Financial Post | November 20, 2003
'The poor have nothing to lose but their poverty," say pro-trade NGOs
NGOs are urging the business, civil society and political leaders from the western hemisphere that have gathered in Miami for the Free Trade Areas of America Ministerial to promote real free trade.
The Global Freedom to Trade Campaign, a coalition of pro-globalization NGOs, is calling upon leaders to tear down trade barriers. Over the next few days, protesters will blame the world's problems on free trade, but the problem is quite the opposite. Margalit Edelman of International Policy Network explains: "Restrictions on trade are the cause of the world's problems, not the cure. Economic activity is stifled if governments do not adequately protect property rights and contracts, promote rule of law, create free markets for exchange and craft transparent rules and regulations."
Meanwhile, incentives to invest in business are undermined when governments do not adequately protect property rights -- both real and intellectual. Edelman continues, "Clear rights of ownership and the freedom to buy and sell goods without government intervention are not only fundamental human rights, they are the bedrock of economic development, which is the only way out of poverty."
Andres Mejia Vergnaud, director of Colombia's Instituto Desarollo y Libertad, echoes these words: "The best way to help people escape from corrupt, oppressive governments, and the onerous regulations they impose is to encourage open, rules-based trading systems. We call on leaders at the FTAA meeting and everywhere to eliminate subsidies, quotas, tariffs and restrictive regulations, so that the masses can escape from poverty."
The focus will be on Brazil and the United States to lead negotiations. "The U.S. and Brazil must resist bowing to special interests clamouring for protection. This means making bold moves to free up trade in agricultural products, textiles and other goods and services," says Andre Andrade, of Brazil's Instituto Liberal. "Consumers in developed and developing countries would all benefit from the wider variety of cheaper products that would result from such action. Making it easier to do business in the Americas would also increase investment and help create jobs."
Moreover, free trade is the way to protect the environment. Various civil society groups at the Americas Trade and Sustainable Development Forum have pointed out many of the health and environmental challenges facing the world's poor. Over two billion people globally lack access to clean water and sanitation, leading to disease and death. Hundreds of millions of people suffer respiratory problems and millions die as a result of inhaling fumes from wood and dung fires.
But their prescriptions for addressing them -- less trade and more restrictions and regulations won't help the situation.
"The world's real environmental problems are not caused by corporations. They are local -- and they are caused by poverty. The solution to these local environmental problems is prosperity and empowerment of the poor. Facilitating and freeing up trade are crucial to achieving those objectives." said Kendra Okonski, director of IPN's Sustainable Development Project.
But many rich countries want to impose "environmental" restrictions on trade. According to Mr. Vergnaud, "Labour and environmental rules are often used by vested interests to keep out goods from poor countries. If we can't trade, we can't grow. And if we can't grow, we simply won't have the resources to address Latin America's environmental problems."
Economic growth is key to addressing environmental concerns. "Wealthier makes healthier -- economic growth will lead to improved environmental, sanitary and health stewardship. It's no coincidence that the richest countries are also the cleanest and healthiest," argues Mr. Andrade.
All three analysts, members of the "Freedom to Trade" campaign, believe that the best way to eliminate poverty and protect the environment is a regime of open, rules-based trade, to empower people and create prosperity.Financial Post:
