A lot of people blame trade for the world's problems. Anti-trade Republicans and anti-trade labor unions blame trade for unemployment in the USA (and other developed countries). Anti-trade activists in the Democratic and Green parties blame globalization and world trade for increasing poverty in the developing world.
In a previous posting (see archives) I argued that the real problem for the unemployed in the USA was lack of options for retraining and changing industries.
I recently found an interesting article about how trade effects the developing world. Its by Jagdish Bhagwati and T.N. Srinivasan (two economists from Columbia and Yale respectively). And its short (12 pages) so it won't take too long to read. Here are some of the highlights:
* An overwhelming majority of the world's poor live in rural areas of China and India.
* China and India have both dramatically increased their openness to world trade in the last 25 years.
* China is the fastest growing economy in the world and India is the 11th fastest growing economy in the world.
* Both China and India have dramatically reduced their poverty levels (both have cut poverty roughly in half since the late 1970s).
The authors argue that empirical evidence directly refutes the arguments that globalization and trade are making poverty worse.
Comments? Disagreements? Controversies?
Sunday, May 30, 2004
Posted by Raised By Republicans at 9:52 AM