Jagdish
Bhagwati can barely sit still in his office chair
as he wriggles in delight at being given free rein
to air his views on free trade and globalization.
Words burst forth as though from a geyser, his
opinions, anecdotes and sharp wit irrepressible.
Questions meant to guide the interview barely contain
Bhagwati's excited torrent: re-directing the conversational
flow requires the spoken equivalent of a stake
and sledgehammer.
When
asked about the current Bush administration's
track record on international trade and support
for the developing world, he responded with a
joke that captured the fundamental divide separating
policy makers from theorists:
"A woman is screaming,
'Help, help! My husband
is beating me!' I say,
'Look, hang in there.
After 25 years of economic
development, you'll
be taken care of.'
And that's how some
economists really argue," he
cried incredulously.
In his refreshingly
irreverent manner he
continued, "No,
I want to go and nail
that bastard against
the wall right away.
And, then, the really
interesting question
is, what's the counterpart
in policy?" Evidently,
Bhagwati himself has
no problem bridging
the divides between
theorists, policy makers
and the general public.
His incisive wit and
outspoken views complement
a unique ability to
communicate with the
non-expert without
compromising his standing
among the intellectual
heavyweights.
In
fact, it takes a
while to reconcile
Bhagwati's imposing
public figure--Special
Adviser to the UN on
Globalization, External
Adviser to the Director
General of the WTO,
acclaimed Columbia
University economics
professor and, currently,
André Meyer
Senior Fellow in International
Economics at the Council
on Foreign Relations--with
the exuberant, utterly
approachable character
who jiggles with mirth
in person.
He
referred to the original
architects
of GATT as "very
good free-traders." Then
added, "Almost
as good as me!" at
which point he nearly
slid out of his chair
giggling.
The
result, however,
is a formidable influence
on public opinion.
As Robert Law of The
Financial Times described
it, "One of the
joys of Jagdish Bhagwati
is that he has never
succumbed to the all-too-common
sin of holing up in
an ivory tower. Instead,
he has established
his reputation in the
area of trade by bringing
his insight to bear
on popular debate."
As
a self-described "public
nuisance," Bhagwati
is a vociferous thorn
in the side of US policymakers,
a critic who will not
be silenced on matters
relating to protectionism
and the obstruction
of free trade.
And there is certainly
plenty for him to protest
right now. Since the
US announced a 30 percent
tariff on steel imports,
the European Commission
has announced its own
set of retaliatory
steel tariffs. Canada
has also begun exploring
reprisals for a 29
percent tariff announced
on softwood. Meanwhile,
other domestic industries
(timber, agriculture
and textiles) are actively
seeking similar protection.
The regular din of
special-interest groups
has suddenly escalated
into a looming trade
war. Is this the ringing
endorsement of free
trade that George Bush
had in mind at Doha
when he opened a new
round of world trade
talks?
Bhagwati's
response to the situation
on
steel launches an animated
tirade: the matter
has been mishandled
from more than a year
ago, when accusations
emerged about massive
subsidization of the
steel makers abroad
that allowed them to
dump their exports
here below cost. According
to Bhagwati, the administration's
fatal blunder occurred
when it took the matter
to the US International
Trade Commission (USITC),
instead of to a less-biased
multilateral body like
the WTO. Never imagining
that, after two years
of falling steel imports,
the USITC would rule
in favor of the domestic
steel industry (how
could the foreign competition
be accused of dumping
if imports are falling?),
the administration
had counted on an USITC
decision that would
save it from having
to protect the industry.
Instead, as Bhagwati
put it in his characteristically
outspoken way, "Those
wretched fellows [at
the USITC] unanimously
found injury!"
Bush
had left himself
very little maneuverability.
The decision by the
USITC entitles the
domestic steel industry
(whose votes could
be key to swing constituencies)
to retaliatory action
by the US. "So
what would you do if
you were Bush? I have
no doubt that Bush
is a free-trader S
but the minimum hope
[the administration]
has right now is that
the European Union
will take it to the
WTO and they will find
almost certainly that
the [USITC] decision
was wrong. If so, the
matter will be automatically
vacated in two years,
and by that time the
election is out of
the way."
It
is a remarkably sympathetic
analysis,
especially coming from
someone who has been
described as "the
prime warrior for free
trade," of a protectionist
stance that makes absolutely
no economic sense.
Yet it is precisely
this flexibility--that
of an influential academic
who can also negotiate
the intricacies beyond
the ivory tower -that
has made Bhagwati so
influential. What bothers
him, however, are the "deaf
ears in Washington" who
do not afford economists
the same respect.
"These
guys have come in,
like [US Trade
Representative Robert]
Zoellick, and many
of them do not understand
that the multilateral
system is better than
the bilateral system.
A whole lot of people
think that any kind
of trade liberalization
is good, whether it's
bilateral, regional
or multilateral: they
see it all as reducing
barriers. What they
don't understand is
that if you reduce
barriers for only a
few people, than you're
increasing the handicap
of the people who are
outside."
A
recent article in
The Economist described
Bhagwati as "a
liberal in both the
old and new senses
of that word: he is
for free trade, but
he is for ambitious
social policies too."
His
idealism seems to
coexist comfortably
with his realism (some
might even call it
cynicism). He remarked
at one point, "Politicians
always use whatever
goes on to advance
their agenda and what
you should ask as an
economist is not whether
they're smart enough
or devious enough to
do that--you are to
ask what the agenda
is."
But
it could only be
idealism that fires
what a former student
described as Bhagwati¹s "enormous
energy, bordering at
times on the frenetic.
While also teaching
and supervising students,
traveling extensively
and writing dozens
of articles a year,
Bhagwati has also authored
and edited a steady
stream of books."
As he recounted a
confrontation with
an anti-globalization
protestor that he had
outside the World Economic
Forum this winter,
Bhagwati did not lament
his youthful opponent's
misguided views as
much as he lamented
his colleagues' apathy.
He said he believes
it is the moral obligation
of other free-traders
to be out there campaigning
for their principles
as actively as he does.
As
for the increasingly
vociferous anti-globalization
sentiment among youth,
he attributed that
to "the tyranny
of the missing alternative." "The
young kids see markets
triumph and capitalism
in one form or another
surviving, while alternatives
are collapsing--even
Sweden is turning away
from its welfare state.
The Soviet bloc has
collapsed. So where
is your model? There
is no alternative."
Meanwhile,
television and the
Internet have
brought home the ills
of the world in an
intensely intimate
and disturbing way.
The result, he said,
is "the dissonance
that now exists in
many of globalization's
critics between empathy
for the misery of a
distant elsewhere,
and an inadequate intellectual
grasp of what can be
done to ameliorate
that distress."
While
phrases such as "inadequate
intellectual grasp" may
come across as haughtily
dismissive of his opponents,
Bhagwati shares the
idealism of these protestors
and sees great hope
in them. His struggle
with them, he said,
is really a "battle
to get their ideals
directed into something
desirable," as
opposed to rioting
in the streets. But
the important thing,
he said, is dialogue. "There
should be more of a
debate,² he said. ³Bring
Noam Chomsky," he
challenged the legendary
MIT linguist and prominent
anti-free-trader, "and
have him debate publicly
with me, for example."
Ironically,
the two may share
more common
ground than they would
like to admit. Noam
Chomsky argues that "The
clique of developed
nations is developed
not because of free
trade but because of
mutual protectionism," which
is precisely Bhagwati's
argument against regional
and bilateral agreements.
Chomsky
also warned the group
that gathered
at Porto Alegre, Brazil,
for the World Social
Forum (WSF) to be "scrupulously
careful not to describe
itself as an anti-globalization
forum S We want globalization
in the interests of
the world population," he
clarified.
There
is no doubt that
sparks would indeed
fly if Chomsky were
to answer Bhagwati's
challenge. Would it
be enough to catch
the attention of the
policy makers in Washington?
They may have "deaf
ears," but perhaps
they would not be able
to ignore such heated
debate.
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