DOHA, Qatar-They say
that every analogy limps, but consider
this: Huge numbers of children who suffer
from what is called "attention deficit
hyperactivity disorder" (ADHD) are
given prescriptions for stimulant drugs
(such as Ritalin), which have the paradoxical
effect of calming them down.
That
allows them to stop fidgeting and to sit still at their
school desks and pay attention to their teachers. Although
this treatment remains controversial, any number of
studies have shown that it really does have this calming
and "settling" effect on these children and
enables them to concentrate on what their teachers
are trying to teach them.
One might think that this would make a dramatic
difference in the performance of these children
in school. Certainly that is what their parents
hope for. But again, paradoxically, scientific
studies have been unable to show any significant
improvement in their school grades. Could one say
the same thing about the effect of trade on development?
That is, logic suggests that trade should have
a most positive effect, but in many places the
record fails to show that happening. It stands
to reason that trade is an important way of generating
wealth. And, as UN Secretary General Kofi A. Annan
has said on several occasions, what developing
countries need is not less globalization-that is,
trade liberalization-but more of it.
And the World Bank puts an even sharper point
on the argument, saying that if the remaining obstacles
to free trade were removed, it would increase the
income of developing countries by as much as $500
billion a year. (And, to paraphrase the late Senator
Everett Dirksen: $500 billion here and $500 billion
there, and pretty soon you're talking real money!)
If that kind of money started rolling in to the
developing countries, or even a fraction as much,
they would soon find poverty a thing of the past-wouldn't
they? Well, the evidence suggests that, in many
countries, the effects of freer trade range from
mixed to worse.
In several poor countries, including Kenya, Mexico
and Bangladesh among others, efforts to liberalize
trade have impacted harshly on food security, on
environmental protection and on the livelihoods
of poor farm families. Perhaps the most highly
publicized case is that of the corn (maize) farmers
in the southern Mexico state of Chiapas after Mexico
became part of the North American Free Trade Agreement
(NAFTA).
Because these smallhold farmers suddenly found
themselves selling their output in competition
with the corn produced on more efficient factory-farms
in the Midwest US-and subsidized by the US government-they
found themselves unable to maintain themselves.
Many were forced off the land, while others took
part in a bloody revolt. The country suffered a
disastrous financial crisis, even though the number
of its millionaires grew significantly.
Similar, if less dramatic, reports have come from
countries from Uganda to the Philippines, from
Thailand to Jamaica. A good case can still be made
that, on balance, trade liberalization does more
good than harm. But, based on evidence like this,
it's clear that its benefits are not always as
advertised. Like the pills taken by those schoolchildren,
it doesn't always do as much good as some people
say it will.
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