The Myth of Free Trade

[GrGr]

Chalmers Johnson on the Myth of Free Trade
Truthdig

*snip

" The Third World was not always poor and economically stagnant. Throughout the golden age of capitalism, from the Marshall Plan (1947) to the first oil shock (1973), the United States was a Good Samaritan and helped developing countries by allowing them to protect and subsidize their nascent industries. The developing world has never done better, before or since. But then, in the 1970s, scared that its position as global hegemon was being undermined, the United States turned decisively toward neoliberalism. It ordered the unholy trinity to bring the developing countries to heel. Through draconian interventions into the most intimate details of the lives of their clients, including birth control, ethnic integration, and gender equality as well as tariffs, foreign investment, privatization decisions, national budgets, and intellectual property protection, the IMF, World Bank, and WTO managed drastically to slow down economic growth in the Third World. Forced to adopt neoliberal policies and to open their economies to much more powerful foreign competitors on unequal terms, their growth rate fell to less than half of that recorded in the 1960s (1.7 percent instead of 4.5 percent).

Since the 1980s, Africa has actually experienced a fall in living standards?which should be a damning indictment of neoliberal orthodoxy because most African economies have been virtually run by the IMF and the World Bank over the past quarter-century. The disaster has been so complete that it has helped expose the hidden governance structures that allow the IMF and the World Bank to foist Bad Samaritan policies on helpless nations. The United States has a de facto veto in both organizations, where rich countries control 60 percent of the voting shares. The WTO has a democratic structure (it had to accept one in order to enact its founding treaty) but is actually run by an oligarchy. Votes are never taken."

*snip*

Note what happened in the early 1970's. The US lost the war in Vietnam and fell off the cliff financially. Practically bankrupt from war spending, Nixon had to cut the last ties to the gold standard and inflation exploded. Ever since 1974 then the US has lived on increasing debts. That sea change in policy has been gaining momentum to this day when the US is finally beginning to reach it's debt limits and the early signs of US economic collapse are becoming evident.

 

[halik]

How exactly is WTO catering to developed nations?
I can accept the argument that the IMF is one of the reasons why africa hasn't gone anywhere for the past 50 years (their money is a source of control for all the respective despots), but WTO>

 

[GrGr]

Originally posted by: halik
How exactly is WTO catering to developed nations?
I can accept the argument that the IMF is one of the reasons why africa hasn't gone anywhere for the past 50 years (their money is a source of control for all the respective despots), but WTO>

The WTO enforces (potentially unfair) trade restrictions, subsidies and tariffs.

 

[bamacre]

The USA has always been a prosperous nation. Now see sig...

 

[MadRat]

WTO is made up of 130+ nations with 80% of the voting membership from this so called "Third World". There is no way this joker can honestly say the rich countries control 60% of the vote.

Furthermore, the only people to blame for the Third World's failed policies is themselves. To say population control is a bad thing, especially in countries unable to feed their populations because of their own civil wars and feudalistic societies, is completely asinine. By social integration they mean military and monarchical societies cannot reign unchecked; either peasants have a fair social footing or they do not trade in the developed world. (OMG - the developed world expects its poor brethren to learn from their own history!) Personal property laws were largely nonexistent in the undeveloped world; the right of ownership is a key pillar in a capitalistic society. And giving women the decency to have a say in their daily lives is something that must exist; tribes in African countries still practice female circumcision even today! If the U.S. is going to do business with the developing world then it needs to be on equal terms or they can pay a heavy price for cheating. When it comes down to it, the only way to undercut the developed world is to cut corners. These issues are about social justice and have zero to do with the Third World's success or failure.

 

[CanOWorms]

Since the 1980s, Africa has actually experienced a fall in living standards

It's kind of interesting that European interference in African affairs became more focused since that time too. But let's ignore it. I mean, the Rwanda genocide surely didn't impact any living standards.

 

[BoberFett]

Uh oh, you said the words: gold standard. Be prepared to be called a loon and a Paulbot.

 

[IronWing]

US Good Neighbor/Alliance for Progress policies prior to the '70s were more propaganda than anything. The US has pretty much always viewed foreign lands as either threats to be contained (through winsome diplomacy or through military might) or resources to be exploited.

 

[spittledip]

Originally posted by: MadRat
WTO is made up of 130+ nations with 80% of the voting membership from this so called "Third World". There is no way this joker can honestly say the rich countries control 60% of the vote.

Furthermore, the only people to blame for the Third World's failed policies is themselves. To say population control is a bad thing, especially in countries unable to feed their populations because of their own civil wars and feudalistic societies, is completely asinine. By social integration they mean military and monarchical societies cannot reign unchecked; either peasants have a fair social footing or they do not trade in the developed world. (OMG - the developed world expects its poor brethren to learn from their own history!) Personal property laws were largely nonexistent in the undeveloped world; the right of ownership is a key pillar in a capitalistic society. And giving women the decency to have a say in their daily lives is something that must exist; tribes in African countries still practice female circumcision even today! If the U.S. is going to do business with the developing world then it needs to be on equal terms or they can pay a heavy price for cheating. When it comes down to it, the only way to undercut the developed world is to cut corners. These issues are about social justice and have zero to do with the Third World's success or failure.

One cannot Blame organizations like World Bank and IMF for ruining 3rd world countries. They do, however, exploit them rather than help them.

Also, America has bullied many 3rd world countries and used threats (money related of course) to get them to do what America wanted. Of course America also invaded several 3rd world countries also to maintain a friendly govt or put one in place.

 

[Farang]

Corruption is the biggest problem the third world faces. In Cambodia, I met a man who had worked as a medic for 12 years in a refugee camp. He applied for a job at a hospital when the camp closed. The hiring manager didn't care about his experience, he told the man to pay 2,000 USD and he'd have the job. He couldn't afford it and now works as a motorcycle taxi, making a buck or two a day, some days he has to choose between the $1-per-day fee for his children to go to school and putting rice on the table.

The problem here is that the path to a good job in these countries is not an education. It is 2,000 USD. So you end up with the qualified out of work and the underqualified in top positions. What is the point in getting an education in this system? There isn't one. The cycle of incompetence continues and the quality of labor supply deteriorates. It really is a shame because there is a huge supply of potentially intelligent, hard working people.

 

[Vic]

I have never been of the opinion that this "golden age" in the 3rd world ever existed. Granted, corruption is rampant, and the WTO/IMF/etc. aren't helping by any stretch of the imagination, but what the OP blames as the result of neoliberal forces is more likely the result of the sudden end of centuries of harmful colonization.

 

[Throckmorton]

Originally posted by: MadRat
WTO is made up of 130+ nations with 80% of the voting membership from this so called "Third World". There is no way this joker can honestly say the rich countries control 60% of the vote.

Furthermore, the only people to blame for the Third World's failed policies is themselves. To say population control is a bad thing, especially in countries unable to feed their populations because of their own civil wars and feudalistic societies, is completely asinine. By social integration they mean military and monarchical societies cannot reign unchecked; either peasants have a fair social footing or they do not trade in the developed world. (OMG - the developed world expects its poor brethren to learn from their own history!) Personal property laws were largely nonexistent in the undeveloped world; the right of ownership is a key pillar in a capitalistic society. And giving women the decency to have a say in their daily lives is something that must exist; tribes in African countries still practice female circumcision even today! If the U.S. is going to do business with the developing world then it needs to be on equal terms or they can pay a heavy price for cheating. When it comes down to it, the only way to undercut the developed world is to cut corners. These issues are about social justice and have zero to do with the Third World's success or failure.

Who's to blame in countries where the United States propped up dictators and overthrew democratically elected leaders in favor of America-friendly fascists?

Whose fault is it when the World Bank forces restrictions on social services like education and healthcare on poor countries, and the poor are kept poor for the benefit of first world corporations?

 

[miketheidiot]

Originally posted by: halik
How exactly is WTO catering to developed nations?
I can accept the argument that the IMF is one of the reasons why africa hasn't gone anywhere for the past 50 years (their money is a source of control for all the respective despots), but WTO>

M a l a r i a

stagnation in sub-saharan africa has little to nothing to do with either the imf or the world bank.