"FADING FAITH IN FREE TRADE"
The
following is a summary of an article appearing in "America" (July 5-12,
2004) by Robert A. Senser [former U.S. Foreign Service employee; editor
of bulletin"Human Rights for Workers"]
Some economists are now
having second thoughts about free trade policies. Of particular concern
are the protection of human rights, worker health and safety standards
and environmental protection.
One economist, Joseph E. Stiglitz,
[2001 Nobel prize, chairman Council of Economic Advisors in 1st Clinton
administration, senior VP World Bank] says, "At the end of the Cold War,
the U.S., as the sole superpower, had an opportunity and a
responsibility to reshape the global economic order based on principles
like social justice. . . . But we lacked a vision. The financial and
commercial sector in the U.S. did have a vision. They might not believe
in the government having an active role, except when it advanced their
interest. The active role they pushed for was to gain market access. . .
. As a result we got some very unbalanced trade agreements."
Stiglitz (and economist Jagdish Baghwati) take issue with two particular sore points.
1.
Protection of intellectual properties [i.e. patents and copyrights] -
"stronger intellectual property rights typically make some better off
(the drug companies) and many worse off (those who might otherwise have
been able to purchase the drugs."
[Stiglitz] and "Pharmaceutical and
software companies muscled their way into the [World Trade
Organization] and turned it into a royalty-collection agency . . ."
[Bhagwati]
2. Bhagwati, on the question of whether capital should
have an unrestricted freedom to flow from one country to another, says
this is in the interest of Wall Street "which it equates with the good
of the world."
Paul C. Roberts [Asst. Secty of Treasury in Reagan
administration] fears present policies on movement of capital threaten
to turn the U.S into a third world economy in 20 years. Unfettered
movement of capital means factories and machinery can be moved abroad to
populous, labor-surplus countries like China and India.
Author
Senser says it is ironic that owners of capital (investments and
property real and intellectual) receive beneficial protection under
trade policies while jobs, not "owned", do not.