Trade Liberalization & Empowering The People of ASEAN: Open Markets & the Economics of Prosperity, Peace & Love Christopher LINGLE, PhD Universidad Francisco Marroquín—Guatemala Centre for Civil Society—New Delhi ACSC & ASEAN People's Forum (APF) SEANET & IDEAS Workshop – 23 April 2015

ACSC & APF Conference Brief Identifying failures of ASEAN Community – Authoritarian & military regimes, increased militarization, violence & armed conflicts, unlawful foreign interference, lack of fundamental freedoms & human rights violations, undemocratic processes, corruption & poor governance, development injustice, discrimination, inequality, & religious extremism & intolerance – ASEAN “neo-liberal” model prioritizes corporate interests & elites, including SOEs, at expense of the People Deregulation, privatization, government & corporate-led trade & investment policies  more inequality, accelerated marginalization & exploitation, & inhibit peace, democracy, development, & social progress Correcting failures of ASEAN Community – “People-centric” economic & social development – Greater reliance on “Rule of Law” to protect rights & freedoms

Terminology Trade liberalization: empower People with free trade & open markets – Absence of privilege & required accountability for actions Access to opportunities for trade open to everyone Market dominance … ? Competitive markets “hate” monopoly … ! – More trade & competition  less monopoly – Monopolies survive by government mandate or with market regulations – “Rule of Law” constrains individual & government actions Increased trade  sustained economic growth  shared prosperity (i.e., rising living standards) Trade encourages voluntary cooperation & increased interaction – Market competition & social cooperation Competition  opportunity to cooperate  win-win outcomes – More trade  mutual interests  greater tendency for peace – More trade  desire to make friends of strangers  “love” “People-centric” development can only work if focus on individuals – Basing human rights on individual rights to support self-actualization

Divergent Paths of Human Development Peace, Love & Trade: individuals & markets operate under Rule of Law with (relatively) free flows of people & capital across borders based on "comparative advantage" (doing what do best)  positive-sum outcomes to (unequally) that enrich all players – Free trade supports peace & international cooperation by providing a sort of gravitational pull to draw people together – Trading makes race, creed & language less important in business – People-centric by promoting rights & freedom of individuals War, Divisiveness & Protectionism: economic growth guided by plans & regulations, trade & immigration barriers to protect domestic interests create frictions & conflicts  zero- or negative- sum) outcomes to enrich some players at expense of others – Trade restrictions  higher prices for lower quality products – Unjust interference with people trading what they peacefully produce for whatever they want from anywhere in world – Promotes group interests over people as individuals

Trade Liberalization & Consumer Sovereignty Economic power to the People (as consumers) when peaceful trading occurs within competitive conditions – The People have wider range of choices & find lower prices – Competition for the best People (workers) & rising productivity  rising wages  higher living standards Protectionism (tariffs, quotas), regulations, subsidies, price controls & rationing create benefits for special-interest groups while disadvantaging the People – State interventions tend to benefit the few at expense of the People

MORALITY, MARKETS & TRADE Markets  cooperative behavior if repeated trading occurs between ever-changing groups – More exchange  more honesty & more punctuality – Honesty: adverse results if break promises or cheat – Competitive markets promote human liberty, prosperity & virtues (e.g., integrity, punctuality & propriety) Continuous exchange in free market  future-oriented viewpoint  integrity & trust Economic consequences: ”Invisible Hand” & voluntary exchange  social harmony & spontaneous gains in social well-being without planning or regard to individuals’ goals Economic freedom is a precondition for political freedom

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