the developed world, and higher prices for fertilizer made by advanced economies also are factors, he said. One solution Mr. Mantega offered: encouraging production of agricultural commodities in developing, low-income countries. And one sure way to make the situation worse: any type of price controls or restrictions, which the finance minister characterized as the equivalent of shooting one’s self in the foot.

Developed countries should remove subsidies and lift trade barriers to products of emerging countries,” he said. “Also, developed countries should provide new investment opportunities to prevent capital supplies from increasing commodity prices.

Looks like the table has been turned.