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Tuesday, November 25, 2003

Free Trade and the Democratic Debate
Free trade is an acrimonious issue. The sides are so polarized that they cannot stop fighting with each other, even when their are issues in which the anti-globalization movement and free-trade government and companies might agree on (John Audley et al., NAFTA's promises and realities.) Yesterday's democratic debate, held in Iowa, did little to make me feel that there is any depth to anti-globalization arguments.

I should start at my entry point. I watched the repeat broadcast of the debate after seeing some commentary. Chris Matthews had on a commentator from Telemundo. He was asked what issues swayed Latino voters to one candidate or another. The commentator said that while two of the candidates were drawing the interest of Latinos, the democratic candidates were not addressing free trade in ways that would interest them. Simply put, Latinos were more likely to have relatives in developing countries whose lives would be affected by changes to trade laws. My reading of this comment (with lots of my own interpretation): the candidates are not engaged in the greater issues of globalization. They are satisfied with placing controls on agreements (standards of production, whether they be the equivalent of US labor and environmental protections or not). The candidates concern is limited to the outsourcing of work and the migration of capital. I do not think that the candidates care about the problem of development in developing countries.

I don't see how their policies don't add up to protectionism by other means. The democrats make the assumption that the advantages of overseas production arise from the miserable conditions that foreign workers live in: they will accept poor wages and working environments because they are trapped in misery. In my opinion, putting excessive standards on the developing economies will trap them: they would become more dependent on foreign capital in order to introduce the advanced industries necessitated by environmental standards.

Democrats make the assumption that the independence of US is at stake. This is overdrawn. No one has yet asked whether the jobs in manufacturing that have been lost are recoverable. US is well on the way to a service economy without globalization. The "loss of jobs/flooding of stores with Chines goods" paradigm is not something that democrats share. It is not even something that they just share with social conservatives like Gary Bauer (thanks for the reference, Christoph). Even government are afraid of this: the imbalanced trade agreements that governments make and the subsidies that they grant to domestic producers are designed to prevent the onslaught of cheaply-made imports.(Audley et al) This is a concern for the Free Trade argument, one that has led to problems for developing economies. WTO had, in fact, become a form of protection for advanced countries.

Basically, democrats have reworked the anti-free trade argument into a nationalist one. The broader implications of globalization are barely touched upon. There is no attention to the needs of developing economies. Why should this be important? Poverty, instability, and lack of opportunity form the basis for dissatisfaction in third-world countries. It should form a part of out foreign and security policies that will allow some measure of prevention.

I have excepted the statement of the individual candidates. I have not made any judgements on a single candidate--my analysis is meant to deal with the DNC as a whole. I am certain that I will say more about this in the future.



Posted by: Nathanael / 10:08 AM : (0) comments

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