Global Free Trade Are so Obvious, Why

¶ … global free trade are so obvious, why are nations sometimes so reluctant to embrace measures that might enhance it?) When looking at the nations of the world and their varying levels of acceptance of global free trade, we must see them in terms of popular opinions, the opinions of vital factions within the government, and the nature in which the given society would be changed. Many non-western societies hesitate to open trade barriers because of a perceived loss of sovereignty.

Countries that harbor bitter recent memories of foreign dominance, such as India, remember a world where they were essentially the 'back office' of a mother country that played host to all important decisions regarding the fate of the country's workforce and natural resources. It should be remembered that the government of Saddam Hussain and the political party that he came to lead (the Ba'ath party) were raised on a perceived sense of imperialism. There are several alternate economic systems that still harbor an emotional appeal for such societies.

One is predicated on the 'infant industry' concept, which was developed in Germany in the 19th century. This is the belief that 'new' economies will never develop a manufacturing base if trade precludes them from developing the technological strengths that will allow them to create quality high-end consumer products. This has lead to many very counter-intuitive trade restrictions. For instance, in New Zealand prior to the reformist labor government of Roger Daniels in the 1980's, such restrictions placed ultra-high tariffs on the importation of televisions but not television components.

The result was not that New Zealand started producing export-quality televisions, but rather that they would pay private firms in Japanese to disassemble Japanese televisions and ship them to New Zealand, where they could be re-assembled. Many developing countries such as India forbid the import of used cars for fear that these cars will prevent India from developing an automobile industry.

David Ricardo developed modern thinking regarding free trade in the 19th century, who was prominent in the Anti-Corn-Law League, an organization of Whigs (liberals) who argued that free trade would end hunger. His idea, comparative advantage, taken to its logical extreme, would lead to the regional diversification of production. It was believed that such a system would lead to peace, as countries would become interdependent. However, the military interests of national governments are adverse to interdependence.

Conservative governments, which have become increasingly pro-trade, will often support industries vital to the military, such as steel. There is also a fear of the encroachment of western or consumerist values. In Saudi Arabia, for instance, Internet access was not available until 1999 because it was felt to be a symbol of western decadence. Several weeks ago, 'Barbie' dolls were banned in the fundamentalist kingdom because they were thought to represent international Jewry. Alternately, McDonald's was.