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Free Trade Fact of the Day
Posted By Conn Carroll On May 28, 2008 @ 9:39 am In International | Comments Disabled
Robert Samuelson pens a must-read op-ed  today on trade and poverty:
What’s the world’s greatest moral challenge, as judged by its capacity to inflict human tragedy? It is not, I think, global warming, whose effects — if they become as grim as predicted — will occur over many years and provide societies time to adapt. … the most urgent present moral challenge, I submit, is the most obvious: global poverty.
The solution to being poor is getting rich. It’s economic growth. … Just recently, the 21-member Commission on Growth and Development — including two Nobel-prize winning economists, former prime ministers of South Korea and Peru, and a former president of Mexico — examined the puzzle. … The panel identified five common elements of success:
- Openness to global trade and, usually, an eagerness to attract foreign investment.
- Political stability and “capable” governments “committed” to economic growth, though not necessarily democracy (China, South Korea and Indonesia all grew with authoritarian regimes).
- High rates of saving and investment, usually at least 25 percent of national income.
- Economic stability, keeping government budgets and inflation under control and avoiding a broad collapse in production.
- A willingness to “let markets allocate resources,” meaning that governments didn’t try to run industry.
… [the] broad lessons are clear. … Globalization works. Countries don’t get rich by staying isolated. Those that embrace trade and foreign investment acquire know-how and technologies, can buy advanced products abroad, and are forced to improve their competitiveness.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2008/05/28/free-trade-fact-of-the-day-57/
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 a must-read op-ed: http://www.washingtonpost.com/wp-dyn/content/article/2008/05/27/AR2008052702554_2.html
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