Globalization

PROPOSALS FOR A FAIRER SYSTEM OF WORLD TRADE.

Though protests against the present move towards a globalized world and
the predominance of neo-liberal economics have grown in intensity and
have enjoyed wide publicity, few VIABLE proposals for POSITIVE actions
have surfaced.

What seems to be needed are ideas for a better distribution of wealth in
general and especially of the fruits of globalization, which would
REGULATE investments by TNCs, but would still give them opportunities
for making profits. In my personal opinion, any such scheme should not
be programmed for a very wide implementation, but should be tried out in
a small scale in one or several countries, who can offer favorable
conditions for investments, such as desirable natural resources or a
well educated and motivated workforce. Only after any errors in such
policies have been corrected and the scheme has resulted in significant
benefits for the PEOPLE of the pioneering country, should similar
proposals be tried on a much bigger scale; in other words the movement
should grow organically.

No detailed program could fit the many different situations, but the
following ideas might be considered:

The first step might very well be a motion for establishing a double
standard for membership of the WTO:
REGULAR MEMBERSHIP for countries,  who accept all the present rules and
regulations of this body and
ASSOCIATE MEMBERSHIP for countries wanting to negotiate special terms,
according to their individual needs and degree of economic developments.
Since a citizen of Thailand has been chosen as the next president of the
WTO and since developing countries command a majority of votes, such a
motion should have a reasonable chance to succeed.

Such associate members would have the right to protect certain sectors
of their economy, which employ a great part of their workforce and are
not (or not yet) capable to compete with imports. Agriculture, textiles,
shoes etc. might be among the protected sectors
On the other hand such countries would want to have access to world
markets for a selection of their products and would naturally have to
offer a fair compensation for such access; possibly the elimination of
import duties for a number of goods, that might generate a volume of
roughly similar value. Such a BALANCED international trade might seem to
offer a fair deal for both sides.

The pioneering country might also want to invite foreign investments in
selected sectors, where such investments offer both a lot of well paying
jobs and other benefits for the country and good profitability for the
investors.  Conditions on decent and slowly growing wages, workers
protection and on safeguarding the environments could be established in
the invitation or could be negotiated.
To make such investments desirable in spite of the mentioned
limitations, compensations such as reductions on taxes or import duties
or other positive incentives might be needed.

I should be grateful for comments on my ideas

Regards                   Paul Riesz