GATS

[Geoff Edwards <g.edwards@xxxxxxxxxxxxxxxxx>]

Professor Nell

Yes, of course, you are right: despite my earlier post, many of the
economic woes which the wealthy or middle level countries bring down upon
themselves are self-inflicted. An intriguing question is why politicians
and their economic advisers so often willingly abandon their sovereignty
and control over their economic policy levers. As so many countries seem to
want to do under GATS. Reality seems to profoundly contradict public choice
theory, which asserts that politicians and bureaucrats are ceaselessly
engaged in expanding their empires, influence and budgets.

Which brings me to wonder if members of PKT have views not swapped
previously on the macro-economic implications of GATS. Post-Doha activity
to press GATS upon the world is growing. Allowing foreign investors entry
to a country in order to introduce sophisticated technology or expertise I
can understand; but allowing global corporations to displace local small
businesses and civic services makes no sense at all.

A link to a background article on GATS published a year ago in Australia's
financial daily is attached.

http://members.iinet.net.au/~jenks/Sanders.html


Regards


Geoff Edwards
PhD Student
Griffith University
Brisbane, Australia

-----Original Message-----
From:	Edward Nell [SMTP:nelle@xxxxxxxxxxxxx]
Sent:	Wednesday, May 15, 2002 2:21 AM
To:	Leigh@xxxxxxxxxxxxxxxxxxxx; pkt@xxxxxxxxxxxxxxxx;
g.edwards@xxxxxxxxxxxxxxxxx
Subject:	Re: Stiglitz on Soros

True enough - but countries like Australia should be developing their
policy position to ensure independence, rather than just giving up and
saying it can't be done.

--speculative currency inflows and outflows can be inhibited by
transactions taxes and various other kinds of penalties - keeping
currency in the country can be rewarded

--transfer pricing can likewise be penalized

--the IMF and World Bank can be resisted - of course it is dangerous,
but small countries facing possible IMF pressure should band together,
pledge to support one another,an d to jointly resist draconic IMF
programs.

--if you are forced to 'open' your markets, think about how to do it.
There are lots of ways to indirectly impose costs on imports and protect
the domestic markets - the Japanese are masters of the art.

What is needed above all is political will - and this depends on many
things - but one factor is well-informed economists pointing out that
you don't have to give up.  If the only thing politicians hear is that
nothing can be done, nothing will be done.


>>> Geoff Edwards <g.edwards@xxxxxxxxxxxxxxxxx> 05/14/02 11:59 AM >>>