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Free Trade Good--Wake Forest 2010-11 1/72

Free Trade Good --Wake Forest 2010-11


Free Trade Good --Wake Forest 2010-11...............................................................................................1 ***Free Trade Good***.........................................................................................................................2 Free Trade Good China.......................................................................................................................3 Free Trade Good Ext China..............................................................................................................4 Free Trade Good Ext China Democrac ...........................................................................................! "T# $%-China Trade War.......................................................................................................................& Free Trade Good Democrac ...............................................................................................................' Free Trade Good Ext Democrac .....................................................................................................( Free Trade Good Ext Democrac %t)dies....................................................................................10 Free Trade Good Ext Democrac *+o T rann ...............................................................................11 Free Trade Good Disease...................................................................................................................13 Free Trade Good Econom ................................................................................................................1! Free Trade Good Ext Econom ......................................................................................................1& Free Trade Good Ext Econom ,nno-ation.................................................................................1. Free Trade Good Ext Econom /0an)1act)rin23...........................................................................1' Free Trade Good Ext Econom /Com4etiti-eness3.........................................................................1( Free Trade Good Ext Econom /"T# ,n1ant*"n2e5 ,nd)stries3.......................................................20 Free Trade Good Ext Econom /"T# 6)rts 7o8s3...........................................................................21 Free Trade Good Ext Trade 9eadershi4 :*T Econ..........................................................................22 Free Trade Good En-ironment..........................................................................................................24 Free Trade Good Ext En-ironment.................................................................................................2! Free Trade Good Ext En-ironmenta5 ;rotection.............................................................................2& Free Trade Good Ext En-ironmenta5 ;rod)ction............................................................................2. Free Trade Good "T# ;o55)tion 6a-ens............................................................................................2' Free Trade Good Famine...................................................................................................................30 Free Trade Good G5o8a5 De-e5o4ment..............................................................................................32 Free Trade Good Ext De-e5o4ment................................................................................................33 Free Trade Good 6e2e.......................................................................................................................3! Free Trade Good Ext 6e2emon ....................................................................................................3& Free Trade Good ;atriarch ...............................................................................................................3' Free Trade Good ;ro5i1eration...........................................................................................................40 Free Trade Good Terrorism...............................................................................................................42 Free Trade Good Ext Terrorism......................................................................................................43 Free Trade Good War*+)c5ear War...................................................................................................4! Free Trade Good Ext War...............................................................................................................4& Free Trade Good Ext War /,nterde4endence3.................................................................................4. Free Trade Good Ext "T# Free Trade Ca)sed Wor5d War ,,..........................................................4' Free Trade Good Ext "T# <eso)rce Wars......................................................................................4( Free Trade Good E-idence ,ndict Generic......................................................................................!1 Free Trade Good E-idence ,ndict =ar8eri......................................................................................!2 Free Trade Good E-idence ,ndict 0artin.......................................................................................!3 Free Trade Good E-idence ;rodict....................................................................................................!4 "T# C)5t)re Chan2e ,ne-ita85e..........................................................................................................!& "T# C)5t)re +o ,m4act......................................................................................................................!. "T# C)5t)re Trade Doesn>t 6)rt C)5t)re...........................................................................................!( "T# C)5t)re "T# 9and The1t..............................................................................................................&0 "T# C)5t)re "T# 9an2)a2e................................................................................................................&2 "T# 0+C>s...........................................................................................................................................&3 "T# 0onoc)5t)res................................................................................................................................&! "T# +orth-%o)th Wea5th Ga4...............................................................................................................&& "T# ;o-ert ..........................................................................................................................................&. "T# Water ;ri-ati?ation +on-$ni@)e................................................................................................&' "T# Water ;ri-ati?ation +ot 9inked To Trade..................................................................................&( "T# Water ;ri-ati?ation ;ri-ati?ation Good.......................................................................................0 "T# Water ;ri-ati?ation Water Wars De1ense....................................................................................1

Free Trade Good--Wake Forest 2010-11 2/72

***Free Trade Good***

Free Trade Good--Wake Forest 2010-11 3/72

Free Trade Good China


Free trade prevents Chinese aggression in Taiwan A !ri"e #ewswire$ %1 [December 7, Countries that share capital market and monetary policy linkages are less likely to go to war, Lexis] The increasing economic openness o China might ha!e "ust helped in pre!enting a military contest between China, Taiwan and the #nited $tates during the wake o Taiwan%s &''' presidential election( The admission o China to the )orld Trade *rgani+ation will oreseeably generate the positi!e political externality o promoting peace, the researchers say( ,n contrast, the economically isolated - ghanistan
appears to ser!e as an example o the e ect o economic autarky(

.*ur indings pro!ide new e!idence supporting a new theory why liberal economics may be at least as !ital to peace as liberal politics, . Li adds( War in Taiwan draws in the &' ' and goes n(!)ear *ohnson$ %1 [Chalmers, -uthor o /lowback0 The Costs and Conse1uences o -merican 2mpire, The 3ation, 4567] China is another matter( 3o sane igure in the 8entagon wants a war with china, and all serious #$ militarists know that China9s minuscule nuclear capacity is not o ensi!e but a deterrent against the o!erwhelming #$ power arrayed against it :twenty archaic Chinese warheads !ersus more than 7''' #$ warheads;( Taiwan, whose status constitutes the still incomplete last act o the Chinese ci!il war, remains the most dangerous place on earth( <uch as the 6=67 assassination o the -ustrian crown prince in $ara"e!o led to a war that no wanted, a misstep in Taiwan by any side could bring the #nited $tates and China into a con lict that neither wants( $uch a war would bankrupt the #nited $tates, deeply di!ide >apan and probabl! end in a Chinese !ictory, gi!en that China is the world9s most populous country and would be de ending itsel against a oreign aggressor( <ore seriousl!( it could easily escalate into a nuclear holocaust( ?owe!er, gi!en the nationalistic challenge to China9s so!ereignty o any Taiwanese attempt to declare its independence ormally, orward@ deployed #$ orces on China9s borders ha!e !irtually no deterrent e ect(

Free Trade Good--Wake Forest 2010-11 +/72

Free Trade Good ,-t China


Free trade so)ves war with China e-tend A !ri"e #ewswire pro.oting e!ono.i! openness he)ps integrate China into a s/ste. o0 dependen!e where aggression towards Taiwan is no )onger desira")e the i.pa!t is e-tin!tion o(r *ohnson eviden!e sa/s that an atta!k on Taiwan wo()d i..ediate)/ draw in the &' ' and es!a)ate to a reta)iator/ n(!)ear e-!hange Trade with !hina ke/ to .oderating hard)iners and averting war over Taiwan 1orn 2k [>ames -( Dorn, &''' is a China specialist at the Cato ,nstitute in )ashington, D(C(, and Ted Aalen Carpenter is the Bice 8resident or De ense and Coreign 8olicy $tudies at the Cato ,nstitute( The Dorea ?erald on <ay &E] The Taiwan issue remains an especially dangerous lash point( -ny mo!e toward
ormal independence by Taipei would surely pro!oke military action by /ei"ing( China%s strong economic dependence on Taiwan%s prosperity, howe!er, means that military action must be seen as a last resort( <oreo!er, the election o Chen $hui@bian and the de eat o the long@ dominant 3ationalist 8arty are stern reminders to the Chinese communists that their own uture is highly uncertain( /ei"ing%s biggest dilemma is how to allow its producti!e non@state sector to grow while at the same time pre!enting an erosion o the party%s power as market participants demand greater ci!il liberties and a more meaning ul political !oice( The domestic tension created by opening China%s economy to the outside world while meaning ul political change is suppressed has to be released sooner or later( Aradualism appears to ha!e worked reasonably well thus ar, but the ine iciency o China%s state@owned sector is apparent and corruption is rampant( )holesale pri!ati+ation would help sol!e the problems o ine iciency and corruption, but would undermine the last !estiges o party power( $o the challenge or China%s leadership is stark( Cutting o @ or e!en

limiting @ trade with China in the hope o impro!ing human rights would be sel @de eating( ,solating China would strengthen the party and the state while harming the nascent market sector and reducing economic reedom( , ree trade is restricted, the probability o con lict between the China and the #nited $tates will also increase( That is why it is essential or peace and
prosperity that the #($( Congress !ote in a!or o permanent normal trade relations with China and support its accession to the )T*( The best concise answer to the 1uestion o whether China will be a constructi!e partner or an

emerging threat in the early &6st century comes rom an independent scholar in /ei"ing( The answer will, .depend, to a !ery great extent, on the ate o liberalism in China0 - liberal China will be a constructi!e partnerF a nationalistic and authoritarian China will be an emerging threat(. 2n!reased trade is the on)/ wa/ to avoid war over Taiwan and it3s the .ost )ike)/ s!enario 0or es!a)ation 4(siness Week 5n)ine 6-7-01 The cycle o !iolence in the <iddle 2ast ne!er seems to end( ,nternal con licts rom ,ndonesia to Gwanda to the /alkans also eel interminable( /ut the dispute that poses the biggest danger or the #($( has no guns bla+ing right now @@ and no re ugees( ,t%s the con rontation across the Taiwan $trait( /ei"ing and Taipei%s di erences o!er Taiwan%s uture a ect e!erything rom the -dministration%s missile@de ense plans to the chronic problem the #($( aces in dealing with an emerging power such as China( #nlike some other con licts, this one could 1uickly drag -merican A,s into the ray( -t irst glance, the Taiwan dispute seems as di icult to resol!e
as the other estering 1uarrels( Leaders in Taiwan ha!e no interest in ollowing ?ong Dong%s lead and coming under /ei"ing%s oppressi!e thumb( -nd the mainland is ready to go to war i Taiwan makes any mo!es toward independence( 3ow that the /ush -dministration has made clear it would send in orces to protect Taiwan in the e!ent o an unpro!oked attack by China, the stakes or )ashington are higher than e!er( <aking matters more dicey, the status 1uo is becoming e!er harder to maintain( /ut some 1uiet de!elopments, ones that don%t earn the headlines de!oted to missile tests and the mo!ements o o #($( aircra t carriers, suggest there may be a way to a!oid disaster( 8G,<,T,B2 $?,2LD( The /ush team knows how ticklish this all is( *ne senior aide rets that missile de ense wouldn%t be an issue or /ei"ing i it weren%t or Taiwan( China knows that it already has enough warheads to o!erwhelm the primiti!e and limited de ensi!e shield 8resident /ush en!isions( -nd by the time any de ense is in place, China will ha!e e!en more( $o, /ei"ing isn%t really worried that its small retaliatory arsenal would be neutrali+ed( ,ts real concern is that the technological ad!ances rom de!eloping a de ensi!e system could ind their way to Taiwan and insulate the island against the threat o short@range Chinese missiles(Taiwan also is the biggest thorn in the o!erall $ino@-merican relationship( The /ush -dministration will raise issues such as human rights and intellectual@property protection with the <iddle Dingdom( /ut politically, e!erybody recogni+es the explosi!eness o the Taiwan issue( ,t in!ol!es Chinese so!ereignty and what /ei"ing !iews as outside inter erence in its internal a airs( -ggra!ating matters are Taiwan%s e ecti!e lobbying in )ashington and the anti@China rhetoric that has become a constant in the #($($o, what is the way outH $ome analysts say the strategic ambiguity o the past, in which neither China nor Taiwan knew exactly when )ashington would inter!ene, continues to make sense because it pre!ents both sides rom acting irresponsibly( *thers argue or the clarity the /ush -dministration has tried @@ not 1uite success ully @@ to gi!e to the matter(D2-D 23D( ,n their thought ul new book, )ilson%s Ahost :8ublic- airs, >une, &''6; ormer De ense $ecretary and )orld /ank 8resident Gobert <c3amara and /rown #ni!ersity 8ro essor >ames /light talk about big issues like nuclear disarmament( /ut they seem to hit a dead end when they turn to Taiwan( They appro!e o the suggestion o >oseph 3ye, a ormer top 8entagon o icial in the Clinton -dministration who now is dean o ?ar!ard #ni!ersity%s Dennedy $chool o Ao!ernment( 3ye ad!ocates a pledge by China not to use orce in return or a pledge by Taiwan not to declare independence( 2!en i both sides were to agree to this, which is hardly likely, it would be only a stopgap measure and ar short o a solution( The real answer may come instead not rom some grand strategic

rom something ar more prosaic0 economic necessity( )ith #($( growth slowing, >apan still in the doldrums, and -sia and 2urope on slow economic tra"ectories, China is looking increasingly attracti!e to Taiwan businesses(Cor years, China has been a manu acturing plat orm or low@end items such as shoes and toys, but now Taiwan executi!es see China as both a market and place to make high@end items(
plan or breathtaking diplomatic breakthrough, but rather They%re putting pressure on the go!ernment to end restrictions on in!estments( :$ee /), I5665'6, .JK- with Taiwan%s Top China 8olicymaker.;( -t the same time, China needs more employment as its state@owned enterprises close their shutters( The increased economic interdependence could well reduce the prospects or con lict as both sides% political elites rely on economic growth to keep domestic constituents happy(8*)2G *C 8G*$82G,TL( $ome in Taiwan ear increased economic integration would run a oul o policymakers in )ashington( , think nothing could be urther rom the truth( There may be some China@ bashers in )ashington who would like to go to war, but , don%t think anyone with the responsibility o power thinks that way( The /ush -dministration%s goals are peace and prosperity in the region( )hat%s more, it belie!es increased trade will

mean /ei"ing has less and less control o!er what goes on in the country( ,t%s a peace ul way to undermine the regime and orce the system to e!ol!e into something more acceptable to Taiwan( $o, increased Taiwan in!estment and economic integration with the mainland helps achie!e all o )ashington%s goals(

Free Trade Good--Wake Forest 2010-11 8/72 ,!ono.i! openness is a)read/ triggering re0or.s in China- .ore 0ree trade !o()d trigger a de.o!rati! transition' Griswo)d %7 :Daniel T(, -ssociate director o the Cato ,nstitute9s Center or Trade 8olicy $tudies, Trade, Democracy and Peace: The Virtuous Cycle, 8eace through Trade Con erence, -pril &', http055www( reetrade(org5node5IM6; - <ore Democratic ChinaH ,n China, the link between trade and political re orm o ers the best hope or encouraging democracy and greater respect or human rights in the world%s most populous nation( - ter two decades o re orm and rapid growth, an expanding middle class is experiencing or the irst time the independence o home ownership, tra!el abroad, and cooperation with others in economic enterprise ree o go!ernment control( The number o telephone lines, mobile phones, and ,nternet users has risen exponentially in the past decade( Tens o thousands o Chinese students are studying abroad each year( China%s entry into the )orld Trade *rgani+ation in &''6 has only accelerated those trends( $o ar, the people o mainland China ha!e seen only marginal impro!ements in ci!il liberties and none in political liberties( /ut the people o China are undeniably less oppressed than they were during the tumult o the Cultural Ge!olution under <ao Tse@Tung( -nd China is reaching the stage o de!elopment where countries tend to shed oppressi!e orms o go!ernment or more benign and democratic systems( China%s per capita AD8 has reached about N7,I'' per in terms o purchasing power parity( That puts China in the upper hal o the world%s countries and in an income neighborhood where more people li!e in political and ci!il reedom and ewer under tyranny( -mong countries with lower per capita incomes than China, only &7 percent are ree ( -mong those with higher incomes, 7& percent are ree( *nly 6I percent are not ree, and almost all o those are wealthier than China not because o greater economic reedom but because o oil(

Free Trade Good ,-t China 1e.o!ra!/

Free Trade Good--Wake Forest 2010-11 6/72

AT9 & -China Trade War


&' '-China trade war wi)) never es!a)ate the/ wi)) reso)ve the. thro(gh negotiations and pea!e0() .e!hanis.s Wei$ %7

[Li, -ssociate Gesearcher at the Chinese -cademy o ,nternational Trade and 2conomic Cooperation, Beijing Review, >anuary 6', O/inding Ties]

The unbalanced interdependence between China and the #nited $tates means trade con licts between the two are ine!itable( ?owe!er, mutual bene its will still be their principal goal( /oth sides ha!e said they would try their best to resol!e their problems through dialogues and negotiations, because trade wars only occur between immature trade partners( /esides their $2D meetings on their trade relations, China and the #nited $tates also ha!e maintained dialogues to deal with trade and economic problems through systems such as the >2C, >CCT and >C<( The $2D mechanism, howe!er, is more ad!anced than these other dialogue mechanisms, and pre!ents ine!itable trade con licts (

Free Trade Good--Wake Forest 2010-11 7/72

Free Trade Good--Wake Forest 2010-11 7/72

Free Trade Good 1e.o!ra!/


Free trade is ke/ to de.o!ra!/ Chen$ 2000 [>im, 8ro essor o Law at the #ni!ersity o <innesota, O8ax <ercatoria0 Alobali+ation as a $econd Chance at P8eace or our Time9 3o!ember5December, Fordham International aw !ournal, Lexis] Alobali+ation ad!ances democracy not only by raising o!erall wealth, but also by impro!ing the political climate within nations( The ability o multinational corporations and skilled workers to adopt . ight or light. strategies encourages go!ernments to adopt transparent policies and to broaden political participatio n( /usinesses and nongo!ernmental organi+ations respond by
1+0

cooperating with the go!ernment to orm .transnational epistemic communities(. 1+1 2!en where they are despised as scourges against local businesses,
1+2

multinational corporations introduce moral !alues in countries that ha!e yet to reali+e globali+ation%s ull bene its( -t the opposite end o the ideological spectrum, e!en as unstable go!ernments plunge into kleptocracy and anti@)estern terrorists lourish, nongo!ernmental organi+ations ha!e stepped into the resulting power !acuum in order to help police the morals o globali+ed society(
1+3

1e.o!ra!/ so)ves e-tin!tion Carnegie Co..ission on :reventing 1ead)/ Con0)i!t$ 9=4 [*ctober, ;8romoting Democracy in the 6=='9s, http055www(carnegie(org55sub5pubs5deadly5dia=4Q'6(html, accessed on 6&5665==]
*T?2G T?G2-T$ This hardly exhausts the lists o threats to our security and well@being in the coming years and decades( ,n the ormer Lugosla!ia nationalist aggression tears at the stability o 2urope and could easily spread( The low o illegal drugs intensi ies through increasingly power ul international crime syndicates that ha!e made common cause with authoritarian regimes and ha!e utterly corrupted the institutions o tenuous, democratic ones(

3uclear, chemical, and biological weapons continue to proli erate( The !ery source o li e on 2arth, the global ecosystem, appears increasingly endangered( <ost o these new and uncon!entional threats to security are associated with or aggra!ated by the weakness or absence o democracy, with its pro!isions or legality, accountability, popular so!ereignty, and openness( L2$$*3$ *C T?2 T)23T,2T? C23T#GL The experience o this century o ers important lessons( Countries that go!ern themsel!es in a truly democratic ashion do not go to war with one another( They do not aggress against their neighbors to aggrandi+e themsel!es or glori y their leaders ( Democratic go!ernments do not ethnically .cleanse. their own populations, and they are much less likely to ace ethnic insurgency( Democracies do not sponsor terrorism against one another( They do not build weapons o mass destruction to use on or to threaten one another( Democratic countries orm more reliable, open, and enduring trading partnerships( ,n the long run they o er better and more stable climates or in!estment( They are more en!ironmentally responsible because they must answer to their own citi+ens, who organi+e to protest the destruction o their en!ironments( They are better bets to honor international treaties
since they !alue legal obligations and because their openness makes it much more di icult to breach agreements in secret( 8recisely because, within their own borders, they respect competition, ci!il liberties, property rights, and the rule o law, democracies are the only reliable oundation on which a new world order o international security and prosperity can be built(

Free Trade Good--Wake Forest 2010-11 </72 Free trade is ke/ to de.o!ra!/ o(r Chen eviden!e indi!ates that )a- trade "arriers a))ows =#Cs and ski))ed workers to pi!k whi!h !o(ntr/ to operate in$ in!entivi>ing !o(ntries to !reate attra!tive e!ono.i! !onditions "/ !reating govern.enta) transparen!/ and "road po)iti!a) parti!ipation the i.pa!t is e-tin!tion the Carnegie eviden!e indi!ates n(!)ear weapons pro)i0erate whi)e the g)o"a) e!os/ste. is endangered? de.o!ra!ies so)ve i.pa!ts "/ prioriti>ing dip)o.a!/ over war and !reating environ.enta) responsi"i)it/ d(e to a!!o(nta"i)it/ to their !iti>ens Free trade is e.piri!a))/ ke/ to the spread o0 de.o!ra!/ g)o"a) trends prove @(kas, trade policy analyst at the Center or Trade 8olicy $tudies at the Cato ,nstitute, &' 00 :-aron, O)T* Geport Card ,,,, >une &', http055www( reetrade(org5pubs5brie s5tbp@ '6'(pd ; ,t is no coincidence that economic growth has been accompanied by bene icial political changes in many de!eloping countries, including those in 2ast -sia( /oth $outh Dorea and Taiwan, or example, began to implement democratic re orms in the late 6=M's, a ter a rapidly growing middle class became in!ol!ed in widespread ci!il protests( The depth o such re orms was demonstrated in the recent presidential election in Taiwan, which pro!ed that e!en long@entrenched ruling parties are now sub"ect to the will o the people( ,t is extremely likely that the growth o capitalism generally and the opening o de!eloping economies to international trade and in!estment in particular ha!e contributed to what $amuel ?untington has called a Othird wa!e o democrati+ation( -t the !ery least, economic globali+ation has existed alongside democrati+ation( ,n 6=7E, o a total o 6&& countries with more than 6 million people, a mere &' nations were democratic , while =& were nondemocratic( /y 6==', howe!er, o 6&= countries, 4M were democratic, while 76 were nondemocratic( Those are startling igures0 or the irst time in the &'th centuryR during a period o unprecedented economic liberali+ation and globali+ationRthe number o authoritarian or nondemocratic states actually decreased( The relationship between economic liberali+ation and democrati+ation can be urther illustrated by comparing cross@ country data measuring economic openness and political and ci!il liberties( #sing the "conomic Freedom o# the $orld index o openness to international exchange and the Creedom ?ouse ratings o O ree, Opartly ree, and Onot ree, Daniel Ariswold, associate director o the Cato ,nstitute9s Center or Trade 8olicy $tudies, has demonstrated a strong correlation between the two kinds o reedom(6I 3ations that are classi ied by Creedom ?ouse as being ree score an a!erage o 7(= on the scale o economic openness( Those that are partly ree a!eraged a less open I(7, and those that are not ree scored the lowest, 4(7( Ge!ersing the data re!eals that o the countries in the top third o the Awartney@ Lawson scale o economic openness, M7 percent earned a political@ci!il ranking o ree( * those in the middle third, 47 percent were ree, but in the bottom third, only && percent were ree( ,n other words, citi+ens who en"oy the reedom to engage in international commerce are about our times more likely to be ree rom political and ci!il oppression than are those who do not en"oy such reedom( Free trade so)ves de.o!ra!/ a))ows s.a))er states to .aintain po)iti!a) a(tono./ 4hagwati, #ni!ersity pro essor at columbia uni!ersity and senior ellow in international economics at the council on oreign relations, &''+ :>agdish, ,n de ense o globali+ation, 6'6@6'&; Then again, a no!el argument can be ad!anced in support o the bene icial e ect o globali+ation on the ability o small nation@states to retain their autonomy o pre erences and political action, and hence on the practice o democracy( /ased on the analytical and empirical work o the economists -lberto -lesina, 2nrico $polaore, and Gomain )ac+iarg, who ha!e explored the relationship between the number and si+e o nations and global integration, one can argue that without globali+ation a small nation will eel constrained, i it is to en"oy scale economies, to merge into a larger union and thereby submerge its pre erences into the larger whole, but with worldwide globali+ation and the ability to access truly large markets, it can exploit scale economies at arm%s length and retain its autonomy(. Alobali+ation, by relie!ing the pressure to "oin into ederations and larger states simply so as to en"oy scale economies in production and trade, enables small nations to retain their indi!iduality in economics and politics( Free trade so)ves de.o!ra!/ a))ows workers to disp)a!e !ontro) o0 a(to!rati! gro(ps "/ s("verting their e!ono.i! power 4hagwati, #ni!ersity pro essor at columbia uni!ersity and senior ellow in international economics at the council on oreign relations, &''+ :>agdish, ,n de ense o globali+ation, =E; Alobali+ation promotes democracy both directly and indirectly( The direct link comes rom the act that rural armers are now able to bypass the dominant classes and castes by taking their produce directly to the market thanks to modern in ormation technology, thereby loosening the control o these traditionally hegemonic groups( ,n turn, this can start them on the way to becoming more@independent actors, with democratic aspirations, in the political arena( Alobali+ation is at the source o this phenomenon in two ways0 the computers themsel!es are a!ailable because o trade, and the markets accessed are oreign in many cases, not "ust domestic( Thus, a recent report rom Damalpur !illage in ,ndia by the )all $treet >ournal reporter Cris 8rystay documents how the !illagers are now selling their crops by computer, cutting out the middlemen( $oybean armer <ohammed -ri , &7 years old, says the computer allows armers greater control o!er their own goods( Carmers o ten get cheated at markets, or get stuck with whate!er price is o ered that day( )ith the computer, he says, they can make a considered decision at home, holding crops until prices impro!e(

Free Trade Good ,-t 1e.o!ra!/

Free Trade Good--Wake Forest 2010-11 10/72 ,.piri!a) st(dies prove 0ree trade has "ro(ght de.o!ra!/ to 700 .i))ion peop)e' Griswo)d %7 :Daniel T(, -ssociate director o the Cato ,nstitute9s Center or Trade 8olicy $tudies, Trade, Democracy and Peace: The Virtuous Cycle, 8eace through Trade Con erence, -pril &', http055www( reetrade(org5node5IM6; Cirst, , examined the broad global trends in both trade and political liberty during the past three decades( $ince the early 6=7's, cross@border lows o trade, in!estment, and currency ha!e increased dramatically, and ar aster than output itsel ( Trade barriers ha!e allen unilaterally and through multilateral and regional trade agreements in Latin -merica, in the ormer $o!iet bloc nations, in 2ast -sia, including China, and in more de!eloped nations as well( During that same period, political and ci!il liberties ha!e been spreading around the world( Thirty years ago democracies were the exception in Latin -merica, while today they are the rule( <any ormer communist states rom the old $o!iet #nion and its empire ha!e success ully trans ormed themsel!es into
unctioning democracies that protect basic ci!il and political reedoms( ,n 2ast -sia, democracy and respect or human rights ha!e replaced authoritarian rule in $outh Dorea, Taiwan, the 8hilippines, and ,ndonesia( Creedom ?ouse, a human rights think tank in 3ew Lork, measures the political and ci!il reedom each year in e!ery country in the world( ,t classi ies countries into three categories0 .Cree.@@meaning countries where citi+ens en"oy the reedom to !ote as well as ull reedom o the press, speech, religion and independent ci!ic li eF .8artly Cree.@@those countries .in which there is limited respect or political rights and ci!il liberties.F and .3ot Cree.@@.where basic political rights are absent and basic ci!il liberties are widely and systematically denied(.

Free Trade Good ,-t 1e.o!ra!/ t(dies

-ccording to the most recent Creedom ?ouse sur!ey, political and ci!il reedoms ha!e expanded dramatically along with the spread o globali+ation and reer trade( ,n 6=7E, E4 percent o the world%s population li!ed in countries that were .Cree(. Today that share has increased to 7I percent( ,n 6=7E, almost hal o the people in
the world, 77 percent, li!ed in countries that were .3ot Cree(. Today that share has merci ully allen to EI percent( The share o people li!ing in countries that are .8artly Cree. is the same, 6M percent(

,n other words, in the past three decades, more than one@tenth o humanity has escaped the darkest tyranny or the bright sunlight o ci!il and political reedom ( That represents 7'' million people who once su ered under the "ack boot o oppression who now en"oy the same ci!il and political liberties that we all
take or granted(

The "est st(dies indi!ate a strong !a(sa) re)ationship "etween 0ree trade and de.o!ra!/' Griswo)d %7 :Daniel T(, -ssociate director o the Cato ,nstitute9s Center or Trade 8olicy $tudies, Trade, Democracy and Peace: The Virtuous Cycle, 8eace through Trade Con erence, -pril &', http055www( reetrade(org5node5IM6; 3ext, , examined the relationship between economic openness in indi!idual countries today and their record o human rights and democracy( To make this comparison, , combined the Creedom ?ouse ratings with the ratings or economic reedom contained in the 2conomic Creedom o the )orld Geport( That study rates more than 6&' countries according to the reedom to trade and in!est internationally, to engage in business, access to sound money, property rights, and the si+e o go!ernment( The study is "ointly sponsored by 4' think tanks around the world, including the Cato ,nstitute, the Craser ,nstitute in Canada, and 3orway%s own Center or /usiness and $ociety ,ncorporated, or Ci!ita( )hen we compare political and ci!il reedoms to economic reedom, we ind that nations with open and ree economies are ar more likely to en"oy ull political and ci!il liberties than those with closed and state@ dominated economies( * the &4 rated countries in the top 1uintile o economic openness, &6 are rated .Cree. by Creedom ?ouse and only one is rated .3ot Cree(. ,n contrast, among the 1uintile o countries that are the least open economically, only se!en are rated .Cree. and nine are rated .3ot Cree(. ,n other words, the most economically open countries are three times more likely to en"oy ull political and ci!il reedoms as those that are economically closed( Those that are closed are nine times more likely to completely suppress ci!il and political reedoms as those that are open( The percentage o countries rated as .Cree. rises in each 1uintile as the reedom to exchange with oreigners rises, while the percentage rated as .3ot Cree. alls( ,n act, 67 o the &' countries rated as .3ot Cree. are ound in the bottom two 1uintiles o economic openness, and only three in the top three 1uintiles( The percentage o nations rated as .8artly Cree. also drops precipitously in the top two 1uintiles o economic openness( - more ormal statistical comparison shows a signi icant, positi!e correlation between economic reedom, including the reedom to engage in international commerce, and political and ci!il reedom( The statistical correlation remains strong e!en when controlling or a nation%s per capita gross domestic product, consistent with the theory that economic openness rein orces political liberty directly and independently o its e ect on growth and income le!els( *ne unmistakable lesson rom the cross@country data is that go!ernments that grant their citi+ens a large measure o reedom to engage in international commerce ind it dauntingly di icult to depri!e them o political and ci!il liberties( - corollary lesson is that go!ernments that .protect. their citi+ens behind tari walls and other barriers to international commerce ind it much easier to deny those same liberties( 2!en when we look at re orm within indi!idual countries, we see a connection( - statistical analysis o those countries shows a signi icant and positi!e correlation between the expansion o the reedom to exchange with oreigners o!er the past three decades in indi!idual countries and an expansion o political and ci!il reedoms in the same country during the same period ( Countries that ha!e most aggressi!ely ollowed those twin tracks o re orm@@re lected in their impro!ed scores during the past two decades in the indexes or reedom o exchange and combined political and ci!il reedom@@include Chile, Ahana, ?ungary, <exico, 3icaragua, 8araguay, 8ortugal, and Tan+ania( Twenty years ago, both $outh Dorea and Taiwan were essentially one@party states without ree elections or ull ci!il liberties( Today, due in large measure to economic liberali+ation, trade re orm, and the economic growth they spurred, both are thri!ing democracies where a large and well@educated middle class en"oys the ull range o ci!il liberties( ,n both countries, opposition parties ha!e gained political power against long@time ruling parties( *ur best hope or political re orm countries that are .3ot Cree. will not come rom con rontation and economic sanctions( ,n Cuba, or example, expanded trade with the #nited $tates would be a ar more promising policy to bring an end to the Castro era than the ailed, our@decades@old economic embargo( /ased experience elsewhere, the #($( go!ernment could more e ecti!ely promote political and ci!il reedom in Cuba by allowing more trade and tra!el than by maintaining the embargo( The olly o imposing trade sanctions in the name o promoting human rights abroad is that sanctions depri!e people in the target countries o the technological tools and economic opportunities that nurture political reedom(

Free Trade Good--Wake Forest 2010-11 11/72 Free trade so)ves de.o!ra!/ it erodes the ne!essit/ o0 t/rann/ 4hagwati, #ni!ersity pro essor at columbia uni!ersity and senior ellow in international economics at the council on oreign relations, &''+ :>agdish, ,n de ense o globali+ation, =4; Let actors other than the rise o the middle class ha!e played a role( Thus Lin+ and $tepan make the ascinating obser!ationRbased on 8inochet%s regime in Chile, /ra+il in the early 6=7's, and two decades in Cranco%s $painRthat while there was willingness to put up with authoritarian regimes as long as they were deli!ering de!elopment , this willingness disappeared once de!elopment was deli!ered and prosperity seemed to be securely in place6' They write0 [<]any nondemocratic regimes ((( are originally de ended by the state elite and their core socioeconomic allies as necessary gi!en the exceptional di i culties :o ten economic; the polity aces( Thus, prolonged economic prosperity, especially in an authoritarian regime, may erode the basis o the regime%s "usti ication based on exceptional circumstances( 8rolonged economic success can contribute to the perception that the exceptional coerci!e measures o the nondemocratic regime are no longer necessary and may possibly erode the soundness o the new economic prosperity(.

Free Trade Good ,-t 1e.o!ra!//#o T/rann/

Free Trade Good--Wake Forest 2010-11 12/72

Free Trade Good--Wake Forest 2010-11 13/72 Trade is ke/ to e!ono.i! growth and )iving standards ,ndur <' Gok)an/, an independent scholar and the author o The 8recautionary 8rinciple0 Critical -ppraisal o 2n!ironmental Gisk -ssessment -ugust &&, 2002, http055www(cato(org5pubs5pas5pa777(pd Trade is an integral part o the cycle o progress( Creer trade directly stimulates economic growth,EI helps disseminate new technologies, and creates pressures to in!ent and inno!ate(E7 Cor instance, competition rom oreign car makers accelerated the introduction o se!eral automobile sa ety and emission control systems to the #nited $tates, impro!ing both en!ironmental and human well@being(EM Trade also helps contain the costs o basic in rastructure, including water supply, sanitation, and power generation :although the ull bene its are o ten s1uandered because o corrupt, ine icient, and opa1ue bureaucracies and go!ernments;(E= Cinally, as will be discussed below, trade has globali+ed ood security( That3s ke/ to so)ve disease ,ndur <( Gok)an/, an independent scholar and the author o The 8recautionary 8rinciple0 Critical -ppraisal o 2n!ironmental Gisk -ssessment -ugust &&, 2002, http055www(cato(org5pubs5pas5pa777(pd -re the trends in the !arious measures o human well@being impro!ing as globali+ation marches onH ?a!e gaps in these measures between the rich and the poor countries widened and, i they ha!e, is globali+ation responsibleH Cigure 6, based on cross@country data, shows that !arious indicators o human wellbeing impro!e as countries become wealthier, with impro!ements coming most rapidly at the lowest le!els o wealth ( There are se!eral possible explanations or this association( Cirst, economic de!elopment indeed impro!es these indicators( Areater wealth translates into greater resources or researching and de!eloping new technologies that directly or indirectly ad!ance human well@being(6= ,t also means increased resources or ad!ancing literacy and education, which, too, are generally conduci!e to greater technological inno!ation and di usion( &' 21ually important, wealthier societies are better able to a ord new as well as existing, but underused, technologies(&6 Cor instance, with respect to healthRcaptured in Cigure 6 by both in ant mortality and li e expectancyR these include Oold technologies such as water treatment to produce sa e water, sanitation, basic hygiene, !accinations, antibiotics, insect and !ector control, and pasteuri+atio n,&& as well as newer science@based technologies such as -,D$ and oral rehydration therapies, organ transplants, mammograms, and other diagnostic tests( They also include agricultural technologies that increase crop yields, thereby increasing a!ailable ood supplies and reducing hunger and malnourishment, which then reduces the toll o in ectious and parasitic diseases( &E 7 ?istorically, reducing hunger and undernourishment has been among the irst practical steps nations ha!e taken to impro!e public health( That step has reduced in ant mortality and increased li e expectancy(&7 -nd i despite increased ood production a country is still short o ood, greater wealth makes it possible, through trade, to purchase ood security(&4 Areater wealth also makes it more likely that a society will establish and sustain ood programs or those on the lower rungs o the economic ladder(&I There ore, while Oyou can9t eat AD8,&7 the larger AD8 is, the less likely you are to go hungry or be undernourished( -s Cigure 6 illustrates, greater wealth, through a multiplicity o mechanisms Rhigher literacy, greater ood supplies, and greater access to sa e waterR leads to better health(&M e ect, de!oting what once was literally a li etime to learning their trade( -nd ha!ing ac1uired expertise, those doctors and researchers are poised to contribute to technological inno!ation and di usion in their chosen ields and to guide others along the same path( Thus better health helps raise human capital, which aids the creation and di usion o technology and thereby urther ad!ances health and accelerates economic growth( /oth wealth9s and health9s causes and e ects probably rein orce each other in a set o interlinked cycles( *ne such cycle is the health@wealth cycle in whichRas we ha!e seenR wealth begets health and health, wealth( -nother cycle consists o ood production, ood access, education, and human capital, which also helps turn the health wealth( That so)ves e-tin!tion' Col( )illiam Fo-, <(D(, Commander o /ayne@>ones -rmy ?ospital, Command $urgeon o the >oint Geadiness Training Center, medical degree rom the #ni ormed $er!ices #ni!ersity o the ?ealth $er!ices, )inter 6==7@<7, 8arameters, Bol( SSB,,, 3o( 7, O8hantom )arriors0 Disease as a Threat to #$ 3ational $ecurity, http055carlisle@ www(army(mil5usawc58arameters5=7winter5 ox(htm ?,B is a pandemic killer without a cure, and !iruses such as 2bola@Taire are merely a plane ride away rom the population centers o the de!eloped world( Biruses like 2bola, which are endemic to - rica, ha!e the potential to in lict morbidity and mortality on a scale not seen in the world since the /lack 8lague epidemics o medie!al 2urope, which killed a 1uarter o 2urope%s population in the 6Eth and 67th centuries( These diseases are not merely - rican problemsF they present real threats to [humankind] mankind( They should be taken e!ery bit as seriously as the concern or deliberate use o weapons o mass destruction(

Free Trade Good 1isease

Free Trade Good--Wake Forest 2010-11 1+/72

Free Trade Good--Wake Forest 2010-11 18/72 Free trade pro.otes e!ono.i! growth and so)ves the i.pa!t to downt(rn Griswo)d$ %7 [Daniel, Director o the Center or Trade 8olicy $tudies at the Cato ,nstitute, >une E, O)orried -bout a GecessionH Don9t /lame Cree Trade, http055www( reetrade(org5node5M7=]
$peculation is growing that the #($( economy may ha!e already slipped into recession( , the past is any guide, politicians on the campaign trail will be tempted to blame trade and globali+ation or the passing pain o the business cycle( /ut an analysis o pre!ious recessions and expansions shows

Free Trade Good ,!ono./

international trade and in!estment are not to blame or downturns in the economy and may, in act, be moderating the business cycle( ,n recent decades, as oreign trade and in!estment ha!e been rising as a share o the #($( economy, recessions ha!e actually become milder and less re1uent( The so tening o the business cycle has become so striking that economists now re er to it as .The Areat <oderation(. The
that more benign trend appears to date rom the mid@6=M's( The Areat <oderation means that -mericans are spending more o their time earning a li!ing in a growing economy and less in a contracting economy(

*ur economy has been in recession a total o 6I months in the past &4 years, or 4(E percent o the time( ,n comparison, between 6=74 and 6=ME, the nation su
economy has not been uni1ue in the world(

ered through nine recessions totaling =I months, or &6(6 percent o that time period( -merica%s recent experience o a more globali+ed and less !olatile

*ther countries that ha!e opened themsel!es to global markets ha!e been less !ulnerable to inancial and economic shocks( Countries that put all their economic eggs in the domestic basket lack the di!ersi ication that a more globally integrated economy can all back on to weather a slowdown( - country that increases trade as a share o its gross domestic
to trade( -s the authors o this study concluded0 $ome may ind this counterintuiti!e0

product by 6' percentage points is actually about one@third less likely to su er sudden economic slowdowns or other crises than i it were less open

trade protectionism does not .shield. countries rom the !olatility o world markets as proponents might hope( *n the contrary(((economies that trade less with other countries are more prone to sudden stops and to currency crises( Alobali+ation is not the only possible cause behind the moderation o the business cycle( ,mpro!ed monetary policy,
ewer external shocks :what some economists call .good luck.;, and other structural changes in the economy may ha!e all played a role( Cor example, the decline in unioni+ation and the resulting increase in labor@market lexibility ha!e allowed wages and employment patterns to ad"ust more readily to changing market conditions, mitigating spikes in unemployment( /etter in!entory management through "ust@in@time deli!ery has reduced the cyclical o!erhangs that can disrupt production( Combined with those other actors ,

expanding trade and globali+ation ha!e helped to moderate swings in national output by blessing us with a more di!ersi ied and lexible economy( 2xports can take up slack when domestic demand sags, and imports can satis y demand when domestic producti!e capacity is reaching its short@term limits( -ccess to oreign capital markets can allow domestic producers and consumers alike to more easily borrow to tide themsel!es o!er during di icult times( G)o"a) n(!)ear war >ames C(si!k$ $unday ?erald :$cotland; E(6M(0< http055www(sundayherald(com5oped5opinion5display(!ar(&7=477M('(dontQbankQonQ inanci alQtroubleQbeingQresol!edQwithoutQcon lict(php ,%m not saying that -merica is about to declare war on China, or that Aermany is going to in!ade Crance( /ut there are pro ound economic stresses in central 2urope that could rapidly turn into con lict in the bankrupt /altic states, ?ungary, #kraine( -nd i the Areat Gecession, as the ,<C%s Domini1ue $trauss@Dahn called it last week, turns into a Areat Depression, with a prolonged collapse in international trade and inancial lows, then we could see countries like 8akistan disintegrate into nuclear anarchy and war with neighbouring ,ndia, which will itsel be experiencing widespread social unrest( Collapsing China could see ci!il war tooF >apan will likely re@armF Gussia will seek to expand its sphere o economic interests( 3eed , to go onH

Free Trade Good--Wake Forest 2010-11 16/72

Free Trade Good ,-t ,!ono./


Free trade so)ves e!ono.i! !o))apse e-tend Griswo)d trade !reates an e-terna) poo) o0 invest.ents that "oosts &' ' in!o.e and diversi0ies .arkets that a)so so)ves the i.pa!t to an e!ono.i! !o))apse "e!a(se open .arkets !reate a 0a))"a!k d(ring re!essions this arg(.ent is e.piri!a))/ proven "/ the past 28 /ears the i.pa!t is n(!)ear war C(si!k sa/s a g)o"a) e!ono.i! !o))apse wi)) !reate inse!(rities in n(!)ear states that trigger pre-e.ptive strikes$ !().inating in reta)iator/ and g)o"a) n(!)ear war And$ .ore eviden!e 0ree trade is !riti!a) to .a-i.i>e e!ono.i! growth *a.es$ %7 [$allie, 8olicy -nalyst at the Cato ,nstitute, %&' Today (aga)ine, >uly, OGace to the /ottomH] #ree trade is a !ital component or maximi+ing economic growth( The #($(%s ongoing commitment to expanding trade@@a commitment shared by pre!ious Gepublican and Democratic administrations@@@has resulted in lower prices and greater product !ariety or consumers , "ob growth or exporters, and higher le!els o producti!ity and inno!ation that increase prosperity in this country and abroad( -ccounting or the phases o the business cycle, indicators o -merican worker and household well@being and prosperity continue to impro!e( The decades@long decline in manu acturing employment :although not matched by a decline in manu acturing output; has corresponded with an increase in ser!ice@sector "obs, with a net &I,''',''' new "obs added since 3-CT- took e ect, and an
That is a shame, because increase in real compensation o nearly &EU(

Free Trade Good--Wake Forest 2010-11 17/72

Free Trade Good ,-t ,!ono./ 2nnovation


Free trade pro.otes innovation and growth ke/ to the e!ono./ 531ris!o)) and Fit>gera)d$ %2 [Dr( Aerald 8( and $ara >(, Cormer Director o the Center or ,nternational Trade and 2conomics at the ?eritage Coundation and 8olicy -nalyst at the Center or ,nternational Trade and 2conomics at the ?eritage Coundation, OTrade 8romotes 8rosperity and $ecurity, December 6M, http055www(heritage(org5Gesearch5TradeandCoreign-id5/A6I67(c m] 2conomic reedom sustains economic growth and wealth creation( Cree markets oster the spirit o entrepreneurship and inno!ation that creates new products and "obs ( This creati!e economic process in turn generates higher incomes, sa!ings and wealth creation , and economic de!elopment in nations( -ccording to the * ice o the #($( Trade Gepresentati!e, or instance, the 3orth -merican Cree Trade -greement and the #ruguay Gound together .generate annual bene its o N6,E''@N&,''' or the a!erage -merican amily o our(.8 $uch bene its e1ual more than N6'' per month and would greatly assist struggling amilies throughout the world( -ccording to a )orld /ank study, .growth generally does bene it the poor as much as e!eryone else, so that the growth@enhancing policies o good rule o law, iscal discipline, and openness to international trade should be at the center o success ul po!erty reduction strategies(.9

Free Trade Good--Wake Forest 2010-11 17/72

Free Trade Good ,-t ,!ono./ A=an(0a!t(ringB


Free trade he)ps .an(0a!t(ring and their a(thors are wrong 2kenson$ %7 [Daniel, -ssociate Director o the Center or Trade 8olicy $tudies at the Cato ,nstitute, Institute o# Pu*lic '##airs Review, *ctober, O- 3ew 8rotectionism] 8olicymakers ha!e perpetuated a myth that the #$ manu acturing sector is in decline, which has encouraged urther skepticism among -mericans about trade( /ut closer examination re!eals not only that #$ manu acturing is thri!ing according to e!ery rele!ant inancial yardstick :in &''I, the sector achie!ed record sales, record pro its, record output, and record return on in!estment;, but that it is thri!ing in large measure because o relati!ely open #$ trade policies( -ccess to oreign markets has been a crucial component o #$ manu acturing re!enue growth( -nd access to imported raw materials, components, and capital e1uipment has helped keep the lid on #$ manu acturers% costs ( ,n act,
#$ producers accounted or 44 per cent o total #$ imports in &''I, which a irms a long@obser!ed relationship in the manu acturing sector0 imports and output mo!e in tandem(

Free Trade Good--Wake Forest 2010-11 1</72

Free Trade Good ,-t ,!ono./ ACo.petitivenessB


Free trade pro.otes innovation and in!reases !o.petitiveness ,iras$ %+ [-na ,sabel, $enior 8olicy -nalyst at the ?eritage Coundation, O)hy -merica 3eeds to $upport Cree Trade http055www(heritage(org5Gesearch5TradeandCoreign-id5bg67I6(c m] Cree trade, howe!er, is good or -merica, and or a !ery simple reason0 ,t allows -merican workers to speciali+e in goods and ser!ices that they produce more e iciently than the rest o the world and then to exchange them or goods and ser!ices that other countries produce at higher 1uality and lower cost( $peciali+ation and ree trade allow the #($( to become more competiti!e and inno!ati!e( ,nno!ation constantly pro!ides new technologies that allow -mericans to produce more, cure more diseases, pollute less, impro!e education, and choose rom a greater range o in!estment opportunities ( The resulting economic growth generates better@paying "obs, higher standards o li!ing , and a greater appreciation o the bene its o li!ing in a peace ul society( Free trade en!o(rages high prod(!tivit/ and !o.petitiveness G)ass.an$ 3<7 [>ames, Cellow at the -merican 2nterprise ,nstitute, OThe /lessings o Cree Trade, http055www( reetrade(org5node5M&] .Cree trade does not create "obs,. writes <el!yn Drauss o the ?oo!er ,nstitution in +ow ,ations -row Rich, his excellent book on trade( ,nstead, .it creates income or the community by reallocating "obs and capital rom lower@ producti!ity to higher@producti!ity sectors o the economy(. ,n other words, trade allows us to concentrate on what we do best( ,t may kill "obs in the textile industry, which is labor intensi!e, but breed "obs in electronics, where ingenious -mericans ha!e a .comparati!e ad!antage,. in the amous phrase used by Da!id Gicardo in 6M67( $ay, or example, that a country is ull o brilliant electronics engineers but
won%t allow textile imports across its borders( The engineers would ha!e to sew their own shirts( They%d ha!e less time or electronics, and the country would be poorer or it( That would be true e!en i the engineers were great at both electronics and sewing(

)hat counts is their comparati!e ad!antage0 what do they do better :meaning more pro itably; than other peopleH Free trade pro.otes strong !o.petitiveness that3s ke/ to the e!ono./ Froning$ 2000 [Denise, Cormer Trade 8olicy -nalyst in the Center or ,nternational Trade and 2conomics at the ?eritage Coundation, -ugust &4, http055www(heritage(orglGesearch,TradeandCoreign-id5/A6E=6(c m]
,n tact, -mericas greatest ad!antage

lies in its ability to inno!ate and to build upon that continually expanding knowledge base( -ccording to The "conomist, the #nited $tates has an inno!ational complex@@those thousands o entrepreneurs, !enture capitalists, and engineers@@ unmatched anywhere in the world(9V This resource results in an e!er@growing number o new products and ser!ices that bolster -mericas competiti!e ad!antage in the global market and greater prosperity at home( This competiti!e ad!antage deri!es largely rom -mericas open market practices( Cree trade promotes inno!ation because, along with goods and ser!ices, the low o trade circulates new ideas( $ince companies must compete with their o!erseas counterparts( -merican irms can take note o all the successes as well as the ailures that take place in the global marketplace( Consumers then bene it because companies in a reely competing market must either keep up with the leader in order to retain customers or inno!ate to create their own niche(

Free Trade Good--Wake Forest 2010-11 20/72

Free Trade Good ,-t ,!ono./ AAT9 2n0ant/Ange) 2nd(striesB


Free trade doesn3t h(rt in0ant ind(stries prote!tionis. C(st de)a/s the i.pa!t Fried.an and Fried.an$ 3<7 [<ilton and Gose, Cormer $enior Gesearch Cellow at the ?oo!er ,nstitution, OThe Case or Cree Trade http055www(hoo!er(org5publications5digest5E44'7&7(html]
The second is the .in ant industry. argument ad!anced, or example, by -lexander ?amilton in his Geport on <anu actures( There is, it is said, a potential industry that, i once established and assisted during its growing pains, could compete on e1ual terms in the world market( - temporary tari is said to be "usti ied in order to shelter the potential industry in its in ancy and enable it to grow to maturity, when it can stand on its own eet( 2!en i the industry could compete success ully once established, that does not o itsel "usti y an initial tari ( ,t is worthwhile or consumers to subsidi+e the industry initially @@ which is what they in e ect do by le!ying a tari @@only i they will subse1uently get back at least that subsidy in some other way, through prices lower than the world price or through some other ad!antages o ha!ing the industry( /ut in that case is a subsidy neededH )ill it then not pay the original entrants into the industry to su er initial losses in the expectation o being able to recoup them laterH - ter all , most irms experience losses in their early years, when they are getting established( That is true i they enter a new industry or i they enter an existing one( 8erhaps there may be some special reason why the original entrants cannot recoup their initial losses e!en though it may be worthwhile or the community at large to make the initial in!estment( /ut surely the presumption is the other way(

Free Trade Good--Wake Forest 2010-11 21/72 Free trade doesn3t red(!e Co"s' =i))er 07 :Terry, Director o the Center or ,nternational Trade and 2conomics at The ?eritage Coundation, 8roducti!ity Arowth, 3ot Trade, ,s Cutting <anu acturing >obs, 3o! &7, www(heritage(org5Gesearch52conomy5upload5wmQ67'=(pd ;
The /ene its o Trade( 3-CT- itsel is the per ect example( -ccording to reports issued lastmonth by the Department o Commerce, the #($(economy grew by 4' percent during 3-CT-9s irst6E years(E Contrary to 8erot9s gloomy predictions o "ob losses, the #($( economy actually added &4 million"obs during this period( The a!erage unemploymentrate since 3-CT- has been only 4(6 percent,!ersus 7(6 percent during the prior period( #($(manu acturing output rose IE percent during3-CT-9s irst 6E years, compared to only E7 percentin the period be ore( Compensation or manu acturing workers increased 6(I percent annually during3-CT-, !ersus '(= percent annually be ore(7)hat accounts or the disconnect between this positi!e record o

Free Trade Good ,-t ,!ono./ AAT9 D(rts *o"sB

economic impro!ement and !oters9 negati!e sentimentsH - !ariety o actors ha!e combined to increase workers9 insecurity, e!en as their actual economic situation s, on a!erage, ha!e been impro!ing strongly( ,n a good year or the #($(economy, about 7',''' businesses ail(4 <any moreare created to replace them, but 7',''' business ailures is a signi icant number by any reckoning(/usinesses ail or di!erse reasons( $ome can9t competewith other companies making similar products(*thers ail because consumer tastes change( ,nterms o employment, the ailure o 7',''' irmstranslates into about 64 million "obs lost each year(-lmost none o this "ob loss has to do with trade(During a &''7 speech, Cederal Geser!e Chairman /en /ernanke estimated that only & percent o #($( "ob losses were due to oreign trade(I ?e attributed6 percent o "ob loss to outsourcing( $o, in /ernanke9sestimation, a total o E percent o "ob losses results rom trade or oreign competition( $uch small negati!e e ects are o!erwhelmed by the consumption and in!estment bene its o trade , which are estimated to amount to as much as N6','''annually or a amily o our( 76&E74I78roducti!ity Aains( The explanation or these shi ts is that producti!ity has been exploding in the#nited $tates and throughout the world( Technological change and inno!ation are making it possible to produce more output with less labor ( ,n the#($(, that labor is
shi ting to "obs in the ser!ices sectorand other parts o the economy( )illiam )ard, apro essor o applied economics and statistics atClemson #ni!ersity, has estimated that 7(4 milliono the 67(7 million manu acturing "obs that existedin the #nited $tates in 6==' would not ha!e beenneeded in &''7 because o producti!ity growth(MThe growth in manu acturing producti!ity is aworldwide phenomenon( -ccording to )ard, producti!itygains in China between 6==4 and &''&would ha!e eliminated the need or about E7 millionChinese manu acturing "obs( -ctual manu acturing"ob losses in both China and the #nited$tates were ar less than these numbers, becausewhile producti!ity gains were reducing demand ormanu acturing workers, gains in AD8 were increasingit( ?owe!er, the total number o manu acturing"obs went down in both countries (=*ne o the

biggest mistakes o trade opponents is thinking o the global economy in static terms0 >obs lost in the #nited $tates must mean "obs gained elsewhere( This representation o trade as a +ero sum game is simply not accurate( The #($( andworld economies are dynamic things, growing ande!ol!ing daily( Gapid technological ad!ances are dri!ing down the cost in labor o manu acturing around the world( To resist this trend by adopting protectionist measures that subsidi+e less e icient producers is to buy into a world !ision o lower producti!ity and slower growth, a poorer world in which e!eryone has less and produces less than they otherwise could(

Free Trade Good--Wake Forest 2010-11 22/72 &' ' trade )eadership is ke/ to the e!ono./ ,iras$ %8 [-na ,sabel, $enior 8olicy -nalyst at the ?eritage Coundation, OCour Ge orms to Gegain #($( Leadership in 2conomic Creedom, http055www(heritage(org5Gesearch5TradeandCoreign-id5bg6M64(c m]
$hould the #nited $tates, as a large economy, worry that it is losing its reedom Opodium to small economies like Chile, ,celand, 3ew Tealand, or

Free Trade Good ,-t Trade @eadership E/T ,!on

*ne can ne!er o!erestimate the damage caused by continuously poor policymaking( Cor example, in the early 6=''s, -rgentina was the world9s se!enth wealthiest economy( ,ts wealth was dri!en largely by
2stoniaH -bsolutely( became blind to the e!entual implications o poor policy( The

oreign direct in!estment rom 2ngland and by strong en orcement o property rights( ,t took no more than 7' years o continuously poor policymaking, starting in the 6=E's, to erode this wealth( Today, with its world leadership lost, -rgentina is a poor country mired in crisis, with a currency that moneychangers around the world re use to handle( -rgentina did not become poor o!ernight( ,ts road to po!erty began when it

perception o the #nited $tates as the most attracti!e place to do business is changing as the downward trend in #($( economic reedom continues( That perception plummets as spending swells the #($( ederal de icit, as Congress threatens more trade restrictions and tari s and passes legislation to expand under unded trans er programs like <edicare and $ocial $ecurity, as tax rates remain among the highest in the world, as the #($( remains one o the ew countries to tax the o!erseas earnings o its corporations, and as some in the -dministration support corporate wel are programs such as agricultural subsidies(

Free Trade Good--Wake Forest 2010-11 23/72

Free Trade Good--Wake Forest 2010-11 2+/72

Free Trade Good ,nviron.ent


Free trade so)ves environ.enta) !o))apse three reasons !hoen"a(.$ 3<2 [Thomas >(, 8ro essor and 2xecuti!e Director o the Center or ,nternational and Comparati!e Law and the #ni!ersity o Aeorgia, OTrade and 2n!ironment0 Cree ,nternational Trade and 8rotection o the 2n!ironment0 ,rreconcilable Con lictH The 'merican &ociety o# International aw ,ewsletter , *ctober, Lexis] The en!ironmentalists who argue that ree trade will destroy the en!ironment are shortsighted and wrong( -s a recent A-TT in ormational report nM has pointed out, there is no undamental con lict between A-TT rules and the need to protect en!ironmental 1uality( -nalysis shows that existing A-TT regulations place !irtually no constraints on the ability o a nation to protect its own en!ironment and resources against damage caused by either domestic production or domestically produced or imported products( n= A-TT rules can also be made consistent with e orts to preser!e regional and global en!ironmental 1uality( Curthermore, trade liberali+ation, whether on a global or regional basis, will actually help the en!ironmentalists% cause by : 6; ostering common standards or en!ironmental protection that must be obser!ed e!en by certain de!eloping countries that currently ignore en!ironmental concernsF n6' :&; terminating subsidies, particularly in agriculture, that are en!ironmentally destructi!e, as well as ine icientF n66 and :E; ensuring economic growth, which will create the inancial means, particularly or de!eloping countries, to control pollution and protect the en!ironment( n6& ,nviron.enta) !o))apse !a(ses g)o"a) wars Do.er-1i-on$ 3<7 [Thomas, -ssistant 8ro essor o 8olitical $cience and Director o the 8eace and Con lict $tudies 8rogramme at the #ni!ersity o Toronto, )orld $ecurity Challenges or a 3ew Century, p( E7&@E7E] 2xperts ha!e proposed numerous possible links between en!ironmental change and con lict( $ome ha!e suggested that en!ironmental change may shi t the balance o power between states either regionally or globally, causing instabilities that could lead to war( -nother possibility is that global en!ironmental damage might increase the gap between rich and poor societies, with the poor then !iolently con ronting the rich or a airer share o the world9s wealth( $e!ere con lict may also arise rom rustration with countries that do not go along with agreements to protect the global en!ironment, or that O ree@ride by letting other countries absorb the costs o en!ironmental protection( )armer temperatures could lead to contention o!er more easily har!ested resources in the -ntarctic( /ulging populations and land stress may produce wa!es o en!ironmental re ugees, spilling across borders and disrupting relations among ethnic groups( Countries might ight among themsel!es because o dwindling supplies o water and the e ects o upstream pollution (I - sharp decline in ood crop production and gra+ing land could lead to con lict between nomadic tribes and seden@ tary armers( 2n!ironmental change could in time cause a slow deepening o po!erty in poor countries, which might open bitter di!isions between classes and ethnic groups, corrode democratic institutions, and spawn re!olutions and insurgencies( ,n general, many experts ha!e the sense that en!ironmental problems will Oratchet up the le!el o stress within states and the international community, increasing the likelihood o many di erent kinds o con lict R rom war and rebellion to trade disputesRand undermining possibilities or cooperation( ,nviron.enta) !o))apse !a(ses e-tin!tion 1iner <+ [.The -rmy and the 2ndangered $pecies -ct0 )ho%s 2ndangering )hom. l5n] /y causing widespread extinctions, humans ha!e arti icially simpli ied many ecosystems( -s biologic simplicity increases, so does the risk o ecosystem ailur e( The spreading $ahara Desert in - rica, and the dustbowl conditions o the 6=E's in the #nited $tates are relati!ely mild examples o what might be expected i this trend continues( Theoretically, each new animal or plant extinction, with all its dimly percei!ed and intertwined e ects, could cause total ecosystem collapse and human extinction( 2ach new extinction increases the risk o disaster( Like a mechanic remo!ing, one by one, the ri!ets rom an aircra t%s wings, [hu]mankind may be edging closer to the abyss( :[ ] W correction;

Free Trade Good--Wake Forest 2010-11 28/72

Free Trade Good ,-t ,nviron.ent


Free trade so)ves environ.enta) !o))apse e-tend !hoen"a(. 0ree trade 0osters !o..on standards 0or environ.enta) pro")e.s$ destro/s ine00i!ient s("sidies$ and ens(res e!ono.i! growth whi!h prevents po))(tion and !a(ses environ.enta) awareness the i.pa!t is g)o"a) wars o(r Do.er-1i-on eviden!e sa/s that environ.enta) !o))apse e-a!er"ates the gap "etween ri!h and poor whi!h !reates resent.ent and a)so .akes reso(r!e wars inevita")e the se!ond i.pa!t is e-tin!tion 1iner indi!ates that with !ontin(ing environ.enta) !atastrophes$ intertwining e00e!ts snow"a)) and !a(se tota) e!os/ste. !o))apse and the end o0 h(.an )i0e And$ .ore eviden!e 0ree trade in!reases wea)th whi!h 0osters "etter environ.enta) prote!tion ,iras and !hae0er$ %1 [-na and /rett, 2conomic 8olicy -nalyst or Latin -merica at the ?eritage Coundation, Cellow at the ?eritage Coundation, OTrade0 The /est )ay to 8rotect the 2n!ironment, http055www(heritage(org5Gesearch5TradeandCoreign-id5/A67M'(c m] The key to increasing en!ironmental protection in de!eloping nations is to increase economic growth( -s a country%s standard o li!ing rises through economic liberali+ation and trade expansion, its industry can more readily a ord to control emissions and its citi+ens ha!e more discretionary income to allocate toward impro!ed en!ironmental 1uality( Cree trade is a central component in increasing economic growth( /y opening markets and creating more business opportunities,
ree trade osters economic growth by rewarding .risk taking by increasing sales, pro it margins, and market share( Companies can choose to build on those pro its by expanding their operations, entering new market sectors, and creating better@paying "obs(. 3 Cull liberali+ation o the economy, beginning with

an open trade policy, is the most e ecti!e en!ironmental preser!ation strategy because economic liberali+ation, including ree trade, leads directly to increased economic growth( $peci ically, the e!idence demonstrates th-T0 )ealthier societies are more likely to demand and implement greater en!ironmental protection because they can better a ord the costs o those policies( )ealthier societies not only are better able to a ord en!ironmental protection, but also show a pro!en desire or such protection that increases as income grow s( 4 This relationship is supported by extensi!e e!idence published by the 3ational /ureau o 2conomic Gesearch( Aene <(
Arossman and -lan /( Drueger, or example, concluded that pollution appears to rise with AD8 at low le!els o income, but e!entually to reach a peak, and then to all with AD8 at higher le!els o income(((()e ind that economic growth brings an initial phase o deterioration ollowed by a subse1uent phase o impro!ement( 5

And$ Free trade so)ves the environ.ent A)i$ %7 [-yaan ?irsi -li, Cellow at the -merican 2nterprise ,nstitute, <ember o the 3etherland9s 8arliament, and 3orway%s ?uman Gights $er!ice%s /ellwether o the Lear -ward, *ctober I, &''M, ODoes the Cree <arket Corrode <oral CharacterH 3ot -t -ll http055www(templeton(org5market58DC5-li(pd ] Cree@market societies are under ire rom en!ironmentalists today or supposedly ruining the planet( /ut the passionate debate about global warming and the moral implications o waste and pollution has arisen only in politically ree societies( <oreo!er, as go!ernments debate whether global warming is really man@made, economic actors ha!e already begun to incorporate these concerns into their production and in!estment( They ha!e begun taking measures to build more uel@e icient cars and to create a ordable systems to pro!ide alternati!e sources o energy( Areener@than@thou marketing is a strong orce among a certain sector o consumers( Corporations and irms do this because they are rational economic actors( Companies that are greener may actually make more pro its than those that ignore en!ironmental morality(

Free Trade Good--Wake Forest 2010-11 26/72

Free Trade Good ,-t ,nviron.enta) :rote!tion


Free trade )eads to environ.enta) prote!tion 4oin$ 1ire!tor o0 2nternationa) :o)i!/ #etwork3s ,nviron.ent :rogra..e$ F 5konski$ Co..(ni!ations 1ire!tor at 2nternationa) :o)i!/ #etwork$ 2007 [Caroline K Dendra, O8rotectionism harms consumers and en!ironment, The /oston Alobe, Cebruary E, &''M]
/ut instead o le!eling the playing ield, this game would arti icially make all players one@legged and one@armed( The bene its o trade would be replaced by losses in consumer wel are and en!ironmental degradation( /ut in reality , it is ar more

moral to support liberali+ation( Trade barriers o any kind, including .green. subsidies, tari and 1uotas, harm both consumers and producers ( They arti icially increase costs, leading to unnecessary waste o scarce natural and human resources( Consumers and producers spend more to

purchase the same goods and ser!ices, so ha!e less to in!est in new technologies or to sa!e or the uture( -lthough some claim that trade barriers would help the en!ironment, they are actually counterproducti!e( They a!or the status 1uo by rewarding ine icient producers and thus delaying the adoption o cleaner, resource@sa!ing technologies( Consider bananas( These

could be grown in the cold climates o Cinland, Canada, and Gussia( /ut to do so would be ar more costly than growing them in warm places, and then exporting them to consumers around the world( )hich is why they are grown in places such as Costa Gica and the ,!ory Coast( -s a result bananas are less expensi!e and resources are used more sustainably ( 8oor
countries would su er disproportionately rom green trade barriers @@ with ad!erse e ects on both people and the en!ironment(

8rotectionism will mean ewer products rom poor countries being sold to industriali+ed countries( $o local companies will ha!e less money to in!est in new, cleaner technologies ( wealth, which translates into ewer resources a!ailable to in!est in en!ironmental conser!ation(

,nstead, they will continue to use older, dirtier production methods and thus will use scarce resources less sustainably( This e ect would be exacerbated by reduced in!estment rom multinational companies( <oreo!er , less trade means less

Free Trade Good--Wake Forest 2010-11 27/72 Free trade i.proves the environ.ent 4enCa.in$ :,GC senior asso!iate and pro0essor o0 e!ono.i!s at C)e.son &niversit/$ 2002 [Daniel D(, 8roperty and 2n!ironment Gesearch Center, O,s Cree Trade Aood or the 2n!ironmentH, <arch &''&, http055www(perc(org5articles5article&I&(php, accessed >uly M, &''M]
Gock@throwers at )orld Trade *rgani+ation meetings call themsel!es en!ironmentalists( They protest that international trade is en!ironmentally destructi!e, because it induces the emergence o .pollution@ha!ens.RThird )orld nations that take on the dirty work o tanning leather, making paper, and the like( These nations become polluted and, it is claimed, total en!ironmental damage also increases( <any economists are skeptical o the pollution@ha!en story, but the contention that trade harms the en!ironment is di icult to assess systematically( The links between trade and the en!ironment are subtle and complicated, and simply measuring such concepts in a con!incing way is daunting( Gecent research has made huge strides in cracking this problem and pro!ides us with a compelling conclusion 0 Creer international trade impro!es the en!ironment :-ntweiler, Copeland, and Taylor &''6;( )hether it is between people, states, or nations, trade can ha!e an impact on en!ironmental 1uality through three channels( These are changes in :i; where goods are produced, :ii; the scale o economic acti!ity, and :iii; the production techni1ues used( -ntweiler et al( are able to distinguish the e ects o each o these on en!ironmental 1uality( ,nterestingly, changes in the location o productionRthe pollution@ha!en hypothesisRturn out to be empirically unimportant( The act that reer trade induces increases in the scale o economic acti!ity, on the other hand, has a modest ad!erse impact on en!ironmental 1uality( /ut the third e ect Rchanges in production techni1uesR

Free Trade Good ,-t ,nviron.enta) :rod(!tion

swamps the other orces, and it is en!ironmentally bene icial, not harm ul( *!erall, the authors estimate that or each one percent that reer trade raises per capita income in a nation, the result is that pollution :as measured by sul ur dioxide concentrations; alls by one percent( )hen trade expands, the composition o output rom each nation changes because trading partners can now exploit
their sources o comparati!e ad!antageRdoing more o what each does best and less o those things at which each is not !ery good( -nti@trade protestors ha!e argued that comparati!e ad!antage mo!es dirty production processes to de!eloping countries, polluting these nations and increasing o!erall en!ironmental damage( )hat this claim misses is that a staggering array o actors help determine the location o producti!e acti!ity( 2!en or pollution@intensi!e goods, considerations other than pollution@ abatement costsRsuch as capital abundance, labor market cconditions, and transportation costsRare generally the determining orces(

As 0ree trade e-pands$ !)eaner te!hniH(es o0 prod(!tion 0or. 4enCa.in$ :,GC senior asso!iate and pro0essor o0 e!ono.i!s at C)e.son &niversit/$ 2002 [Daniel D(, 8roperty and 2n!ironment Gesearch Center, O,s Cree Trade Aood or the 2n!ironmentH, <arch &''&, http055www(perc(org5articles5article&I&(php, accessed >uly M, &''M]
*n balance, the authors ind little impact on the en!ironment due to trade@induced changes in the location o production( The other e ects o reer tradeRincreases in the scale o acti!ity and changes in the techni1ues o productionRare more important( $imply increasing the scale o economic acti!ity means more material goods are produced, so more byproducts are ormed, causing air and water pollution( This tends to reduce en!ironmental 1uality( The authors ind this e ect clearly, albeit modestly, present in the data0 2ach one percent rise in economic acti!ity induces about one@1uarter o one percent rise in pollution concentrations due to this orce( *!erall, howe!er, -ntweiler et al( ind that this negati!e e ect is o!erwhelmed as economic growth, spurred by trade, takes place ( )hen people get richer they demand more en!ironmental

amenities( -s ree trade expands, each one percent increase in per capita incomes tends to dri!e pollution concentrations down by 6(&4 to 6(4 percent because o the mo!ement to cleaner techni1ues o production( The conclusions one can draw rom this research are limited in two dimensions(
Cirst, sul ur dioxide concentrations are the sole measure o pollution used in this paper, a act dri!en simply by the need to select some measure( Cree trade might worsen other measures o pollution, but sul ur dioxide concentrations are known to mo!e closely with other airborne emissions( ?ence, it seems unlikely that alternati!e measures o pollution would yield much di erent conclusions( $econd, the authors do not in!estigate exactly what regulatory or institutional changes are dri!ing the en!ironmental impro!ement caused by rising incomes( ,n principle, the rising demand or en!ironmental 1uality might get translated into en!ironmental impro!ement through explicit go!ernment pollution abatement policy or through pollution@ reducing changes in pri!ate contractual arrangements( The authors do not attempt to disentangle the relati!e roles o these two e ectsF they can, howe!er, discern the combined e ect( /ut the nature o these changes is clearly important in the debate o!er the e icacy o ree market en!ironmentalism( , rising incomes bring en!ironmental impro!ement chie ly due to the growth o intrusi!e regulatory schemes, the en!ironmentally bene icial e ects are likely to be less appealing to many readers o this column( $till, there is little doubt about the 1uite conclusi!e inding o this research( ,n the words o the authors0 . Cree trade

is good or the en!ironment(. 8erhaps this will make attendance at uture international trade con erences somewhat less ha+ardousRalbeit less interestingRto all concerned(

Free Trade Good--Wake Forest 2010-11 27/72 Co.panies won3t re)o!ate to avoid reg()ation- !o.p)ian!e is !heap and overa)) pri!e di00erentia)s are .ini.a) Whee)er 2k1 :Da!id, $enior Cellow at the Center or Alobal De!elopment, 8(?(D( rom <,T, Racing to the Bottom. Foreign Investment and 'ir Pollution in Develo/ing Countries , !ournal o# "nvironment 0 Develo/ment, Bol( 6', 3o( E, &&4@&74, $eptember; These results strongly contradict the race@to@the@bottom model( ,nstead o racing toward the bottom, ma"or urban areas in China, /ra+il, <exico, and the #nited $tates ha!e all experienced signi icant impro!ements in air 1uality( The impro!ements in Los -ngeles and <exico City are particularly noteworthy because they are the dominant industrial centers in the region most strongly a ected by 3-CT-( The race@to@the@bottom model9s basic assumptions must be lawed, because its predictions are inconsistent with urban air pollution trends in three o the de!eloping world9s ma"or industrial powers( ,n act, empirical research has undermined all o these assumptions( 8ollution control is not a critical cost actor or most pri!ate irms( Gesearch in both high@ and low@income countries suggests that pollution control does not impose high costs on business irms( >a e et al( :6==4; and others ha!e shown that compliance costs or *2CD industries are surprisingly small, despite the use o command@ and@control regulations that are economically ine icient( These results suggest that di erential pollution control costs do not pro!ide*2CD irms with strong incenti!es to mo!e o shore ( Cirms in de!eloping
countries re1uently ha!e e!en lower costs because the labor and materials used or pollution control are less costly than in the *2CD economies( /ig polluters also ha!e sub"ect to scale economies( Cigure I displays recent econometric estimates o control costs or sul ur dioxide :$*&; air pollution in large Chinese actories :Dasgupta,)ang,K)heeler, 6==7;(7 Cor non@state@owned enterprises, costs o a ew dollars per ton are typical until control rates rise abo!e 7'U( -s Cigure I shows, state@ owned enterprises ha!e much higher costs because they are operated less e iciently( The a!erage cost o pollution control has there ore declined as China has mo!ed away rom state ownership during the era o liberali+ation( ,n Colombia, a new pollution charge program has sharply reduced organic water pollution by large actories( Colombian actory managers ha!e ound that cleaning up is cheaper than paying charges, e!en when they are set at relati!ely low le!els( 3o participating actory seems to ha!e experienced inancial di iculties in the process :)heeler, 6===;( $imilar conclusions ha!e emerged rom studies o regulation and control costs in <alaysia :>ha, <arkandya, K Bossenaar, 6===F Dhalid K /raden, 6==E;(

Free Trade Good AT9 :o))(tion Davens

:o))(tion Davens won3t happen- !o..(nit/ "a!k)ash' Whee)er 2k1 :Da!id, $enior Cellow at the Center or Alobal De!elopment, 8(?(D( rom <,T, Gacing to the /ottomH Coreign ,n!estment and -ir 8ollution in De!eloping Countries, >ournal o 2n!ironment K De!elopment, Bol( 6', 3o( E, &&4@&74, $eptember; Low@income communities penali+e dangerous polluters, e!en when ormal regulation is weak or absent( -bundant e!idence rom -sia and Latin -merica shows that neighboring communities can strongly in luence actories9 en!ironmental per ormance :see Dasgupta, Lucas,K)heeler, 6==MF ?artman, ?u1, K )heeler, 6==7F ?ettige, Dasgupta, K )heeler, &'''F ?ettige,
?u1, 8argal, K )heeler, 6==IF ?u1 K )heeler, 6==&F 8argal K )heeler, 6==I;( )here ormal regulators are present, communities use the political process to in luence the strictness o en orcement(

)here regulators are absent or ine ecti!e, nongo!ernmental organi+ations :3A*s; and community groups :including religious institutions, social organi+ations, citi+ens9 mo!ements, and politicians; pursue in ormal regulation based on con!incing polluters to con orm to social norms( -lthough these groups !ary rom region to region, the pattern e!erywhere is similar0 Cactories negotiate directly with local actors in response to threats o social, political, or physical sanctions i they ail to compensate the community or reduce emissions( ,ndeed, communities sometimes resort to extreme measures when su iciently pro!oked( ,n the 'sian &urvey, Gobert Cribb :6=='; recounted an ,ndonesian incident Oreported rom /an"aran near >akarta in 6=M' when local armers burned a go!ernment@owned chemical actory that had been polluting their irrigation channels ( ,n a
similar !ein, <ark Cli ord :6=='; reported in the Far "astern "conomic Review that community action pre!ented the opening o a chemical complex in $outh Dorea until appropriate pollution control e1uipment was installed( )hen actories respond directly to communities, the results may bear little resemblance to the dictates o ormal regulation( Cor example, Cribb :6=='; also cited the case o a cement actory in >akarta, ,ndonesia, that, without admitting liability or the dust it generates, Ocompensates local people with an ex gratia payment o Gp( 4,''' and a tin o e!aporated milk e!ery month( -garwal, Chopra, and $harma :6=M&; described a situation in ,ndia where, con ronted by community complaints, an ,ndian paper mill installed pollution abatement e1uipment, and to compensate residents or remaining damage, the mill also

, all else ails, community action can also trigger the physical remo!al o the problem( ,n Gio de >aneiro, /ra+il, or example, a neighborhood association protest against a polluting tannery led managers to relocate it to the city9s outskirts
constructed a ?indu temple( :$tot+, 6==6;(

:rote!tionis. !an3t stop po))(tion havens- the/ har. high H(a)it/ 0a!tories C(st as .(!h as po))(ting ones' Whee)er 2k1 :Da!id, $enior Cellow at the Center or Alobal De!elopment, 8(?(D( rom <,T, Gacing to the /ottomH Coreign ,n!estment and -ir 8ollution in De!eloping Countries, >ournal o 2n!ironment K De!elopment, Bol( 6', 3o( E, &&4@&74, $eptember; Rejection o# trade and aid sanctions as levers to #orce closure o# the regulatory ga/ *etween low1 and high1income countries( Cirst, such sanctions are un"ust because they ail to discriminate between clean and dirty irms in the a ected countrie s( 3umerous studies ha!e shown that actories with world@class standards are operating e!en in the poorest countries :- sahK Bincent, 6==7F ?artman et al(, 6==7F ?u1 K )heeler, 6==&F )heeler et al(, 6===;( $econd, such blunt instruments will ine!itably penali+e workers in poor countries by reducing opportunities or "obs and higher wages( Cinally, they will not work anyway( -s noted in pre!ious sections o this article, poor countries ha!e weaker regulations and higher pollution intensities or a host o reasons( Ao!ernments o low@income countries could not deli!er on promises o *2CD@le!el regulation, e!en i they were willing to make them( :o))(tion haven h/pothesis is 0a)se' Ienkat %+ :Dumar, works in $ilicon Balley%s high@tech industry, and writes about the social and en!ironmental impacts o technology and globali+ation, Free Trade: Bene#it or Peril #or the "nvironment., The national en!ironmental and training oundation, >anuary Mth, http055www(commondreams(org5!iews'75'6'M@6'(htm; Copeland and Taylor ind no e!idence or the Opollution ha!en hypothesis, which states that ree trade will prompt polluting industries to mo!e to poor countries where en!ironmental regulations are lax( Their results suggest that rich countries ha!e a comparati!e ad!antage in capital@intensi!e polluting industries, so these industries are likely to stay in rich countries e!en i en!ironmental regulations are tighter( Cor these de!eloped countries, the right en!ironmental policy can produce a net good or the en!ironment( 8ollution policy, in the orm o regulation or taxes, can lead to cleaner production methods by encouraging better technologies( The message to de!eloping countries is that en!ironmental problems can be exacerbated i trade liberali+ation outpaces en!ironmental policy @@ as we will see shortly, therein lies one o the con licts between trade and the en!ironment( The complexity o the sub"ect becomes e!ident as the book lea!es a host o 1uestions unanswered( The authors limit their ocus to local pollution caused by production o goods, while ignoring other signi icant en!ironmental impacts o trade(

Free Trade Good--Wake Forest 2010-11 2</72

Free Trade Good--Wake Forest 2010-11 30/72 Free trade ends 0ood shortages$ and keeps pri!es sta")e ,ndur <( Gok)an/, >ulian $imon Cellow at the 8olitical 2conomy Gesearch Center, -ugust &&, 2002, http055www(cato(org5pubs5pas5pa777(pd , accessed 45E5'E
/ecause it

Free Trade Good Fa.ine

is always possible to ha!e local ood shortages in the midst o a worldwide glut, the importance o trade should not be underestimated( Currently, grain imports amount to 6' percent o production in de!eloping countries and &' percent in $ub@$aharan - rica( )ithout such imports, ood prices in those countries would no doubt be higher and more people would be priced out o the market( ,n essence, globali+ation, through trade, has enhanced ood security( -nd in doing so it has reduced the
se!ere health burdens that accompany hunger and undernourishment(

G)o"a) n(!)ear war Cal!in 9=M [)illiam( 3europhysiologist X # o )ashington( OThe Areenhouse Connection The -tlantic <onthly, Bol &M6 3o 6( >anuary 6==M( 8ro1uest55khirn] The population@crash scenario is surely the most appalling . Plummeting crop yields would cause some powerful countries to try to take over their neighbors or distant lands @@ i only because their armies, unpaid and lacking food, would go marauding, both at home and across the borders( The

better-organized countries would attempt to use their armies , before they fell apart entirely, to take over countries with significant remaining resources , driving out or starving their inhabitants if not using modern weapons to accomplish the same end: eliminating competitors for the remaining food. This
would be a worldwide problem @@ and could lead to a Third )orld )ar @@ but 2urope%s !ulnerability is particularly easy to analy+e( The last abrupt cooling, the Lounger Dryas, drastically altered 2urope%s climate as ar east as #kraine( 8resent@day 2urope has more than I4' million people( ,t has excellent soils, and largely grows its own ood( ,t could no longer do so i it lost the extra warming rom the 3orth -tlantic(

Free Trade Good--Wake Forest 2010-11 31/72

Free Trade Good--Wake Forest 2010-11 32/72

Free Trade Good G)o"a) 1eve)op.ent


Free trade is ke/ to g)o"a) deve)op.ent =i))er$ %7 [Terry, Director o the Center or ,nternational Trade and 2conomics at the ?eritage Coundation, O,nternational Trade as an 2ngine or De!elopment, <ay &E, http055www(heritage(org5Gesearch5TradeandCoreign-id5wm6=EI(c m] ,nternational trade is ul illing its promise as the most signi icant source o external inancing or de!elopment, surpassing all other external sources combined( ,n the irst i!e years ollowing the adoption
o the <onterrey Consensus, exports rom emerging markets and de!eloping countries ha!e grown, according to the ,nternational <onetary Cund, at an a!erage annual rate o almost 66 percent( Current account balances or those countries ha!e grown rom N7M(7 billion in &''& to N4=I billion

That these increases ha!e come despite the lack o success so ar in achie!ing urther trade liberali+ation in the Doha Gound re lects an important act, which is that the world already has an international trading en!ironment that is open enough to pro!ide signi icant opportunities or enterprises in de!eloping countries to grow and prosper through trade ( The opportunities are not con ined to one regional group( - rican de!eloping countries had a current account surplus in
in &''I( &''I o almost N&= billionF )estern ?emisphere de!eloping countries gained N77(= billion rom exportsF de!eloping -sia had a surplus o an astounding N&7M billion( The opportunities to export are there( The promise o <onterrey was an honest promise(

1eve)op.ent is ke/ to so)ve e-tin!tion 4arker$ 2000 [/rent, electrical engineer, and manager o corporate communications or the 2lectric 8ower Gesearch ,nstitute and ormer industrial economist and sta author at $G, ,nternational and as a commercial research analyst at #$S Corporation , OTechnology and the Juest or $ustainability( 28G, >ournal, $ummer, in otrac] accelerating producti!ity is not an option but rather an imperati!e or the uture( ,t is necessary in order to pro!ide the wealth or en!ironmental sustainability, to support an aging population in the industriali+ed world, and to pro!ide an economic ladder or de!eloping nations( The second area o opportunity or technology lies in its potential to help stabili+e global population at 6'@6& billion sometime in the twenty@ irst century, possibly as early as &'74( The key is economics( Alobal communications, rom tele!ision to mo!ies to the ,nternet, ha!e brought an image o the com ortable li e o the de!eloped world into the homes o the poorest people, iring their own aspirations or a better 1uality o li e, either through economic de!elopment in their own country or through emigration to other countries( , we in the de!eloped world can make the basic tools o prosperity@@in rastructure, health care, education, and law@@more accessible and a ordable , recent history suggests that the cultural dri!ers or producing large amilies will be tempered, relati!ely 1uickly and without coercion( /ut the task is enormous( The physical prere1uisites or prosperity in the global economy are electricity and communications( Today, there are more than & billion people li!ing without electricity, or commercial energy in any orm, in the !ery countries where some 4 billion people will be added in the next 4' years( , or no other reason than our enlightened sel @interest, we should stri!e or uni!ersal access to electricity, communications, and educational opportunity(
Crom a social standpoint, )e ha!e little choice, because the ate o the de!eloped world is inextricably bound up in the economic and demographic ate o the de!eloping world( - third, related

opportunity or technology is in decoupling population growth rom land use and , more broadly, decoupling economic growth rom natural resource consumption through recycling, end@use e iciency, and industrial ecology( Decoupling population rom land use is well under way( -ccording to Arubler, rom 67'' to 6M4' nearly &
the world, with ew decades,

hectares o land :4 acres; were needed to support e!ery child born in 3orth -merica, while in the more crowded and culti!ated regions o 2urope and -sia only '(4 hectare :6(& acres; and '(& hectare :'(4 acre; were needed, respecti!ely( During the past century, the amount o land needed per additional child has been dropping in all areas o

2urope and 3orth -merica experiencing the astest decreases( /oth crossed the .+ero threshold. in the past meaning that no additional land is needed to support additional children and that land re1uirements will continue to decrease in the uture( *ne can postulate that the pattern o returning land to nature will continue to spread throughout the world, e!entually stemming and then re!ersing the current onslaught on the great rain orests( Time is critical i !ast tracts are to be sa!ed rom being laid bare, and success will largely depend on how rapidly economic opportunities expand or those now trapped in subsistence and rontier arming( ,n concept, the
potential or returning land to nature is enormous( Cuturist and scholar >esse -usubel o the Gocke eller #ni!ersity calculates that i armers could li t a!erage grain yields around the world "ust to the le!el o today%s a!erage #($( corn grower, one@hal o current global cropland@@an area the si+e o the -ma+on basin@@could be spared( , agriculture is a leading indicator, then the continuous dri!e to produce more rom less will pre!ail in other parts o the economy Certainly

with shrinking agricultural land re1uirements, water distribution and use around the world can be greatly altered, since nearly two@thirds o water now goes or irrigation( *!erall, the technologies o the uture will, in the words o -usubel, be .cleaner, leaner, lighter, and

drier.@@that is, more e icient and less waste ul o materials and water( They will be much more tightly integrated through microprocessor@based control and will there ore use human and natural resources much more e iciently and producti!ely( 2nergy intensity, land intensity, and water intensity :and, to a lesser extent, materials intensity; or both manu acturing and agriculture are already heading downward( *nly in agriculture are they alling ast enough to o set the surge in population, but, optimistically, ad!ances in science and technology should accelerate the downward trends in other sectors, helping to decouple economic de!elopment rom en!ironmental impact in the coming century( *ne positi!e sign is the act that recycling rates in 3orth -merica are now approaching I4U or steel, lead, and copper and E'U or aluminum and paper( - second sign is that economic output is shi ting away rom resource@intensi!e products toward knowledge@based, immaterial goods and ser!ices( -s a result, although the #($( gross domestic product :AD8; increased &''@ old :in real dollars; in the twentieth century, the physical weight o our annual output remains the same as it was in 6=''( , anything, this trend will be accelerating( -s De!in Delly, the editor o )ired maga+ine, noted, .The creations most in demand rom the #nited $tates [as exports] ha!e lost 4'U o their physical weight per dollar o !alue in only six years(((( )ithin a generation, two at most, the number o people working in honest@to@goodness manu acturing "obs will be no more than the number o armers on the land@@less than a ew percent( Car more than we reali+e, the network economy is pulling us all in(.

2!en pollution shows clear signs o being decoupled rom population and economic growth(

2conomist 8aul 8ortney notes that, with the exception o greenhouse gases, .in the *2CD [*rgani+ation or 2conomic Cooperation and De!elopment] countries, the a!orable experience [with pollution control] has been a triumph o technology That is, the ratio o pollution per unit o AD8 has allen ast enough in the de!eloped world to o set the increase in both AD8 per capita and the growing number o %capitas% themsel!es(. The ourth opportunity or science and technology stems rom their enormous potential to unlock resources not now a!ailable, to reduce human limitations, to create new options or policymakers and businesspeople alike, and to gi!e us new le!els o insight into uture challenges( Technically resources ha!e little !alue i we cannot unlock them or practical use( )ith technology, we are able to bring dormant resources to li e( Cor example, it was only with the de!elopment o an electrolytic process late in the nineteenth century that aluminum@@the most abundant metal on earth@@became commercially a!ailable and use ul( Chemistry unlocked hydrocarbons( -nd engineering allowed us to extract and put to di!erse use untapped petroleum and gas ields( *!er the course o history, technology has made the inaccessible accessible, and resource depletion has been more o a catalyst or change than a longstanding problem( Technology pro!ides us with last@ditch methods :what economists would call substitutions; that allow us to circum!ent or leap rog o!er crises o our own making( -gricultural technology sol!ed the ood crisis o the irst hal o the nineteenth century( The 2nglish .steam crisis. o the 6MI's, triggered by the rapid rise o coal@burning steam engines and locomoti!es, was a!erted by mechani+ed mining and the disco!ery and use o petroleum( The #($( .timber crisis. that Teddy Goose!elt publicly worried about was circum!ented by the use o chemicals that enabled a billion or so railroad ties to last or decades instead o years( The great .manure crisis. o the same era was sol!ed by the automobile, which in a ew decades replaced some &4 million horses and reed up 7' million hectares :6'' million acres; o armland, not to mention impro!ing the sanitation and smell o inner cities( *il disco!eries in Texas and then in the <iddle 2ast pushed the pending oil crisis o the 6=&'s into the uture( -nd the energy crisis o the 6=7's stimulated the de!elopment o new sensing and drilling technology, sparked the ad!ance o non@@ ossil uel alternati!es, and deepened the penetration o electricity with its uel lexibility into the global economy Thanks to underground imaging technology, today%s known gas resources are an order o magnitude greater than the resources known &' years ago, and new reser!es continue to be disco!ered( Technology has also greatly extended human limits( ,t has gi!en each o us a producti!e capability greater than that o 64' workers in 6M'', or example, and has con!eniently put the power o hundreds o horses in our garages( ,n recent

/ut global sustainability is not ine!itable( ,n spite o the tremendous promise that technology holds or a sustainable uture, there is the potential or all o this to back ire be ore the "ob can be done( There are disturbing indications that people sometimes turn in ear and anger on technologies, industries, and institutions that openly oster an e!er@ aster pace o change( The current opposition to nuclear power genetically altered [/arker continued] ood, the globali+ation o the economy and the spread o
decades, it has extended our !oice and our reach, allowing us to easily send our words, ideas, images, and money around the world at the speed o light( -merican culture should gi!e us pause( Technology has always presented a two@edged sword, ser!ing as both cause and e ect, sol!ing one problem while creating another that was unintended and o ten un oreseen( )e sol!ed the manure crisis, but automoti!e smog, congestion, and urban sprawl took its place( )e cleaned and trans ormed the cities with all@electric buildings rising thousands o eet into the sky( /ut while urban pollution was thereby dramatically reduced, a portion o the pollution was shi ted to someone else%s sky( /reaking limits

.Limits to growth. was a popular theme in the 6=7's, and a best@selling book o that name predicted dire conse1uences or the human race by the end o the century( ,n act, we ha!e done much better than those predictions, largely because o a actor the book missed@@the potential o new technology to break limits( Gepeatedly, human societies ha!e approached seemingly insurmountable barriers only to ind the means and tools to break through( This ability has now become a source o optimism, an article o aith, in many parts o the world( Today%s percei!ed limits, howe!er, look and eel di erent( They are global in nature, multicultural, and larger in scale and complexity than e!er be ore( 3early & billion people in the world are without ade1uate sanitation, and nearly as many are without access to clean drinking water( -,D$ is spreading rapidly in the regions o the world least able to ight it( -tmospheric concentrations o greenhouse gases are more than E'U greater than preindustrial le!els and are climbing steadily( 8etroleum reser!es, expected to be tapped by o!er a billion automobiles worldwide by &'64, may last only another 4'@6'' years( -nd without care ul preser!ation e orts, the biodi!ersity o the planet could become as threatened in this coming century as it was at the end o the last ice age, when more than 7'U o the species o large mammals and other !ertebrates in 3orth -merica disappeared :along with &=U in 2urope and MIU in -ustralia;( -ll these percei!ed limits re1uire inno!ation o a scope and intensity surpassing humankind%s current commitment(

Free Trade Good--Wake Forest 2010-11 33/72

Free Trade Good ,-t 1eve)op.ent


Free trade is ke/ to deve)op.ent e-tend =i))er trade is the "iggest !ontri"(tor to internationa) deve)op.ent "/ en!o(raging e!ono.i! growth and sta"i)it/ the i.pa!t is e-tin!tion o(r 4arker eviden!e indi!ates that deve)op.ent is !riti!a) to !reating new te!hno)ogies and so)(tions that wi)) "e !apa")e o0 !on0ronting e.erging and !onverging !atastrophes in the wor)d$ s(!h as A21 $ :eak 5i)$ G)o"a) War.ing$ and 4iodiversit/ And$ .ore eviden!e 0ree trade is ne!essar/ 0or wea)th distri"(tion and deve)op.ent Chen$ 2000 [>im, 8ro essor o Law at the #ni!ersity o <innesota, O8ax <ercatoria0 Alobali+ation as a $econd Chance at P8eace or our Time9 3o!ember5December, Fordham International aw !ournal, Lexis] global wealth has expanded ten old, thanks largely to technological ad!ances and the erosion o barriers to trade( The world economic order, simply put, is li ting people out o po!erty( -ccording to the )orld /ank, the percentage o
Dramatic impro!ements in wel are at e!ery wealth and income [Y&7I] le!el( 170 $ince 6M&'
171

the world%s population li!ing in extreme po!erty ell rom &M(E to &E(7U between 6=M7 and 6==M( 172 :The )orld /ank de ines extreme and absolute po!erty according to .re erence lines set at N 6 and N & per day. in 6==E terms, ad"usted or .the relati!e purchasing power o currencies across countries(.; 173 - more optimistic study has concluded that
17+

.the share o the world%s population earning less than #$N & per day shrank by more than hal . between 6=M' and 6==', . rom E7 to 6I(I percent(. ,n concrete terms, .economic growth associated with globali+ation . o!er the course o that decade helped li t 6(7 billion people out o absolute po!erty( )hate!er its precise magnitude, this impro!ement in global wel are has taken place because o , not in spite o , lourishing world trade(
178 176

And$ .ore eviden!e Free trade en!o(rages i.prove.ent and e-pansion o0 in0rastr(!t(re ,iras$ %+ [-na ,sabel, $enior 8olicy -nalyst at the ?eritage Coundation, O)hy -merica 3eeds to $upport Cree Trade http055www(heritage(org5Gesearch5TradeandCoreign-id5bg67I6(c m] Cree trade also promotes the impro!ement and expansion o in rastructure ( The construction o ports, where ships and airplanes can arri!e and sa ely unload and load merchandise, must expand to accommodate ree trade( ?angars and other types o barns located at ports o er the opportunity to store merchandise temporarily( -t the same time, ree trade osters the construction and preser!ation o roads or trucks and auto mobiles to transport merchandise sa ely to its inal destination(

Free Trade Good--Wake Forest 2010-11 3+/72

Free Trade Good--Wake Forest 2010-11 38/72

Free Trade Good Dege


Free trade is ke/ to &' ' hege.on/ 531ris!o)) and Fit>gera)d$ %2 [Dr( Aerald 8( and $ara >(, Cormer Director o the Center or ,nternational Trade and 2conomics at the ?eritage Coundation and 8olicy -nalyst at the Center or ,nternational Trade and 2conomics at the ?eritage Coundation, OTrade 8romotes 8rosperity and $ecurity, December 6M, http055www(heritage(org5Gesearch5TradeandCoreign-id5/A6I67(c m]
,t is itting that economic reedom be included as part o the national security strategy (

- strong economy undergirds a strong national de ense, and the strong #($( economy is one source o the military strength o the #nited $tates( The national security strategy also argues, howe!er, that the economic strength o other riendly countries will enhance #($( security( 2conomic reedom sustains economic growth and wealth creation( Cree markets oster the spirit o entrepreneurship and inno!ation that creates new products and "obs( This creati!e economic process in turn generates higher incomes, sa!ings and wealth creation, and economic de!elopment in nations( #(!)ear war Eagan 7 [Gobert, $enior -ssociate at the Carnegie 2ndowment or ,nternational 8eace, O2nd o Dreams, Geturn o ?istory 8olicy Ge!iew http055www(hoo!er(org5publications5policyre!iew5M44&46&(htmlZn6'] Cinally, there is the #nited $tates itsel ( -s a matter o national policy stretching back across numerous administrations, Democratic and Gepublican, liberal and conser!ati!e, -mericans ha!e insisted on preser!ing regional predominance in 2ast -siaF the <iddle 2astF the )estern ?emisphereF until recently, 2uropeF and now, increasingly, Central -sia( This was its goal a ter the $econd )orld )ar, and since the end o the Cold )ar, beginning with the irst /ush administration and continuing through the Clinton years, the #nited $tates did not retract but expanded its in luence eastward across 2urope and into the <iddle 2ast, Central -sia, and the Caucasus( 2!en as it maintains its position as the predominant global power, it is also engaged in hegemonic competitions in these regions with China in 2ast and Central -sia, with ,ran in the <iddle 2ast and Central -sia, and with Gussia in 2astern 2urope, Central -sia, and the Caucasus( The #nited $tates, too, is more o a traditional than a postmodern power, and though -mericans are loath to acknowledge it, they generally pre er their global place as O3o( 6 and are e1ually loath to relin1uish it( *nce ha!ing entered a region, whether or practical or idealistic reasons, they are remarkably slow to withdraw rom it until they belie!e they ha!e substantially trans ormed it in their own image( They pro ess indi erence to the world and claim they "ust want to be le t alone e!en as they seek daily to shape the beha!ior o billions o people around the globe( The "ostling or status and in luence among these ambitious nations and would@be nations is a second de ining eature o the new post@Cold )ar international system( 3ationalism in all its orms is back, i it e!er went away, and so is international competition or power, in luence, honor, and status( -merican predominance pre!ents these ri!alries rom intensi ying R its regional as well as its global predominance( )ere the #nited $tates to diminish its in luence in the regions where it is currently the strongest power, the other nations would settle disputes as great and lesser powers ha!e done in the past0 sometimes through diplomacy and accommodation but o ten through con rontation and wars o !arying scope, intensity, and destructi!eness( *ne no!el aspect o such a multipolar world is that most o these powers would possess nuclear weapons( That could make wars between them less likely, or it could simply make them more catastrophic( ,t is easy but also dangerous to underestimate the role the #nited $tates plays in pro!iding a measure o stability in the world e!en as it also disrupts stability( Cor instance, the #nited $tates is the dominant na!al power e!erywhere, such that other nations cannot compete with it e!en in their home waters( They either happily or grudgingly allow the #nited $tates 3a!y to be the guarantor o international waterways and trade routes, o international access to markets and raw materials such as oil( 2!en when the #nited $tates engages in a war, it is able to play its role as guardian o the waterways( ,n a more genuinely multipolar world, howe!er, it would not( 3ations would compete or na!al dominance at least in their own regions and possibly beyond( Con lict between nations would in!ol!e struggles on the oceans as well as on land(

Free Trade Good--Wake Forest 2010-11 36/72

Free Trade Good ,-t Dege.on/


Free trade is ke/ to hege.on/ e-tend 531ris!o)) and Fit>gera)d e!ono.i! 0reedo. pro.otes growth at ho.e and a"road that s(pports o(r .i)itar/ do.esti!a))/ and a)so gives (s a strategi! advantage with o(r a))ies the i.pa!t is e-tin!tion o(r Eagan eviden!e indi!ates that !o))apse o0 &' ' hege.on/ wo()d !reate power va!((.s a!ross the g)o"e that wo()d intensi0/ riva)ries$ !o))apse deterren!e$ and trigger !atastrophi! n(!)ear wars Free trade is ke/ to so0t power$ pro.oting & g)o"a) se!(rit/$ and de.o!rati>ation @indse/, director o the Center or Trade 8olicy $tudies, 03( [/rink, OThe Trade Cront0 Combating Terrorism with *pen <arkets, reetrade(org, -ugust 4, &''E 3o( &7, pgonline( -ccessed 7545'M http055www( reetrade(org5node5E=] ,n the immediate a termath o the terrorist attacks on 3ew Lork and )ashington, #($( Trade Gepresentati!e Gobert Toellick characteri+ed the administration9s trade agenda as an integral element o the Ocountero ensi!e against -merica9s terrorist ad!ersaries( O Trade is about more than economic e iciency, he wrote in a $eptember &', &''6, op@ed in the $ashington Post( O,t promotes the !alues at the heart o this protracted struggle( EI The /ush administration deser!es praise or drawing the connection between trade policy and combating terrorismRand then pursuing that connection with plans or CT-s with <orocco, /ahrain, and other <uslim countries( -nd as the administration recogni+es, trade policy9s role in bolstering national security goes beyond initiati!es with the <uslim world( ,n his pro!ocati!e $ashington Post oped, Toellick called or responding to the =566 attacks with a !igorous assertion o -merican economic leadership across the boardRin particular, through an aggressi!e policy o bilateral, regional, and multilateral market opening( ?ow does reducing trade barriers around the world make -merica sa erH Cirst, by helping the global spread o markets and liberal democracy( )here!er it exists and in whate!er orm, tyranny spawns war and con lict and terrorR and, conse1uently, threats to #($( global interests and national security( 8romoting promarket policies in other countries is one small but e ecti!e way or the #nited $tates to minimi+e those threats by ostering conditions more a!orable to human reedom( $econd, leading the world toward closer commercial ties can reduce threats to -merican interests and security by calming ears and resentment o -merican power( nation as o!erwhelmingly dominant as ours will ine!itably ace some le!el o reactionary oppositionRopposition that has now intensi ied a ter the recent exertions o #($( military might( -lthough some o the backlash may be una!oidable, it is clearly true that, all things being e1ual, we would be better o with ewer detractors around the world( -ccordingly, whene!er we can a!oid gi!ing gratuitous o ense or causing unintended harm, we would be wise to do so( $een in this light, #($( trade policy can ser!e as an oli!e branch to the world( /y opening our markets to the rest o the worldR whether unilaterally or in concert with other nationsRwe demonstrate that -merica9s interest lies , not in keeping other countries down, but in encouraging them to rise and prosper( o0t power ke/ to hege in0or.ation sharing$ tr(st$ and a))ian!es #/e + [>oseph $, O$o t 8ower and -merican Coreign 8olicy, ?ar!ard ,G pro (, !ol( 66=, no( &, p( &I6] ,n the global in ormation age, the attracti!eness o the #nited $tates will be crucial to our ability to achie!e the outcomes we want( Gather than ha!ing to put together pick@up coalitions o the willing or each new game, we will bene it i we are able to attract others into institutional alliances and eschew weak@ ening those we ha!e already created( 3-T*, or example, not only aggregates the capabilities o ad!anced nations, but its interminable committees, procedures, and exercises also allow these nations to train together and 1uickly be@ come interoperable when a crisis occurs( -s or alliances, i the #nited $tates is an attracti!e source o security and reassurance, other countries will set their expectations in directions that are conduci!e to our interests( ,nitially, or ex@ ample, the #($(@>apan security treaty was not !ery popular in >apan, but polls show that o!er the decades, it became more attracti!e to the >apanese public( *nce that happened, >apanese politicians began to build it into their approaches to oreign policy( The #nited $tates bene its when it is regarded as a constant and trusted source o attraction so that other countries are not obliged continually to re@examine their options in an atmosphere o uncertain coalitions ( ,n the >apan case, broad acceptance o the #nited $tates by the >apanese public .contributed to the maintenance o #$ hegemony. and .ser!ed as politi cal constraints compelling the ruling elites to continue cooperation with the #nited $tates(%.[ 8opularity can contribute to stability( Cinally, as the G-3D Corporation%s >ohn -r1uila and Da!id Gon eldt ar@ gue, power in an in ormation age will come not only rom strong de enses but also rom strong sharing ( - traditional realpolitik mind@set makes it di icult to share with others( /ut in an in ormation age, such sharing not only enhances the ability o others to cooperate with us but also increases their inclination to do so(%% -s we share intelligence and capabilities with others, we de!elop common outlooks and approaches that impro!e our ability to deal with the new challenges( 8ower iows rom that attraction( Dismissing the importance o at@ traction as merely ephemeral popularity ignores key insights rom new theories o leadership as well as the new realities o the in ormation age( )e cannot a ord that(

Free Trade Good--Wake Forest 2010-11 37/72

Free Trade Good--Wake Forest 2010-11 37/72 Free trade !o.petition "rings e-tension o0 wo.en3s rights and rights 0or other oppressed gro(ps' #or"erg 2003 :>ohan, <(-( in ?istory o ,deas, $tockholm #ni!ersity, a ellow at the $wedish think tank Timbro, author o In De#ence o# -lo*al Ca/italism which won the $ir -ntony Cisher ,nternational <emorial -ward by the -tlas 2conomic Gesearch CoundationF .8oor <an%s ?ero0 Contro!ersial writer >ohan 3orberg champions globali+ation as the best hope or the de!eloping world,. Geason <aga+ine, December, http055www(reason(com5news5show5&M=IM(html; Alobali+ation has also helped extend rights to women that had long been con ined to men ( These include being able to go into business, get an education, inherit money, and so on( *ne reason or this is simple economics( ,n a globali+ed, competiti!e economy, women are a potential resource( They are able to ha!e new ideas, to produce, and to work ( , you discriminate against women \ or anyone else @@ you lose opportunities as a society or as an employer( Take the discussion that%s going on now in $audi
-rabia about whether women should be allowed to dri!e, which they can%t legally do now( )hile it%s unlikely the situation there will change anytime soon, it%s progress "ust to ha!e the discussion( 8eople are saying it%s extremely costly to hire dri!ers, o ten rom other countries, to dri!e women around( Lou can see how basic economics, basic capitalism, creates the

Free Trade Good :atriar!h/

incenti!e to gi!e women more rights( - second reason is that all the goods, ideas, and people that cross borders under globali+ation allow people to see more alternati!es, to see other ways o li!ing( )hen women and other oppressed groups in poor countries see how their counterparts in )estern societies are treated, they begin to ha!e ideas about how they want to be treated( Alobali+ation is a great in luence because people
e!erywhere get all sorts o new ideas( They say, .)ow, things can be !ery di erent than ,%m used to(.

,-tin!tion Warren and Cad/$ :ro0essors o0 :hi)osoph/ at =a!a)ester Co))ege F Da.)ine &niversit/$ 1<<+ :Daren and Duane, ?ypatia, $pring, 8ro1uest; The notion o patriarchy as a socially dys unctional system enables eminist philosophers to show why conceptual connections are so important and how conceptual connections are linked to the !ariety
o other sorts o woman@nature@peace connections( ,n addition, the claim that patriarchy is a dys unctional social system locates what eco eminists see as !arious .dys unctionalities. o patriarchy@the empirical in!isibility o what women do, sexist@warist@ language, !iolence toward women, other cultures, and nature@in a historical, socioeconomic, cultural, and political context(:6'; To say that patriarchy is a dys unctional system is to say that the undamental belie s, !alues, attitudes and assumptions :conceptual ramework; o patriarchy gi!e rise to impaired thinking, beha!iors, and institutions

which are unhealthy or humans, especially women, and the planet( The

ollowing diagram represents the eatures o patriarchy as a dys unctional social system0 8atriarchy, as an #p@Down system o power@o!er relationships o domination o women by men, is conceptually grounded in a aulty patriarchal belie and !alue system, :a;, according to which :some; men are rational and women are not rational, or at least not rational in the more highly !alued way :some; men are rationalF reason and mind are more important than emotion and bodyF that humans are "usti ied in using emale nature simply to satis y human consumpti!e needs( The discussion abo!e o patriarchal conceptual rameworks describes the characteristics o this aulty belie system( 8atriarchal conceptual rameworks sanction, maintain, and perpetuate impaired thinking, :b;0 Cor example, that men can control women%s inner li!es, that it is men%s role to determine women%s choices, that human superiority o!er nature "usti ies human exploitation o nature, that women are closer to nature than men because they are less rational, more emotional, and respond in more instinctual ways than :dominant; men( The discussions abo!e at :7; and :4;, are examples o the linguistic and psychological orms such impaired thinking can take( *perationali+ed, the e!idence o

patriarchy as a dys unctional system is ound in the beha!iors to which it gi!es rise, :c;, and the unmanageability, :d;, which results( Cor example, in the #nited $tates, current estimates are that one out o e!ery three or our women will be raped by someone she knowsF globally, rape, sexual harassment, spouse@beating, and sado@masochistic ography are examples o beha!iors practiced, sanctioned, or tolerated within patriarchy( ,n the realm o en!ironmentally destructi!e beha!iors, strip@mining, actory arming, and pollution o the air, water, and soil are instances o beha!iors maintained and sanctioned within patriarchy( They, too, rest on the aulty belie s that it is okay to .rape the earth,. that it is .man%s Aod@ gi!en right. to ha!e dominion :that is, domination; o!er the earth, that nature has only instrumental !alue, that en!ironmental destruction is the acceptable price we pay or .progress(. -nd the presumption o warism, that war is a natural, righteous, and ordinary way to impose dominion on a people or nation, goes hand in hand with patriarchy and leads to dys unctional beha!iors o nations and ultimately to international unmanageability ( <uch o the current .unmanageability. o contemporary li e in patriarchal societies, :d;, is then !iewed as a conse1uence o a patriarchal preoccupation with acti!ities, e!ents, and experiences that re lect historically male@gender@identi ied belie s,] !alues, attitudes, and assumptions( ,ncluded among these real@li e conse1uences are precisely those concerns with nuclear proli eration, war, en!ironmental destruction, and !iolence toward women , which many eminists see as the logical outgrowth o patriarchal thinking( ,n act, it is o ten only through obser!ing these dys unctional beha!iors@@the symptoms o dys unctionality@@that one can truly see that and how patriarchy ser!es to maintain and perpetuate them( )hen patriarchy is understood as a dys unctional system, this .unmanageability. can be seen or what it is@@as a predictable and thus logical conse1uence o patriarchy(:66; The theme that global en!ironmental crises, war, and !iolence generally are predictable and logical conse1uences o sexism and patriarchal culture is per!asi!e in eco eminist literature :see Gussell 6=M=, &;( 2co eminist Charlene $pretnak, or instance, argues that .a militarism and war are are continual eatures o a patriarchal society because they re lect and instill patriarchal !alues and ul ill needs o such a system( -cknowledging the context o patriarchal conceptuali+ations that eed militarism is a irst step toward reducing their impact and preser!ing li e on 2arth. :$pretnak 6=M=, 47;( $tated in terms o the oregoing model o patriarchy as a dys unctional social system, the claims by $pretnak and other eminists take on a clearer meaning0 8atriarchal conceptual rameworks legitimate impaired thinking :about women, national and regional con lict, the en!ironment; which is mani ested in beha!iors which, i continued, will make li e on earth di icult, i not impossible( ,t is a stark message, but it is plausible( ,ts plausibility lies in understanding the conceptual roots o !arious woman@nature@peace connections in regional, national, and global contexts(

Free Trade Good--Wake Forest 2010-11 3</72

Free Trade Good--Wake Forest 2010-11 +0/72 Trade so)ves pro)i0eration interdependen!e /eckman 8oli $ci ?obart and )illiam $mith 9'' [8eter, The 3uclear 8redicament0 3uclear )eapons in the Twenty@Cirst Century, 8( &'=@&6'] ,n contrast, liberals assume that the Cold )ar world has been replaced by an entirely new en!ironment in which the mutual threat has disappeared, not only between the two superpowers, but also between the two blocs( The potential or greater political cooperation has reemerged along with a renewed interest in mutual security arrangements that protect the territorial integrity and so!ereignty o all parties( 8erhaps most important, anti@ Communism and anti@)esternism can no longer be used e ecti!ely to mobili+e !oters or signi icant groups in the two societies( )ith the down all o both authoritarian go!ernments and communist economic systems, the main source o con lict is being remo!ed and we are there ore "usti ied in being optimistic about the world9s uture( Curthermore, the increased importance o social wel are and the satis action o consumer demands in the capitalist world render war increasingly counterproducti!e to nations9 long@term interests, as does increasing economic interdependence and the internationali+ation o corporations( Thus the democrati+ation o 2astern 2urope and o Gussia reduces the threat o war and should usher in an age o peace and mutual cooperation not unlike the relations that exist between the #nited $tates, Canada, and Areat /ritain( There will be a growing reali+ation o the expanding economic bene its o cooperation, as ree trade increases( <ilitary power will no longer be seen as the most important measure o power in world politics( )here military power remains important, con!entional military orce will be seen as more use ul than nuclear orce, in part be@cause military challenges will more o ten be internal threats to national unity rather than external threats to national security( -s a result, a liberal would likely argue that the realist ear o increased proli eration is based on an outmoded !iew o world politics( )e are mo!ing, the liberal might say, away rom Cold )ar beha!ior, perhaps e!en away rom the traditional beha!ior o nation@states, as the growing integration o the 2uropean #nion attests( There is no reason to assume that nations will blindly ollow the practices o the past, especially as the nuclear weapons states ha!e made some mo!ement toward the elimination o their own nuclear arsenals( Democratic go!ernments, reed rom a ear o external threat, may ind it more di icult to persuade themsel!es and their citi+ens to undertake costly nuclear weapons programs, especially where popular antinuclear mo!ements are strong, as they are in Aermany and >apan( ,ndeed, democratic go!ernments may be more willing to erect internal barriers to proli eration( -s we saw earlier, the trend to@ ward democracy worked against proli eration in the cases o /ra+il and -rgentina( :ro)i0eration wi)) "e rapid$ (nsta")e$ and irrationa)$ and wi)) !a(se e-tin!tion &tgo00$ 1ep(t/ 1ire!tor at 2nstit(te 0or 1e0ense Ana)/sis$ 2 [Bictor, Deputy Director o the $trategy, Corces, and Gesources Di!ision o the ,nstitute or De ense -nalysis, $ur!i!al, O8roli eration, <issile De ence and -merican -mbitions &''& p( M7@=']
Curther, the large number o states that became capable o building nuclear weapons o!er the years, but chose not to, can be reasonably well explained by the act that most were ormally allied with either the #nited $tates or the $o!iet #nion( /oth these superpowers had strong nuclear orces and put great pressure on their allies not to build nuclear weapons( $ince the Cold )ar, the #$ has retained all its allies( ,n addition, 3-T* has extended its protection to some o the pre!ious allies o the $o!iet #nion and plans on taking in more( 3uclear proli eration by ,ndia and 8akistan, and proli eration programmes by 3orth Dorea, ,ran and ,ra1, all in!ol!e states in the opposite situation0 all "udged that they aced serious military opposition and had little prospect o establishing a reliable supporting alliance with a suitably strong, nuclear@armed state( )hat would await the world i strong protectors, especially the #nited $tates, were [was] no longer seen as willing to protect states rom nuclear@backed aggressionH -t least a ew additional states would begin to build their own nuclear weapons and the means to deli!er
them to distant targets, and these

Free Trade Good :ro)i0eration

capable o building nuclear weapons and long@range missiles( <any, perhaps most, o the world9s states are becoming su iciently wealthy, and the technology or building nuclear orces continues to impro!e and spread( Cinally, it seems highly likely that at some point, halting proli eration will come to be seen as a lost cause and the restraints on it will disappear( *nce that happens, the transition to a high)/ pro)i0erated wor)d wo()d probably "e ver/ rapid(
)hile some regions might be able to hold the line or a time, the

initiati!es would spur increasing numbers o the world9s capable states to ollow suit( Gestraint would seem e!er less necessary and e!er more dangerous( <eanwhile, more states are becoming

threats posed by wild ire proli eration in most other areas could create pressures that would inally o!ercome all restraint( <any readers are probably willing to
accept that nuclear proli eration is such a gra!e threat to world peace that e!ery e ort should be made to a!oid it( ?owe!er, e!ery e ort has not been made in the past, and we are talking about much more substantial e orts now( Cor new and substantially more burdensome e orts to be made to slow or stop nuclear proli eration, it needs to be established that the highly proli erated nuclear world that would sooner or later e!ol!e without such e orts is not going to be acceptable( -nd, or many reasons, it is not( Cirst, the dynamics o getting to a highly proli erated world could be !ery dangerous( 8roli erating states will eel great pressures to obtain nuclear weapons and deli!ery systems be ore any potential opponent does ( Those who

succeed in outracing an opponent may consider preempti!e nuclear war be ore the opponent becomes capable o nuclear retaliation( Those who lag behind might try to preempt their opponent9s nuclear programme or de eat the

opponent using con!entional orces( -nd those who eel threatened but are incapable o building nuclear weapons may still be able to "oin in this arms race by building other types o weapons o mass destruction, such as biological weapons( $econd, as the world approaches complete proli eration, the ha+ards posed by nuclear weapons today will be magni ied many times o!er( Ci ty or more nations capable o launching nuclear weapons means that the risk o nuclear accidents that could cause serious damage not only to their own populations and en!ironments, but those o others, is hugely increased( The chances o such weapons ailing into the hands o renegade military units or terrorists is ar greater, as is the number o nations carrying out ha+ardous manu acturing and storage acti!ities( )orse still, in a highly proli erated world there would be more re1uent opportunities or the use o nuclear weapons( -nd more re1uent opportunities means shorter expected times between con licts in which nuclear weapons get used, unless the probability o use at any opportunity is actually +ero( To be sure, some theorists on nuclear deterrence appear to think that in any con rontation between two states known to ha!e reliable nuclear capabilities, the probability o nuclear weapons being used is +ero(9 These theorists think that such states will be so ear ul o escalation to nuclear war that they would always a!oid or terminate con rontations between them, short o e!en con!entional war( They belie!e this to be true e!en i the two states ha!e di erent cultures or leaders with !ery eccentric personalities( ?istory and human nature, howe!er, suggest that they are almost surely wrong( ?istory includes instances in which states Pknown to possess nuclear weapons did engage in direct con!entional con lict( China and Gussia ought battles along their common border e!en a ter both had nuclear weapons( <oreo!er, logic suggests that i states with nuclear weapons always a!oided con lict with one another, surely states without nuclear weapons would a!oid con lict with states that had them( -gain, history pro!ides counter@examples 2gypt attacked ,srael in 6=7E e!en though it saw ,srael as a nuclear power at the time( -rgentina in!aded the Calkland ,slands and ought /ritain9s e orts to take them back, e!en though /ritain had nuclear weapons( Those who claim that two states with reliable nuclear capabilities to de!astate each other will not engage in con!entional con lict risking nuclear war also assume that any leader rom any culture would not choose suicide or his nation( /ut history pro!ides unhappy examples o states whose leaders were ready to choose suicide or themsel!es and their ellow citi+ens( ?itler tried to impose a P!ictory or destruction99 policy on his people as 3a+i Aermany was going down to de eat( -nd >apan9s war minister, during debates on how to respond to the -merican atomic bombing, suggested P)ould it not be wondrous or the whole nation to be destroyed like a beauti ul lowerH , leaders are willing to engage in con lict with nuclear@armed nations, use o nuclear weapons in any particular instance may not be likely, but its probability would still be dangerously signi icant( ,n particular, human nature suggests that the threat o retaliation with nuclear weapons is not a reliable guarantee against a disastrous irst use o these weapons( )hile national leaders and their ad!isors e!erywhere are usually talented and experienced people, e!en their most important decisions cannot be counted on to be the product o well@in ormed and thorough assessments o all options rom all rele!ant points o !iew( This is especially so when the stakes are so large as to de y assessment and there are substantial pressures to act 1uickly, as could be expected in intense and ast@mo!ing crises between nuclear@armed states( ,nstead, like other human beings, national leaders can be seduced by wish ul thinking( They can misinterpret the words or actions o opposing leaders( Their ad!isors may produce answers that they think the leader wants to hear, or coalesce around what they know is an in erior decision because the group urgently needs the con idence or the sharing o responsibility that results rom settling on something( <oreo!er, leaders may not recogni+e clearly where their personal or party interests di!erge rom those o their citi+ens( #nder great stress, human beings can lose their ability to think care ully( They can re use to belie!e that the worst could really happen, o!ersimpli y the problem at hand, think in terms o simplistic analogies and play hunches( The intuiti!e rules or how indi!iduals should respond to insults or signs o weakness in an opponent may too readily suggest a rash course o action( -nger, ear, greed, ambition and pride can all lead to bad decisions( The desire or a decisi!e solution to the problem at hand may lead to an unnecessarily extreme course o action( )e can almost hear the kinds o words that could low rom discussions in nuclear crises or war( PThese people are not willing to die or this interest9( P3o sane person would actually use such weapons9( P8erhaps the opponent will back down i we show him we mean business by demonstrating a willingness to use nuclear weapons9( P, , don9t hit them back really hard, , am going to be dri!en rom o ice, i not killed9( )hether right or wrong, in the stress ul atmosphere o a nuclear crisis or war, such words rom others, or silently rom within, might resonate too readily with a harried leader( Thus, both history and human nature suggest that nuclear deterrence can be expected to ail rom time to time, and we are ortunate it has not happened yet( /ut the threat o nuclear war is not "ust a matter o a ew weapons being used( ,t could get much worse( *nce a con lict reaches the point where nuclear weapons are employed, the stresses elt by the leaderships would rise enormously( These stresses can be expected to urther degrade their decision@making( The pressures to orce the enemy to stop ighting or to surrender could argue or more orce ul and decisi!e military action, which might be the right thing to do in the circumstances, but maybe not( -nd the horrors o the carnage already su ered may be seen as "usti ication or !isiting the most de!astating punishment possible on the enemy(9 -gain, history demonstrates how intense con lict can lead the combatants to escalate !iolence to the maximum possible le!els( ,n the $econd )orld )ar, early promises not to bomb cities soon ga!e way to essentially indiscriminate bombing o ci!ilians( The war between ,ran and ,ra1 during the 6=M's led to the use o chemical weapons on both sides and exchanges o missiles against each other9s cities( -nd more recently, !iolence in the <iddle 2ast escalated in a ew months rom rocks and small arms to hea!y weapons on one side, and rom police

2scalation o !iolence is also basic human nature( *nce the !iolence starts, retaliatory exchanges o !iolent acts can escalate to le!els unimagined by the participants
actions to air strikes and armoured attacks on the other(

be ore hand( ,ntense and blinding anger is a common response to ear or humiliation or abuse( -nd such anger can lead us to impose on our opponents whate!er le!els o !iolence are readily accessible( ,n sum,

widespread proli eration is likely to lead to an occasional shoot@out with n(!)ear weapons, and that such shoot@outs will ha!e a substantial probability o escalating to the .a-i.(. destr(!tion possi")e with the weapons at hand( #nless nuclear proli eration is stopped, we are headed toward a world that will mirror the -merican )ild )est o the late 6M''s( )ith most, i not all, nations wearing nuclear %six@shooters% on their hips, the world may e!en be a more polite place than it is today, but e!ery once in a while we will all gather on a hill to bury the bodies o dead cities or e!en whole nations(

Free Trade Good--Wake Forest 2010-11 +1/72

Free Trade Good--Wake Forest 2010-11 +2/72

Free Trade Good Terroris.


Free trade in!reases third wor)d prosperit/$ disa")ing terrorist re!r(it.ent Dassanien$ %7 [<ohamed, -ssistant 8ro essor o Law at Cairo #ni!ersity, O,nternational Law Cights Terrorism in the <uslim )orld0 - <iddle 2astern 8erspecti!e, $pring, Denver !ournal o# International aw and Policy]
Trade and in!estment barriers are per!asi!e, and exports other than oil remain puny((((,t is now clear that -mericans li!e in a dangerous world @ and that

the primary danger at present emanates rom the economic and political ailures o the <uslim world((( Those ailures breed the despair on which !iolent ,slamic extremism eedsF no comprehensi!e campaign against terrorism can lea!e them unaddressed ((( The national security dimension o trade policy is once again plainly !isible((( ,t%s true that scrapping protectionist policies, by itsel , will not guarantee economic re!itali+ation( /ut the act is that integration into the larger world economy has been central to e!ery de!eloping country success story o recent times ( 2xposing the economy to oreign competition and capital acts as a catalyst or more systemic re orms( -nd o!er the longer
term, such ar@ lung examples as Chile, <exico, Taiwan, and $outh Dorea demonstrate the interconnectedness o globali+ation, economic dynamism, and e!entual democrati+ation( <eanwhile,(((

the )est can do more to acilitate <uslim countries%

participation in global commerce((( 8resident /ush has made it amply clear that
will help to de eat the destroyers o the )orld Trade Center( 180

ighting terrorism is the o!erriding priority o his administration( To wage that ight with maximum e ecti!eness, he will need to con!ince Congress and the nation that promoting world trade

2stablishing ree trade in this area would increase "ob opportunities, economic growth, cut po!erty and enhance the rule o law in the <iddle 2astF de!elopment in the <iddle 2ast should be a ma"or component o #($( oreign poli cy( 2conomic de!elopment in the <iddle 2ast is the most e ecti!e means o maintaining peace and increasing normali+ation, thereby breaking the cycle o mistrust, !iolence, and instability that plagues the <iddle 2ast( - positi!e cycle o economic expansion would enhance the region%s political stability, which would [Y&7&] then oster economic growth by bolstering in!estor con idence( 2conomic
181

opportunities are enormous in the <iddle 2ast( 182 Curthermore, .the <iddle 2ast is situated in a strategic global position eaturing many dynamic trade and in!estment opportunities(. 183 ,t has been argued that political and economic stability can be created i the #($( and <iddle 2astern countries make certain conditions conduci!e to the ollowing economic measures0 18+ :6; ,ncreased oreign pri!ate in!estment :&; ,ncreased ree trade agreements between the #($( and <iddle 2astern countries(

Con!)(sive st(dies prove that$ a"sent intervention$ a n(!)ear terrorist atta!k )ike)/ "/ 2013 .ith !iting Congressiona) Co..ission on the :revention o0 Weapons o0 =ass 1estr(!tion :ro)i0eration and Terroris. 7 [Diane, O3uclear or /iological -ttack Likely by &'6E, Geport $ays, December &, &''M, eClux<edia] The study carried out by the Congress@backed Commission on the 8re!ention o )eapons o <ass Destruction 8roli eration and Terrorism said that the threat rom rogue states and nuclear smuggling rings is now higher than e!er and it9s still increasing( The main hot spot according to the panel is now 8akistan( This state became a !ery big concern because o its network o terror groups, its instability and its nuclear capabilities ( ,ran and 3orth Dorea are also on the black list o the panel( O)ere one to map terrorism and weapons o mass destruction today, all roads would intersect in 8akistan, the report, which was ordered by Congress last year, underlines( The panel said that terrorists will most likely carry out an attack using biological or nuclear weapons somewhere in the world in the next i!e years, o course, i the #nited $tates and its allies won9t do something about it( O-merica9s
margin o sa ety is shrinking, not growing, the panel concluded( The members o the commission, which included ormer $en( /ob Araham :Cla( D; and ormer Gep( >ames Talent, a <issouri Gepublican, urged #nited $tates9 8resident 2lect barrack *bama to take decisi!e action to reduce the risk o a de!astating attack( O )ithout greater urgency and decisi!e

action by the world community, it is more likely than not that a weapon o mass destruction will be used in a terrorist attack somewhere in the world by the end o &'6E , the commission9s report said( The sta o the panel conducted more than &I' inter!iews with go!ernment o icials and experts around the world to establish the current state o the problem o weapons o mass
destruction(

#(!)ear terroris. !a(ses e-tin!tion 4eres$ :ro0essor o0 :o)iti!a) !ien!e$ 77 [Louis Gene 8ro essor o 8olitical $cience at 8urdue #ni!ersity, OTerrorism and Alobal $ecurity, 6=M7, p( 7&@7E(] 3uclear terrorism could e!en spark a ull scale war between states( $uch a war could in!ol!e the entire spectrum o nuclear con lict possibilities, ranging rom a nuclear attack upon a non@ nuclear state to systemwide nuclear war( ?ow might such ar reaching conse1uences o nuclear terrorism come aboutH 8erhaps the most likely way would in!ol!e a terrorist nuclear assault against a state by terrorists hosted in another state( Cor example, consider the ollowing scenario0 2arly in the 6=='s, ,srael and its
-rab state neighbors inally stand ready to conclude a comprehensi!e, multilateral peace settlement( )ith a bilateral treaty between ,srael and 2gypt already many years old, only the interests o the 8alestinians, as de ined by the 8L*, seem to ha!e been le t out( *n the e!e o the proposed signing o the peace agreement, hal a do+en crude nuclear explosi!es in the one kiloton range detonate in as many ,sraeli cities( 8ublic grie in ,srael o!er the many thousand dead and maimed is matched only by the outcry or re!enge( ,n response to the public mood, the go!ernment o ,srael initiates selected strikes against terrorist strongholds in Lebanon, whereupon Lebanese $hiite orces and $yria retaliate against ,srael( /e ore long, the entire region is abla+e, con lict has escalated to nuclear orms, and all countries o the area ha!e su ered unprecedented destruction( * course, such a scenario is raught with the makings o e!en wider destruction( ?ow would the #nited $tates react to the situation in the <iddle 2astH )hat would be the so!iet responseH ,t is certainly concei!able that a chain reaction o

interstate nuclear con lict could ensue, one that would ultimately in!ol!e the superpowers or e!en e!ery nuclear weapon state on the planet(

Free Trade Good--Wake Forest 2010-11 +3/72

Free Trade Good ,-t Terroris.


Free trade so)ves terroris. e-tend Dassanien trade integrates deve)oping !o(ntries into the g)o"a) e!ono./ in a !onstr(!tive .anner that !ata)/>es positive re0or.s that drains the swa.p o0 terrorist ideo)ogies and so)ves it at the so(r!e the i.pa!t is n(!)ear war o(r .ith eviden!e indi!ates that a n(!)ear terrorist atta!k is inevita")e "/ 2013 o(r 4eres eviden!e sa/s that a terrorist atta!k wo()d !reate .assive po)iti!a) press(re 0or n(!)ear reta)iation that wo()d i..ediate)/ es!a)ate And$ .ore eviden!e 0ree trade so)ves terroris. and pro.otes pea!e antiago Ti.es$ %1 [*ctober 7]
The attack on the )orld Trade center was meant to decrease con idence and cause insecurity and panic( The ailure o this act o terrorism largely depends on our ability to return con idence to the world economy, which it needs to continue unctioning smoothly( *ur "obs and li!elihood depend on more and better export markets( This will also allow us to better the 1uality o he and reduce po!erty( This is why the go!ernment is intensi ying its e ort to reach a ree trade agreement with the #($( and the 2#( ,n an article in the )ashington 8ost, #($( Commerce $ecretary

Toellick urged the world to ight terrorism with ree trade( The /ush administration9s trade agenda has well regulated international trade is essential to preser!e peace between di erent cultures and create links between araway nations( The #($( Congress appro!ed a ree trade agreement with >ordan, the irst e!er with an -rab country( Trade agreements with Bietnam and Chinas entry into the )orld Trade *rgani+ation :)T*; are clear example that trade builds bridges e!en between countries that were ormerly ad!ersaries( The principal method to combat terrorism is not to play the same game as the terrorists( <ilitary responses are not enough( -n integrated long@term ocus is more e ecti!e( better response to terrorism includes political( Diplomatic, economic and technological measures within a network o countries and institutions that are committed to democracy, ree trade and international cooperation ( The #($( needs a multilateral system and international cooperation( This will re1uire concrete signs that it is committed to ree trade and an open and dynamic world economy( These signs are coming to light( Despite
Gobert garnered much support a ter the attacks, since

the terrorist attacks, the /ush administration decided to continue the se!enth round o ree trade negotiations with Chile( - political consensus is emerging in the #($( that has allowed /ush to negotiate the ree trade agreement with >ordan in "ust a ew days, as well as pay the debt owed to the #nited 3ations( ,n addition, i is highly likely that Congress will soon grant /ush P ast track9 powers in negotiating ree trade agreements(

Free .arkets pro.ote prosperit/ and so)ves terroris. 531ris!o)) and Fit>gera)d$ %2 [Dr( Aerald 8( and $ara >(, Cormer Director o the Center or ,nternational Trade and 2conomics at the ?eritage Coundation and 8olicy -nalyst at the Center or ,nternational Trade and 2conomics at the ?eritage Coundation, OTrade 8romotes 8rosperity and $ecurity, December 6M, http055www(heritage(org5Gesearch5TradeandCoreign-id5/A6I67(c m] Cree markets o er the option o prosperity o!er po!erty and pro!ide opportunities or the world%s poorest to ad!ance( 3one bene it more rom an open trading en!ironment than the citi+ens o de!eloping countries( -s noted by 3ew Tealand%s <ike <oore, the ormer head o )orld Trade *rgani+ation, .Cree trade is the best hope o the worst o (.16 ,t is wrong to attribute terrorism to po!erty( , po!erty itsel caused terrorism, .sub@$aharan - rica would be
the greatest exporter( Ci teen o nineteen $eptember 66 hi"ackers, moreo!er, came rom oil rich and relati!ely prosperous $audi -rabia, while two more were middle class boys rom Lebanon and 2gypt(.17

-t the same time, howe!er, the conditions that perpetuate po!erty also generate terrorism0 .Lack o economic reedom uels the resentment, desperation, and hopelessness that terrorist organi+ations utili+e to recruit new members and muster support or their acti!ities(.18

Free Trade Good--Wake Forest 2010-11 ++/72

Free Trade Good--Wake Forest 2010-11 +8/72

Free Trade Good War/#(!)ear War


Free trade so)ves n(!)ear war Cop)e/ #ews ervi!e$ 3<< [December 6]
Cor decades, many children in -merica and other countries went to bed earing annihilation by nuclear war( The specter o nuclear winter ree+ing the li e out o planet 2arth seemed !ery real( -cti!ists protesting the )orld Trade *rgani+ation%s meeting in $eattle apparently ha!e orgotten that

nations "oin together in groups like the )T* not "ust to urther their own prosperity, but also to orestall con lict with other nations( ,n a way, our planet has traded in the threat o a worldwide nuclear war or the bene it o cooperati!e global economics ( $ome $eattle
threat( The truth is that protesters clearly ancy themsel!es to be in the mold o nuclear disarmament or anti@Bietnam )ar protesters o decades past( /ut they%re not( They%re special@interest acti!ists, whether the cause is en!ironmental, labor or paranoia about global go!ernment( -ctually, most o the demonstrators in $eattle are !ery much unlike yesterday%s peace acti!ists, such as /eatle >ohn Lennon or philosopher /ertrand Gussell, the ather o the nuclear disarmament mo!ement, both o whom urged people and nations to work together rather than stri!e against each

would probably appro!e o 6E4 )T* nations sitting down peace ully to discuss economic issues that in the past might ha!e been settled by bullets and bom bs( -s long as nations are trading peace ully, and their economies are built on exports to other countries, they ha!e a ma"or disincenti!e to wage war( That%s why bringing China, a budding superpower, into the
other( These and other war protesters )T* is so important( -s exports to the #nited $tates and the rest o the world eed Chinese prosperity, and that prosperity increases demand or the goods we produce, the threat o hostility diminishes(

Free Trade Good--Wake Forest 2010-11 +6/72

Free Trade Good ,-t War


Free trade so)ves war e-tend Cop)e/ #ews ervi!e trade "inds !o(ntries in .(t(a) dependen!e that !reates a .aCor disin!entive 0or war and a)so !reates .e!hanis.s 0or pea!e0() disp(te sett)e.ents And$ their a(thors are wrong g)o"a)i>ation is the "est s/ste. 0or pea!e Chen$ 2000 [>im, 8ro essor o Law at the #ni!ersity o <innesota, O8ax <ercatoria0 Alobali+ation as a $econd Chance at P8eace or our Time9 3o!ember5December, Fordham International aw !ournal, Lexis] The antiglobali+ation mo!ement, to put it bluntly, is wrong( 2!en modest sensiti!ity to human wel are o!er time and
across contemporary space exposes the remarkable nature o the antiglobali+ation protests in 8rague( ,n the heart o a country and [Y&&'] a region that paid dearly when an isolationist )est chose .to go home and sleep 1uietly in [its] beds,. 16 a

group o sel @appointed acti!ists 1uite seriously tried to portray the rules and institutions o international economic relations as the greatest contemporary threat to human wel are and security ( /ut multinational corporations do not belong in the same category as -dol ?itler( 3or do the core institutions o international economic law , regardless o the extent to which they ha!e acilitated the rise o the global economy, deser!e the opprobrium that has hounded 3e!ille Chamberlain since the ailure o appeasement( - circumspect world, in the interest o peace, progress, and prosperity, should re"ect the normati!e claims o the antiglobali+ation mo!ement(
This 2ssay completes a scholarly cycle in which , ha!e de ended ree trade and international economic cooperation against charges that

The demolition o geographic and social barriers since the end o the Cold )ar has deli!ered not only material wealth but also physical tran1uility , political stability, and personal reedom to !ast portions o the world%s population( The path to peace lies today, as it did in 6=EM, not in a retreat to obsolete notions o local so!ereignty, but in a commitment to lawmaking on a global scale(
globali+ation will harm the en!ironment 17 and drain "obs rom the high@wage economies o western 2urope, >apan, and the #nited $tates(
17

And$ trade de!reases so!ia) press(re 0or war ,iras$ %+ [-na ,sabel, $enior 8olicy -nalyst at the ?eritage Coundation, O)hy -merica 3eeds to $upport Cree Trade http055www(heritage(org5Gesearch5TradeandCoreign-id5bg67I6(c m] Cree trade osters an enormous chain o economic acti!ity, the bene its o which culminate in a social desire to be at peace with neighboring and e!en araway nations with which trade is conducted or might be conducted in the uture( )hen indi!iduals see how bene icial it is to li!e in an economically ree societyF when they see how reedom allows them to impro!e their li!es and those o their amiliesF when they can create new businesses, engage in commerce, or work or a decent salary or wage, adding dignity to their li!es, they want peace to preser!e all these good things( /y contrast, when people li!e under economic oppression and are at the mercy o a small ruling authority that dictates e!ery aspect o their li!es and limits their ability to reali+e their potential, they resent the li e they ha!e and learn to hate better li!es elsewhere( , they cannot en"oy the ruits o their e orts and cannot reali+e their potentialF i they cannot eel ree to do business, work reely, and trade reelyF i they do not ha!e anything to gain or to lose, they begin to eel that any change@@e!en war@@might be better( They ha!e no incenti!e to desire peace with their neighbors( Cor this reason, the areas o greatest con lict in the world also happen to be those that are economically repressed( :$ee <ap(; The 2conomic Creedom <ap,
drawn annually rom the ,ndex, shows, or example, that countries that are the most economically repressed ha!e also su ered ci!il wars and unrest(

The areas o the <iddle 2ast in which ci!il wars and terrorist ha!ens abound are both economically repressed and mostly un ree( 3orth Dorea, a country plagued by star!ation and po!erty, is repressed( /ra+il, -rgentina, parts o - rica, and some ormer $o!iet republics@@all mostly un ree@@ha!e high le!els o po!erty and periodically su er political and economic crises( And$ Trade !reates a 0or(. 0or pea!e0() disp(te sett)e.ent 531ris!o)) and Fit>gera)d 2 2Dr3 -erald 8( *%Driscoll, >r(, is ormer Director o , and $ara >( Cit+gerald is a Trade 8olicy -nalyst in, the Center or ,nternational Trade and 2conomics at The ?eritage Coundation( December 6M, &''& http055www(heritage(org5Gesearch5TradeandCoreign-id5/A6I67(c m -ccessed on 7@ &=@'E] Countries that trade with each other are less likely to engage in actions that would disrupt economic opportunity( <any trade agreements create a orum or the settlement o disputes, thereby reducing tension among the parties to the agreement( )hile the bene its o engaging in trade agreements to oster diplomacy between countries are clear, they also extend to rein orcing existing relationships( The #($( Trade Gepresentati!e is currently completing negotiations or an CT- with $ingapore and has recently inished negotiations with Chile( Completing these agreements is an important element o a trade agenda(

Free Trade Good--Wake Forest 2010-11 +7/72 Free trade pro.otes interdependen!e whi!h so)ves war 531ris!o)) and Fit>gera)d$ %2 [Dr( Aerald 8( and $ara >(, Cormer Director o the Center or ,nternational Trade and 2conomics at the ?eritage Coundation and 8olicy -nalyst at the Center or ,nternational Trade and 2conomics at the ?eritage Coundation, OTrade 8romotes 8rosperity and $ecurity, December 6M, http055www(heritage(org5Gesearch5TradeandCoreign-id5/A6I67(c m]
2conomists ha!e long recogni+ed that ree markets and ree trade are the source o economic prosperityF but as 8resident /ush has noted,

Free Trade Good ,-t War A2nterdependen!eB

economic openness are also .the best oundations or domestic stability and international order(.4 The act is that allies and trading partners are more likely to resol!e di erences than to resort to armed con lict( .Cor example,. write 2dward <ans ield o the #ni!ersity o 8ennsyl!ania and >on 8e!ehouse o the #ni!ersity o )isconsin, .in a seminal study on this topic, $olomon )( 8olachek :6=M'; analy+ed E' pairs o countries rom 6=4M to 6=I7 and ound that higher le!els o trade dampen con lict(.I <ans ield and 8e!ehouse also show that trade agreements dampen con lict because such hostilities threaten the !ery economic bene its that states expect to achie!e and are achie!ing rom the agreements(7 The ree exchange o goods builds wealth and prosperity or all concerned(
democracy and

Free trade so)ves war e.piri!a))/ proven Griswo)d$ %8 [Daniel, Director o the Center or Trade 8olicy $tudies at the Cato ,nstitute, http055www( reetrade(org5node5&M&]
* course, ree trade and globali+ation do not guarantee peace( ?ot@blooded nationalism and ideological er!or can o!erwhelm cold economic

deep trade and in!estment ties among nations make war less attracti!e( Trade wars in the 6=E's deepened the economic depression, exacerbated global tensions, and helped to usher in a world war( *ut o the ashes o that experience, the #nited $tates urged Aermany, Crance and other )estern 2uropean nations to orm a common market that has become the 2uropean #nion( ,n large part because o their intertwined economies, a general war in 2urope is now unthinkable( ,n 2ast -sia, the extensi!e and growing economic ties among <ainland China, >apan, $outh Dorea, and Taiwan is helping to keep the peace( China%s communist rulers may yet decide to go to war o!er its .renegade pro!ince,. but
calculations( /ut the economic cost to their economy would be staggering and could pro!oke a backlash among its citi+ens( ,n contrast, poor and isolated 3orth Dorea is all the more dangerous because it has nothing to lose economically should it pro!oke a war(

,n Central -merica, countries that were racked by guerrilla wars and death s1uads two decades ago ha!e turned not only to democracy but to expanding trade, culminating in the Central -merican Cree Trade -greement with the #nited $tates( -s the $tockholm institute reports in its &''4 Learbook, .$ince the 6=M's, the
introduction o a more open economic model in most states o the Latin -merican and Caribbean region has been accompanied by the growth o new regional structures, the dying out o interstate con licts and a reduction in intra@state con licts(. <uch

o the political !iolence that remains in the world today is concentrated in the <iddle 2ast and $ub@$aharan - rica @@ the two regions o the world that are the least integrated into the global economy( 2 orts to bring peace to those regions must include lowering their high barriers to trade, oreign in!estment, and domestic entrepreneurship( -d!ocates o ree trade and globali+ation ha!e long argued that trade expansion means more e iciency, higher incomes, and reduced po!erty( The welcome decline o armed con licts in the past ew decades indicates that ree trade also comes with its own peace di!idend( Free trade !reates interdependen!e whi!h prevents war Chen$ 2000 [>im, 8ro essor o Law at the #ni!ersity o <innesota, O8ax <ercatoria0 Alobali+ation as a $econd Chance at P8eace or our Time9 3o!ember5December, Fordham International aw !ournal, Lexis] the con!erse proposition @ that trade retards war @ may be less ob!ious, it happens to be the strongest noneconomic argument or ree trade( -mid the de!astation o )orld )ar ,,,
)ar, needless to say, retards trade( 81 -lthough this argument was dispositi!e( The rules and institutions that go!ern international economic relations today grew out o a belated understanding that peace cannot lourish in a world burdened by trade barriers ( The *ctober 6=&= collapse o -merican stock markets destroyed the twin .cornerstones o Aerman prosperity0 loans rom abroad, principally rom -merica, and world trade(. 82 /y .signing ((( the $moot@?awley Tari -ct into law in >une 6=E',. ?erbert ?oo!er committed the .most disastrous single mistake any #($( president [e!er] made in international relations(. 83
8+

Getaliatory tari s helped trans orm a trade war into actual military con lictF the destruction o trade accelerated a de lationary spiral that had begun with ma"or powers% collecti!e retreat to the gold standard( The ensuing .ma"or world depression. energi+ed .the nationalists in >apanese politics and pa!ed the way or the electoral !ictory o the 3a+is in Aermany in 6=E&(. )hen at last military !ictory seemed within reach, the allies con!ened at /retton )oods, 3ew
88 86

?ampshire, 87 to lay the economic [Y&&7] oundation or postwar peace( 87 The three institutions born o that summit @ the ,<C, the )orld /ank, and the Aeneral -greement on Tari s and Trade 8< :or .A-TT.;, orerunner o the )T* @ recei!ed an une1ui!ocal mandate to keep the peace( 60 /y

Criedman%s .Aolden -rches Theory o Con lict -!oidance. accurately described international relations a ter )orld )ar ,,0 no two nations with a <cDonald%s restaurant waged war against each other( -lthough the global economy would later destroy one o /retton )oods% most ambitious achie!ements @ the system o ixed exchange
and large, the /retton )oods institutions ha!e succeeded( #ntil 3-T* orces bombed Lugosla!ia in 6===, 61 Thomas
62

rates or the world%s leading currencies 63 @ this peace di!idend remains one o the strongest arguments in a!or o ree trade( 6+

Free Trade Good--Wake Forest 2010-11 +7/72

Free Trade Good ,-t AT9 Free Trade Ca(sed Wor)d War 22
Free trade didn3t !a(se Wor)d War Two Ger.an h/perin0)ation d(ring the 1<20s was the pri.ar/ e!ono.i! !a(se and g)o"a)i>ation wo()d have so)ved it Chen$ 2000 [>im, 8ro essor o Law at the #ni!ersity o <innesota, O8ax <ercatoria0 Alobali+ation as a $econd Chance at P8eace or our Time9 3o!ember5December, Fordham International aw !ournal, Lexis]
A-TT and the )T* are not the sole heirs o the legacy o /retton )oods( <onetary stability and in rastructural reconstruction, the domains o the

?yperin lation wrecked the Aerman middle class during the 6=&'s and corroded the bourgeois !irtue that ordinarily insulates ci!il society rom extremist politics( ,nsurance against a recurrence o that episode is chie among the bene its rom .international monetary cooperation, exchange stability , ((( orderly exchange arrangements,. and .temporary inancial assistance to countries . experiencing an ad!erse .balance o
,<C and the )orld /ank, ha!e made no small contribution to peace(
67

payments. ad"ustment( 6< -t the core o this stabili+ing mission are crisis@de using .multibillion@dollar rescue packages,. cobbled together be ore .isolated economic woes in a ew countries ((( grow into a global inancial crisis(. 70 -lthough the extent to which the ,<C has . ostered economic growth and high le!els o employment. is debatable, 71

)eimar@style hyperin lation has in

act

all but disappeared

rom the de!eloped world(

Free Trade Good--Wake Forest 2010-11 +</72

Free Trade Good ,-t AT9 Geso(r!e Wars


Free trade so)ves reso(r!e wars Griswo)d$ %8 [Daniel, Director o the Center or Trade 8olicy $tudies at the Cato ,nstitute, http055www( reetrade(org5node5&M&] globali+ation allows nations to ac1uire wealth through production and trade rather than con1uest o territory and resources( ,ncreasingly, wealth is measured in terms o intellectual property, inancial assets, and human capital( Those are assets that cannot be sei+ed by armies( , people need resources outside their national borders, say oil or timber or arm products, they can ac1uire them peace ully by trading away what they can produce best at home(
Third,

#o reso(r!e wars a)eh/an 07, assistant pro essor o political science at the #ni!ersity o 3orth Texas [,dean $alehyan, OThe 3ew <yth -bout Climate Change, Coreign 8olicy, -ugust &''7, http055www( oreignpolicy(com5story5cms(phpHstoryQidWE=&&]
Cirst, aside rom a ew anecdotes, there

is little systematic empirical e!idence that resource scarcity and changing en!ironmental conditions lead to con lict( ,n act, se!eral studies ha!e shown that an abundance o natural resources is more likely to contribute to con lict( <oreo!er, e!en as the planet has warmed, the number o ci!il wars and insurgencies has decreased dramatically( Data collected by researchers at #ppsala #ni!ersity and the ,nternational 8eace Gesearch ,nstitute, *slo shows a steep

decline in the number o armed con licts around the world( /etween 6=M= and &''&, some 6'' armed con licts came to an end, including the wars in <o+ambi1ue, 3icaragua, and Cambodia( , global warming causes con lict, we should not be witnessing this downward trend( Curthermore, i amine and drought led to the crisis in Dar ur, why ha!e scores o en!ironmental catastrophes ailed to set o armed con lict elsewhereH Cor instance, the #(3( )orld Cood 8rogramme warns that 4 million people in <alawi ha!e been experiencing chronic ood shortages or se!eral years( /ut amine@wracked <alawi has yet to experience a ma"or ci!il war( $imilarly, the

-sian tsunami in &''7 killed hundreds o thousands o people, generated millions o en!ironmental re ugees, and led to se!ere shortages o shelter, ood, clean water, and electricity( Let the tsunami, one o the most extreme catastrophes in recent history, did not lead to an outbreak o resource wars ( Clearly then, there is much more to armed con lict than resource scarcity and natural disasters(

Free Trade Good--Wake Forest 2010-11 80/72

Free Trade Good--Wake Forest 2010-11 81/72

Free Trade Good ,viden!e 2ndi!t Generi!


:re0er o(r eviden!e the disadvantages to g)o"a)i>ation are over-e.phasi>ed and its gains aren3t given attention Chen$ 2000 [>im, 8ro essor o Law at the #ni!ersity o <innesota, O8ax <ercatoria0 Alobali+ation as a $econd Chance at P8eace or our Time9 3o!ember5December, Fordham International aw !ournal, Lexis] Despite their impressi!e magnitude, gains rom globali+ation attract scant scholarly notice and e!en less popular attention( Alobali+ation%s bene its are distributed among too many people and across too much geographic space to compete or attention in an a luent but sel @ absorbed Cirst )orld( )hy indeed were the demonstrators who swamped the )T* in $eattle .o!erwhelmingly -ngloH. /y contrast, real and imagined "ob losses rom globali+ation easily capti!ate a Cirst )orld populace that sympathi+es much more readily with relati!ely wealthy, media@sa!!y Cirst )orld workers than with any group in de!eloping or ormerly socialist countries( ., patriotism is ((( the last
20+ 208

re uge o the scoundrel, wrapping outdated industry in the mantle o national interest is the last re uge o the economically dispossessed(.

206

-nd

gi!en the human propensity to notice stri e o!er serenity, it hardly surprises that one bad week in $eattle has o!ershadowed hal a century o earnest work toward pax mercatoria( [Y&4'] .To attain any genuine measure o social "ustice on a global scale, we must eliminate Cirst )orld localism(. )e must ight it in the hills, we must ight it in the streets, we must ight it e!en in the law re!iews(
207

Free Trade Good--Wake Forest 2010-11 82/72 4ar"ieri3s trade !)ai.s ignore .i)itar/ power and !on!ede the pa!i0/ing e00e!t Weede$ :ro0essor o0 o!io)og/ at the &niversit/ o0 4onn$ %+ [2rich, $eptember &&, OThe Di usion o 8rosperity and 8eace by Alobali+ation ,ndependent Ge!iew, Bol = 3o &, p 6I4] The most radical criticism comes rom /arbieri :&''&;, according to whom bilateral trade increases the risk o con lict( -s outlined by *neal and Gussett :&''Ea, &''EbF *neal &''EF Gussett &''E;, her conclusion results rom disregarding the military power o nations Rthat is, their di erent capabilities to wage war across considerable distances( $hould we really proceed on the presumption that war between -rgentina and ,ra1 is as concei!able as between the # nited $tates and ,ra1 or between ,ran and ,ra1H * course, trade has no paci ying e ect on international relations where!er the risk o con lict is extremely close to +ero to begin with( 2!en this inade1uate handling o the power and distance issue by itsel does not su ice to support her conclusions( , the military@con lict !ariable is restricted to those con licts that resulted in at least one atality, then trade is paci ying , whether power and distance are ade1uately controlled or not( <oreo!er, /arbieri :&''E; hersel ound some paci ying e ect o economic reedom and openness to trade on the war in!ol!ement o nations( ,n spite o the
attempted criticism o Gussett and *neal9s indings, the Opeace by trade proposition stands and en"oys power ul empirical support(

Free Trade Good ,viden!e 2ndi!t 4ar"eri

Free Trade Good--Wake Forest 2010-11 83/72

Free Trade Good ,viden!e 2ndi!t =artin


=artin3s st(dies are 0)awed he didn3t take into a!!o(nt !riti!a) 0a!tors Degre et a)$ 1epart.ent o0 :o)iti!a) !ien!e$ &niversit/ o0 5s)o Center 0or the t(d/ o0 Civi) War$ 2nternationa) :ea!e Gesear!h 2nstit(te$ 5nea)$ 1epart.ent o0 :o)iti!a) !ien!e at &niversit/ o0 A)a"a.a$ and G(ssett$ 1epart.ent o0 :o)iti!a) !ien!e at Ja)e$ < :?ar!ard, >ohn, and /ruce, OTrade Does 8romote 8eace0 3ew $imultaneous 2stimates o the Geciprocal 2 ects o Trade and Con lict, >une, &''=, http055www(yale(edu5leitner5resources5docs5?*G>une'=(pd ; <artin, <ayer, K Thoenig :&''M; show ormally how globali+ation could increase international con lict e!en though dyadic disputes reduce bilateral trade( -s long as a dispute does not signi icantly a ect a countryPs trade with third parties, multilateral openness reduces the opportunity cost o using orce( Consider, howe!er, the results rom Long :&''M;, Alick K Taylor :&''4;, and in Table 7, where militari+ed disputes with third parties do ad!ersely a ect bilateral trade( <artin et al(Ps conclusion that openness increases con lict is no!elF compare *neal K Gussett, 6==7, 6===bF $chneider K $chul+e, &''EF <cDonald K $weeney, &''7( ,ndeed, the paci ic bene it o openness is one thing Aart+ke K Li :&''E;, *neal :&''Eb;, and /arbieri K 8eters :&''E; agree on( <artin, <ayer K Thoenig :&''M; ind the bilateral
trade@to@AD8 ratio signi icantly associated with dyadic peace(

Free Trade Good--Wake Forest 2010-11 8+/72

Free Trade Good ,viden!e :rodi!t


:re0er o(r eviden!e a !onsens(s o0 e!ono.ists s(pport 0ree trade Fried.an$ %<7
[<ilton, Cormer $enior Gesearch Cellow at the ?oo!er ,nstitution, OThe Case or Cree Trade http055www(hoo!er(org5publications5digest5E44'7&7(html]

,t is o ten said that bad economic policy re lects disagreement among the expertsF that i all economists ga!e the same ad!ice, economic policy would be good( 2conomists

o ten do disagree, but that has not been true with respect to international trade( 2!er since -dam $mith there has been !irtual unanimity among economists, whate!er their ideological position on other issues, that international ree trade is in the best interests o trading countries and o the world( Let tari s ha!e been the rule( The only ma"or exceptions are nearly a
century o ree trade in Areat /ritain a ter the repeal o the Corn Laws in 6M7I, thirty years o ree trade in >apan a ter the <ei"i Gestoration, and ree trade in ?ong Dong under /ritish rule( The #nited $tates had tari s throughout the nineteenth century, and they were raised still higher in the twentieth century, especially by the $moot@?awley tari bill o 6=E', which some scholars regard as partly responsible or the se!erity o the subse1uent depression( Tari s ha!e since been reduced by repeated international agreements, but they remain high, probably higher than in the nineteenth century, though the !ast changes in the kinds o items entering international trade make a precise comparison impossible(

Free Trade Good--Wake Forest 2010-11 88/72

Free Trade Good--Wake Forest 2010-11 86/72

AT9 C()t(re Change 2nevita")e


C()t(ra) !hange is inevita")e 4hagwati, 8ro essor o 2conomics at Columbia #ni!ersity and $enior Cellow in ,nternational 2conomics at Council o Coreign Gelations, &'' + [>agdish, ,n de ense o globali+ation, 6'=@66'] - ew more obser!ations are in order here(. The idyllic past whose passing one laments is based on a reconstruction that bears little relationship to the reality today( Thus the /ritish writer Aeorge <onbiot, like many others, has ad!ocated re!ersion to a .modern peasant economy, based on organic ood and local markets, bypassing and disa!owing the super@ markets(. /ut that countryside is no longer the ideali+ed !ersion that we know rom the capti!ating ,mpressionist paintings o <onet and Ce+anne or rom >ohn Constable%s enchanting rendering in The Corn ield( ,t is also interesting that when these critics o globali+ation imagine the countryside that they want to re!ert to, their desired .utopia. admits elements that themsel!es were intrusions into the rural scene and were attended by articulate, e!en impassioned, protest at the time( Thus, )( A( ?oskins, who wrote elo1uently in 6=IE about how he would like to ha!e 2ngland preser!e and enhance Gutland, then 2ngland%s smallest county, against the .incessant noise, speech and all the other acids o modernity,. nonetheless allowed or the railways to intrude on his landscape( /ut the mere in!ention o the railways and their appearance in rural 2ngland had led to protests rom armers, based on ears such as that the roar o the railways would terri y cows so much that they would not yield milk^ -nd with the ears o the past truly orgotten, today%s /ritain sees the railways as part o its heritage, with ninety@one steam railways and museums in 2ngland and thirty@six elsewhere( ,ndeed, human beings ha!e a complex sel @identity whose mosaic draws on .hori+ontal. colors that come rom li!ing with others within a community and .!ertical. colors that come rom ethnic and historical roots and memories, o ten reconstructed and imagined( 3early all societies will there ore treasure the past, seeking to ree+e and recall in museums the cultural heritage they decide to hold precious( -s cultures e!ol!e and elements o them !anish, we must decide what we need to remember and retain in our midst( -ll o the past cannot be ro+en endlessly in time( This conscious choice o the elements o one%s heritage that must be preser!ed is precisely what happens as the old gi!es way to the new( -nd so we ha!e the 3ational Trust in /ritain to preser!e the historic castles and palaces that cannot be pri!ately maintained, the use o public and philanthropic unds to inance museums and the arts in the #nited $tates, public support or the re!i!al o 3oh plays in >apan, and the work o #32$C* in sa!ing great treasures in the poor countries( 3ostalgia, then, is used not to bottle up change, which in any case is ine!itable, but to decide what a society really wants to remember in the context o change and then to ind ways to do so( That is surely the way to go(

Free Trade Good--Wake Forest 2010-11 87/72

AT9 C()t(re #o 2.pa!t


#o threat to sovereignt/ @(kas$ Cato Ana)/st$ %1 [-aron, OClueless in Juebec, a!ailable0 http055www(nationalre!iew(com5comment5comment@lukas'76M'6(shtml] The institutions that go!ern trade, like the Cree Trade -rea o the -mericas to be discussed in Juebec City, are no threat to so!ereignty or to democracy( $uch agreements are nothing but contractual arrangements between so!ereign nations to mediate trade disputes according to rules agreed upon by consensus( -nd despite all the talk o .secret. negotiations, the $ummit o the -mericas is more democratic than the people it dri!es to apoplexy( - ter all, the negotiators at Juebec represent elected go!ernments rom across the hemisphere( )ho elected the purple@haired sign@wa!er on the street in the black maskH The disruption and damage le t in the wake o these protests are more akin to mob rule than democracy (

Free Trade Good--Wake Forest 2010-11 87/72

Free Trade Good--Wake Forest 2010-11 8</72 Kero e.piri!a) s(pport that trade destro/s !()t(re @ewis <2 [pro essor at Duke #ni!ersity( Areen Delusions, p6'I@6'7]

AT9 C()t(re Trade 1oesn3t D(rt C()t(re

The eco@radicals% ear that global enterprises will demolish local traditions , replacing them with a Disneyes1ue mockery o true culture, is not only misguided but deeply arrogant as well( )ho is to be the global cultural arbiter, deciding which -merican ilms or records are unsuitable or oreign eyes and earsH 2co@radicals, many o whom would e!idently endorse worldwide censorship on a massi!e scale, entertain se!erely misplaced ears( ,ndigenous societies the world o!er are gra!ely endangered, but such threats stem rom nation@building central regimes, wealthy land@grabbers and orest clearers, and, in places like /angladesh%s Chittagong ?ills, hungry, landless peasants rom ad"acent areas o high population density( 3either <adonna nor $yl!ester $tallone has e!er destroyed a culture( ,n act, throughout the world, local peoples are able to incorporate )estern trappings without compromising their own cultural systems( The largest traditional, prestige east , witnessed in
highland Lu+on, one that entailed easting some 4,''' persons at the cost some N64,''', was celebrated by a amily holding the local Coca Cola distributorship( <oreo!er, the ma"ority o guests in attendance were reasonably con!ersant with the latest products o the global entertainment industry( 3or are such interests anything new( $ince the early years o this

century, e!en casual tra!elers ha!e disco!ered that the Dankana@ey people en"oy country music, western ilms, and cowboy bootsF in local parlance calling someone a cowboy is a great compliment( /ut there is no e!idence that such super icial borrowings ha!e had any deleterious e ects on their core cultural !alues and social institutions( , would urther suggest that the excoriation o multinational corporations is misguided and potentially dangerous( Damning irms whose producti!e operations span national boundaries is not only parochial but may also eed reactionary orms o nationalism( To orbid economic endea!ors to cross political di!ides, whether by discouraging trade or by disallowing the establishment o oreign subsidiaries, would only strengthen the di!ision o humankind into contending national blocks( $uch nationalism has pro!ed itsel many times o!er a potent orce or both war and repression(

Free Trade Good--Wake Forest 2010-11 60/72 Free trade doesn3t !a(se )and the0t 4hagwati, #ni!ersity pro essor at columbia uni!ersity and senior ellow in international economics at the council on oreign relations, &''+ [>agdish, ,n de ense o globali+ation, 667@664] Their biggest worry seems to ha!e been that they would lose their lands because the go!ernments o the countries in which the indigenous groups were supplanted by the intruding colonialists and settlers in the last two centuries appear to ha!e turned to legal doctrines such as the theory o terra nullius :under which communal rights to .unoccupied. land are not
recogni+ed;( $uch doctrines ha!e made it easier to depri!e the indigenous groups o their traditional right to deny legal purchase by others o such lands( Chie -rthur <anuel has argued that his community aces orestry companies that are using .colonial@ era doctrines o disco!ery.0 these doctrines .said we indigenous peoples had no property interests,. thus nati!e land .accrued. to 2uropeans( This ethnocentric idea .is the essence o usurping and !iolating the rights o indigenous peoples(.64 Chie -rthur has denounced the Canadian go!ernment%s Comprehensi!e Claims 8olicy as tantamount to extinguishing claims to territory in exchange or small bene its( /ut what has globali+ation to do with this, reallyH , their complaints are !alid, these policies and enabling laws were put in place to sei+e their lands orcibly and without ade1uate compensation so that they could be put to use or economic acti!ity such as building railways, dams, and actories( /ut they would ha!e been, and indeed were, pursued regardless o whether the country was autarkic or outward@oriented in trade and in!estment, or instance( The problem

AT9 C()t(re AT9 @and The0t

has been the une1ual power between the success ul settlers o yesterday and the con1uered tribes, between go!ernments o today and these politically powerless indigenous peoples (6I
There is nothing here that is a result o economic globali+ation( The reprehensible situation :which ortunately is in transition in many countriesR or instance, Chile has since 6==' a re!ised law that shi ts the balance more toward protecting the property rights o the indigenous communities than was the case earlier; is historically deri!ed rom con1uest and subse1uent exploitation through laws and processes de!eloped to acilitate exploitation !ia what o ten were underhanded land sei+ures( Alobali+ation, o course, increases the incenti!e to expropriate more lands in this manner( ,t

may also, through increased economic prosperity, strengthen the ability o those who wish to expropriate the indigenous groups% lands( /ut , ha!e not been able to ind empirical e!idence to link increased globali+ation with enhanced expropriation ( ,n act, when multinationals are among those who seek to utili+e these domestic policies on land use, that !ery act seems to gi!e more political salience and hence an extra edge to protests by the acti!ists among the indigenous groups and can lead either to the termination o the planned takeo!er o the community%s lands or to larger compensatory trans ers o resources to the communities whose lands are to
be co@opted or use( These outcomes are e!ident in the recent protest by a ew indigenous 8ehuenche ,ndians, in act six amilies, who ha!e protested against the building o the Galco Dam in south@central Chile by 2ndesa, a $panish power company( Ge using to sell their land to be submerged by the proposed reser!oir e!en though ninety@three other amilies accepted compensation, they held up the work on the hal @ inished dam by arguing, .*ur ancestors are buried hereF we can%t trade them in or money(..The case that globali+ation, and in particular trade integration, contributes to de!astation

o the indigenous cultures in this ashion is there ore unpro!en( $o when an anthropologist writes, a ter
the Canadian go!ernment%s use o armed police and tear gas to contain the protests at the Juebec summit where the proposed CT-- was on the agenda, that .the state [in its use o orce] mimicked the grotes1ue !iolence enacted through ree trade policies. :italics added;, one can only gasp^ -nd one can barely repress astonishment when the rhetoric escalates urther0 .The indigenous acti!ists in Juebec were already aware that at numerous sitesRstreets, !illages, and ieldsRwhere their communities con ront globali+ation, pre!ailing economic discourse is intimately con"oined with state repression(.6M

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AT9 C()t(re AT9 @ang(age


#o i.pa!t to the spread o0 ,ng)ish ignores .(ti)ing(a)is. and dia)e!ts 4hagwati, 8ro essor o 2conomics at Columbia #ni!ersity and $enior Cellow in ,nternational 2conomics at Council o Coreign Gelations, &'' + [>agdish, ,n de ense o globali+ation, 6'=@66'] -nd so when the .global pessimists. argue that .2nglish is a killer language spreading like a cultural plague around the world, eliminating distincti!e !oices and cultural identities,. , side rather with Charles Leadbeater, the 2nglish intellectual and author o #p the Down 2scala@ tor0 )hy the Alobal 8essimists -re )rong, when he responds0 .[<]any !arieties and hybrids o the language ha!e emerged( The pessimists% black and white world rules out the possibility o people reaching these ruit ul combinations in language, commerce and technology( /ut that is how people increasingly seem to cope, by creating hybrids(.I ,ndeed, no better illustration o this hybridi+ation, the co@opting and re ashioning o 2nglish idiom, grammar, and spelling to mesh with local color, is pro!ided than by $alman Gushdie, who extra!agantly tosses together /ombay slang and impeccable 2nglish in his no!els touched by the magic realism that,
in turn, is borrowed rom $outh -merica%s gi ted writers( -nd the ,ndian subcontinent%s maniacal mangling o metaphors is ondly recollected by -ngus )ilson in Ge lections in a )riter%s 2ye when he records his Ceylonese riend as saying0 .Lou see, , was a bad egg, so my parents sent me to >a na College. and ., like the !illage here, but this house , ha!e at present is not my cup o tea(.% Let more telling is the continual mixing o metaphors, as in the apocryphal story o the malingering ,ndian clerk asking the 2nglish manager or lea!e to attend his mother%s uneral( ?e writes0 .$ir0 The hand that rocked my cradle has inally kicked the bucket( Can , ha!e lea!e to go to my !illageH. The manager rises to the occasion and responds0 .Dear <r( Chatter"ee0 Lour mother has died once too o ten( $o , must put my oot down with a irm hand( Lour application is denied(. ,n act, as one

looks around the world, one sees that the local use o indigenous languages has also re!i!ed, alongside and at times in response to the spreading international use o 2nglish( The rise o multiculturalism and the celebration o ethnicity rather than its extinction are modern phenomena that de y the global pessimists% dire predictions( The #nited $tates has e!en gone bilingual,
or another globali+ation@related reason0 the illegal mo!ement o <exicans and other ?ispanics into the #nited $tates( They are o ten illiterate and impo!erishedF their illegal status also orces them to su er an underground existence( There ore, their extensi!e and exclusi!e use o $panish, rather than the traditional shi t to 2nglish by pre!ious :legal; immigrant groups, is ine!itable( Ai!en the -merican emphasis on e1ual rights or all, a shi t to multilin gualism down

the road is e1ually certain( -lready the cash@dispensing machines o the banks ha!e been .talking. to customers, not "ust in 2nglish but in $panish and lately also in Chinese( Au"arati, /engali, Gussian, and other languages cannot be ar behind(

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AT9 =#C3s
Trade pro.otes the r()e o0 )aw whi!h .oderates =#C3s Croning &''' [Denise ?(, ormer ?eritage trade analyst( /ackgrounder E=6 -ugust &4, online] /ene it ZE0 Cree trade disseminates democratic !alues( Cree trade osters support or the rule o law( Companies that engage in international trade ha!e reason to
abide by the terms o their contracts and international agreed@upon norms and laws( The )orld Trade *rgani+ation, or example, compels its member countries to honor trade agreements and, in any trade dispute, to abide by the decisions o the )T*%s mediating body( /y supporting the rule o law, ree trade also can reduce the opportunities or

corruption( ,n countries where contracts are not en orced, business relationships ail, oreign in!estors lee, and capital stays away( ,t is a downward spiral that especially hinders economic de!elopment in countries where o icial corruption is widespread( -s -le"andro Cha uen, 8resident o the -tlas 2conomic Gesearch Coundation, has noted, .True economic reedom is possible only under a system o limited go!ernment with a strong rule o law( 2conomic reedom has little !alue i corruption in go!ernment means that only a ew will en"oy it(.6= Trade likewise can alter 1uickly in countries where customs o icials expect kickbacks at e!ery checkpoint( ,n
)estern - rica, customs o icials can stop trucks carrying goods as o ten as e!ery hundred yards "ust to collect another bribe, as <abousso Thiam, executi!e secretary o the )est - rican 2nterprise 3etwork, testi ied at a 6=== *rganisation or 2conomic Co@ *peration and De!elopment :*2CD; con erence on corruption(&' $uch arbitrary checkpoints spring up when countries cannot pay their customs o icials li!able wages, orcing them to choose between remaining honest but ailing to bring home enough money to eed their amilies or taking an illegal bribe, as others o ten do( -s #(3( $ecretary Aeneral Do i -nnan has obser!ed, Corruption is built on e!erything being in the hands o the go!ernment( $o or e!erything you want, you need a permit( The person who gi!es you the permit wants a bribe( The person who%s going to make the appointment or you wants a bribe( -nd so on(&6 Cree trade, rein orced by the rule o law, remo!es such incenti!es or corruption by

spurring economic growth, increasing the number o better@paying "obs, and ultimately increasing the le!el o prosperity( /ut ree trade transmits more than "ust physical goods or ser!ices to people( ,t also transmits ideas and !alues( - culture o reedom can lourish whene!er a great
society, as 6Mth century economist -dam $mith termed it, emerges with the sel @con idence to open itsel to an in low o goods and the ideas and practices accompanying them( - culture o reedom can become both the cornerstone and capstone o economic prosperity(

=#Cs won3t !a(se e-tin!tion Juinli!an, 8h(d( and 2xecuti!e Director o the Center or 2conomic K 8olicy 2ducation and Chair o the 2conomics 8olitical $cience and 8ublic 8olicy Departments at $aint Bincent College, &D :Aary, O<ultinational Corporations0 <yths and Cacts, Geligion and Liberty, 3o!ember5December, Bolume 6', 3umber I, http055www(acton(org5publicat5randl5article(phpHidWEI7; <any religious leaders are increasingly troubled by the growing presence o multinational corporations around the world, especially in poor and de!eloping nations( ,n truth, such concern is warranted, but only i the allegations against multinational corporations are true( $uch allegations include the charge that pro it@moti!ated multinational corporations are engaging in destructi!e competition and insidious plots to economically and politically manipulate entire economies( Curther, multinational corporations are percei!ed to be methodically eliminating
domestic irms in order to exploit their monopoly powers, exporting high@wage "obs to low@wage countries, undermining the world9s en!ironment, augmenting the external debt problems o de!eloping countries, perpetuating world po!erty, and exploiting child labor( /ut are such allegations, in act, trueH Geligious leaders should examine the data so

that they can draw reasonable conclusions about the impact o multinational corporations(
$uch an examination re!eals that multinational corporations, in act, ha!e actuali+ed numerous moral goals0 the ad!ancement o human rights, the impro!ement in the world en!ironment, and, most importantly, the reduction o world po!erty rates(

Critics o multinational corporations o ten pro ess to ha!e a higher moral !ision and to be pursuing a world with laudable goals o "ust wages and a clean en!ironment( *n the other hand, the
extreme le t con!eniently ignores the socially destructi!e beha!ior o those economies that rely hea!ily on go!ernmental regulations and state@operated monopolistic enterprises( These economies ha!e incurred extreme rates

o po!erty, repressed human rights, and excessi!e en!ironmental damage ( Cor reasons mentioned
below, the problem countries ha!e almost no multinational corporations and are concentrated in sub@$aharan - rica, $outh -sia, 3orth - rica, and the <iddle 2ast( 8aradoxically, the extreme le t is hindering the momentum to

decrease world po!erty rates and is dea to the continued su ering o the extreme poor( The le t is 1uick to o er wel are to de!eloping countries but, un ortunately, this hinders poor nations rom becoming sel @supporting( The extreme right, on the other hand, o ers no charity and "oins the le t in denouncing trade( To be open minded, we must also consider the !iews o the
de!eloping countries, which almost in unison belie!e that the mo!ement against multinational corporations will not only hinder their economic progress but will also most likely re!erse it( -s 3obel 8eace 8ri+e Laureate and ormer president o Costa Gica, *skar -rias, exclaimed at an -ugust &''' lecture to #nited 3ations delegates and heads o state, O)e [the de!eloping countries] don9t want your [the de!eloped countries] handoutsF we want the right to sell our products in world markets^ 8resident -rias is re erring to a right possessed by all de!eloped countries and purposely denied to almost all de!eloping countries or more than i!e decades( 3ow let9s address some o the myths that critics o multinational corporations claim

to be acts( This article does not, howe!er, deny that there are speci ic cases that re lect badly on all multinational corporations :3ike9s past problems with child labor and other media e!idence o the wanton
disregard o en!ironmental responsibilities are but two examples;( $uch cases, howe!er, are rare, gi!en that there are o!er I',''' multinational corporations( <onolithic <onopoly 8owerH Competition is not destructi!eF it has

compelled multinational corporations to pro!ide the world with an immense di!ersity o high@1uality and low@priced products( Competition, gi!en ree trade, deli!ers mutually bene icial gains rom exchange and sparks the collaborati!e e ort o all nations to produce commodities e iciently( -s a conse1uence, competition impro!es world wel are while dampening the spirit o
nationalism and, thus, promoting world peace( ?as the monopoly power o multinational corporations grownH Aranted, some multinational corporations are !ery large0 -s o 6==M, they produced &4 percent o global output, and, in 6==7, the top one hundred irms controlled 6I percent o the world9s producti!e assets, and the top three hundred controlled &4 percent( Cirm si+e and market power, howe!er, are dynamic( The $all &treet !ournal annually sur!eys the world9s one hundred largest public companies ranked by market !alue( Comparing the rankings in 6=== to that o 6==', there were i!e new irms :<icroso t, )al@ <art, Cisco $ystems, Lucent Technologies, and ,ntel; in the top ten, and our o these irms were not in the top one hundred in 6=='( <ore remarkably, there were sixty@six new members in the 6=== list( $imilarly, the #nited 3ations tracks the one hundred largest non inancial multinational corporations ranked by oreign assets( -lthough not as dramatic as the change in the $all &treet !ournal rankings, the #nited 3ations reported a &4 percent change in the composition o its top one hundred rom 6==' to 6==7( -ccording to the con!entional wisdom, an increase in monopoly power should also lead to ewer and larger multinational corporations, but, as reported by the #nited 3ations, the number o multinational corporations tripled rom 6=MM to 6==7( ?as the increase in oreign direct in!estment by multinational corporations harmed

domestic in!estmentH :Coreign direct in!estment occurs whene!er a

irm locates a actory abroad or purchases more than ten percent o an existing domestic irm(; The #nited 3ations9 $orld Investment Re/ort 4555 cited two recent studies( The irst, by 2duardo /orens+tein, >os_ de Aregorio, and >ong@)ha Lee, ound that an additional dollar o oreign direct in!estment increases domestic in!estment in a sample o sixty@nine de!eloping countries by a actor o 6(4 to &(E( The second study, conducted by the #nited 3ations, reached the same conclusion as the irst or countries in -sia, but it o ered some disputable e!idence o a possible negati!e impact on Latin -merica( 3otably, coordinated international manipulations o

markets are rarely conducted by large multinational corporations but are almost always go!ernment supported and directed : or example, opec, the -ssociation o Co ee 8roducing Countries, and the
Cocoa 8roducers -lliance;( Curther, go!ernment@sponsored cartels are not concerned about the poor( ,n the 6=7's, opec9s price distortions were a ma"or source not only o world recession but also o the increased external debt and po!erty o de!eloping countries( Cree markets protect the poor rom the prolonged abuses o cartels( Gapacious 2conomic 2xploitationH Concerns

about multinational corporation in ringements on national so!ereignty lack substance( <ultinational corporations do not operate with immunityF they are hea!ily monitored both in the #nited $tates and abroad( Crom 6==6 to 6==M, according to the #nited 3ations, there were M=4 new oreign direct in!estment regulations enacted by more than sixty countrie s(
Curther, multinationals are not siphoning "obs rom high@ to low@wage countriesF in act, they tend to preser!e high@wage "obs in de!eloped countriesF in 6==M, 74 percent o oreign direct in!estment went to de!eloped countries( /esides, labor costs alone do not determine where multinational corporations base their a iliatesF other !ariables\such as political stability, in rastructure, education le!els, uture market potential, taxes, and go!ernmental regulations\are more decisi!e( ,n 6==M, multinational corporations had eighty@six million employees\nineteen million in de!eloping countries\ and were also responsible, indirectly, or another 6'' million "obs( The "obs created abroad also tend to pay ar more than the domestic

employers do( /ased on an -ugust 7 &''', discussion with both the general manager o Chesterton 8etty and the senior manager o 8rice )aterhouse Coopers in /ei"ing, their

Free Trade Good--Wake Forest 2010-11 6+/72 Chinese employees a!erage approximately N6',''' per year\a small ortune in China, where an upper@middle@class ull pro essor or medical doctor brings home slightly more than N&'' per month in the city o >inan( 2!idence supplied by the )orld /ank and #nited 3ations strongly suggests that
multinational corporations are a key actor in the large impro!ement in wel are that has occurred in de!eloping countries o!er the last orty years( ,n sub@$aharan - rica and $outh -sia, where the presence o multinational corporations is negligible, se!ere po!erty rates persist and show little sign o impro!ement( Cor example, rom 6=M' to 6==M, world child labor rates :the percentage o children working between the ages o ten and ourteen; tumbled rom &' to 6E percent( Child labor rates dropped rom &7 to 6' percent in 2ast -sia and the 8aci ic, rom 6E to = percent in Latin -merica and the Caribbean, and rom 67 to 4 percent in the <iddle 2ast and 3orth - rica( ,nterestingly, regions lacking multinational corporations had the worst child labor rates and the smallest reductions0 $ub@$aharan - rica9s and $outh -sia9s child labor rates dropped rom E4 to E' percent and rom &E to 6I percent, respecti!ely( This reduction in rates was attributable to increased amily income, which has permitted amilies to impro!e their diets, to ha!e better homes, and to pro!ide their children with more educational opportunities( $chool enrollment rates or ages six to twenty@three rose or all de!eloping countries rom 7I percent in 6=I' to 47 percent in 6==4( *nly sub@$aharan - rica had an enrollment ratio below 4' percent in 6==4( <oreo!er, multinational corporations are not committed to the destruction o the world9s en!ironment but instead ha!e been the dri!ing orce in the spread o Ogreen technologies and in creating markets or Ogreen products( <arket incenti!es such as threat o liability, consumer boycotts, and the negati!e impact on reputation ha!e orced irms to police their oreign a iliates and to maintain high en!ironmental standards( The #nited 3ations9 $orld Investment Re/ort 4555 notes se!eral studies that con irm oreign a iliates ha!ing higher en!ironmental standards than their domestic counterparts across all manu acturing sectors( The #nited 3ations also positi!ely re lected on the e orts initiated by multinational corporations to assist domestic suppliers :Oregardless o ownership; to 1uali y or eco@labeling and to meet en!ironmental standards currently supported by more than i!e thousand multinational corporations( <ultinational corporations ha!e also ad!anced se!eral programs :the Alobal

2n!ironmental <anagement ,nitiati!e and the Alobal $ulli!an 8rinciples, among others; to establish industry codes dedicated to achie!ing high le!els o social responsibility( - #nited 3ations sur!ey o multinational corporations re!ealed that the primary reason multinational corporations do not in!est in certain countries is the presence o extortion and briberyF not surprisingly, the main source o the corruption is go!ernmental o icials( /oth the ,nternational Chamber o Commerce and the ,nternational *rgani+ation o 2mployers ha!e established social codes and standards that attempt to establish principles or responsible en!ironmental management( The Crucial Gole o 8eace and Creedom )hen multinational corporations make pro its, this does not mean that de!eloping countries are being exploited( /oth the multinational corporations and domestic country are better o \the de!eloping country recei!es "obs, an expanded tax base, and new technologies ( , the in!estment does not do well,
the multinational corporations may lose their in!estment and the de!eloping country does not recei!e the a orementioned bene its, but the de!eloping country owes no restitution( -s a result, multinational corporation in!estments

do not contribute to the external debt problems o de!eloping countries ( -ccording to the #nited 3ations,
in 6==M, N6II billion, or &4(M percent o the world oreign direct in!estment went to de!eloping countries( *nly N&(= billion o oreign direct in!estment was obtained by the least de!eloped countries, which are primarily composed o the sub@$aharan - rican countries( Ai!en risk conditions, capital lows to where it can earn the highest rate o return( The re1uired risk premium is much higher when a de!eloping country is experiencing ci!il wars, su ers rom o!er@regulation, has a weak in rastructure, is politically unstable, keeps its markets closed to oreign competition, has in lexible labor markets, and imposes high taxes( The ?eritage Creedom ,ndex measures the degree o economic and political repression present in de!eloping countries( -s predicted, oreign direct in!estment is smaller in de!eloping countries that are repressed( /ased on the &''' ?eritage Creedom ,ndex, o the eighteen economies in the <iddle 2ast and 3orth - rica, ten are either mostly un ree or repressed, and only /ahrain is ree( The results are more dismal or sub@$aharan - ricaF thirty@ i!e :make that thirty@six, gi!en Gobert <ugabe9s policy o land@grab terrorism; o the orty@two economies in the region are mostly un ree or repressed( De!eloping

countries must be allowed to urther themsel!es economically through ree markets and the expansion o multinational corporations( $uch countries want "obs, not wel are( Curthermore, what is com orting but not easily understood is that the promotion o trade increases the wel are not only o de!eloping countries but also o de!eloped onesF ree trade is a positi!e@ sum game( Free trade !he!ks po)iti!a) e-p)oitation - .akes it di00i!()t 0or govern.ents to i.p)e.ent po)i!ies that 0avor e)ites Weede$ :ro0essor o0 o!io)og/ at the &niversit/ o0 4onn$ %+ [2rich, $eptember &&, PThe Di usion o 8rosperity and 8eace by Alobali+ation ,ndependent Ge!iew, Bol = 3o &, p 6I4] )ith regard to the expansion o economic reedom and secure property rights, globali+ation pro!ides reason or hope( Alobali+ation ties politicians9 hands and pre!ents them rom pursuing politically attracti!e but sel @de eating policies, such as those that created the wel are state and its disastrous e ects on
incenti!es to produce goods or ser!ices or others( -s Banberg has obser!ed, Ocompetition among "urisdictions o ers citi+ens and "urisdiction@users e ecti!e protection against exploitation, be it in a!or o pri!ileged groups or o those who hold the reigns o political decision@making power :&''', 6'I;( )here markets are signi icantly larger than political

units, sti ling the markets by political controls and by undermining economic reedom becomes more di icult than elsewhere( ,n my !iew :)eede 6==I, chap( 7, and &''', inspired by >ones 6=M6;, e!en the rise o the )est and the comparati!e stagnation o the great -sian ci!ili+ations until the mid@ or late twentieth century is owing to political ragmentation and disunity in 2urope in contrast to the huge centrali+ed empires in China, ,ndia, or the <iddle 2ast( Capital and e!en labor to a lesser degree could exit rom oppressi!e rule in the )est, thereby mitigating its incidence( /y contrast, -sian emperors or sultans were not orced to respect the property rights o merchants and producers(

Free Trade Good--Wake Forest 2010-11 68/72

AT9 =ono!()t(res
#o i.pa!t to .ono!()t(res Death << [>im, *rchids -ustralia, December 6===, http055www(orchidsaustralia(com5whysa!e(htm] $ome people say we can9t a ord to lose any species, no matter what species they are( 2!erything needs e!erything else, they say, to make nature balance( , that were right, it might explain why the six orchid species should be sa!ed( -las, no( )e could pour weedkiller on all the orchids in -ustralia and do no ecological damage to the rest o the continent9s biology( /ut wouldn9t the natural ecological systems then become less stable , i we start plucking out species @ e!en those orchidsH 3ot necessarily( 3atural biological systems are hardly e!er stable and balanced anyway( 2!erything goes along steadily or a time, then boom @ the system alls apart and simpli ies or no !isible reason( Di!erse systems are usually more unstable than the less di!erse ones( /iologists agree that in some places less di!ersity is more stable :in the -rctic, or example;( -lso, monocultures @ arms @ can be !ery stable( 3ot to mention the timeless grass o a salt marsh( ,n other words, there9s no biological law that says we ha!e to sa!e the orchids because they add di!ersity, and that added di!ersity makes the biological world more stable( #o i.pa!t to .ono!()t(res Wood$ 3 [-g/ioBiew, >anuary M, &''E, http055www(agbioworld(org] The analogy put orward by 3A*s that crop !arieties are like wild species, once lost they are gone ore!er is entirely spurious( -ny competent armer can generate new !arieties at will, by selecting rom apparent %o @types% in the crop :the source o Aolding and Cuggles hops, Cox 8ippin apple, Ci e wheat, Che!alier barley, and a host o unnamed selections by skilled armers in de!eloping countries;( Cor crop !arieties, extinction is not ore!er0 there is a continual !arietal e!olution and turno!er that collecting and seed stores ail to capture( Geneti! diversit/ is resi)ient' Darris 31 [>onathan, Tu ts #ni!ersity Alobal De!elopment and 2n!ironment ,nstitute, ' &urvey o# &ustaina*le Develo/ment, p 6E&@E] Ai!en the possible instability o predator-prey interaction as well as external physical variability, the

key to system persistence lies in spatial heterogeneity and biotic diversity. These characteristics make an ecological system resilient \ able to withstand internal imbalances or external disturbances(
2cological models show a !ery wide range o complex beha!iors, with multiple stable states, boom@and@bust cycles, and e!en chaotic beha!ior( 8lant@ and animal@specie luctuations on a local scale interact with geophysical !ariables on a much larger scale to generate robust and resilient ecosystems( ?uman population growth and economic acti!ity a ects the local@scale relationships in ways that can pro oundly change o!erall ecosystems( The resources management concepts o the maximum sustained yields :e(g(, o ish populations; and ixed carrying capacities :e(g(, o terrestrial herbi!ores; ha!e been discredited by these more sophisticated !iews o broad ecosystem unction( The !ery success o achie!ing management yield goals tends to reduce !ariability and damage ecosystem resilience( 8art o the answer to the 1uestion Owhy has the world not collapsedH lies in the resilience o ecosystems( The other

part lies in human creativity and adaptive behavior. uman adaptability is the key to economists! optimism about our ability to substitute for scarce materials and develop successful responses to environmental problems. ?owe!er, the resilience o natural systems is not unlimited, and
human adaptability is limited by speci ic en!ironmental contexts(

Free Trade Good--Wake Forest 2010-11 66/72

AT9 #orth- o(th Wea)th Gap


Trade so)ves ri!h-poor gap .ost !on!)(sive st(dies Cattaui, $ecretary general o the ,nternational Chamber o Commerce, ,nternational ?erald Tribute, &D :<aria Li!anos, OAlobali+ation ?olds the Dey To 2nding )orld 8o!erty, >une E'th, nexis; Those who really want to alle!iate the po!erty o hundreds o millions o people in the de!eloping world should look at practical remedies instead o making globali+ation a scapegoat( There is no e!idence that the accelerated integration o markets around the world is increasing the sum o human misery( Gather, it is the contrary( /ut that was not the picture painted in Aene!a this week at the special session o the # nited 3ations Aeneral -ssembly called to re!iew progress since the #3 social summit in Copenhagen i!e years ago( Ghetoric inside the con erence and the clamor
o demonstrators outside ga!e the opposite impression( ?eadlines pro"ected the sad news rom the #3 that since 6==4 the number o people li!ing in absolute po!erty has grown rom about 6 billion to 6(& billion( This terrible picture is

depicted as an indictment o globali+ation , e!idence that it has

ailed( Ai!en the steady rise in the world population @ up by almost 7'' million to I(6 billion o!er the i!e years @ how much worse would the igures ha!e been without the bene its o trade liberali+ation, oreign in!estment and the knowledge economyH , the #3%s igures are right, the world economy has managed to place an extra &'' million people abo!e the po!erty line( 3umbers can be used to pro!e almost anything by selecting the most con!enient set o igures and time rames( /ut there is no getting around the act that economic growth must be the point o departure or all impro!ements in li!ing standards( ?ow will it help the poor i go!ernments try to strangle globali+ation by stemming the low o trade, in ormation and capital @ the three components o the global economyH ,t is undeniable that disparities between rich and poor are still too great( /ut it is not true that economic growth

bene its only the rich and lea!es out the poor, as the opponents o globali+ation and the market economy would ha!e us belie!e( - recent )orld /ank study, %%Arowth ,s Aood or the 8oor,%% re!eals a one@to@ one relationship between the income o the bottom i th o the population and per capita gross domestic product( ,n other words, incomes o all sectors grow proportionately at the same rate( The study notes that openness to oreign trade bene its the poor to the same extent that it bene its the whole economy( Alobali+ation was ne!er a one@si+e@ its@all miracle cure or po!erty eradication( The economic growth that globali+ation brings is certainly essentia l, but it is not enough( - much more
complex set o policies must be brought into play, which will include multilateral technical and inancial assistance rom global institutions and targeted bilateral aid to the least de!eloped countries in particular( ,mpro!ed market access or the exports o de!eloping countries is indispensable so they can ha!e a chance to pay their own way( Let us hope that they will bene it more ully rom trade liberali+ation in the next round o world trade negotiations( -bo!e all, progress will re1uire sel @help by indi!idual countries0 the rule o law, inancial probity, political stability, the absence o con lict, a legal ramework that encourages domestic and oreign in!estment( 3obody expects the poorer countries to prosper without help( 8o!erty reduction will be greatly assisted by external support or education, health programs and basic social ser!ices that are taken or granted in the industriali+ed world( -s the #3%s Do i -nnan said in Aene!a, the case or making extra resources a!ailable can be made compellingly when those resources are to be used or social ser!ices that bene it the poor rather than or weapons or to raise the li!ing standards o an already pri!ileged elite( The )orld Trade *rgani+ation recently buttressed the case or globali+ation with a study showing that those de!eloping countries that are the most open to trade @ that is, most ready to take part in the global economy @ are the most success ul in catching up with rich countries( Countries that stay on the sidelines tend to languish( Cynics will say that the e!idence in these and similar studies is sel @ser!ing( /ut lea!ing aside the war o igures and statistics, it is surely no more than common sense to say that the more wealth in cash and kind that is mo!ing around the world and the

more widely it is distributed, the better or e!erybody( Ao!ernments must not be stampeded into a utile attempt to stop or slow globali+ation when the causes o po!erty and exclusion lie elsewhere(

Free Trade Good--Wake Forest 2010-11 67/72

AT9 :overt/
G)o"a)i>ation !()tivated 0ro. 0ree trade so)ves povert/ #ai., 2ditor in Chie o Coreign 8olicy, Director o the 3ational 2ndowment or Democracy, <ember o the )orld 2conomic Corum9s ,nternational <edia Council, and Chairman o the Aroup o 4', %< [<oises, <arch5-pril, OThing -gain0 Alobali+ation http055www( oreignpolicy(com5story5cms(phpHstoryQidW7I7M]
.Alobali+ation ,s by and or Gich 8eople(. Ao

tell the ,ndians( *r, or that matter, the Chinese, or the emerging middle classes in /ra+il, Turkey, Bietnam, and countless other countries that owe their recent success to trade and in!estment booms acilitated by globali+ation( #ntil the inancial crisis broke out in &''M, the middle class in poor countries was the astest@growing segment o the world9s population( This trend will undoubtedly slow, and in some countries it will be tragically re!ersed as the crisis pushes back large numbers o people into the ranks o the poor( /ut the act is that in the past two decades, a signi icant number o poor countries succeeded in li ting tens o millions out o po!erty thanks to globali+ation ( ,n China, or example, the po!erty rate ell IM percent between 6=M6 and &''4( China and ,ndia are the
paradigmatic examples( #n ortunately, they are also paradigmatic examples o countries where ab"ect po!erty coexists with obscene wealth( ,n poor and rich countries alike, economic ine1uality has become a ma"or concern and globali+ation, especially the reer trade it produces, o ten gets blamed as the source o widening income disparities( ,t%s maddeningly hard, though, to pro!e that globali+ation actually produces ine1uality ( )e don9t e!en know whether ine1uality in the world is going up or down( )hen economists 8inelopi Aoldberg and 3ina 8a!cnik recently examined the connection between globali+ation and ine1uality, they could not establish a causal link between the two @@ e!en a ter sur!eying all the ma"or studies on the sub"ect and examining the best a!ailable data( ,n &''M, economists $udhir -nand and 8aul $egal published the results o their e1ually ambitious sur!ey o recent research on global ine1uality( They, too, ailed to establish a clear trend( .,t

is not possible to reach a de initi!e conclusion regarding the direction o change in global ine1uality o!er the last three decades,. they wrote( *n the other hand, the e!idence that absolute po!erty has sharply declined during the same time rame is o!erwhelming( :rote!tionis. (niH(e)/ h(rts the poor :anagari/a$ :ro0essor o0 ,!ono.i!s at Co)(."ia &niversit/$ 3 [-r!ind, O<iracles and Debacles0 Do Cree@trade $keptics ha!e a CaseH, http055www(bsos(umd(edu5econ5panagariya5apecon58olicyU&'8apers5miraclesU&'and U&'de bacles@panagariya@re!@<archQ'7(pd ;] - key goal o this essay is to demonstrate that systematic e!idence on the growth experience during the past 7' years o ers little support to the hypothesis that countries per orm better under import substitution than outward orientation( Birtually all growth miracles we can identi y are associated with rapid expansion o trade rather than wholesale substitution o imports by domestic production( 2!idence also ails to point a inger at ree trade as the cause o economic ailures or what , call Odebacles( Declines in per@capita incomes on a sustained basis are rarely associated with sustained import surges( *n the po!erty ront, there is o!erwhelming e!idence that trade openness is a more trustworthy riend o the poor than protectionism( Cew countries ha!e grown rapidly without a simultaneous rapid expansion o trade( ,n turn, rapid growth has almost always led to reduction in po!erty( ,t is rare or countries to grow at E percent or more in per@capita terms on a sustained basis and ail to achie!e substantial reduction in po!erty( -!ailable e!idence simply does not support the Otrickledown claims that rapid growth bypasses the poor( ,nstead, it points to what /hagwati calls the Opull@up e ect that absorbs e!er@increasing numbers o the poor into gain ul employment(

Free Trade Good--Wake Forest 2010-11 67/72 :rivita>ed water now Cook$ %+ [8eter, 2xecuti!e Director o the 3ational -ssociation o )ater Companies, Deputy Director o the #($( 2n!ironmental 8rotection -gency%s * ice o Around )ater and Drinking )ater, >uly 64, OGoiling the )aters0 - Debate on )ater 8ri!iti+ation, 8art Ci!e Arist, http055www(grist(org5comments5soapbox5&''75'75645cook5]
-ccording to our agreement this is my last o ering in this dialogue( , ha!e pro!ided my comments together with the acts and igures upon which they are based( )hile , ha!e welcomed your opinions and considered your !iews, , ound little i any support or your arguments( Lour opinions, while long on rhetoric, all short on acts( Cor example, in your last posting you

AT9 Water :rivati>ation #on-&niH(e

say, .,t has been widely acknowledged that bringing in large multinational corporations with a thirst or pro its has not sol!ed the problems o access , a ordability, or accountability in these communities(. .)idely acknowledged. *y whom. $tatistics we pro!ided contradict your accusation( 2xamples include0 =7 percent contract renewal or public@pri!ate partnerships :which include more than "ust the chemical deli!ery and short@term contract work that you mentioned;F water@ser!ice business growth o 6= percent per yearF and support or public@pri!ate partnerships rom the #($( Con erence o <ayors( -ll o these acts strongly a irm that pri!ate water companies are, indeed, playing an important role in the pro!ision o water ser!ice(

Free Trade Good--Wake Forest 2010-11 6</72

AT9 Water :rivati>ation #ot @inked To Trade


Water privati>ation not )inked to trade Cook$ %+ [8eter, 2xecuti!e Director o the 3ational -ssociation o )ater Companies, Deputy Director o the #($( 2n!ironmental 8rotection -gency%s * ice o Around )ater and Drinking )ater, >uly 64, OGoiling the )aters0 - Debate on )ater 8ri!iti+ation, 8art Ci!e Arist, http055www(grist(org5comments5soapbox5&''75'75645cook5]
-nother example o your rhetorical opinion unsupported by act is the accusation that water companies working in more than one country .may lea!e our go!ernments open to trade disputes in the uture(. , would be !ery interested i you ha!e any legal documentation and examples supporting this theory, because the acts , ha!e state otherwise ( ,nternational

agreements and laws do not take precedence o!er #($( law in the pro!ision o water( The )orld Trade *rgani+ation itsel is on record stating that international trade agreements are irrele!ant to water issues, regardless o ownership( ,n a )T* document entitled .A-T$ Cact and Ciction, <isunderstandings, and $care $tories0 The )T* ,s 3ot - ter Lour )ater ,. the )T* clearly states, .it is o course inconcei!able that any Ao!ernment would agree to surrender the right to regulate water supplies, and )T* <embers ha!e not done so(.

Free Trade Good--Wake Forest 2010-11 70/72

AT9 Water :rivati>ation :rivati>ation Good


:rivati>ation in!reases e00i!ien!/ and saves the environ.ent Cook$ %+ [8eter, 2xecuti!e Director o the 3ational -ssociation o )ater Companies, Deputy Director o the #($( 2n!ironmental 8rotection -gency%s * ice o Around )ater and Drinking )ater, >uly 64, OGoiling the )aters0 - Debate on )ater 8ri!iti+ation, 8art Ci!e Arist, http055www(grist(org5comments5soapbox5&''75'75645cook5] 8ri!ate water companies are working in the real world to address and sol!e the problems and challenges in!ol!ing the e icient and reliable deli!ery o sa e water( Those who truly care about these issues should not let themsel!es be clouded by misin ormation( Those who re!iew the acts, care ully and dispassionately, will conclude that pri!ate water companies, either through public@pri!ate partnerships or utility ownership, ha!e a strong record o bringing e iciency, sa!ings, and en!ironmental responsibility to communities and municipalities( -nd, in !irtually all o these arrangements, the control and ownership o water remains in the hands o local or regional go!ernment entities( $ince our agreement pro!ides you, <aude and $ara, the inal comment in this dialogue, , urge you to set aside mere opinion and ocus on the acts, so we can work together to embrace solutions that will truly meet the needs o water customers both domestically and internationally( )ater is too precious a resource and the needs o those we ser!e too important or us to seek con rontation instead o !iable solutions( :rivati>ed water so)ves "est Cook$ %+ [8eter, 2xecuti!e Director o the 3ational -ssociation o )ater Companies, Deputy Director o the #($( 2n!ironmental 8rotection -gency%s * ice o Around )ater and Drinking )ater, >uly 64, OGoiling the )aters0 - Debate on )ater 8ri!iti+ation, 8art Ci!e Arist, http055www(grist(org5comments5soapbox5&''75'75645cook5]
,n addition, , cannot agree with your conclusion that where public@pri!ate partnerships were prematurely ended, the pri!ate partner was to blame and thus the entire concept o partnerships or pri!ate ownership cannot work( -s , ha!e explained

in my pre!ious emails, the reasons or ending those pro"ects were !ery complicated and cannot simply be blamed on the pri!ate partners or laws in the partnership model( The ew pro"ects you ha!e cited in your criticism do not constitute a compelling case that pri!ate@ sector solutions do not work, either domestically or internationally, especially in the ace o substantial acts and statistics to the contrary( -nother act is that water customers in the #($( en"oy many go!ernment protections( 8ri!ate water@ser!ice systems, whether domestic@ or oreign@owned, must comply with the same health and economic regulations in the #($( The #($( 2n!ironmental 8rotection -gency and state agencies regulate drinking@water 1uality and standards, regardless o who owns or operates the system( Curthermore, and this is another important act, it is not uncommon or public@pri!ate partnership contractual agreements to re1uire en!ironmental per ormance le!els that exceed state and ederal re1uirements( 2conomically, a oreign owner%s rates, pro its, and capital in!estments are regulated by the same mechanisms that regulate a domestic@owned system @@ the state 8ublic #tility Commissions in the case o pri!ately owned utilities, and the municipalities in the case o public@pri!ate partnerships( Coreign companies, like domestic companies, ha!e a business reputation to maintain, which is a strong incenti!e to pro!ide excellent ser!ice( Though corporate
head1uarters may be abroad, the water@utility management and operations are always locally controlled because o the nature o the ser!ice pro!ided( The consumer in *hio is drinking *hio water, managed and deli!ered by *hioans( , am also struck that some o your positions seem inconsistent( *n the one hand, you admirably state concern or the poor and that access to water is essential( Lou also concede that the municipally run systems in /oli!ia were in .disarray,. to use your word, prior to the pri!ate companies% participation( ?owe!er, in spite o acknowledging the ailures o the municipally run

systems, you still pre er the municipal model, which brought about the disarray, the high rates, and lack o access or the poor in the irst place(

Free Trade Good--Wake Forest 2010-11 71/72

AT9 Water :rivati>ation Water Wars 1e0ense


#o risk o0 water wars 1een 37 [Thali , ,8$, -ug &4, O)ater )ars a <yth, ,8$ online]
.Despite

the potential problem, history has demonstrated that cooperation, rather than con lict, is likely in shared basins,. #32$C* concludes( The $tockholm ,nternational )ater ,nstitute :$,),; says that 6'@ to &'@year@old arguments about con lict o!er water are still being recycled( . $uch arguments ignore massi!e amounts o recent research which shows that water@scarce states that share a water body tend to ind cooperati!e solutions rather than enter into !iolent con lict,. the institute says( $,), says that during the entire .inti ada. @@ the ongoing 8alestinian uprising against ,srael in the occupied territories o )est /ank and Aa+a @@ the only thing on which the two warring parties continued to cooperate at a basic le!el was their shared waters( .Thus, rather than reaching or arguments or the %water war hypotheses,% the acts seem to support the idea that water is a uniting orce and a potential source o peace rather than !iolent con lict(. $,), said(
Ahosh, co@author o the #3D8 study, pointed out se!eral agreements which were .models o cooperation., including the ,ndus )aters Treaty, the ,srael@>ordan accord, the $enegal Gi!er De!elopment *rganisation and the <ekong Gi!er Commission( study sponsored by the )ashington@based )oodrow )ilson ,nternational Centre or $cholars points that despite

newspaper headlines screaming .water wars are coming^., these apocalyptic warnings ly in the ace o history( L3o nations ha!e gone to war speci ically o!er water resources or thousands o years( ,nternational water disputes @@ e!en among ierce enemies @@ are resol!ed peace ully, e!en as con licts erupt o!er other issues,. it says( The study also points out instances o
cooperation between riparian nations @@ countries or pro!inces bordering the same ri!er @@ that outnumbered con licts by more than two to one between 6=74 and 6===( )hyH ./ecause water is so important, nations cannot a ord to

ight o!er it( ,nstead, water uels greater interdependence( /y coming together to "ointly manage their shared water resources, countries can build trust and pre!ent con lict,. argues the
study, "ointly co@authored by -aron )ol , -nnika Dramer, -lexander Carius and Aeo rey Dabelko(

Free Trade Good--Wake Forest 2010-11 72/72

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