Hi Tor, At 00:15 07/10/01 +0200, you wrote: <<<< >About free trade. > >I bought this small book written by Paul Bairoch: "Economics and World History, Myths and Paradoxes." >About the protectionsm 90 years ago: "As with economic growth, the expansion of trade became even greater when all countries increased their protectionism. This is also a partial proof that economic growth is more an engine of trade than vice versa." (page 51) >>>>
Most economists would not agree with Paul Bairoch. The best evidence that trade stimulates economic growth and not vice versa is by comparing those undeveloped countries which concentrated on export trade (mainly those in South-East Asia) in the 50s, 60s and 70s and those which concentrated heavily on import-substitution (India, and most of South America and Africa). I don't think we need to say more. Of all the above basket cases, only India has come to its senses in the last year or two and has been making real attempts at changing its protectionist policy. It hasn't been very successful -- there is still a great deal of governmental/bureaucratic resistance -- but at least it has been able to get into a decent growth rate (8-10%) in the last year or two. Keith >There are lots of slogans about the blessings of free trade, but sometimes it is interesting to look at the facts, and they are that countries which are pursuing protectionism are often growing faster than countries which are pursuing free trade policies. >The last fifty years the fastest growing economies were the "east asian tigers," as long as they were pursuing protectionism. > >If we take a look 100-150 years back in time we will see the same, the fastest growing economies were pursuing protectionism. Why then free trade? Free trade is not about economic growth, but about sharing the cake (or not sharing the cake), it is about giving the strongest free hands to grab what they are able to grab. >Just look at the facts! > > >Hilsen >Tor F�rde >http://home.online.no/~torforde/europa/europa.htm > > > > ___________________________________________________________________ Keith Hudson, General Editor, Calus <http://www.calus.org> 6 Upper Camden Place, Bath BA1 5HX, England Tel: +44 1225 312622; Fax: +44 1225 447727; mailto:[EMAIL PROTECTED] ________________________________________________________________________
