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Free trade does not automatically equal good governance - that sort of thing requires cultural and political changes over and above the changes made to accommod
by Maktab 18y ago
Free trade does not automatically equal good governance - that sort of thing requires cultural and political changes over and above the changes made to accommodate freer trade.
But the rapid economic rise of Taiwan, China and a host of other countries over the past forty years has undoubtedly been due in large part to the reduction in trade barriers and resultant increase in international free trade. It works.
- litewulf 18y agoActually I think a bigger thing was exceptionally low living standards compared to the US which meant cheap labor...
- mike_organon 18y agoBut their living standards didn't go down suddenly, so how does that explain an effect? What changed was trade, which meant the cheap labor was accessible.
- Maktab 18y agoAnd what of the dozens of other countries with exceptionally low living standards but restrictive trade policies which remain poor? Cheap labour gave these countries an initial competitive advantage in certain forms of manufacturing, but it was trade that allowed them to make use of this and to gradually advance into more sophisticated manufacturing and services.