Trade, some say, is the engine that moves the world. As an engine, it sucks the energy out of a source to produce something, whatever that something might be. However, resources -labor or capital- do not move around markets with magical hands, and powering the engine of trade is sucking the developing world dry, while keeping comfortably fresh a small portion of the world. The mistakes leading to the current disparities in our planet have been the result of narrow-minded theories and assumptions of economics sitting at their big desks in Washington and London. While these economist rewrite their theories and models realizing that 'test sites' have collapsed, millions and millions of people starved in slums around the developing world.
This term, my last term of classes, I enrolled in an advanced seminar class on politics of world trade. I am very excited, and partially overwhelmed already. We have been discussing some of the issues with market reform during the 1980s and 1990s and I am experiencing flashbacks to the structural reform horrors in Costa Rica... banks closing, thousands of workers fired every Friday, and the common excuse of fiscal austerity to justify limiting social security and health care to those who had so-rightfully deserved.
For the first part of the term we will analyze the current processes at the
World Trade Organization, particularly the Doha Rounds for trade and development. Although the talks collapsed last year, we will look at the some alternative policies suggested by economist around the globe, including Joseph
Stiglitz in his most recent publication "Fair Trade for All" -which I strongly recommend. The second part of the term will allow me to concentrate on current trade treaties outside of the
WTO, including NAFTA and
CAFTA.
I will try to share thoughts and reactions now and then, and encourage you share your responses to my thoughts and concerns.
