Posted by: karmapa September 21, 2004
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Quite surprised to see Maximum talking about 'free' this and
'free' that. I don't know but may be I have a lot of catching up
to do. When did market suddenly become 'free' (reference to
Maximum's 'we are now part of OPEN FREE MARKET') ? Might as well
say that there is such a thing as 'Free Lunch'. Probably you meant
to say 'we are now part of Global Market or Global Economy'. Also,
the qualifier OPEN is problematic.
Paradoxically, the existence of WTO itself is ample proof that so
called free trade is not 'free' either. WTO is more a multilateral
approach (very noninclusive and opaque one at that) for 'managing'
or 'negotiating' trade between member countries, where what ends
up on your plate depends very much on the bargaining powers of the
South apropos the North, and how well member countries
individually negotiate under the WTO framework, and position or
reorient their economies.
I get a little nervous every time I see the qualifier 'FREE' being
tossed about so casually.
Re: WTO, well my hunch is that most developing countries joined it
not because of any perceived net benefits (which the twin gospel
of specialization and trade promises), but because they were
afraid of being 'left out in the cold'. While the latter may be a
valid reason for joining WTO, the decision to join was hardly
taken from a position of strength or even comparative advantage.
Now that Nepal has already joined WTO (with very little public
debate preceding accession to WTO) through ADHYADESH, I don't
decry Nepal's decision at all.
I believe the sooner our policymakers reject 'FREE' this and
"FREE' that mentality, the sooner they will be able to make better
decisions in the national interests. They probably still think
freebies, junket trips, grants, charities are indeed 'FREE'. What
are free to them [if they mistakenly think so], are not
necessarily free for the country. Like Armand Hammer, the American oil
tycoon cum philanthropist, once put it: "I only give to get more." It would
be interesting to see what price India will exact from Nepal, if
it already has not, for providing military assistance to Nepal.
Free market and free trade are not free. This is not a critique of
the two, or even of globalisation. But simply my observation why
Nepali people's perceptions must change to reflect this 'nothing
is for free' reality, which is really the bedrock of economics,
at least in the socio-political-economic context.
Karmapa