Embracing free trade
Brian Passikoff
Graduate Student
This letter is in repsonse to a column entitled "Neoliberalism 101" from Monday's issue of The Observer.
Like the vast majority of protesters in Quebec City, Aaron Kreider's heart is in the right place, but his intellectual arguments about free trade are narrow, illogical and misinformed. Contrary to Kreider's assertions, the Free Trade Area of the Americas does not preclude substantial investment in human capital.
Furthermore, within a neoliberal political-economic framework, governments can successfully address each instance of injustice Kreider mentions. From a material welfare, human development and democracy-expansionist perspective, free trade, even applied haphazardly, overwhelmingly benefits society.
During the past 30 years countries such as South Korea, Taiwan, Hong Kong, Chile, the Czech Republic and Poland have witnessed substantial elevations in living standards while successfully lowering barriers to trade and political and bureaucratic transparency. Perhaps as importantly, despite what Kreider suggests, gains in public health, education and other measures of human development in such countries have been as substantial as increases in their per capita GDP. In fact, the UN Development Report suggests that developing countries that have most embraced neoliberalism have the highest overall gains in well-being.
The creation of material wealth has proved detrimental to the environment. While Kreider does not touch on this, further expansion of free trade will inevitably hasten negative environmental impact. Cuba is one of the few countries that, while rejecting neoliberalism, have still effectively increased levels of human development. Per capita, Cubans do relatively little harm to the environment. However, most world citizens would be unwilling to give up present and future material well-being for a political and economic system such as Cuba's.
Countries that have consistently embraced free trade and neoliberalism historically have benefited, both economically and politically. As with any change, such policies will inevitably produce winners and losers. However, ensuring that none are left behind is completely within the realm of possibility of free trade and neoliberalism. Perhaps within this more reasonable framework Kreider could do more good advocating for "global justice and investment in people."
Brian Passikoff
Graduate Student
April 23, 2001
All Viewpoint Stories for Tuesday, April 24, 2001
