The Meiji Restoration in Japan deposed the Tokugawa from dominating Japanese politics. The Tokugawa were just one of many competing daimyo, other powerful ones included the Chosu and Satsuma, who combined to overthrow the Tokugawa. The daimyo donated their lands to the national government and their domains became local government. One of the benefits of abolishing the old Shogunates was that all the tolls and tariffs between them were removed; it enabled the free movement of goods and labor at a national level.

The same thing happened in Europe as the medieval city-states grew into what we know today as nations. The tolls and tariffs on roads, waterways and political boundaries were slowly abolished and the free movement of goods, labor and capital inside that political domain occurred.

As the state expanded, and with it the reach of the economy, guilds lost their hold on labor. This is the same pattern that unions are experiencing as globalisation limits their ability to dictate wages, benefits and shares of output. The borders are economically porous, and as a result innovation and advantage are rewarded over political barriers and monopolies.

One of the benefits of Australian Federation was that it enabled free trade colony wide. Prior to federation only New South Wales had been a free trade colony, the rest were protectionist. This led to absurdities such different sleeper widths for rail tracks in order to protect industries and services.

While Federation, and the consequent domination of the Victorian Liberals led by Alfred Deakin, led to Australia practicing protectionism - something that took eighty years to be flushed from the Australian system - it did enable the free movement of goods, labor and capital on the Australian continent.

It is interesting to note that the European Union has expanded the zone of a free economy beyond national borders in an exceptionally meaningful manner. More than the bilateral Free Trade Agreements (misnamed, they are managed or restricted trade agreements, not free trade) can or could.

But the EU has done so without a monopoly on politics. The EU is probably best described as a Confederacy where the constituent political units only have to adopt EU 'rules' if they want to.

One of the greatest things I have seen in my lifetime is the old and unused border crossing between Germany and Belgium.

Photo: Border crossing. Steve Parker.
Cam Riley: South Sea Republic. Freedom, liberty, equity and an Australian Republic.

Comments
  • JM . # . 1/1
    Unused border crossing?

    I can remember crossing from the Netherlands to Germany on the morning of 1 January 1992 (the day the Maarstricht agreement leading to borderless Europe came into force).

    I was with a Dutch friend (the Dutch still resent the Germans after WWII), who was astonished to find the crossing unstaffed.

    She'd expected to have to stop and warned me to get out my passport and put up with some delays as anyone mounting a border on New Years Day wasn't likely to be in a good mood.

    When we drove straight through past the empty pillar box, she looked back and said "... it's not the natural order ..."

    • cam . # .
      JM, That is a great story. Our experience was just west of Aachen, we thought it was a disused toll booth, it didn't dawn on us until about half a mile later that it was an old turquoise painted (and rusting) customs booth.
      'Sworn to no party, and of no sect am I.' Frederick Vosper's republican motto.