[CasX]

What are your opinions on free market trade compared to controlled, regulated trade- globally speaking?

Taken from these sites:
http://environment.about.com/gi/dynamic ... trade.html
http://www.fairtradewatch.com/fairtradeecon.html
http://environment.about.com/gi/dynamic ... rTrade.asp

"Except for religious conflicts and the petty wars of feudal lords, wars are primarily fought over resources and trade. President Woodrow Wilson recognized that this was the cause of World War I: 'Is there any man, is there any woman, let me say any child here that does not know that the seed of war in the modern world is industrial and commercial rivalry?'"
-- J.W. Smith, Economic Democracy: The Political Struggle for the Twenty-First Century, M.E. Sharpe, Publisher

""Never before have so many people had so much in common, but never before have the things that divide them been so obvious."
-- Sir Shridath Ramphal, The Commission on Global Governance

Globalization, trade and the free markets are the talks of today. Many envision or talk about a future where people of different nationalities and cultures will be able to share and trade resources across boundaries in a manner that will benefit all of humanity.

But, how fair is trade when a nation's own global trading policies together with international corporations' desire to increase their profits result in manipulated international trade pacts and agreements, so that they are most favorable for themselves? How free is the free market? Why do the poor get poorer and the rich get richer?

A lot of overbearing regulations can give too much power to a few, and potentially corrupt ruling regime and prevent innovative ideas from flourishing. It can perhaps be an obstacle for a foreign nation to invest in a country due to those conditions and regulations which increase costs. (The fact that some of these regulations are usually for the benefit for the people of that nation poses another problem)

However, too much deregulation can lead to corporations being able to undermine basic social and human rights as well as lead to environmental damage, often without accountability. IMF-imposed structural adjustment and their pushes for deregulation has also led to further poverty in some countries.

The correct balance is difficult to reach due to the inherent power conflicts between the various bodies involved. This leads to a lot of unfairness in trade and basic human rights for which the majority of people end up paying the price. For example, some believe that one of the main problems causing the 1998/99 financial crisis around the world is a lack of global regulations to help protect developing nations as they enter a global market. Even the World Bank has cautioned that globalization and localization (the increasing demand for local autonomy) can pose problems as well as offer benefits, if not handled properly.

There is already a growing fair trade movement around the world, where local producers are able to fairly trade their products. However, it isn't always easy to maintain that when globalization, in its current form, does not seem to favor those who want trade to be fair.

[Kov]

I always liked the idea of bartering things. However, with an open market, bartering exists in the form of money and things being worth money to purchase.

However, I still find in nice to be paid food for working every now and then, with maybe some computer parts on the side so I can go home and make comoputers and barter them for other things.

[Baron Nogood]

Interesting. Fair trade is not necesarily regulated or controlled, and my burning question on this issue is controlled by who?

Control and Regulation usually means tariffs, export taxs; trade barriers as they are so lovingly called by the IMF.

Free Trade and Globalisation in their true senses are fairer than 'fair trade' if we take the above as being true. If trade is truly free, then it is fair, each country produces the goods it has a natural advantage for and no goods are subsidised or controlled by the government. Government regulation has worked and failed in equal measures, Europe was built on tariffs, Latin America's protected economy scheme Import Substitution Industrialisation (ISI) failed dismally and quickly led these countries into the current debt crisis.

I know more than most how badly globalisation is percieved...if we are talking about globalised markets however, what better thing can there be for your primary goods trader than a world market for their goods? It is when that 'globalisation' works on the basis that some animals are more equal than others, and barriers, subsidies and export/import taxes are used in order to manipulate the flow of goods from the countries of the world, this is counter productive and not what people who want true free trade or true globalisation want.