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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (26972)3/19/2008 7:19:18 PM
From: TimF  Respond to of 71588
 
Another Parable
Arnold Kling

Greg Mankiw writes,

A 2006 poll of Ph.D. members of the American Economic Association found that 87.5 percent agreed that “the U.S. should eliminate remaining tariffs and other barriers to trade.”

The benefits from an open world trading system are standard fare in introductory economics courses...The basic lessons can be traced back to Adam Smith of the 18th century and David Ricardo of the 19th century

As an argument for free trade goes, this one is weak. In effect, Mankiw is saying, "Economists are for free trade, so you should be, too."

The challenge is to make an argument for free trade in terms that everyone can understand. Perhaps a parable is in order. Perhaps we could start with "Once upon a time," and describe an economy that works like ours today. But we decide that free trade has gone too far.

First, we enact national protectionism. Then, the "buy local" movement catches on and leads to effective elimination of the Constitutional provisions against trade barriers within the United States. Cities and states start enacting tariffs, quotas, and trade subsidies.

Finally, the movement moves toward its logical conclusion: only buy products made in your own household. People give up computers, cars, packaged food, electricity, and plumbing. We go back to subsistence farming and hunter-gathering.

econlog.econlib.org

Also see
politicalcalculations.blogspot.com



To: TimF who wrote (26972)3/21/2008 5:48:52 PM
From: Peter Dierks  Read Replies (1) | Respond to of 71588
 
No Surrender
By FOUAD AJAMI
March 19, 2008; Page A17

"I am the same man and do not alter, it is you who change, since in fact you took my advice while unhurt, and waited for misfortune to repent of it . . . But you must not be seduced by citizens like these nor be angry with me -- who, if I voted for war, only did as you did yourselves."

-- Pericles's funeral oration, "The Peloponnesian War" by Thucydides

Wars have never been easy to defend. Even in "heroic" cultures, men and women applauded wars then grew weary of them. This Iraq war, too, was once a popular war. It was authorized and launched in the shadow of 9/11. During the five long years that America has been on the ground in Iraq, the war was increasingly forced to stand alone.


At a perilous moment in early 2007, when the project was in the wind and reeling, the leader who launched this war doubled down and bought time. The polls -- and this might be the war most endlessly measured by pollsters -- tell us that two out of every five Americans are now willing to stick with this endeavor.

The tipping point came with "the surge." The new policy was marked by stoicism and an acceptance of the burdens of this war. For once, there was no promise of easy success. "Victory will not look like the ones our fathers and grandfathers achieved," President George W. Bush said when he announced the new policy some 14 months ago. "There will be no surrender ceremony on the deck of a battleship."

In Iraq, America was surrounded by enemies who were sure from the start that the great foreign power was destined to fail. They could not be given the satisfaction of a hasty American retreat. The stakes had grown: We were under the gaze of populations with a keen eye for the weakness of strangers. It was apt and proper that the leader who launched this war did not give up on it.

Speaking in Nashville, Tenn., to the convention of National Religious Broadcasters on March 11, President Bush defended, yet again, the war in Iraq: "The decision to remove Saddam Hussein was the right decision early in my presidency; it is the right decision at this point in my presidency; and it will forever be the right decision."

Mr. Bush made freedom in Arab-Islamic lands his cause. He rejected laments that Arabs do not possess a freedom gene, and that they are fated to tyranny. "The liberty we value is not ours alone," he told this Nashville convention. "Freedom is not America's gift to the world; it is God's gift to all humanity."

This has been Mr. Bush's wager ever since the hunt for weapons of mass destruction in Iraq ran aground, and the war and its sacrifices had to be defended and fortified. Grant Mr. Bush his due: He upheld his belief that liberty can stick on Iraqi and Arab soil, in the face of great doubts and misgivings.

In the five years that America has been in Iraq, this drawn-out war has seemed like a fight between American power and the laws of gravity. Sectarianism tested our souls and our patience; the fury of the region around Iraq was bottomless. Its misfits found their way onto Iraqi soil. We wanted a new life for that country, and there were sectarian hatreds beyond our comprehension.

For our part, we did not always fight this war most wisely and skillfully. It took us a while to get the right commanders and envoys on the scene. We did not have the linguists we needed, for the 1990s had not prepared us for wars of ideology and culture.

Even the bureaucracy itself -- the State Department, CIA -- was full of people who doubted the wisdom of this war and second-guessed it at every turn. Some of the very people dispatched to Baghdad were no friends of this project.

Still, five years on, this endeavor in Iraq is taking hold. The U.S. military was invariably the great corrector. In their stoic acceptance of the mission given them and in the tender mercies they showed Iraqis on a daily basis, our soldiers held out the example of benevolent rule. (In extended travel in and out of Iraq over the last five years, I heard little talk of Abu Ghraib. The people of Iraq understood that Charles Graner and Lynndie England were psychopaths at odds with American military norms.)

In those five years, the scaffolding of the war came under steady assault. People said that there was no connection between al Qaeda and Saddam, that no "smoking gun" had been discovered, and that the invasion of Iraq had turned that country into a breeding ground of jihadists.

But those looking for that smoking gun did not understand that the distinction between secular and religious terror in that Arab landscape was a distinction without a difference. The impulse that took America from Kabul to Baghdad was a correct one. Radical Arabs attacked America on 9/11, and a war of deterrence had to be waged against Arab radicalism.

Baghdad was the proper return address, as a notice was served on the purveyors of terror that a price would be paid by those who aid and abet it. It was Saddam Hussein's choice -- and fate -- that he would not duck and stay out of harm's way in the aftermath of 9/11. We have not fully repaired the ways of the radicals in the intervening years. But the spectacle of the dictator's defeat, and the sight of him being sent to the gallows, have worked wonders on the temper of the Arab street.

So we did not turn Baghdad into a democratic city on a hill, and we learned that the dismantling of Sunni tyranny would leave the Arab world's Shiite stepchildren with primacy in Iraq. A better country has nonetheless risen, midwifed by this American war. It is not a flawless democracy. But compare it to the prison it was under Saddam, the tyranny next door in Damascus and the norms of the region, and we can have a measure of pride in what America has brought forth in Baghdad.

This is not a Shiite state that we uphold. True, the Shiite majority was emancipated from a long history of fear and servitude, but Iraq's Shiites have told us in every way they can that their country is not a "sister republic" of the Persian theocracy to their east. If anything, the custodians of political power in Iraq have signaled their long-term intentions: an extended American presence in their midst and the shoring up of an oil state in the orbit of American power.

There has been design and skill in recent American endeavors. The Sunnis had all, but wrecked their chances in the new order. The American strategy in the year behind us worked to cushion the Sunni defeat. The U.S. now sustains a large force of "volunteers," the Sons of Iraq, drawn mainly from the Sunni community. This has not met with the approval of the Shiite-led government, but the attempt to create a balance between the two communities has been both deliberate and wise.

In the same vein, American power has given the Kurds protection and a historic chance in a neighborhood that had hitherto snuffed out all their dreams. But a message, too, has been sent to the Kurds. The condition of this protection is a politics of sobriety and a commitment to the federalism of Iraq. We have not re-invented that old, burdened country, but this war is the first chance Iraqis have had to emerge from a history of plunder and despotism.

In the past five years, the passion has drained out of the war's defenders and critics alike. Our soldiers and envoys are there, but the public at home has moved onto other concerns. Still, the public is willing to grant this expedition time, and that's for the good. There is no taste in this country for imperial burdens and acquisitions in distant lands. But Americans also know that the lands and sea lanes of the Persian Gulf are too vital to be left to mayhem and petty tyrants.

Mr. Ajami, a Bradley Prize recipient, teaches at the School of Advanced International Studies at Johns Hopkins University. He is the author of "The Foreigner's Gift" (Free Press, 2006).

online.wsj.com



To: TimF who wrote (26972)4/11/2008 8:36:46 PM
From: Peter Dierks  Respond to of 71588
 
Doha Dealbreaker
By SIMON CREAN and SUSAN SCHWAB
April 11, 2008; Page A16

In today's world, access to world-class service providers can be the difference between economic growth and stagnation. Open markets promote innovation and entrepreneurship, generate lower costs and higher-quality goods, increase the pace of technology diffusion, and attract more foreign investment.

Reaching a strong outcome in services in the World Trade Organization's Doha Round is so important that the United States and Australia have decided to make our position clear: Like many other WTO members, we will not support a Doha package unless it includes an ambitious outcome on services that delivers commercially meaningful results.

Communication, finance, energy, transportation and distribution services are essential inputs for the production of goods and services, and are "force multipliers" that expand economic opportunities and increase productivity. An efficient services sector is crucial to the development of vibrant, modern and resilient economies.

In fact, several developing countries have autonomously liberalized certain sectors of their economies as part of their development strategy, recognizing that high services barriers only constrain their economic potential. For example, telecommunication markets have been opened up throughout the developing world, and everywhere this has resulted in greater telephone access and lower charges, with profound positive effects on rural farmers, small businesses and industrial exporters.

This is why services are such an important part of most countries' development strategies, and why they need to be part of Doha's agenda. The Doha negotiations give developed and developing countries a once-in-a-generation opportunity to lock in services liberalization and harness its potential for future growth.

Reforms to trade in agriculture and industrial products have dominated headlines on the Doha Round, and it is true that these reforms will be extremely valuable. But liberalizing global services markets can provide even greater potential economic benefits.

Services contribute more to the world economy than agriculture and manufacturing combined, and are the fastest growing component of global economic growth, according to the World Bank. Comprehensive services-sector liberalization – through open markets and nondiscriminatory treatment of service suppliers – would permanently boost the global economy by more than $1 trillion. This is a greater boost than the full removal of subsidies and tariffs around the world on agricultural and goods markets.

We believe the Doha Round of trade negotiations represents our best opportunity to deliver global and sustainable economic growth. This is important because, over the past five years, world trade has grown twice as fast as world output.

It is understandable that some countries are reluctant to offer more on services, especially in the absence of greater clarity in other parts of the Doha package. However, it is our view – and indeed a broader view – that the round will only deliver in terms of global growth and development if all areas of market access – agriculture, industrial products and services – are negotiated satisfactorily.

In recent weeks, we have welcomed the first draft of a services text that must – in its final form – provide the necessary multilateral political guidance for an ambitious services outcome. Over the next few weeks, Australia, the U.S. and others will pursue the objectives of service-sector liberalization through renewed bilateral and plurilateral negotiations.

This process should culminate in meaningful ministerial level engagement that coincides with the conclusion of negotiations on agriculture and industrial products. At that time, we will be looking for key WTO members to signal their commitment to make significant improvements in their services offers.

It is essential that major decisions on agriculture and industrial goods be accompanied by positive commitments on services. Only full engagement across all three market access pillars will help us secure a Doha Round agreement worthy of the growth and development goals for which Doha was started.

Mr. Crean is Australia's minister for trade. Ms. Schwab is the U.S. trade representative.

online.wsj.com