Free Trade Fact of the Day
Conn Carroll /
Last week eight leading economists, including five Nobel Laureates, met in Copenhagen to prioritize 30 different proposed solutions to ten of the world’s biggest problems, including man-made global warming. Supplying nutrients like vitamin A, Iron, and Zinc to 140 million children was chosen as the highest priority. Number two was widening free trade. Reason‘s Ronald Bailey explains:
Number 2 on the list of Copenhagen Consensus 2008 priorities is to widen free trade by means of the Doha Development Agenda. The benefits from trade are enormous. Success at Doha trade negotiations could boost global income by $3 trillion per year, of which $2.5 trillion would go to the developing countries. At the Copenhagen Consensus Center press conference, University of Chicago economist Nancy Stokey explained, “Trade reform is not just for the long run, it would make people in developing countries better off right now. There are large benefits in the short run and the long run benefits are enormous.”
Nobelist and University of California, Santa Barbara economist Finn Kydland noted that unless the economies of developing countries grow, they will still be mired in the same problems of poverty ten years from now as they are today. “By reducing trade barriers, income per capita will grow, enabling more people in developing countries to take care of some of these problems for themselves.”
And what about solving man-made global warming? Bailey again:
Nobelist and University of Maryland economist Thomas Schelling noted that part of the reason for the low ranking is that spending $75 billion on cutting greenhouses gases would achieve almost nothing. In fact, the climate change analysis presented to the panel found that spending $800 billion until 2100 would yield just $685 billion in climate change benefits.