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Terminology Trade liberalization: empower People with free trade & open markets – Absence of privilege & required accountability for actions Access to opportunities for trade open to everyone Market dominance … ? Competitive markets “hate” monopoly … ! – More trade & competition less monopoly – Monopolies survive by government mandate or with market regulations – “Rule of Law” constrains individual & government actions Increased trade sustained economic growth shared prosperity (i.e., rising living standards) Trade encourages voluntary cooperation & increased interaction – Market competition & social cooperation Competition opportunity to cooperate win-win outcomes – More trade mutual interests greater tendency for peace – More trade desire to make friends of strangers “love” “People-centric” development can only work if focus on individuals – Basing human rights on individual rights to support self-actualization
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Trade Liberalization & Empowering The People of ASEAN:
Open Markets & the Economics of Prosperity, Peace & Love
Christopher LINGLE, PhDUniversidad Francisco Marroquín—Guatemala
Centre for Civil Society—New Delhi
ACSC & ASEAN People's Forum (APF)SEANET & IDEAS Workshop – 23 April 2015
ACSC & APF Conference Brief• Identifying failures of ASEAN Community– Authoritarian & military regimes, increased militarization,
violence & armed conflicts, unlawful foreign interference, lack of fundamental freedoms & human rights violations, undemocratic processes, corruption & poor governance, development injustice, discrimination, inequality, & religious extremism & intolerance
– ASEAN “neo-liberal” model prioritizes corporate interests & elites, including SOEs, at expense of the People • Deregulation, privatization, government & corporate-led trade & investment
policies more inequality, accelerated marginalization & exploitation, & inhibit peace, democracy, development, & social progress
• Correcting failures of ASEAN Community– “People-centric” economic & social development– Greater reliance on “Rule of Law” to protect rights & freedoms
Terminology• Trade liberalization: empower People with free trade & open markets
– Absence of privilege & required accountability for actions• Access to opportunities for trade open to everyone• Market dominance … ? Competitive markets “hate” monopoly … !
– More trade & competition less monopoly– Monopolies survive by government mandate or with market regulations
– “Rule of Law” constrains individual & government actions
• Increased trade sustained economic growth shared prosperity (i.e., rising living standards)
• Trade encourages voluntary cooperation & increased interaction– Market competition & social cooperation
• Competition opportunity to cooperate win-win outcomes
– More trade mutual interests greater tendency for peace– More trade desire to make friends of strangers “love”
• “People-centric” development can only work if focus on individuals– Basing human rights on individual rights to support self-actualization
Divergent Paths of Human Development• Peace, Love & Trade: individuals & markets operate under Rule of
Law with (relatively) free flows of people & capital across borders based on "comparative advantage" (doing what do best) positive-sum outcomes to (unequally) that enrich all players– Free trade supports peace & international cooperation by providing a sort of
gravitational pull to draw people together– Trading makes race, creed & language less important in business– People-centric by promoting rights & freedom of individuals
• War, Divisiveness & Protectionism: economic growth guided by plans & regulations, trade & immigration barriers to protect domestic interests create frictions & conflicts zero- or negative-sum) outcomes to enrich some players at expense of others– Trade restrictions higher prices for lower quality products– Unjust interference with people trading what they peacefully produce for
whatever they want from anywhere in world– Promotes group interests over people as individuals
Trade Liberalization & Consumer Sovereignty• Economic power to the People (as consumers) when
peaceful trading occurs within competitive conditions– The People have wider range of choices & find lower prices– Competition for the best People (workers) & rising
productivity rising wages higher living standards• Protectionism (tariffs, quotas), regulations,
subsidies, price controls & rationing create benefits for special-interest groups while disadvantaging the People– State interventions tend to benefit the few at expense of
the People
MORALITY, MARKETS & TRADE• Markets cooperative behavior if repeated trading
occurs between ever-changing groups– More exchange more honesty & more punctuality – Honesty: adverse results if break promises or cheat– Competitive markets promote human liberty, prosperity &
virtues (e.g., integrity, punctuality & propriety)• Continuous exchange in free market future-
oriented viewpoint integrity & trust• Economic consequences: ”Invisible Hand” &
voluntary exchange social harmony & spontaneous gains in social well-being without planning or regard to individuals’ goals
• Economic freedom is a precondition for political freedom
