Trade / Monopolies

I'm somewhat of a realist, as opposed to an idealist. Do you think that everyone wants free trade? I think that LDC (less developed countries) or developing nations would not, because they can't compete with advanced, industrialized nations. That means that the poor will stay poor as the rich gets richer. Some level of market closeness is needed, until the LDC can have a sustainable and growing economy, but a gradual shift to liberalization is desirable for the benefit of consumers and buyers. A case in point is Japan. If Japan didn't have a government-driven market in which the government invested heavily in R&D after WWII, then Japan would still be making toys, and not hi-tech. It also wouldn't open up its market so quickly, if it weren't for its economic sustainability. Going to another example, why do you think the US is essential to pressuring China to open its market? I would argue that our economic and military might have something to do with it, but it's generally not a good idea to use military force, unless its used for protection (i.e. against North Korea should it use WMD against its neighbors).

All of this talk about Libertarian ideas have made me realize that Libertarian views are only applicable to no where but the U.S. There's a great article in the Wall Street Journal today on the front page about the U.S. protecting state-owned enterprises in Iraq. Ironic isn't it. What do you think would happen if free trade were enforced in Iraq right now? Would there be chaos? Would people be able to get more for less? I think they still won't have food, oil or electricity.

Best, Celine