Rodrik: Cheerleaders a threat to world trade

10 April 2007

In the March 26 Financial Times, Dani Rodrik argues that those who are pushing for increased market liberalization are the ones truly damaging the poor and developing nations. The level of market openness in the international economy is currently not prohibiting the growth of any nation, evidenced by the successes of China, Vietnam, and India. Rodrik states that the greatest threat to a healthy global economy is the inability of governments to react to their citizen’s demands. Governments need the freedom to choose their own economic system and welfare state. This freedom is often at odds with World Bank, IMF, and WTO polices. Countries find themselves forced to choose between loans and having the ability to develop their own economic policies. Rodrik emphasizes that poor nations need policy space allowing them to diversify and restructure their economies. http://www.ft.com/cms/s/1b13320e-dbb5-11db-9233-000b5df10621,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F1b13320e-dbb5-11db-9233-000b5df10621.html&_i_referer=http%3A%2F%2Fwww.google.com%2Fsearch%3Fhl%3Den