Five Simple Principles for World Trade
With the Asian financial crisis barely over, the world economy stands at the brink of another major eruption--one with potentially much greater significance to the long-term health of the global economic system. The cause this time is not panicked bankers rushing for the exits out of developing countries, but a deep crisis of legitimacy that threatens to overwhelm the world's trading regime.
As the showdown in Seattle has demonstrated, a coalition of labor, environmental, and human rights advocates is intent on derailing the World Trade Organization (WTO), the institutional embodiment of the world's trading order. The WTO is in trouble as well with developing countries, which feel increasingly estranged from rules they believe do not benefit them. The chasm that separates these groups from the agenda pursued by United States and European Union policy makers is growing, destabilizing the world...