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Charles
Lipson
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E-mail: c-lipson@uchicago.edu Voice: 773.702.8053 Fax: 773.702.1689
Charles Lipson Professor of Political Science University of Chicago 5828 S. University Ave. Chicago, IL 60637 |
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Political Threats to Global Prosperity
There
is a growing political threat to global prosperity. It comes from
a coalition of
- economic protectionists,
- environmentalists, and
- anti-globalization activists
in the United States, Canada, and Western
Europe. Protectionists are drawn mainly from labor and
business in industries that are sensitive to wage costs and compete heavily
with imports. They are joined by environmentalists whose main concern
is that polluting industries can move abroad (or threaten to do so) rather
than cleanup their operations at home. Environmentalists are also intensely
opposed to trade in bio-engineered foods. Finally, there are anti-globalization
activists of all stripes, concerned about economic dislocations and other
threats to social welfare.
These
groups are increasingly important to the Democratic Party in the US (especially
its congressional leadership) and to Social Democrats throughout Europe.
Their influence is growing. One sign is the Democratic Party's opposition
to NAFTA, apparent even when President Clinton was in office. Another
are the large and often violent protests against any new negotiations
at the World Trade Organization.
This coalition poses a real threat to the political foundations of global prosperity, which include
- open markets for trade in manufactured products and
- relatively open markets for trade in services.
Building
on these foundations, advanced economies have prospered by specialization
and exchange. They have also turned increasingly to labor-intensive manufactures
from Asia and Latin America--adding significantly to prosperity in those
regions.
